Kochi Bank

Basic Information

Stock Code
8416
Industry
Banking
Category Detail
Banks
Prefecture
Kochi Prefecture
Establishment Year
January 1930
Listing Year
March 2006
Official Website
https://www.kochi-bank.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, Daiko Bank, Minami Nippon Bank, Daito Bank

Overview

Kochi Bank is a core regional bank primarily operating in the Shikoku region, established in 1930, and is a second-tier regional bank with strengths in community-based financial services.

Current Situation

Kochi Bank had 770 consolidated employees as of March 2022 and operates approximately 72 branches across the four Shikoku prefectures, Okayama, Osaka, and Tokyo. Financially, it maintains outstanding loans of approximately ¥682.3 billion and deposits of approximately ¥901.6 billion, establishing a solid regional financial foundation. It emphasizes support for the local economy through comprehensive collaboration agreements and regional revitalization funds, focusing on promoting local industries. In IT investments, it has improved operational efficiency by introducing the core banking system NEXTBASE and enhanced user convenience by supporting instant account settlement services. Having overcome its history of public fund injections, it has successfully strengthened its management foundation and is promoting SDG initiatives and workforce diversification. Moving forward, it aims for efficient sales expansion and sustainable regional social contributions, with deepening regional collaborations and digitalization support as key pillars of its growth strategy.

Trivia

Interesting Facts

  • Founded as Kochi Mujin Co., Ltd.
  • Has history of public funds injection in 2009
  • Shikoku regional bank listed on Tokyo Stock Exchange Prime Market
  • Prime example of community-oriented second-tier regional bank with out-of-prefecture branches
  • Operating funds in collaboration with the Japan Regional Economy Vitalization Corporation
  • Promoted from Tokyo Stock Exchange Second Section to Prime in 2013
  • Enhanced linkages with other regional financial institutions via comprehensive agreements
  • Demonstrates advancement through Lawson Bank instant settlement participation

Hidden Connections

  • Operates branches across all Shikoku prefectures, serving as indispensable regional financial infrastructure
  • Background of reconstruction under Financial Services Agency oversight as part of national public funds policy
  • Actively participates in local revitalization networks centered on regional financial institutions
  • Advances joint projects via collaborations with multiple regional banks and credit unions
  • Contributes to regional culture and sports promotion through local foundations

Future Outlook

Growth Drivers

  • Strengthening support for Shikoku regional industries
  • Further expansion of digital banking
  • Growing demand for community-based financial services
  • Regional economic revitalization via collaboration funds
  • Sophistication and diversification of SME financing
  • Business efficiency via financial technology adoption
  • Proactive response to local revitalization initiatives
  • 开拓 new customer segments and youth acquisition
  • Expanded financial support for decarbonized society
  • Service development aiding regional population decline countermeasures

Strategic Goals

  • Providing comprehensive financial services contributing to regional economic revitalization
  • Advancing digitalization to improve customer convenience
  • Establishing and reinforcing sustainable management foundation
  • Securing diverse talent and promoting organizational diversity
  • Expanding and deepening regional collaboration networks
  • Strengthening environmental, social, and governance (ESG) initiatives
  • Achieving full independence from public funds and enhancing trust
  • Developing and deploying new financial products and services
  • Advancing cyber security measures
  • Supporting financial literacy improvement in the regional community

Business Segments

Corporate lending and financing support

Overview
Proposes diverse lending products to support the business growth of regional companies.
Competitiveness
Flexible and rapid loan screening closely attuned to local industries
Customers
  • Small and medium-sized enterprises
  • Local industries
  • Agriculture, forestry, and fisheries operators
  • Commercial and industrial operators
  • Startup companies
  • NPOs
  • Municipal-related corporations
  • Real estate operators
  • Construction operators
  • Retail businesses
Products
  • Working capital loans
  • Equipment fund loans
  • Real estate collateral financing
  • Low-interest loans
  • Government subsidy-linked financing
  • Credit guarantee-backed loans
  • Cash flow support
  • Business loans
  • Cloud factoring
  • Leasing finance

Corporate settlement and banking transaction services

Overview
Settlement solutions supporting efficient transaction operations for corporations.
Competitiveness
Customizable settlement functions adapted to regional characteristics
Customers
  • Small and medium-sized enterprises
  • Government agencies
  • Chambers of commerce
  • School corporations
  • Medical institutions
  • Public interest corporations
  • Logistics companies
  • Manufacturing businesses
  • Service businesses
  • IT companies
Products
  • Corporate ordinary deposits
  • Payroll transfer services
  • Direct debit services
  • Electronic payment services
  • Internet banking
  • Corporate card issuance
  • Bill and check transactions
  • Overseas remittance services
  • Funds settlement services
  • ATM usage services

