THE FUKUOKA CHUO BANK,LTD. (E03666) Stock Price

Fukuoka Chuo Bank is a regional financial institution with its primary business base in Fukuoka Prefecture. The company provides a wide range of financial services centered on deposit and lending operations, including domestic foreign exchange services, agent services for the Bank of Japan, window sales of government bonds, securities investment trusts, and insurance products. The company is characterized by its detailed service offerings tailored to the needs of regional customers.

The company's primary customers are individuals and small-to-medium enterprises in Fukuoka Prefecture. It generates interest margin revenue by accepting deposits from these customers and providing loans to regional businesses and individuals. Additionally, sales commissions from investment trusts and insurance products, as well as fee income from foreign exchange operations, represent important revenue sources.

The company's business consists of a single banking segment with no complex business diversification. Its main business lines are clearly organized into traditional deposit and lending operations, asset management product sales, settlement services, and agency services, positioning the company as a community-focused comprehensive financial services provider.

Fukuoka Chuo Bank is implementing a growth strategy focused on improving profitability and efficiency as it approaches fiscal year 2023, the final year of its 12th Medium-Term Management Plan "BEST!" The company has set specific numerical targets: net income of 500 million yen, capital adequacy ratio of 8.50% or higher, and core expense ratio of 83.00% or lower, aiming to realize its long-term vision of becoming "an indispensable bank for the region." In fiscal year 2022, the company achieved net income of 1 billion yen, exceeding plan targets.

The core of the company's differentiation strategy lies in specialized services as a financial institution focused on small and medium-sized enterprises. Particular emphasis is placed on ICT consulting services, which support customer companies' digital transformation and operational efficiency improvements to differentiate from competitors. The company also provides specialized solutions for advanced management challenges such as business succession and M&A through online seminars and individual consultations, creating added value beyond simple fund provision.

In new market development, the company is strengthening its business base in central Fukuoka City, including relocating and consolidating the Hakata Station East Branch into the Chikushi-dori Branch to establish a large-scale hub. Since Fukuoka Prefecture ranks high nationally in the number of business establishments, and Fukuoka City's business startup rate is among the highest in major metropolitan areas, the company plans to pursue aggressive new business development leveraging these regional characteristics.

Regarding technological innovation, the company prioritizes expanding non-face-to-face channels and utilizing digital technology. In addition to traditional face-to-face sales, it is strengthening digital touchpoints through regular online consultations and web seminars. Additionally, a management integration with Fukuoka Financial Group is scheduled for October 2023, combining both companies' management resources to build a framework for providing more advanced financial services.