Breaking Down Aichi Financial Group, Inc. Financial Health: Key Insights for Investors

Discover how 7389.T, Aichi Financial Group, Inc., forged from the union of Aichi Bank and Chukyo Bank to serve Aichi Prefecture, anchors its future on a clear VISION-a Purpose, Mission and Value framework that drives its ambition to be the No. 1 regional financial group by solidifying a business platform through robust operations, delivering financial services useful to all customers, and becoming the trusted, closest financial partner for local communities while also prioritizing employee well-being and sustainable corporate value.

Aichi Financial Group, Inc. (7389.T) - Intro

• Headquarters: Nagoya, Aichi Prefecture
• Primary focus: Retail and corporate banking within Aichi and the Chubu region
• Corporate identity: Emphasizes local roots and regional revitalization

• Support sustainable regional growth by providing stable financing and tailored financial services to households, SMEs, and local governments.
• Anchor the local economy through lending, deposit services, and community initiatives that reinforce employment and investment in Aichi Prefecture.

• Deliver accessible, trusted banking solutions that are "closest to the customer" - combining digital capabilities with local branch presence.
• Maintain a robust business foundation, balancing profitability with prudent risk management and capital adequacy.
• Drive inclusive economic participation by supporting SMEs and regional revitalization programs.

• Customer-first orientation - products and channels designed to meet diverse local needs.
• Regional commitment - the corporate name and operations reflect a strategic focus on Aichi Prefecture.
• Operational resilience - emphasis on solid financial metrics, cost discipline, and credit quality.
• Collaborative culture - leveraging synergies across legacy banks for product innovation and efficiency.

• Strengthening retail banking through branch modernization and expanded digital services to raise customer convenience and cross-sell rates.
• Enhancing SME support by increasing loan programs, advisory services, and supply-chain finance to boost local corporate credit growth.
• Maintaining capital and liquidity buffers consistent with regulatory standards and a conservative risk appetite; targeted CET1 and leverage metrics are monitored to preserve stability.
• Cost efficiency programs to improve recurring earnings and ROE while investing selectively in technology and compliance.

• Loan/deposit ratio managed to balance margins with liquidity-target range ~80-90% depending on market conditions.
• Non-performing loan ratio maintained at low single digits through proactive credit monitoring and workout capabilities.
• Efficiency ratio improvements via branch rationalization and digital adoption to protect net interest margin.

• Community finance initiatives, SME seminars, and public-private partnerships to stimulate local investment and job creation.
• Programs for disaster resilience and social welfare in Aichi Prefecture, leveraging branch network for outreach.
• Transparent investor communications and steady dividend policy aimed at long-term shareholder confidence.

Aichi Financial Group, Inc. (7389.T) Overview

• Mission focus: Become the No. 1 regional financial group in Aichi Prefecture by strengthening local ties and operational resilience.
• Customer promise: Provide financial services that are useful to all customer segments-retail, SMEs, and communities.
• Trust & proximity: Build a financial group trusted by local communities through accessible branches, advisory services, and community engagement.
• Operational foundation: Solidify earnings base via diversified revenue streams, cost efficiency, and prudent risk management.

• Deepen SME and retail relationships through tailored lending, cash management, and advisory solutions.
• Enhance digital channels while maintaining branch accessibility to preserve community proximity.
• Strengthen capital and earnings quality to support stable dividends and growth.
• Expand fee income (wealth management, corporate solutions) to reduce reliance on interest margins.

• Localized product development: deposit, mortgage, and SME loan products tailored to Aichi demographics and industries.
• Community finance programs: support for local revitalization, regional investment, and financial literacy campaigns.
• Digital-physical integration: enrich online services while keeping branch advisory functions for relationship banking.
• Risk control: maintain prudent credit policies and diversified revenue to protect the platform during economic cycles.

Aichi Financial Group, Inc. (7389.T) - Mission Statement

• Contribute to the prosperity of local communities through accessible, practical financial services.
• Build and maintain a solid business foundation to ensure stability and continuity of services.
• Be the financial group most trusted by local communities by deepening customer relationships and enhancing service usefulness.
• Realize employee happiness through targeted employee satisfaction management and comprehensive health management programs.
• Support regional economic growth by prioritizing lending, investment, and advisory services tailored to local needs.

• Strengthening branch and digital channels to ensure services are useful and close to customers.
• Maintaining prudential capital and liquidity metrics to protect community confidence.
• Expanding SME lending and tailored financial solutions to stimulate local economies.

• Employee satisfaction management: periodic engagement surveys, career development plans, and performance-linked incentives designed to boost motivation and retention.
• Health management: comprehensive workplace health initiatives, mental health support, and absenteeism reduction targets to sustain productivity and wellbeing.
• Training programs: upskilling in digital banking, risk management, and community advisory services to align staff capabilities with mission goals.

• Conservative risk management frameworks and transparent disclosures to preserve depositor and investor trust.
• Local engagement: partnerships with municipalities, chambers of commerce, and nonprofit organizations to co-develop community finance programs.
• ESG integration: initiatives to support regional decarbonization, financial inclusion, and sustainable lending practices.

Aichi Financial Group, Inc. (7389.T) - Vision Statement

• Solid operational foundations: rigorous risk management, compliance, and capital adequacy to ensure stable service to customers and communities.
• Trusted by local communities: maintain proximity and responsiveness so customers see AFG as the most reliable regional financial partner.
• Financial services for all customers: broaden product accessibility and usability across retail, SME, and institutional segments.
• Happiness and health of officers and employees: embed employee satisfaction management and health management to realize wellbeing and productivity.
• Sustainable growth and enhanced corporate value: pursue profitable growth while strengthening ESG initiatives and capital efficiency.
• Always close to customers: be the go-to place in the region to consult with and rely on for financial needs.

• Operational resilience - maintain capital and liquidity buffers, and continuous improvement in internal controls; target CET1 and liquidity metrics aligned with regulators.
• Community trust - expand branch advisory services and regional lending programs focused on SMEs, with local financial education events and disaster-response financing.
• Customer usefulness - enhance digital channels, increase fee-income services (wealth management, insurance intermediation), and streamline onboarding to reduce turnaround times.
• Employee wellbeing - measure and improve employee engagement scores, implement health promotion and work-style reforms, and link talent development to succession planning.
• Sustainable corporate value - integrate ESG metrics into lending and investment, pursue cost efficiency (branch optimization and digitalization), and maintain disciplined dividend and share-repurchase policies to balance shareholder returns and capital needs.