THE TOTTORI BANK, LTD.
8383・Standard Market・Banks
Business
The Tottori Bank, Ltd. was founded in 1921 and operates as a regional bank with its primary business base in Tottori Prefecture. Through 53 branches and sub-branches and 12 offices, the bank conducts banking operations including deposits, lending, exchange, securities investment, and foreign exchange, while also offering peripheral financial services such as credit cards (Torigin Card Service), leasing (Torigin Lease), venture capital (Tottori Capital), fund management (Torigin Future Co-Creation Capital), and consulting (Torigin Regional Design Partners). Its main customers are individuals, small and medium-sized enterprises, and local public bodies within Tottori Prefecture. Under its purpose of "creating, protecting, and supporting the future of the local community," the bank works to enhance regional value beyond the scope of finance.
Business Model
The main revenue sources consist of two pillars: fund management income, comprising interest on loans (¥11,376 million in FY2026 (ending March 2026)) and interest and dividends on securities (¥1,814 million for the same period), and fee business income (¥3,784 million for the same period) from investment trusts, insurance sales, foreign exchange, and other services. The company secures a margin by procuring deposits (¥1,045,509 million) at low cost and deploying them into loans (¥916,754 million) and securities (¥128,665 million). It also seeks to diversify fee income through cross-selling in cooperation with subsidiaries and affiliated companies.
Company Strengths
As of the end of FY2026 (ending March 2026), the loan balance stood at ¥916,754 million (up ¥35,116 million year on year), and the deposit balance stood at ¥1,045,509 million (up ¥25,590 million year on year), maintaining an upward trend across individual, corporate, and public-sector customers. Total assets in custody reached ¥1,348,317 million, reflecting a broad customer base as a regional financial institution within Tottori Prefecture.
The loan yield improved to 1.28% (up 0.17 percentage points year on year), and interest on loans increased substantially to ¥11,376 million (up ¥1,722 million year on year). Fee Business income also expanded to ¥3,784 million (up ¥412 million year on year), with securities-related, agency, and foreign exchange businesses contributing evenly. Revenue diversification is progressing.
The consolidated capital adequacy ratio stood at 8.95% (significantly exceeding the domestic standard of 4%), achieving the medium-term management plan target of "approximately 8%." The ratio of disclosed claims under the Financial Reconstruction Act to total credit remained at a low 1.13%, with a coverage ratio of 78.02% (including collateral and guarantees) secured. The core OHR reached 77.4%, achieving the target of "low-to-mid 80% range" ahead of schedule.
ENVALITH's Perspective
Performance Trend
Consolidated ordinary income rose for five consecutive periods: ¥13,301 million (FY2022) → ¥13,912 million (FY2023) → ¥14,646 million (FY2024) → ¥16,324 million (FY2025) → ¥18,991 million (FY2026). Profit attributable to owners of parent also continued to expand: ¥891 million → ¥1,044 million → ¥1,056 million → ¥1,313 million → ¥1,583 million. In FY2026 (ending March 2026), as an external factor, interest on loans and interest and dividends on securities increased significantly against the backdrop of the Bank of Japan's interest rate hike policy, with interest income surging to ¥13,641 million (up 23.2% year on year). Fee and commission income also expanded, with fee business revenue reaching ¥3,784 million (up 12.2% year on year). On the other hand, funding costs increased sharply to ¥2,384 million (3.1 times the previous period), and the provision for allowance for doubtful accounts also increased to ¥1,250 million (up 51.1% year on year), reflecting higher credit costs. Comprehensive income improved substantially to ¥3,302 million (from ¥-1,422 million in the previous period), aided by an improvement in net unrealized gains (losses) on other securities (from ¥-1,450 million to ¥-702 million).
Growth Strategy
Evolving into a consulting bank under the medium-term management plan "for the FUTURE," accelerating regional value creation through new subsidiaries
Achieved a non-consolidated loan balance of ¥917,291 million (up ¥35,039 million from the end of the previous fiscal year) through accumulation of corporate and individual loans. Total assets in custody reached ¥1,348,317 million (up ¥54,382 million), capturing asset management needs and stabilizing fee income.
Maintained a domestic standard capital adequacy ratio (non-consolidated) of 8.89%, exceeding the medium-term plan target of "approximately 8%." Strengthened the financial base through accumulation of retained earnings and sound asset management. Continued credit management while maintaining a low non-performing loan ratio of 1.13%.
Achieved a core OHR (non-consolidated) of 77.4%, surpassing the medium-term plan target of "low 80% range." Operating expenses were kept to a slight increase of ¥10,384 million (up ¥206 million from the previous fiscal year), while OHR improved through expansion of core gross business profit. Continued optimization of cost structure through digitalization.
FY2025 actual result of 125 people against the final year target of 150 people. Continued development of specialized talent aimed at deepening consulting functions. Promoting support for qualification acquisition and training system development under the priority theme of "practicing human capital management."
Established "Torigin Future Co-Creation Capital" (Investment Specialty Subsidiary) in December 2025 and "Torigin Regional Design Partners" (regional revitalization business company) in January 2026. Building new revenue sources complementing the Banking Business through fund formation, business succession support, regional design, and consulting operations.
Last updated: July 19, 2026