Awa Bank

Basic Information

Stock Code
8388
Industry
Banking
Category Detail
Banks
Prefecture
Tokushima Prefecture
Establishment Year
June 1896
Listing Year
May 1970
Official Website
https://www.awabank.co.jp/
TSE Information
TSE Information
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Overview

Awa Bank is a regional bank founded in 1896 with its base in Tokushima Prefecture. It operates in the Kansai and Kanto regions and conducts solid management as a local financial institution.

Current Situation

Awa Bank holds the largest share in Tokushima Prefecture and operates 99 branches. It has actively expanded into the Kansai and Kanto regions up to 2023, increasing its branch network. As of 2016, its capital was 23.4 billion yen and net profit reached approximately 12.6 billion yen, maintaining a solid financial foundation. It maintains a close relationship with Mitsubishi UFJ Financial Group, providing various financial services such as support for local small and medium-sized enterprises and handling of public bonds. In 2019, it invested approximately 2.9 billion yen to establish a new head office sales department, contributing to regional revitalization. Additionally, since 2020, it has integrated securities-related product intermediary services with Nomura Securities to build a new revenue base. In the medium to long term, as a member of the Shikoku Alliance, it contributes to local revitalization, promotes digitalization and regional contribution activities. Moving forward, it aims for regional economic development and sustainable growth.

Trivia

Interesting Facts

  • Long-established regional bank founded in 1896.
  • Boasts the largest number of branches and deposits in Tokushima Prefecture.
  • Close partnership with Mitsubishi UFJ Financial Group.
  • New head office sales department features a gallery and coworking space.
  • Contributes to local revitalization as a Shikoku Alliance member.
  • Expanding into Kanto region and increasing sales bases.
  • Implementing elevated branch designs for efficiency.
  • Provides diverse financial services deeply rooted in the regional economy.
  • Handling public bond over-the-counter services for over 70 years.
  • Securities services offered through partnership with Nomura Securities.
  • Contributes to regional convenience via free mutual ATM partnerships.
  • Actively promotes local culture and history.
  • Unusually for a regional bank, featured Nogizaka46 in card loan CM.
  • Previously operated a New York office.
  • Employee stock ownership plan exists.

Hidden Connections

  • Mitsubishi UFJ Group, with close ties, provides strong support in funding and transactions.
  • Otsuka Pharmaceutical, a major local company, is involved as a major shareholder.
  • Forms collaborative framework with 4 Shikoku regional banks through free mutual ATM withdrawals.
  • Actively supports Tokushima's traditional industries and cultural activities.
  • Securities business strengthened through partnership with Nomura Securities.
  • Acquired naming rights for Tokushima Prefectural Cultural Hall, contributing to regional culture promotion.
  • As part of branch expansion, established corporate sales departments in Kansai and expanding to Kanto.
  • Adopts branch-in-branch approach retaining ATM corners during consolidations to maintain customer convenience.

Future Outlook

Growth Drivers

  • Market expansion in Kansai and Kanto regions
  • Promotion and strengthening of digital financial services
  • Support for sustainable regional economic growth
  • Active participation in local revitalization
  • Diversification of asset management services
  • Strengthened consulting for SMEs
  • Enhanced PR activities linked to regional culture
  • Strengthened ESG (Environmental, Social, Governance) initiatives
  • Product development for new customer acquisition
  • Promotion of nationwide regional financial collaborations
  • Expansion of non-face-to-face transactions
  • Efficiency improvements using advanced technologies

Strategic Goals

  • Strengthen leadership in Shikoku Alliance
  • Achieve 80% digital banking utilization rate
  • Increase outstanding loans to regional economy by 20%
  • ESG-related product sales ratio over 30%
  • Acquire over 500 new loan cases
  • Strengthen CSR activities for sustainable growth
  • Optimize branch functions and improve customer convenience
  • Expand multifaceted asset management services
  • Establish dedicated teams for SME support
  • Contribute to eliminating financial disparities in the region

Business Segments

Corporate Lending

Overview
Provides diverse loan products and funding support to companies across a wide range of industries.
Competitiveness
Detailed screening and prompt response based on close regional ties
Customers
  • Small and Medium Enterprises
  • Manufacturing
  • Services
  • Construction
  • Medical Institutions
  • Agriculture, Forestry and Fisheries
  • Local Governments
  • Educational Institutions
  • Chambers of Commerce
  • NPOs
Products
  • Working Capital Loans
  • Equipment Funds Loans
  • Credit Guarantee Loans
  • Bill Discounting
  • Real Estate Collateral Loans
  • Project Finance
  • Business Loans
  • IPO Support
  • Subsidy-related Loans
  • Lease Finance

Asset Management and Securities Services

Overview
Comprehensive asset management and securities intermediation services through partnership with Nomura Securities.
Competitiveness
Investment proposal capabilities closely tied to local affluent clients
Customers
  • Individual Investors
  • Corporate Clients
  • Asset Management Companies
  • Trust Banks
  • Fund Managers
  • Pension Funds
  • Local Governments
  • Securities Brokers
  • Foundations
  • Inheritance Consultants
Products
  • Investment Trust Intermediation
  • Stock and Bond Trading
  • Asset Management Consulting
  • Fund Formation Support
  • Pension Asset Management
  • M&A Advisory
  • Inheritance Planning
  • Tax Consulting
  • Securities Account Management
  • Financial Planning

