Toho Bank

Basic Information

Stock Code
8346
Industry
Banking
Category Detail
Banks
Prefecture
Fukushima Prefecture
Establishment Year
November 1941
Listing Year
April 1973
Official Website
http://www.tohobank.co.jp/
TSE Information
TSE Information
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Other Companies
Iyo Bank Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Yachiyo Bank, Tottori Bank, Kitanihon Bank, Daito Bank

Overview

Toho Bank is Fukushima Prefecture's largest regional bank, founded in 1941, featuring community-focused solid management and the top share of loans within the prefecture.

Current Situation

Toho Bank recorded consolidated sales of approximately 58.3 billion yen in the fiscal year ending March 2021, boasting the top loan share within the prefecture. It is steadily pursuing solid management to recover from the previous year's deficit in net profit. Centered in Fukushima Prefecture with 122 branches, it has expanded to areas outside the prefecture including Tokyo, Miyagi, Ibaraki, Tochigi, and Niigata. Its core financial services include deposits, loans, securities trading, and foreign exchange operations, while promoting IT utilization through internet banking and shared ATM partnerships. While maintaining a strong local focus, it implemented shared core banking systems in 2024 to improve operational efficiency. It actively engages in industry-academia collaborations and regional contribution initiatives to support sustainable regional economic development. In the medium to long term, it is pursuing strategic expansion with local demand development and digital transformation as growth drivers.

Trivia

Interesting Facts

  • Established in 1941 through the merger of three regional banks, with a long history.
  • Fukushima Prefecture's largest financial institution, operating 122 branches in the prefecture.
  • Participates in the TSUBASA Financial Alliance to promote shared systems.
  • Acquired naming rights for Fukushima Prefecture's Azuma Athletic Stadium to support regional sports.
  • Offers diverse ATM usage through partnerships with regional banks nationwide.
  • After the Great East Japan Earthquake, exerted efforts for early restoration despite 29 branches temporarily closed.
  • Opened an internet branch in 2009, offering advanced financial services.
  • Installed in-house daycare to support working parents' childcare.
  • Concluded industry-academia collaboration agreements with multiple universities in finance.
  • Actively supports regional cultural foundations and volunteer activities.
  • Employee stock ownership association is a major shareholder.
  • Aiming for approx. 40% loan share within Fukushima Prefecture.
  • Established the first wholly-owned securities company among Hokkaido-Tohoku regional banks.
  • Maintains the former head office in Koriyama as the Koriyama Branch.
  • Serves as designated financial institution for various public entities.

Hidden Connections

  • Toho Bank is an important partner supporting the regional economy through industry-academia collaborations with universities and local governments in Fukushima Prefecture.
  • Through participation in the TSUBASA Financial Alliance, it shares management foundations with multiple regional banks to improve efficiency.
  • Implemented evacuee support after the Fukushima Daiichi nuclear accident in collaboration with multiple domestic and international banks.
  • As a regional financial institution, provides comprehensive financial services to Fukushima Prefecture, supporting the region's growth foundation.
  • Toho Securities advances diversification of regional finance as the first wholly-owned securities company among regional banks.
  • Contributes to strengthening regional financial networks by improving convenience through ATM partnerships with multiple regional banks.
  • Actively promotes regional activities through close ties with local companies and Fukushima Prefecture's cultural foundation.
  • Employee support programs such as in-house daycare serve as model cases for regional SMEs.

Future Outlook

Growth Drivers

  • Demand from reconstruction and revitalization of Fukushima Prefecture and surrounding regional economies.
  • Efficiency gains from digital transformation initiatives.
  • Cost reductions from introduction of shared core systems.
  • Enhanced community-focused services through strengthened industry-academia and regional collaborations.
  • Expansion of financial services for the elderly in population-declining areas.
  • Strengthening of new corporate customer segments and venture support.
  • Improved customer convenience through ongoing ATM partnership expansions.
  • New business opportunities from ESG investments and sustainability promotion.
  • Strengthened regional brand through financial education and cultural support.
  • Recovery trend in regional economy post-COVID-19.

Strategic Goals

  • Maintain and expand prefecture loan share to over 50%.
  • Deepen IT joint utilization framework through nationwide bank alliance.
  • Achieve over 80% penetration of digital banking services.
  • Strengthen branch expansion and area growth outside Fukushima Prefecture.
  • Build sustainable financial services supporting regional economic circulation.
  • Enhance corporate brand through community contribution activities.
  • Promote energy-saving transformations at business locations to reduce environmental impact.
  • Enrich support programs for regional SMEs.
  • Strengthen disaster response capabilities and establish regional safety networks.
  • Deploy customized financial products for diverse customer segments.

