Hyakugo Bank

Basic Information

Stock Code
8368
Industry
Banking
Category Detail
Banks
Prefecture
Mie Prefecture
Establishment Year
November 1878
Listing Year
April 1973
Official Website
https://www.hyakugo.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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Overview

Hyakugo Bank is a leading regional bank based in Mie Prefecture, founded in 1878, with strengths in community-focused financial services and expansion to branches outside the prefecture.

Current Situation

Hyakugo Bank achieved consolidated total assets of approximately 5.74 trillion yen and net profit of about 11.7 billion yen in the fiscal year ended March 2024, supporting the regional economy as Mie Prefecture's designated financial institution. Centered in Mie Prefecture, it operates 109 branches and 28 sub-branches, and is actively expanding sales in neighboring prefectures such as Aichi. In recent years, it has focused on IT investments and new service development, strengthening support for local SMEs through initiatives like establishing a regional revitalization fund and a business succession support company. It has also expanded ATM partnerships with other financial institutions, including Seven Bank, to enhance convenience. On the sustainability front, it actively pursues regional collaborations such as migration promotion agreements and social contribution activities, aiming for sustainable regional development. In the medium term, it is focusing on improving operational efficiency, strengthening its sales infrastructure, digitalization strategies, and ongoing efforts to acquire new customers and expand its revenue base.

Trivia

Interesting Facts

  • Long-established regional bank founded in 1878, with the longest history in Mie Prefecture.
  • Company emblem features a distinctive design combining a circle (100) and an X (5).
  • Stable shareholder composition including major players like Mitsubishi UFJ Bank.
  • Introduced what is touted as the world's first Windows-based core banking system in the banking industry.
  • Serves as designated financial institution for many cities and towns in Mie Prefecture, handling public funds.
  • Unique history connected to local ceramic artist and former president Kawakita Hangashū.
  • Significantly improved digital banking convenience through system renewal.
  • Extensive deployment of branches and sub-branches across the prefecture, with community focus as strength.
  • Greatly expanded convenience through ATM partnership with Seven Bank.
  • Established regional revitalization fund in the 2020s to bolster regional development.
  • Branches in Aichi, Osaka, and Wakayama prefectures, expanding network to Kinki region.
  • Contributes to prefectural finances through revenue stamp sales business in Mie.
  • Pioneered SME support by establishing specialized business succession company.
  • Contributes to local population maintenance via public-private migration promotion agreement.
  • Enhanced recognition beyond Chubu region through strengthened ties with regional media.

Hidden Connections

  • The company emblem designed by former president Oka Kōheiji has a unique history derived from fish wholesaler symbols.
  • Hyakugo Bank's system renewal is a rare domestic example of Windows Server and SQL Server-based core banking implementation.
  • Builds deep trust with local public entities as Mie Prefecture's designated financial institution.
  • Many shareholders are life and non-life insurance companies, fostering strong ties with the insurance industry.
  • Operates joint after-hours service counter at Sapia Tower near Nagoya Station with other banks.
  • Rare executive history with a ceramic artist as former president, influencing regional culture.
  • Among regional banks, invests heavily in IT and actively adopts latest technologies.
  • Diverse group of affiliates enables provision of wide-ranging solutions.

Future Outlook

Growth Drivers

  • Expansion of financing needs for regional SMEs
  • Increased demand from regional economic revitalization measures
  • Service convenience improvements through digitalization
  • New customer creation via local migration promotion
  • Revenue base strengthening through market diversification
  • Enhanced regional financial collaboration framework
  • Expansion in business succession support field
  • Growth in leasing and credit business
  • Development of ESG-focused financial products
  • Position securing amid regional bank industry restructuring
  • Expansion of corporate asset management services
  • Customer base diversification and regional brand enhancement

Strategic Goals

  • Maintain top share in regional financial services
  • Expand regional revitalization fund scale and generate operational results
  • Complete digitalization of all branches and achieve over 70% online usage rate
  • Build collaborative framework for regional migration promotion and population maintenance
  • Expand sustainability-related financial products and increase sales
  • Expand share in business succession support for regional SMEs
  • Grow leasing and credit business as new revenue source
  • Improve digital skills for all employees and realize workstyle reforms
  • Enhance social credibility through strengthened regional collaborations
  • Significantly improve customer and employee satisfaction levels

Business Segments

SME Financing

Overview
Various financing services supporting growth and stable operations for local SMEs.
Competitiveness
Flexible financing tailored to customer needs through close regional engagement
Customers
  • Manufacturing
  • Wholesale
  • Retail
  • Construction
  • Services
  • Food and Beverage
  • Agriculture-related
  • Nursing Care Providers
  • IT Businesses
  • Local Chambers of Commerce
Products
  • Working Capital Loans
  • Equipment Funds Loans
  • Business Succession Support Financing
  • Business Improvement Support Loans
  • Credit Guarantee-linked Financing
  • Startup Support Loans
  • Regional Revitalization Fund Investments
  • Negotiated Financing
  • Project Finance

Services for Local Governments and Public Institutions

Overview
Provides fund management and payment collection agency services for local governments and other public institutions.
Competitiveness
Trust and track record as Mie Prefecture's designated financial institution
Customers
  • Local Governments
  • Educational Institutions
  • Public Facilities
  • Medical Institutions
  • Regional Organizations
Products
  • Public Funds Handling Services
  • Payment Collection Agency Services
  • Receivables Management Support
  • Revenue Stamp Sales
  • Tax Collection Support

