Sustainable growth under the Medium-Term Management Plan “Challenge”

「親会社株主に帰属する四半期純利益は前第１四半期連結累計期間比23億円増加し、82億円となりました。」

「To realize its long-term vision, the bank formulated the new Medium-Term Management Plan “Make the HOKKAIDO Way 1st stage: Creating the ‘Way’ That Does Not Yet Exist” as the first 3-year stage, based on the brand slogan announced in December 2025 and the following 5 overall strategies, with the aim of creating a bright future together with local communities by uniting the entire group.」

「Ordinary profit increased by ¥6.6 billion to ¥18.3 billion compared with the previous interim consolidated accounting period, while interim net income attributable to owners of the parent increased by ¥4.1 billion to ¥12.5 billion.」

「Net income attributable to owners of the parent increased year on year, achieving ahead of schedule the fiscal 2025 plan, the final year of the Medium-Term Management Plan. ROE and core OHR, which are long-term management targets, also achieved both the fiscal 2025 plan and the long-term targets.」

「Ordinary profit increased by ¥11.7 billion to ¥11.7 billion compared with the previous interim consolidated accounting period, while interim net income attributable to owners of the parent increased by ¥1.8 billion to ¥8.4 billion.」

「Net income attributable to owners of the parent ¥12.8 billion (¥3.1 billion) ¥17 billion Capital adequacy ratio (consolidated) 14.42% (2.64%) Approximately 14% ROE (consolidated) 3.03% (0.68%) Approximately 4% Core OHR (consolidated) 74.94% (△2.41%) Approximately 70%」

「From fiscal 2023, the bank launched the Medium-Term Management Plan “Challenge for New Growth: Sustainable Growth Together with Customers and the Region” (April 2023 to March 2026).」

「Ordinary profit and net income, the profitability targets, exceeded the previous year partly because of expense reductions. Per-employee productivity also improved from the previous year. The capital adequacy ratio, the financial soundness target, increased slightly year on year and remained at a high level. Average loans outstanding exceeded the fiscal 2022 target, driven by growth in lending to small and medium-sized companies in Hokkaido and other factors.」

「Under its new management philosophy, the bank launched the new Medium-Term Management Plan “Deepening Co-Creation: Aiming to Be the Most Trusted Partner of Customers and the Region” (April 2020 to March 2023). It set out the following 4 objectives: ① increase market share by thoroughly putting customers first and deepening understanding of customers’ businesses; ② increase corporate and individual service revenue by strengthening consulting; ③ develop highly skilled human resources; and ④ offset declining revenue caused by lower yields through revenue growth and cost reductions driven by efficient approaches, thereby creating a stronger organization.」

「The group had set management targets for the fiscal year in question of ordinary profit of ¥23.5 billion, net income attributable to owners of the parent of ¥16 billion and a capital adequacy ratio of approximately 12%. However, because interest rates had fallen substantially below the assumptions made when the Medium-Term Management Plan was formulated, partly due to the prolonged negative interest rate policy, the profit-related targets were revised to standalone ordinary profit of ¥15 billion, standalone net income of ¥10.5 billion and per-employee productivity of ¥3.822 million, and group ordinary profit of ¥15.5 billion and group net income of ¥10.3 billion.」

「The Medium-Term Management Plan “Co-Creation: Toward a New Century Together with the Region and Our Customers,” announced by the bank in March 2017, adopted “thoroughly putting customers first and creating shared value with customers” as its basic policy, and identified “discovering customers’ latent needs and providing optimal services” as one of its basic strategies.」

「Based on the Medium-Term Management Plan “Co-Creation: Toward a New Century Together with the Region and Our Customers” (April 2017 to March 2020), the bank set the following targets for the fiscal year ending March 2020 as management indicators for assessing its standalone profit, productivity and financial soundness: ordinary profit of ¥23 billion, net income of ¥16 billion, per-employee productivity of ¥5.695 million, a capital adequacy ratio of approximately 12%, average deposits of ¥8.79 trillion including negotiable certificates of deposit, and average loans outstanding of ¥6.5 trillion.」

「The Medium-Term Management Plan “Co-Creation: Toward a New Century Together with the Region and Our Customers,” announced by the bank in March 2017, adopted “thoroughly putting customers first and creating shared value with customers” as its basic policy, and identified “discovering customers’ latent needs and providing optimal services” as one of its basic strategies.」

「In March 2017, the bank announced the Medium-Term Management Plan “Co-Creation: Toward a New Century Together with the Region and Our Customers” (April 2017 to March 2020). Under the plan, it set the following standalone management targets for the fiscal year ending March 2020: ordinary profit of ¥23 billion, net income of ¥16 billion, per-employee productivity of ¥5.695 million, a capital adequacy ratio of approximately 12%, average deposits of ¥8.79 trillion including negotiable certificates of deposit, and average loans outstanding of ¥6.5 trillion.」

「Based on the Medium-Term Management Plan “Challenge: Creating New Value in Hokkaido and Moving to a Stage of Growing Together,” whose final fiscal year was the fiscal year ending March 2017, the bank sought to generate synergies between “Hokkaido’s potential” and “the bank’s strengths and distinctiveness” so that Hokkaido and the bank could develop together.」