Kiyo Bank

Basic Information

Stock Code
8370
Industry
Banking Industry
Category Detail
Banks
Prefecture
Wakayama Prefecture
Establishment Year
May 1895
Listing Year
October 2013
Official Website
https://www.kiyobank.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
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, Hachijuni Bank, Nanto Bank, Oita Bank, Saga Bank

Overview

Kiyo Bank is a regional bank founded in 1895, holding an overwhelming share in Wakayama Prefecture and having built a strong sales base in southern Osaka Prefecture as a community-oriented financial institution.

Current Situation

Kiyo Bank recorded consolidated sales of 84.4 billion yen and ordinary income of 5 billion yen for the fiscal year ended March 2023, maintaining a stable business foundation as a regional bank. It holds an overwhelming main bank share of approximately 63.8% within Wakayama Prefecture and has actively expanded into southern Osaka Prefecture, where about 54% of its outstanding loans are concentrated. In 2013, it absorbed and merged its parent company, Kiyo Holdings, and relisted on the Tokyo Stock Exchange Prime Market. This strengthened its financial base, including transferring the sales planning department's functions to Osaka Prefecture, and established a regionally integrated service provision system. Moving forward, it aims to further expand its branch network to achieve localization in Osaka Prefecture, while focusing on prudent lending policies and support for the local economy. As the main bank for local companies, it contributes to the revitalization of regional industries and is advancing operational efficiency through IT system upgrades. Public funds were fully repaid in 2013, and it continues to work on improving its creditworthiness.

Trivia

Interesting Facts

  • The only regional bank headquartered in Wakayama Prefecture
  • Expanded into southern Osaka Prefecture since 1950 with 41 branches
  • Main bank share within Wakayama Prefecture reaches 63.8%
  • Sakai Branch is a landmark designed by renowned architect Tadao Ando
  • First regional financial institution to receive public funds injection, drawing attention
  • Absorbed and merged parent company in 2013 and relisted on TSE Prime
  • Experienced approximately 300 billion yen deposit outflow due to bank run in 1997
  • Highly evaluated for community-focused management, ranking high as main bank in southern Osaka
  • Over 100 years of history supporting regional finance since founding
  • Has a history of sports support, including a once-powerful gymnastics team

Hidden Connections

  • Through Kiyo Financial Group, provides multifaceted financial services across the group
  • Strong ties with Wakayama Prefecture local governments, serving as designated financial institution for regional promotion
  • Built trust with companies in southern Osaka Prefecture to form broad operational base
  • Multiple subsidiaries complement financial functions such as leasing and credit cards
  • Specialized response system for local companies' funding needs leveraging long history
  • Public funds injection and repayment process evaluated as model for regional bank stability
  • Sakai Branch architecture holds significance as regional landmark
  • Emphasizes community ties by featuring local talent as image characters

Future Outlook

Growth Drivers

  • Loan growth through branch network expansion in southern Osaka Prefecture
  • Increasing financial needs accompanying growth of local SMEs
  • Enhanced digital banking and improved customer convenience
  • Active participation and strengthened support for regional economic revitalization
  • Strengthened customer base through diversified financial services
  • Synergy creation through inter-regional collaboration
  • Stable revenue base as designated financial institution for local governments

Strategic Goals

  • Expand branch network in Osaka Prefecture to 67 locations to achieve localization
  • Improve market share through strengthened community-oriented services
  • Maintain total assets over 5 trillion yen and achieve revenue stabilization
  • Operational efficiency and cost reductions through IT infrastructure renewal
  • Advance ESG initiatives toward realizing sustainable regional finance

Business Segments

Lending to Local SMEs

Overview
Provides funding procurement and credit guarantees to SMEs that form the foundation of the local economy.
Competitiveness
Prompt lending decisions and meticulous follow-up support through deep regional integration
Customers
  • Local SMEs
  • Manufacturers
  • Retailers
  • Service Providers
  • Construction Companies
  • Restaurants
Products
  • Working Capital Loans
  • Equipment Investment Loans
  • Bill Discounting
  • Lease Financing
  • Credit Guarantees
  • Rental Guarantees

Corporate Deposits and Cash Management Services

Overview
Supports corporate clients' cash management and improved operational efficiency.
Competitiveness
Comprehensive customer support leveraging regional networks
Customers
  • SMEs
  • Local Governments
  • Medical Corporations
  • Educational Corporations
  • Public Organizations
Products
  • High-Interest Time Deposits
  • Cash Management Services
  • Foreign Exchange Transactions
  • Investment Trusts
  • Fund Transfer Services

Leasing and Credit Services

Overview
Supports the introduction of various equipment and machinery from a financial perspective.
Competitiveness
Integrated service provision through collaboration with consolidated subsidiaries
Customers
  • Manufacturing
  • Construction
  • Medical Institutions
  • Educational Institutions
  • Retail
Products
  • Equipment Leasing
  • Installment Sales
  • Credit Guarantees
  • Credit Card Services

