Tochigi Bank

Basic Information

Stock Code
8550
Industry
Banking
Category Detail
Banks
Prefecture
Tochigi Prefecture
Establishment Year
December 1942
Listing Year
October 1982
Official Website
https://www.tochigibank.co.jp/
TSE Information
TSE Information
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Overview

Tochigi Bank is a second-tier regional bank founded in 1942, operating primarily in northern Kanto, providing reliable community-based financial services to small and medium-sized enterprises and individuals.

Current Situation

In fiscal 2023, Tochigi Bank had outstanding loans of approximately 1.845 trillion yen and deposits of approximately 2.5696 trillion yen, with a strong regional foundation and stable earnings structure. Centered in Tochigi Prefecture, it has expanded its branch network across Saitama, Gunma, Ibaraki, and Tokyo prefectures, focusing on retail transactions with local SMEs and individual customers. In 2017, it made Utsunomiya Securities a subsidiary, expanding financial product handling and strengthening asset management services. By introducing its proprietary core banking system NEXTBASE, it has improved operational efficiency and partnered with new financial services such as Lawson Bank. In recent years, it has signed multiple comprehensive agreements with local governments to revitalize the regional economy and focus on community contributions. Looking ahead, it aims for sustainable growth by adapting to changing regional financial needs, with further promotion of fintech and cashless payments in view. It is expected to solidify its position as a stable regional financial leader in northern Kanto through unique reinforcement strategies and diversification of financial services.

Trivia

Interesting Facts

  • Founded in 1942 by the merger of three mutual loan companies.
  • Major second-tier regional bank with extensive branch network in northern Kanto.
  • Early participant in Lawson Bank's instant account settlement service.
  • Made Utsunomiya Securities a subsidiary and focusing on securities business.
  • Actively contributes to region through multiple comprehensive agreements with local governments.
  • Promoting operational efficiency with NEXTBASE core system introduction.
  • Multifaceted financial firm also handling pensions and defined contribution pensions.
  • Approximately 90 branches with high regional closeness.
  • Specializes in trade credit and cash flow support for local SMEs.
  • Veteran bank known by regional financial institution code 0517.
  • High evaluation from local users for cashless payment promotion.
  • Characterized by steady management and stability among regional banks.
  • Capital of approximately 27.4 billion yen stably supplying regional financial market.
  • Conducting fundraising for guide dog breeding since 1995.
  • Focusing on expansion of digital banking services.

Hidden Connections

  • Strong ties with MUFG Bank group's ATMs and services.
  • Acquired Utsunomiya Securities from parent Tokai Tokyo Financial Holdings and made it a consolidated subsidiary.
  • Signed long-term comprehensive agreements with major prefectural local governments to strengthen public-private partnerships.
  • Established Saitama Area Headquarters in Koshigaya City as base for regional strategy.
  • Related to foreign capital as Norway Government Pension Fund is one of major shareholders.
  • Playing pioneering role in cashless field by introducing Lawson Bank's instant account settlement service.
  • Signed broad-area collaboration agreement with Tsukuba Bank and Tohwa Bank as part of local revitalization.
  • Achieved cost reductions by sharing Hitachi NEXTBASE financial IT joint system with multiple regional banks in Japan.

Future Outlook

Growth Drivers

  • Digitalization of regional financial services and cashless promotion.
  • Strengthened SME support and new transaction expansion in northern Kanto.
  • Qualitative expansion and diversification of asset management and securities business.
  • Brand power enhancement through strengthened regional community ties.
  • Acceleration of fintech technology utilization and new service development.
  • Economic revitalization contribution through broad-area local government collaborations.
  • Development and普及 of sustainable financial products.
  • Ongoing expansion of online financing platform.
  • Advanced financial talent development for employees and recruitment strengthening.
  • Further evolution of core system for operational efficiency improvement.
  • Expansion of community-based financial consulting and education services.
  • Management strategy incorporating environment and social issue responses.

Strategic Goals

  • Complete digital transformation of regional finance and improve customer satisfaction.
  • Expand customer base by 20% through SME growth support.
  • Double securities and asset management service sales.
  • Raise sustainable financial product ratio to over 30%.
  • Fully implement employee digital skills enhancement programs.
  • Build multiple model cases of local government collaboration.
  • Achieve over 50% cashless payment usage rate.
  • Reduce costs by 10% through core system advancement.
  • Improve regional evaluation through CSR activities.
  • Establish sustainable earnings base and strengthen risk management system.

