The Keiyo Bank, Ltd.
8544・Prime Market・Banks
Banking
Core segment of the regional financial institution based primarily in Chiba Prefecture
| Period | Current | Previous | Change |
|---|---|---|---|
| Ordinary income (consolidated) | ¥108,656 million | ¥80,370 million | ↑ |
| Ordinary profit (consolidated) | ¥22,452 million | ¥18,214 million | ↑ |
| Profit attributable to owners of parent (consolidated) | ¥15,912 million | ¥12,756 million | ↑ |
| Consolidated capital adequacy ratio (domestic standard) | 10.55% | 10.78% | ↓ |
| Non-performing loan ratio (ratio to total credit exposure, non-consolidated) | 1.25% | 1.29% | ↓ |
| Loan balance (non-consolidated, period-end) | ¥4,549,915 million | ¥4,363,116 million | ↑ |
| Deposit balance (non-consolidated, period-end) | ¥5,635,872 million | ¥5,541,123 million | ↑ |
| Core net business profit (non-consolidated) | ¥20,925 million | ¥16,974 million | ↑ |
| Overall interest margin (non-consolidated, all branches) | 0.18% | 0.13% | ↑ |
| Core OHR (non-consolidated) | 66.58% | 70.09% | ↓ |
| Net assets per share (consolidated) | ¥2,695.12 | ¥2,508.89 | ↑ |
| Annual dividend per share | ¥42.00 | ¥30.00 | ↑ |
Business Details
The sole reportable segment of the Bank's group. With Chiba Prefecture as its primary business base, the segment centers on Deposit Business and Lending Business, and also conducts domestic and foreign exchange operations, Securities Investment Business, over-the-counter sales of government and other public bonds, investment trusts and insurance products, and trust agency operations. It provides a wide range of financial products and services to individuals, small and medium-sized enterprises, local governments, and others. Three consolidated subsidiaries (Keiyo Bank Capital & Consulting, Keiyo Bank Card, and Keiyo Bank Guarantee Service) serve complementary functions.
Recent Overview
Net income reached a record high driven by a sharp increase in interest on loans and gains on sale of equities, etc.
In FY2026 (ending March 2026) (non-consolidated), interest on loans expanded sharply to ¥50,828 million (up 28.7% year on year) and interest on deposits with banks surged to ¥4,833 million (up 117% year on year), reflecting the rise in policy interest rates. In addition, gains on sale of equities, etc. increased significantly to ¥23,340 million (from ¥10,534 million in the prior period), bringing ordinary income to ¥107,573 million (up 35.6% year on year). Meanwhile, despite increased expenses including losses on sale of government bonds and other bonds of ¥21,677 million associated with the review of the securities portfolio, and interest on deposits of ¥11,659 million (¥3,627 million in the prior period), net income reached a record high of ¥15,838 million (up 24.9% year on year). For FY2027 (ending March 2027), the Bank forecasts ordinary profit of ¥27,500 million and net income of ¥19,000 million, and plans to raise the annual dividend per share to ¥66 (up ¥24 year on year).
Key Products
Growth Drivers
- Expansion of interest income on loans (¥50,828 million, up 28.7% year on year) and sharp increase in interest income on deposits with banks (¥4,833 million, up 117% year on year), driven by the rise in policy interest rates
- Boost to earnings from a significant increase in gains related to equities, etc. (¥22,879 million, versus ¥9,064 million in the prior period)
- Continued expansion of the loan balance (non-consolidated, period-end: ¥4,549,915 million, up ¥186,798 million year on year, an annual growth rate of 4.2%)
- Steady buildup of lending to small and medium-sized enterprises (¥3,577,051 million, up ¥149,262 million year on year) and housing loans (¥1,787,749 million, up ¥70,202 million year on year)
- Expansion of the fee income base through growth in personal asset custody assets (¥690,815 million, up ¥91,496 million year on year)
- Productivity improvement through omnichannel evolution and business process restructuring built around the new core banking system launched in January 2025 (Core OHR of 66.58%, an improvement of 3.51 percentage points year on year)
- Forecast for increased earnings toward FY2027 (ending March 2027), with gross operating profit (excluding gains/losses on government bonds and other bonds) of ¥73.2 billion, ordinary profit of ¥27.5 billion, and net income of ¥19.0 billion
Risks
- Risk of margin compression due to a sharp rise in funding costs associated with rising interest rates (interest on deposits of ¥11,659 million, versus ¥3,627 million in the prior period)
- Risk of continued losses on sale of government bonds and other bonds (¥21,677 million) associated with the review of the securities portfolio
- Increased expenses such as personnel expenses (¥19,383 million, up ¥1,132 million year on year) and non-personnel expenses (¥19,362 million, up ¥2,070 million year on year), including costs related to the new core banking system
- Regional concentration risk due to the primary business base being in Chiba Prefecture (structural changes in the regional economy due to population decline and the falling birthrate combined with an aging population)
- Risk of rising credit costs, including an increase in the balance of doubtful receivables (¥39,359 million, versus ¥38,779 million in the prior period)
- Risk of volatility in gains/losses related to equities, etc. due to heightened uncertainty in the economic environment, partly stemming from US trade policy and other factors
- Decline in the capital adequacy ratio (10.52%, down 0.23 percentage points year on year) due to the expansion of risk assets (non-consolidated: ¥2,691,983 million, up ¥144,252 million year on year) associated with the increase in loans
Last updated: June 17, 2026