Daito Bank

Basic Information

Stock Code
8563
Industry
Banking
Category Detail
Banks
Prefecture
Fukushima Prefecture
Establishment Year
August 1942
Listing Year
December 1992
Official Website
https://www.daitobank.co.jp/
TSE Information
TSE Information
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Other Companies
IyoGin Holdings, Shizuoka Financial Group, Kyoto Financial Group, Mebuki Financial Group, Concordia Financial Group, Hirogin Holdings, Chiba Bank, Gunma Bank, Tohoku Bank, Fukuoka Financial Group, Hachijuni Bank, Tottori Bank, Fukushima Bank

Overview

Daito Bank is a second-tier regional bank founded in 1942 with its head office in Fukushima Prefecture. It has strengths in local small and medium-sized enterprises and individual customers, providing financial services closely integrated with the regional economy.

Current Situation

Daito Bank recorded consolidated sales of approximately ¥13.1 billion and net profit of approximately ¥1 billion in the fiscal year ended March 2021, maintaining a stable business foundation as a regionally focused financial institution. It operates 56 branches primarily within Fukushima Prefecture, with outstanding loans of approximately ¥661.2 billion and deposits of approximately ¥799.4 billion. In addition to individual deposit, lending, and foreign exchange operations, it focuses on financial services for small and medium-sized enterprises. In recent years, it has advanced initiatives such as mutual free ATM usage partnerships and ISO 14001 certification for environmental efforts. Major shareholder SBI Holdings owns 19.37%, and changes in capital relationships could impact management. Moving forward, it aims to revitalize the regional economy while pursuing sustainable growth through system upgrades and service efficiency improvements. Amid intensifying competition in the banking industry and external changes such as population decline, it must respond accordingly as the core of regional finance to maintain stable operations.

Trivia

Interesting Facts

  • Historic bank born in 1942 from the merger of three mutual loan companies
  • Only regional bank in Fukushima Prefecture without a branch in the Sendai area
  • Maintains the largest branch network among second-tier regional banks in Fukushima
  • Early focus on remittance services for Brazilian residents in the region
  • First financial institution in the prefecture to acquire ISO 14001
  • SBI Holdings became the top shareholder but maintains certain management independence
  • Rare bank that previously offered ATM deposit/withdrawal for both cash and coins
  • Repeated upgrades to proprietary online banking system for improved convenience
  • Long track record as designated financial institution for local governments
  • Deploys wide range of financial services including cards and leasing through multiple affiliates
  • Partnered as second bank with regional department store Usui Department Store
  • Member of 'Tohoku Omusubi Unit' mutual free ATM network with southern Tohoku regional banks
  • Established second-tier regional bank listed on the Tokyo Stock Exchange Standard Market
  • 積極的なCSR活動を展開
  • Continuously addresses regional environmental impact reduction as a financial institution

Hidden Connections

  • SBI Holdings' capital entry influences Daito Bank's management and capital structure
  • Strong ties with the Brazilian community in Japan through partnership with Banco Bradesco
  • Deep transaction relationship with regional department store Usui Department Store, playing a role in regional economic collaboration
  • Participation in joint ATM services with Tohoku second-tier regional bank network 'Tohoku Omusubi Unit'
  • Relationship as designated financial institution for local government Koriyama Town symbolizes trust
  • Influenced regional bank reorganization through long-term Sendai branch operations transfer
  • Use of Hitachi's joint outsourcing service NEXTBASE as part of regional financial institution collaboration
  • Support for regional SMEs through affiliates Daito Credit Service and Daito Lease

Future Outlook

Growth Drivers

  • Demand for strengthening regional SME economic foundation
  • Expansion of digital financial services adoption
  • Fukushima reconstruction and regional industry promotion policies
  • Customer needs response through financial product diversification
  • Customer convenience improvement via mutual free ATM partnerships
  • Expansion of services for foreign customers (Brazilians, etc.)
  • Ongoing entrustment of local government-related business
  • Penetration of environmentally considerate management and improved social evaluation
  • Operational efficiency and cost reductions through system renewal
  • Strengthened sales strategies based on customer data analysis
  • Potential new capital or business partnerships
  • Building sustainable regional finance

Strategic Goals

  • Advanced regional financial services and digitalization promotion
  • Strengthened support for sustainable growth of loan recipient SMEs
  • Expansion and maintenance of regional customer base
  • Integration of Environment, Society, Governance (ESG) into management
  • Strengthened capital collaboration with major shareholder and management stabilization
  • Enhanced collaboration with regional governments and expansion of designated financial institution operations
  • Achievement of environmental impact reduction targets as a financial institution
  • Business innovation through digital transformation (DX)
  • Enrichment of services for foreign customers
  • Ongoing strengthening of earnings structure and stable management maintenance

Business Segments

SME Finance

Overview
Deploys diverse lending services to support the growth and operations of regional SMEs.
Competitiveness
Deep trust relationships with local companies and flexible underwriting criteria
Customers
  • Local SMEs
  • Manufacturing
  • Services
  • Retail
  • Agriculture-related companies
Products
  • Working Capital Lending
  • Equipment Investment Loans
  • Guaranteed Financing
  • Lease Financing

Public Entity Transactions

Overview
Contributes to the regional community through fund management and financial services with local governments.
Competitiveness
Long track record and reliability in transactions with municipalities
Customers
  • Fukushima Prefecture local governments
  • Koriyama Town
  • Other municipalities
Products
  • Designated Financial Institution Services
  • Public Bond Issuance Support
  • Fund Management Services