Real Estate Related Financial Services

Overview
Provides comprehensive financial services for real estate transactions and investments.
Competitiveness
対応 by specialized staff well-versed in the local real estate market
Customers
  • Real Estate Management Companies
  • Construction Firms
  • Real Estate Investors
Products
  • Real Estate Collateral Loans
  • Real Estate Rental Guarantees
  • Asset Management Consulting

Financial System Services

Overview
Supports stable system operations and introduction of cutting-edge technologies.
Competitiveness
High technical capabilities centered on Kiyo Information Systems
Customers
  • Regional Banks
  • Credit Unions
  • Local Public Bodies
Products
  • Core Banking System Operation and Maintenance
  • Online Banking Development Support
  • Security Consulting

Card Payment and Financial Services

Overview
Enhances convenience through diverse card payment services.
Competitiveness
Regionally integrated service rollout and customer trust
Customers
  • Individual Customers
  • Corporate Customers
  • Retail Stores
Products
  • Credit Card Issuance
  • Electronic Money Payments
  • Points Programs

Competitive Advantage

Strengths

  • Overwhelming market share within Wakayama Prefecture
  • Strong branch network in southern Osaka Prefecture
  • Meticulous customer service through regional integration
  • Solid financial base and stable management
  • Diverse lineup of financial services
  • IT infrastructure development including internet banking
  • Deep understanding and support system for local economy
  • Comprehensive financial services via group subsidiaries
  • Trust as main bank for local companies
  • Cost management through efficient operations
  • Responsive to a wide customer base
  • Brand power from long history
  • Public funds repaid based on Financial Revitalization Law
  • Active business expansion into Osaka Prefecture market
  • Scale expansion through strategic mergers

Competitive Advantages

  • Secures overwhelming 63.8% main bank share in Wakayama Prefecture
  • Over half of loans in southern Osaka Prefecture, strong contribution to local economy
  • High regional integration from merger with Wakayama Bank
  • Sakai Branch etc., designed by renowned architect Tadao Ando, forming regional brand
  • One-stop services from finance to IT through diverse subsidiary collaboration
  • Improved fundraising capabilities and established social credit post-relisting
  • Rapid lending decisions and flexible response to local companies
  • Public funds fully repaid in 2013, excelling in financial soundness
  • Positions broad area from North to South Osaka as home turf
  • Comprehensive coverage from corporate to individual customers
  • Enhanced competitiveness through enriched IT services like internet banking
  • Higher reliability compared to other regional banks due to local focus
  • Detailed risk management based on local economic trends
  • Efficient branch organization and branch-in-branch introductions
  • Superior brand power and market penetration compared to nearby credit unions

Threats

  • Risk of stagnant loan demand due to low regional economic growth
  • Intensifying competition in Osaka Prefecture market from major megabanks and other regional banks
  • Concerns over shrinking local deposit base due to population decline
  • Pressure on interest margins from prolonged low-interest environment
  • Risk of increasing frozen assets or higher loan loss provisions
  • Increasing system investment burden and cyberattack risks
  • Rising business costs from strengthened financial regulations
  • Risks related to foreign currency deposits from forex market fluctuations
  • Fear that declining regional competitiveness may weaken local borrowers
  • Risk of dispersed management resources from new businesses or branch expansions
  • Accelerated digital transformation by competing regional banks
  • Delays in responding to diversifying customer needs

Innovations

2023: Announcement of Rebuild Plan for 71-Year-Old Head Office Building

Overview
Planning to rebuild the aging head office building and introduce an advanced office environment.
Impact
Contributes to operational efficiency and improved customer convenience

2023: Support for 940 Million Yen Fundraising by Live Commerce-Related Company

Overview
Supported fundraising for a company in the emerging live commerce field.
Impact
Contributes to expansion of client base in digital sectors

2022: Business System Renewal to Promote Digital Shift

Overview
Implemented system renewal to enhance customer services and strengthen online expansion.
Impact
Achieved improved customer satisfaction and cost reductions

2021: Pioneering Tariff Consultation Desk Setup Ahead of National Regional Banks

Overview
Established a specialized consultation desk to support import/export-related companies.
Impact
Contributes to supporting regional economic internationalization

2020: Expanded RPA Introduction for Business Efficiency

Overview
Automated routine tasks through Robotic Process Automation introduction.
Impact
Achieved personnel cost reductions and productivity improvements

Sustainability

  • Supporting sustainable development through regional economic revitalization
  • Promoting environmentally considerate financing products
  • Advancing paperless operations through digital service expansion
  • Participation in regional disaster prevention support activities
  • Sound management achieved through full repayment of public funds