The 77 Bank

Basic Information

Stock Code
8341
Industry
Banking
Category Detail
Banks
Prefecture
Miyagi Prefecture
Establishment Year
December 1878
Listing Year
October 1972
Official Website
https://www.77bank.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Iyogin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Akita Bank, Iwate Bank, Fukuoka Financial Group, Hachijuni Bank, North Japan Bank

Overview

The 77 Bank, founded in 1878, is Tohoku's largest regional bank, providing solid management and community-focused services centered in Miyagi Prefecture.

Current Situation

The 77 Bank recorded consolidated revenue of approximately 171.5 billion yen and net profit of approximately 39.3 billion yen for the fiscal year ending March 2025, maintaining a stable financial base as Tohoku's leading regional bank. It primarily focuses on deposit and lending operations rooted in the local economy, leveraging its branch network centered in Miyagi Prefecture and extending to Fukushima Prefecture and other Tohoku prefectures. In recent years, it has strengthened services for local governments and corporations, supported venture companies for regional economic revitalization, and promoted industry-academia collaborations and other multifaceted initiatives. Drawing from the experience of the Onagawa branch disaster caused by the tsunami, it has heightened disaster awareness and focuses on sustainability activities to realize a sustainable regional society. While adapting to changes in domestic and international economic environments, it upholds the tradition of prudent management as a regional bank and has shown a challenging business stance in the 2020s, balancing community focus with digitalization while striving to ensure safety and reliability. Toward 2030, it aims to deepen its role as the financial infrastructure for the regional community, strategically expanding new customer segments and corporate business, and improving efficiency through system sharing and business rationalization.

Trivia

Interesting Facts

  • Veteran bank originating from the 77th National Bank in the Meiji era
  • Only bank in Tohoku with branches in Tokyo, Nagoya, and Osaka
  • Long-term exclusive handling of Tokyo Stock Exchange clearing operations
  • Many Onagawa branch staff sacrificed in tsunami damage during the disaster
  • Historical connection as Eiichi Shibusawa provided founding support
  • Technologically advanced with biometric ATMs and IC cards
  • Official top sponsor for local professional sports teams
  • Actively concludes industry-academia collaboration agreements as a regional financial institution
  • Comprehensive provision of finance, leasing, guarantees, and insurance via subsidiaries
  • Deeply involved in Tohoku disaster recovery and contributes to regional society

Hidden Connections

  • Connections from Eiichi Shibusawa, who supported the founding, led to gaining trust from the Tokyo Stock Exchange
  • Disaster damage and recovery support activities during the earthquake formed strong bonds with the regional community
  • As Tohoku's only major regional bank, expanded roles with advances into Kanto and Nagoya
  • Focuses on regional venture support in collaboration with the Development Bank of Japan
  • Collaborates with local sports teams to contribute to regional revitalization
  • Shares core systems with other regional banks via shared system for efficiency
  • Serves as designated financial institution for local governments, handling numerous public services
  • Creates affinity by designing local pro team characters on IC cash cards

Future Outlook

Growth Drivers

  • Expansion of financial demand due to Tohoku economic recovery and population shifts
  • New product and service development through digital technology introduction
  • Strengthening support for regional companies' global expansion
  • Deepening collaborations with local governments and increasing public service demand
  • Growth in environmental and energy finance business
  • Focus on sustainable management strategies and social responsibility investments
  • Diversification of individual and corporate services for new customer acquisition
  • Customer loyalty expansion through regional brand strengthening
  • Operational efficiency and cost reductions via shared systems
  • Social trust building through regional culture and sports support

Strategic Goals

  • Further market share expansion across all Tohoku prefectures as the core of regional finance
  • Achieve over 80% digital banking utilization rate
  • Develop new financial services in collaboration with local governments
  • Reach 30 billion yen in revenue from environmental finance business
  • Advanced comprehensive risk management system and stable profit maintenance
  • Regional economic revitalization through corporate lending and venture support
  • Strengthened social trust via regional sports and cultural activity support
  • Maximize effects of system sharing initiatives and reduce operating costs by 10%
  • Lead in fostering regional disaster awareness and safety measures
  • Realize management considering sustainability and ESG

Business Segments

Corporate Lending

Overview
Provides funding procurement support and restructuring assistance for local companies.
Competitiveness
Detailed management support rooted in the community
Customers
  • Small and Medium Enterprises
  • Local Major Corporations
  • Venture Companies
  • Agriculture, Forestry, and Fisheries Operators
  • Construction Companies
Products
  • Working Capital Loans
  • Equipment Investment Loans
  • Real Estate Collateral Loans
  • Business Restructuring Support
  • Corporate Finance

Local Government Transactions

Overview
Provides comprehensive support for local governments' fiscal management and fund operations.
Competitiveness
High reliability as Tohoku's largest regional bank
Customers
  • Miyagi Prefecture
  • Sendai City
  • Soma City, Fukushima Prefecture
  • Other Tohoku Local Governments
Products
  • Designated Financial Institution Services
  • Public Project-Related Financing
  • Tax Collection Agency
  • Fund Management Services

Securities-Related Services

Overview
Supports beyond the framework of regional financial institutions through securities trading and investment services.
Competitiveness
Long-term trust and track record as a clearing bank
Customers
  • Local Companies
  • Individual Investors
  • Securities Firms
Products
  • Stock Trading Agency
  • Investment Trust Sales
  • Asset Management Advice
  • Securities Clearing Operations

Guarantee-Related Services

Overview
Facilitates borrowers' funding procurement through credit guarantee business.
Competitiveness
Flexible responses tailored to the region
Customers
  • Small and Medium Enterprises
  • Entrepreneurs
  • Sole Proprietors
Products
  • Credit Guarantees
  • Guarantee Debt Assumption
  • Credit Support

