Hokkoku Financial Holdings

Basic Information

Stock Code: 7381
Industry: Banking
Category Detail: Banks
Prefecture: Ishikawa Prefecture
Establishment Year: October 2021
Listing Year: October 2021
Official Website: https://www.hokkokubank.co.jp/hokkokufhd/index.html
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Iyo Bank Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Toyama Daiichi Bank, Concordia Financial Group, Hirogin Holdings, Aichi Financial Group, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank, Fukui Bank, Toyama Bank, Hyakugo Bank, Hokuhoku Financial Group, Bank of Nagoya, Ehime Bank, North Japan Bank

Overview

Hokkoku Financial Holdings is a bank holding company established in 2021, with Hokkoku Bank at its core, providing regionally focused financial services, leveraging strengths in solid management as a regional bank and digital innovation.

Current Situation

Hokkoku Financial Holdings recorded consolidated ordinary income of 19.1 billion yen and net income of 9.3 billion yen for the fiscal year ending March 2022, establishing a solid financial base. Centered on Hokkoku Bank, it has a strong presence in Ishikawa Prefecture and the Hokuriku region, with group leasing and credit service companies also contributing to revenue growth. In recent years, it has made investments in other regional banks through QR Investment to share digital expertise and strengthen collaboration. This aims to revitalize regional finance and expand new revenue sources. The business focuses on digital transformation and enhanced customer services to differentiate in the increasingly competitive financial industry. It also considers sustainability, incorporating contributions to local society into its management policy to pursue sustainable growth. Moving forward, it will strengthen its role as a pillar of regional finance while maximizing digital technology utilization and group synergies. It also envisions enhanced collaboration among regional banks through capital alliances and new business developments.

Trivia

Interesting Facts

New financial holding company established in October 2021 through a solo share transfer from Hokkoku Bank.
Rooted in local Ishikawa Prefecture, serving as a key player in Hokuriku finance.
In 2023, invested in multiple regional banks to explore regional financial collaboration.
Group includes diverse financial-related companies such as leasing and credit services.
Actively engaged in financial education for local junior high students.
Audited by EY ShinNihon LLC, maintaining high governance standards.
Issued shares total approximately 27.9 million, appropriately sized growth company post-listing.
Major shareholders include trust banks and local leading companies.
Collaborates with investee regional banks to advance digital services.
Listed on the Tokyo Stock Exchange Prime Market in 2021, stable position in the domestic Prime market.

Hidden Connections

Strengthening relationships through investments in other regional banks via QR Investment.
Regional major companies such as Hokkoku Shimbun and Hokuriku Electric Power are major shareholders.
Collaborating with IT companies to advance regional financial digitalization.
Aims to build future customer base through active involvement in regional financial education.
Auditor is EY ShinNihon LLC with a global network.
Owns leasing and credit service companies within the group, achieving financial diversification.
Competitors in the stock market include Chiba Bank and Fukuoka FG.
Regional bank investment moves are strategic amid regional financial restructuring.

Future Outlook

Growth Drivers

Business efficiency and service enhancement through regional financial DX promotion.
Acquiring new markets and customers via collaborations and investments among regional banks.
Strengthening revenue base through multifaceted financial services.
Increased lending demand backed by regional economic recovery.
Expansion in cashless payments and digital finance sectors.
Strengthened initiatives in sustainable investments and lending.
Development of financial products and regional support for aging society.
Product and service innovation utilizing group synergies.
Improved customer loyalty through region-focused marketing.
New business development leveraging deregulation and government policies.

Strategic Goals

Building regional financial network through strengthened regional bank collaborations.
Full penetration of digital financial services to all customers.
Achieve 70% cashless ratio for enhanced convenience.
Expansion of regional social contribution activities and improved ESG ratings.
Generate 30% of group revenue from non-interest businesses.
Further sophistication of internal controls and governance.
Strengthened provision of financial products and services aligned with SDGs.
New customer acquisition through support for regional business innovation.
Employee digital skills enhancement and work style reform achievement.
Become a financial institution contributing to sustainable regional society.

Business Segments

Corporate Lending

Overview

Provides diverse short-term and long-term financing services tailored to local business funding needs.

Competitiveness

Regionally rooted screening and flexible responses

Customers

Small and medium-sized enterprises
Local major companies
Startups
Real estate companies
Manufacturers

Products

Equipment funding loans
Working capital loans
Real estate collateral financing
Project finance

Leasing and Rental Services

Overview

Supports corporate activities through leasing and rental of diverse equipment and machinery.

Competitiveness

Rapid regional services and customization capabilities

Customers

Manufacturing
Retail
IT companies
Logistics
Construction

Products

OA equipment leasing
Industrial machinery leasing
IT equipment rental
Automobile leasing

Guarantee Services

Overview

Provides reliable credit and lending guarantee services to meet diverse guarantee needs.

Competitiveness

Guarantee programs tailored to local conditions

Customers

Small and medium-sized enterprises
Sole proprietors
Real estate companies
Construction companies
Rental companies

Products

Credit guarantees
Rental guarantees
Construction guarantees
Lending guarantees

Consulting Services

Overview

Promotes business value enhancement through consulting and support for management improvement and IT utilization.

