Concordia Financial Group

Basic Information

Stock Code: 7186
Industry: Banking
Category Detail: Banks
Prefecture: Tokyo
Establishment Year: April 2016
Listing Year: April 2016
Official Website: https://www.concordia-fg.jp
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Iyo Bank Holdings, Shizuoka FG, Kyoto Financial Group, Mebuki Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, The 77 Bank, Fukuoka FG, Hachijuni Bank

Overview

Concordia Financial Group is one of the largest regional bank groups in the Tokyo metropolitan area, established in 2016, with subsidiaries including Yokohama Bank and Touhin Bank, providing community-based financial services as a leading company in the banking industry.

Current Situation

Concordia Financial Group achieved consolidated total assets of approximately ¥18.9279 trillion and net profit of approximately ¥46.5 billion in the fiscal year ended March 2023, boasting one of the largest scales among regional bank groups in Japan. It holds major subsidiaries such as Yokohama Bank, Touhin Bank, and Kanagawa Bank, maintaining deep involvement in the regional economy while striving to enhance profitability. In 2023, it made Kanagawa Bank a wholly-owned subsidiary, further expanding the group's business foundation. Moving forward, it plans to strengthen support for local SMEs and expand financial services for corporate clients, while focusing on the utilization of digital technologies and DX initiatives. It is also scheduled to change its name to Yokohama Financial Group in 2025, aiming to enhance brand power and maximize the effects of business integration. To achieve sustainable management, it is strengthening initiatives related to environment, society, and governance (ESG), and in the medium to long term, it will continue to promote regional economic revitalization and diversification of group earnings.

Trivia

Interesting Facts

A relatively new regional bank group formed through business integration in 2016.
Known as one of the largest regional bank groups in the Tokyo metropolitan area.
Established following the 2014 agreement on business integration between Yokohama Bank and Touhin Bank.
Expanded the group by making Kanagawa Bank a wholly-owned subsidiary in 2023.
Parent company approved by the Financial Services Agency as a bank holding company.
Constituent of the Nikkei 225 and JPX-Nikkei 400 Index.
Head office located on the 34th floor of Tokyo Nihonbashi Tower.
Multiple subsidiaries and affiliates provide a wide range of financial services.
Scheduled to change name to Yokohama Financial Group in 2025.
President and Representative Director is Tatsuya Kataoka (former President of Yokohama Bank).

Hidden Connections

Builds strong ties with local companies and government through subsidiaries.
Equity-method affiliates include companies outside the financial sector.
Contributes to revitalizing the broader economic zone through growth support for regional SMEs.
Attracts attention from domestic and international investors as a Nikkei 225 constituent.
Utilizes holding company structure to integrate diverse financial services.
Successive presidents often concurrently serve as chairmen of the National Bankers Association.
Pursuing an aggressive M&A strategy for subsidiaries since 2023.
Advancing fusion of in-person and online transactions through DX initiatives.

Future Outlook

Growth Drivers

Recovery in regional economy and increasing demand for SME support.
Business efficiency and customer convenience improvements through digital technology adoption.
Group scale expansion strategy via M&A.
Expansion of ESG investments and rising social responsibility awareness.
Need for service diversification amid intensifying regional bank competition.
Increasing demand for senior-focused financial products responding to population aging.
Recovery in corporate funding needs and growth of client companies.
Expansion of financial platforms to regional financial institutions.
Enhanced brand value through strengthened regional community ties.
Long-term trust building through sustainability-focused management.

Strategic Goals

Achieve over 80% DX ratio for regional financial services.
Improve brand recognition as Yokohama Financial Group.
Increase group consolidated profits by 1.5 times current levels.
Expand ESG investment portfolio and reduce environmental impact.
Actively participate in regional economic revitalization projects.
Maintain customer satisfaction above national regional bank average.
Create new financial services fusing digital and physical channels.
Enhance cybersecurity and advance data protection.

Business Segments

Corporate Lending and Finance

Overview

Provides funding and guarantee services to diverse corporate clients in the region.

