The Juroku Bank, Ltd. (E03569) Stock Price

Juroku Bank is a regional bank with its primary business base in the Tokai region, centered on Gifu Prefecture. The company operates a network of 160 branches including its head office and provides comprehensive financial services centered on deposit and lending operations. As a financial partner to the region, it offers diverse products and services to a wide range of customers from individuals to corporations.

The company's main customers are individual customers in the region and corporate customers centered on small and medium-sized enterprises. Its revenue structure is built on a stable foundation combining interest income from lending operations using deposits as the primary source, along with fee income from foreign exchange operations, bond trust services, and financial derivatives trading. Through a community-focused business strategy, the company emphasizes long-term trust relationships with customers.

The company group is composed of three business segments: banking, leasing, and other financial-related operations. Banking is the core business, with the consolidated subsidiary Juroku Lease Co., Ltd. handling leasing operations, and other affiliated companies managing specialized services including research and surveys, financial product trading, credit cards, and credit guarantees. The group is structured to meet diverse financial needs of customers across all operations.

Juroku Bank is advancing its "15th Medium-Term Management Plan" with an eye toward its 150th anniversary in 2027, targeting net profit of 12 billion yen for fiscal year 2022. The company is committed to "profitable, efficient, and sound management," aiming to improve its adjusted OHR ratio to the upper 60% range as an efficiency metric. Over the long term, the bank targets ROE of 5% or higher and a capital adequacy ratio of 10% or higher, building a sustainable growth foundation.

The company's strategic priorities consist of three pillars: "sales transformation," "operations and channel transformation," and "human resources and organizational transformation." In sales transformation, the bank emphasizes a "market-in approach" centered on customer needs, delivering in-depth consulting and fulfilling its responsibility toward sustainable regional growth. In operations and channel transformation, the bank is building a service delivery system that optimally combines in-person and non-in-person channels, improving customer convenience while enhancing productivity.

For new market development, the bank is preparing a transition to a holding company structure by October 2021, aiming to expand its business domains and advance group management sophistication. The company has established the "Juroku Bank Group SDGs Declaration" and set up an SDGs Promotion Office in April 2021, strengthening its efforts toward realizing a sustainable society. As a regional financial institution, it is building an agile management structure that contributes to regional economic vitalization while adapting to environmental changes.

In technological innovation, the bank is advancing the reconstruction of business processes through digital technology. By promoting digitalization across a wide range of operations—from back-office efficiency to customer-facing services—the company aims to create personnel capacity for growth areas and improve productivity. Through these transformations, the bank is shifting from a traditional store-centered business model to a new business model combining digital channels with in-person services.