Daiyon Hoketsu Financial Group

Basic Information

Stock Code: 7327
Industry: Banking
Category Detail: Banks
Prefecture: Niigata Prefecture
Establishment Year: October 2018
Listing Year: October 2018
Official Website: https://www.dhfg.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Iyogin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki FG, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank

Overview

Daiyon Hoketsu Financial Group is a bank holding company established in 2018, based in Niigata Prefecture. It was formed by the integration of Daiyon Bank and Hoketsu Bank, and is growing as a major player in regional finance.

Current Situation

Daiyon Hoketsu Financial Group achieved consolidated net profit of 17.768 billion yen, net assets of 415.42 billion yen, and total assets of 10.51795 trillion yen in the fiscal year ended March 2023, building a stable financial base. Its core regional banking business has expanded community-focused services following the establishment of Daiyon Hoketsu Bank, maintaining top-class deposit volumes in Niigata Prefecture. Following the 2021 bank merger, it is streamlining branches while focusing on regional revitalization support and financing for small and medium-sized enterprises. At the same time, it is promoting digital transformation to strengthen its competitiveness as a regional financial institution. Additionally, with plans for a management integration with Gunma Bank in spring 2027, it aims for further scale expansion and improved management efficiency, drawing attention as a pioneer in regional bank reorganization. It also incorporates considerations for the environment and local communities into its management policies, pursuing sustainable growth. Through these initiatives, it is implementing strategies to enhance competitive advantages in the future regional financial market.

Trivia

Interesting Facts

Daiyon Hoketsu Financial Group is a rare case of merging two banks within three years of establishment.
Its management integration plan with Gunma Bank is attracting industry attention as a pioneer in regional bank reorganization.
Its head office is located in Chuo-ku, Niigata City, Niigata Prefecture, serving as the financial hub of the region.
The corporate color of deep blue symbolizes the Sea of Japan and the Agano River in the region.
Initially registered in Nagaoka City, the head office location has been changed to Niigata City.
The group includes diverse financial companies such as credit guarantees, securities, leasing, and card companies.
Through branch consolidation, it has established an efficient management structure while providing ongoing financial services to the region.
It is a rare holding company that owns the top two banks by deposit volume among regional banks.
The holding company was established in 2018 with approval from the Financial Services Agency and Kanto Finance Bureau.
Chairman Fujio Namiki is highly regarded in the regional financial industry.
It has a dedicated regional revitalization department, making economic activation part of its business model.
It provides many regionally focused financial products, contributing to strengthening Niigata Prefecture's economic foundation.
The group logo incorporates images of Niigata's terrain, rice ears, and rivers.
The management integration plan aims for realization in spring 2027, with preparations underway.
Numerous affiliates contribute to business diversification and strengthening of revenue base.

Hidden Connections

The management integration with Gunma Bank symbolizes regional financial reorganization and represents an important move toward cooperation among regional banks.
Strong ties with local Niigata economic organizations and local governments form the foundation of regional contributions.
Support for SMEs is closely linked through diverse financial services such as securities, leasing, and credit guarantees.
Digital transformation initiatives enable advanced IT services despite being a regional bank.
Group card companies play a key role in promoting cashless society in the region.
The regional revitalization department also contributes to youth support and job creation in the local area, with broad activities beyond finance.
Environmentally conscious management is evaluated from an ESG investment perspective and attracts attention in the regional financial sector.
Personnel changes in management hold the key to maintaining trust in regional finance and achieving sustainable growth.

