Bank of The Ryukyus, Limited
8399・Prime Market・Banks
Business
The Bank of the Ryukyus, established in 1948, is a core financial institution in Okinawa Prefecture, providing financial services to small and medium-sized enterprises and individuals in the prefecture through 75 branches (including 14 sub-branches), including its head office. The group comprises 6 consolidated subsidiaries (Ryukyu Lease, Ryugin DC, OCS, Ryugin Hosho, Ryucom, and Ryugin Research Institute), and is organized into 6 segments centered on the Banking Business, namely Leasing Business, Credit Card Business, Credit Guarantee Business, IT Business, and research. Its main customers are individuals within Okinawa Prefecture (housing loans and asset formation) and small and medium-sized corporations (business funds and capital investment), and its performance is closely linked to the growth of the Okinawan economy, which is concentrated in tourism, construction, and real estate industries. In April 2026, the new head office building had its grand opening, becoming a new hub for group collaboration.
Business Model
The core of earnings is net interest income (¥34,228 million), comprising loan interest income (average balance of ¥2,013,124 million, yield of 1.69%) and interest on securities (balance of ¥709,135 million). The Banking Business, which adds net fees and commissions (¥7,219 million) to this, accounts for the majority of overall profit. Each group company supplements non-interest income through leasing balances, card settlements, housing loan guarantees, and IT services, forming a structure that deepens the customer base through cross-selling within the group.
Company Strengths
Since its establishment in 1948, the company has operated as the sole regional bank group in Okinawa Prefecture, with a network of 75 branches (including 14 sub-branches). With a loan balance of ¥2,079,733 million and deposit balance of ¥2,901,888 million, its customer base—deeply penetrated into key industries in the prefecture, centered on the real estate industry (29.36% of composition) and individual housing loans (¥604,251 million)—represents a unique asset that competitors would find difficult to replicate in a short period.
Centered on the Banking Business (ordinary income of ¥55,345 million), five segments—Leasing Business (¥18,532 million), Credit Card Business (¥3,096 million), Credit Guarantee Business (¥470 million), and IT Business (¥3,035 million)—complement one another. Cross-selling within the group and the joint operation of foreign exchange back-office functions with The Okinawa Kaiho Bank, Ltd. create synergies that would be difficult for a standalone bank to achieve.
The company has been selected as an "A List" company, the highest global rating, in the CDP climate change survey, and is also included as a constituent of the "FTSE Blossom Japan Sector Relative Index," which is adopted by GPIF. Having moved forward its target date for achieving carbon neutrality from FY2050 to FY2027, the company's ESG disclosure and performance—outstanding among regional banks—have earned high regard from institutional investors.
ENVALITH's Perspective
Performance Trend
Revenue grew for five consecutive fiscal periods, from ¥57,011 million in FY2022 to ¥80,322 million in FY2026, with the most recent period's growth rate accelerating to approximately 16% year on year. Net income had stagnated in the ¥5,600–5,800 million range in FY2024 and FY2025, but surged to ¥9,084 million in FY2026, a substantial increase of approximately 58% year on year. As an external factor, the Bank of Japan's interest rate hike phase contributed to expanded net interest income through higher loan yields. Proceeds from redemption of securities also increased from ¥92,101 million in the previous period to ¥158,921 million, and the improvement in investment income further supported the profit expansion. Cash flow from investing activities was ¥(29,330) million (revised), reflecting continued investment centered on securities purchases.
Growth Strategy
Under "Empower 2025," the Group aims to achieve net income of ¥9.0 billion in FY2027 through strengthening deposits and loans, ESG initiatives, group collaboration, and human capital investment.
The Group aims to expand net interest income by leveraging the effect of the short-term prime rate hike to raise loan yields, and through the continued growth in outstanding balances of personal housing loans and corporate loans (including out-of-prefecture syndicated loans). This is already reflected in the substantial profit increase for FY2026 (ending March 2026).
The Group is promoting diversification of non-interest income through expanding the number of Ryugin Visa Debit Card and merchant contracts, rolling out cashless transit payment services for public transportation, and accelerating expansion outside the prefecture through a comprehensive merchant agreement with The Saga Bank.
Against a backdrop of strong sales of investment trusts and yen-denominated insurance, the Group continues to increase its assets under custody balance. It is also strengthening cross-selling through collaboration with group companies (leasing, card, guarantee, and IT) to build up fee income on a stable basis.
The Group is promoting a group-wide system overhaul, including the introduction of the new sales support system CAFU. The increase in tangible and intangible fixed assets remained at a high level of ¥10,784 million (restated, FY2026 (ending March 2026)), reflecting continued investment aimed at strengthening the future earnings base.
The establishment of a new administrative consulting unit within Ryugin Research Institute has created new revenue opportunities in the PPP/PFI field. The Group aims to enhance long-term corporate value through addressing climate change and contributing to the sustainable development of the regional economy.
Last updated: July 19, 2026