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Medium-Term Business Plan
"Communication × Collaboration × Innovation 2024"

 The Hokkoku Bank, Ltd. has partially revised its Medium-Term Business Plan “Communication × Collaboration × Innovation 2021” (Period: April 2018 to March 2021), in response to the recent changes of business environment, and formulated a new Medium-Term Business Plan “Communication × Collaboration × Innovation 2024” (Period: April 2018 to March 2024), as follows:

1. Introduction of the Medium-Term Business Plan

 Based on our corporate philosophy of "Building a Bridge of Trust for a Rich Future, Expanding the Circle of Interaction, and Building an Affluent Future Together with Local Communities," we aim to develop together with local communities through the provision of comprehensive information and financial services in the region.
 Under the current medium-term business plan "Communication × Collaboration × Innovation 2021," formulated in Mar 2018, we have positioned our medium-to long-term vision of becoming a "the next generation of integrated regional companies" which, as a community-based bank, provides comprehensive and multifaceted solutions to local customers and the development of the region as a whole, working together with local customers, whether they are individuals or corporations, in good times or bad times, in order to realize this corporate philosophy and implement community-based finance. We believe that the 3 keywords for achieving this goal are "communication," "collaboration," and "innovation." The name of the medium-term business plan is "Communication x Collaboration x Innovation 2021."
 Looking back at the business environment surrounding the Bank, we recognize that the low interest rate environment in Japan continues and is expected to continue for a prolonged period, and that there is no prospect of a recovery in interest income of financial institutions. In addition, there are concerns about the emergence of credit risk due to uncertainty in the global economy and deteriorating business confidence. At the same time, competition is intensifying not only in the same industry, but also with other industries. Therefore, we believe that the earnings environment will become increasingly harsh unless we implement various measures with an unprecedented sense of urgency.
 Given the rapidly changing business environment as mentioned surrounding the Bank, we believe that the effective use of cloud and other rapidly evolving IT technologies can transform the threats faced by the Bank into an opportunity and lead to an increase of sales productivity and cost reductions. Therefore, in order to accelerate the implementation of various measures without waiting for the completion of the current medium-term business plan (Mar 2021), we have partially revised the content of the current medium-term business plan and formulated a new medium-term business plan called "Communications × Collaboration × Innovation 2024," which covers the period up to Mar 2024.

2. Outline of the Medium-Term Management Plan

Name Communication × Collaboration × Innovation 2024
Planning Period Apr 2018 to Mar 2024 (6 years)

Aim to be “the next generation of integrated regional companies”

Contribute to attain region-wide innovation through customer-oriented approach via extensive communication and collaboration, both within the Bank as well as with our community.

Basic policy Contribute to the development of our region and establish Hokkoku brand, by deepening communication and relationship with our customer.
• Communication: Continuous focus on the enhancement of communication with our customers and within the Bank.
  • Collaboration: Development of extensive partnership with our customers as well as within the Bank.
  • Innovation: Continuous support for region-wide based innovative transformation initiatives which pave ways for the regional growth amid constant changing social environment.
  • 3. Key Strategic Frameworks

    (1) Strengthen sales

    • Increase non-interest income (card, leasing, consulting)

    • Improve the productivity and quality of sales through the use of IT

    (2) strengthening credit risk management;

    • Strengthen the corporate screening system (credit assessment based on understanding of business potential and appropriate risk recognition)

    • Thorough implementation of medium-term management (management improvement by strengthening the consulting functions of branch offices and headquarters)

    (3) Further improvement of management efficiency

    • Implementation of branch offices, personnel reallocation, and streamlining

    • Reduce system operation and maintenance costs (shift the allocation of system costs from current maintenance and maintenance to strategic development)

    (4) Strengthening human resource development

    • Development of professional human resources (development of high-value-added, high-productivity human resources that can respond to the uncertain future and increasingly diverse and sophisticated needs)


    4. Financial target indicator

    March 2024 (targets)

    Ordinary profit (consolidated) ¥16.0 billion
    Profit after tax (consolidated) ¥10.0 billion

    Income from new business (non-consolidated)

    <bank cards, leasing, consultation services>

    ¥4.0 billion

    OHR (non-consolidated) Lower 60% range
    ROE (non-consolidated) 4.0%
    * OHR: Over head ratio
    * ROE: Return on equity

    Click here for Medium-Term Business Plan presentation materials