Worth reading
71In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Improvement
Direction inferred from the company’s description.Scale
11
Consolidated ROE (%)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedROE+3.0pt
基準 2,025Target2,028%
Each line is the climb from the baseline the document states to the target it sets. The slope is scaled against the largest climb in this document. For metrics expressed as percentages, differences are shown in percentage points (pt).
What happened to the previous planFY2025 revised medium-term plan: ordinary profit of ¥17.0 billion, net income of ¥13.5 billion, tangible equity ratio of at least 10%, gross profit from new businesses of at least ¥19.0 billion, expenses of no more than ¥34.0 billion, and a real credit cost ratio of approximately 10 bps → FY2025 forecast: ordinary profit of ¥34.0 billion, net income of ¥34.0 billion, equity ratio of 10.8%, gross profit from new businesses of ¥28.5 billion, expenses of ¥33.5 billion, and a real credit cost ratio of negative 38 bps0.0%Calculated from the two disclosed figures
Statements about the use of capital
Payout ratio / DOE policyNumerical target: not disclosed. The plan states that the company will "actively return profits to shareholders, keeping in mind the ROE target and the target equity ratio."The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Self-assessment of PBR and share priceFor the outlook as of March 2026, the company states a PBR of 1.10x, a share price of ¥1,991, and ROE of 10.9%.PBR is a measure of how many times the share price is the book value per share.
Key initiatives
01Pivot initiatives for the four existing profit centers
02Saison Project, Stage 2
03AX Project
04Building the foundations for sustainable growth
05Aligning with stakeholders
Plan assumptionsThe plan assumes an increase in the policy rate to 1.25% from April 2027. The assumed pass-through rates for contracted interest rates are 90% for loans (short-term prime rate), 80% for time deposits, and 40% for ordinary deposits.
Segment targetBusiness Community Banking / Indicator Outstanding balance of business loans / Target ¥148.0 billion at the end of FY2028, Business Direct Banking / Indicator Number of transactions with new customers / Target 150,000 transactions in FY2028, Business Real Estate / Indicator New loan and other originations / Target ¥387.0 billion in FY2028, Business Investment Real Estate Loans / Indicator New loan and other originations / Target ¥115.0 billion in FY2028, Business Loans to Large Corporates, including LBOs / Indicator New loan and other originations / Target ¥82.0 billion in FY2028, Business Total / Indicator New loan and other originations / Target ¥510.0 billion in FY2028
Non-financial targetsIndicator Participation rate in training to strengthen AI capabilities / Target 100% / Timing During the plan period, Indicator Number of AI initiatives / Target 30 initiatives / Timing During the plan period, Indicator Operational Efficiency / Target Approximately 30% improvement, equivalent to approximately 500,000 hours of workload / Timing During the plan period, Indicator Agreement rate in the compliance awareness survey / Target At least 85% / Timing During the plan period, Indicator Number of transactions with new customers / Target 150,000 transactions in FY2028 / Timing FY2028
Risks identified by the company
Contraction of the domestic market due to the declining birthrate, aging population, and population decline
The end of deflation and intensifying competition in a "world with interest rates"
Uncertainty in the global economy, including geopolitical risks, inflation, and unstable monetary policy
Consolidation among regional banks
Entry by fintech companies and companies from other industries
Tightening financial regulations
Risks associated with real estate-related lending, including real estate prices, rent trends, and the creditworthiness of borrowers
Risks in securities investments arising from higher interest rates
Reason for revision or withdrawal
As a result of implementing the 3-year period from FY2023 under "Re:Start 2025 Phase 2," all of the KPIs set under that plan are expected to be achieved. Building on these results, the company will implement this plan over the next 3 years and work to achieve the newly established KPIs.
