The Miyazaki Bank,Ltd.
8393・Prime Market・Banks
Banking
The core segment of the Miyazaki Bank Group, handling deposits and loans, fee business, and securities investment.
| Period | Current | Previous | Change |
|---|---|---|---|
| Banking segment ordinary income (external customers) | ¥84,527 million | ¥74,264 million | ↑ |
| Banking segment profit (ordinary income basis) | ¥19,216 million | ¥13,400 million | ↑ |
| Banking segment assets | ¥4,066,857 million | ¥4,062,624 million | ↑ |
| Interest income on fund management (Banking) | ¥62,909 million | ¥54,485 million | ↑ |
| Interest on loans (non-consolidated) | ¥35,903 million | ¥30,422 million | ↑ |
| Interest and dividends on securities (non-consolidated) | ¥22,381 million | ¥20,674 million | ↑ |
| Ending balance of loans (non-consolidated) | ¥2,473,309 million | ¥2,396,587 million | ↑ |
| Depreciation (Banking) | ¥2,510 million | ¥2,593 million | ↓ |
| Core net business profit (non-consolidated) | ¥22,957 million | ¥18,099 million | ↑ |
| Non-consolidated capital adequacy ratio (domestic standard) | 9.74% | 9.63% | ↑ |
Business Details
At Miyazaki Bank's head office and 96 domestic branches (including 25 sub-branches), the segment conducts deposit business, lending business, domestic exchange business, foreign exchange business, and other ancillary business. It consolidates the Bank and two consolidated subsidiaries whose main business is trust operations. Through lending to individuals, corporations and public entities, Assets in Custody Sales (investment trusts, insurance, public bonds), and foreign-currency-denominated securities investment, it serves the financial intermediation function for the regional economy centered on Miyazaki Prefecture. It is the core segment, accounting for approximately 94% of the Group's ordinary income.
Recent Overview
Rising interest rates and growth in loan balances drove Banking segment profit to a record high, up 43.4% year on year.
In FY2026 (ending March 2026), Banking segment ordinary income was ¥84,527 million (up ¥10,263 million year on year), and segment profit was ¥19,216 million (up ¥5,816 million year on year). Against the backdrop of the Bank of Japan's policy rate hike (to 0.75% in December), interest income on loans increased by ¥5,481 million, mainly due to increases of ¥2,918 million in interest on loans to individuals and ¥2,301 million in loans to corporations. Gains on sales of equities, etc. also increased substantially to ¥4,553 million (up ¥2,889 million year on year). On the other hand, interest on deposits increased by ¥4,081 million, and funding costs also expanded. The balance of non-performing loans (disclosed claims under the Financial Reconstruction Act) was ¥33,925 million (up ¥2,433 million from the end of the prior fiscal year), and the non-performing loan ratio was 1.34% (up 0.06 percentage points).
Key Products
Growth Drivers
- Improvement in loan interest yield against the backdrop of the Bank of Japan's policy rate hikes (to 0.75% in December 2025) (loan interest yield of 1.48%, up 0.18 percentage points year on year)
- Continued growth in outstanding loan balances to individuals and corporations (non-consolidated ending loan balance up ¥76,722 million year on year, average balance up ¥77,289 million year on year)
- Expansion of housing loan balances (ending balance of ¥957,448 million, up ¥61,874 million year on year) and increased origination fee income (up ¥450 million year on year)
- Increase in interest and dividends on securities driven by expansion of foreign-currency-denominated securities investment (government bond interest up ¥540 million, foreign securities interest up ¥790 million)
- Substantial increase in gains on sales of equities, etc. (¥5,876 million, up ¥2,908 million year on year), boosting earnings
- Increase in fee and commission income accompanying expansion of assets in custody balance (total of ¥403,557 million, up ¥58,549 million year on year)
- Strengthening of non-face-to-face channels through the Miyagin App (over approximately 270,000 registered users, monthly active user rate of 80% or higher)
- Deepening of corporate transactions and fee income capture through Business Succession & M&A Support (over 1,000 cumulative completed deals)
Risks
- Increase in funding costs amid rising interest rates (interest on deposits of ¥5,916 million, up ¥4,081 million year on year; interest on sold securities under repurchase agreements of ¥5,433 million; interest paid on bond lending transactions of ¥8,067 million)
- Increase in the balance of non-performing loans (disclosed claims under the Financial Reconstruction Act of ¥33,925 million, up ¥2,433 million from the end of the prior fiscal year; non-performing loan ratio of 1.34%)
- Risk of deterioration in bond-related gains/losses (non-consolidated bond-related losses of ¥6,141 million; losses on sales of government bonds and other bonds of ¥6,530 million)
- Risk of valuation losses on the securities portfolio (valuation losses on other securities, after considering deferred hedges, of ¥46,596 million, of which bonds accounted for ¥56,332 million)
- Long-term decline in loan demand due to population decline and shrinking of the regional economy (corporate production activity within Miyazaki Prefecture is weakening)
- Adverse effects on the prefectural economy from geopolitical risks such as U.S. tariff policy and from persistently high domestic prices and labor shortages
- Risk of rising credit costs due to increased repayment burden on floating-rate housing loan borrowers, etc. amid rising interest rates
- Valuation losses on derivative transactions such as currency swaps (currency swap fair value of negative ¥2,889 million; forward foreign exchange contracts of negative ¥142 million)
Last updated: June 22, 2026