The Hokkoku Bank,Ltd. (E03566) Stock Price

Hokuriku Bank is a regional bank rooted in the Ishikawa Prefecture area, with traditional banking operations such as deposits and lending as its core business. The company provides a wide range of financial services to individual customers and small-to-medium enterprises in the region, from everyday banking services to business financing solutions. In addition to banking operations, the company also engages in leasing business and operates as a comprehensive financial services company.

The company's primary customers are individuals and corporations in Ishikawa Prefecture and surrounding areas, which form its operational base. The revenue structure is centered on interest income generated by lending deposits received from depositors to businesses and individuals, supplemented by various fee income and revenues from leasing operations. Through community-focused business activities, the company builds long-term customer relationships while securing a stable revenue base.

The company's business is structured around banking operations and leasing operations as its two main pillars. In banking operations, it conducts deposits, lending, foreign exchange transactions, and sales of investment trusts and insurance products, serving as regional financial infrastructure. As a corporate group, the company works in coordination with its parent company engaged in banking operations to provide a broader range of financial services.

Hokuriku Bank is pursuing a growth strategy that extends beyond traditional banking operations. The Hokuriku Financial Holdings Group, to which the company belongs, has set targets for the medium-term plan through March 2028 of consolidated ordinary profit of 22.5 billion yen and net profit of 14.7 billion yen. Notably, while expanding banking business revenue to 5.83 billion yen, the company plans to grow new business revenue to 2.25 billion yen, clearly demonstrating a commitment to revenue diversification. The company is also emphasizing shareholder-focused management, targeting an ROE of 6.0% or higher by March 2028.

The company's differentiation strategy lies in its vision to realize a "Visionary Region" while remaining a regional financial institution, with expansion plans extending beyond the Hokuriku region to include the Tokyo metropolitan area and overseas markets. In new business areas, the company has positioned consulting, cashless payments, and fund operations as priority sectors and is focusing on expanding revenues in these areas. In particular, the company is pursuing a dual approach: expanding regional finance business revenues by capitalizing on a rising interest rate environment, while achieving a stable cost structure through efficiency improvements in traditional banking operations.

In market development, the company views regional social challenges such as aging populations and economic revitalization as business opportunities. By demonstrating regional leadership and building trust, the company is transitioning from a mere financial service provider to a "bridge" connecting the community. Through disaster recovery support following the 2024 Noto Peninsula earthquake and heavy rains in the Oku-Noto region, the company is strengthening ties with the local community and developing strategies to create new business opportunities.

Regarding technological innovation, in response to rapid advances in generative AI and fintech technologies, the company is strengthening investment in digital and systems development. To address intensifying competition from new market entrants and fintech companies, the company is actively recruiting and developing specialized talent capable of handling new business areas. Alongside a review of its human resource portfolio, the company is also strengthening its governance structure and improving board effectiveness to maintain competitiveness in the evolving financial industry.