Hokuhoku Financial Group

Basic Information

Stock Code
8377
Industry
Banking
Category Detail
Banks
Prefecture
Toyama Prefecture
Establishment Year
September 2003
Listing Year
September 2003
Official Website
https://www.hokuhoku-fg.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Iyogin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Hirogin Holdings, Hokukoku FHD, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank, Toyama Bank, Hokuyo Bank

Overview

Hokuhoku Financial Group is a financial holding company established in 2003, operating a regionally focused regional bank group centered on Hokuriku Bank and Hokuyo Bank, ranking 5th in assets among regional banks in the industry.

Current Situation

As of 2023, Hokuhoku Financial Group operates regionally focused banking business with Hokuriku Bank and Hokuyo Bank as subsidiaries. In 2009, it fully repaid public funds and strengthened its financial base. Deeply involved in the regional economy, it has Hokuriku's three prefectures and Hokkaido as its main business bases, promoting profitability improvement and branch network rationalization. It has entered the securities business to explore new revenue sources. Aiming to strengthen collaboration with local economies, it is also advancing business alliances with other regional banks. Its financial position is stable, with consolidated net profit on the scale of hundreds of billions of yen. It continues to focus on regional economic support while pursuing sustainable growth through efficient management and new business development.

Trivia

Interesting Facts

  • Achieved Japan's first merger of distant regional banks, 'enclave integration'
  • Possesses unique sales network connecting Hokuriku and Hokkaido
  • Fully repaid public funds in 2009, establishing financial soundness
  • Regional major bank group with approximately 4,500 employees
  • Entered securities business with establishment of Hokuhoku TT Securities
  • Deploys detailed financial services closely tied to regional economy
  • Fusion of Hokuriku Bank's profitability and Hokuyo Bank's regional closeness
  • Actively collaborates with Tohoku region in line with Shinkansen opening
  • Aerial stores and efficient branch operations in collaboration with regional administration
  • Diversified financial services including securities, leasing, and guarantees
  • Group subsidiaries span wide range from leasing, guarantees, cards, to IT
  • Rich local financial network leveraged customer base
  • Employee regional contributions and CSR activities highly evaluated
  • Successful management efficiency improvement through subsidiary integration
  • Financial group strong in regional SME support

Hidden Connections

  • Numerous Hokuriku natives involved in Hokkaido's pioneering era, leading to historical ties and integration of the two regional banks.
  • Securities subsidiary established as joint venture with Tokai Tokyo Financial Holdings, forming basis for business alliance.
  • Strengthened collaboration with 10 Tohoku regional banks for support of evacuees from Great East Japan Earthquake.
  • Innovative operations converting Hokkaido Bank Sendai Branch to aerial store in cooperation with Shonai Bank for management efficiency.
  • First remote regional bank integration in Japan, serving as model case for other regional banks.
  • Established subsidiary responsible for regional economic revitalization research and policy recommendations.
  • Multiple trust banks and life insurance companies hold capital relationships as major shareholders.
  • Mutual operation of sales branches in Hokuriku's three prefectures and Hokkaido for efficiency.

Future Outlook

Growth Drivers

  • Intensified focus on local economic recovery and SME support
  • Business efficiency and customer convenience improvement through regional DX promotion
  • Expansion growth in new financial services such as securities
  • Rising demand for ESG investment and sustainable finance
  • Promotion of inter-regional economic exchange with Shinkansen opening
  • Financial product development responding to regional aging
  • Regional financial network expansion through strengthened regional collaboration
  • Collaboration with other financial institutions such as Fidea Holdings
  • Revenue diversification centered on consulting services
  • Maintenance of local customer base and acquisition of new customers

Strategic Goals

  • Maintain and expand top share in regional finance
  • Business diversification to increase annual revenue by 10%
  • Group-wide digital transformation implementation
  • Social evaluation improvement through ESG-responsive management
  • Contribution to regional economic revitalization and sustainable growth
  • 50% increase in sales from securities and leasing businesses
  • Development of new business models in collaboration with local administration
  • Maintain/achieve customer satisfaction over 90%
  • Employee satisfaction improvement through work style reform promotion
  • Expansion of regionally focused financial education dissemination

Business Segments

Corporate Lending

Overview
Provides diverse financing products to regional SMEs and local governments for management support.
Competitiveness
Flexible financial responses through regional closeness
Customers
  • Small and Medium Enterprises
  • Local Governments
  • Agricultural Corporations
  • Chambers of Commerce
Products
  • Working Capital Loans
  • Equipment Investment Financing
  • Real Estate Collateral Loans
  • Credit Guarantees

Personal Lending

Overview
Implements customer life support through diverse personal loan products.
Competitiveness
Product design tailored to regional needs
Customers
  • Individual Consumers
  • Home Buyers
  • Education Fund Users
Products
  • Housing Loans
  • Education Loans
  • Card Loans
  • Free Loans

Asset Management and Administration

Overview
Supports customers' asset formation and risk management.
Competitiveness
Consulting strength through regional closeness
Customers
  • High-Net-Worth Individuals
  • Corporate Clients
  • Pension Funds
Products
  • Investment Trusts
  • Insurance Products
  • Asset Management Consulting

Securities Services

Overview
Provides diverse financial product transactions through securities subsidiary.
Competitiveness
Comprehensive financial services through group collaboration
Customers
  • Individual Investors
  • Corporate Investors
Products
  • Stock Trading
  • Bond Trading
  • Investment Trust Sales

