Senshu Ikeda Holdings, Inc.

Business Details

Provides a broad range of banking services centered on The Senshu Ikeda Bank (136 branches and 3 sub-branches), including Deposit Business, Lending Business, Securities Investment Business, domestic and foreign exchange, trust services, over-the-counter sales of insurance, and securities brokerage. A subsidiary credit guarantee company handles guarantee operations for housing loans and other products. The digital bank "01Bank (Digital Bank)", which commenced operations in July 2025, also belongs to this segment. The segment's main customers are SMEs and individual customers in the Kansai region, and it accounts for approximately 82% of the Group's consolidated ordinary income, making it the Group's core business.

Recent Overview

Net interest income expanded significantly on rising interest rates; core net business profit rose 54% year on year to ¥25,868 million

In FY2026 (ending March 2026), The Senshu Ikeda Bank's non-consolidated gross operating profit was ¥65,713 million (up ¥9,285 million year on year). This was driven by net interest income of ¥59,060 million (up ¥11,166 million year on year), with the loan yield improving to 1.21% and the securities yield improving to 1.49%. On the other hand, interest expenses on deposits surged to ¥12,611 million (from ¥3,838 million in the prior period), pushing up funding costs. Although a loss of ¥3,721 million was recorded on sales of Japanese government bonds and other bonds, core net business profit increased substantially to ¥25,868 million. 01Bank recorded a net loss of ¥1,939 million in its first year of operations. As a subsequent event, the Bank entered into a capital and business alliance with The Shiga Bank (the Ikeda Senshu-Shiga Alliance) on April 17, 2026.

Key Products

Growth Drivers

• Expansion of interest income from fund management driven by increases in the loan yield (0.94%→1.21%) and securities yield (0.88%→1.49%) amid the Bank of Japan's policy rate hikes
• Growth in loan interest income driven by increases in both business loans (up ¥74,051 million from the previous fiscal year-end) and housing loans (up ¥100,791 million)
• Increase in interest and dividend income from the buildup of the securities portfolio centered on Japanese government bonds and municipal bonds (balance up ¥150,438 million from the previous fiscal year-end)
• Strengthening of the fee income base through growth in total individual assets under custody to ¥5,471,254 million (up ¥141,191 million from the previous fiscal year-end) and expanded sales of investment trusts and insurance products
• Acquisition of new customer segments through 01Bank's digital channels, with expected medium- to long-term earnings contribution
• Deepening of business collaboration in areas such as corporate, individual, and sustainability initiatives through the capital and business alliance with The Shiga Bank (the Ikeda Senshu-Shiga Alliance)

Risks

• Risk of margin compression due to a sharp rise in funding costs associated with higher deposit interest rates (interest expenses on deposits expanded roughly 3.3-fold to ¥12,611 million from ¥3,838 million in the prior period)
• Risk of rising credit costs associated with increased credit-related expenses (¥1,499 million) and a slight increase in the disclosed claims ratio (1.07%)
• Risk of expanding valuation losses on securities (particularly bonds), including a valuation loss of ¥35,032 million on other bonds and ¥14,496 million on held-to-maturity bonds at The Senshu Ikeda Bank on a non-consolidated basis
• Risk related to losses recorded from upfront investment and expenses at 01Bank (net loss of ¥1,939 million) and the timeline risk to achieving profitability
• Risk of losses associated with portfolio rebalancing, exemplified by losses on sales of Japanese government bonds and other bonds (¥3,721 million)
• Interest rate risk arising from the fixed/floating composition of loans and maturity mismatches amid a rising interest rate environment