THE SAGA KYOEI BANK, LTD. (E03676) Stock Price

## Business Description of Saga Kyoei Bank

Saga Kyoei Bank is a financial institution that provides community-focused banking services. The company's core business includes traditional banking services such as deposit acceptance, loan execution, and foreign exchange transactions. In addition to these services, the bank offers a broad range of financial services to meet customers' asset management and insurance needs, including the sale of securities investment trusts and insurance products through its branch network.

The bank's customer base consists primarily of individuals and small-to-medium enterprises in the region, with interest income from deposits and loans serving as the primary revenue source. Through community-oriented operations, the bank secures stable earnings by providing funding to local businesses and supporting personal asset formation. The company transferred its securities-related business operations to Aizawa Securities in March 2025 to improve operational efficiency.

The company operates as a single business segment focused on banking, maintaining a streamlined business structure. This concentrated business approach enhances the bank's expertise as a regional financial institution and enables efficient management.

Saga Kyoei Bank is advancing its growth strategy with clear numerical targets under its 14th Medium-Term Management Plan for fiscal years 2024 through 2026. The bank aims to achieve a loan balance of 243 billion yen, deposit balance of 284.8 billion yen, and core business net profit of 2.5 billion yen as of March 31, 2027. Additionally, the bank plans to improve its adjusted efficiency ratio to 56.3%. Through these targets, the company demonstrates a clear strategy to expand its foundation as a regional financial institution while improving profitability.

The company prioritizes "strengthening sales capabilities" as its key investment focus, with expanding customer touchpoints as the core of its differentiation strategy. The bank aims to expand its client base through enhanced top-level sales by branch managers and requiring relationship managers to conduct 15 or more customer visits daily. By shortening loan response times and expanding non-face-to-face channels, the bank seeks to increase customer satisfaction. Through coordinated problem-solving support across headquarters and branches, the bank aims to create added value beyond basic financial services.

For new market development, the bank deepens its traditional community-focused approach, emphasizing business expansion through strengthened relationships with existing customers. The bank particularly focuses on supporting small and medium-sized enterprises through performance improvement and business restructuring assistance, strengthening support for regional businesses struggling with pandemic loan repayment burdens and rising procurement costs. Within a plan to streamline to 240 employees, the bank pursues higher-quality service delivery and contributes to regional economic revitalization.

In technological innovation, the bank promotes operational efficiency through "productivity improvement" and "organizational activation." By streamlining branch office operations and reviewing headquarters functions, the bank reduces both branch and headquarters staff while accelerating decision-making and action. The bank also plans to increase the proportion of female managers from the current 18.9% to approximately 30%, advancing organizational reform that emphasizes diversity. The bank is creating an environment where each employee can develop as a banker who "recognizes, thinks, and acts."