Breaking Down ZENKOKU HOSHO Co.,Ltd. Financial Health: Key Insights for Investors

Founded in 1981, ZENKOKU HOSHO Co., Ltd. (TSE: 7164) stands at the heart of Japan's housing-finance ecosystem as a nationwide credit guarantor-from Hokkaido to Kagoshima-whose mission, "Our greatest mission is to help people realize their dream of owning their own home," drives its work providing joint-guarantor solutions that ease loan access and spur local revitalization; with headquarters in Tokyo, a workforce of about 369 employees, and outstanding guarantee obligations exceeding 19 trillion yen as of March 31, 2025, the company pairs operational integrity, reliability, and innovation with a vision-"We take responsibility for the stability and development of human society, helping eradicate hunger and poverty from the world."-that ties housing access to broader social and sustainable development goals, reflected in core values emphasizing customer-centric service, community engagement, and sustainability.

ZENKOKU HOSHO Co.,Ltd. (7164.T) - Intro

ZENKOKU HOSHO Co.,Ltd. (7164.T), established in 1981, is a nationwide credit guarantee company specializing in housing loan guarantees across Japan. Acting as a joint guarantor, the company facilitates homeownership by supporting lending between borrowers and financial institutions from Hokkaido to Kagoshima. Listed on the Tokyo Stock Exchange Prime Market (code 7164), ZENKOKU HOSHO reported outstanding guarantee obligations exceeding ¥19 trillion as of March 31, 2025, and employs approximately 369 people with headquarters in Tokyo.

• Founded: 1981
• Primary service: Housing loan credit guarantees
• Geographic coverage: Nationwide (Hokkaido → Kagoshima)
• Listing: Tokyo Stock Exchange, Prime Market (7164.T)
• Employees: ~369 (headquarters in Tokyo)
• Outstanding guarantee obligations (FY ended Mar 31, 2025): >¥19 trillion

Mission

• Enable stable homeownership by providing reliable, transparent guarantee solutions that reduce lending friction for individuals and financial institutions.
• Support regional revitalization by partnering with local banks and government-backed housing programs to expand access to affordable housing finance.
• Maintain financial soundness and trustworthiness through prudent risk management, capital adequacy, and loss provisioning aligned with regulatory standards.

Vision

• Become Japan's most trusted guarantor for residential housing finance, promoting inclusive homeownership across all prefectures.
• Leverage technology and data-driven underwriting to improve speed, accuracy, and customer experience while preserving credit discipline.
• Expand service offerings to complement housing ecosystems (e.g., renovation loans, regional development projects) in collaboration with financial institutions and local governments.

Core Values

• Trust: Uphold transparency, regulatory compliance, and reliable fulfillment of guarantee obligations.
• Local Commitment: Foster partnerships that strengthen local communities and regional housing markets.
• Prudence: Pursue conservative credit assessment, loss provisioning, and risk controls to protect creditors and borrowers.
• Service Excellence: Streamline processes and offer clear guidance to borrowers and partner financial institutions.
• Innovation: Adopt digital credit assessment tools and operational efficiencies while safeguarding data privacy.

Selected Financial & Operational Metrics (as of Mar 31, 2025)

For an in-depth financial analysis and investor insights, see Breaking Down ZENKOKU HOSHO Co.,Ltd. Financial Health: Key Insights for Investors

ZENKOKU HOSHO Co.,Ltd. (7164.T) - Overview

'Our greatest mission is to help people realize their dream of owning their own home and to help them live a life of happiness in that home.' This mission underscores ZENKOKU HOSHO Co.,Ltd.'s dedication to facilitating homeownership and improving quality of life for individuals and families across Japan.

By providing credit guarantee services, ZENKOKU HOSHO enables smoother housing loan processes for customers by reducing reliance on personal guarantors and acting as a reliable joint guarantor for financial institutions. This dual role both expands access to mortgages and mitigates risk for lenders, fostering a more active housing loan market and contributing to local economic revitalization.

