THE BANK OF FUKUOKA, LTD. (E03591) Stock Price

Fukuoka Bank is the core subsidiary of Fukuoka Financial Group and provides comprehensive financial services with Fukuoka Prefecture as its primary business base. The company operates through an extensive network including its head office, 165 branches, 4 sub-branches, and 8 overseas representative offices. It engages in traditional banking operations such as deposits, lending, and foreign exchange services. The company also works with 11 consolidated subsidiaries to provide guarantee services and debt collection services.

The company's primary customers are individuals and small-to-medium enterprises in Fukuoka Prefecture, and it adopts a community-focused business strategy. Its revenue structure is primarily built on net interest income from the spread between deposits and lending, supplemented by fee income and earnings from affiliated companies. As a regional bank, it supports local economic development while securing stable revenues.

The company group's business is divided into banking operations and other operations, with banking as the core business. In other operations, subsidiaries such as Fukugin Guarantee and Fukuoka Debt Collection handle credit guarantee and debt collection services, while FFG Card operates credit card services, and the group also provides various administrative services and system development. Through these related businesses, the company expands comprehensive financial services to customers and diversifies its revenue base.

Fukuoka Bank, a subsidiary of its parent company Fukuoka Financial Group, is working to realize its 2030 long-term vision of becoming "The Best Regional Bank that contributes to the growth of all stakeholders through finance and consulting." Under the Group's 7th Medium-Term Management Plan (2022-2025), the bank is pursuing sustainable growth through digital transformation and fundamental reform of its existing business model as the core of a wide-reaching regional financial group covering all of Kyushu.

The bank's priority investment areas are strengthening personal asset formation support and corporate solutions services. Recognizing the new NISA program launching in 2024 as an opportunity, it is rolling out comprehensive asset formation support through integrated banking and securities services with FFG Securities and building a framework to provide total life consulting. In the corporate sector, it is advancing equity-related businesses such as business succession, M&A, and venture development, while promoting services for semiconductor industry companies as part of Kyushu's industrial revival through group-wide coordination.

To establish new revenue streams, the bank plans full-scale deployment of BaaS (Banking as a Service) operations centered on "Minna no Ginko," a digital bank launched in 2021. In May 2023, it established "FFG Industries," a general trading company, and entered the trade intermediation business in the metal processing industry, accelerating expansion into business areas beyond traditional banking. Additionally, the planned operational integration with Fukuoka Chuo Bank in October 2023 aims to enhance expertise in small and medium-sized enterprise finance and maximize synergy effects.

On the technology front, the bank is promoting a channel shift from physical branches to online services, centered on a personal banking app and corporate portal to be released in fiscal 2023. Branches are being equipped with advanced ATMs, remote service windows, and web service corners to enable efficient lean staffing, while repositioning sales staff to focus more on consulting services. Through digital tools such as SFA (Sales Force Automation), the bank aims to improve customer information sharing and sales productivity, delivering high-quality solutions tailored to regional characteristics.