kansai Mirai Financial Group, Inc. (E33701) Stock Price

Kansai Mirai Financial Group is a financial holding company that operates banking services primarily in the Kansai region. The company is centered on two regional banks—Kansai Mirai Bank and Minato Bank—and provides traditional banking services including deposits, loans, and foreign exchange operations. In 2019, Kansai Urban Bank and Kinki Osaka Bank merged to establish Kansai Mirai Bank. The group now operates with 16 consolidated subsidiaries and offers a broad range of financial services.

The company's primary customers are individuals and small-to-medium enterprises in the Kansai region, with a focus on community-based business operations. Revenue is generated primarily from net interest income (the spread between lending and deposit rates) and various fee income from banking operations, which serve as stable revenue sources. The company secures revenue by supporting local business growth and meeting capital needs through lending activities rooted in the regional economy.

The business is divided into three segments: banking, leasing, and other operations. In banking, Kansai Mirai Bank and Minato Bank handle core operations including deposits, loans, and foreign exchange, while subsidiaries provide complementary credit guarantee services. The group also engages in leasing, investment, and management consulting services, creating a structure that addresses diverse financial needs of customers across the entire group.

Through its Second Medium-Term Management Plan, Kansai Mirai Financial Group aims to undertake fundamental transformation from a traditional financial institution. The Group has set a target to improve its return on equity (ROE) to approximately 5% by fiscal year 2024, while increasing its fee income ratio from the current approximately 20% to 25%. This shift is designed to move away from a revenue structure dependent on interest income and establish a stable earnings base built on high-value-added services.

The core of the Group's differentiation strategy lies in transitioning to "customer-centric business." To address diverse customer needs—such as "growing assets," "expanding business," and "planning succession to the next generation"—the Group is transforming its business model from traditional product sales to solution-oriented consulting services. Simultaneously, leveraging operational reform expertise from the Resona Group, the Group is pursuing significant efficiency improvements, reducing its cost-to-income ratio from 79.5% in fiscal year 2019 to the low 60% range by fiscal year 2024.

The Group is actively supporting the Kansai economy affected by the COVID-19 pandemic. It has established a "Local Business Support Team" to strengthen funding support and business continuity assistance for small and medium-sized enterprises on a group-wide basis. Through emergency support financing and weekend consultation services, the Group fulfills its social mission as a regional financial institution while maintaining and expanding its customer base.

Regarding technological innovation, the Group is focusing on creating new financial services utilizing AI (artificial intelligence) and fintech (financial technology). The strategy employs digital technology to improve operational efficiency, allowing human resources to concentrate on higher-value-added consulting services. Through these initiatives, the Group aims to evolve into a financial group recognized as "indispensable" in the Kansai region.