FIDEA Holdings Co. Ltd.
8713・Prime Market・Banks
Business
FIDEA Holdings is the holding company of the first cross-prefectural regional financial institution group in Tohoku, established in 2009 through the business integration of Shonai Bank, based in Yamagata Prefecture, and Hokuto Bank, based in Akita Prefecture. With banking as its core business, the group also operates in credit card services, credit guarantee services, leasing, retail electricity, and investment businesses, with its primary operating area covering Akita, Yamagata, and Miyagi Prefectures. The group comprises 7 consolidated subsidiaries and provides financial intermediary functions primarily to regional individual and corporate customers as well as local public bodies. In January 2027, the group plans to merge Shonai Bank and Hokuto Bank into "FIDEA Bank," completing the final stage of the business integration.
Business Model
The bank primarily raises funds through deposits from individuals, corporations, and local governments, and deploys them in business loans, loans to local governments, structured loans, and other assets, with the deposit-lending interest margin forming the core of earnings. In addition, it has a multi-layered revenue structure combining fee income centered on agency commissions from insurance and investment trust sales, and market investment gains from securities and foreign securities. In FY2026 (ending March 2026), consolidated ordinary income was ¥56,055 million, of which net interest income accounted for the majority at ¥29,689 million.
Company Strengths
With a two-bank structure comprising Shonai Bank (Yamagata) and Hokuto Bank (Akita), the group forms Tohoku's first wide-area regional bank group spanning a prefectural border. From April 2025, the group began dual appointments of officers and head-office staff across both banks along with unified management operations, building a customer support framework that leverages both wide-area reach and specialization through mutual utilization of highly specialized personnel.
The combined balance of structured lending to financial institutions at the two banks reached ¥280,000 million, underpinning stable fund investment income. Business loan balances at the two banks combined expanded steadily to ¥797,900 million (up ¥18,400 million from the previous fiscal year-end), and total loans, including loans to local governments and the central government, reached ¥1,967,175 million.
From the end of March 2026, the credit risk measurement method was changed from the standardized approach to the foundational internal ratings-based approach. This compressed risk-weighted assets to ¥1,001,192 million (down ¥17,361 million from the previous fiscal year-end), improving the consolidated capital adequacy ratio (domestic standard) to 9.85% (up 0.36 percentage points from the previous fiscal year-end). The amount of capital also increased to ¥98,710 million.
ENVALITH's Perspective
Performance Trend
Consolidated ordinary income for FY2026 (ending March 2026) was ¥56,055 million (up 5.4% year on year), and net income attributable to owners of the parent was ¥4,128 million (up 46.5% year on year), representing a substantial profit increase. As an external factor, amid the BOJ's rate hike phase, interest on loans (¥25,418 million, up ¥3,864 million year on year) and interest on deposits with banks (¥2,131 million, up ¥1,519 million year on year) drove net interest income. Credit-related costs normalized to ¥475 million (down ¥952 million year on year). On the other hand, fee income from the Fee-Based Services Business was ¥5,061 million (down ¥494 million year on year), weighed down by a decline in insurance-related commissions. For FY2027 (ending March 2027), the company forecasts ordinary income of ¥4,800 million (down 12.1% year on year) and net income of ¥3,200 million (down 22.4% year on year), with merger-related one-time expenses expected to weigh on profits.
Growth Strategy
Achieve improved earnings power through completion of the merger in January 2027, realization of synergies, expansion of corporate lending, and restructuring of securities holdings
The merger of the two banks, scheduled for January 2027, is positioned as the most important initiative of the Sixth Medium-Term Management Plan. Through the expansion of the business foundation, enhancement of funding capacity, and deepening of consulting-based sales by integrating the know-how of both banks resulting from the merger, the company aims to achieve net income of ¥6.0 billion in FY2028. In FY2026, one-time merger-related costs (advertising expenses, renewal of equipment and supplies, etc.) of ¥2.1 billion are planned to be recorded.
The combined business loan balance of the two banks steadily expanded to ¥797,900 million (up ¥18,400 million from the previous fiscal year-end), and loans to local governments increased to ¥457,992 million (up ¥12,837 million). The decrease in consumer loans (down ¥27,016 million from the previous fiscal year-end) was offset by growth in business loans and loans to local governments, resulting in an overall increase in total loans of ¥54,243 million.
The securities balance was reduced by ¥164,651 million from the previous fiscal year-end (to ¥401,188 million), and cash and due from banks increased significantly (to ¥436,689 million) due to sales and redemptions exceeding purchases. Deferred hedge gains/losses improved to ¥8,429 million (up ¥5,207 million from the previous fiscal year-end), strengthening the financial structure. In FY2026, the company plans to narrow the loss on government bonds and other securities (to -¥3.6 billion, an improvement of ¥4.2 billion year on year).
At the Board of Directors meeting held on May 15, 2026, the shareholder return policy was changed to a dividend payout ratio basis (targeting 40% of consolidated net income attributable to owners of the parent), and progressive dividends were introduced. The annual dividend for FY2026 (ending March 2026) is planned at ¥75 per share (dividend payout ratio of 32.7%), and the dividend for FY2027 (ending March 2027) is also planned to be maintained at ¥75 per share (forecast dividend payout ratio of 42.3%). The basic policy is to achieve both sustainable profit growth and shareholder returns.
Last updated: July 19, 2026