THE DAITO BANK, LTD.
8563・Standard Market・Banks
Banking Business
The core segment of the Daito Bank Group, responsible for comprehensive banking operations based in Fukushima Prefecture
| Period | Current | Previous | Change |
|---|---|---|---|
| Ordinary income from external customers (Banking Business) | ¥14,146 million | ¥11,824 million | ↑ |
| Segment profit (Banking Business) | ¥2,420 million | ¥1,945 million | ↑ |
| Segment assets (Banking Business) | ¥867,821 million | ¥847,936 million | ↑ |
| Depreciation (Banking Business) | ¥488 million | ¥573 million | ↓ |
| Increase in property, plant and equipment and intangible assets (Banking Business) | ¥611 million | ¥273 million | ↑ |
| Loan balance (non-consolidated, period-end) | ¥700,087 million | ¥667,440 million | ↑ |
| Total deposit balance (non-consolidated, period-end, including certificates of deposit) | ¥832,108 million | ¥805,463 million | ↑ |
| Disclosed claims ratio under the Financial Revitalization Act (non-consolidated) | 3.92% | 4.03% | ↓ |
| Core net business profit (non-consolidated) | ¥2,986 million | ¥2,368 million | ↑ |
| Non-consolidated capital adequacy ratio (domestic standard) | 10.78% | 11.08% | ↓ |
Business Details
Provides deposit-taking, lending, securities investment, domestic exchange, over-the-counter sales of investment trusts and insurance products, and related services. Business is fundamentally rooted in the region, combining corporate consulting (business succession/M&A support, ICT consulting, SDGs support, etc.) with support for individual asset formation (investment trusts, housing loans, etc.) as twin pillars. In FY2026 (ending March 2026), ordinary income from external customers was ¥14,146 million and segment profit was ¥2,420 million. This core business accounts for approximately 91% of the Group's total ordinary income.
Recent Overview
Rising interest rates provided a tailwind that substantially boosted net interest income, lifting segment profit by 24.4% year on year to ¥2,420 million
In FY2026 (ending March 2026), interest on loans rose to ¥9,338 million (up ¥1,447 million year on year) and interest and dividends on securities rose to ¥1,592 million (up ¥305 million year on year), driving broad-based expansion in fund management income. The loan balance reached a record high of ¥700,087 million. On the other hand, interest expenses on deposits surged to ¥1,598 million (up ¥1,080 million year on year), sharply raising funding costs. Losses on sales of JGBs and other bonds expanded to ¥1,119 million (up ¥726 million year on year), though this was partially offset by gains on sales of stocks and other securities of ¥453 million (up ¥202 million year on year). Credit-related expenses improved substantially to ¥148 million (down ¥236 million year on year), and the disclosed claims ratio under the Financial Revitalization Act declined to 3.92% (from 4.03% at the prior fiscal year-end). The investment trust balance grew to ¥76,392 million (up ¥9,672 million from the prior fiscal year-end), expanding assets under custody.
Key Products
Growth Drivers
- Expansion of fund management income driven by higher interest on loans (¥9,338 million, up ¥1,447 million year on year) reflecting policy rate hikes
- Accumulation of stable interest income supported by the loan balance reaching a record high (¥700,087 million, up ¥32,647 million from the prior fiscal year-end)
- Increases in interest and dividends on securities (¥1,592 million, up ¥305 million year on year) and interest on deposits with banks (¥202 million, up ¥94 million year on year)
- Boost to fee income from expanded assets under custody, driven mainly by a substantial increase in the investment trust balance (¥76,392 million, up ¥9,672 million from the prior fiscal year-end)
- Profit-boosting effect from a substantial decrease in credit-related expenses (¥148 million, down ¥236 million year on year) and improvement in the disclosed claims ratio under the Financial Revitalization Act (3.92%)
Risks
- Risk of rising funding costs and margin compression due to a sharp increase in interest expenses on deposits (¥1,598 million, up ¥1,080 million year on year) accompanying policy rate hikes
- Bond portfolio risk amid rising interest rates (bond valuation losses of ¥18,325 million), as unrealized valuation losses on other securities expanded to ¥15,537 million (from ¥11,451 million at the prior fiscal year-end)
- Expansion of losses on sales of JGBs and other bonds to ¥1,119 million (up ¥726 million year on year), making profit and loss management of the securities portfolio a challenge
- Declining trend in the non-consolidated capital adequacy ratio (domestic standard) to 10.78% (from 11.08% at the prior fiscal year-end), reflecting reduced capital adequacy amid growth in risk assets
- Risk of medium- to long-term decline in loan demand and a falling SME loan ratio (71.41%, down from 74.12% at the prior fiscal year-end) due to population decline in Fukushima Prefecture and a slowing pace of regional economic recovery
Last updated: June 23, 2026