As the interest-rate environment undergoes a transition, bank stocks have become more readily bought, while shareholder benefits are drawing increasing attention, particularly at the megabanks. Regional financial institutions, including regional banks in Kyushu, are also becoming more active.
In the 2026 stock market, bank stocks have been leading the market amid expectations of further Bank of Japan rate hikes, with the largest companies by market capitalization, including Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group, at times competing for the top spot. Rising long-term interest rates have made bank stocks more readily bought, and this trend has become increasingly pronounced. Buying has spread across the banking sector, including regional banks, while shareholder-return trends are also attracting attention. Ahead of the shareholder benefit eligibility date, interest is growing in benefits such as local specialties and gift certificates.
Domestic bank lending increased year on year for 15 consecutive months through July this year. Demand for funds for capital investment, as well as IT and human-resources investment, has pushed up funding needs, and regional banks have also maintained high growth rates. The Bank of Japan raised its policy rate to 1.0%, signaling expectations of additional rate hikes ahead. While higher lending rates will improve banks’ earnings environment, their investments in government and municipal bonds require attention.
Capital investment is active in Kyushu, where a broad range of growth sectors, including AI, semiconductors and GX, are expected to be eligible for support under the government’s regional strategy. The presence of regional banks, including The Miyazaki Bank, is growing, led by Fukuoka Financial Group and Nishi-Nippon Financial Holdings. The Miyazaki Bank announced a new medium-term management plan, setting out a strategy to integrate its physical branches with digital services and targets for ROE and an improved capital adequacy ratio.
The Miyazaki Bank has set a 40% payout ratio target and introduced a new shareholder benefit program. Shareholders holding at least 500 shares for one year or more will be eligible to receive regional benefits worth ¥2,000, while those holding at least 1,000 shares and 3,000 shares will receive benefits worth ¥4,000 and ¥8,000, respectively. Benefits are expected to include Miyazaki beef, Jitokko chicken, local specialties and sports experiences.