North Pacific Bank,Ltd. (8524) Stock Price

Hokuyō Bank provides diverse financial services centered on banking operations. Specifically, the bank offers deposit services, lending services, domestic remittance services, foreign exchange services, securities services, and credit card services, contributing to the vitalization of the regional economy.

The Hokuyō Bank Group also includes Sapporo Hokuyō Lease Co., Ltd., which handles leasing operations. This company provides leasing services to corporations and individuals, supporting their capital investments.

Additionally, the group includes Sapporo Hokuyō Card Co., Ltd., which provides credit card and credit guarantee services; Hokuyō Business Service Co., Ltd., which handles banking operations outsourcing; and Hokuyō Securities Co., Ltd., which manages securities operations.

Furthermore, Hokkaido Co-creation Partners Co., Ltd. provides consulting services, human resources placement services, and M&A advisory services. Through these offerings, the company supports corporate growth and management strategy development.

Hokuyō Bank is implementing a medium-term management plan titled "Challenge for New Growth" from fiscal year 2023 through 2026. This plan addresses concerns about market shrinkage due to Hokkaido's declining population and aims to support the region's long-term sustainability. Hokuyō Bank seeks to contribute to Hokkaido's future by meeting the needs of local businesses and individuals.

The medium-term management plan centers on three overarching strategies, with "growth" and "environment and society" as key themes. Specifically, these are: supporting improved sustainability for Hokkaido and customers, developing talent to drive customer growth, and enhancing productivity through branch function restructuring and operational efficiency improvements. Through these strategies, Hokuyō Bank aims to increase corporate value.

Hokuyō Bank targets net income attributable to parent company shareholders of 17 billion yen by fiscal year 2025, with a goal to raise the capital adequacy ratio to approximately 14%. The bank also plans to improve ROE to approximately 4% and reduce the core OHR to approximately 70%. By achieving these metrics, the bank aims to realize sustainable growth.

While Hokkaido faces challenges including an aging population with fewer births and declining numbers of business establishments, opportunities exist for industrial transformation, such as renewable energy development and the entry of next-generation semiconductor manufacturers. Hokuyō Bank is committed to practicing its management philosophy and code of conduct to address these changes and reliably advance its medium-term management plan in support of the region's sustainable development.