The Ehime Bank, Ltd.

Business Details

The Bank operates deposit-taking, lending, domestic exchange, foreign exchange and other operations through its head office and branches/sub-branches. Its primary customers are individuals, SMEs, corporations and local governments mainly in Ehime Prefecture, providing value through supporting the regional economy via financial intermediation functions. Ordinary income from external customers for FY2026 (ending March 2026) was ¥62,764 million, representing approximately 91.6% of the Group's ordinary income of ¥68,517 million, making it the core business.

Recent Overview

Banking Business segment profit rose sharply by 39.5% year on year, driven by higher yen interest rates and increased gains on sales of equities.

Banking Business segment profit for FY2026 (ending March 2026) was ¥9,887 million (prior year ¥7,091 million, up ¥2,796 million year on year). The main drivers were an increase in interest on loans due to rising yen interest rates (non-consolidated ¥32,368 million, up ¥1,179 million year on year) and an expansion in gains on sales of equities, etc. (non-consolidated ¥4,605 million, up ¥845 million year on year). Meanwhile, interest on deposits rose to ¥9,425 million (up ¥3,579 million year on year). The overall interest margin in domestic operations was 0.13% (improved by 0.02 percentage points year on year). Risk-monitored loans decreased by ¥985 million from the prior fiscal year-end to ¥33,865 million, indicating an improving trend in asset quality.

Key Products

Growth Drivers

• Increase in interest income on yen-denominated loans due to rises in domestic policy interest rates (non-consolidated loan yield 1.49%, up 0.18 percentage points year on year)
• Expansion of loan balance through active promotion of lending to SMEs and individuals (non-consolidated period-end balance ¥2,020,785 million, up ¥38,113 million from the prior fiscal year-end)
• Expansion of other ordinary income including increased gains on sales of equities, etc. (non-consolidated gains on sales of equities, etc. ¥4,605 million, up ¥845 million year on year)
• Boost to fee income from the increase in assets under custody (¥160,064 million as of end-March 2026, up ¥24,893 million from the prior fiscal year-end)
• Expansion of fees and commissions income (Banking Business segment ¥4,300 million, up ¥278 million year on year)

Risks

• Increase in deposit interest costs accompanying rises in domestic market interest rates (non-consolidated interest on deposits ¥9,425 million, up ¥3,579 million year on year)
• Risk of fluctuation in foreign currency funding costs (other interest expenses decreased by ¥2,952 million year on year to ¥6,387 million, but could re-expand depending on market conditions)
• Interest rate risk in the securities portfolio (valuation loss on other securities (bonds) of ¥(14,003) million; valuation loss on held-to-maturity bonds of ¥(445) million)
• Long-term risk of shrinking regional economy and declining loan demand due to population decline and aging (personal loan balance ¥537,414 million, down ¥28,939 million from the prior fiscal year-end)
• Trends in risk-monitored loans (loans to bankrupt and quasi-bankrupt debtors of ¥24,029 million account for the majority of the balance, with loans to various service industries at ¥15,713 million being the largest)
• Adverse effects of geopolitical risk and global economic slowdown on customers' business conditions, the securities investment environment, and real estate prices