Kyoto Financial Group said it plans to realize unrealized gains on strategic shareholdings in cash and direct the proceeds to lending. Against a backdrop of rising interest rates, it set a target of reducing strategic shareholdings by ¥300 billion or more on a market-value basis by the end of March 2029.
Kyoto Financial Group's unrealized gains on strategic shareholdings total approximately ¥1 trillion, and President Doi Nobuhiro (土井 伸宏) said the gains should be realized in cash and directed to lending in an environment of rising interest rates. This could lead to a review of how its shareholdings are utilized.
In a plan announced in April, the group set a target of reducing strategic shareholdings by ¥300 billion or more on a market-value basis by the end of March 2029, and indicated that it intends to reduce them further from 2029 onward. The direction indicated is toward increasing the proportion allocated to cash realization and lending.