The 114 Bank

Basic Information

Stock Code
8386
Industry
Banking
Category Detail
Banks
Prefecture
Kagawa Prefecture
Establishment Year
November 1878
Listing Year
October 1972
Official Website
https://www.114bank.co.jp/
TSE Information
TSE Information
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Other Companies
IyoGin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Iwate Bank, Fukuoka Financial Group, The Hachijuni Bank, Fukui Bank, Tottori Bank, Shikoku Bank, Awa Bank, Oita Bank, Saga Bank, Ehime Bank, Hokuhoku Bank

Overview

The 114 Bank is a regional bank founded in 1878, based in Kagawa Prefecture, serving as a core financial institution supporting the regional economy in the Seto Inland Sea area.

Current Situation

The 114 Bank recorded consolidated net profit of 11.7 billion yen and net assets of 284.3 billion yen in the fiscal year ended March 2022, maintaining a solid management foundation as the largest regional bank in Kagawa Prefecture. Centered in Kagawa Prefecture, it operates 123 branches across 11 prefectures in Shikoku, Kinki, and Kanto regions, enhancing lending to local economies and deposit services. In recent years, it has promoted digital banking and fee-free ATM withdrawals through partnerships, striving to improve convenience. It focuses on collaboration with local industries and regional revitalization, partnering with Nomura Securities in investment trust sales and securities business. It is advancing sustainability management that considers social and environmental issues, along with business process reviews and governance strengthening. Moving forward, it aims to expand its loan ratio in the Tokyo metropolitan area and urban centers to strengthen competitiveness as a wide-area regional bank. It also engages in preserving historic buildings and emphasizes coexistence with the local community.

Trivia

Interesting Facts

  • Established in 1878 as one of the few numbered banks in Japan.
  • Boasts an overwhelming main bank share within Kagawa Prefecture.
  • The head office building is a modern architectural masterpiece that won the BCS Award in 1968.
  • Deploys branches across Seto Inland Sea prefectures as a wide-area regional bank.
  • A regional bank advancing securities business collaboration with Nomura Securities.
  • Pioneered participation in fee-free mutual ATM withdrawals with Shikoku regional banks.
  • Operates representative offices in Tokyo and Shanghai for international business.
  • History of growth through mergers with numerous local banks since founding.
  • Camouflage paint from wartime discovered during branch renovations.
  • Successive presidents from Taisho to early Showa eras known as regional economic leaders.
  • Major shareholders include major insurers like Nippon Life and Meiji Yasuda Life.
  • Strengthened management transparency following 2018 issues involving executives.
  • Emphasizes social role of regional banks with strong commitment to regional contributions.
  • Actively promotes preservation and utilization of historic buildings.
  • Early adopter of IT efficiency through regional bank shared systems.

Hidden Connections

  • Strengthens mutual support between regional commerce and finance through collaboration agreement with Takamatsu Mitsukoshi.
  • Expands securities business and develops new markets through partnership with Nomura Securities.
  • Adopted Mitsubishi Tokyo UFJ Bank technology for regional bank shared core banking system.
  • Over 45% of companies in Kagawa Prefecture use The 114 Bank as their main bank.
  • Historically rare numbered bank originating from the National Bank Ordinance of the Edo period.
  • The 1926-built Takamatsu branch, spared from war damage, is a locally designated historic building.
  • Tokyo head office building adjacent to Nihonbashi Takashimaya for excellent access.
  • Fee-free ATM partnerships with Awa Bank, Iyo Bank, and Shikoku Bank in Shikoku are pioneers among regional banks.

Future Outlook

Growth Drivers

  • Strengthening revenue base through loan expansion in capital and urban areas
  • Customer service improvements via digital channels
  • Increased credit lending through enhanced SME support in the region
  • Accelerated growth through Nomura Securities collaboration in securities business
  • Sustainability promotion in partnership with regional society
  • International transaction expansion utilizing overseas bases
  • Cost reduction and efficiency via regional bank shared systems
  • Securing multifaceted revenue sources through new product development
  • Local talent development and employment maintenance
  • Improved trust through strengthened corporate governance
  • Regional brand enhancement through social contribution activities
  • Advanced disaster risk management

Strategic Goals

  • Maintain and expand over 60% share in Kagawa Prefecture as a regional bank
  • Achieve over 30% business efficiency improvement through digital transformation completion
  • Double sales growth in securities and asset management fields
  • Significant expansion of sustainability-related investments and support
  • Double annual regional contribution activities
  • Risk diversification through diversified medium- to long-term lending portfolio
  • Achieve over 30% female managers ratio
  • Maintain over 90% customer satisfaction
  • Over 20% ratio of overseas market transactions
  • Strengthen support for fostering sustainable regional economies

