The Eighteenth Bank,Limited (E03593) Stock Price

The Juhasachi Bank Group is a regional bank based in Nagasaki Prefecture that provides comprehensive financial services centered on deposit and lending operations. The company operates as a group of seven companies in total—the bank itself plus six subsidiaries—delivering financial services deeply rooted in the local community.

The group's primary customers are individual residents and small-to-medium enterprises in the region. Revenue is primarily generated from interest rate spreads between deposits and loans. The bank also engages in domestic and foreign exchange operations, securities investment activities, and other services to secure fee-based income. It provides ancillary services such as bond trusteeship and agency services, working to diversify its revenue streams.

Business segments are organized around banking as the core operation, supplemented by leasing, guarantee, and other business divisions. The leasing division offers lease services for movable assets and various rights, while the guarantee division handles debt guarantees related to housing finance and consumer finance. Through these related businesses, the group has established a framework to address a wide range of financial needs in the region.

Eighteenth Bank is advancing business model innovation as a regional financial institution through its medium-term management plan "18 Innovation Plan ~ 'Change & Create'." The plan sets numerical targets for fiscal 2020 of net income of 3 billion yen or more and a capital adequacy ratio of 10% or more, aiming to simultaneously achieve regional revitalization and improved profitability. Under its corporate philosophy of "Together with our communities," "For our customers," and "With sincerity," the company is strategically establishing its position as the leading bank in Nagasaki Prefecture.

In priority investment areas, the bank is focusing on strengthening customer-centric sales operations. For corporate clients, it is deploying issue identification through business viability assessments and high-value solution support, while actively pursuing selective lending and risk-taking in anticipation of increased tourism demand from the opening of the Shinkansen line. For individual clients, the company has adopted a strategy to contribute to sound asset formation by providing optimal financial services tailored to life stages and supporting improved financial literacy in the region.

In new market development, the bank is actively participating in unique projects leveraging regional expertise and know-how. It is strengthening initiatives in high-impact economic sectors including regional redevelopment, renewable energy projects, and tourism-related businesses, serving as a catalyst for regional revitalization. Additionally, the company is creating sales resources through structural reform and streamlining its organization to expand customer touchpoints and strengthen sales capabilities.

In response to technological innovation, the bank is advancing non-face-to-face channel innovation through digitalization of face-to-face channels and alliance building with FinTech companies. The company is thoroughly implementing operational efficiency improvements and business reforms, reviewing lending and credit assessment systems and expanding branch manager decision-making authority to foster a positive risk culture. Merger discussions with Fukuoka Financial Group are also underway, with the aim of further regional economic revitalization and enhanced corporate value upon integration.