Consulting and Guarantee Services

Overview
Provides consulting and guarantee services for corporate management challenges.
Competitiveness
Practical support tailored to regional characteristics
Customers
  • Small and Medium Enterprises
  • New Entrepreneurs
  • Real Estate Companies
  • Financial Institutions
  • Local Governments
  • Commercial Cooperatives
  • Venture Companies
  • Financial Consultants
  • SME Support Organizations
  • NPOs
Products
  • Credit Guarantee Operations
  • Management Consulting
  • Financial Analysis Services
  • Corporate Restructuring Support
  • Risk Management
  • IT Introduction Support
  • Fund Planning
  • Business Succession Support
  • Subsidy Application Support
  • Environmental Compliance Support

Leasing and Card Services

Overview
Supports corporate funding through diverse leasing and card services.
Competitiveness
Flexible product design and deep understanding of local businesses
Customers
  • Manufacturing
  • Retail
  • Food and Beverage
  • Medical Institutions
  • Educational Institutions
  • Sole Proprietors
  • Small and Medium Enterprises
  • Local Governments
  • Services
  • Construction
Products
  • Equipment Leasing
  • Vehicle Leasing
  • Credit Card Issuance
  • Corporate Card Services
  • Card Loan Services
  • Finance-type Leasing
  • Consumer Finance
  • Auto Leasing
  • Information System Leasing
  • Capital Investment Support

Digital Financial Services

Overview
Delivers highly convenient financial services using the latest IT technologies.
Competitiveness
Advanced digitalization efforts despite being a regional bank
Customers
  • Individual Customers
  • Corporate Customers
  • Seniors
  • Younger Generation
  • Local SMEs
  • E-commerce Businesses
  • Freelancers
  • Students
  • Local Governments
  • Medical and Welfare Facilities
Products
  • Online Banking
  • Mobile Banking
  • Cloud Accounting
  • Fintech-linked Services
  • Electronic Payment Services
  • Smart Loans
  • Online Account Opening
  • Digital Asset Management
  • AI Chat Support
  • Security Services

Competitive Advantage

Strengths

  • Top market share in Tokushima Prefecture
  • Aggressive expansion into Kansai and Kanto regions
  • Strong partnership with Mitsubishi UFJ Financial Group
  • Regionally embedded management based on long history
  • Advanced customer service and diverse financial products
  • Extensive branch network and ATM linkages
  • Solid financial foundation
  • Deep understanding of regional economy
  • Strengthened asset management through securities partnerships
  • Track record in public bonds and credit guarantees
  • Regional revitalization support via new head office
  • Digitalization initiatives
  • Abundant corporate services
  • Trust as a regional financial institution
  • Comprehensive training and talent development

Competitive Advantages

  • Maintains largest number of sales locations and customer base in Tokushima Prefecture
  • Market expansion through strengthened sales in Kansai and Kanto areas
  • High-quality financial services via collaboration with Mitsubishi UFJ Group
  • Comprehensive financial solutions for regional companies
  • Expanded handling of securities and investment trust products
  • Meticulous customer service leveraging regional characteristics
  • Proven track record and reliability in public bond over-the-counter sales
  • Improved customer satisfaction through unique branch operation strategies
  • Advanced online and mobile services
  • Enhanced regional collaboration through participation in Shikoku Alliance
  • Active contributions to local community and CSR activities
  • Flexible funding support services
  • Customer engagement promotion via public spaces in new head office sales department
  • Regional consulting capabilities
  • Financial product development contributing to regional economic growth

Threats

  • Intensifying competition among regional banks
  • Risk of low regional economic growth
  • Decline in deposits and loan demand due to population decrease
  • Profit margin compression from low interest rate environment
  • Lagging digital financial services
  • Competition from major banks and fintech companies
  • Impact of natural disasters on regional economy
  • Increased operational costs from stricter financial regulations
  • Rising credit risk
  • Risk of deteriorating performance in client companies
  • Customer loss from branch consolidations
  • Foreign exchange fluctuations (in case of overseas transactions)

Innovations

2020: Launch of Comprehensive Partnership with Nomura Securities

Overview
Integrated securities-related product intermediation services to strengthen asset management.
Impact
Contributes to expansion of asset management business and diversification of customer base

2023: Establishment of New Kansai Corporate Sales Department

Overview
Opened a new branch to strengthen corporate sales structure in the Kansai region.
Impact
Improved corporate customer development in the Kansai area

2024: Expansion of Digital Banking Functions

Overview
Improved convenience and security of online and mobile banking.
Impact
Enhanced customer satisfaction and increased non-face-to-face transaction ratio

2022: Opening of New Head Office Sales Department

Overview
Established a new head office sales department with public spaces in Higashishinmachi, Tokushima City.
Impact
Promotes regional interaction and enhances customer services

2021: Expansion of Free ATM Withdrawal Partnerships

Overview
Implemented fee-free mutual ATM usage with 4 regional banks in Shikoku.
Impact
Improved customer convenience and strengthened regional financial collaboration

Sustainability

  • Promoting regional revitalization through strengthened ties with local communities
  • Advancing environmentally considerate store designs
  • Signing mutual support agreements for disasters
  • Promoting paper resource reduction through digitalization
  • Supporting sustainable growth via regional business revitalization