Supporting Sustainable Growth of Local Businesses

We aim to be the first choice as a partner for our clients by utilizing group functions and deepening cooperation with outside businesses, by strengthening the provision of strategic solutions that deeply engage management strategies for business, finance, and capital, and by responding to increasingly diverse and sophisticated needs.

We will improve profitability by strengthening asset allocation in financing areas that go beyond conventional frameworks, such as M&A financing, and by working to provide high value-added financing.

In the medium-term management plan, we have positioned solutions that deeply engage management strategies as “strategic solutions”, and have newly defined customers who select strategic solutions as “partners”.
We will expand and strengthen our customer base in the home market by offering solutions not only to loan customers, but also to local companies, including deposit customers and companies that are not customers.
In addition to senior loans, we will also seek to build up our loan assets by providing solutions through high value-added financial support.
The profitability per partner company is high and we are working to improve our profitability through initiatives that customers can choose.

During the previous medium-term management plan, we expanded our efforts from traditional lending centered on senior loans to new areas of finance such as M&A finance.
Under the medium-term management plan, we will further expand finance areas and strengthen our sourcing capabilities by taking the know-how accumulated at headquarters in areas such as M&A finance and project finance and returning it to our sales branches and sharing it with them, thereby increasing our structured finance balance.
We will enhance our earning power by strengthening our allocation to highly profitable assets.

With a focus on Asia, which is a growth region, our domestic sales branches and overseas offices will work together to strengthen the provision of solutions to our customers.
Specifically, in addition to strengthening financial support such as loans to overseas subsidiaries of our customers, we will provide solutions such as overseas expansion support and M&A in cooperation with external experts and other regional banks. In addition, we will enhance profitability by strengthening our efforts in overseas operations, including loans to non-Japanese corporations.

Initiatives

① Increase in lending to customers’ overseas subsidiaries

② Borderless development of solution business

③ Strengthening initiatives for overseas operations

Aiming to be a “total partner for small and medium-sized enterprises,” we will provide optimal solutions for each customer’s lifecycle by providing sympathetic “face to face” service.
In addition, by increasing branch efficiency, consolidating operations at headquarters, and concentrating management resources in the 23 wards of Tokyo, we will achieve an operating structure that achieves overwhelming efficiency as a regional bank in the 23 wards of Tokyo.

Through business feasibility assessments, we will better understand the needs and issues of our customers and enhance our solution offerings for all lifecycle issues, thereby contributing to the sustainable enhancement of their corporate value.

We will establish an efficient sales structure in the 23 wards of Tokyo by increasing the number of sales personnel in this area and centralizing the administrative work of sales branches into headquarters.

We are enhancing lending to our customers’ overseas subsidiaries through overseas branch loans, cross-border loans, and stand-by credit. Through efforts such as strengthening cooperation between headquarters, domestic sales branches, and overseas offices, as well as expanding our overseas network, the foreign currency loan balance increased by more than ¥100 billion to over ¥570 billion during the previous fiscal year. In addition, the Singapore Branch is making use of the concentration of shipping companies and strong demand for funds in the Singapore market and is developing loans to Vietnam, Thailand, and other neighboring countries, such as promoting ship finance for local Japanese-affiliated companies.

For companies that have been relatively recently established, such as those in the start-up or growth stage, we work to provide business matching support with experts and outside businesses in order to support the continued growth of their businesses.
For example, in FY2022, when we proposed various solutions to our customers, we were able to not only identify the construction needs of income-producing properties and introduce construction companies, but to also identify the needs of relatives to open a hospital, which led us to propose the construction of a leased building. By conducting interviews from a wide range of perspectives, we were able to provide support by offering solutions that went one step further
Through a wide range of introductions tailored to customer needs, the number of business matching contracts concluded in FY2022 totaled 1,593.

We are promoting initiatives to support business succession for mature stage companies.
For example, in FY2022, we provided various solutions to customers operating employee cafeterias within several major manufacturers. The company faced a wide range of challenges, including an aging management team, shareholder dispersion, and lack of successors. We collaborated with the Bank of Yokohama and a tax accountancy firm and solved their issues one by one over the course of three years. A stock transfer to another company in the same industry was achieved that took care of the seller management team’s desire to “deliver warm and delicious meals to the factory workers”.
As a result of these efforts, ten M&A deals triggered by business succession needs were concluded in FY2022.