Nagoya Bank

Basic Information

Stock Code
8522
Industry
Banking
Category Detail
Banks
Prefecture
Aichi Prefecture
Establishment Year
February 1949
Listing Year
October 1961
Official Website
https://www.meigin.com/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Iyogin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Sanju-san Financial Group, Hirogin Holdings, Juroku Financial Group, Aichi Financial Group, Chiba Bank, Gunma Bank, Fukuoka Financial Group, Hachijuni Bank, Yamanashi Chuo Bank, Ogaki Kyoritsu Bank, Hyakugo Bank, Tottori Bank, Hyakujushi Bank, Shikoku Bank, Ehime Bank

Overview

Nagoya Bank is a community-based second-tier regional bank founded in 1949, with a strong foundation centered in Aichi Prefecture and throughout the Tokai region, offering financial services specialized in supporting the local economy.

Current Situation

Nagoya Bank recorded consolidated net profit of 4.625 billion yen for the fiscal year ended March 2020, securing the next largest market share in Aichi Prefecture after major banks through its community-focused sales approach. It operates branches in Aichi, Gifu, and Shizuoka Prefectures, Tokyo, and Osaka City, with 112 branches nationwide, and has a Nantong branch and Shanghai representative office to expand international operations. To strengthen support for the local economy and SMEs, it established an investment subsidiary in 2020 to offer new financial services such as business succession support. In 2021, it became the first second-tier regional bank to commence trust banking operations, aiming to expand its business, while advancing a comprehensive business alliance with Shizuoka Bank to pursue system sharing and operational efficiency improvements. It has enhanced convenience with fee-free mutual ATM usage, instant account settlement services, and the introduction of new passbooks. It is deepening collaboration with regional financial institutions to strengthen community-based financial services. Moving forward, it aims for sustainable growth while meeting the needs of the local community.

Trivia

Interesting Facts

  • Has produced multiple chairmen of the Second Regional Banks Association
  • Boasts the second-largest deposit share in Aichi Prefecture after major banks
  • Pioneer as the first second-tier regional bank to commence trust operations
  • Operates a local branch in Nantong, China, advancing Asian expansion
  • Strengthened card business through full ownership of Nagoya Card
  • Achieved operational efficiency through comprehensive alliances with multiple regional banks
  • Provides internet banking service 'bankstage'
  • Significantly improved customer convenience via fee-free mutual ATM partnerships
  • Maintains long history and trust in regional finance since founding in 1949
  • Focuses on supporting local SMEs to contribute to regional economic revitalization
  • Began handling new 'Hi-Co Passbook' from 2024
  • Early participation in Lawson Bank's settlement service to enhance convenience
  • Established investment subsidiary to fully commit to business succession support
  • Employs Azusa Audit Corporation as auditing firm
  • Improved sales efficiency through migration to latest online system

Hidden Connections

  • Handles many transactions related to major local company Toyota Motor Corporation
  • Influenced by major life insurance companies as key shareholders
  • Strengthened financial collaboration in Tokai region through alliance with Shizuoka Bank
  • One of the few regional banks with a local presence in the small Chinese market
  • Implements mutual ATM usage agreements with alliance partners Juroku Bank and Aichi Bank
  • Strengthened ties with 'Meigin Minori-kai' comprising financial institutions and local residents
  • Shareholder composition includes major city banks such as Sumitomo Mitsui Banking and Mizuho Bank
  • Traditionally cautious management posture balancing regional contributions and stability

Future Outlook

Growth Drivers

  • Transaction expansion accompanying growth of local SMEs
  • Cost reduction effects from strengthened regional financial collaborations
  • Expansion and increased usage of digital banking services
  • New revenue from growth in trust operations
  • Growth in East Asian markets through strengthened international business
  • Corporate support utilizing business succession fund
  • Sustainable finance addressing environmental and social issues
  • Customer base expansion through non-face-to-face services
  • Revenue diversification via strengthened settlement services
  • Increased demand for asset management services in aging society
  • Improved convenience through ATM network enhancements
  • Regional contributions through partnerships with local governments

