The Kiyo Bank, Ltd.
8370・Prime Market・Banks
Banking Business
The sole reporting segment of the Kiyo Bank Group, providing region-focused comprehensive financial services
| Period | Current | Previous | Change |
|---|---|---|---|
| Banking Business Segment Ordinary Revenue (External Customers) | ¥101,979 million | Not disclosed (prior-year consolidated ordinary revenue: ¥98,720 million) | ↑ |
| Banking Business Segment Profit | ¥30,651 million | ¥20,897 million (prior fiscal year) | ↑ |
| Banking Business Segment Assets | ¥6,111,515 million | ¥5,918,819 million (prior fiscal year) | ↑ |
| Loan Balance (Non-consolidated, Fiscal Year-End) | ¥4,371,001 million | ¥4,169,064 million | ↑ |
| Consolidated Capital Adequacy Ratio (Domestic Standard) | 12.26% | 12.05% | ↑ |
| Consolidated Ordinary Profit | ¥32,369 million | ¥23,308 million | ↑ |
| Profit Attributable to Owners of Parent (Consolidated) | ¥21,819 million | ¥17,618 million | ↑ |
| ROE (Consolidated, Based on Profit Attributable to Owners of Parent) | 9.0% | 7.5% | ↑ |
| Customer Service Business Profit (Non-consolidated) | ¥22,899 million | ¥16,933 million | ↑ |
| Loan Yield (Non-consolidated, Total) | 1.30% | 1.05% | ↑ |
| Deposit-Loan Interest Rate Spread (Non-consolidated, Total) | 1.10% | 0.99% | ↑ |
| Non-performing Loan Ratio (Financial Reconstruction Act Basis, Non-consolidated) | 1.34% | 1.44% | ↓ |
| Total Credit Costs (Non-consolidated) | ¥2,382 million | ¥(186) million (net reversal in prior fiscal year) | ↑ |
Business Details
Comprised of Kiyo Bank, Ltd. and 8 consolidated subsidiaries, this regional banking business centers on deposit-taking, lending, and foreign exchange operations. Operating primarily in Wakayama Prefecture and Osaka Prefecture, it provides business financing for small and medium-sized enterprises and financial services for individuals. As the sole reporting segment forming the basis for group-wide resource allocation and performance evaluation, it achieved record-high profit in FY2026 (ending March 2026), driven by increases in interest income on loans and fee and commission income.
Recent Overview
In FY2026 (ending March 2026), interest income on loans and fee income drove record-high profit on both a non-consolidated and consolidated basis
Interest income on loans (non-consolidated) increased substantially to ¥55,288 million (up ¥12,561 million year on year), exceeding the increase in interest expense on deposits (¥10,249 million, up ¥7,388 million year on year) and thereby expanding net fund income. Customer service business profit (non-consolidated) reached a record ¥22,899 million. Meanwhile, following the decision on the basic plan for a new head office building in September 2025, the Bank recorded extraordinary losses (consolidated) of ¥2,427 million, including a provision for losses on head office rebuilding of ¥1,576 million. The Bank achieved the key KPIs of its 7th Medium-Term Management Plan (ROE of 9.0%, net income of ¥21.8 billion, and customer service business profit of ¥22.8 billion) one year ahead of the final-year targets. A three-for-one stock split is planned to take effect in October 2026.
Key Products
Growth Drivers
- Continued increase in fund income driven by rising loan yields (1.30%, up 0.25 percentage points year on year) amid Bank of Japan rate hikes and an expanding loan balance (non-consolidated: ¥4,371,001 million)
- Active expansion of lending to small and medium-sized enterprises (non-consolidated SME loans: ¥3,318,562 million, up ¥165,409 million from the prior fiscal year-end, accounting for 75.9% of total loans)
- Record customer service business profit driven by an expanding deposit-loan interest rate spread (1.10%, up 0.11 percentage points year on year) and steady growth in fee and commission income
- Strengthened fee income base through growth in assets under custody (¥559,614 million, up ¥63,553 million from the prior fiscal year-end)
- Expected further increase in interest income on loans toward FY2027 (ending March 2027) driven by loan balance growth and rising yields (consolidated ordinary profit forecast: ¥36,600 million, up 13.1% year on year)
- Enhanced valuation in capital markets through improved stock liquidity and an expanded investor base following the stock split (1 share to 3 shares, effective October 2026)
Risks
- Risk of accelerating funding cost increases (interest expense on deposits) amid further Bank of Japan rate hikes (non-consolidated interest expense on deposits surged to ¥10,249 million, up ¥7,388 million year on year)
- Valuation loss risk in the securities portfolio (non-consolidated valuation gains/losses on other securities of ¥(41,381) million, including ¥(49,709) million on bonds, widening due to rising domestic interest rates)
- Risk of rising credit costs (consolidated total credit costs of ¥2,938 million, deteriorating from a net reversal in the prior fiscal year) and trends in disclosed claims under the Financial Reconstruction Act (non-consolidated non-performing loan balance: ¥59,453 million)
- Future capital expenditure burden and related one-time costs associated with the construction of the new head office building (a provision for losses on head office rebuilding of ¥1,227 million has already been recorded, with potential for additional costs)
- Medium- to long-term risk of a shrinking business base due to population decline and regional economic contraction in the Bank's main operating areas (Wakayama and Osaka Prefectures)
- Risk of divergence from earnings forecasts due to interest rate scenario fluctuations, as the FY2027 (ending March 2027) earnings forecast assumes a flat policy interest rate of 0.75%
Last updated: June 22, 2026