The Chikuho Bank , Ltd. (8398) Stock Price

Chikuho Bank is a community-focused financial group centered on banking operations. It provides a wide range of financial services including deposits, loans, securities investments, domestic remittances, trust services, and retail sales of investment trusts and insurance. Through its head office and network of 43 branches, the bank meets the financial needs of individuals and businesses while developing new business areas such as asset management, business succession planning, and digital transformation through external partnerships.

The company's primary customers are local individuals and small-to-medium enterprises. Revenue is generated mainly from net interest margins on loans and deposits, as well as fee income from investment trust and insurance sales, transfers, and commissions. Additionally, stable revenue streams come from group financial services including lease payments and credit guarantee fees.

Operations are divided into three main segments: banking, leasing, and other related services, with leasing handled by a group subsidiary. The company also provides products and services focused on regional economic development and small-to-medium enterprise support through credit guarantees, administrative outsourcing, economic research, system-related services, and businesses involving regional currencies and premium electronic shopping vouchers.

The company has announced its "Medium-Term Management Plan 2024" (April 2024–March 2027) and is pursuing growth under the slogan "A bank where people who 'move' people, towns, and communities exist." Numerical targets for fiscal year 2026 (ended March 2027) include consolidated net income of at least ¥1.5 billion, fee-based revenues of at least ¥2.36 billion on a standalone basis, core operating profit of at least ¥2.23 billion, and a capital adequacy ratio of at least 8.0%. Fiscal year 2024 results showed consolidated net income of ¥980 million, fee revenues of ¥2.136 billion, and core operating profit of ¥1.453 billion. While gaps remain against targets, the company is executing phased initiatives to close them.

Leveraging its community-focused strengths, the company is differentiating itself through consulting-led support services. Specifically, it is expanding customer visits and dedicated staff for business succession and cash flow support to small and medium-sized enterprises, while targeting fee income growth from investment trust and insurance sales and transfer fees. The company is also strengthening one-stop service capabilities by coordinating group leasing and credit guarantee services, aiming to increase revenue contributions from alliance strategies to at least ¥620 million by fiscal year 2026.

For new market development, the company plans to aggressively expand its nationwide corporate defined contribution pension plan "Anyone DC Plan," targeting 1,950 or more installations by fiscal year 2026 (981 in fiscal year 2024). Simultaneously, it is advancing revenue generation from community-focused services such as the regional collaboration project "Machi no Wa," aiming for related revenues of at least ¥180 million. These initiatives are being pursued through partnerships with external financial institutions and business operators to expand sales channels beyond Fukuoka Prefecture and to corporate customers.

In technological innovation, the company is focusing on business process reform and enhanced customer services through digital technology (DX). Specific measures include deploying online consultation windows and customer management systems to improve sales efficiency, automating back-office operations to reduce costs, while simultaneously developing talent to support consulting capabilities. The company is further complementing digital services through alliances with external partners, aiming to achieve medium-term targets by realizing both expanded fee income and strengthened operational foundations.