The Hyakujushi Bank, Ltd.
8386・Prime Market・Banks
Banking Business
The core segment of the Hyakujushi Group, accounting for approximately 91% of consolidated ordinary income, is the mainstay business.
| Period | Current | Previous | Change |
|---|---|---|---|
| Banking Business segment ordinary income (external customers) | ¥99,000 million | ¥80,853 million | ↑ |
| Banking Business segment profit (ordinary income basis) | ¥27,687 million | ¥18,517 million | ↑ |
| Banking Business segment assets | ¥5,822,240 million | ¥5,731,563 million | ↑ |
| Depreciation (Banking Business) | ¥2,685 million | ¥2,416 million | ↑ |
| Increase in tangible and intangible fixed assets (Banking Business) | ¥4,449 million | ¥3,756 million | ↑ |
| Loans outstanding at period-end (non-consolidated) | ¥3,697,736 million | ¥3,512,819 million | ↑ |
| Loan yield (non-consolidated, all branches) | 1.28% | 1.18% | ↑ |
| Total interest margin (non-consolidated, all branches) | 0.27% | 0.14% | ↑ |
| Core net business profit (excluding gains/losses on cancellation of investment trusts) (non-consolidated) | ¥25,279 million | ¥19,467 million | ↑ |
| Non-performing loan balance (non-consolidated) | ¥50,063 million | ¥46,941 million | ↑ |
| Non-performing loan ratio (non-consolidated) | 1.34% | 1.32% | ↑ |
Business Details
Operating mainly in Kagawa Prefecture, with the broader Setouchi region and major metropolitan areas as key business bases, the segment conducts Deposit Business, Lending Business, Securities Investment Business, foreign exchange business, and more. It provides a wide range of financial services to corporate, individual, and public sector clients, and has strengths in international business and ship-related financing. For FY2026 (ending March 2026), ordinary income from external customers was ¥99,000 million, and segment profit was ¥27,687 million. This is the most important segment, accounting for approximately 88% of total group ordinary income (before elimination of inter-segment ordinary income).
Recent Overview
Interest income increased significantly due to rising interest rates and expanding loan balances, resulting in record-high profit.
Banking Business segment profit for FY2026 (ending March 2026) was ¥27,687 million (up ¥9,170 million, +49.5% year-on-year). Interest on loans was ¥46,061 million (+¥5,090 million), and interest and dividends on securities was ¥16,181 million (+¥3,781 million), expanding net interest income to ¥51.2 billion (+¥9.3 billion). Gains on sales of equities of ¥11,635 million (+¥4,230 million) also contributed. On the other hand, credit-related expenses increased to ¥6,777 million (+¥2,945 million). In March 2026, the method for calculating credit risk assets was changed from the standardized approach to the foundational internal ratings-based approach, and the consolidated capital adequacy ratio rose to 10.41% (up 1.08pt from the previous fiscal year-end).
Key Products
Growth Drivers
- Increase in interest on loans: Yen-denominated loan yield rose from 0.94% to 1.15% amid the Bank of Japan's continued policy rate hikes, and average loan balance also expanded to ¥3,592,158 million (+¥130,615 million)
- Increase in interest and dividends on securities: recorded ¥16,181 million (up ¥3,781 million, +30.5% year-on-year), due to increased equity dividends and other factors
- Expansion of gains on sales of equities: gains/losses related to equities increased significantly to ¥11,634 million (up ¥4,270 million year-on-year)
- Increase in corporate loans: corporate loans expanded to ¥2,844.4 billion, up ¥164.4 billion from the previous fiscal year-end, aided by the business base in the broader Setouchi region and major metropolitan areas
- Expansion of fee-based services profit: corporate consulting (business succession/M&A, finance areas) and individual consulting (housing loans, investment trusts) performed solidly, up ¥1,051 million year-on-year
- Expansion of assets in custody balance: investment trusts, single-premium insurance, and financial instruments intermediary all increased, reaching ¥435.8 billion, up ¥58.8 billion from the previous fiscal year-end
- Improvement in OHR: non-consolidated OHR (on a gross business profit basis) improved significantly from 71.6% to 62.9%, improving revenue efficiency
Risks
- Interest rate risk: increased funding costs amid rising interest rates (interest on deposits increased significantly from ¥6,558 million to ¥11,952 million) and rising funding costs due to depositors shifting to time deposits
- Credit risk: credit-related expenses increased to ¥6,777 million (up ¥2,945 million year-on-year), and net provision to individual allowance for loan losses expanded to ¥4,822 million (up ¥2,830 million year-on-year)
- Securities risk: continuation of losses related to bonds of -¥9,237 million (worsening by ¥1,190 million year-on-year) due to the reduction of low-yield yen bonds for portfolio improvement
- Regional economic risk: concerns over shrinking loan demand and deposit base within Kagawa Prefecture due to population decline and progressing super-aging society, and the impact of U.S. tariff policy on local manufacturers such as transport machinery
- Fixed asset impairment risk: continued recording of impairment losses in the Banking Business segment (¥286 million in FY2026 (ending March 2026))
- Market risk: foreign currency loan yield declined from 3.98% to 2.62% (-1.36pt), worsening the profitability of foreign currency-denominated assets
Last updated: June 15, 2026