HOKUHOKU FINANCIAL GROUP, INC. Annual Report
2021
Year ended March 31, 2021
Hokuhoku Financial Group, Inc.
Company outline (as of March 31, 2021)
Company name: Hokuhoku Financial Group, Inc.
Date of establishment: September 26, 2003
Location of head office: 1-2-26Tsutsumicho-dori, Toyama City
Purpose of business: Management and control of subsidiaries and affiliates and ancillary and related business
Capital: ¥70,895 million | |
Shares issued and outstanding: | |
Common stock ……………………… | 132,163,014 |
Preferred stock (Type 5) …………… | 85,955,000 |
Exchange listings: Tokyo Stock Exchange (First Section)
Sapporo Securities Exchange
This document contains forward-looking statements. Statements of this kind do not constitute guarantees of future performance, as factors such as changes in the operating environment may cause actual performance to differ.
The figures stated in this document are, in principle, rounded down to the nearest whole unit.
CONTENTS
Profile ……………………………………………………………………… 1
Message from the Management ………………………………………… 2
Our Strengths ………………………………………………………………3
Characteristics of Our Main Business Area …………………………… | 4 |
Performance Highlights ………………………………………………… | 6 |
President's Message ……………………………………………………… 10
Process for value creation ……………………………………………… 14
Hokuhoku Financial Group SDGs Declaration and Key CSR Activity Themes …… 16
Initiatives to address issues related to climate change ………………… 18
Deputy President's Message …………………………………………… 20
Medium-Term Management Plan ……………………………………… 22
Medium-Term Management Plan "ALL for the Region" ……………… 23
Stakeholder Communication …………………………………………… 25
Building a sound and resilient management foundation ……………… 26
CORPORATE GOVERNANCE ……………………………………… 26
MEASURES FOR RISK MANAGEMENT …………………………… 31
MEASURES FOR COMPLIANCE …………………………………… 34
Consolidated Financial Statements
Consolidated Balance Sheet ………………………………………… 37
Consolidated Statement of Income ………………………………… 38
Consolidated Statement of Comprehensive Income ……………… 38
Consolidated Statement of Changes in Equity ……………………… 39
Consolidated Statement of Cash Flows …………………………… 41
Notes to Consolidated Financial Statements ……………………… 42
Independent Auditor's Report …………………………………………… 72
Non-consolidated Financial Statements The Hokuriku Bank, Ltd.
Non-consolidated Balance Sheet (Unaudited) …………………… 77
Non-consolidated Statement of Income (Unaudited) …………… 78
The Hokkaido Bank, Ltd.
Non-consolidated Balance Sheet (Unaudited) …………………… 79
Non-consolidated Statement of Income (Unaudited) …………… 80
Corporate Information …………………………………………………… 81
Outline of Subsidiaries - Hokuriku Bank ……………………………… 82
Outline of Subsidiaries - Hokkaido Bank ……………………………… 83
Directors …………………………………………………………………… 84
简单的本集团中文简要…………………………………………………… 85
Profile
Since its establishment in 1877, Hokuriku Bank has developed an extensive network of branches throughout the Hokuriku district. On account of trade through the Kitamae-bune or "Northbound Ships," branches extended to the major cities of Hokkaido, enabling the bank to meet customers' needs. The Hokkaido Bank, which was established in 1951, has developed a network of branches throughout Hokkaido, and built a firm business structure centered on individuals and small and medium-sized enterprises.
The Hokuriku Bank, Ltd. and The Hokkaido Bank, Ltd. underwent management integration in September 2004 to form the Hokuhoku Financial Group Inc., which today operates a super-regional financial network that encompasses the Hokuriku region, Hokkaido, and Japan's three major metropolitan areas (Tokyo, Osaka, and Nagoya areas).
Comprehensive business alliance | |||
May 2002 | between | ||
Hokuriku Bank and Hokkaido Bank | |||
Agreement on full integration of | |||
May 2003 | management of Hokuriku Bank and | ||
Hokkaido Bank | |||
September | Hokugin Financial Group, Inc. | ||
2003 | established | ||
Hokuriku Bank Group comes under | |||
management of Hokugin Financial | |||
Group | |||
Management integration effected | |||
through equity swap |
September | Hokuhoku Financial Group, Inc. was |
2004 | born. |
The operations of the Hokuhoku Financial Group extend beyond the limits of a single district.
Our extensive network is outlined below.