Business Segments

SME Financing

Overview
Addresses funding needs of local SMEs with a variety of financing services.
Competitiveness
Strength in community-rooted listening and funding trend analysis
Customers
  • Local SME owners
  • Regional chambers of commerce
  • Venture companies
Products
  • Working Capital Financing
  • Equipment Investment Financing
  • Cash Flow Support Services
  • Business Restructuring Support
  • Credit Guarantee Association-linked Financing

Public and Local Government Services

Overview
Serves as designated financial institution for the prefecture and municipalities, covering a wide range of public services.
Competitiveness
Strong collaborative framework with local politics
Customers
  • Fukushima Prefecture
  • Multiple municipalities in the prefecture
  • Public organizations
Products
  • Designated Financial Institution Operations
  • Tax Collection Agency
  • Public Bond Issuance Support
  • Financial Education Support

Asset Management and Corporate Pension Management

Overview
Manages corporate assets and pension operations, contributing to financial stability.
Competitiveness
Detailed advisory system
Customers
  • Corporate customers
  • Retirement benefit management groups
  • Corporate pension funds
Products
  • Corporate Investment Trusts
  • Corporate Pension Management Services
  • Asset Management Consulting

Financial Product Development and Sales

Overview
Develops and sells a variety of financial products for regional financial institutions.
Competitiveness
Utilization of sales channel network in the Tohoku region
Customers
  • Regional bank groups
  • Investors
  • High-net-worth individuals
Products
  • Investment Trusts
  • Bonds
  • Insurance Products
  • Securities Brokerage

Information Systems and IT Services

Overview
Supports the group's overall IT infrastructure for efficient business operations.
Competitiveness
Strong collaboration with Fujitsu and system development
Customers
  • Toho Information Systems user departments
  • Group affiliates
  • Regional bank alliances
Products
  • Banking System Operations
  • IT Maintenance Services
  • Digitalization Support

Card Settlement and Guarantee Services

Overview
Provides services combining settlement convenience and credit guarantees.
Competitiveness
Community-focused guarantee expertise
Customers
  • Individual customers
  • SMEs
  • Regional credit guarantee institutions
Products
  • Toho Card Issuance
  • Credit Guarantee Operations
  • Leasing Services

Competitive Advantage

Strengths

  • Community-focused management structure
  • Top loan share within Fukushima Prefecture
  • Multi-branch and multi-location expansion
  • Knowledge accumulation through industry-academia collaboration
  • Operational efficiency via shared core systems
  • Diverse public and local government services
  • Extensive ATM partnership network
  • Stable financial base
  • Long-standing regional trust
  • Adoption of advanced system technologies
  • Diverse lineup of financial products
  • High employee retention in the region
  • Multifaceted regional contribution activities
  • Enhanced regional recognition through naming rights
  • Efficient operations leveraging IT technologies

Competitive Advantages

  • Dominant top share in prefecture loan balance
  • Customer convenience ensured through ATM partnerships with regional banks
  • Achieved management cost reduction via shared core systems
  • Deepened regional economic support through industry-academia agreements
  • Stable revenue from designated financial institution roles for public entities
  • Comprehensive support for regional SMEs with diverse financing products
  • In-house IT department handles group's IT support
  • Business strategies reflect local needs for swift responses
  • High regional closeness and trust in customer base
  • Strengthened customer retention via fee-free ATM partnerships
  • Enhanced regional brand power through naming rights activities
  • Adaptability to financial services in aging regions
  • Gained social recognition through rapid support during disasters
  • Maintained competitiveness with medium- to long-term digitalization plans
  • Improved access convenience through multi-location expansion

Threats

  • Market contraction risk due to population decline in regional economy
  • Profit pressure from prolonged low-interest environment
  • Increased credit risk from borrowers amid regional industry stagnation
  • Intensified competition from new digital banking players
  • Potential asset losses from disaster risks
  • Ripple effects from regional bank consolidations
  • Heightened competition in expansion outside the region
  • Increased business costs from stricter regulations
  • Shifts in customer needs due to generational changes
  • IT security and cyberattack risks
  • Changes in service demand due to population aging
  • Latent foreign currency deposit risks from exchange fluctuations

Innovations

2024: Completion of shared core banking system

Overview
Began joint use of core systems through the TSUBASA Alliance.
Impact
Achieved operational efficiency and cost reductions.

2023: Introduction of AI-based loan screening system

Overview
Utilized AI technology in loan screening to achieve faster and more accurate processes.
Impact
Shortened screening lead time and strengthened risk management.

2022: Expansion of digital passbook services

Overview
Enhanced passbook information management via smartphone apps to improve customer convenience.
Impact
Improved customer satisfaction and promoted paperless operations.

2021: Expansion of fee-free shared ATM usage

Overview
Advanced fee waivers for mutual ATM use with multiple regional banks including Hokkaido Bank and Chiba Bank.
Impact
Significantly improved customer convenience.

2020: Participation in fintech joint venture

Overview
Joined the jointly funded company of the TSUBASA Financial Enhancement Alliance to advance IT technology research.
Impact
Built foundation for next-generation financial services.

Sustainability

  • Established the 'Toho Hometown Total Active Support Fund' for regional economic support
  • Promoting the 'Toho Plastic Smart Declaration' to reduce plastic waste
  • Strengthened financial services in evacuation areas for disaster victims
  • Expanded local production-local consumption financial services and regional revitalization support
  • Implemented energy-saving and power conservation at environmentally considerate business locations
  • Social contributions through regional education and cultural foundations
  • Supporting work-style reforms with in-house daycare facilities
  • Active participation in regional volunteer activities
  • Building sustainable financial infrastructure through regional bank collaborations
  • Forming sustainable local economies by supporting regional SMEs and agriculture
  • Providing special financial services for evacuees