Nanto Bank

Basic Information

Stock Code
8367
Industry
Banking
Category Detail
Banks
Prefecture
Nara Prefecture
Establishment Year
June 1934
Listing Year
April 1974
Official Website
https://www.nantobank.co.jp/
TSE Information
TSE Information
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Overview

Nanto Bank is Nara Prefecture's sole regional bank, founded in 1934. It centers on community-based financial services and actively expands into the Kansai region including Osaka and Kyoto, conducting steady management.

Current Situation

Nanto Bank holds a 30% deposit share and 50% loan share in Nara Prefecture, serving as the leading regional financial institution. As of March 2024, it operates 103 branches, with outstanding loans of approximately ¥4.2 trillion and deposits of approximately ¥5.8 trillion, maintaining a solid asset base. Beyond the Kansai region, it has bases in Osaka, Kyoto, Wakayama, Mie, Tokyo, Shanghai, and Hong Kong, working to expand its customer base outside the region. Leveraging close ties with Mitsubishi UFJ Financial Group, it actively develops services and pursues financial technology innovations. It launched trust services in 2017 to strengthen the inheritance and asset management markets. It focuses on diversified service offerings, including joint ATM operations with Seven Bank for efficiency improvements and securities business through its subsidiary. Emphasizing local commitment via women's field hockey team support and regional cultural contributions, it aims to promote regional economic revitalization and enhance regional bank competitiveness going forward.

Trivia

Interesting Facts

  • Boasts overwhelming regional share as Nara Prefecture's only regional bank.
  • 103 branches; as of March 2024, the only bank with a head office in the prefecture.
  • Local women's field hockey team 'Nanto Bank SHOOTING STARS' is nationally famous.
  • Introduced first regional bank joint ATMs with Seven Bank since 2019.
  • Engages in unique investment activities focused on local revitalization like kominka regeneration fund.
  • Close cooperative relationship with Mitsubishi UFJ Financial Group.
  • Drama-style CMs on local inheritance issues gained attention as unique ad strategy.
  • Transitioned to audit and supervisory committee in 2023 to strengthen governance.
  • Rooted across Nara Prefecture while actively expanding stores in Osaka and Kyoto.
  • Group subsidiary Nanto Mahoroba Securities handles securities business.
  • Financial institution code 0162, SWIFT code NANTJPJT.
  • Outsources 40% of off-premise ATMs to Seven Bank, aiming for over ¥100 million annual cost savings.
  • Beloved mascot character 'Nanshika' modeled after Nara deer.
  • Partnered with Mitsubishi UFJ Bank as designated financial institution for numerous prefectural municipalities.
  • Women's field hockey team is a powerhouse since joining Hockey Japan League in 1997.

Hidden Connections

  • Deep ties to Nara Prefecture, hometown of Capcom founder.
  • Promotes financial service integration through alliance with Mitsubishi UFJ Financial Group.
  • Selected as designated financial institution for many local government financial services.
  • Contributes to preservation of historic buildings and regional economic activation via kominka regeneration fund.
  • Differentiates from other banks through integrated ATM services with Seven Bank.
  • Focuses on regional sports promotion via women's field hockey team.
  • Expanded trust business domain upon obtaining FSA trust business approval.
  • Nanto Bank Group has comprehensive financial services framework via diverse consolidated subsidiaries.

Future Outlook

Growth Drivers

  • Strengthened SME support in Kansai region including Osaka and Kyoto
  • Revenue base reinforcement via expansion of trust and securities businesses
  • Convenience improvement through digital transformation
  • New business development via environment and regional regeneration funds
  • Enhanced collaboration with Mitsubishi UFJ Financial Group
  • International expansion leveraging overseas bases (Shanghai, Hong Kong)
  • Product development aligned with diverse customer needs
  • Organizational strengthening through women's empowerment
  • Brand value enhancement via regional culture and sports promotion
  • Innovative financial services creation through FinTech collaborations
  • Utilization of financial policies for local revitalization
  • 対応 to aging customer base and new customer acquisition

Strategic Goals

  • Maintain and expand over 70% prefectural share
  • Increase trust and asset management-related revenue to over 30% of total
  • Achieve over 70% digital channel usage rate
  • Reach ¥100 billion in assets under management for environment and regional regeneration funds
  • Achieve over 40% female manager ratio
  • Increase new customer acquisition in Kansai and Asia markets
  • Establish efficient ATM operations with major cost reductions
  • Revenue expansion from diversified financial services via group subsidiaries
  • Strengthen regional social contributions through expanded financial education
  • Active compliance with international sustainability standards

Business Segments

SME Financing

Overview
Community-based financing and value-added services supporting local business growth.
Competitiveness
Strong local network and flexible screening system
Customers
  • Local SMEs
  • Venture companies
  • Chamber of Commerce members
  • Manufacturing
  • Retail
  • Services
  • Construction
  • Food and beverage
Products
  • Working capital financing
  • Equipment financing
  • Guaranteed loans
  • Policy-based financial support
  • Management support services

Corporate Trusts and Asset Management

Overview
Supports corporate asset preservation and management with advanced trust services.
Competitiveness
Expertise and reliability from early entry into trust business
Customers
  • Corporate entities
  • Local governments
  • Medical corporations
  • Educational corporations
  • Public interest corporations
Products
  • Asset management trusts
  • Inheritance trusts
  • Pension trusts
  • Corporate pensions
  • Asset succession support

Securities Brokerage

Overview
Offers a wide range of financial products via Nanto Mahoroba Securities.
Competitiveness
Customer base built on local trust
Customers
  • Individual investors
  • SMEs
  • Asset management firms
Products
  • Stock and bond trading
  • Investment trust sales
  • Financial advisory
  • Asset management consultations

