Toyama Bank

Basic Information

Stock Code
8365
Industry
Banking
Category Detail
Banks
Prefecture
Toyama Prefecture
Establishment Year
February 1954
Listing Year
November 1993
Official Website
https://www.toyamabank.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
IyoGin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Toyama Daiichi Bank, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank, Fukui Bank, Daito Bank

Overview

Toyama Bank is a regional bank established in 1954, providing community-focused financial services primarily in western Toyama Prefecture, known for its solid and prudent management.

Current Situation

As of the fiscal year ended March 2020, Toyama Bank reported consolidated net profit of ¥702.5 million, deposit balance of approximately ¥415.2 billion, and outstanding loans of approximately ¥274 billion, maintaining a solid financial foundation. It operates 39 branches mainly in western Toyama Prefecture, strengthening its community-oriented operations. In 2019, it opened a new head office in front of Takaoka Station, promoting a comfortable work environment through extended business hours and the introduction of a free-address system. It is also advancing system upgrades, having switched to NTT Data's core shared center system in 2012. The bank is actively engaged in sustainability initiatives and regional contribution activities. It has a branch in Kanazawa City and aims to expand its market share in the Hokuriku region. Moving forward, it will focus on enhancing digital services and collaboration with Lawson Bank to improve convenience, with the strategic goal of contributing to local economic development.

Trivia

Interesting Facts

  • Head office building newly constructed and relocated in front of Takaoka Station in 2019, with nighttime LED lighting
  • Founded in 1954 as Toyama Industrial Bank
  • Known for prudent management despite being the smallest regional bank in Toyama Prefecture
  • ATM usage free after hours through partnerships with Japan Post Bank and Seven Bank
  • Deep historical ties with Hokuriku Bank, with joint ventures

Hidden Connections

  • Promotes fusion of regional finance and convenience stores through Lawson Bank partnership
  • Local transportation company Tonami Holdings involved as major shareholder
  • Japan Trustee Services Bank as stable shareholder for trust account
  • Competitive yet collaborative relationship with Hokuriku Bank supporting regional finance

Future Outlook

Growth Drivers

  • Increasing demand for SME support amid Hokuriku economic recovery
  • Customer base expansion through improved digital banking convenience
  • New service launches via convenience store ATM collaborations
  • Deepening and diversification of community-focused financial services
  • Business strengthening through expanded collaborations with local governments and companies

Strategic Goals

  • Establish position as top regional bank contributing to local economy
  • Complete digital transformation for operational efficiency
  • Promote sustainable management and gain trust from local community
  • Expand deposit and loan balances through new customer acquisition
  • Strengthen revenue base with diverse financial products and services

Business Segments

SME Financing

Overview
Provides financing products tailored to diverse needs of SMEs in western Toyama Prefecture.
Competitiveness
Meticulous customer support through deep local ties
Customers
  • Small and medium manufacturing companies
  • Retail businesses
  • Service businesses
  • Construction businesses
  • Local small businesses
Products
  • Working Capital Financing
  • Equipment Financing
  • Guaranteed Financing
  • Business Evaluation Financing
  • Lease Financing

Corporate Deposits and Cash Management

Overview
Offers cash management and deposit services for corporations, supporting the local economic foundation.
Competitiveness
Depth of local financial network
Customers
  • Local mid-sized companies
  • Public corporations
  • Associations
  • Local governments
Products
  • Current Deposits
  • Time Deposits
  • Fund Transfer Services
  • Payroll Transfer Services
  • Public Funds Collection Deposits

Real Estate Related Services

Overview
Secures revenue through lending and support services meeting local real estate needs.
Competitiveness
Information network rooted in the local market
Customers
  • Corporate real estate management departments
  • Individual investors
  • Local developers
Products
  • Real Estate Collateralized Loans
  • Leasing Services
  • Asset Management Consulting
  • Real Estate Valuation for Customers

Local Public Institution Support

Overview
Practices regional contributions by providing financial solutions to local public institutions.
Competitiveness
Strong ties with local community
Customers
  • Local governments
  • Public facilities
  • Non-profit organizations
Products
  • Public Funds Management
  • Utility Bill Collection Support
  • Investment Advisory

Competitive Advantage

Strengths

  • Detailed customer service through local focus
  • Solid financial foundation
  • Local network in the Hokuriku area
  • Convenience improvements via ATM partnerships
  • Long-standing local trust and track record
  • Operational efficiency from latest system introductions
  • Diverse corporate and retail financial services
  • Rapid loan approval processes
  • High employee expertise
  • Flexible customer responsiveness
  • Strength in SME support
  • Brand recognition through local events
  • Comprehensive branch network
  • Strengthened collaboration with partner companies
  • Advanced digital strategy initiatives

Competitive Advantages

  • Superior positioning over competitors through deep local customer understanding and relationship building
  • Overwhelming branch coverage and customer base in western Toyama Prefecture
  • Operational efficiency from NTT Data core shared center's latest systems
  • Channel diversification and convenience enhancement through Lawson Bank ATM collaboration
  • Improved customer convenience and usage rates via multiple ATM partnerships
  • Thick local trust gained from long-term stable management
  • Strong partnerships with local companies and municipalities
  • High customer satisfaction from employee expertise and attentive service
  • Loan approval speed and responsiveness exceeding industry standards
  • Active contributions to local economic revitalization, strengthening regional brand
  • Flexible response to customer needs with diverse product lineup
  • Service delivery leveraging local information and know-how
  • Aggressive marketing strategies for new customer acquisition
  • Younger customer development through enriched digital services
  • Business efficiency and new customer touchpoints from new Takaoka head office

Threats

  • Profit pressure from low interest rate environment
  • Declining loan demand due to sluggish regional economic growth
  • Shrinking customer base from local population decline and aging
  • Intensifying competition from major city banks and online banks
  • Increased operational costs from regulatory strengthening
  • Growing information security risks
  • Delays in responding to rapid fintech advancements
  • Potential damage to branches or systems from natural disasters
  • Market limitations of regionally specialized business
  • Foreign exchange fluctuation risks related to foreign currency deposits
  • Risk of increased non-performing loans in economic downturns
  • Changes in regional financial service demand due to population migration

Innovations

2023: Participation in Lawson Bank Instant Account Settlement Service

Overview
Joined Lawson Bank's instant account settlement service, enabling ATM charges to au PAY.
Impact
Enhanced customer convenience and new payment channel development

2021: Opera Singer Featured in TV Commercial

Overview
Produced a TV commercial featuring opera singer Noriyuki Sawamute to strengthen brand image.
Impact
Increased regional awareness and customer base expansion

2020: New Head Office Relocation and Opening

Overview
Invested approximately ¥4.8 billion to build a new head office in front of Takaoka Station, extending counter hours upon opening.
Impact
Improved customer service and operational efficiency

2020: Migration to NTT Data Core Shared Center STELLA CUBE

Overview
Renewed core accounting system and completed migration to the latest shared center.
Impact
Improved operational efficiency and system stability

Sustainability

  • Regional contribution activities emphasizing local economic support
  • Promotion of energy-saving measures in IT systems
  • Advancement of paperless operations and cost reduction
  • Support for work-life balance through diverse employment forms
  • Social value creation through support for local culture and sports