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Medium - Long Term Business Strategy

We, The Hokkoku Bank, Ltd., will cease the practice of publishing our Medium-Term Business Plan every 3 years. Alternatively, our Medium - Long Term Business Strategy will be published annually, providing an update and our rationale for the strategy.

1.Introduction of Medium - Long Term Business Strategy

In the spirit of our corporate philosophy, Trust — a bridge to a fruitful regional future: Enrich interaction and growth in the region, we aim to continue contributing new value to the region by introducing new business models.


  In March 2018, we initiated our Medium-Term Business Plan, "Communication × Collaboration × Innovation 2021." Subsequently, in November 2019, we revised and published our current Medium-Term Business Plan "Communication × Collaboration × Innovation 2024" in light of changes in the business environment surrounding our Bank and the lightning speed evolution of IT technologies.


  We have implemented our Long-Term Business Strategy that looks at 10 years into the future to take a long-term management directions and facilitate the implementation of our strategies in a flexible and expeditious manner notwithstanding drastic changes of our business environment. We believe our newly established Medium - Long Term Business Strategies will be agile to cater to the frequent change of business environment.


  Going forward, we will review and publish our medium - long term strategies and policies each fiscal year.


  In October 2021, we will transform into a holding company structure. We will expand our business domains to grow with the region as a next generation’s integrated regional company.

2.Forecast for Medium-Long Term Levels

FY 2020 (Actual) FY 2025 FY 2030
Ordinary profit(consolidated)




Profit (consolidated) ¥6.7billion ¥10billion ¥13billion
Income from new business (consolidated)
(including bank cards, leasing and consultation services)
¥3.9illion ¥7.5billion ¥11billion
OHR(consolidated)*1 70.7% 65.0%

Higher 50%range

ROE(consolidated)*2 2.5% 3.5% 4.5%

*1 OHR: Over head ratio

*2 ROE: Return on equity


3.Key Strategy Frameworks  

(1)Expansion of business lines

・Expansion of business lines through new companies

・Expansion of customer base by strengthening current businesses


(2)Robust credit risk management and support systems

・Effective risk management through excellent business prospective understanding and strengthened business relations

・Management improvement by strengthening consulting function


(3)Maximize group synergy

・Improving quality of services offered to the region (swift decision-making and efficient business operations)

・Improvement of management efficiency by maximizing group synergy


(4)Strengthen human resource development

・Mobilization of human resources throughout group and educate next-generation leaders (development of highly talented workforce that can respond to the increasingly diversed and sophisticated needs)