Bank of The Ryukyus, Limited
8399・Prime Market・Banks
Banking Business
The core segment of the Ryugin Bank Group. Deposit and loan operations and securities investment through 75 branches across Okinawa Prefecture form the pillar of earnings.
| Period | Current | Previous | Change |
|---|---|---|---|
| Ordinary income from external customers (Banking Business segment) | ¥44,054 million | Not disclosed | — |
| Segment profit (ordinary income basis) | ¥6,965 million | Not disclosed | — |
| Loans outstanding (non-consolidated) | ¥2,083,174 million (end of December 2025) | ¥2,001,975 million (end of March 2025) | ↑ |
| Deposits outstanding (non-consolidated, including negotiable certificates of deposit) | ¥2,910,807 million (end of December 2025) | Not disclosed | — |
| Consolidated capital adequacy ratio | 10.14% (end of December 2025) | Not disclosed | — |
| Increase in tangible and intangible fixed assets (Banking Business segment) | ¥9,392 million (after correction) | ¥7,223 million (before correction) | ↑ |
Business Details
The Banking Business segment, operated by Ryukyu Bank itself, conducts deposits, loans, domestic and foreign exchange, and securities investment operations through 75 branches (including 14 sub-branches), including the head office. It focuses primarily on providing funds to small and medium-sized enterprises and individuals within Okinawa Prefecture, functioning as the core financial institution in the region. The Treasury and Securities division also handles trading securities, over-the-counter sales of investment trusts, and securities investment (government bonds, municipal bonds, corporate bonds, equities, etc.). Ordinary income from external customers for the fiscal year under review was ¥44,054 million, accounting for approximately 63.7% of the group total (¥69,193 million).
Recent Overview
A correction to the FY2026 (ending March 2026) earnings report revised upward the increase in fixed assets in the Banking Business segment.
Due to a corrective disclosure dated June 17, 2026, the increase in tangible and intangible fixed assets for the Banking Business in the segment information for the fiscal year under review (April 1, 2025 to March 31, 2026) was corrected from ¥7,223 million to ¥9,392 million (an increase of ¥2,169 million). At the same time, expenditures for acquisition of tangible fixed assets (from ¥9,172 million to ¥7,206 million) and proceeds from sales (from ¥2,333 million to ¥367 million) on the consolidated statement of cash flows were also corrected, but there was no change to total cash flow from investing activities (¥29,330 million outflow) or the balance of cash and cash equivalents at fiscal year-end (¥160,634 million). There was no impact on profit and loss figures.
Key Products
Growth Drivers
- Expansion of the deposit-loan spread due to rising loan yields (effect of the short-term prime rate hike)
- Continued growth in housing loan balances for individuals and loan balances for corporations (including syndicated loans outside the prefecture)
- Increase in interest and dividend income on securities (due to an increase in the yen-denominated bond balance and resolution of the negative spread on US Treasury bonds)
- Expansion of the cashless business (increase in the number of merchant contracts and increase in transaction volume)
- Increase in assets under custody balance (due to strong sales of investment trusts and yen-denominated insurance)
Risks
- Increase in funding costs due to rising deposit interest rates (increase in time deposit interest rates)
- Risk of expanding valuation losses on yen-denominated bonds (government bonds, etc.) accompanying rising interest rates (unrealized valuation loss on yen-denominated bonds of ¥14,144 million)
- Downward pressure on profit due to one-time expenses recorded in connection with the completion of the new head office building
- Impact on Okinawa Prefecture's tourism industry and regional economy from a global economic slowdown due to US tariff policy and other factors
- Trends in the non-performing loan ratio (non-consolidated disclosed claims ratio of 2.54%, an improvement of 0.35 points from the previous fiscal year-end, but requiring continued monitoring)
Last updated: July 17, 2026