Leasing and Guarantee Business

Overview
Services supporting corporate funding procurement and risk reduction.
Competitiveness
Strong trust relationships with regional companies
Customers
  • Corporate Clients
  • Real Estate Professionals
Products
  • Equipment Leasing
  • Credit Guarantees
  • Debt Collection Services

Systems and IT Services

Overview
Supports banking operation efficiency and sophistication with IT.
Competitiveness
System expertise specialized in banking operations
Customers
  • Group Companies
  • External Financial Institutions
Products
  • Banking System Development
  • Software Sales

Regional Consulting

Overview
Specializes in regional economic revitalization and policy support.
Competitiveness
Deep understanding and responsiveness to regional issues
Customers
  • Local Governments
  • Regional Organizations
Products
  • Regional Economic Surveys
  • Policy Recommendations
  • Regional Revitalization Planning

Investment and Capital Business

Overview
Supports growth and funding procurement for regional companies.
Competitiveness
Investment strategies leveraging regional collaboration
Customers
  • Startups
  • Local SMEs
Products
  • Venture Investment
  • Equity Investment
  • Fund Management

Real Estate-Related Services

Overview
Deploys effective utilization of real estate assets and financing services.
Competitiveness
Regional closeness information network
Customers
  • Corporations
  • Individual Clients
Products
  • Real Estate Collateral Loans
  • Real Estate Management
  • Buying/Selling Brokerage

Payment Services

Overview
Provides diverse convenient and secure payment environments.
Competitiveness
Expanded usage through partnerships with local companies
Customers
  • Individual Clients
  • Corporate Clients
Products
  • Debit Cards
  • Credit Cards
  • Electronic Money

Education and Training Services

Overview
Supports knowledge dissemination and human resource development for regional development.
Competitiveness
Customization based on regional needs
Customers
  • Local Companies
  • Regional Organizations
Products
  • Financial Education Seminars
  • Staff Training
  • Regional Lectures

Environment and Social Services

Overview
Various services contributing to sustainability promotion.
Competitiveness
Focus on contributions to regional society
Customers
  • Regional Companies
  • Government
  • NPOs
Products
  • ESG Investment Support
  • Environmental Management
  • CSR Planning

Competitive Advantage

Strengths

  • Strong customer base through regional closeness
  • Sound financial structure with full repayment of public funds
  • Group strength enabling diverse financial services
  • Wide-area sales network in Hokkaido and Hokuriku
  • Long-term trust relationships with local companies
  • Expansion into new businesses such as securities
  • Efficient branch network integration strategy
  • Comprehensive corporate financial support
  • Deep understanding of regional economy and SMEs
  • Flexible lending and guarantee services
  • Business efficiency improvement utilizing IT technology
  • Stabilized revenue structure through management integration
  • Strong leadership by capable management team
  • Strengthened collaboration with regional administration
  • Diverse lineup of financial products

Competitive Advantages

  • Japan's first enclave integration creating a wide-area regional bank network
  • Mutual complementation system leveraging strengths of each region
  • Fusion of Hokuriku Bank's high profitability and Hokuyo Bank's regional closeness
  • Successful public funds repayment and sound finances
  • Diversification of management base through securities subsidiary establishment
  • Risk diversification through sales base spanning multiple regions
  • One-stop provision of wide range of financial products and services
  • Flexible responsiveness specialized to regional economic needs
  • Customer retention strategy centered on long-term trust relationships
  • Superior operations to competitors through IT and business efficiency
  • High expertise specialized in SME support in regions
  • Enhanced credibility through strong ties with local public entities
  • Promotion of collaboration with Tohoku regional banks leveraging Shinkansen opening
  • Strong regional affinity by management team emphasizing local natives
  • Diversified revenue base through securities, leasing, guarantees, etc.

Threats

  • Regional market shrinkage due to population decline
  • Profit pressure from prolonged low-interest environment
  • Risk of economic fluctuations in local economies
  • Intensified competition with new entrant financial providers
  • Competitive disadvantage from delays in financial DX response
  • Increased business burden from strengthened regulations
  • Regional economic damage from natural disasters
  • Loan losses from increased credit risk
  • Risk of customer migration to digital finance
  • Response to large-scale social changes such as new infectious diseases
  • Liquidity risk from customer fund outflows
  • Expansion of uncertainty in global economy

Innovations

2023: Establishment and launch of Hokuhoku TT Securities subsidiary

Overview
Established a securities subsidiary in joint venture with Tokai Tokyo Financial Holdings and entered the securities business.
Impact
Achieved revenue diversification and strengthened asset management services

2022: Promotion of branch network efficiency and aerial store conversion

Overview
Advances cost reduction and customer service efficiency through branch integration and aerial store conversion of Hokuriku Bank and Hokuyo Bank.
Impact
5% cost reduction rate, improved customer convenience

2021: Strengthening digital banking services

Overview
Enhances online and mobile banking functions to improve customer convenience.
Impact
20% increase in users, improved customer satisfaction

2020: Promotion of ESG investment and strengthening sustainability activities

Overview
As a regional financial institution, promotes provision of investment products addressing environmental and social issues and awareness activities.
Impact
15% increase in sustainable product ratio

Sustainability

  • Active participation in regional environmental conservation activities
  • Implementation of ESG management support programs for local companies
  • Promotion of renewable energy-related financing
  • Paperless operations and store energy saving
  • Ongoing public support projects for regional society
  • Diverse work styles and diversity promotion for employees
  • Active disclosure of sustainable management information
  • Financial literacy improvement activities for regional residents
  • Transportation rationalization aiming for reduced environmental impact
  • Contributions to local industry promotion and tourism support
  • Support for regional health promotion and welfare activities
  • Asset management incorporating ESG standards