Future Outlook

Growth Drivers

Economies of scale from management integrations among regional banks
Expansion of financial services through regional digitalization
Penetration of strengthened SME support and regional economic revitalization measures
Card business expansion amid cashless society progress
Increased ESG demand from rising environmental and social issue awareness
Operational efficiency and quality improvements through digital talent development
Customer base expansion through diversified financial products
Contributions to local economy through strengthened regional revitalization support
Opportunities for new service launches by adapting to legal reforms
Advanced customer management and marketing through data utilization
Expansion of services for aging society
New customer acquisition from growing regional migration

Strategic Goals

Full implementation of management integration with Gunma Bank and maximization of synergies
Further increases and stabilization of asset scale and net profit
Widespread adoption of digital financial services across the region
Achieve top-class ESG ratings through sustainability management
Establish leading position in regional revitalization support
Strengthen revenue base through diversified financial services
Build comprehensive support system to improve customer satisfaction
Promote innovation through human resource development and organizational strengthening
Continuously strengthen sustainable social contribution activities to the regional community
Build governance flexible to changes in financial regulations and laws

Business Segments

SME Financial Support

Overview

Provides diverse financial services and management support to regional SMEs to promote growth.

Competitiveness

Strong local credibility and extensive lending expertise

Customers

Local SMEs
Manufacturing
Retail
Services
Agricultural corporations
Tourism
Construction
Food and beverage
Information and communications
Medical corporations

Products

Equipment investment loans
Working capital financing
Credit guarantees
Cash flow support
Corporate deposit products
Foreign exchange services
Business rehabilitation support
Fundraising consulting
Asset management advice
Financial advisory

Large Corporate Transactions

Overview

Provides advanced financial solutions to large corporations, supporting the foundation of the regional economy.

Competitiveness

Advanced financial expertise and comprehensive service capabilities

Customers

Major manufacturers
Local governments
Public works related
Universities and research institutions
Medical institutions
Logistics companies
Energy related
IT companies
Real estate operators
Trading companies

Products

Large-scale loans
Project finance
Asset management
Business succession support
Fund management services
FX risk management
Corporate cards
Corporate pension management
Loan guarantees
Corporate banking

Securities Trading Services

Overview

Provides securities services to meet diverse investment needs, supporting asset building.

Competitiveness

Meticulous investment support with a regional focus

Customers

Individual investors
SMEs
Asset management companies
Pension funds
Fund managers
Real estate investment corporations
Public institutions
Law firms
Accounting firms
Financial consultants

Products

Stock trading services
Investment trust sales
Bond trading services
Investment advice
Private banking
Securities underwriting
Asset management support
Risk management services
Seminars
Market information provision

Leasing Services

Overview

Supports corporate equipment investments through leasing services for a wide range of equipment.

Competitiveness

Customization and flexibility tailored to regional companies

Customers

Manufacturing
IT industry
Logistics companies
Medical institutions
Construction
Retail
Food and beverage
Agricultural corporations
Services
Educational institutions

Products

Comprehensive leasing products
Equipment leasing
IT equipment leasing
Vehicle leasing
Medical equipment leasing
Office equipment leasing
Rental services
Maintenance services
Finance leases
Operating leases

Credit Guarantee Operations

Overview

Provides credit guarantees and reinsurance services to support SME fundraising.

Competitiveness

Comprehensive guarantee network rooted in local trust

Customers

SMEs
Sole proprietors
Local governments
Financial institutions
Chambers of commerce
Public guarantee funds
Credit unions
Labor unions
NPOs
Regional promotion groups

Products

Loan guarantees
Credit enhancement services
Reinsurance products
Debt resolution support
Guaranteed loan products
Risk assessment consulting
Credit information sharing
Business continuity support
Screening agency services
Guarantee fee collection

IT Solution Provision

Overview

Provides IT-related services to support digitalization of the group and regional companies.

Competitiveness

Advanced technology specialized in finance with extensive track record

Customers

Group companies
SMEs
Financial institutions
Government offices
Educational institutions
Medical corporations
Logistics companies
Manufacturing
Retail
Services

Products

System development
Network construction
Operation and maintenance
Cloud services
Security measures
Data analysis support
IT consulting
Financial systems
Business efficiency tools
API integration services

Career Support Services

Overview

Deploys career support and human resource services aimed at promoting local employment.

