Breaking Down Hokkoku Financial Holdings, Inc. Financial Health: Key Insights for Investors

Founded on October 1, 2021 and headquartered in Kanazawa, Ishikawa, Hokkoku Financial Holdings, Inc. (7381.T) has evolved from a traditional regional bank into a diversified financial group-banking, leasing, credit services and consulting-rebranding in October 2025 as CCI Group to emphasize Communication, Collaboration, and Innovation; its mission to 'enrich interaction and growth in the region' positions the company as a bridge to local prosperity while its vision to be a 'next-generation integrated regional company' drives concrete ESG commitments including 100% compliance with environmental standards and projects targeting a 30% reduction in carbon footprint within three years, alongside ambitions for global reach with a stated goal of entering three new international markets by 2024, all underscored by core values of integrity, customer centricity, innovation, community engagement and sustainability that aim to strengthen regional revitalization and stakeholder value.

Hokkoku Financial Holdings, Inc. (7381.T) - Intro

• Primary activities: retail & corporate banking, leasing, credit card & consumer finance, M&A and business consulting, regional development financing.
• Strategic emphasis post-rebrand: cross-sector collaboration with public and private partners, digital transformation, ESG-linked financing, and new business incubation for local SMEs.
• Geographic footprint: core operations in Ishikawa and neighboring prefectures with targeted expansion via partnerships and digital channels.

• Deliver comprehensive financial and advisory solutions that enable sustainable regional economies and improve quality of life for local communities.

• Transform into CCI Group - a platform that leverages Communication, Collaboration, and Innovation to be the primary catalyst of regional revitalization, digital inclusion, and resilient local growth.

• Community-first: prioritize regional needs and long-term stakeholder value.
• Collaboration: partner with governments, corporates, and NPOs to scale impact.
• Integrity: maintain transparent governance, risk discipline, and customer-centric compliance.
• Innovation: accelerate digital channels, data-driven credit, and ESG-linked products.
• Stewardship: invest in human capital and sustainable projects that deliver measurable social and economic returns.

• Regional Revitalization Fund: blended-finance vehicle targeting SMEs, renewable energy, and community infrastructure (initial target JPY 25 billion).
• Digital Banking & Data Hub: phased rollout to increase online customer penetration from ~22% to 50% by FY2026, enabling cost-to-income improvements.
• ESG-linked lending: tie pricing to verified ESG KPIs; target 20% of new corporate loans to have ESG-linked features by FY2026.
• Open collaboration platforms: joint ventures with local governments and tech firms for workforce development and smart-city pilots.

• Net interest margin (NIM), cost-to-income ratio, ROE, CET1/equity ratio, NPL trend, digital adoption rate, and social impact KPIs (jobs supported, CO2 avoided).

Hokkoku Financial Holdings, Inc. (7381.T) - Overview

Hokkoku Financial Holdings' mission - to 'enrich interaction and growth in the region' and to act as a 'bridge to a fruitful regional future' - defines its strategic orientation toward localized development, community engagement, and sustainable value creation. The mission emphasizes addressing regional challenges, strengthening stakeholder trust, and fostering economic vitality across the areas it serves.

• Regional development focus: prioritize financing, advisory, and partnership activities that support SMEs, agriculture, tourism, and local infrastructure projects.
• Community engagement: support social welfare, education, and cultural initiatives to enhance quality of life in Ishikawa Prefecture and neighboring areas.
• Stakeholder trust: build long-term relationships with customers, employees, regional partners, and public-sector bodies to sustain mutual growth.
• Sustainable value creation: align banking services and investments with long-term economic resilience and environmental stewardship in the region.

The mission drives concrete business choices - from credit allocation to non-financial support - intended to translate community needs into measurable economic outcomes while maintaining prudent financial management.

Mission-driven initiatives and measurable programs:

• Targeted SME support: preferential lending terms, credit guarantees, and business-matching services to stimulate employment and productivity growth in the region.
• Local infrastructure financing: participation in municipal bonds, public-private partnerships, and community redevelopment projects to boost long-term regional competitiveness.
• Financial inclusion and services: expanded digital access, branch services for elderly populations, and financial education to raise household financial resilience.
• ESG and sustainability efforts: lending and investment screening that incorporate environmental and social criteria to preserve regional natural assets and social capital.

Monitoring mission impact uses a combination of financial and social KPIs to ensure alignment between business results and regional enrichment goals.

The mission is linked with corporate governance and strategy: board-level oversight, performance targets for regional impact, and employee incentive structures that reward community-oriented outcomes as well as financial performance.

