Oita Bank

Basic Information

Stock Code
8392
Industry
Banking
Category Detail
Banks
Prefecture
Oita Prefecture
Establishment Year
February 1893
Listing Year
April 1973
Official Website
https://www.oitabank.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, Akita Bank, Iwate Bank, Fukuoka Financial Group, Hachijuni Bank, Fukui Bank, Shimizu Bank, Hyakujushi Bank, Awa Bank, Miyazaki Bank, Saga Bank, Ehime Bank, Kitanihon Bank

Overview

Oita Bank, founded in 1893 and based in Oita Prefecture, is the leading regional bank in the prefecture in terms of deposits and loans, providing solid financial services across a wide area.

Current Situation

In the fiscal year ended March 2020, Oita Bank recorded consolidated net profit of approximately ¥5 billion, capital of ¥19.5 billion, and total assets of approximately ¥3.39 trillion, maintaining a solid financial foundation. It operates branches mainly in the prefecture as well as in other Kyushu prefectures, Tokyo, and Osaka, holding the top market share through regionally focused financial services. Since 2013, it has utilized the NTT Data Regional Bank Shared Center system for stable core banking system operations. In terms of sustainability, it continues regional contribution activities, supports local businesses, and operates with consideration for reducing environmental impact. It is working to improve convenience through new store designs and ATM network development, while also strengthening its revenue base through diversification into subsidiaries' leasing, guarantee, and card businesses. Looking to the future, it focuses on management improvement support for regional SMEs and DX initiatives, aiming for sustainable growth and enhanced role in regional finance. Despite a challenging competitive environment in the regional banking industry, as the prefecture's only pure regional bank, it concentrates on contributions to the local community and stable management.

Trivia

Interesting Facts

  • Founded in 1893, a longstanding representative regional bank of Oita Prefecture.
  • Former head office building designed by Tatsuno Kingo, registered as a national tangible cultural property.
  • Rare bank with My Melody as its image character.
  • Convenient wide-area ATM usage through participation in Kyushu ATM Network.
  • Deploys branches in Tokyo and Osaka as a regional bank.
  • New 2015 Soryu-kan store designed by designer Mitooka Eiji.
  • Local contribution company holding naming rights for sports facilities.
  • First regional bank to launch a homepage in 1995.
  • Experience with replacement to NTT Data shared center system.
  • History of receiving business improvement orders from the Financial Services Agency in 2006 and 2007.
  • Possesses diversified group subsidiaries.
  • Contributed to post-war savings campaigns with products like 'Crane and Turtle Fixed Deposit.'
  • Pioneering welfare support with House of the Sun branch.
  • Credit card 'Melody Plus' derived from My Melody.
  • Operates representative office in Hong Kong for partial international expansion.

Hidden Connections

  • High regional brand affinity, especially among younger generations, through collaboration with My Melody.
  • Part of the network of multiple regional banks utilizing NTT Data Regional Bank Shared Center.
  • Strengthened linkages with multiple other banks via Kyushu ATM Network for regional financial institutions.
  • Contributes to regional sports promotion through naming rights for Oita Sports Park.
  • Historical implementation of one prefecture one bank principle through interwar bank mergers.
  • Experience of business improvement order from Financial Services Agency in 2000s contributed to internal control strengthening.
  • Historical pioneer in IT advancement as first regional bank to launch homepage.
  • Diversified group subsidiaries enable integrated finance, guarantee, and leasing operations.

Future Outlook

Growth Drivers

  • Deepening and reform of regionally focused financial services
  • Operational efficiency and customer service improvement through DX
  • Expansion of financial investments in SME support and regional revitalization
  • Diversification of financial products and brand strengthening
  • Rising demand for sustainable finance
  • Recovery of regional economy and measures against population decline
  • Seamless integration of ATMs and online banking
  • Growth promotion of diversified group businesses
  • Integrated collaboration strengthening with regional communities
  • Implementation of reformed corporate governance
  • Co-creation of new businesses with local companies
  • Enhancement of financial infrastructure disaster resilience

Strategic Goals

  • Establishment of position as core financial institution for regional economy
  • Improvement of digital banking ratio to over 50%
  • Expansion of new business revenue to 15% of total
  • Development and dissemination of financial products toward SDGs achievement
  • Stabilization of credit costs and promotion of non-performing loan risk reduction
  • Strengthening of investments in regional society and community support
  • Improvement of group management efficiency and revenue diversification
  • Achievement of nationally top-level customer satisfaction
  • Completion of employee-friendly work environment development
  • Advanced cybersecurity measures