Competitiveness

Extensive local network and specialized expertise

Customers

Local youth
Local companies
Educational institutions
Local governments
Job seekers
Vocational training institutions
Job changers
Companies employing disabled persons
Child-rearing generations
Seniors

Products

Job placement support
Job introduction
Staffing services
Training services
Career counseling
Local employment promotion
Job matching
Vocational training programs
Support for disabled persons
Support for women's advancement

Competitive Advantage

Strengths

Strong credibility in regional finance
Stable net profit and asset scale
Diversified financial services
High deposit volumes in home region
Proactive management integration strategy
Advanced digitalization framework
Diversification of group affiliates
Deep contributions to regional economy
Reliable customer base
Effective cost management
Comprehensive risk management
High brand recognition
Sound capital policy
Experienced management team
Clear mid- to long-term growth vision

Competitive Advantages

Synergy effects from second regional bank integration
Scale expansion through management integration with Gunma Bank
Strengthened regional-focused financial services
Flexibility in multi-business deployment as a financial holding company
Improved convenience through active introduction of digital technology
Comprehensive customer coverage with wide range of financial products and services
Contributions to economic revitalization through regional revitalization department
High responsiveness and trust for regional SMEs
Building long-term trust with clients
Established comprehensive risk management system
Extensive branch and ATM network
Enhanced brand power through strengthened ties with local community
Focus on human resource development and organizational strengthening
Disaster response capability backed by stable capital base
ESG initiatives for sustainable management

Threats

Intensifying competition among regional banks
Market contraction risk due to population decline
Increased loan loss risks from economic downturn
Increased burdens from stricter financial regulations
Customer outflow to emerging digital finance firms
Profit pressure from stagnant regional economy
Net interest margin compression from low interest rates
Asset damage from natural disasters
Potential losses from heightened credit risk
Rising cybersecurity risks
Challenges in talent acquisition and rising costs
Organizational culture integration risks post-merger

Innovations

2023: Establishment of new department to strengthen regional revitalization

Overview: Created a dedicated department for regional economic revitalization to enhance support systems.
Impact: Strengthened collaboration with regional companies and promotion of regional contributions

2022: Expansion of online banking functions

Overview: Improved UI and added features to mobile app to enhance customer convenience.
Impact: Improved customer satisfaction and increased usage rates

2024: Introduction of AI-based credit screening system

Overview: Utilizes AI technology for faster and more accurate credit decisions.
Impact: Shortened screening periods and strengthened risk management

2021: Establishment of Daiyon Hoketsu Bank and branch consolidation

Overview: Merged the two banks to achieve efficient branch operations, consolidating about 50 branches.
Impact: Cost reductions while maintaining service quality

2023: Cybersecurity enhancement measures

Overview: Introduced advanced security measures to strengthen protection of customer information.
Impact: Significant reduction in external attack risks

2022: Development of regionally focused financial products

Overview: Developed and launched loan products tailored to local companies and agriculture.
Impact: Contributions to regional economy and acquisition of new customers

2025: Establishment of management integration preparation committee with Gunma Bank

Overview: Intensified preparation for management integration between the two regional banks.
Impact: Future business expansion and efficiency improvements

2024: Promotion of digital passbook services

Overview: Promoting adoption of digital passbooks among customers to achieve paperless operations.
Impact: Cost reductions and reduced environmental impact

2023: Strengthened fundraising support for regional SMEs

Overview: Achieved rapid loan screening and support using technology.
Impact: Contributes to regional economic revitalization

2025: Launch of digital talent development program

Overview: Internal training program to improve employees' IT skills.
Impact: Improved operational efficiency and service quality

Sustainability

Support for sustainable regional economic development
Energy-efficient store equipment to reduce environmental impact
Resource conservation through paperless promotion
Promotion of volunteer activities for local communities
Management system improvements for higher ESG ratings
Strengthened climate change risk management
Diversity enhancement through women's advancement
Environmental considerations in supply chain
Offering environmentally friendly financial products to customers
Ongoing support for local culture and arts