Tokyo Kiraboshi Financial Group, Inc. (7173.T) Bundle
Discover how Tokyo Kiraboshi Financial Group, Inc. - formed on October 1, 2014 through the merger of Tokyo Tomin Bank and Kiraboshi Bank - has translated its SME-focused mission into measurable growth, posting a 16.2% revenue rise to ¥160.87 billion and a 22.2% jump in net income to ¥31.36 billion for the fiscal year ending March 31, 2025, while revising ordinary profit guidance up by 27.4% to ¥40.9 billion and lifting its annual dividend to ¥160 per share; with total assets of ¥7,005.85 billion and net assets of ¥378.99 billion as of September 30, 2025, a capital base of ¥27.5 billion, a market cap of about ¥260.20 billion (as of December 12, 2025), and recognition on Forbes' Global 2000 (ranked 1995 globally, 179 in Japan for 2025), the Group leverages Kiraboshi Bank, diversified fee businesses (credit cards, consulting, investment management), digital banking and strategic real estate moves-like acquiring 13.5% of CO・MO・RE YOTSUYA for ¥29.05 billion and boosting Hachioji First Square stake to 84.4%-within an ownership mix of 59% individual and 31% institutional investors, with the top 25 shareholders holding 40% and shares listed on the Tokyo Stock Exchange Prime Market to drive future growth.
Tokyo Kiraboshi Financial Group, Inc. (7173.T): Intro
History Tokyo Kiraboshi Financial Group, Inc. (7173.T) was established on October 1, 2014, through the merger of Tokyo Tomin Bank, Ltd. and Kiraboshi Bank, Ltd., consolidating local banking capabilities to better serve small and medium-sized enterprises (SMEs) and retail customers in the Tokyo metropolitan area. Since formation the group has pursued scale, digitalization, and strategic investments to expand service offerings and strengthen its balance sheet.- Founding date: October 1, 2014 (merger of Tokyo Tomin Bank and Kiraboshi Bank)
- Primary focus: SME lending, retail deposits, regional corporate finance, and fee businesses
- Geographic focus: Tokyo metropolitan area with nationwide financial product distribution
| Metric / Event | Value / Detail |
|---|---|
| Revenue (FY ending Mar 31, 2025) | ¥160.87 billion (▲16.2% YoY) |
| Net income (FY ending Mar 31, 2025) | ¥31.36 billion (▲22.2% YoY) |
| Ordinary profit forecast (revised Mar 2025) | ¥40.9 billion (up 27.4% revision; ▲24.1% YoY) |
| Annual dividend (FY 2025) | ¥160 per share (increased) |
| Total assets (as of Sep 30, 2025) | ¥7,005.85 billion |
| Net assets (as of Sep 30, 2025) | ¥378.99 billion |
| Major acquisition / investment (Mar 2025) | 13.5% stake in CO・MO・RE YOTSUYA for ¥29.05 billion |
| Forbes Global 2000 (2025) | Ranked 1,995 globally; 179 in Japan |
- Share listing: Tokyo Stock Exchange (Ticker: 7173.T)
- Major shareholders: mix of institutional investors, regional corporations, and cross-holdings typical of Japanese regional banking groups (significant bank-related and corporate cross-shareholdings)
- Dividend policy: progressive payout supported by strengthened earnings and retained capital adequacy
- Mission: Support the growth and resilience of SMEs and local communities through tailored financial services and advisory
- Strategic priorities: customer-centric SME financing, digital channel expansion, portfolio diversification, and selective strategic investments
- Governance emphasis: prudent risk management, capital efficiency, and sustainable community engagement
- Core lending: interest income from loans to SMEs, commercial real estate finance, and consumer loans (primary source of net interest income)
- Deposit taking: stable funding base via retail and corporate deposits; focus on cross-selling deposit-linked services
- Fee and commission income: advisory, syndication, payment services, trust and investment product sales
- Investment & securities: trading and investment securities income, strategic equity stakes (e.g., CO・MO・RE YOTSUYA) to capture capital gains and fee opportunities
- Cost management: branch network optimization and digital channel investment to improve efficiency ratios
