8381.T

• Business Model and Regional Positioning

  • The bank's core business model is co-growth with customers and regions through solving shared challenges; it holds the top market share for both deposits and loans across the two Sanin region prefectures (Tottori and Shimane), and is the main banking partner for most corporate and individual customers in the region.
  • Sanin faces structural challenges: combined population, number of business locations, and prefectural GDP rank last among Japan's 47 prefectures, totaling less than 1% of national economic output, with severe population decline, aging demographics, labor shortages and business succession gaps. Management frames these regional challenges as the bank's own challenges, and has built a healthy sense of crisis that prevents complacency and drives ongoing growth.
  • The bank has a 150-year history founded in western Shimane, currently operates 108 locations across Sanin, Sanyo, Kansai and Tokyo, and is the leading regional bank in the Sanin area.

• Mid-Term Management Plan (FY2024-FY2026) and Updated Targets

  • The plan was built via backcasting from the bank's 10-year vision under the corporate mission of "Creative best bank that realizes the dreams of the region and customers". Initial plan targets were ROE of 6%+ and final year net profit of 23.5 billion yen.
  • The bank has now upwardly revised the 2026 March fiscal year (current fiscal year) full-year net profit forecast from the initial 21.0 billion yen to 22.5 billion yen (a 1.5 billion yen upward revision), and upwardly revised the mid-term plan's final year (FY2026) net profit target from 23.5 billion yen to 25.5 billion yen (a 2.0 billion yen upward revision). This change was driven by better than expected results from existing initiatives and a favorable shift in the interest rate environment.
  • The annual dividend per share for FY2026 has also been revised upward from the prior 56 yen forecast to 60 yen, a 4 yen increase.
  • The bank will begin developing the next mid-term management plan ahead of the final year of the current plan, as the current plan's targets are already on track to be achieved.

• Core Growth Drivers and Capabilities

  • Consulting capability: The bank implements a company-wide "all-employee consulting" model, where all front-line branch employees support customer problem-solving in addition to specialized headquarter consulting teams, enabling faster, more context-aware solutions that differentiate the bank from peers. This model has been expanded to all operating regions beyond its original Sanin base.
  • Asset consulting partnership: In a Japan-first business model launched in 2020, the bank partners with Nomura Securities to deliver top-industry asset management services to individual customers, combining the bank's customer access with Nomura's expertise and product range. Entrusted asset balances and fee income have grown steadily, and the partnership is widely recognized in the industry.
  • Group-wide integrated financial services: The bank has 9 group subsidiaries covering traditional services (leasing, credit cards) as well as new lines of business addressing regional social challenges, including venture capital investment, power business, staffing, and a regional trading company. Key operational results include: 134 successful placement closed deals via the bank's staffing subsidiary in FY2025 ending March, and approximately 7,800 tons of annual CO2 reductions achieved via the power subsidiary's PPA projects for regional decarbonization as of September 2025.
  • Broad regional expansion strategy: The bank leverages expertise, problem-solving capabilities and talent developed in Sanin to expand into the larger markets of Sanyo, Kansai and Tokyo, growing its customer base, then brings growth back to Sanin to drive regional economic activation.

• Startup and Venture Engagement

  • The bank is strengthening investments in venture capital funds and venture debt as part of its mid-term plan, both to contribute to regional sustainable growth and to build a long-term growth driver for the bank.
  • It is building networks with urban startups to bring their solutions back to the Sanin region to drive open innovation and regional problem-solving. In March 2025, the bank hosted the "Gogin Startup Fest 2025" that drew over 400 attendees from across Japan, featuring startup pitch contests and entrepreneur talks; an upgraded edition of the event is scheduled for March 2026, and these initiatives will continue to accelerate.

• Human Capital Management

  • Management identifies people as the core source of the bank's growth, and continues to invest in human capital to create opportunities for diverse talent to thrive. The bank has raised starting salaries for new graduates for 4 consecutive years, and has expanded experienced hire recruitment processes. It is expanding support for women's career development: as of September 2025, women hold 35.4% of positions equivalent to section manager or above, and 24.4% of branch manager or higher positions, with both percentages increasing annually. The bank aims to continue improving these metrics to drive organizational growth and activation.

• Governance and ESG Initiatives

  • To improve corporate value, the bank has added diversity to its management: in June 2024, it appointed the first home-grown female representative director and a foreign outside director at a regional Japanese bank. Currently, 5 of 13 board members are women (38.4%), and outside directors account for 53.8% of the board.
  • The bank is progressing toward its target of 1.05 trillion yen in cumulative sustainable finance by FY2030, and facilitates J-credit sales to help regional businesses achieve carbon offsetting.
  • Unique regional contribution initiatives include local forest conservation, the Shofukan private academy, the Gogin Hitotsubu no Mugi no Kai charitable giving program for children's cafeterias, official sponsorship of local professional sports teams (Gainare Tottori J3 soccer and Shimane Susanoo Magic B.League basketball), and a competitive women's badminton team that engages in youth coaching and community outreach.