Strategic Goals

  • Maintain and expand market share as a community-based second-tier regional bank
  • Expand revenue ratio from trust operations and investment products to over 20%
  • Operational efficiency using digital and fintech technologies
  • Develop financial services supporting regional environmental and economic sustainability
  • Build comprehensive financial platform addressing diverse customer needs
  • Maintain stable financial base and optimize capital efficiency
  • Strengthen collaborations with Shizuoka Bank and other regional financial institutions
  • Enhance organizational strength through next-generation leader development and workstyle reforms
  • Improve brand value through comprehensive regional contribution activities
  • Expand global revenue sources through overseas development

Business Segments

Financial Services for SMEs

Overview
Supports the growth of local SMEs from a financial perspective and contributes to management stability.
Competitiveness
Meticulous service provision closely tied to the local community
Customers
  • Medium and small manufacturing companies
  • Wholesalers
  • Retail chains
  • Service providers
  • Construction companies
  • Logistics companies
Products
  • Business financing
  • Working capital loans
  • Equipment investment loans
  • Cash flow support
  • Credit guarantees
  • Lease financing

Corporate Investment Trusts and Asset Management

Overview
Provides diverse investment products and asset management services for corporations.
Competitiveness
Investment advice rooted in the local market
Customers
  • Corporate customers
  • Local governments
  • Public interest corporations
  • Group pension funds
Products
  • Investment trusts
  • Bonds
  • Risk management products
  • Asset management consulting

Trust Business

Overview
Trust services launched in 2021 to support asset management and operations for customers.
Competitiveness
First trust operations among second-tier regional banks
Customers
  • Individual customers
  • Corporate customers
  • Customers needing inheritance planning
Products
  • Will trusts
  • Real estate trusts
  • Asset management trusts
  • Pension trusts

Financial IT Solutions

Overview
Provides advanced system operation services for financial institutions.
Competitiveness
Establishment of new core online systems
Customers
  • Financial institutions
  • Local governments
  • SMEs
Products
  • Core banking system development
  • Online banking systems
  • Security services

International Business and Overseas Expansion Support

Overview
Strengthens international operations through its Nantong branch and Shanghai representative office in China.
Competitiveness
Network closely tied to East Asia
Customers
  • Import/export companies
  • Companies expanding overseas
  • Local SMEs
Products
  • Overseas remittances
  • Trade finance
  • Overseas expansion consulting

Business Succession Support

Overview
Utilizes Nagoya Capital Partners to support smooth business succession.
Competitiveness
Full-scale support system through dedicated fund establishment
Customers
  • SME owners
  • Successor candidates
Products
  • Business succession consulting
  • Funding support
  • M&A brokerage

Securities and Asset Management Services

Overview
Provides comprehensive services to meet asset management needs through affiliates.
Competitiveness
One-stop service through group collaboration
Customers
  • Individual investors
  • Corporate customers
  • Asset management companies
Products
  • Securities brokerage
  • Asset management
  • Investment advice

Card Services

Overview
Offers diverse card services centered on Nagoya Card and Nagoya MC Card.
Competitiveness
Community-based customer support system
Customers
  • Individual customers
  • Corporate customers
  • Partner stores
Products
  • Credit card issuance
  • Settlement services
  • Points programs

Real Estate Related Services

Overview
Provides community-based real estate financial services to meet diverse needs.
Competitiveness
Proposal capabilities based on local information
Customers
  • Real estate owners
  • Developers
  • Corporate customers
Products
  • Real estate trusts
  • Real estate collateral financing
  • Real estate management services

ATM Operations and Settlement Services

Overview
Improves convenience through joint ATM operations and partnership with Lawson Bank.
Competitiveness
Strength of regional network
Customers
  • Local customers
  • Partner financial institutions
  • Convenience store companies
Products
  • Joint ATM operations
  • Instant account settlement services
  • Electronic money charging