• Customer-centric guarantee model that lowers barriers to homeownership for first-time buyers and households without traditional guarantors.
• Risk-sharing with banks: joint-guarantee frameworks that support higher loan origination volumes while managing credit exposure.
• Community impact: supporting housing demand stimulates construction, real estate services, and local consumption.

The company's mission-driven operations translate into measurable impacts:

• Higher mortgage accessibility: joint-guarantee arrangements contribute to an estimated 10-15% increase in loan approvals among applicants lacking traditional guarantors.
• Risk mitigation: guarantee recoveries and loss rates are actively managed via underwriting standards and reserve provisioning, keeping credit costs contained.
• Local economic stimulation: for every ¥100 billion in new guarantees issued, related housing investment and construction activity can generate downstream local GDP effects (jobs, materials, services).

Strategic priorities aligned with the mission include expanding digital underwriting to shorten approval cycles, diversifying guarantee products for varied household needs (fixed-rate, variable-rate, combined loans), and reinforcing capital buffers to sustain guarantee capacity during economic cycles.

Investor and stakeholder context, including ownership trends and institutional holdings, can be explored in more detail here: Exploring ZENKOKU HOSHO Co.,Ltd. Investor Profile: Who's Buying and Why?

ZENKOKU HOSHO Co.,Ltd. (7164.T) - Mission Statement

• Linking housing security to social stability: homeownership reduces housing insecurity, supports family wealth accumulation, and stabilizes local demand for goods and services.
• Contribution to sustainable development: through affordable housing facilitation, ZENKOKU HOSHO advances goals related to sustainable cities and communities (UN SDG 11) and poverty reduction (UN SDG 1).
• Holistic corporate responsibility: risk management and guarantee services are positioned as enablers of broader economic development, not just financial products.

• Expanded access: streamlined guarantee processes and partnerships with regional lenders to reach underbanked households and first-time buyers.
• Risk management: robust credit assessment, reserves and reinsurance arrangements to maintain solvency while scaling guarantee volumes.
• Community investment: targeted programs (financial literacy, homeownership counseling) to improve loan performance and social outcomes.
• Alignment with global frameworks: mapping corporate initiatives to UN SDGs and disclosing impact metrics for transparency.

• Maintaining capital adequacy and reserve ratios to keep claims-paying capacity above regulatory minima.
• Pricing guarantees to reflect portfolio risk while preserving affordability for low- and moderate-income borrowers.
• Monitoring portfolio performance via leading indicators (early delinquency rates, regional unemployment trends).

ZENKOKU HOSHO Co.,Ltd. (7164.T) - Vision Statement

• Deepening trust through transparent, integrity-driven operations.
• Strengthening reliability by improving guarantee processes and lender relationships.
• Driving innovation in credit assessment, digital services, and risk-modeling.
• Putting customers first via tailored guarantee products and counseling services.
• Engaging communities to support regional revitalization and safe housing supply.
• Embedding sustainability in lending practices, corporate governance, and ESG reporting.

• Rigorous underwriting standards and full compliance with financial regulations to ensure trust between borrowers, lenders, and investors.
• Transparent disclosure of guarantee terms and performance metrics to stakeholders and the market.

• Consistent claims performance and timely support to partner financial institutions-key to sustaining long-term business relationships.
• Operational continuity planning and capital management aimed at meeting obligations across economic cycles.

• Investment in data-driven credit models and digital platforms to shorten approval times and reduce operational costs.
• Pilot programs for alternative credit scoring and green mortgage guarantees to capture new market needs.

• Personalized guarantee products for first-time buyers, the elderly, and regional borrowers to address demographic shifts.
• Advisory services and post-issuance support to reduce borrower default risk and improve customer satisfaction.

• Partnerships with municipal governments and local banks to finance community housing projects and renovation programs.
• Targeted guarantee schemes aimed at stimulating housing demand in depopulated areas.

• Integration of environmental criteria into guarantee eligibility for energy-efficient and seismic-retrofit projects.
• ESG disclosures and targets tied to portfolio carbon reduction and social impact metrics.