| Revenue Source | Role in Profitability |
|---|---|
| Net interest income | Mainstay of revenue; driven by loan growth and interest margin management |
| Fee & commission income | Grows via advisory services, asset management, and payment/settlement services |
| Investment securities & equity interests | Supplementary income and strategic capital gains (active portfolio expansion noted) |
| Non-performing loan (NPL) management | Asset quality maintenance critical to protect net income; provisions influence volatility |
| Cost control / efficiency | Branch rationalization, digitalization reduce operating expenses and lift ROE |
- Revenue growth (FY2025): +16.2% to ¥160.87 billion
- Net income growth (FY2025): +22.2% to ¥31.36 billion
- Ordinary profit target (FY2025): ¥40.9 billion (revised upward)
- Dividend per share (FY2025): ¥160
- Balance sheet scale (Sep 30, 2025): Total assets ¥7,005.85 billion; Net assets ¥378.99 billion
Tokyo Kiraboshi Financial Group, Inc. (7173.T): History
Tokyo Kiraboshi Financial Group traces its roots to regional banking and financial services in Tokyo's Tama area, expanding through mergers, strategic real estate investments and diversification into fee-based services. Since listing on the Tokyo Stock Exchange Prime Market, the group has pursued a dual strategy of strengthening core banking while growing non-interest income via property and investment holdings.- Founded from legacy regional banks that consolidated operations to serve metropolitan Tokyo and surrounding prefectures.
- Listed on the Tokyo Stock Exchange Prime Market to access capital and improve liquidity for expansion.
- Transitioned from a pure commercial bank model toward a financial group structure with real estate and investment arms.
| Metric | Value |
|---|---|
| Individual investor ownership (as of Mar 26, 2025) | 59% |
| Institutional investor ownership (as of Mar 26, 2025) | 31% |
| Top 25 shareholders' collective stake | 40% |
| Capital (as of Sep 30, 2025) | ¥27.5 billion |
| Stake in Hachioji First Square (Dec 2024) | 84.4% |
| Stake in CO・MO・RE YOTSUYA (Mar 2025) | 13.5% (¥29.05 billion) |
| Stock listing | Tokyo Stock Exchange - Prime Market (7173.T) |
- Ownership structure highlights a balanced retail-dominated base with meaningful institutional participation and concentration: 59% individual vs 31% institutional, top 25 hold 40%.
- Strategic real estate control strengthened by increasing Hachioji First Square to 84.4% (Dec 2024) and acquiring a 13.5% stake in CO・MO・RE YOTSUYA for ¥29.05 billion (Mar 2025).
- Primary revenue drivers and how Tokyo Kiraboshi Financial Group makes money:
- Net interest income from lending and deposit spread.
- Fee and commission income from wealth management, agency services and transaction fees.
- Investment and property income from equity stakes (e.g., CO・MO・RE YOTSUYA) and consolidated real estate holdings (Hachioji First Square).
- Capital efficiency supported by ¥27.5 billion in capital (Sep 30, 2025) enabling lending growth and investments.
Tokyo Kiraboshi Financial Group, Inc. (7173.T): Ownership Structure
History and Overview- Founded as a regional banking group serving the Tokyo metropolitan area, Tokyo Kiraboshi Financial Group, Inc. (7173.T) has concentrated on small and medium-sized enterprises (SMEs) and local retail customers.
- The group is listed on the Tokyo Stock Exchange (ticker: 7173) and operates a network of branches across Tokyo and surrounding prefectures, combining traditional branch banking with digital channels.
- Customer-centric: providing tailored financial services to SMEs and local households.
- Innovation: investing in digital banking and fintech to streamline operations and improve customer experience.
- Sustainability: promoting responsible lending and investments that support local economic and social development.
- Integrity and transparency: governance and disclosure practices designed to build trust with clients and markets.
- Continuous improvement: focused on employee development and technology to sustain competitiveness.
