THE FUKUSHIMA BANK, LTD.
8562・Standard Market・Banks
Business
The Bank of Fukushima, Ltd. was founded in 1922 and is headquartered in Fukushima City, Fukushima Prefecture, as a regional bank. Through its head office and a network of 48 branches and 5 sub-branches, it provides deposit, lending, and exchange services, with a primary focus on supporting the core businesses of local companies and helping individuals build assets. Its consolidated subsidiaries comprise three companies: Tohoku Banking Systems Co., Ltd., which handles software development and operations; Fukugin Lease & Credit Co., Ltd., which conducts Leasing Business, Credit Card Business, and Credit Guarantee Business; and Fukugin Regional Revitalization Investment Co., Ltd., established in August 2025. Through a capital and business alliance with SBI Holdings, Inc. (concluded in 2019), the company is also working to strengthen its fintech and financial product services. Its main customers are small and medium-sized enterprises within Fukushima Prefecture (lending ratio of 78.46%) and individuals (housing loan balance of ¥215,200 million). The company is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The core earnings model is a traditional deposit-lending structure, deploying total deposits of ¥758,701 million into loans of ¥587,683 million and securities of ¥161,126 million. In FY2026 (ending March 2026), interest income of ¥9,620 million against interest expenses of ¥1,892 million secured a net interest margin of ¥7,728 million. In addition to this, the structure is complemented by income from investment trust and insurance sales (Assets in Custody Business balance of ¥122,092 million) and fee and commission income of ¥2,811 million from deposit and lending business fees, among others.
Company Strengths
The company operates a network of 48 branches (including the head office) and 5 sub-branches across Fukushima Prefecture, holding a stable deposit base of ¥485.6 billion in personal deposits and ¥187.5 billion in corporate deposits. With a ratio of loans to small and medium-sized enterprises of 78.46% and 6,179 business support clients (FY2026 (ending March 2026) results), the company has built community-based customer relationships, giving it a locally embedded foundation that competitors cannot easily replicate in a short period.
The next-generation banking system was launched in July 2024, and in FY2026 (ending March 2026), non-consolidated operating expenses were reduced to ¥7,952 million (down ¥1,005 million year on year) due to the drop-off of one-time costs. The company has established a foundation for improving both the quantity and quality of sales activities by utilizing digital tools such as FutureBANK and Copilot, achieving a permanent improvement in its cost structure through in-house investment.
The balance of assets in custody reached ¥122,092 million at the end of March 2026 (up ¥11,639 million year on year), driven by investment trusts (up ¥8,540 million) and insurance (up ¥2,628 million). Fee and commission income expanded to ¥2,811 million (up ¥239 million year on year), and the depth of the customer base, with 34,386 clients receiving asset formation support (progressing toward a target of 40,000 clients), is supporting the diversification of revenue.
ENVALITH's Perspective
Performance Trend
Ordinary income remained flat from ¥13,179 million in FY2022 to ¥13,290 million in FY2023 to ¥13,303 million in FY2024, then rose to ¥13,417 million in FY2025 (up 0.8% year on year), before accelerating to ¥15,175 million in FY2026 (up 13.1% year on year). As an external factor, rising market interest rates pushed up interest income from fund management (¥9,620 million, up ¥1,605 million year on year). Net income improved by ¥1,988 million, from ¥-1,252 million in FY2025 (which included one-time expenses and impairment losses associated with the next-generation banking system renewal) to ¥736 million in FY2026. For FY2027, the company forecasts ordinary income of ¥16,600 million, ordinary profit of ¥1,100 million, and net income of ¥900 million.
Growth Strategy
Promoting a 5-year medium-term management plan (FY2024–FY2029) under the theme of "Maximizing real-world strength through the power of digital."
Expanding interest income from fund management through the accumulation of loan balances (to local governments, housing loans, and small and medium-sized enterprises) and optimization of the securities portfolio (increase in government bonds). In FY2026 (ending March 2026), interest on loans of ¥8,155 million and interest and dividends on securities of ¥1,334 million (on a non-consolidated basis) increased by ¥1,077 million and ¥533 million respectively year on year, showing steady progress.
Expanding the assets in custody balance and stabilizing fee income through enhanced sales of investment trusts, insurance, and public bonds. The balance at the end of FY2026 (ending March 2026) reached ¥122,092 million (up ¥11,639 million year on year), expanding steadily. Fee and commission income also increased to ¥2,849 million (up ¥249 million year on year), continuing an upward trend.
Following the completion of the next-generation banking system replacement in the previous fiscal year, non-consolidated operating expenses for FY2026 (ending March 2026) were significantly reduced to ¥7,952 million (down ¥1,005 million year on year). Core net business profit turned positive, reaching ¥1,480 million (up ¥1,538 million year on year). The aim is to improve profitability while maintaining a low-cost base.
Fukugin Regional Revitalization Investment Co., Ltd. was newly established on August 27, 2025, and added as a consolidated subsidiary. The aim is to strengthen investment functions for regional companies and to promote regional economic revitalization and expand revenue opportunities by providing diverse financial services beyond lending.
Last updated: July 19, 2026