| Item | Details |
|---|---|
| Plan name | Medium-Term Management Plan (FY2026-FY2028) |
| Plan period | 1 April 2026–31 March 2029 (3 years) |
| Progress against the plan | Formulated |
| ROE target | 10.9% (FY2025 forecast) → At least 11.0% (FY2028 plan) |
| Payout ratio / DOE policy | Numerical target: not disclosed. The plan states that the company will "actively return profits to shareholders, keeping in mind the ROE target and the target equity ratio." |
| Self-assessment of PBR and share price | For the outlook as of March 2026, the company states a PBR of 1.10x, a share price of ¥1,991, and ROE of 10.9%. |
| Segment target | Business Community Banking / Indicator Outstanding balance of business loans / Target ¥148.0 billion at the end of FY2028, Business Direct Banking / Indicator Number of transactions with new customers / Target 150,000 transactions in FY2028, Business Real Estate / Indicator New loan and other originations / Target ¥387.0 billion in FY2028, Business Investment Real Estate Loans / Indicator New loan and other originations / Target ¥115.0 billion in FY2028, Business Loans to Large Corporates, including LBOs / Indicator New loan and other originations / Target ¥82.0 billion in FY2028, Business Total / Indicator New loan and other originations / Target ¥510.0 billion in FY2028 |
| Non-financial targets | Indicator Participation rate in training to strengthen AI capabilities / Target 100% / Timing During the plan period, Indicator Number of AI initiatives / Target 30 initiatives / Timing During the plan period, Indicator Operational Efficiency / Target Approximately 30% improvement, equivalent to approximately 500,000 hours of workload / Timing During the plan period, Indicator Agreement rate in the compliance awareness survey / Target At least 85% / Timing During the plan period, Indicator Number of transactions with new customers / Target 150,000 transactions in FY2028 / Timing FY2028 |
| Plan assumptions | The plan assumes an increase in the policy rate to 1.25% from April 2027. The assumed pass-through rates for contracted interest rates are 90% for loans (short-term prime rate), 80% for time deposits, and 40% for ordinary deposits. |
| Key initiatives | Pivot initiatives for the four existing profit centers, Saison Project, Stage 2, AX Project, Building the foundations for sustainable growth, Aligning with stakeholders |
| Results under the previous plan | FY2025 revised medium-term plan: ordinary profit of ¥17.0 billion, net income of ¥13.5 billion, tangible equity ratio of at least 10%, gross profit from new businesses of at least ¥19.0 billion, expenses of no more than ¥34.0 billion, and a real credit cost ratio of approximately 10 bps → FY2025 forecast: ordinary profit of ¥34.0 billion, net income of ¥34.0 billion, equity ratio of 10.8%, gross profit from new businesses of ¥28.5 billion, expenses of ¥33.5 billion, and a real credit cost ratio of negative 38 bps |
| Reason for revision or withdrawal | As a result of implementing the 3-year period from FY2023 under "Re:Start 2025 Phase 2," all of the KPIs set under that plan are expected to be achieved. Building on these results, the company will implement this plan over the next 3 years and work to achieve the newly established KPIs. |
| Risks identified | Contraction of the domestic market due to the declining birthrate, aging population, and population decline, The end of deflation and intensifying competition in a "world with interest rates", Uncertainty in the global economy, including geopolitical risks, inflation, and unstable monetary policy, Consolidation among regional banks, Entry by fintech companies and companies from other industries, Tightening financial regulations, Risks associated with real estate-related lending, including real estate prices, rent trends, and the creditworthiness of borrowers, Risks in securities investments arising from higher interest rates |
| Date of board resolution | 24 April 2026 |
| Publication date | 24 April 2026 |
Items this document does not state (10)
Sales TargetOperating profit targetOperating profit margin targetNet income targetROIC targetTreasury share acquisition policyCost of capitalTotal investment planInvestment amount by sectorSize of the Target Market
These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.
The reasons the company gives
The company's own explanation, not something inferred from the numbers.The plan aims to achieve new KPIs over the next 3 years, building on the expected achievement of all KPIs set under the previous plan. It also reflects the operating environment, including a declining birthrate and aging population, population decline, intensifying competition in a world with interest rates, uncertainty in the global economy, and entry by companies from other industries.
How to read this page
This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
Weight is not a verdictIt measures how much this changes what the company had already told the market. It is not a view on the shares.
Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.