- Major shareholders typically include domestic financial institutions, regional banks, corporate investors, and cross-shareholdings from corporate clients and local governments.
- Free float on the Tokyo Stock Exchange represents retail and institutional investors both inside and outside Japan.
- Shareholder composition emphasizes stable regional support combined with public equity liquidity.
- Corporate banking: lending, cash management, and advisory services targeted at SMEs.
- Retail banking: deposits, mortgages, consumer lending and wealth management for individuals.
- Market and investment operations: securities handling, bond investments and ALM (asset-liability management).
- Fee income businesses: guarantees, commissions on syndicated loans, and transaction services.
- Digital services: online banking, mobile apps, and fintech partnerships to improve cost efficiency and client access.
- Net interest income (NII): primary revenue source generated from the spread between lending rates and deposit/funding costs.
- Fee and commission income: from guarantees, transaction banking, and advisory services.
- Investment income: realized/unrealized gains on securities portfolios and bond holdings.
- Cost control and efficiency: branch network optimization and digital adoption to improve cost-to-income ratios.
| Metric | Amount (JPY) | Notes |
|---|---|---|
| Total assets | ¥4.1 trillion | Consolidated balance sheet size |
| Loan balances (net) | ¥2.5 trillion | Core lending to SMEs and corporates |
| Deposits | ¥3.2 trillion | Retail and corporate deposits |
| Net interest income | ¥60-70 billion | Main operating income |
| Operating income | ¥80-90 billion | Includes fees and securities income |
| Net income (profit attributable to owners) | ¥18-28 billion | After credit costs and taxes |
| Common equity Tier 1 (CET1) ratio | ~10-12% | Regulatory capital adequacy |
| Cost-to-income ratio | ~55-65% | Efficiency measure influenced by IT investments |
- Credit risk: focused underwriting standards for SME borrowers and sector diversification to limit concentration risk.
- Market and liquidity risk: active ALM to manage interest-rate exposure and funding stability.
- ESG integration: lending policies and investment frameworks incorporate environmental and social considerations to support sustainable local development.
Tokyo Kiraboshi Financial Group, Inc. (7173.T): Mission and Values
Tokyo Kiraboshi Financial Group, Inc. (7173.T) positions itself as a regional financial group centered on Kiraboshi Bank, Ltd., combining traditional community banking with modern fintech and non-bank services to support households, SMEs, and local governments in the Tokyo metropolitan area. Its stated mission emphasizes regional revitalization, customer-focused solutions, and sustainable, stable profit generation while maintaining prudent risk management.- Focus on relationship banking: support for individuals, small and medium enterprises (SMEs), and local public entities through deposit-taking, lending, and advisory services.
- Digital transformation: invest in fintech to improve customer experience, operational efficiency, and product distribution.
- Diversified revenue model: combine interest income with fee-based income from card services, guarantees, asset management, securities, and consulting.
- Community and sustainability: policies to support housing, regional development and corporate governance aligned with long-term financial stability.
- Retail banking: deposit accounts, consumer loans, mortgage/home loans, credit cards, and foreign exchange services for customers in the Greater Tokyo area.
- Corporate & SME banking: working capital loans, term loans, trade-related FX, and tailored financing for local businesses.
- Loan guarantee business: providing guarantees for housing loans and SME credit, often through affiliated guarantee entities to expand credit access.
- Investment & securities: proprietary securities holdings, brokerage and securities trading services, and investment trust management for clients.
- Information & IT services: information provision, computer-related services, and centralized administrative functions for efficiency across group companies.
- Consulting & auxiliary services: corporate consulting, management of advertising supplies, and centralized administrative works to support client operations.
- Fintech/digital banking: development and deployment of digital channels, mobile banking, and fintech partnerships to lower costs and attract new customers.
- Net interest income: spread between deposit funding costs and yields on loans and securities - historically the largest contributor to operating income.
- Fee and commission income: credit card fees, loan guarantee fees, brokerage/asset management fees, consulting fees, and commissions on insurance and investment products.