Business Segments

Corporate Lending

Overview
Provides diverse corporate lending services centered on local companies to support management stability.
Competitiveness
Accurate loan screening based on extensive regional network
Customers
  • Small and Medium Enterprises
  • Large Corporations
  • Local Industries
  • Medical Institutions
  • Tourism Businesses
  • Service Industries
  • Manufacturing
  • Agriculture, Forestry and Fisheries
  • Construction
  • IT Companies
  • Educational Institutions
  • Public Interest Corporations
  • Local Governments
  • Financial Institutions
  • Trading Companies
Products
  • Working Capital Loans
  • Equipment Loans
  • Real Estate Collateral Loans
  • Credit Guarantees
  • Bill and Trade Bill Discounting
  • Business Restructuring Support
  • Regional Revitalization Funds
  • Lease Financing
  • M&A Support
  • Fundraising Consulting
  • Crowdfunding Support
  • Export/Import Letters of Credit
  • Foreign Currency Loans
  • Guarantee Services
  • Subsidy and Grant Guidance

Asset Management Services

Overview
Supports corporate asset management to contribute to stable revenue generation.
Competitiveness
Detailed support by local financial advisors
Customers
  • Corporate Pension Funds
  • Local Governments
  • Corporate Investors
  • High-Net-Worth Individuals
  • SME Owners
  • Educational Institutions
  • Public Interest Corporation Affiliates
  • Retirement Benefit Plan Operators
  • Medical Corporations
  • Trust Banks
  • University Endowments
  • Foundation Corporations
Products
  • Investment Trust Sales
  • Pension Asset Management
  • Inheritance and Business Succession Consulting
  • Fund Wraps
  • Insurance Product Sales
  • ETF Sales
  • Bond Investment Products
  • Real Estate Investment Trusts
  • Asset Valuation Analysis
  • Risk Management
  • Corporate Pension Consulting
  • Trust Agency Services

Payment and Card Services

Overview
Provides diverse payment services to enhance customer convenience.
Competitiveness
Flexible service design tailored to regional characteristics
Customers
  • Small and Medium Enterprises
  • Restaurants
  • Retailers
  • Public Institutions
  • Medical Institutions
  • School Corporations
  • Tourism Facilities
  • Service Industries
  • Commercial Facilities
  • Local Governments
  • Hotels
  • Taxi Companies
Products
  • Credit Card Issuance
  • Debit Cards
  • Electronic Money
  • POS System Integration
  • Online Payment Agency
  • Corporate Cards
  • Regional Point Services
  • Invoice Issuance Support
  • Direct Debit Services
  • Payment Consulting

Compliance and Guarantees

Overview
Offers multifaceted guarantees and risk management services to support business stabilization.
Competitiveness
Meticulous guarantee screening rooted in the region
Customers
  • Retail
  • Manufacturing
  • Services
  • Construction
  • Logistics
  • Government-Related
  • NPO Corporations
  • School Corporations
  • Medical Corporations
  • Agricultural Cooperatives
  • Elderly Facilities
Products
  • Guarantee Services
  • Credit Management Agency
  • Risk Consulting
  • Credit Investigations
  • Insurance Agency Operations
  • Receivables Management Agency

System and Technology Support

Overview
Provides technology services including core system construction and operations support.
Competitiveness
High-efficiency operations through shared system implementation
Customers
  • Financial Institutions
  • Small and Medium Enterprises
  • Large Corporations
  • Insurance Companies
  • Public Institutions
  • Educational Institutions
Products
  • Core Banking System Operations
  • System Development Support
  • IT Consulting
  • Data Analysis Services
  • Online Banking Support

Real Estate Related Services

Overview
Supports customers' asset utilization through locally rooted real estate services.
Competitiveness
Regional information network unique to regional banks
Customers
  • Individual Investors
  • Corporate Entities
  • Real Estate Companies
  • Local Governments
  • Housing Developers
Products
  • Real Estate Collateral Loans
  • Real Estate Sales and Brokerage
  • Real Estate Management Services
  • Valuation and Appraisal
  • Investment Property Introductions

Trust and Asset Preservation

Overview
Provides trust services to support asset preservation and succession.
Competitiveness
Thorough consultation support rooted in the region
Customers
  • High-Net-Worth Individuals
  • Corporations
  • Public Interest Corporations
  • Medical Corporations
  • Real Estate Owners
  • Local Governments
Products
  • Trust Services
  • Will Trusts
  • Asset Management Services
  • Inheritance Support
  • Corporate Trusts

Regional Revitalization Support

Overview
Deploys versatile support services to promote regional economic revitalization.
Competitiveness
Extensive local network and track record
Customers
  • Local Governments
  • Chambers of Commerce
  • Small and Medium Enterprises
  • Tourism Organizations
  • Cultural Groups
Products
  • Institutional Utilization Consulting
  • Regional Revitalization Funds
  • Tourism PR Support
  • Shopping Street Revitalization
  • Training and Seminars

Overseas Related Services

Overview
International business support utilizing representative offices in Shanghai and Singapore.
Competitiveness
International network connecting regions to overseas
Customers
  • Import/Export Companies
  • Overseas Expansion Companies
  • Overseas Staff
  • Local Subsidiaries
  • Trading Companies
  • Tourism Businesses
Products
  • Foreign Exchange Transactions
  • Overseas Remittances
  • Local Office Support
  • Trusts and Guarantees
  • Trade Letters of Credit

