The Keiyo Bank, Ltd.
8544・Prime Market・Banks
Business
The Bank of Chiba, Ltd. (Note: source says Keiyo Bank) was founded in 1943 and is a regional bank (listed on the TSE Prime Market) with Chiba Prefecture as its main business base. Centered on deposits, lending, foreign exchange, and securities investment, it provides a wide range of financial products and services—including over-the-counter sales of investment trusts and insurance, and trust agency operations—to individuals, small and medium-sized enterprises, and local governments. Its three consolidated subsidiaries (Keiyo Bank Capital & Consulting, Keiyo Bank Card, and Keiyo Bank Guarantee Service) handle M&A and consulting, credit card operations, and credit guarantee and collateral appraisal operations respectively, forming a comprehensive financial group that complements the core bank. In January 2025, the bank launched a new core banking system and is currently promoting an omnichannel strategy that integrates digital and branch-based services.
Business Model
The main revenue sources consist of interest on loans (¥50,828 million in FY2026 (ending March 2026)) and interest and dividends on securities, forming net interest income (¥55,024 million). To this is added net fees and commissions (¥8,914 million). The basic structure is a spread model in which low-cost personal deposits (¥4,449,130 million) are funded and allocated to SME loans (¥1,703,419 million), housing loans (¥1,787,749 million), and securities investments. Expansion of personal asset custody (¥690,815 million) reinforces the fee income base.
Company Strengths
Loan balance at end of March 2026 stood at ¥4,550,008 million (up ¥186,805 million year-on-year, an annualized increase of 4.2%). Continued growth has been driven mainly by loans to SMEs (¥1,703,419 million) and housing loans (¥1,787,749 million), with deep penetration into local industry—such as a 24.27% composition ratio for the real estate sector—supporting the accumulation of loan balances. The ratio of normal (non-classified) assets has also remained at a high level in terms of asset quality assessment.
The Bank holds a personal deposit balance of ¥4,449,130 million (up ¥54,069 million year-on-year), with liquid deposits of ¥3,838,060 million forming the core of its funding. The funding yield remains as low as 0.22%, securing a spread against the asset yield of 1.07%. Cash and cash equivalents amount to ¥868,875 million (15.42% of the deposit balance), providing a financial foundation capable of addressing liquidity risk.
A new core banking system went live in January 2025. Building on this, the core OHR (based on gains/losses on bonds excluding gross operating profit) improved by 3.51 percentage points year-on-year to 66.58%. Capital expenditures of ¥4,251 million (including ¥1,706 million in software) were funded from internal resources and used, among other things, to enhance customer convenience through expanded services for the app jointly developed with Resona Holdings.
ENVALITH's Perspective
Performance Trend
Consolidated ordinary income increased 65% over five fiscal years, from ¥65,745 million in FY2022 (ended March 2022) to ¥108,656 million in FY2026 (ending March 2026). Acceleration was particularly pronounced from FY2025 (ended March 2025) (¥80,370 million, +14.4%) to FY2026 (ending March 2026) (¥108,656 million, +35.1%). As an external factor, policy interest rate hikes pushed up interest on loans (¥50,850 million, +¥11,488 million year on year) and interest on deposits with banks (¥4,833 million, +¥2,610 million year on year), and in addition, gains/losses related to equity securities (¥22,879 million, +¥13,815 million year on year) substantially boosted revenue. Profit attributable to owners of parent renewed its record high at ¥15,912 million. Core net business profit (non-consolidated) also increased 23.2% year on year to ¥20,925 million, indicating that sustainable earning power is also steadily improving.
Growth Strategy
Sustainable growth driven by omnichannel expansion, solution enhancement, and human capital investment, starting with the new core banking system
The new core banking system, launched in January 2025, has established an omnichannel framework that integrates digital and face-to-face channels. Results are already reflected in numbers, with Core OHR at 66.58% (a 3.51-point improvement year on year), demonstrating gains in operational efficiency. The Company will pursue expanded customer touchpoints and improved productivity simultaneously.
Loan balances are expanding around loans to small and medium-sized enterprises (¥3,577,051 million, up ¥149,262 million year on year, an annual growth rate of 4.9%) and housing loans (¥1,787,749 million, up ¥70,202 million year on year, an annual growth rate of 4.0%). Net interest income for FY2027 (ending March 2027) is projected at ¥64.2 billion (up ¥9.2 billion year on year).
The Company aims to increase Fee-Based Services (Commission Business) income through the expansion of Personal Asset Custody Sales (¥690,815 million, up ¥91,496 million year on year) and enhanced solution offerings for corporate clients, including M&A and consulting services. Fee-Based Services (Commission Business) income for FY2027 (ending March 2027) is projected at ¥9.5 billion (up ¥1.3 billion year on year).
The annual dividend for FY2026 (ending March 2026) is ¥42 (up ¥12 year on year), with a payout ratio of 31.8%. For FY2027 (ending March 2027), a substantial dividend increase to ¥66 (up ¥24 year on year) is planned. The Company is also conducting share buybacks (¥1,502 million in the current period) and share cancellations, aiming to improve capital efficiency while strengthening shareholder returns.
Last updated: July 19, 2026