- Trading and investment gains: realized/unrealized gains from securities trading and strategic equity holdings.
- Service and administrative income: revenues from IT services, outsourced back-office operations and information provision to corporate clients.
| Metric | Value (approx.) |
|---|---|
| Consolidated total assets | ¥2.3 trillion |
| Deposits (total customer deposits) | ¥1.7-1.9 trillion |
| Outstanding loans (gross) | ¥1.1-1.3 trillion |
| Net interest margin (NIM) | ~0.60%-0.90% |
| Annual consolidated net income | ¥6-10 billion |
| Return on equity (ROE) | ~4%-7% |
| Capital adequacy (Tier 1 / CET1) | Common equity tier 1 ratio ~12%-13% |
| Number of employees (group) | ~1,500-2,000 |
- Interest-rate environment: net interest income is sensitive to the Bank of Japan policy rate and yield curve; extended low rates compress margins but increase demand for fee-based services and lending.
- Credit risk: loan portfolio concentrated in regional SMEs and mortgages; underwriting quality, provisioning and non-performing loan trends materially affect profitability.
- Fee-income growth: expansion of credit card services, guarantees and asset-management offerings increases recurring non-interest income, stabilizing revenues amid margin pressure.
- Digital initiatives: investment in fintech reduces unit costs over time and accelerates customer acquisition, but requires upfront capex and integration risk management.
| Segment | Main Services | Revenue Role |
|---|---|---|
| Retail | Deposits, mortgages, consumer loans, credit cards, FX services | Primary source of deposit funding; mortgages provide stable long-term interest income |
| SME & Corporate | Working capital loans, term loans, business consulting, cash management | Higher-yield loans; relationship-driven cross-sell opportunities |
| Guarantee & Mortgage-related | Loan guarantees, housing loan programs | Fee income and expansion of lending capacity via risk-sharing |
| Securities & Investment | Proprietary securities, brokerage, investment trust management | Fee and trading income; portfolio diversification |
| IT & Administrative | Information provision, centralized admin, computer services | Service revenue and cost synergies across the group |
- Accelerating digital channels (mobile banking, API integration) to lower distribution costs and retain younger customers.
- Expanding fee-based services such as credit cards, investment trusts and consulting to diversify income away from interest-rate sensitivity.
- Strengthening credit-screening and portfolio monitoring to control credit costs amid economic cycles.
- Collaboration with fintech partners and group affiliates to bundle products (e.g., loans + guarantees + payment services) and increase wallet share.
Tokyo Kiraboshi Financial Group, Inc. (7173.T): How It Works
Tokyo Kiraboshi Financial Group, Inc. (7173.T) operates principally as a regional banking group centered on Kiraboshi Bank, combining traditional retail and corporate banking with growing digital and non-interest businesses. The group's business model is built around interest income from lending and deposits, supplemented by fee-based services, investment activities, and fintech-enabled products. Business model - core components- Interest income: Net interest margin generated from retail mortgages, corporate loans, and interbank placements.
- Fee and commission income: Credit-card processing, account/transaction fees, and payment services.
- Wealth & securities: Investment management, securities trading and advisory fees.
- Corporate services: Consulting, leased advertising/marketing supplies, and corporate IT solutions.
- Fintech & digital banking: Mobile/online banking fees, API monetization, and partner platforms.
- Loan guarantees & home loans: Upfront fees, recurring servicing fees and interest spreads.
- Loans and deposits: Primary revenue from interest spread - lending rates minus deposit funding costs. Mortgage and small-to-medium enterprise (SME) lending are significant contributors.
- Credit card & payment services: Merchant fees, interchange income and cardholder fees provide stable non-interest income.
- Investment activities: Proprietary securities trading and client asset management generate commissions and trading gains.
- Information & IT services: Selling information services, system integration and hosting to corporate clients increases recurring fee revenues.
- Consulting & advertising management: Advisory fees and management of corporate advertising supplies add diversified revenue lines.
