(E03561) Stock Price

Hokuetsu Bank is a regional bank based in Niigata Prefecture that provides traditional banking services including deposits, lending, and foreign exchange operations, along with window sales of investment trusts and insurance products. Through its head office and 83 branches, the company delivers community-focused financial services. The group operates with four consolidated subsidiaries to provide comprehensive financial services.

The bank's primary customers are individuals and corporations in Niigata Prefecture. Its main revenue comes from net interest income—the spread between deposits and lending. Additionally, the company generates important non-interest income through sales commissions on investment trusts and insurance products, as well as earnings from securities investments.

The business segments are centered on banking operations and complemented by diverse financial services from consolidated subsidiaries. These include leasing operations through Hokuetsu Lease Co., Ltd.; credit guarantee services through Hokuetsu Credit Guarantee Co., Ltd. and Hokuetsu Card Co., Ltd.; credit card operations through Hokuetsu Card Co., Ltd.; and research and information services through Hokugin Economic Research Institute Co., Ltd. This structure enables the company to address a wide range of regional financial needs.

Hokuestu Bank aims to become "a bank that creates shared value with customers through optimal solutions and contributes to the development of its local community" under its 19th Long-Term Management Plan, with the final fiscal year ending March 2029. The company has set specific numerical targets of 6 billion yen in core operating profit and a capital adequacy ratio in the 8% range, and is pursuing a management strategy with unwavering focus on its home prefecture of Niigata. Even amid the challenging environment of population decline and prolonged monetary easing, the bank is working to build a sustainable revenue structure that enables continued growth.

The core of the company's differentiation strategy is "deepening solution-based sales." The bank is transitioning from traditional lending-focused operations to become a premier solution partner that addresses customer challenges. By strengthening collaboration with group companies including a leasing firm, credit guarantee company, and economic research institute, and maximizing group synergies, the bank is prioritizing the provision of high-value-added financial intermediation and information intermediation functions.

The largest initiative in new market development is the management integration with Daishi Bank. In October 2018, the company established the joint holding company "Daishi Hokuestu Financial Group" to establish a dominant market position in Niigata Prefecture. Through this integration, the bank aims to build an even stronger customer base and network, and to achieve its primary objective of early regional contribution. Building on the trust and community relationships both banks have cultivated over many years, the company plans to expand market share and business scale.

Regarding technological innovation, the bank is advancing the construction of an efficient sales promotion system and strengthening its management foundation. While pursuing operational efficiency and improved customer service through digitalization, the company is transforming toward a flexible revenue structure capable of adapting to any environmental change. Beyond traditional banking operations, Hokuestu Bank is establishing itself as a comprehensive regional financial institution through diverse financial services including investment trust and insurance product sales at branch counters.