Hokuriku district …………………………… 151 branches
Toyama prefecture…………………………… | 93 branches |
Ishikawa prefecture ………………………… | 36 branches |
Fukui prefecture……………………………… | 22 branches |
Hokkaido …………………………………… 161 branches
Three major metropolitan areas ………… | 16 branches |
Tokyo and Yokohama ……………………… | 9 branches |
Nagoya ……………………………………… | 3 branches |
Osaka and Kyoto …………………………… | 4 branches |
Others (Sendai, Niigata, Nagano, Takayama) … | 4 branches |
Overseas …………………………………… | 8 offices |
New York Representative Office (Hokuriku | Bank) | |||||||||
Yuzhno-Sakhalinsk Representative Office (Hokkaido Bank) | ||||||||||
Vladivostok Representative Office (Hokkaido Bank) | ||||||||||
Singapore Representative Office (Hokuriku | Bank) | |||||||||
Bangkok Representative Office (Hokuriku | Bank) | |||||||||
Dalian Representative Office (Hokuriku Bank) | ||||||||||
Shanghai Representative Office (Hokuriku | Bank) | |||||||||
Shenyang Representative Office (Hokkaido Bank) | ||||||||||
Ho Chi Minh Representative Office (Hokuriku Bank) | ||||||||||
(Scheduled to be established in 2021) | ||||||||||
(As of June 30,2021) | ||||||||||
Vladivostok | ||||||||||
Shenyang | Yuzhno | New York | ||||||||
Dalian | Sakhalinsk | |||||||||
Shanghai | ||||||||||
Bangkok | ||||||||||
Singapore | Ho Chi Minh | |||||||||
Hokkaido |
Hokuriku district
Ishikawa
Fukui
Toyama
Tokyo
Osaka Nagoya
Three major metropolitan areas
Hokuhoku Financial Group, Inc. Annual Report 2021 | 1 |
MESSAGE FROM THE MANAGEMENT
Left: Eishin Ihori | Right: Yuji Kanema |
President
(concurrently serving as president of The Hokuriku Bank, Ltd.)
Deputy President
(concurrently serving as president of The Hokkaido Bank, Ltd.)
We would like to express our sincere gratitude for your continued patronage of Hokuhoku Financial Group and its subsidiaries.
While the rapid economic slowdown caused by the outbreak of the COVID-19 has been eased, the future outlook of business environment surrounding regional financial institutions is still uncertain due to the re-spread of the viruses and to the negative impact on the local economy, especially in some business sectors such as tourism.
In such an environment, we will continue to make efforts to offer optimal solutions which will meet the various needs of our customers suffering from the COVID -19 and to support the sustainable growth of the local communities by pursing our basic three policies, "Contribution to community development", "Evolution and change to the future" and "Exercise of the group's comprehensive strength", all of which are held in our medium-term management plan "ALL for the Region".
We would like to ask for your continued support and patronage.
July 2021
Eishin Ihori | Yuji Kanema |
President | Deputy President |
2 Hokuhoku Financial Group, Inc. Annual Report 2021
Our Strengths We contribute to the regions with our strengths and strive to grow sustainably.
Our solid customer base built over our long history
- Hokuriku Bank and Hokkaido Bank were established in 1877 and 1951, respectively.
- It has been 16 years since the Group was formed in 2004.
- Our solid customer base in Hokuriku and Hokkaido has been built over our long history.
Market Share in Hokuriku (Toyama, Ishikawa, Fukui) | Market Share in Hokkaido | |
#1 in deposit and lending | #2 in deposit and lending |
20.5% | 29.9% | 17.0% | 28.0% |
Deposit | Lending | ||
30.1% | 31.6% | ||
19.5% | 23.4% | ||
30.9% | 22.7% | 23.5% | 27.4% |
Deposit | 9.9% | Lending | |
10.3% | 36.0% | 39.2% | |
■ Hokuhoku Financial Group ■ Regional competitors ■ Other banks ■ Community banks
*Market shares are as of September 2020. They were calculated by the Group based on statistical data from Bank of Japan, think tanks and others. They exclude Japan Post Bank. *The market shares of regional competitors and other banks are our estimates.
Our competent people
- Our people have diligence and pioneering spirits, each of which represents key characteristics of Hokuriku and Hokkaido, respectively.
- We believe diversity makes us stronger, and we are dedicated to building a diverse workforce.
- Our people have industry-leading expertise in such areas as business succession, agriculture, and cross-border businesses.
Women in management roles | CFP and 1st level FP holders |
169
160 |
(March 2020) | (March 2021) |
235
216 |
(March 2020) | (March 2021) |
Extensive branch network across multiple regions
- Our branch network spreads extensively across multiple regions, including Hokuriku, Hokkaido, Tokyo, Osaka and Aichi. We also have global offices in foreign countries.
- Our extensive branch network gives us a unique advantage in the industry in promoting business matching for our customers.
- We are constantly optimizing our branches in terms of number, size, functions and operating hours.
Number of branches (June 2021)Business matching deals across Hokuriku and Hokkaido (FY2020)
332 branches in Japan | ||||||
171 | 161 | 127 | 41 | |||
branches in Honshu | branches in Hokkaido | Leads | closed deals | |||
(Hokuriku, Tokyo, Osaka, Aichi and others) | ||||||
8 global offices outside of Japan | ||||||
1. | New York | 2. Bangkok 3. Singapore | 4. Shanghai 5. Dalian | |||
6. | Shenyang | 7. Vladivostok 8. Yuzhno-Sakhalinsk | 9. Ho Chi Minh City* | |||
*We plan to open a new office in Ho Chi | Minh City in | 2021. | ||||
Strategic partnerships with key players
- We help our clients find technology partners from universities in our operating areas.
- We help our clients expand their businesses in foreign countries.
Number of partnerships with municipalities and universities | Number of partnerships with government-sponsored banks and other | ||
(March 2021) | international banks outside of Japan (March 2021) | ||
47 | 22 | 63 | |
Municipalities | Universities | partnerships |
Hokuhoku Financial Group, Inc. Annual Report 2021 | 3 |
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Hokuhoku Financial Group Inc. published this content on 13 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 October 2021 02:51:05 UTC.