• Digital and Shareholder Engagement

  • In October 2024, the bank launched its second-brand digital banking app DanDanBANK, which offers higher deposit rates than in-branch rates, full digital transaction processing, and free access to 7Bank ATMs nationwide, enabling convenient banking for customers across Japan. A tiered-rate DanDan savings deposit product was added in January 2026.
  • The bank's shareholder return policy targets a 40% payout ratio and follows a progressive dividend policy that avoids dividend cuts in principle. It has already completed a 2.0 billion yen share repurchase program, and offers shareholder rewards including Sanin regional specialty gifts for long-term holders of 5,000+ shares.
  • The bank's share price has risen from 511 yen in April 2020 to 1,648 yen as of March 12, 2026, a threefold increase, driven by continued core business profit growth and rising interest rates.

• The 2026 March fiscal year full-year consolidated net profit guidance was upwardly revised 1.5 billion yen from 21.0 billion yen to 22.5 billion yen, driven by stronger than expected core business performance and favorable interest rate conditions.
• The mid-term management plan's final year (FY2026 ending March 2027) net profit target was significantly upwardly revised 2.0 billion yen from 23.5 billion yen to 25.5 billion yen, as prior initiatives have outperformed initial expectations.
• The FY2026 full-year dividend per share guidance was upwardly revised 4 yen from 56 yen to 60 yen, reflecting the expected record high annual profit.
• Management guides that the bank will continue to actively grow loan balances supported by its strong capital position, targeting ROE above the updated 7% cost of equity to achieve a PBR above 1x over the long term.
• Management guides continued growth in core profits from the bank's consulting business, regional expansion, and human capital initiatives, with rising interest rates acting as an ongoing tailwind for earnings.
• Securities valuation losses are targeted to be reduced to a range of 0 to -25.0 billion yen by March 2030, and all losses will be absorbed by the securities division without drawing on upside profits from the core business.
• Cumulative sustainable finance is on track to hit the 1.05 trillion yen target by FY2030, with ongoing steady progress toward this goal.

This is a retail and commercial regional bank briefing, and the transcript does not break out separate product segment financial performance with absolute figures or revenue contribution percentages. Overall aggregate performance is reported as follows: As of September 2025, average deposit balance reached 6.7505 trillion yen and average loan balance reached 5.1347 trillion yen, both having doubled over the past 10 years; loan growth over the recent period is among the highest for regional Japanese banks. Total assets are 8.4 trillion yen, total deposits are 6.6 trillion yen, total loans are 5.2 trillion yen, ranking roughly 20th among 61 first-tier regional Japanese banks. The bank has achieved 4 consecutive years of record-high profits, driven by core business growth and the tailwind of rising policy rates. ROE for the fiscal year ending March 2025 was 5.88%, on a TSE self-capital basis. Capital adequacy ratios were 11.54% as of March 2025 and 12.01% as of September 2025, which is above the regional bank average of 10.17%.

• The Sanin region faces structural headwinds including severe population decline, aging demographics, labor shortages, and business succession gaps that create long-term challenges for the regional economy and the bank's domestic core market.
• The bank's securities portfolio has existing unrealized valuation losses that must be reduced and absorbed over the coming years; management has acknowledged this as a key outstanding strategic issue to address.
• The bank's female representation in senior management is still below the 50% share of women in the overall workforce, so there is still work to do to achieve full gender diversity in leadership.

The full text of questions and detailed answers were not included in the provided transcript; the topics confirmed for the Q&A section are as follows: Q: What is management's self-assessment of the current share price, and what initiatives are in place to drive share price improvement?

A: Full answer not included in transcript.

Q: What is Sanin Godo Bank's greatest core strength?

A: Full answer not included in transcript.

Q: What is your most memorable experience as a banker?

A: Full answer not included in transcript.

Q: What initiatives are you implementing to improve PBR and ROE?

A: Full answer not included in transcript.

Q: What is management's motivation and outlook heading into the final year of the mid-term management plan?

A: Full answer not included in transcript.

Q: What impact has rising policy rates had on the bank's business and earnings?

A: Full answer not included in transcript.

Q: What is the bank doing to support regional economic revitalization in the Sanin area?

A: Full answer not included in transcript.

Q: What is management's philosophy for recruitment activities?

A: Full answer not included in transcript.

Q: What is the bank's plan for addressing unrealized securities valuation losses and reducing cross-shareholdings?

A: Full answer not included in transcript.

Q: What is the bank's view on collaboration or integration with other regional banks?

A: Full answer not included in transcript.

Q: What are the bank's plans for future investor briefings and engagement with the investment community?

A: Full answer not included in transcript.