THE SHIZUOKA BANK,LTD. (E03570) Stock Price

Shizuoka Bank is a regional bank that serves as the core of the Shizuoka Financial Group. The company forms a financial group together with 14 consolidated subsidiaries and 3 affiliates accounted for using the equity method, providing comprehensive financial services centered on banking operations. Its main business includes traditional banking services such as deposits and lending, as well as diverse financial services including leasing and financial instruments trading.

The company's customer base consists primarily of individuals and small-to-medium enterprises in the Shizuoka region and surrounding areas. Its revenue structure is centered on net interest income from the spread between deposits and loans, securing stable earnings by leveraging its regional business foundation. Additionally, fee income and revenues from diverse financial services through group companies form important revenue pillars.

The business segment is structured with "banking operations" as its core. Following an organizational restructuring in October 2022, six companies including Shizugin IT Solutions were integrated into the banking segment. This restructuring established a framework to provide comprehensive financial solutions including IT-related services in an integrated manner, enabling the company to deploy more holistic services in response to customer needs.

Shizuoka Financial Group, which owns Shizuoka Bank, is advancing its first medium-term management plan toward 2030 titled "Xover—Opening a New Era." The company envisions itself as a "problem-solving corporate group that creates new value for the future" and aims to achieve both improved stakeholder well-being and enhanced group enterprise value by solving challenges for communities and customers. Beyond traditional financial targets, the company has established a unique sustainability framework comprising "social impact indicators" and "engagement indicators," creating a system to quantitatively measure the effects of social value creation.

The company is deploying initiatives centered on four core strategies in priority investment areas. Under the "Regional Co-creation Strategy," Shizuoka Bank leverages the group's network to form platforms and serves as a hub connecting the region and group companies. The "Group Business Strategy" operates on the concept of "deeper, larger, and newer," ranging from deepening existing businesses to pursuing new ventures, creating a positive cycle of regional problem-solving and group revenue expansion. As a differentiation strategy, the company leverages its strength as a comprehensive financial group despite being a regional financial institution, providing problem-solving solutions that go beyond conventional financial services.

For new market development, the company plans active entry into areas creating new social value, including decarbonization, digital transformation promotion, and venture businesses anticipating industrial transformation. Human capital strategy prioritizes expanding value-creation talent, implementing human capital management through DE&I (diversity, equity, and inclusion) initiatives. By linking management strategy with human capital strategy, the company bridges gaps between its target business model and workforce capabilities, driving organization-wide transformation.

The company is executing a "Transformation Strategy" for technological innovation, making aggressive digital investments leveraging the productivity advantages gained from the new accounting system realized in the previous medium-term plan. While improving operational productivity and transforming cost structures through digital technology and data utilization, the company is accelerating offensive investments in human capital and new business areas. Through these initiatives, the company aims to develop into a comprehensive financial group that creates new social value for regional communities as a core enterprise under the holding company structure and achieves sustainable growth.