Mebuki Financial Group

Basic Information

Stock Code
7167
Industry
Banking
Category Detail
Banks
Prefecture
Tokyo
Establishment Year
April 2008
Listing Year
December 2013
Official Website
https://www.mebuki-fg.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Iyogin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Kyushu Financial Group, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Tsukuba Bank, The 77 Bank, Fukuoka Financial Group, Hachijuni Bank, Hokuhoku Financial Group, Yamaguchi Financial Group

Overview

Mebuki Financial Group is a major regional bank holding company established in 2008, with Joyo Bank and Ashikaga Bank as subsidiaries, supporting regional finance in the Kanto area.

Current Situation

Mebuki Financial Group had consolidated total assets exceeding 24 trillion yen and net assets of 959 billion yen in the fiscal year ended March 2022, boasting the third-largest scale among regional banks. Centered on its main banks, Joyo Bank and Ashikaga Bank, it provides deeply rooted financial services in the regional economy, primarily in Tochigi and Ibaraki prefectures. Since the management integration in 2016, it has expanded its customer base through strengthened collaboration between the two banks, improving customer convenience with measures such as discounted remittance fees and mutual ATM usage. It emphasizes digitalization and responses to decarbonization, advocating for regional revitalization and coexistence with local communities. Pursuing sustainable management, it aims for stable development of regional finance while striving to capture new growth opportunities. Moving forward, it will focus on enhancing retail services and strengthening corporate sales, with strategies centered on leveraging digital technology and environmental initiatives.

Trivia

Interesting Facts

  • Grew to third-largest regional bank scale through 2016 management integration
  • Tri-headquarters system closely tied to Mito, Utsunomiya, and Tokyo regions
  • History of implementing 8% wage increases as a local financial institution
  • Maintains and operates Joyo Bank and Ashikaga Bank brands separately
  • Gaining attention as a regional bank focused on regional decarbonization
  • Brand strengthening through integration of historic local banks
  • Pioneer in successful multiple stock swaps in the regional bank sector
  • Reputation for supporting cash flow of local commercial and SMEs
  • Actively conducts social contribution activities for regional communities
  • Strengthening and expanding credit guarantee business rooted in the region
  • Provides online financing platform for SMEs via IT

Hidden Connections

  • Formerly known as Ashikaga Holdings, it had a unique presence in Kanto finance
  • Became a model case for management integration methods among multiple regional banks
  • Strong ties with local governments and economic organizations due to regional focus
  • History of partnerships with major financial institutions like Sumitomo Mitsui Trust Bank
  • Advancing collaborations with FinTech companies through IT investments
  • Expanding regional corporate networks through decarbonization-related financing
  • Collaborating with local educational institutions to improve financial literacy
  • Group's credit guarantee company serves as a key hub for local SME support

Future Outlook

Growth Drivers

  • Expansion of corporate lending demand with regional economic recovery
  • Business efficiency and customer satisfaction improvements via digitalization
  • Increased demand for green investments amid decarbonization push
  • Demand for asset management and inheritance support in aging society
  • Strengthened financial support for local revitalization and activation
  • New service development through FinTech collaborations
  • Expansion of SME management support
  • Regional expansion of cashless payment adoption
  • Expansion of decarbonization financing and environmentally considerate products
  • Trust building through financial education and regional contributions
  • Increase in internet and smartphone banking users
  • Tailwinds from national financial policies and regional support measures

Strategic Goals

  • Become the top financial services provider in the region
  • Achieve over 50% share in online transactions
  • Raise green financing and investment ratio to over 30%
  • Enhance and popularize financial products for aging society
  • Establish business succession support system for regional companies
  • Complete digital transformation
  • Establish model of coexistence and co-prosperity with regional society
  • Innovate financial services for younger generations
  • Improve group-wide profitability and management stability
  • Enhance social evaluation through active ESG management

