THE DAITO BANK, LTD.
8563・Standard Market・Banks
Business
Daito Bank, Ltd. traces its origins to its establishment in 1942 (as the former Daito Mujin) and converted to an ordinary bank in 1989. It is a regional financial institution whose principal business base is Fukushima Prefecture. Its core operations comprise the Banking Business—deposit taking, lending, securities investment, domestic exchange, and over-the-counter sales of investment trusts and insurance products—conducted through a total of 56 offices, consisting of its head office and branches. Through two consolidated subsidiaries, Daito Credit Service Co., Ltd. and Daito Lease Co., Ltd., it also complementarily operates Finance Lease, Credit Card Business, and Credit Guarantee Business. Its principal customers are individuals, corporations, and local public bodies within Fukushima Prefecture, and it is listed on the Standard Market of the Tokyo Stock Exchange.
Business Model
The core earnings model is a traditional deposit-and-lending model, with deposits (¥831,082 million at end-March 2026) as the primary funding source, deployed into loans (¥699,033 million) and securities (¥120,240 million). In FY2026 (ending March 2026), net interest income was ¥9,362 million, accounting for over 99% of gross operating profit. In addition, the company builds up fees and commissions income of ¥1,054 million through a composite earnings structure that includes fee businesses such as over-the-counter sales of investment trusts (35.1% of fee income), over-the-counter sales of insurance, business succession, and M&A support.
Company Strengths
The loan balance at the end of March 2026 reached a record high of ¥700,087 million (up ¥32,647 million from the previous fiscal year-end). Deposits (including negotiable certificates of deposit) also increased by ¥26.6 billion from the previous fiscal year-end to ¥831,082 million, with both loans and deposits expanding in balance. Diversified lending across various industries, including loans to local governments (¥85,684 million, comprising 12.26% of the portfolio), supports stable earnings.
The investment trust balance increased significantly to ¥76,392 million (up ¥9,672 million from the previous fiscal year-end), and fee income from over-the-counter sales of investment trusts reached ¥896 million (up ¥165 million year-on-year). Fee income from over-the-counter insurance sales also surged to ¥109 million (up ¥66 million year-on-year). Fee Business (Fee Income) increased by ¥111 million year-on-year to ¥1,054 million, reflecting ongoing diversification of fee income.
The ratio of disclosed claims under the Financial Reconstruction Act improved to 3.94% (from 4.05% at the previous fiscal year-end), with the coverage ratio from collateral, guarantees, and allowance for loan losses maintained at over 90%. Credit-related costs declined significantly to ¥169 million (down ¥232 million year-on-year), contributing to higher profit. The consolidated capital adequacy ratio stood at 11.02%, comfortably exceeding the domestic standard.
ENVALITH's Perspective
Performance Trend
Ordinary income remained flat from ¥12,887 million in FY2022 (ending March 2022) to ¥13,233 million in FY2025 (ending March 2025), but sharply accelerated in FY2026 (ending March 2026) to ¥15,499 million, up 17.1% year on year. As an external factor, against the backdrop of policy interest rate hikes, interest on loans (¥9,345 million) and interest and dividends on securities (¥1,592 million) increased substantially, expanding fund management income to ¥11,140 million (up ¥1,848 million year on year). Net income attributable to owners of the parent also reached a five-year high of ¥1,680 million (up 26.3% year on year). However, comprehensive income was negative for the second consecutive period at ¥-2,293 million, with the deterioration in valuation difference on available-for-sale securities (¥-15,537 million) putting pressure on net assets. For FY2027 (ending March 2027), the company forecasts ordinary income of ¥2,500 million (up 0.3%) and net income of ¥1,600 million (down 4.8%), suggesting a plateau.
Growth Strategy
Initiatives toward achieving the 6th Medium-Term Management Plan targets of core net business profit of ¥3.0 billion or more and ROE of 3.5% or more
The Bank has steadily increased lending to business and individual customers (centered on housing loans), pushing the non-consolidated loan balance to a record high of ¥700,087 million at the end of March 2026. The synergy between the improvement in loan yield (1.37%) and the expansion of the balance continues to support growth in net interest income.
Non-consolidated core net business profit improved significantly to ¥2,986 million in FY2026 (ending March 2026), up ¥617 million year on year. Although this fell short of the medium-term management plan target of ¥3.0 billion, net interest income, driven by the tailwind of rising interest rates, brought performance close to the target level.
Investment trust balances expanded substantially to ¥76,392 million (up ¥9,672 million from the previous fiscal year-end), and total assets in custody reached ¥139,290 million (up ¥8,400 million from the previous fiscal year-end). Fees and commissions (non-consolidated) improved to ¥802 million (up ¥120 million year on year), reflecting progress in boosting non-interest income.
The year-end dividend for FY2026 (ending March 2026) is ¥40 per share (an increase of ¥8 year on year), with a dividend payout ratio of 30.2%. For FY2027 (ending March 2027), a dividend of ¥40 per share (payout ratio of 31.7%) is also planned, maintaining the performance-linked stable dividend policy.
Last updated: July 19, 2026