The Hyakugo Bank (8368) investor relations material

Business foundation and regional presence

• Operates as a major regional financial institution with a strong base in Aichi and Mie prefectures, boasting 145 domestic branches and a leading market share in deposits and loans in Mie.

• Group companies provide a wide range of financial and business services, including credit cards, leasing, consulting, digital solutions, and securities.

• Celebrates a 148-year history, aiming for further growth as it approaches its 150th anniversary in 2028.

Financial performance and growth drivers

• Achieved record-high net profit for two consecutive years, with FY2025 net profit at ¥26.8 billion, up ¥8.7 billion year-on-year.

• Forecasts a third consecutive year of record profits in FY2027, driven by rising interest rates and improved core business profitability.

• Deposit and loan balances continue steady growth, with deposits at ¥6.28 trillion and loans at ¥5.17 trillion as of March 2026.

• Maintains the highest market capitalization among regional banks in the Tokai area at ¥623.3 billion as of August 2026.

Impact of interest rate environment

• Gradual policy rate hikes since 2024 have positively impacted earnings, with net interest income rising due to higher lending rates.

• Approximately half of loans are variable-rate mortgages, making earnings highly sensitive to rate increases.

• Business and mortgage loan rates have steadily increased, supporting profit growth.