Leasing and Finance

Overview
Offers a diverse range of leasing products for equipment investments.
Competitiveness
Comprehensive strength through collaboration with subsidiaries
Customers
  • Manufacturing
  • Services
  • Distribution
  • Medical Institutions
Products
  • Equipment Leasing
  • IT Leasing
  • Vehicle Leasing
  • Finance Services

Digital Solutions

Overview
Provides IT services contributing to DX promotion for regional companies.
Competitiveness
Customization capabilities aligned with regional needs
Customers
  • Small and Medium Enterprises
  • Government Offices
  • Educational Institutions
  • Local Governments
Products
  • System Development
  • Digital Consulting
  • Cloud Services
  • Business Automation Tools

Insurance Agency Operations

Overview
Handles diverse insurance products to comprehensively support customer risks.
Competitiveness
One-stop provision of financial products
Customers
  • Individual Customers
  • Corporate Customers
  • Group Contracts
Products
  • Life Insurance
  • Damage Insurance
  • Medical Insurance
  • Welfare Insurance

Consulting Services

Overview
Supports management improvements and growth strategies, contributing to regional economic revitalization.
Competitiveness
Long-term perspective support rooted in the community
Customers
  • Local Companies
  • Founders
  • Ventures
Products
  • Management Consulting
  • Fund Planning
  • Business Succession Support
  • Human Resource Development Support

Asset Management and Trust Operations

Overview
Offers asset management services emphasizing safety.
Competitiveness
Abundant asset management expertise
Customers
  • Wealthy Individuals
  • Corporate Pension Funds
  • Local Governments
Products
  • Investment Trust Management
  • Government and Corporate Bond Management
  • Pension Management
  • Trust Product Sales

Overseas Expansion Support

Overview
Backs overseas business centered on East Asia.
Competitiveness
Utilization of representative offices in Shanghai and Singapore
Customers
  • Regional Companies
  • Importers/Exporters
  • Global Expansion Companies
Products
  • Overseas Transaction Support
  • Foreign Exchange Transactions
  • Expansion Consulting

Infrastructure and Public Project Support

Overview
Implements necessary financing and support for regional infrastructure development.
Competitiveness
Long track record in local government transactions
Customers
  • Local Governments
  • Public Project Contractors
Products
  • Public Project Funding
  • Business Plan Advice
  • Contract Guarantees

Environmental and Energy Finance

Overview
Provides financial services to promote environmental conservation.
Competitiveness
Finance linked to regional environmental initiatives
Customers
  • Renewable Energy Operators
  • Environmental Companies
Products
  • Environmental Equipment Investment Financing
  • Energy-Saving Equipment Leasing
  • Green Bond Support

Competitive Advantage

Strengths

  • Strong foothold as Tohoku's largest regional bank
  • Extensive branch network and community closeness surpassing peers in the prefecture
  • High long-term credit ratings and reliability
  • Comprehensive financial services provision system
  • Deep understanding and contribution to the regional economy
  • History of prudent management and stable revenue base
  • Robust digital banking infrastructure
  • Long-term exclusive track record in securities clearing operations
  • Corporate services covering a wide customer base
  • Strong management team and regional collaborations

Competitive Advantages

  • Superiority as the region's designated financial institution
  • Credit foundation from historical figures like Eiichi Shibusawa
  • Exclusive position in the clearing bank system
  • Branch network spanning all Tohoku prefectures
  • Differentiation from other regional banks through diverse corporate services
  • Advanced digitalization and biometric authentication implementation
  • Community-focused strategy emphasizing regional collaborations
  • Comprehensive financial services through diverse subsidiaries
  • Initiatives toward sustainable management and social contributions
  • Strategic urban branches in Tokyo

Threats

  • Risks from regional population decline and depopulation
  • Intensifying competition with megabanks
  • Profit pressure from low interest rates
  • Delays in digital financialization and security risks
  • Potential physical damage from natural disasters
  • Changes in revenue environment due to deregulation and legal amendments
  • Impact from deteriorating finances of local governments
  • Changes in deposit trends due to aging population
  • Risk of regional credit loss incidents
  • Emergence of new financial technology (FinTech) competitors

Innovations

2024: Sapporo Branch Urban Branch Conversion

Overview
Relocated to Nippon Life Sapporo Building and introduced latest equipment.
Impact
Improved customer convenience and operational efficiency

2023: Promotion of Biometric Authentication Transactions

Overview
Introduced palm authentication and expanded ATM and counter facial recognition.
Impact
Enhanced security and customer convenience

2022: Expansion of Shared System MEJAR Operations

Overview
Core system sharing with Yokohama Bank, Hokuriku Bank, etc.
Impact
Cost reductions and improved system stability

2023: Strengthening of Digital Solutions Subsidiary

Overview
Expanded The 77 Digital Solutions.
Impact
Enhanced IT support for regional customers

2021: Internet Banking Fee Abolition

Overview
Eliminated usage fees to improve convenience.
Impact
Increased electronic channel usage by individual customers

2024: Expansion of Regional Collaboration Agreements

Overview
Strengthened comprehensive collaboration agreement with Sendai City to promote regional revitalization.
Impact
Expansion of regional economic and social contributions

2025: Launch of Environmental and Energy Finance

Overview
New financial services such as renewable energy-related financing.
Impact
Contribution to regional environmental initiatives

Sustainability

  • Strengthening regional disaster prevention and risk management
  • Expanding regional economic revitalization and SME support
  • Environmental projects and energy-saving equipment finance
  • Business efficiency through digital technology utilization
  • Social contributions via regional culture and sports support