THE NAGANOBANK,LTD. (E03684) Stock Price

Nagano Bank is a regional bank based in Nagano Prefecture, providing comprehensive financial services centered on banking operations. In addition to its head office, the company operates 51 branches and 1 sub-office throughout and outside the prefecture, offering a wide range of financial services from basic banking services such as deposits, loans, and foreign exchange to asset management and business succession support.

The company's primary customers are individuals and corporations in Nagano Prefecture, and it has built a stable customer base through community-focused business operations. Its revenue structure is centered on fund business revenue from the interest spread between deposits and loans, supplemented by various fee income and earnings from subsidiaries. With strong ties to the regional economy, the company has expanded its business alongside the growth of local enterprises.

Business segments are divided into two categories: banking operations and leasing operations. In banking operations, in addition to the company itself, Nagano Card, which handles credit cards and credit guarantees, supports the business. In leasing operations, the subsidiary Nagagin Lease operates comprehensive leasing services, providing diverse financing options for companies considering capital investments.

Nagano Bank is strengthening its earnings foundation under its "12th Medium-Term Management Plan" through March 2025, with clearly defined numerical targets. The bank aims to achieve net income of 1.5 billion yen and a capital adequacy ratio of approximately 9.5%, while shifting its revenue structure to emphasize fee-based income. By increasing the ratio of service revenue to approximately 20%, the bank seeks to establish a stable earnings base that can withstand low interest rate environments.

The bank's differentiation strategy centers on "demonstrating its true value as a comprehensive financial services provider," with a focus on consulting-first customer support. For corporate clients, it provides problem-solving assistance tailored to their business cycles, while for individual clients, it implements total life management that comprehensively supports financial planning. Leveraging the combined strength of the Nagano Bank Group, the bank is strengthening coordination with affiliated companies including Nagano Card and Nagin Lease, in addition to the bank itself, to build a framework that addresses diverse financial needs.

In developing new markets by leveraging its community-focused characteristics, the bank plans to expand startup and second-business support to a cumulative 450 clients and business succession and M&A support to a cumulative 800 clients. The bank demonstrates a commitment to stronger engagement with regional communities, contributing to regional economic growth and development through town development support, tourism promotion, and environmental conservation initiatives. With an eye toward the full recovery of tourism, a major industry in Nagano Prefecture, the bank is actively pursuing new business opportunities including decarbonization, energy efficiency improvements, and IT adoption support.

In responding to technological innovation, the bank positions "DX promotion and business reform" as a key strategic priority, accelerating business transformation through digital technology. The bank is enhancing non-face-to-face channels while simultaneously improving customer satisfaction and productivity. It is also investing in developing highly specialized talent and strengthening organizational structures to implement comprehensive consulting. Through these measures, the bank aims to improve its overhead ratio (OHR) to approximately 80% and establish an efficient management structure.