- Guarantee services: Income from loan guarantees and related credit-enhancement products supports SME lending penetration.
- Digital initiatives: Subscription and transaction fees from digital channels, plus cross-sell of financial products via fintech partnerships.
| Metric | FY2023 (Approx.) | Notes |
|---|---|---|
| Total assets | ¥3.5 trillion | Group consolidated assets reflecting retail and corporate loan book |
| Net interest income | ¥45 billion | Main earnings driver from loans-deposits spread |
| Non-interest income | ¥18 billion | Fees, commissions, trading and service revenues |
| Operating profit | ¥30 billion | Before extraordinary items |
| Loan portfolio composition | Retail 55% / SME 30% / Corporate 15% | Mortgages and SME lending dominate |
| Net interest margin (NIM) | ~0.9%-1.2% | Reflecting low-rate environment and regional bank funding mix |
| Return on equity (ROE) | ~5%-7% | Typical mid-sized regional bank range |
- Interest income (loans & deposits): ~60-65%
- Fees & commissions (cards, payments, services): ~20-25%
- Investment & trading returns: ~5-10%
- Consulting, IT, advertising management: ~5-8%
- Loan growth and mix - expansion in mortgages and SME lending increases interest income but requires disciplined credit control.
- Deposit funding costs - maintaining low-cost current and savings accounts preserves NIM.
- Fee income expansion - scaling card, payment and advisory services lifts non-interest revenue share.
- Investment returns and balance-sheet management - active securities portfolio and liquidity allocation affect trading gains and risk-adjusted returns.
- Digital transformation - reducing branch costs while boosting transaction volume and cross-sell via online channels.
- Credit costs - default rates and provisioning materially impact net profits.
- Digitization: Mobile banking upgrades and fintech tie-ups to increase transaction-based fees and lower servicing costs.
- Cross-sell: Use deposit and payment relationships to sell mortgages, investment products, and insurance.
- Platform services: Offer back-office IT, data analytics and payment gateways to SMEs and partners for recurring revenues.
- Asset management scaling: Grow advisory and discretionary mandates to capture higher-margin fee income.
Tokyo Kiraboshi Financial Group, Inc. (7173.T): How It Makes Money
Tokyo Kiraboshi Financial Group, Inc. (7173.T) generates earnings primarily through traditional regional banking activities-interest income from loans and securities-complemented by fee-based services, asset management, and strategic investments that diversify revenue streams. Its ongoing digital transformation and fintech initiatives aim to enhance fee income and operational efficiency, supporting margin expansion.- Core lending: interest spreads on commercial, consumer, and real-estate-related loans to Tokyo metropolitan SMEs and households.
- Securities portfolio: interest and gains from government and corporate bond holdings and portfolio rebalancing.
- Fee-based services: transaction and advisory fees, trust banking, card and cash-management services for corporate clients.
- Investment returns: equity stakes (e.g., 13.5% in CO・MO・RE YOTSUYA) and strategic JV/PE investments to capture capital gains and recurring dividends.
- Digital/Fintech: platform fees, API banking services, and digital product monetization aimed at increasing non-interest income.
| Metric | Value (FY/Date) |
|---|---|
| Market Capitalization | ¥260.20 billion (Dec 12, 2025) |
| Forbes Global 2000 Rank | 1995 globally; 179 in Japan (2025) |
| Revenue Growth (YoY) | +16.2% (FY ended Mar 31, 2025) |
| Net Income Growth (YoY) | +22.2% (FY ended Mar 31, 2025) |
| Ordinary Profit Forecast (revised) | ¥40.9 billion (+27.4% revision, Mar 2025) |
| Notable Investment | 13.5% stake in CO・MO・RE YOTSUYA (strategic diversification) |
- Market position: mid-sized regional financial group with strong Tokyo-area franchise and diversified income mix.
- Growth drivers: lending expansion to SMEs, higher-yield securities, fee income from digital products, and strategic M&A/investments.
- Risks: interest-rate volatility, regional economic cycles, and integration/execution risk on fintech initiatives.
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