The Joyo Bank, Ltd. (E03551) Stock Price

**Joyo Bank Business Overview**

Joyo Bank is a regional bank operating under the Mebuki Financial Group, providing comprehensive financial services centered on banking operations. Together with seven consolidated subsidiaries, the company offers a wide range of financial services—from deposits and lending to credit guarantees and credit card operations—addressing diverse funding needs of individual and corporate customers in its region.

The company's revenue structure is primarily driven by banking operations. Through its branch network, it conducts deposit-taking, lending, and domestic and foreign exchange services. To meet customers' increasingly sophisticated financial needs, the bank actively expands insurance window sales and financial product intermediary services to grow fee-based income.

Business segments are divided into "Banking Operations" and "Other." The Banking Operations segment focuses on expanding various financial products and services alongside traditional deposit and lending activities. The Other segment conducts credit guarantee and credit card operations through affiliated companies, and works in coordination with the parent company group's leasing and securities operations to provide comprehensive financial services to local businesses.

Joyo Bank, together with its parent company Mebuki Financial Group, launched the "Second Medium-Term Group Management Plan" starting in fiscal 2019. The bank aims to become a "comprehensive financial services group that creates the future of communities." The company prioritizes improving operational efficiency and has set key performance indicators including return on equity (ROE), consolidated net profit growth, and improvement in the overhead ratio (OHR). Through these metrics, the bank seeks to enhance corporate value.

The first pillar of its priority strategy, "Building a Business Model for Growth with Communities," involves expanding beyond traditional financial services. The bank is strengthening its consulting capabilities and focusing on solving customer challenges through IT services and data utilization. It is also developing new business areas by leveraging management resources held by Mebuki Financial Group. This strategy shifts the bank's role from a mere funding provider to a growth partner for the region.

Under "Structural Reform for Productivity Improvement," aimed at operational efficiency and organizational transformation, the bank is reviewing business processes and optimizing organizational structure following the integration of its core systems in January 2020. Resources freed up through this reform will be redirected toward high-value-added consulting sales and IT investments to accelerate a shift in revenue structure. Simultaneously, the bank is strengthening management control systems and governance across the entire group.

Regarding human resources strategy, "Developing talent for value creation" is positioned as a core strategy. The bank focuses on cultivating specialized personnel through external knowledge and personnel exchanges. While promoting work-life balance and improving employee engagement, the company aims to build a workforce capable of responding to digital advancement and changing customer needs. Through these initiatives, the bank pursues sustainable growth alongside the communities it serves.