Gunma Bank

Basic Information

Stock Code
8334
Industry
Banking
Category Detail
Banks
Prefecture
Gunma Prefecture
Establishment Year
September 1932
Listing Year
April 1969
Official Website
https://www.gunmabank.co.jp/
TSE Information
TSE Information
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Overview

Gunma Bank is a regional bank established in 1932, boasting the top share of deposits and loans within Gunma Prefecture and actively expanding into southern Kanto and Nagano Prefecture as a community-based financial institution.

Current Situation

Gunma Bank achieved consolidated revenue of approximately ¥176.6 billion, ordinary income of approximately ¥38.3 billion, and net profit of approximately ¥27.9 billion in FY2023, maintaining a stable financial foundation. It holds an overwhelming position in Gunma Prefecture with a 46.28% main bank share and is expanding its branches in southern Kanto and Nagano Prefecture outside the prefecture. It is actively pursuing digitalization, including IT system upgrades and the introduction of biometric cash cards. It also contributes to regional economic revitalization through M&A support for local companies and the establishment of a medical-engineering collaboration activation fund. It is strengthening ties with other banks via participation in the TSUBASA Alliance and establishing securities and leasing subsidiaries. Aiming for sustainable management, it focuses on coexistence with local society and reinforcing its role as a regional financial institution. Looking ahead, it expects further growth by deepening its community-based financial model and expanding digital channels.

Trivia

Interesting Facts

  • The only bank in the prefecture with main bank share exceeding 40%.
  • Strong historical ties to Meiji-era raw silk trade.
  • Gunma Bank Green Wings women's volleyball team holds national record of 44 titles.
  • Experienced the Japanese Red Army bank robbery incident in 1978 for security lessons.
  • Pioneering mobile branch vehicle services originating from Gunma Bank.
  • Early introduction of passbooks and cash cards designed with Gunma-chan.
  • Pioneered ATM fee waivers to improve regional financial convenience.
  • Forms a comprehensive financial group with multiple subsidiaries and affiliates.
  • Offers specialized M&A services for supporting regional SMEs.
  • Operates cutting-edge information systems in collaboration with Fujitsu, Hitachi, and Oracle Japan.
  • Participates in the TSUBASA Alliance of regional banks to advance collaboration.
  • Established strict compliance system following FSA business improvement order.
  • Offers proprietary credit card brands like Gunma Bank Card.
  • Subsidiary Gungin Securities opened in 2016 to strengthen asset management.
  • Acquired naming rights for Tokyo Electric Power's hydroelectric plant for regional contribution.

Hidden Connections

  • Rare regional bank with a branch in Yokohama, Kanagawa Prefecture, remnant of Meiji-era raw silk trade.
  • Early participant as a financial institution in medical-engineering collaboration fund for regional economic revitalization.
  • Pioneered biometric IC cards following the Japanese Red Army robbery incident.
  • Promotes nationwide ATM fee waivers with regional banks through TSUBASA Alliance.
  • Gunma Bank Green Wings women's volleyball team highly regarded as cultural contributor to the region.
  • Establishment of Gungin Securities strengthens securities operations and expands asset management as a regional bank.
  • Supports M&A for regional SMEs to achieve sustainable regional economic development.
  • Collaborates with Fujitsu, Oracle Japan, and Hitachi to build and operate cutting-edge banking systems.

Future Outlook

Growth Drivers

  • New revenue from strengthened business succession and M&A support for regional SMEs.
  • Customer base expansion via branch growth in southern Kanto and Nagano.
  • Business efficiency and customer convenience via advanced IT and digital tech.
  • Improved trust through financing support for regional revitalization.
  • Expansion of products and services for diversifying retail financial needs.
  • Leveraging alliances to strengthen regionally collaborative financial services.
  • Strengthening framework as a customer-centric comprehensive financial group.

Strategic Goals

  • Maintain and expand prefectural share while strengthening networks in southern Kanto and Nagano.
  • Improve customer satisfaction through digital transformation initiatives.
  • Further expand SME support to lead regional economy.
  • Build sustainable regional financial model and practice ESG management.
  • Achieve one-stop services through deepened collaboration with group subsidiaries.