Business Segments

SME Financing

Overview
Strong in community-based SME financing, addressing diverse funding needs.
Competitiveness
Flexible screening and customer support with deep local knowledge
Customers
  • General SMEs
  • Local corporations
  • Sole proprietors
  • Agricultural corporations
Products
  • Equipment funding loans
  • Working capital loans
  • Real estate collateral loans

Retail Banking

Overview
Supports regional individuals and SMEs with multifaceted financial services.
Competitiveness
Long-standing trust and regional network
Customers
  • Individual customers
  • SMEs
  • Elderly segment
Products
  • Deposits
  • Housing loans
  • Card loans
  • Various insurance

Securities-Related Services

Overview
Utilizes subsidiary Tochigin TT Securities to offer abundant management products.
Competitiveness
Community-based securities sales strength
Customers
  • Individual investors
  • SMEs
  • Asset management customers
Products
  • Securities trading
  • Investment trusts
  • Asset management consulting
  • Defined contribution pensions

Trust and Leasing Services

Overview
Offers diverse financial services in collaboration with related subsidiaries.
Competitiveness
One-stop solution provision
Customers
  • Corporations
  • Individuals
  • Local governments
Products
  • Leasing transactions
  • Trust operations
  • Receivables management

Foreign Exchange and International Operations

Overview
Supports international transactions through extensive correspondent bank network.
Competitiveness
Strong transaction relationships and reliability
Customers
  • Import/export companies
  • Local trading firms
  • Overseas partners
Products
  • Foreign exchange transactions
  • Import/export settlements
  • Remittance services

Public and Local Government Finance

Overview
Supports regional public services financially as a designated financial institution.
Competitiveness
Close collaboration with regional communities
Customers
  • Local governments
  • Public entities
  • Regional communities
Products
  • Designated financial institution operations
  • Public utility bill collection
  • Regional revitalization support

Competitive Advantage

Strengths

  • Strong customer base rooted in the region
  • Diverse financial products and service provision capabilities
  • Deep understanding of regional SMEs
  • Stable financial position and asset scale
  • Efficient operations via core system NEXTBASE
  • Securities and trust services through subsidiaries
  • Broad deployment in northern Kanto area
  • Diverse channel network for customer touchpoints
  • Improved convenience through partnerships like Lawson Bank
  • Promotion of comprehensive agreements with local governments
  • Long-standing trust and brand power
  • Advanced promotion of cashless payments
  • Flexible screening and community-based management
  • Comprehensive SME support system
  • Focus on recruitment and talent development

Competitive Advantages

  • Community-focused in northern Kanto with steadier management style than competitors
  • Detailed financing tailored to SMEs
  • Abundant asset management products through Utsunomiya Securities consolidation
  • Operational efficiency and service quality improvement via new core system
  • Enhanced community ties through strengthened local government collaborations
  • Early participation in Lawson Bank's instant account settlement service ahead of peers
  • One-stop service system for diverse financial needs
  • Risk management and customer response based on unique regional information
  • Strengthened regional strategy via area-based branch system
  • Management policy aimed at long-term sustainable growth

Threats

  • Market contraction risk due to population decline
  • Toughening regional bank earnings environment and low interest rate pressure
  • Increasing IT security risks
  • Intensifying customer acquisition competition with rival banks
  • Impact of service innovations by fintech companies
  • Credit deterioration risk from local economic fluctuations
  • Increased cost burden from strengthened regulations
  • Economic fluctuations from uncertain factors like COVID-19
  • Financial impacts from inflation pressure and exchange rate fluctuations
  • Customer loss from delays in digitalization response

Innovations

2024: Introduction of area system in Saitama Prefecture

Overview
Introduced area system in Saitama Prefecture to improve branch efficiency and strengthen community services.
Impact
Achieved sales efficiency improvement and strengthened ties with regional economy

2023: Participation in Lawson Bank instant account settlement service

Overview
Participated in Lawson Bank's service as part of cashless payment promotion, greatly improving convenience.
Impact
Increased customer usage frequency and enhanced brand value

2022: Financial product diversification through Utsunomiya Securities subsidiary

Overview
Strengthened securities business and expanded asset management product lineup to meet regional financial needs.
Impact
Successfully expanded customer base and diversified revenue sources

2021: Completion of core system NEXTBASE migration

Overview
Introduced and launched next-generation core banking system to improve operational efficiency and system reliability.
Impact
Reduced operating costs and improved customer service quality

2020: Launch of ATM services in Lawson stores

Overview
Partnered with Lawson ATM Networks to expand convenience store ATMs.
Impact
Contributed to improved customer convenience and expanded ATM usage

2024: Introduction of digital financing platform for SMEs

Overview
Deployed online loan application and screening system to speed up SME funding.
Impact
Shortened loan processing time and improved customer satisfaction

2023: Strengthened cashless payment integrations

Overview
Expanded various QR code payments and electronic money linkage services to enhance customer convenience.
Impact
Successfully increased users and acquired new customers

2021: Launch of ESG financing for sustainable finance promotion

Overview
Implemented financing menus for companies considering environment, society, and governance.
Impact
Supported regional companies' ESG initiatives and improved bank image

2022: Launch of online asset management consulting service

Overview
Introduced online consultation services via video meetings to improve customer convenience.
Impact
Expanded service reach and improved customer satisfaction

2024: Strengthened regional rollout of financial education programs

Overview
Implemented financial literacy education activities targeting regional youth.
Impact
Built trust with regional community and nurtured next-generation customers

Sustainability

  • Ongoing support for guide dog breeding fundraising activities
  • Regional revitalization through comprehensive partnerships with local governments
  • Promotion of environmentally considerate office operations
  • Expansion of ESG financing and support for target companies
  • Paperless initiatives and digitalization promotion
  • Environmental burden reduction through cashless payment普及
  • Regional donation activities and volunteer support
  • Waste recycling rate improvement program
  • Employee health management and work-life balance promotion
  • Enhancement of fairness and accessibility in financial services