Business Segments

Corporate Financial Services

Overview
Offers a variety of financial products and services to corporations across a wide range of industries.
Competitiveness
Financial support capabilities tailored to diverse industries with deep regional roots
Customers
  • Small and medium-sized enterprises
  • Medical institutions
  • Manufacturing
  • Construction
  • Retail
  • Services
  • Public entities
  • Agricultural corporations
  • Real estate management companies
  • IT companies
  • Food and beverage
  • Logistics companies
  • Educational institutions
  • Travel industry
  • Financial institutions
Products
  • Working capital financing
  • Equipment investment financing
  • Consulting
  • Business succession support
  • Cash flow support
  • Guaranteed financing
  • Asset management services
  • Corporate deposits
  • Foreign exchange transactions
  • Receivables management
  • Leasing services
  • Credit guarantees
  • Financial analysis
  • Cash management
  • Overseas remittances

Securities and Asset Management Services

Overview
Addresses a wide range of needs from asset management to inheritance.
Competitiveness
Asset management services approachable for local affluent clients
Customers
  • Individual investors
  • Small and medium-sized enterprises
  • High-net-worth customers
  • Fund managers
  • Institutional investors
  • Local governments
  • Public interest corporations
  • Pension funds
  • Trust banks
  • Life insurance companies
Products
  • Stock trading
  • Investment trusts
  • Bond transactions
  • Asset building support
  • Asset management consulting
  • FX
  • Wealth management
  • IPO support
  • Inheritance planning
  • Risk management

Leasing and Credit Guarantee Business

Overview
Supports corporate management stability through equipment investment support and credit guarantees.
Competitiveness
Extensive credit guarantee track record and flexible leasing product lineup
Customers
  • Manufacturing
  • Construction
  • Transportation
  • Wholesale
  • Retail
  • Services
  • Agricultural corporations
  • Medical institutions
  • Information and communications
  • Educational institutions
Products
  • Equipment leasing
  • Operating leases
  • Credit guarantees
  • Finance leases
  • Sale and leaseback
  • Credit investigations
  • Guaranteed financing
  • Asset management

Regional Financial Support Services

Overview
Provides financial support for regional economic revitalization and sustainable development.
Competitiveness
Multifaceted financial support closely aligned with local realities
Customers
  • Local governments
  • Regional chambers of commerce
  • SME support organizations
  • Agricultural cooperatives
  • Local residents
  • Tourism industry
  • Shopping districts
  • Non-profit organizations
Products
  • Regional revitalization financing
  • Regional activation funds
  • Joint project support
  • Grant brokerage
  • Seminars and consultation desks
  • Regional event support
  • Regional economic research
  • Financial education

Digital Financial Services

Overview
Delivers highly convenient financial services leveraging digital technology.
Competitiveness
Pioneering digitalization among regional banks, enhancing customer convenience
Customers
  • Individual customers
  • Corporate customers
  • Younger generation
  • IT companies
  • Fintech providers
  • Startups
  • Local governments
Products
  • Internet banking
  • Mobile banking app
  • Online loan applications
  • Electronic payment services
  • Blockchain utilization
  • Digital asset management
  • API integration services

SME Support Services

Overview
Specialized services to strengthen SME management capabilities.
Competitiveness
Accompanying support system rooted in the local community
Customers
  • SME owners
  • Entrepreneurs
  • Venture companies
  • Industry support organizations
  • Management consultants
Products
  • Management consulting
  • Fundraising support
  • Business plan development
  • Market expansion support
  • Human resource development support

Environmental and Decarbonization Support Services

Overview
Implements financial support to promote environmental conservation and decarbonization.
Competitiveness
Pioneering environmental investment promotion as a regional financial institution
Customers
  • Corporations
  • Local governments
  • Agricultural corporations
  • Non-profit organizations
Products
  • Environmentally considerate financing
  • Decarbonization funds
  • Energy efficiency support
  • CO2 emission reduction consulting
  • Green bond issuance support

Inheritance and Asset Succession Services

Overview
Comprehensive support for smooth asset transfers and inheritance planning.
Competitiveness
Reliable support through collaboration with local experts
Customers
  • Elderly
  • Affluent individuals
  • Individual investors
  • Family-owned businesses
Products
  • Inheritance consulting
  • Estate division support
  • Gift tax measures
  • Trust products
  • Asset management

Education and Training Services

Overview
Strengthens the intellectual foundation of the regional community through financial education and human resource development.
Competitiveness
Diverse educational programs leveraging regional partnerships
Customers
  • Internal staff
  • Local residents
  • Schools
  • Corporations
Products
  • Financial literacy education
  • Employee training
  • Career support
  • Regional lectures
  • Entrepreneurship support programs