Competitiveness

Practical advice and follow-up rooted in the region

Customers

SME owners
Startups
Financial institutions
Local governments
Chambers of commerce

Products

Management consulting
IT implementation support
Digitalization promotion support
Business succession support

Card Services Provision

Overview

Delivers cards and payment services to meet diverse settlement needs.

Competitiveness

Regional information integration and enhanced customer service

Customers

Individual customers
Corporate customers
Partner companies
Sales agents
Local governments

Products

Credit card issuance
Debit cards
Point services
Cashless payments

Digital Investment Business

Overview

Leads digital innovation and asset management investments within and outside the group.

Competitiveness

New business creation through integration of finance and IT

Customers

Group companies
Regional banks
Fintech companies
Venture companies
Investment funds

Products

QR Investment
Venture support
Fintech technology development
Asset management

Regional Revitalization Support

Overview

Multifaceted financial support business to sustain regional economic development.

Competitiveness

Regional networks and financial expertise

Customers

Local governments
Regional chambers of commerce
Small and medium-sized enterprises
Agriculture, forestry, and fisheries businesses
NPOs

Products

Regional development funds
Financial education support
Cashless promotion
Entrepreneurship support

Asset Management Services

Overview

Diverse services to support customer asset formation and management.

Competitiveness

Specialized support with deep trust system expertise

Customers

Individual investors
Small and medium-sized enterprises
Corporate customers
Trust banks
Pension funds

Products

Asset management consulting
Trust management
Pension management support
Real estate management

Payment System Development

Overview

Develops payment systems to promote regional cashless adoption.

Competitiveness

Flexible system development tailored to the region

Customers

Financial institutions
Retail
Food and beverage
Commercial facilities
Public organizations

Products

Cashless payment systems
QR code payments
Electronic money services
Payment terminal implementation support

Information Systems Services

Overview

Technical services to provide stable IT environments and support business activities.

Competitiveness

Advanced technology and understanding of regional characteristics

Customers

Group companies
Small and medium-sized enterprises
Financial institutions
Local governments
Educational institutions

Products

IT infrastructure development
System maintenance and operations
Security measures
Cloud services

Education and Training Services

Overview

Training services aimed at digital adaptation and regional talent development.

Competitiveness

Curriculum design tailored to diverse needs

Customers

Group employees
Regional companies
Local government staff
School affiliates
Financial institutions

Products

Digital talent development training
Financial knowledge education
Regional talent utilization programs
Corporate training services

Competitive Advantage

Strengths

Solid customer base rooted in the region
Group structure with diverse financial services
Advancement of digital transformation
Strong financial base and stable revenue structure
Deep trust relationships rooted in the regional economy
Rapid customer response and customization capabilities
Broad credit guarantee services
Extensive regional collaboration network
High-expertise consulting capabilities
Secured diversified revenue sources

Competitive Advantages

Overwhelming regional brand power and recognition in the Hokuriku area
Revenue maximization through cross-selling within the group
Efficient service delivery via digital technology utilization
Revenue growth from synergies among diverse subsidiaries
Expanded influence and strengthened collaboration through investments in regional financial institutions
Flexible funding capabilities and high creditworthiness
Convenience from introduction of latest payment and cashless technologies
Enhanced response to region-specific customer needs
Comprehensive SME support through guarantee services
Management philosophy aiming for coexistence with sustainable regional society

Threats

Revenue pressure from excessive competition in the regional banking sector
Shrinking customer base due to population decline and regional economic stagnation
Cybersecurity risks accompanying accelerated digitalization
Business impacts from regulatory changes and financial policy shifts
Expansion of investments and collaborations by other regional banks and megabanks
Continued margin compression from low interest rates
Intensified competition with new entrant fintech companies
Regional economic instability from disasters or environmental changes
Decline in loan asset quality from credit risk materialization
Integration risks associated with group restructuring and M&A

Innovations

2023: Expansion of Investments in Regional Banks

Overview: Capital participation in multiple regional banks including Iwate Bank through QR Investment.
Impact: Contributes to strengthened regional financial collaboration and new revenue sources

2022: Agreement on DX Talent Development Collaboration

Overview: Collaborates with System Support to promote advanced IT talent development.
Impact: Contributes to digital service expansion and improved competitiveness

2024: Strengthening Cashless Payment Services

Overview: Expanded regional QR code payment services and reviewed fees.
Impact: Enhanced convenience and expanded usage strengthening customer base

2023: Implementation of Financial Education Program

Overview: Delivered financial literacy classes to junior high students in Ishikawa Prefecture.
Impact: Contributes to strengthened regional community ties and future customer cultivation

2023: System Integration and Business Efficiency Improvement

Overview: Integrated group IT systems and optimized business processes.
Impact: Achieved cost reductions and improved service quality

2022: Establishment of Regional Revitalization Fund

Overview: Created proprietary investment fund to support regional companies.
Impact: Supports regional economic development and establishes new revenue model

Sustainability

Strengthened financial support for sustainable regional economic development
Promotion of investments in renewable energy projects
Group-wide business efficiency improvements to reduce environmental impact
CSR promotion centered on co-creation with local communities
Enhanced support for employee work-life balance
Expansion of regional financial education and awareness activities
Advancement of lending and investments considering ESG factors
Introduction of energy-saving equipment and digital paperless initiatives
Building regional collaboration framework to strengthen disaster response
Social contributions through support for regional culture and sports