Securities and Investment Trust Sales

Overview
Expanding securities business in collaboration with Nomura Securities, a growth area.
Competitiveness
Consulting strength rooted in the local community
Customers
  • Individual Investors
  • Corporate Customers
  • Pension Funds
  • Asset Management Companies
  • Educational Institutions
Products
  • Investment Trusts
  • Stock and Bond Brokerage
  • Asset Management Consulting
  • M&A Advice
  • Risk Management

Human Resources Services

Overview
Addresses local human resource needs in collaboration with group companies.
Competitiveness
Reliability of bank affiliation and regional closeness
Customers
  • Local Companies
  • Public Organizations
  • Welfare Facilities
  • Educational Institutions
  • Small and Medium Enterprises
Products
  • Talent Referral
  • Dispatch Services
  • Recruitment Support
  • Training Programs
  • Labor Consulting

Leasing and Guarantee Services

Overview
Deploys multifaceted finance services to support customers.
Competitiveness
Flexible guarantee system and prompt response
Customers
  • Small and Medium Enterprises
  • Manufacturing
  • Commercial Facilities
  • Medical Institutions
  • Welfare Facilities
Products
  • Equipment Leasing
  • Guarantee Services
  • Credit Guarantees
  • Receivables Guarantees
  • Business Funding Support

Competitive Advantage

Strengths

  • Strong regional ties centered on Kagawa Prefecture
  • Wide-area branch network centered on Shikoku
  • Rich history and reliability
  • Ability to provide diverse financial products and services
  • Solid financial base and stable profitability
  • Collaboration with Nomura Securities in securities business
  • Business efficiency improvement through digitalization
  • Contribution to local economies as a wide-area regional bank
  • Advanced loan screening and risk management capabilities
  • Strong customer base as the main bank in the region
  • Multifaceted service deployment through consolidated subsidiaries
  • Participation in shared regional bank systems
  • International business support via overseas representative offices
  • Customer benefits from fee-free mutual ATM withdrawals
  • Preservation and utilization of historic buildings

Competitive Advantages

  • Overwhelming main bank share in Kagawa Prefecture
  • Wide-area branch network covering the Seto Inland Sea area
  • Stable financial position through prudent management
  • Strategic partnerships with major securities firms like Nomura Securities
  • Enhanced customer convenience through active introduction of digital technologies
  • Long-term partnerships with regional industries
  • Synergy effects with diverse consolidated subsidiaries
  • Efficiency gains from utilizing shared regional bank systems
  • Expansion strategy for Tokyo metropolitan lending as a wide-area regional bank
  • Development capabilities for financial products tailored to regional characteristics
  • Possession of overseas bases capable of handling international operations
  • Enhanced brand value through community coexistence activities
  • Comprehensive risk management system rooted in the region
  • Revenue stabilization through diversification of sales base
  • Provision of proven asset management and trust services

Threats

  • Market contraction due to population decline in regional economies
  • Net interest margin compression from prolonged low interest rates
  • Intense customer competition with rival regional banks
  • Changes in financial behavior of digital-native generations
  • Cost increase risks from strengthened regulations
  • New entries by major banks and fintech companies
  • Overseas business risks from uncertain international situations
  • Materialization of non-performing loan risks
  • Challenges in talent acquisition and development
  • Potential branch and system disruptions from disasters
  • Increasing cyber security threats
  • Potential loss of social trust

Innovations

2023: Business Alliance with Nomura Securities for Securities Operations

Overview
Strengthened business partnership with Nomura Securities in investment trust sales and securities services.
Impact
Promotes expansion of securities-related sales and broadening of customer base

2022: Expansion of Free Mutual ATM Usage Partnerships

Overview
Improved convenience through fee-free mutual ATM withdrawals with major regional banks.
Impact
Contributes to higher customer satisfaction

2021: Promotion of Regionally Rooted Digital Banking

Overview
Implemented mobile app renewal and enhanced internet banking convenience.
Impact
Acquires younger customers and increases usage rates

2025: Conclusion of Collaboration Agreement with Takamatsu Mitsukoshi

Overview
Strengthens regional collaboration through mutual service provision and employee exchanges.
Impact
Enhances regional brand power and expands customer base

2020: Launch of Shared Core Banking System 'Chance'

Overview
Began shared use of core banking system modeled after Mitsubishi UFJ Bank.
Impact
Reduces operating costs and improves business efficiency

2024: Establishment of Regional Revitalization Fund

Overview
Established a fund to support regional companies and began investments.
Impact
Promotes local industries and strengthens startup support

Sustainability

  • Strengthening economic circulation through regional industry support
  • Business improvements aimed at reducing environmental impact
  • Promotion of sustainable activities rooted in the community
  • Advancing women's empowerment and diversity
  • Business efficiency improvement and paperless promotion through digitalization
  • Social contributions through active CSR activities