Shiga Bank and Senshu Ikeda Holdings agree to integrate, forming Kansai’s largest regional banking group, surpassing Kyoto FG in April 2028 (Sankei Shimbun)

The Shiga Bank and Senshu Ikeda Holdings announced that they had reached a basic agreement on a management integration targeted for April 2028. Combined total assets are expected to be approximately ¥14.2 trillion on a simple aggregate basis, while deposits and other balances are expected to total approximately ¥11.8 trillion, making the group the largest regional banking group in Kansai. The two banks will not merge, and will each maintain their respective brands and head office locations under the holding company.

In April this year, the two banks formed a capital and business alliance, the Ikeda Senshu-Shiga Alliance, and have been pursuing syndicated lending and personnel exchanges. Going forward, they aim to integrate the use of their management resources, strengthen competitiveness and contribute to the regional economy. Synergies from the integration are also expected.

The Shiga Bank will acquire shares in Senshu Ikeda Holdings held by Ariake Capital, a fund that invests in large-cap stocks, for approximately ¥36.6 billion. Its ownership interest will be approximately 12%, making it the largest shareholder. As of the end of March, consolidated total assets were approximately ¥7.669 trillion at the Shiga Bank and approximately ¥6.5959 trillion at Senshu Ikeda Holdings.

At a press conference held in Osaka, the heads of the two companies expressed their ambition to create a financial group that drives growth in Kansai through the alliance and integration.

The latest development could lead to further consolidation among regional financial institutions in Kansai.