The Ehime Bank, Ltd.
8541・Prime Market・Banks
Business
The Ehime Bank, Ltd. was founded in 1915 and is headquartered in Matsuyama City, Ehime Prefecture, as a regional bank. Through its head office, 98 branches, and 12 sub-branches, it conducts Deposit Business, Lending Business, Exchange Business, and foreign exchange operations. It has five consolidated subsidiaries (Himegin Lease, Himegin Business Service, Himegin Soft, Ehime JCB, Nishi-Seto Marine Partners, etc.), providing a wide range of financial services spanning Leasing Business, Credit Card Business, computer systems, and ship finance support. Its main customers are small and medium-sized enterprises and individuals within Ehime Prefecture, and as the "Himegin Group," it serves a community-based financial function supporting the region's industry and daily life. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
Using deposits and negotiable certificates of deposit (¥2,778,575 million as of end-March 2026) as funding, the company invests in loans (¥2,013,899 million) and securities (¥602,723 million), with net interest margin as its primary source of income. In addition, it employs a composite earnings model that builds up fee income related to assets in custody (¥160,064 million), such as mutual funds and insurance sales, leasing revenue from Himegin Lease, and peripheral revenue such as credit card and guarantee fees.
Company Strengths
Operating a head office plus 98 branches and 12 sub-branches both within and outside Ehime Prefecture, the bank has built relationships with local customers over more than 100 years since its founding in 1915. It maintains a loan balance of ¥2,013,899 million and deposit balance of ¥2,778,575 million, holding a stable customer base centered on lending to SMEs and individuals.
In addition to the Banking Business, the group has established a framework to provide, on a one-stop basis, peripheral financial services that would be difficult for the bank alone to offer, through subsidiaries such as Himegin Lease (segment assets of ¥14,216 million), Ehime JCB (Credit Card Business), Himegin Soft (computer-related), and Nishi-Seto Marine Partners (ship finance support).
The risk-monitored loan ratio has improved to 1.68% (down 0.09 percentage points year on year), and loans to bankrupt and reorganizing debtors remain low at ¥2.2 billion. The consolidated capital adequacy ratio of 8.69% exceeds the domestic regulatory standard, maintaining financial soundness. Credit costs are also being kept in check through appropriate management of the allowance for loan losses.
ENVALITH's Perspective
Performance Trend
Ordinary revenue (equivalent to sales) expanded 62% over five fiscal periods, from ¥42,224 million in FY2022 to ¥68,517 million in FY2026. Net income declined to ¥5,055 million in FY2024, then recovered and expanded for two consecutive periods to ¥5,715 million in FY2025 and ¥7,212 million in FY2026, updating the highest level of the past five fiscal years. The factors behind the profit increase in FY2026 (ending March 2026) were, on the external side, an increase in interest on loans due to rising yen interest rates (consolidated ¥32,303 million, up ¥1,152 million year on year) and an expansion in gains on sales of stocks and other securities (non-consolidated ¥4,605 million), while on the cost side the main factor was a decrease in foreign currency funding costs (other interest expenses decreased significantly from ¥9,341 million to ¥6,389 million). Operating expenses increased to ¥25,992 million (up ¥528 million year on year), but the expansion in revenue exceeded this increase. Comprehensive income was ¥10,007 million (a significant improvement from ¥-452 million in the previous period), contributed to by an improvement in valuation difference on available-for-sale securities (from ¥-2,426 million to ¥-745 million) and an improvement in remeasurements of defined benefit plans (from ¥-13 million to ¥1,076 million).
Growth Strategy
Under the 18th Medium-Term Management Plan "Challenge for Transformation 3rd Stage," the company aims for sustainable growth built on three pillars: Finance Plus One, DX, and Sustainability.
Capturing the yen interest rate upturn, the company has continued to actively promote lending, particularly to small and medium-sized enterprises. Results have become evident, with the non-consolidated loan balance at fiscal year-end reaching ¥2,020,785 million (up ¥38,113 million from the previous fiscal year-end) and the loan yield rising to 1.49% (up 0.18 percentage points year on year). For FY2027 (ending March 2027), building up the loan balance to expand net interest income is positioned as the primary driver.
The balance of assets under custody, including investment trusts, insurance, and government bonds, expanded to ¥160,064 million (up ¥24,893 million from the previous fiscal year-end). Net fees and commissions (consolidated) increased to ¥6,496 million (up ¥878 million year on year), continuing an upward trend. Revenue from peripheral services such as the Credit Card Business is also expanding, and diversification of non-interest income is steadily progressing.
As a basic policy, the company targets a non-consolidated dividend payout ratio of 30% or more, planning an annual dividend of ¥46 (including a ¥2 commemorative dividend) for FY2026 (ending March 2026) and ¥48 for FY2027 (ending March 2027). The consolidated dividend payout ratio is set to be raised in stages from 24.9% (FY2026, ending March 2026) to 28.8% (FY2027 forecast, ending March 2027). The policy aims to achieve both profit growth and shareholder returns.
Last updated: July 19, 2026