TOMATO BANK, LTD.
8542・Standard Market・Banks
Business
The Tomato Bank Group is a regional financial institution based in Okayama Prefecture, founded in 1931. With no holding company structure, it centers on the standalone bank, which has three consolidated subsidiaries (Tomato Lease, Tomato Card, and Tomato Business). The bank itself provides comprehensive financial services—including deposits, lending, foreign exchange, securities investment, insurance, and investment trust sales—through its head office and 60 branches. Its main customers are individuals within Okayama Prefecture (for housing loans and consumer loans) and small and medium-sized businesses. With loans outstanding of ¥1,075,888 million and deposits outstanding of ¥1,273,226 million, it is a regional bank listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The bulk of funding comes from individual and corporate deposits (¥1,273,226 million), which are deployed into loans (¥1,075,888 million), securities (¥158,745 million), and other assets to generate interest margin. In FY2026 (ending March 2026), interest income was ¥16,051 million and interest expenses were ¥2,933 million, resulting in net interest income of ¥13,117 million. Adding net fees and commissions of ¥1,652 million and other operating income of ¥655 million, gross operating profit came to ¥15,425 million. The structure is such that the leasing subsidiary and card subsidiary supplement group earnings.
Company Strengths
As of the end of March 2026, loans to borrowers within Okayama Prefecture (non-consolidated) stood at ¥942,752 million, accounting for the large majority of total loans, and the Bank has built long-term relationships with individuals and small businesses through its 60-branch network. Personal loan balances (non-consolidated), including housing loans of ¥343,126 million and consumer loans of ¥78,661 million, reached ¥421,787 million in total, and this community-based customer base is difficult to replicate in a short period.
The balance of assets in custody, including investment trusts, individual annuity insurance, and public bonds, reached ¥1,472,512 million (up ¥41,785 million from the previous fiscal year-end). Sales of investment trusts and individual annuity insurance have continued to increase, contributing to the steady accumulation of fee income (net fees and commissions of ¥1,652 million) that is less susceptible to the interest rate environment.
As of the end of March 2026, the consolidated capital adequacy ratio (domestic standards) stood at 9.18%, well above the regulatory minimum of 4% and exceeding the medium-term management plan target of 8% or higher. Capital stood at ¥57,780 million. This reflects thorough control of risk assets and demonstrates the Bank's financial stability even amid rising credit costs.
ENVALITH's Perspective
Performance Trend
Consolidated ordinary income increased for five consecutive fiscal years, from ¥22,817 million in FY2022 to ¥26,577 million in FY2026 (up 3.5% year on year in FY2026). Net income attributable to owners of parent fell to ¥1,530 million in FY2024, then recovered clearly over two consecutive years of profit growth, reaching ¥1,817 million in FY2025 and ¥1,970 million in FY2026. As an external factor, the Bank of Japan's interest rate hikes pushed up interest on loans (consolidated ¥13,829 million, up ¥1,904 million year on year) and interest on deposits with banks (¥490 million, up ¥251 million), while a sharp rise in interest on deposits (¥2,836 million, up ¥1,963 million) squeezed net interest income. Comprehensive income improved significantly from a loss of ¥219 million in the prior fiscal year to ¥2,270 million, aided by a recovery in net unrealized gains on available-for-sale securities. For FY2027 (ending March 2027), the company forecasts ordinary income of ¥29,500 million (up 10.9% year on year) and net income of ¥2,000 million (up 1.5%).
Growth Strategy
With core-business support and optimal proposals as the axis, the company aims for sustainable growth through a trinity of lending, assets in custody, and leasing.
Balances are being built up on two fronts: corporate lending (manufacturing, construction, real estate, etc.) and personal loans (housing loans, consumer loans). The non-consolidated loan balance for FY2026 (ending March 2026) expanded steadily to ¥1,080,589 million (up ¥17,925 million year on year), and the policy is to maintain this upward trend into FY2027 (ending March 2027).
The investment trust balance reached ¥68,558 million (up ¥12,365 million year on year) and the individual annuity insurance balance reached ¥96,804 million (up ¥4,298 million year on year), expanding the overall assets in custody balance to ¥1,472,512 million (up ¥41,785 million year on year). The company aims to enhance resilience to interest rate fluctuation risk by stabilizing fee revenue and diversifying commission income.
Ordinary income in the Leasing Business segment was ¥5,964 million (down ¥154 million year on year), a slight decline, but segment profit was maintained at ¥311 million. The company will pursue synergies with Banking through expansion of the lease receivables balance (consolidated: ¥11,111 million, up ¥486 million year on year) and deepening of inter-segment internal ordinary income (¥202 million).
Both metrics show improving trends, with consolidated capital adequacy ratio at 9.18% (up 0.16 percentage points year on year) and consolidated ROE at 3.47% (up 0.25 percentage points year on year). The company will strengthen shareholders' equity through use of the executive stock compensation program (disposal of treasury stock of ¥28 million) and accumulation of retained earnings (consolidated: ¥20,624 million), while maintaining a dividend payout ratio of 31.9% (annual dividend of ¥50 per common share).
Last updated: July 19, 2026