Worth reading
65In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.Direction
Mixed performance
Direction inferred from the company’s description.Scale
60
¥100 million (target net income attributable to owners of the parent for FY2028)Wording
Conditional
How definitive the wording is.Items stated in the management plan
FormulatedNet income for the current fiscal year+0.1%
基準 2,025Target2,028Hundreds of millions of yen
ROE-2,017.0pt
基準 2,025Target8％
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).The increase shown by the dotted line is calculated from the two reported figures because the company did not provide the amount of growth.
What happened to the previous planConsolidated net income: ¥3.3 billion (FY2025 target) / Ordinary income from the customer division: expanded profitability / Consolidated ROE: above 5% (medium- to long-term target) → Consolidated net income: ¥4.1 billion (FY2025 actual) / Ordinary income from the customer division: ¥2,980 million / Consolidated ROE: 5.0% (FY2025 actual)+47.2%Calculated from the two disclosed figures
Investment amount by sectorField Human Capital Investment / Amount ¥80 million (end of FY2028)
Statements about the use of capital
Payout ratio / DOE policyProgressive dividends will be the basic policy, with a payout ratio of approximately 40% as a guideline. Period covered: Sixth Medium-Term Management Plan period (FY2026–FY2028)The payout ratio is the proportion of profit paid out as dividends, while DOE is the ratio of dividends to net assets.
Key initiatives
01Deepening consulting services
02From regional finance to regional value creation
03Rebuilding core earnings
04Strengthening the management base through completion of the group reorganization
Plan assumptionsThe Bank of Japan policy rate is assumed to rise by 0.25% in each fiscal year during the Sixth Medium-Term Management Plan period and to reach 1.50% from FY2028 onward
Non-financial targetsIndicator Number of solution-support engagements (cumulative) / Target value 5,600 (up 400 from the Fifth Medium-Term Management Plan) / Timing FY2028, Indicator Cumulative amount of sustainable finance executed / Target value ¥400 billion or more / Timing End of fiscal 2028, Indicator Strategic personnel allocation / Target value 100 people / Timing End of fiscal 2028, Indicator Employees passing priority certification examinations / Target value 550 people / Timing End of fiscal 2028, Indicator Proportion of Female Officers / Target value 25％ / Timing End of fiscal 2028, Indicator Percentage of Female Managers / Target value 35％ / Timing End of fiscal 2028, Indicator Retention rate within 3 years of joining the company / Target value At least 95% / Timing End of fiscal 2028, Indicator Employee satisfaction / Target value 3.65 or more / Timing End of fiscal 2028
Risks identified by the company
Deterioration in the valuation of securities due to rising interest rates
Rising interest rates on loans
Increasing default risk
Rising deposit interest rates
Declining balances due to transfers to other banks amid interest-rate competition
Rising market funding costs
Temporary deterioration in net interest margins, net income and ROE due to merger-related costs and other factors
Approvals and licenses from the relevant authorities
| Item | Details |
|---|---|
| Plan name | Sixth Medium-Term Management Plan |
| Plan period | April 2026 to March 2029 (3 years) / FY2026–FY2028 |
| Progress against the plan | Formulated |
| Net income target | ¥4.1 billion (FY2025 actual) → Approximately ¥6 billion (FY2028 target) |
| ROE target | 5.0% (FY2025 actual) → 6% or more (with a long-term target of consolidated ROE above 8%) |
| Payout ratio / DOE policy | Progressive dividends will be the basic policy, with a payout ratio of approximately 40% as a guideline. Period covered: Sixth Medium-Term Management Plan period (FY2026–FY2028) |
| Investment amount by sector | Field Human Capital Investment / Amount ¥80 million (end of FY2028) |
| Non-financial targets | Indicator Number of solution-support engagements (cumulative) / Target value 5,600 (up 400 from the Fifth Medium-Term Management Plan) / Timing FY2028, Indicator Cumulative amount of sustainable finance executed / Target value ¥400 billion or more / Timing End of fiscal 2028, Indicator Strategic personnel allocation / Target value 100 people / Timing End of fiscal 2028, Indicator Employees passing priority certification examinations / Target value 550 people / Timing End of fiscal 2028, Indicator Proportion of Female Officers / Target value 25％ / Timing End of fiscal 2028, Indicator Percentage of Female Managers / Target value 35％ / Timing End of fiscal 2028, Indicator Retention rate within 3 years of joining the company / Target value At least 95% / Timing End of fiscal 2028, Indicator Employee satisfaction / Target value 3.65 or more / Timing End of fiscal 2028 |
| Plan assumptions | The Bank of Japan policy rate is assumed to rise by 0.25% in each fiscal year during the Sixth Medium-Term Management Plan period and to reach 1.50% from FY2028 onward |
| Key initiatives | Deepening consulting services, From regional finance to regional value creation, Rebuilding core earnings, Strengthening the management base through completion of the group reorganization |
| Results under the previous plan | Consolidated net income: ¥3.3 billion (FY2025 target) / Ordinary income from the customer division: expanded profitability / Consolidated ROE: above 5% (medium- to long-term target) → Consolidated net income: ¥4.1 billion (FY2025 actual) / Ordinary income from the customer division: ¥2,980 million / Consolidated ROE: 5.0% (FY2025 actual) |
| Risks identified | Deterioration in the valuation of securities due to rising interest rates, Rising interest rates on loans, Increasing default risk, Rising deposit interest rates, Declining balances due to transfers to other banks amid interest-rate competition, Rising market funding costs, Temporary deterioration in net interest margins, net income and ROE due to merger-related costs and other factors, Approvals and licenses from the relevant authorities |
| Publication date | 15 May 2026 |
Items this document does not state (12)
Sales TargetOperating profit targetOperating profit margin targetROIC targetTreasury share acquisition policyCost of capitalSelf-assessment of PBR and share priceTotal investment planSegment targetReason for revision or withdrawalSize of the Target MarketDate of board resolution
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 complete the scheduled January 2027 merger of 荘内銀行 and 北都銀行 and enhance their expertise by leveraging their broad geographic reach across prefectural borders and combining the know-how of both banks. It also seeks to improve management efficiency and increase capacity for risk-taking in response to the transition to an inflationary economy and a world with positive interest rates, while contributing to regional revitalization in Yamagata and Akita.
How to read this page
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