Further corporate background and mission context: Hokkoku Financial Holdings, Inc.: History, Ownership, Mission, How It Works & Makes Money

Hokkoku Financial Holdings, Inc. (7381.T) - Mission Statement

• Deliver stable, customer-centric financial services to households, SMEs, and local governments across Ishikawa Prefecture and neighboring regions.
• Embed ESG into core business decisions to address climate risk, social inclusion, and high standards of governance.
• Foster regional industries - agriculture, manufacturing, tourism, and healthcare - through financing, advisory services, and partnerships.
• Create new revenue streams by integrating non-bank services (asset management, trust services, fintech collaboration) while maintaining prudent risk management.

• Transition to a comprehensive regional platform that addresses financial and non-financial needs.
• Promote decarbonization and climate resilience via green loans, energy-efficiency financing, and advisory support for local SMEs.
• Advance social inclusion through financial literacy programs, support for community care services, and targeted lending to underserved groups.
• Ensure transparent governance practices, robust compliance, and stakeholder engagement to sustain long-term trust.

• Green financing target: expand renewable-energy and energy-efficiency lending to achieve ¥100 billion cumulative disbursements within five years.
• Carbon reduction: support for client decarbonization projects aiming to reduce financed emissions intensity across corporate loan portfolios.
• Community impact: increase SME advisory engagements by 30% year-on-year, with special programs for digital transformation and disaster resilience.
• Governance: maintain capital adequacy above regulatory buffers and strengthen risk-management frameworks to preserve stakeholder confidence.

• Product innovation - develop bundled services (loans + advisory + insurance + digital tools) tailored for regional SMEs and municipalities.
• Partnerships - collaborate with local governments, industry associations, and fintechs to scale community projects and ESG initiatives.
• Human capital - invest in upskilling staff on sustainability finance, digital banking, and regional consulting capabilities.
• Measurement - integrate KPIs for social and environmental outcomes into executive remuneration and annual reporting.

Hokkoku Financial Holdings, Inc. (7381.T) - Vision Statement

• Integrity: Upholding honesty, transparency, and ethical behavior across governance, risk management, and frontline operations.
• Customer Centricity: Designing products and services around customer lifetime value-prioritizing SMEs, retail households, and local public-sector clients.
• Innovation: Embedding continuous improvement through digital banking, APIs, and data-driven credit decisioning to lift efficiency and customer experience.
• Community Engagement: Investing in regional economic development, financial education, and philanthropic initiatives that strengthen social capital.
• Sustainability: Committing to robust environmental standards with clear targets to reduce operational carbon intensity and finance green projects.
• Global Expansion: Targeting selective entry into three new international markets to diversify revenue pools and support corporate clients' cross-border needs.

• Enhance capital and liquidity resilience while maintaining a prudent credit culture to support regional SMEs through economic cycles.
• Accelerate digital adoption: mobile-first retail services, SME digital onboarding, and automation of back-office processes to reduce cost-to-income ratio.
• Operationalize sustainability: integrate ESG scoring into lending, launch green loan products, and set facility-level decarbonization plans.
• Execute targeted international expansion into up to three markets by 2024 with representative offices or partnership models rather than full-scale branches.

• Governance & Ethics: 100% of senior management and branch heads certified in updated compliance and ethics training annually.
• Customer Experience: Achieve Net Promoter Score (NPS) improvement of 10 points over 24 months through digital and service redesign.
• Innovation Pipeline: Launch at least 6 digital products (mobile features, SME portals, API services) within 18 months.
• Sustainability Execution: 100% compliance with applicable environmental standards and phased lending criteria for green projects to meet the 30% carbon reduction target within three years.
• International Footprint: Establish representative offices or strategic partnerships in three targeted markets by end-2024 with associated cross-border product suites for corporate clients.

• Integrity - Strengthen disclosure transparency with quarterly sustainability and risk dashboards made available to stakeholders.
• Customer Centricity - Introduce segmented relationship managers and tailored SME advisory services to increase share-of-wallet.
• Innovation - Create an internal innovation lab and partner with fintechs to co-develop credit-scoring models and payment rails.
• Community Engagement - Expand financial literacy programs and community lending facilities with measurable social outcomes.
• Sustainability - Issue green bonds and green loan frameworks; set interim science-based targets for financed emissions.
• Global Expansion - Adopt partnership-first entry: correspondent banking, joint ventures, and representative offices to mitigate market-entry risk.