Competitiveness

Flexible lending decisions and rapid review processes based on deep regional ties

Customers

SMEs
Local Large Companies
Startups
Government and Municipalities
Real Estate Developers

Products

Equipment Finance Loans
Working Capital Loans
Regional Revitalization Funds
Real Estate Collateral Loans
Trade Guarantee Services

Asset Management and Securities Services

Overview

Offers a variety of financial products to meet customers' asset building and management needs.

Competitiveness

Broad lineup of financial products as a comprehensive financial group

Customers

High-Net-Worth Individuals
Corporate Clients
Pension Funds
Corporate Retirement Benefit Management
Investors

Products

Asset Management Advisory
Pension Fund Management
Stock and Bond Trading
Real Estate Investment Trusts
Risk Management Services

Settlement and Credit Guarantee Services

Overview

Deploys settlement and guarantee services to revitalize the regional economy.

Competitiveness

Flexible responses leveraging the regional bank network

Customers

SMEs
Local Retailers
Affiliated Financial Institutions
Public Entities
Online Businesses

Products

Guarantee Programs
Various Settlement Services
Electronic Money Support
Credit Guarantee Business
Direct Debit Services

Financial DX and System Services

Overview

Supports the efficiency of financial operations with cutting-edge IT technologies.

Competitiveness

Development capabilities responsive to group synergies and customer needs

Customers

Group Banks
Regional Financial Institutions
Corporate Clients
Fintech Companies
Government Agencies

Products

Online Banking Platforms
Corporate Cloud Services
Settlement Solutions
API Integration Services
Data Analytics Services

Competitive Advantage

Strengths

One of the largest regional bank groups in the Tokyo metropolitan area
Comprehensive capabilities offering diverse financial services
Strong customer base rooted in the region
Solid capital base and stable profitability
Synergy effects from integrating multiple banks
Business efficiency improvements through adoption of the latest digital technologies
Business diversification through diverse subsidiaries and affiliates
Deep understanding of the regional economy and rapid responsiveness
Advanced financial services for corporate clients
Specialized structure in investment and asset management

Competitive Advantages

Broad deployment capabilities from integrating Yokohama Bank, Touhin Bank, and Kanagawa Bank
Top-class total assets among regional banks
High credibility and customer satisfaction rooted in the region
Achieved cost reductions and profit growth through business integration
Provision capabilities for advanced digital financial services
Comprehensive financial services rollout via diverse subsidiary network
Stable holding company structure approved by the Financial Services Agency
Strong ties with local companies and government
Deployment of high-quality asset management and securities services
Flexible service development and rapid decision-making structure

Threats

Performance pressure from low regional economic growth
Intensifying competition with major city banks and emerging fintech firms
Weakening profit base due to declining interest rates
Shrinking customer base from population decline and aging
Business restrictions and cost increases from strengthened financial regulations
Impacts from natural disasters and geopolitical risks
Increasing cybersecurity risks
Rising non-performing loans from deteriorating credit risks
Competitive disadvantage from delays in digital transformation
Asset valuation fluctuations due to global economic uncertainty
Reduced growth opportunities from shrinking regional financial markets

Innovations

2023: Full acquisition of Kanagawa Bank

Overview: Made Kanagawa Bank a wholly-owned subsidiary through tender offer and squeeze-out.
Impact: Contributes to strengthening the group's business foundation and expanding regional market share.

2024: Enhancement of digital banking platform

Overview: Major overhaul of mobile app and online banking functions.
Impact: Contributes to improved customer convenience and cost reductions.

2023: Launch of DX support services for regional SMEs

Overview: Promoting SME digitalization through financial and accompanying support.
Impact: Contributes to loan expansion and regional economic revitalization.

2025: Name change to Yokohama Financial Group

Overview: Planned to unify branding and maximize business integration effects.
Impact: Expected to improve customer recognition and strengthen brand value.

Sustainability

Implementation of programs supporting sustainable regional economic development
Promotion of ESG investments and loans with environmental considerations
Promotion of paperless operations through digitalization
Initiatives to enhance workforce diversity and inclusivity
Active participation in regional social contribution activities
Strengthening cybersecurity and advancing information protection