Corporate Asset Management and Securities Services

Overview
Various services supporting corporate asset building and financial strategies.
Competitiveness
Specialized investment services in collaboration with Hyakugo Securities
Customers
  • Mid-sized Companies
  • Large Companies
  • Asset Management Corporations
  • Business Corporations
Products
  • Securities Trading
  • Asset Management Advice
  • Corporate Pension Management
  • Financial Consulting
  • Derivatives Trading

Leasing and Credit Services

Overview
Leasing and credit business supporting corporate equipment investments and fundraising.
Competitiveness
Comprehensive services linked with Hyakugo Leasing and Hyakugo DC Card
Customers
  • Manufacturing
  • Construction
  • Logistics
  • Medical Institutions
  • Retail
Products
  • Equipment Leasing
  • Installment Sales
  • Credit Card Services
  • Equipment Rental
  • Fundraising Plans

IT and System Support Services

Overview
IT solutions and operational support specialized in financial operations.
Competitiveness
High reliability from in-house developed core banking systems
Customers
  • Local Public Entities
  • SMEs
  • Other Financial Institutions
Products
  • Banking System Operation Support
  • Database Management
  • Online Banking Infrastructure
  • Security Measures
  • System Consulting

Regional Revitalization Fund Investments

Overview
Investment fund operations and support programs to revitalize the regional economy.
Competitiveness
Strong local network for sourcing investment opportunities
Customers
  • Local Governments
  • SMEs
  • Venture Companies
Products
  • Regional Regeneration Investments
  • Business Succession Support
  • Startup Support Funds
  • Economic Revitalization Projects
  • Industry Promotion Support

Competitive Advantage

Strengths

  • Regionally focused financial services deployment
  • Trust as Mie Prefecture's designated financial institution
  • Deep involvement and support system for local economy
  • Extensive branch network and customer channels
  • Advanced IT system operations
  • Diverse lineup of financial products
  • Abundant expertise in SME support
  • Solid financial foundation
  • Corporate customer base across diverse industries
  • Strong ties with local governments

Competitive Advantages

  • Top market share position among regional banks in the prefecture
  • Broad-area expansion into Aichi Prefecture and beyond
  • Community-based business succession support services
  • Enhanced customer convenience through strengthened IT infrastructure
  • Expanded convenience via affiliated ATM network
  • Comprehensive services through collaboration with diverse affiliates
  • New business support via regional revitalization fund
  • Support from highly credible major shareholders
  • Long-term trust relationship with the region

Threats

  • Risk of regional economic contraction due to population decline
  • Profit pressure from low interest rate environment
  • Intensifying competition with banks from major urban areas
  • Concerns over loan losses from rising credit risks
  • Rise of digital currencies and fintech
  • Increasing macroeconomic uncertainty
  • Impacts from regulatory changes and enhanced supervision
  • Need to adapt to changes in regional industry structure
  • Risk of financial impacts from natural disasters
  • Potential effects from foreign exchange fluctuations

Innovations

2023: Establishment of Hyakugo Regional Revitalization Fund

Overview
Launched an investment fund aimed at supporting regional SMEs and industry revitalization.
Impact
Strengthened funding supply to regional economy and enabled new business support

2024: Launch of New Head Office Operations Building

Overview
Initiated latest operational setup at Iwata Head Office Building and Marunouchi HQ Building to promote efficiency.
Impact
Contributes to operational efficiency and improved customer service

2022: Enhanced Online Banking

Overview
Expanded functions and improved UI for internet and mobile services.
Impact
Improved user convenience and increased number of users

2021: Establishment of Business Succession Support Company 'Hyakugo Mirai Investment'

Overview
Established an investment company to support business succession for regional SMEs.
Impact
Contributes to business continuity and regional industry stability

2020: Expansion of ATM Partnership Network

Overview
Expanded ATM usage scope through partnerships with Seven Bank and JA Bank.
Impact
Significantly improved customer convenience

2023: Introduction of Digital Loan Applications

Overview
Implemented online loan application reception system for faster responses.
Impact
Accelerated loan reviews and improved customer satisfaction

2024: Conclusion of Regional Migration Promotion Agreement

Overview
Signed comprehensive migration promotion agreement with Mie Prefecture to advance regional revitalization.
Impact
Contributes to measures against regional population decline

2023: Completion of Security Enhancement Project

Overview
Adopted latest information security technologies to improve safety.
Impact
Strengthened customer information protection

2021: Launch of SME Support Program

Overview
Provided new management support programs and seminars.
Impact
Contributed to building trust with customer base

2022: Introduction of New ATMs

Overview
Sequentially installed advanced-feature ATMs in stores across the prefecture.
Impact
Improved operability and convenience for customers

Sustainability

  • Operation of regional economic revitalization fund and support for local companies
  • Migration promotion activities in collaboration with local governments
  • Eco-friendly new building design and energy-saving initiatives
  • Active participation in regional culture and education support activities
  • Improved customer convenience through fintech utilization
  • Strengthened support for SME business succession
  • Promotion of workforce diversity and better workplace environment
  • Enhanced social credibility through community-focused services
  • Security enhancements and personal information protection
  • Preparation of regional support systems for disasters
  • Expansion of sustainable financial products and services
  • Improved financial literacy through customer education programs