Financial Product Intermediation and Card Services

Overview
Meets customer needs with diverse financial products and provides one-stop services.
Competitiveness
Regionally focused customer support system
Customers
  • Individual customers
  • Corporate customers
  • Local governments
Products
  • Credit Cards
  • Investment Trust Sales
  • Insurance Counter Sales

International Remittance Services

Overview
Deploys services specialized in overseas remittances to support international business and regional foreigners.
Competitiveness
Strong partnership network for remittances to Brazil
Customers
  • Brazilian community in Japan
  • International companies
  • Importers and exporters
Products
  • Brazil Remittances
  • Foreign Exchange Transactions
  • Foreign Currency Exchange

Competitive Advantage

Strengths

  • Regionally focused strengths in SMEs
  • Stable outstanding loans and deposits
  • Comprehensive branch network (56 branches)
  • Improved convenience through mutual free ATM partnerships
  • Long track record in local government transactions
  • Trust and brand power in regional finance
  • Environmental considerations via ISO 14001 certification
  • Support from major shareholder SBI Holdings
  • Deployment of online and mobile banking
  • Broad range of financial product offerings
  • Stable black ink on consolidated income statements
  • Expansion of credit services subsidiaries
  • Flexible loan underwriting and product diversity
  • Status as designated financial institution for local governments
  • Deep understanding of and network in the regional economy

Competitive Advantages

  • Stable foundation as a trusted second-tier regional bank centered in Fukushima Prefecture
  • Tailored financial services specialized for local SMEs
  • Enhanced customer convenience through mutual free ATM partnerships
  • Strengthened funding capabilities via capital ties with SBI Holdings
  • ISO 14001 acquisition integrates environmental considerations into management, earning regional recognition
  • Long-term trust and fund management track record with local governments
  • Multi-faceted service deployment leveraging subsidiaries like credit cards and leasing
  • Stable customer base and risk diversification through regionally rooted operations
  • Achieved enriched digital services and efficiency via online system upgrades
  • Comprehensive financial product lineup for both corporate and individual customers in the region
  • Flexible underwriting and product design responsive to customer needs
  • Differentiation through past ATM coin deposit/withdrawal capabilities unique in Fukushima
  • Brand superiority as a regional bank contributing to economic revitalization
  • Resilient constitution against market volatility due to stable financial base
  • High customer loyalty built through close relationships

Threats

  • Risk of regional market contraction due to population decline
  • Profit pressure from prolonged low-interest environment
  • Market share erosion from intensifying regional bank competition
  • Increased credit loss risk amid economic fluctuations
  • Potential customer loss from delays in digitalization
  • Uncertainty in management policy from changes in capital structure
  • Increased operational burden from regulatory strengthening
  • Competition from new entrant fintech companies
  • Regional economic instability due to disaster risks
  • Fluctuations in international situations related to overseas remittances
  • Rising costs for financial crime prevention
  • Decline in trust if unable to meet diversifying customer needs

Innovations

2023: Expansion of Tohoku Omusubi Unit Mutual Free ATM Partnership

Overview
Advanced mutual free ATM partnerships jointly with Sendai Bank, Fukushima Bank, and others.
Impact
Increased customer satisfaction through improved convenience

2022: NEXTBASE Core Banking System Launch

Overview
Renewed core systems via Hitachi's joint outsourcing service.
Impact
Achieved system efficiency and service improvements

2021: Enhancement of Digital Channels

Overview
Focused on improving convenience of internet and mobile banking.
Impact
Acquisition and promotion of use among younger customers

2020: Promotion of ISO 14001 Environmental Management

Overview
Strengthened management system aimed at reducing environmental impact.
Impact
Enhanced trust from regional community

2024: Expansion of Brazil Remittance Services

Overview
Enhanced partnership with Banco Bradesco to improve remittance convenience to Brazil.
Impact
Promotes increase in Brazilian resident customers in Japan

2023: Strengthening Online Core Banking System

Overview
Advanced system online-ization for operational efficiency and digital expansion.
Impact
Improved transaction processing speed and cost reductions

2021: Renewal of Loan Products Adapted to Customer Needs

Overview
Flexible product design and underwriting criteria for individual and corporate loans.
Impact
Improved customer satisfaction and increased applications

2022: Launch of Online Consultation Services for Customers

Overview
Established online counters enabling face-to-face consultations outside branches.
Impact
Enhanced convenience and expanded touchpoints

2020: Enhancement of Financial Crime Prevention Technology

Overview
Introduced AI-based fraudulent transaction detection system.
Impact
Improved risk management capabilities

2024: Launch of Regional Revitalization Support Program

Overview
Deploys regional promotion measures in collaboration with local companies and governments.
Impact
Strengthens regional economic foundation

Sustainability

  • Implementation of environmental management through ISO 14001 certification
  • Energy-saving measures via promotion of Cool Biz initiative
  • Optimization of regional financial resources through mutual free ATM partnerships
  • Sponsorship and support for regional events
  • Participation in regional environmental protection projects
  • Introduction of energy-saving equipment in branches
  • Regional disaster support as CSR activities
  • Paper resource conservation to reduce environmental impact
  • Exploration of renewable energy utilization
  • Employee environmental awareness programs
  • Support for sustainable regional economic development
  • Promotion of healthy regional society through financial services