North Pacific Bank, Ltd.
8524・Prime Market・Banks
Banking
The core segment of the Hokuyo Bank Group, comprising comprehensive banking operations with Hokkaido as its operating base.
| Period | Current | Previous | Change |
|---|---|---|---|
| Banking segment ordinary income (FY2026 ending March 2026) | ¥204,906 million | ¥121,122 million | ↑ |
| Banking segment profit (FY2026 ending March 2026) | ¥35,940 million | ¥26,627 million | ↑ |
| Banking segment assets (as of March 2026 period-end) | ¥13,225,162 million | ¥13,398,327 million | ↓ |
| Loans outstanding at period-end (non-consolidated, as of March 2026 period-end) | ¥8,112,374 million | ¥7,919,241 million | ↑ |
| Core net business profit (non-consolidated, FY2026 ending March 2026) | ¥40,809 million | ¥29,039 million | ↑ |
| Core OHR (non-consolidated, FY2026 ending March 2026) | 62.41% | 68.91% | ↓ |
| Overall interest margin (non-consolidated, FY2026 ending March 2026) | 0.21% | 0.11% | ↑ |
| Disclosed claims ratio, after partial direct write-off (non-consolidated, as of March 2026 period-end) | 0.92% | 0.89% | ↑ |
| Capital adequacy ratio, domestic standard (non-consolidated, as of March 2026 period-end) | 12.80% | 12.66% | ↑ |
| ROE, based on net income (non-consolidated, FY2026 ending March 2026) | 6.78% | 5.04% | ↑ |
Business Details
Hokuyo Bank (non-consolidated) provides a diverse range of financial services—including deposits, lending, domestic and foreign exchange, securities, and credit cards—through its head office and branch network. Hokkaido is its sole operating base, with individuals, corporations, and local governments as its primary customers. In FY2026 (ending March 2026), the Banking segment recorded ordinary income of ¥204,906 million and segment profit of ¥35,940 million. As the core business accounting for approximately 87% of the Group's total ordinary income, interest income on fund investment operations, primarily interest on loans, forms the foundation of earnings.
Recent Overview
Core net business profit improved significantly, rising ¥11.7 billion year on year to ¥40.8 billion, driven by higher interest rates and increased lending.
In the Banking segment for FY2026 (ending March 2026), against the backdrop of policy rate hikes, interest on loans rose to ¥89,243 million (up ¥22,048 million year on year) and interest on deposits with banks rose to ¥9,647 million (up ¥4,562 million year on year), leading to a substantial increase in fund investment income. On the other hand, interest on deposits also rose, reaching ¥19,079 million (up ¥12,569 million year on year), pushing up funding costs. The Bank actively promoted the replacement of low-yield bonds by utilizing ¥53,567 million in gains on sale of equities, recording a loss of ¥58,137 million on sales of government bonds and other bonds. Credit costs increased to ¥4,087 million (up ¥1,077 million year on year) due to company-specific factors, among others. The disclosed claims ratio rose slightly year on year to 1.11% (0.92% after partial direct write-off). As a subsequent event, Career Bank Co., Ltd. (recruitment and staffing) became a consolidated subsidiary effective April 28, 2026 (acquisition cost of ¥1,537 million, voting rights ratio of 88.26%).
Key Products
Growth Drivers
- Increase in interest income on loans and deposits with banks due to policy rate hikes (non-consolidated fund investment income of ¥120,009 million, up ¥31,870 million year on year)
- Expansion of loans outstanding (non-consolidated period-end balance of ¥8,112,374 million, up ¥193,133 million year on year), driven by loans to large and mid-sized enterprises, with average balance up ¥54.15 billion year on year
- Improvement in overall interest margin (0.21%, up 0.10 percentage points year on year) and rising loan yield (1.08%, up 0.21 percentage points year on year)
- Expansion of assets under custody balance (non-consolidated period-end balance of ¥394,940 million, up ¥88,783 million year on year), supported by increased sales of NISA products, investment trusts, and public bonds
- Improved profitability of the securities portfolio through replacement of low-yield bonds using gains on sale of equities (securities yield of 0.76%, up 0.17 percentage points year on year)
- Expansion of deposit and loan market share and capture of growth in the Hokkaido region under the medium-term management plan "Make the HOKKAIDO Way 1st stage"
- Expansion into human resources-related business and broadening of the customer base through the consolidation of Career Bank Co., Ltd. as a subsidiary
Risks
- Rising funding costs amid rising interest rates (non-consolidated interest on deposits of ¥19,079 million, up ¥12,569 million year on year)
- Expansion of unrealized losses on held bonds due to rising long-term interest rates (non-consolidated unrealized bond losses of ¥91,054 million, an improvement of ¥15,836 million year on year but still substantial)
- Risk of increased credit costs (non-consolidated total disclosed claims of ¥92,503 million, up ¥1,346 million year on year; claims with collection risk increased ¥3,734 million year on year to ¥49,067 million)
- Risk of regional economic contraction in Hokkaido due to population decline and aging, and compression of loans to local governments (period-end balance down ¥403,464 million year on year)
- Deterioration in substantial net business profit (non-consolidated substantial net business profit of negative ¥16,237 million) due to large-scale losses recorded on sales of government bonds and other bonds (non-consolidated ¥58,137 million)
- Risk of intensified competition due to progress in digitalization and entry by companies from other industries
- Increase in personnel expenses due to introduction of a new personnel system and wage increases (non-consolidated personnel expenses of ¥27,885 million, up ¥1,748 million year on year), and increase in expenses due to strategic investments
Last updated: June 15, 2026