Asset management and investment trust services

Overview
Promotes customers' asset formation through comprehensive asset management support.
Competitiveness
Community-rooted meticulous consulting framework
Customers
  • Small and medium-sized enterprise owners
  • Municipal employees
  • Elderly individuals
  • General investors
  • Corporate customers
  • Sole proprietors
  • Doctors and professionals
  • Retirees
  • Family offices
  • Education-related organizations
Products
  • Investment trust sales
  • Pension fund management
  • Insurance product proposals
  • Asset formation consultations
  • Wealth management services
  • Risk hedging products
  • NISA account opening support
  • Inheritance planning consulting
  • Long-term management plans
  • Fund wraps

Regional collaboration and economic revitalization support

Overview
Implements diverse collaborative support aimed at regional economic revitalization.
Competitiveness
Comprehensive support tailored to regional challenges
Customers
  • Local governments
  • Commerce and industry groups
  • Local companies
  • Universities and research institutions
  • Regional NPOs
  • Tourism organizations
  • Agricultural groups
  • Shopping street promotion unions
  • Small and medium-sized enterprise support organizations
  • Local public bodies
Products
  • Regional revitalization funds
  • Joint project investments
  • Startup support financing
  • Regional event sponsorships
  • Management support seminars
  • Industry-academia collaboration promotion
  • Regional economic surveys
  • Financial education programs
  • Employment creation support
  • Local revitalization support

Leasing and card services

Overview
Supports business with diverse leasing and card services.
Competitiveness
Flexible service provision rooted in the local community
Customers
  • Small and medium-sized enterprises
  • Sole proprietors
  • General consumers
  • Educational institutions
  • Medical institutions
  • Construction businesses
  • Logistics businesses
  • Manufacturing businesses
  • Sales businesses
  • Service businesses
Products
  • Equipment leasing
  • Vehicle leasing
  • Credit cards
  • Debit cards
  • Prepaid cards
  • Leasing contract management
  • Asset acquisition support
  • Card payment solutions
  • Points programs
  • Electronic money linkages

Financial systems and IT services

Overview
Supports operational efficiency with cutting-edge financial IT services.
Competitiveness
Extensive financial industry expertise and proven system operation record
Customers
  • Financial institutions
  • Small and medium-sized enterprises
  • IT vendors
  • Government agencies
  • Educational institutions
  • Medical institutions
  • Retail businesses
  • Logistics businesses
  • Manufacturing businesses
  • Service businesses
Products
  • Core banking system operations
  • Internet banking systems
  • Security measures
  • System consulting
  • Digital transformation support
  • Cloud services
  • Data analysis solutions
  • IT outsourcing
  • System maintenance management
  • Application development

Competitive Advantage

Strengths

  • Community-based sales foundation
  • Broad branch network
  • Regional linkages via comprehensive collaboration agreements
  • Efficiency gains from core system renewal
  • Proven track record of recovery from public funds injection
  • Diverse financial products and services
  • Solid financial foundation
  • Regional economic revitalization support framework
  • Established talent development programs
  • Advanced digital banking implementation

Competitive Advantages

  • Unique network spanning four Shikoku prefectures plus Kinki and Kanto regions
  • Provision of custom financial products responsive to regional challenges
  • Integrated service framework from funding to asset management
  • Fund establishment and collaborations for regional economic promotion
  • Highly trustworthy screening based on extensive operational experience
  • Robust management base recovered from public funds injection
  • Credit strength as a Tokyo Stock Exchange Prime-listed regional bank
  • Services supporting digital lending and instant settlements
  • Stable customer base from strong community ties
  • One-stop sales of diverse financial and non-financial services

Threats

  • Intensifying competition from major banks and internet banks
  • Population decline and rural depopulation in the regional economy
  • Profit squeeze from low interest rate policies
  • External uncertainties including novel coronavirus
  • Risk of performance deterioration in regional SMEs
  • Lagging adaptation to rapid digital technology advancements
  • Rising business costs from regulatory tightening
  • Cyber attack and data leak risks
  • Risk of loans turning non-performing
  • Impacts from local government fiscal instability

Innovations

2021: Participation in Lawson Bank instant account settlement service

Overview
Joined Lawson Bank's instant account settlement service to improve convenience for regional customers.
Impact
Significantly enhanced ATM user convenience

2020: Business efficiency improvement via core banking system NEXTBASE introduction

Overview
Introduced the latest core banking system NEXTBASE, achieving faster processing and reduced operating costs.
Impact
20% business efficiency improvement, cost reductions achieved

2022: Agreement signed for foreign talent recruitment support

Overview
Entered agreement to support foreign talent hiring to address regional labor shortages.
Impact
Promotes alleviation of labor shortages for regional companies

Sustainability

  • Established regional economic revitalization fund for local creation
  • Enhanced financial education and awareness activities for local residents
  • Expanded support and financing for renewable energy
  • Promoting in-house energy savings and paperless operations
  • Advancing diversity through diverse talent recruitment and development