Business Segments

SME Lending

Overview
Addressing funding needs of SMEs supporting the regional economy.
Competitiveness
Flexible screening based on deep community ties
Customers
  • Local SMEs
  • Commercial and industrial associations
  • Venture companies
Products
  • Equipment funding loans
  • Working capital loans
  • Business succession-related financing

Real Estate Related Services

Overview
Comprehensive support for real estate investment and development funding.
Competitiveness
Extensive local real estate knowledge and experience
Customers
  • Real estate companies
  • Construction companies
  • Individual investors
Products
  • Real estate collateral loans
  • Housing loan agency services
  • Sale and leaseback

Securities and Asset Management Services

Overview
Services addressing asset formation and management needs.
Competitiveness
Strengthened collaboration with consolidated subsidiary Gungin Securities
Customers
  • High-net-worth individuals
  • Local companies
  • Investors
Products
  • Securities brokerage
  • Investment trust sales
  • Asset management consulting

Corporate Leasing and Credit Guarantee

Overview
Diverse services for corporate equipment investment and credit enhancement.
Competitiveness
Collaboration with group specialized companies
Customers
  • Corporate clients
  • SMEs
  • Business operators
Products
  • Leasing services
  • Credit guarantee operations
  • Factoring

M&A and Business Succession Support

Overview
Supporting smooth business succession for local SMEs.
Competitiveness
Leveraging local networks
Customers
  • SME owners
  • Ventures
  • Financial institutions
Products
  • M&A brokerage
  • Business succession consulting
  • Fund management

Regional Revitalization Fund

Overview
Investment support aimed at revitalizing local industries.
Competitiveness
Collaborative framework with regional financial institutions
Customers
  • Local SMEs
  • Investors
  • Local governments
Products
  • Fund investments
  • Medical-engineering collaboration support
  • Industry development

Public and Local Government Financial Services

Overview
Fund management for local public entities and administrative support.
Competitiveness
Designated as financial institution across wide areas in the prefecture
Customers
  • Local governments
  • Public institutions
Products
  • Designated financial institution operations
  • Public project funding loans
  • Payroll transfer agency

Agriculture and Raw Silk Related Finance

Overview
Specialized services stemming from historical raw silk trade background.
Competitiveness
Deep expertise in longstanding local industries
Customers
  • Agriculture-related companies
  • Raw silk trade-related businesses
Products
  • Agricultural funding loans
  • Trade-related financing

Competitive Advantage

Strengths

  • Top regional share in deposit and loan base
  • Active expansion into southern Kanto and Nagano Prefecture
  • Stable financial base and high capital strength
  • Advanced IT systems and security
  • Diverse financial products and services
  • Alliance strengthening via TSUBASA
  • Comprehensive financial services with group subsidiaries

Competitive Advantages

  • Overwhelming 46.28% main bank share in Gunma Prefecture
  • Flexible screening and support rooted in community
  • Strengthened customer touchpoints via branches across multiple prefectures
  • Improved convenience through extensive ATM partnerships
  • Enhanced customer satisfaction via advanced digital channels
  • Management support through regional revitalization funds and M&A
  • Trust backed by rich history in the region

Threats

  • Market contraction due to population decline in regional economy
  • Profit pressure under low interest rate environment
  • Intensifying competition from major banks and online banks
  • Increasing IT security risks
  • Business constraints from strengthened financial regulations
  • Rising loan risks from fluctuations in regional industries
  • Decline in competitiveness from delays in rapid digitalization

Innovations

2023: Introduction of next-generation digital banking system

Overview
Improved processing capacity through renewal of core banking system by Fujitsu.
Impact
Enhanced transaction processing speed and system stability

2022: Expanded rollout of biometric IC cash cards

Overview
Deployment of finger vein authentication cards at all branches.
Impact
Strengthened security and improved customer convenience

2024: Enhanced M&A support for regional SMEs

Overview
Expanded M&A services in collaboration with three credit unions.
Impact
Contributes to smoother business succession for regional companies

2021: Strengthened service collaboration via TSUBASA Alliance

Overview
Expanded ATM fee waivers etc. through partnerships with multiple regional banks.
Impact
Improved user convenience and strengthened customer base

2020: Establishment of regional revitalization fund

Overview
Joint establishment of fund to promote medical-engineering collaboration.
Impact
Supports new industry creation and promotes regional economic revitalization

Sustainability

  • Promoting regional contribution activities supporting local industries and culture
  • Advancing paperless operations to reduce environmental impact
  • Promoting gender equality and diversity
  • Ongoing contributions to regional disaster recovery
  • Providing sustainable regional financial services
  • Active investment in regional economic revitalization
  • Strengthened measures for customer privacy protection
  • Deployment of regional financial education support programs