Competitive Advantage

Strengths

  • Strong community focus with solid base in Aichi Prefecture
  • 4th largest among second-tier regional banks
  • Diverse financial service provision capabilities
  • International operations through overseas (China) expansion
  • Pioneering introduction of trust operations
  • Operational efficiency through comprehensive business alliances
  • 112 branches and extensive ATM network
  • Advanced online banking system
  • Robust card services
  • Financial support for diverse customer segments
  • Business succession support via investment subsidiary
  • ATM sharing through regional collaboration
  • Long-term stable management foundation
  • Industry leadership as chairman of the Second Regional Banks Association
  • Financial base with capital exceeding 25 billion yen

Competitive Advantages

  • Specialization in Aichi regional economy with deep customer relationships
  • Differentiation as first second-tier regional bank to offer trust operations
  • Cost reductions and service improvements via comprehensive alliance with Shizuoka Bank
  • Strengthened settlement business through full ownership of Nagoya Card
  • International network via local operations in Greater China
  • Group synergies through diverse subsidiaries
  • Management stability and credibility from top-tier scale in the industry
  • Advanced online and mobile banking rollout
  • Improved customer convenience through fee-free ATM partnerships
  • Differentiation via dedicated fund for business succession support
  • Flexible response to customer needs with broad financial product lineup
  • Strong financial support system for local SMEs
  • Corporate governance as an audit and supervisory committee company
  • Long-term brand image and track record of regional contributions
  • Stable funding capabilities through diverse financing methods

Threats

  • Intensifying competition in the regional banking market
  • Risk of regional economic contraction due to population decline
  • Profit pressure from low interest rate environment
  • Increased system development costs due to digitalization
  • Competition with major megabanks
  • Business constraints from strengthened regulations
  • Regional economic deterioration due to natural disasters
  • Rising credit risk
  • Exchange rate and regulatory risks associated with overseas operations
  • Challenges in acquiring new customers
  • Impact from emerging fintech companies
  • Loan loss risks due to real estate market fluctuations

Innovations

2024: Strengthened Comprehensive Business Alliance with Shizuoka Bank

Overview
Promoting operational efficiency improvements through customer support and system sharing.
Impact
Achieved cost reductions and improved service quality

2023: Launch of Fee-Free Joint ATM Operations

Overview
Initiated mutual fee-free ATM usage partnership with Shizuoka Bank.
Impact
Significantly improved customer convenience

2022: Full Ownership of Nagoya Card

Overview
Strengthened card business and focused on expanding settlement services.
Impact
Diversified revenue base and enhanced community-based services

2021: Approval for Trust Banking Operations

Overview
Became the first second-tier regional bank to commence trust operations.
Impact
Expanded new revenue sources and customer need fulfillment

2021: Migration to New Core Online System

Overview
Upgraded to the latest system to improve operational efficiency and security.
Impact
Achieved faster transactions and reduced disruptions

2020: Establishment of Nagoya Capital Partners

Overview
Strengthened support framework by establishing a dedicated business succession fund.
Impact
Contributed to advanced SME support and revenue diversification

2020: Participation in Instant Account Settlement Service

Overview
Joined Lawson Bank's instant account settlement service, linking with 'au PAY'.
Impact
Improved user convenience and strengthened cashless capabilities

2024: Introduction of Hi-Co Passbooks

Overview
Began offering highly durable passbooks resistant to magnetic interference.
Impact
Improved customer satisfaction and reliability

Sustainability

  • Supporting regional community revitalization to promote sustainable local economy
  • Efficient use of paper resources and promotion of digitalization to reduce environmental impact
  • Contributing to financial literacy through regional financial education programs
  • Job creation and economic foundation strengthening through local SME support
  • Enhancing regional resilience by preparing financial support systems for disasters