Business Segments

SME Lending

Overview
Diverse financial services supporting local companies' funding and business growth.
Competitiveness
Builds long-term trust relationships regionally with strengths in risk management.
Customers
  • Local SMEs in Manufacturing
  • Construction Companies
  • Service Providers
  • Wholesalers
  • Retailers
  • Construction Firms
  • Local Government-Related Companies
  • Agriculture-Related Corporations
  • Restaurant Owners
  • Logistics Companies
Products
  • Working Capital Lending
  • Equipment Investment Lending
  • Bill Discounting
  • Project Finance
  • Revolving Loan
  • Credit Guarantee
  • Debt Guarantee
  • Leasing Services
  • Consulting
  • Overseas Business Support

Local Public Entity Support

Overview
Financial support for local governments' fiscal operations and public works.
Competitiveness
Deep understanding of regional policies and flexible funding adjustments
Customers
  • Oita Prefecture
  • Oita City
  • Fukuoka Prefecture-Related Organizations
  • Miyazaki Prefecture Local Governments
  • Kumamoto Prefecture Administrative Bodies
Products
  • Public Works Lending
  • Fiscal Support Loan
  • Cash Management Services
  • Bond Issuance Support

Corporate Asset Management and Payments

Overview
Supports corporate asset management and efficient payments.
Competitiveness
Specialized financial services for diverse industries
Customers
  • Local Companies
  • School Corporations
  • Medical Institutions
  • NPO Corporations
  • Public Organizations
Products
  • Corporate Deposits
  • Payroll Transfer Services
  • Account Payments
  • Internet Banking
  • Funding Consulting

Card-Related Services

Overview
Provides comprehensive card payment services for convenience.
Competitiveness
Regional closeness and brand power through Sanrio character collaboration
Customers
  • Individual Customers
  • Corporate Customers
  • Retailers
  • Merchants
  • SMEs
Products
  • Credit Card Issuance
  • Debit Cards
  • POS Payment Terminals
  • Points Program

Guarantee and Leasing Services

Overview
Services to strengthen corporate credit and support equipment procurement.
Competitiveness
One-stop service possible through collaboration with group subsidiaries
Customers
  • SMEs
  • Medical Institutions
  • Educational Institutions
  • Public Organizations
Products
  • Credit Guarantee Services
  • Equipment Leasing
  • OA Equipment Leasing
  • Guarantee Debt

Overseas Business Support

Overview
Leverages Hong Kong representative office to support overseas transactions.
Competitiveness
Specialized in supporting local companies' overseas expansion
Customers
  • Corporate Overseas Expansion Support
  • Trading Companies
  • Representative Offices
Products
  • Foreign Currency Deposits
  • Trade Finance
  • Foreign Exchange Transactions
  • Overseas Remittances

IT and System Services

Overview
IT infrastructure provision utilizing NTT Data Regional Bank Shared Center.
Competitiveness
Stable system operations and regionally focused support
Customers
  • Group Companies
  • Local Financial Institutions
  • Corporate Customers
Products
  • Core Banking System
  • Net Banking
  • Security Services
  • System Consulting

Real Estate Related Operations

Overview
Deploys real estate services linked with finance.
Competitiveness
Property introductions leveraging regional networks
Customers
  • Individual Customers
  • Real Estate Companies
  • Corporate Customers
Products
  • Real Estate Collateral Lending
  • Property Brokerage
  • Property Management
  • Investment Property Introductions

Education and Welfare Support Services

Overview
Financial services contributing to regional education and welfare expansion.
Competitiveness
Active social contributions such as operating the House of the Sun branch
Customers
  • Educational Institutions
  • Disability Support Facilities
  • Local Organizations
Products
  • Education Loans
  • Welfare-Related Lending
  • Local Government Collaboration Support

Local Events and Sports Support

Overview
Event and facility support aimed at regional revitalization.
Competitiveness
Brand penetration through Oita Bank Dome naming rights
Customers
  • Sports Organizations
  • Local Community
Products
  • Sports Facility Naming Rights
  • Local Event Sponsorship

Consulting Services

Overview
Provides management support beyond finance to a wide range of customers.
Competitiveness
Practical know-how utilized through regional closeness
Customers
  • SMEs
  • Startups
  • Local Governments
Products
  • Management Improvement Support
  • M&A Advisory
  • Funding Support

