The San-in Godo Bank,Ltd.
8381・Prime Market・Banks
Business
The San-in Godo Bank, Ltd., established in 1941, is the largest regional bank in the San'in region, operating a head office along with 119 branches and 37 sub-branches centered on Shimane and Tottori Prefectures. The Group consists of 17 consolidated subsidiaries, with the Banking business at its core, alongside Gogin Lease (Leasing Business), Gogin Credit (Credit Card Business), Gogin Capital (venture capital), Gogin Energy (electric power and consulting), and Gogin Regional Trading Company, Inc. (distribution of regional products), among others. Its business area extends beyond San'in into Sanyo, Kansai, and Tokyo, and as a "wide-area regional bank" it maintains a customer base spanning both corporate and individual clients. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
The primary revenue source is net interest income (Fund Income), including loan interest and interest/dividends on securities (consolidated Fund Income of ¥79,244 million for FY2026 (ending March 2026)), which accounts for the majority of total ordinary income of ¥167,078 million. In addition, fee income (Fees and Commissions of ¥19,249 million)—including fees related to assets under custody through the business alliance with Nomura Securities (N Alliance), solution fees from Corporate Consulting Services, and credit card-related fees—supplements revenue. Cross-selling through collaboration with group companies in the Leasing Business, Credit Card Business, and other areas also contributes to revenue diversification.
Company Strengths
The "Zen'in Consul" (all-staff consulting) system, built since 2015, has been rolled out across all areas—San'in, San'yo, Kansai, and Tokyo—increasing corporate loan balances in every area. Consolidated loan balances reached ¥5,464,901 million (up ¥365,413 million year on year) in FY2026 (ending March 2026), with corporate solution fees of ¥4.7 billion recorded. The customer base and specialized personnel built as the leading bank in the San'in region form a competitive advantage.
Through the business alliance with Nomura Securities (N Alliance) launched in September 2020, the company has implemented an "all-asset approach" and "balance sheet approach" that combine the strengths of banking and securities. Assets under custody reached the initial target of ¥800 billion in February 2024, two years ahead of the original plan, surpassed ¥1 trillion in November 2025, and expanded to ¥1,252.8 billion (up ¥182.5 billion year on year) at the end of FY2026 (ending March 2026).
The consolidated capital adequacy ratio (domestic standard) stood at a sound 11.85% (up 0.31 points year on year) at the end of FY2026 (ending March 2026). Profit attributable to owners of parent reached ¥22,698 million, marking a record high for the fifth consecutive fiscal year. The non-performing loan ratio remained at a manageable 1.49% (up 0.22 points year on year), while the coverage ratio for claims against bankrupt and reorganized debtors was maintained at 100%.
ENVALITH's Perspective
Performance Trend
Ordinary income increased 75.7% over five fiscal years, from ¥95,111 million in FY2022 (ended March 2022) to ¥167,078 million in FY2026 (ending March 2026), with the most recent period's growth rate accelerating to 23.4%. Profit attributable to owners of parent also expanded over the same period, from ¥14,485 million to ¥22,698 million. As an external factor, the Bank of Japan's rate-hike phase pushed up net interest income through rising yields on loans (domestic: 1.03%→1.29%) and rising yields on securities (1.12%→1.51%). On the other hand, funding costs surged by +¥22,629 million year on year, meaning interest margin management will be a key determinant of future earnings levels. Credit costs improved significantly by ¥5,957 million year on year, contributing to the expansion in profit. ROE (on an equity capital basis) improved to 7.16% (from 5.88% in the previous period).
Growth Strategy
Aiming for sustainable growth through three pillars: issue-solving consulting, wide-area expansion, and enhanced shareholder returns
Increased corporate and individual lending across all areas—San'in, Sanyo, Kansai, and Tokyo—achieving a non-consolidated average loan balance of ¥5,232.5 billion (up 6.7% year on year). The upward trend is expected to continue in FY2027 (ending March 2026), with expansion of interest income positioned as the main earnings driver.
Centered on the business alliance with Nomura Securities, achieved assets in custody of ¥1,252.8 billion (up ¥182.5 billion year on year). Corporate solution fees of ¥4.7 billion and assets-in-custody-related fees of ¥3.4 billion remain on an upward trend, though a decline in loan-related fees is an issue. The company will continue to expand non-interest income.
Sold low-yield government bonds and investment trusts, reducing the securities balance by ¥271.2 billion (non-consolidated). Utilized interest rate swaps for risk hedging to contain the deterioration of valuation losses on a hedge-combined basis. The company will continue to work on improving securities yields while keeping interest rate risk exposure in check.
Plans to increase the annual dividend for FY2027 (ending March 2027) to ¥68 per share (up ¥8 year on year), maintaining a dividend payout ratio of approximately 40%. In addition, decided to conduct share buybacks of up to ¥3.0 billion in total. The company will continue its flexible shareholder return policy, targeting a total payout ratio of around 40%.
Last updated: July 19, 2026