The Miyazaki Bank,Ltd.
8393・Prime Market・Banks
Business
The Bank of Miyazaki, Ltd. was established in 1932 and will mark its 100th anniversary in 2032. The bank operates a head office and 70 branches in Miyazaki Prefecture, primarily engaged in Banking, centered on deposit, lending, exchange, and foreign exchange operations, forming a comprehensive financial group together with six consolidated subsidiaries: Miyagin Lease (Comprehensive Leasing Service), Miyagin Hosho (Housing Loan Credit Guarantee Business), Miyagin Card (Credit Card Business), and Miyagin Venture Capital (investment and management consulting), among others. Its main customers are individuals, small and medium-sized enterprises, and local governments within Miyazaki Prefecture, and it serves as a core regional financial institution with loans outstanding of ¥2,467,269 million and deposits outstanding of ¥3,214,842 million.
Business Model
The bank deploys deposits raised from regional customers (¥3,214,842 million) into loans (¥2,467,269 million) and securities (¥765,176 million), generating net interest income (¥43,088 million) as its primary revenue source. In addition, it diversifies revenue through fee income from Assets in Custody Sales such as investment trusts and insurance (¥403,557 million), consulting fees from Business Succession & M&A Support (over 1,000 cumulative deals concluded), and earnings from non-face-to-face channels leveraging the Miyagin App (registered users exceeding approximately 270,000).
Company Strengths
Under the previous Medium-Term Management Plan "First Call Bank" (April 2023 to March 2026), the company achieved all four target indicators: ordinary profit of ¥19.0 billion (target: ¥14.0 billion or more), ROE of 6.92% (target: 5.0% or more), OHR of 51.77% (target: below 60.0%), and capital adequacy ratio of 9.74% (target: 8.00% or more). This track record demonstrates the company's reliable execution capability in implementing its plans.
The housing loan balance reached ¥957,448 million (up ¥61,874 million year on year), and personal loans and other lending reached ¥1,023,989 million (up ¥69,579 million year on year), continuing their expansion. The credit guarantee function through collaboration with Miyagin Hosho, along with the non-face-to-face application channel utilizing the Miyagin App (monthly active user ratio of 80% or more), supports the personal lending business foundation.
The cumulative number of concluded deals in Business Succession & M&A Support has exceeded 1,000 (with cumulative consultation cases reaching approximately 4,400 as of the end of March 2026), functioning both to deepen corporate client relationships and to generate fee income. The group-wide solution provision system, including collaboration with Miyagin Venture Capital, serves as a differentiating factor from competing banks.
ENVALITH's Perspective
Performance Trend
Ordinary income was ¥90,159 million (up 12.4% year on year), ordinary profit was ¥19,831 million (up 42.1%), and profit attributable to owners of parent was ¥14,094 million (up 44.0%), with all three metrics reaching record highs. As an external factor, against the backdrop of the Bank of Japan's policy rate hikes, interest on loans expanded to ¥35,868 million (up ¥5,469 million year on year) and interest and dividends on securities expanded to ¥22,377 million (up ¥1,707 million). In addition, an increase in gains on sales of stocks and other securities (Other ordinary income up ¥2,804 million year on year) also contributed. Comprehensive income expanded significantly to ¥36,037 million from ¥2,715 million in the previous period, and improvement in net unrealized gains on available-for-sale securities (up ¥17,894 million year on year) pushed net assets up to ¥222,335 million. Return on equity improved to 6.8% (from 5.1% in the previous period). Revenue and profit growth are also forecast for FY2027 (ending March 2027), with the revenue growth trend expected to continue for a fifth consecutive period.
Growth Strategy
Under the "First Call Bank" strategy, the bank pursues sustainable growth by integrating real and digital channels and addressing regional challenges
Expand lending to individuals, corporations, and public entities across all fronts, and maximize the benefit from improved loan yields (1.48%, up 0.18 points year on year) amid rising policy interest rates. Ordinary income of ¥95,400 million is forecast for FY2027 (ending March 2027), premised on continued growth in loans.
Total assets in custody, comprising investment trusts (¥125,775 million), public bonds and other bonds (¥40,176 million), and insurance (¥237,605 million), reached ¥403,557 million, an increase of ¥58,549 million year on year. The bank will continue to diversify non-interest income by leveraging digital channels, including the addition of a Sumitomo Mitsui Card application function to the Miyagin App.
The bank has promoted the internal introduction of a generative AI chat system (May 2025), the use of generative AI in preparing loan approval documents, and the expansion of Miyagin App functions (over approximately 270,000 registered users). It has achieved an OHR of 51.77% (against a target of below 60%) and aims to further improve profitability through additional efficiency gains.
The bank continues to strengthen its Business Succession & M&A Support, which had a cumulative track record of approximately 4,400 consultations and over 1,000 completed deals as of the end of March 2026. It aims to generate fee income and deepen corporate relationships while contributing to the maintenance of regional employment and supply chains.
The annual dividend for FY2026 (ending March 2026) is ¥200 (¥40 on a post-stock-split basis), with a dividend payout ratio of 23.9%. For FY2027 (ending March 2027), an annual dividend of ¥56 (post-stock-split basis) is planned, a 40% increase year on year. The bank aims to achieve a dividend payout ratio of approximately 40% by the final year of the medium-term management plan (FY2028), and also plans to introduce a shareholder benefit program from FY2027.
Last updated: July 19, 2026