Real Estate Related Financial Services

Overview
Provides diverse financing and management services supporting the real estate market.
Competitiveness
Reliable financial support with in-depth knowledge of the local market
Customers
  • Individuals
  • Corporations
  • Real estate agents
  • Developers
Products
  • Housing loans
  • Real estate collateral financing
  • Development financing
  • Real estate management support
  • Rental guarantees

Cashless Payment Support

Overview
Support services to promote cashless adoption in the region.
Competitiveness
Flexible implementation support unique to a regional bank
Customers
  • Retail stores
  • Restaurants
  • Corporate customers
  • Individual customers
Products
  • Smartphone payment services
  • Card payment terminals
  • Merchant support
  • Points programs
  • Payment data analysis

Risk Management and Compliance

Overview
Supports risk reduction and legal compliance for sound management.
Competitiveness
Robust internal controls and swift response capabilities
Customers
  • Group companies
  • Business partners
  • Regulatory authorities
Products
  • Internal audits
  • Legal compliance support
  • Information security
  • Fraud prevention programs
  • Risk monitoring

Competitive Advantage

Strengths

  • Strong customer base rooted in the region
  • Economies of scale from multiple bank integrations
  • Rich corporate financial services
  • High regional credibility as a regional bank
  • Active promotion of digitalization
  • Comprehensive network and ATM linkages
  • Solid financial foundation
  • Diverse financial product lineup
  • Deep involvement in the regional community
  • Synergy with credit guarantee business
  • Synergies from securities and leasing subsidiaries
  • Customer convenience improvement initiatives
  • Promotion of decarbonization and ESG initiatives
  • Regional responsiveness through tri-headquarters system
  • Powerful regional economic support system

Competitive Advantages

  • Top-class sales base in southern Kanto
  • High recognition from brand integration of Joyo and Ashikaga Banks
  • Efficient management structure from business integration
  • Comprehensive financial services via diverse group companies
  • High customer density through regional focus
  • Extensive local networks and connections
  • Active participation in local revitalization and activation
  • Superior financial stability compared to other regional banks
  • Product planning tailored to the region
  • Advanced IT and digital responsiveness
  • Continuous improvement of customer services
  • High reliability as a regional financial institution
  • Proven track record in regional SME support
  • Diverse sales channels
  • Mid- to long-term strategy incorporating ESG management

Threats

  • Profit pressure from prolonged low interest rates
  • Population decline and regional economic contraction
  • Intensifying competition among regional banks
  • Decline in competitiveness from digitalization lag
  • Increased operating costs from stricter financial regulations
  • Rising credit risk
  • Geopolitical and economic uncertainties
  • Funding burden for decarbonization efforts
  • Risk of customer asset outflows
  • Intensifying competition with FinTech companies
  • Risks from new infectious diseases or disasters
  • Complications in group internal coordination

Innovations

2022: Strengthening Digital Banking

Overview
Expanded smartphone app features and improved convenience of online procedures.
Impact
Customer digital usage rate increased 25% from previous year

2022: Establishment of Decarbonization Support Fund

Overview
Launched an environmental fund to promote regional decarbonization projects.
Impact
Support for regional companies' environmental investments and improved social evaluation

2023: Introduction of AI for Loan Screening

Overview
Introduced AI into loan application screening processes to expedite approvals.
Impact
Improved customer satisfaction through shortened screening times

2021: Launch of Online Inheritance Consultation Service

Overview
Began providing online inheritance consultations by experts.
Impact
Consultation cases increased 15% from previous year

2020: Expanded Support for Cashless Payments

Overview
Strengthened support for cashless payment adoption among local stores.
Impact
Regional cashless usage rate improved by 20%

Sustainability

  • Promoting decarbonization investments for regional companies
  • Expansion of environmentally considerate financial products
  • Environmental awareness activities for the regional community
  • Promotion of paperless transactions
  • Diverse work styles and diversity promotion
  • Active participation in regional disaster prevention
  • Enhanced financial education
  • Support for green bond issuance
  • Expansion of renewable energy financing
  • Strengthened internal environmental management
  • Advancement of CSR activities
  • Strengthened compliance