Competitive Advantage

Strengths

  • Strong customer base rooted in the region
  • Top share in prefecture deposits and loans
  • Comprehensive branch and ATM network
  • Stable financial base and capital adequacy ratio
  • Diversification through group subsidiaries
  • Advanced stable IT infrastructure operations
  • Excellent risk management system
  • Expertise specialized in regional finance
  • High-trust brand image
  • Extensive transaction history with local companies
  • Strengthened collaboration with local governments
  • Diverse range of financial products
  • High quality of customer service
  • Robust human resource development system
  • Customer response utilizing ADR etc.

Competitive Advantages

  • Exclusive position as the prefecture's only pure regional bank
  • Accumulation of long-term trust relationships closely tied to regional economy
  • One-stop provision of multifaceted financial services
  • Efficient operations achieved through IT system replacement
  • Wide-area convenience via ATM linkages with other Kyushu banks
  • Trust enhancement strategy centered on local social contributions
  • Regional penetration and familiarity of proprietary brand cards
  • Customized support for diverse industries
  • Know-how in regional business support linked with public aid
  • Broad group operations from finance to real estate and leasing
  • Management base enabling fast and stable fund circulation
  • Provision of regionally focused management consulting
  • Flexible collaboration system with new businesses and subsidiaries
  • Product development capabilities suited to regional characteristics
  • Brand strengthening through local events and sports support

Threats

  • Decline in deposit and loan demand due to population decrease and aging
  • Profit pressure from prolonged low interest rate environment
  • Competitive decline from delayed digitalization
  • Intensifying competition with city banks and online banks
  • Risk of profit decline from sharp increase in credit costs
  • Concerns over increased non-performing loans due to weak regional economy
  • Regulatory tightening and compliance risks
  • Damage to branches and systems from natural disasters
  • Exchange rate risks from overseas economic fluctuations
  • Delayed response to financial technology innovations
  • Transaction shrinkage from aging customer base
  • Bankruptcy risk of client companies

Innovations

2024: DX Promotion for Customer Service Enhancement

Overview
Expands AI chatbots and online consultation functions to improve convenience.
Impact
Contributes to higher customer satisfaction and operational efficiency

2023: Establishment of Regional Revitalization Fund

Overview
Establishes venture investment fund to support growth of regional companies.
Impact
Strengthens funding support for local startups

2022: Cashless Payment Reinforcement Measures

Overview
Focuses on introduction and expansion of Visa debit and electronic money services.
Impact
Successfully increases users and acquires new customers

2021: Migration to NTT Data Regional Bank Shared Center

Overview
Migrates core banking system to shared center to improve operational efficiency.
Impact
Reduces system failures and management costs

2020: Introduction of Online Loan Review System

Overview
Develops system for rapid online reviews targeted at SMEs.
Impact
Significantly shortens time to loan execution

2024: Advancement of Regional Financial Digital Collaboration

Overview
Strengthens Kyushu ATM network linkages and expands digital services.
Impact
Contributes to improved inter-regional transaction convenience

2023: Development of Sustainable Finance Products

Overview
Provides renewable energy-related lending and environmentally considerate products.
Impact
Successfully develops environmentally conscious customer segments

2022: Refresh of New Store Designs

Overview
Improves customer experience through Soryu-kan installations and modernization of stores.
Impact
Achieves increase in store visitors

2021: Promotion of Remote Work and IT Infrastructure Strengthening

Overview
Advances business digitalization in response to COVID-19.
Impact
Contributes to employee work-life ease and productivity improvement

2020: Expansion of Credit Card Brand Melody Plus

Overview
Promotes usage of card featuring My Melody imagery.
Impact
Improves customer loyalty and brand recognition

Sustainability

  • Implementation of financial education programs in collaboration with local communities
  • Promotion of energy-saving measures in branches and administrative centers
  • Reduction of paper resources through digital banking utilization
  • Expansion of environmentally considerate products
  • Promotion of diversity and inclusion
  • Strengthening of regional disaster support systems
  • Support for fostering sustainable regional economies
  • Promotion of participation in local volunteer activities
  • Donations and volunteer activities for child-rearing support and welfare groups
  • Emphasis on employees' work-life balance
  • Introduction of environmental and social evaluation criteria for clients
  • Development of green finance products