SBI Shinsei Bank announced plans to provide approximately ¥10 billion in capital support to Shimane Bank, while Shimane Bank will simultaneously sell approximately ¥60 billion worth of securities. This will enable Shimane Bank to maintain its capital adequacy ratio at a certain level while advancing a group-wide restructuring.
Shimane Bank has announced plans to conduct a third-party allotment capital increase of approximately ¥10 billion, with SBI Shinsei Bank as the subscriber. The move is intended to contain the expansion of unrealized losses and strengthen the soundness of shareholders' equity. In addition, the sale of approximately ¥60 billion worth of securities will crystallize and dispose of unrealized losses, strengthening financial stability.
According to financial results materials, Shimane Bank's total assets decreased by approximately ¥5.622 billion between the fiscal years ended March 2025 and March 2026, while its securities holdings increased by approximately ¥13.281 billion. The planned sale will involve a substantial reassessment of securities valuations and could affect the capital adequacy ratio, but with support from the SBI Group, the domestic-standard capital adequacy ratio is expected to be approximately 8.5% at the end of fiscal 2027.
This large-scale capital injection will further deepen Shimane Bank's relationship with the SBI Group as it shifts from independence to integrated group management. Over the long term, the bank intends to pursue a recovery as a regional bank while using SBI's financial resources and network to promote sound lending and investment.
Internal governance reforms will also proceed simultaneously. Monthly compensation for Shimane Bank's chairman and president will be reduced by 30%, and the audit firm will be changed from KPMG AZSA LLC to Taiyo Audit Corporation, with the aim of strengthening the framework and improving transparency.