Leasing and Guarantee Services

Overview
Supports corporate funding through leasing and guarantees.
Competitiveness
Diverse finance products matched to local needs
Customers
  • SMEs
  • Sole proprietors
Products
  • Equipment leasing
  • Guarantee services
  • Finance services

IT and System Services

Overview
Provides system operations and IT support to group and external entities.
Competitiveness
IT operation know-how specialized for regional banks
Customers
  • Nanto Bank Group companies
  • Local companies
Products
  • Financial system development
  • IT support
  • Data management services

Consulting Services

Overview
Offers specialized consulting to resolve corporate management challenges.
Competitiveness
Expert staff familiar with local economy
Customers
  • Local SMEs
  • Local governments
Products
  • Business improvement support
  • Business turnaround support
  • Fund formation support

Environment and Renewable Energy Support

Overview
Promotes circular regional economy through eco-friendly finance.
Competitiveness
Early entry into local environmental finance
Customers
  • Local governments
  • SMEs
  • Fund operators
Products
  • Solar power financing
  • Kominuka regeneration fund
  • Environmentally considerate loans

Regional Development and Cultural Support Projects

Overview
Financial solutions contributing to regional culture and tourism development.
Competitiveness
Deep understanding and network in regional culture
Customers
  • Local governments
  • Cultural organizations
  • Local companies
Products
  • Regional event support
  • Cultural preservation fund
  • Tourism information services

Competitive Advantage

Strengths

  • Deep customer base rooted in the region
  • Overwhelming deposit and loan share in Nara Prefecture
  • Strong alliance with Mitsubishi UFJ Financial Group
  • Rich service lineup (trusts, securities, etc.)
  • ATM network through partnerships like Seven Bank
  • Active involvement in regional cultural support
  • Solid financial base and asset scale
  • Diversified operations via numerous consolidated subsidiaries
  • Expertise from early entry into trust business
  • Comprehensive SME financing support
  • Broad regional expansion (Kansai and overseas bases)
  • Social recognition from women's field hockey team
  • Active support for regional events and cultural activities
  • Flexible, community-based service delivery

Competitive Advantages

  • Maintains regional monopoly as Nara Prefecture's only regional bank
  • Growth opportunities expanded via Kansai prefectures and Asia (Shanghai, Hong Kong)
  • Superior product rollout through close strategic ties with Mitsubishi UFJ Financial Group
  • Pioneering joint ATM operations with Seven Bank for efficiency
  • Strength in inheritance and asset management from early trust business entry
  • Internalized securities via subsidiary Nanto Mahoroba Securities, enabling broad financial services
  • Enhanced local attachment and brand value through unique regional culture and event support
  • Strong responsiveness to diverse SME sectors
  • Financial services strengthening ties with community like regional revitalization funds
  • Elevated recognition domestically and regionally via successful women's field hockey team
  • Multi-location expansion enables service to non-local customers
  • Deep partnerships with local governments maintained

Threats

  • Stagnant loan demand due to low regional economic growth
  • Intensifying competition from megabanks and other regional banks
  • Risk of shrinking customer base from population decline
  • Profit pressure from prolonged low interest rates
  • Potential lag in responding to rapid digital finance advancements
  • Increased operational burden from regulatory tightening and legal changes
  • Service competition from new FinTech entrants
  • Political and economic risks at overseas bases
  • Shifts in asset management demand from inheritance and aging issues
  • Rising ATM operation costs
  • Potential increase in credit risk
  • Disaster risks to regional economy

Innovations

2023: Launch of joint ATM operations with Seven Bank

Overview
First regional bank to start joint ATM operations with Seven Bank, improving operational efficiency.
Impact
Annual ATM operation cost reduction exceeding ¥100 million

2022: Opening of internet branch 'Mahoroba Branch'

Overview
Established an internet branch to enhance online channels and convenience.
Impact
Contributed to new customer acquisition and increased user numbers

2021: Expansion of trust services

Overview
Expanded trust operations, enriching inheritance-related services like will-substitute trusts.
Impact
Diversified asset management products and improved customer satisfaction

2020: Establishment of regional revitalization fund

Overview
Launched kominka regeneration fund to support activation of local assets.
Impact
Contributed to regional community revitalization

2024: Digital transformation acceleration

Overview
Accelerated digitization of customer services, strengthening online transactions and consultations.
Impact
Improved customer convenience and operational efficiency

2023: Launch of women's empowerment program

Overview
Introduced specialized program to increase female manager ratio.
Impact
Diverse talent utilization and organizational revitalization

2021: AI implementation for credit screening efficiency

Overview
Utilized AI technology to speed up and improve accuracy of credit screening.
Impact
Enhanced risk management and administrative efficiency

2022: Development of environmentally considerate loan products

Overview
Launched eco-friendly financing for renewable energy businesses.
Impact
Support for sustainable regional economy

2023: Introduction of new mobile banking app

Overview
Released advanced mobile banking app to strengthen customer services.
Impact
Significant increase in customer usage rate

2024: Strengthened collaboration with FinTech firms

Overview
Advanced joint development of innovative services through partnerships with FinTech startups.
Impact
Creation of new financial services and improved customer satisfaction

Sustainability

  • ATM joint operations for efficiency and energy savings
  • Regional asset regeneration fund supporting circular economy
  • Green finance promotion via environmentally considerate loan products
  • Enhanced social contributions through regional culture and sports support
  • Continuous operation of ISO14001 environmental management system
  • Introduction of women's empowerment program and diversity promotion
  • Resource conservation through paperless initiatives
  • Waste reduction and efficiency via digitalization
  • Improved regional financial literacy through financial education programs
  • Strengthened collaborative activities with local environmental protection groups