Daishi Hokuetsu Bank,Ltd. (E03560) Stock Price

Daishi Bank is a regional bank based in Niigata Prefecture that provides comprehensive financial services centered on deposit and lending operations. In addition to its core banking business, the company operates through seven consolidated subsidiaries offering leasing, securities, and credit card services, addressing the diverse needs of regional businesses and individuals. The bank also actively sells government bonds, investment trusts, and insurance products at its counters, meeting customers' asset management needs.

The company's primary customers are small and medium-sized enterprises and individuals in Niigata Prefecture, with a community-focused business approach. Revenue is generated from traditional banking operations—the interest margin between deposits and loans—as well as commission income from investment trusts and insurance products, and dividend income from subsidiaries. As a regional bank, it plays a role in supporting local economic development while maintaining a stable revenue base.

Business segments are divided into four categories: banking, leasing, securities, and other operations, with banking as the core business. Subsidiaries include Daishi Lease Co., Ltd., which handles comprehensive leasing operations, and Daishi Securities Co., Ltd., which manages securities operations. Other businesses include IT-related services through Daishi Computer Service Co., Ltd., credit guarantee services through Daishi Credit Guarantee Co., Ltd., two companies handling credit card operations, and Daishi Management Consulting Co., Ltd., which provides venture capital and consulting services. Together, these entities form a comprehensive financial group service structure.

Daishi-Hokuestu Bank aims for sustainable growth while strengthening its role as a community-focused financial institution through its medium-term management plan "Step Up New Stage ~ Transformation and Growth ~." The company has established management targets from three perspectives: profitability, growth, and efficiency, positioning "top-line reform" as its most critical strategy. This strategy seeks to transform the revenue structure by improving the ratio of "loan interest income" and "non-interest income" within core business gross profit.

In priority investment areas, the bank focuses on expanding lending to small and medium-sized enterprises and consumer loans, strengthening its revenue base while fulfilling its mission to support the regional economy. The company differentiates itself by improving the ratio of small and medium-sized enterprise lending within total loan balances and enhancing the ratio of unsecured loans within consumer loan balances. Additionally, it is advancing away from traditional interest margin dependency through expansion of non-interest income, including asset management fees and corporate service revenues.

Regarding new market development, the bank established "Daishi-Hokuestu Financial Group Inc." through a management integration with Hokuestu Bank in October 2018, significantly expanding its financial network throughout Niigata Prefecture. This integration enables the provision of higher-value-added financial intermediation and information intermediation functions, aiming for early realization of its primary objective of regional contribution. The bank plans to deploy a broader range of financial services by leveraging the long-established customer trust and regional networks built by both institutions.

In technological innovation efforts, the company is advancing bold structural reforms utilizing "digitalization." The bank is pursuing initiatives centered on three pillars—"business process reform," "branch reform," and "channel reform"—to simultaneously achieve operational efficiency and improved customer convenience. Through these reforms, the company aims to respond to harsh operating conditions including population decline, prolonged negative interest rate policies, and entry by non-financial companies, while building a sustainable business model that grows together with the region.