[Company analysis] Fukuoka Financial Group, Inc. (ふくおかフィナンシャルグループ)

「Fukuoka Financial Group, Inc. (ふくおかフィナンシャルグループ)」owns「The Bank Of Fukuoka(福岡銀行)」,「Kumamoto Family Bank(熊本ファミリー銀行)」and「The Shinwa Bank(親和銀行)」, as a financial holding company based in the Kyushu region. 「Fukuoka Financial Group」is competing with「Concordia Financial Group(コンコルディア・フィナンシャルグループ)」for No. 1 Japanese regional banks in total assets. The number of consolidated employees is approximately 6,717.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Fukuoka Financial Group, Inc.
Company name (Japanese)	ふくおかフィナンシャルグループ
Date of establishment	Monday, April 2, 2007
Headquarters location	〒810-8693 福岡県福岡市中央区大手門1丁目8-3
Capital	124,799
Consolidated sales	246,112
Consolidated operating profit	74,093
Consolidated total assets	20,839,786
Consolidated capital	777,308
Capital adequacy ratio	3.7%
Consolidated number of employees	6,717

 

 

 

2. Summary and Features

 
「Fukuoka Financial Group」has a basic management style of "single platform and multi-brand". As a financial holding company, it owns「Fukuoka Bank」,「Kumamoto Family Bank」and「Shinwa Bank」, and established solid foundation in the Kyushu area. They are making good use of their well-organized branch network and have megabank-class reliability. Thanks to this features, their brand power in Kyushu area can be compared with megabanks.

「Fukuoka Bank」, the core company of the「Fukuoka Financial Group」, was the 17th national bank in Japan. Similar to「The Chiba Bank」, it was established in the era of the Pacific War by integrating all banks in the Fukuoka. At the time of its beginning, as a Japanese regional bank, it had the largest total assets. However, economy growth of Kyushu area was temporarily delayed due to the decline of the coal mining industry, which was a key industry in Fukuoka Prefecture.

Nevertheless,「Fukuoka Bank」has a very low NPL ratio and a solid financial base, so it is still regarded as one of the top class regional bank in Japan. This bank has 53 branches in Fukuoka city and 26 branches in Kitakyushu city, in addition, they also have several field offices in Kumamoto and Kagoshima.

On the other hand,「Kumamoto Family Bank」was formed by the equal merger of 「former Kumamoto Bank(旧熊本銀行)」 and「former Higo Family Bank(旧肥後ファミリー銀行)」which were converted from mutual banks into ordinary banks. In 2013, they were transferred to the「Fukuoka Financial Group」, then changed their name to 「Kumamoto Bank」, in order to show that they are a representative bank of Kumamoto.

As for the entire group,「Fukuoka Financial Group」owns 428 branches, which is the largest number of regional bank. They maintain existing profits by developing community-based sales and utilizing their own branch network. At present, local banks in Japan are likely to stagnate in the future due to population decline. However, since Fukuoka's population continues to increase in recent years,「Fukuoka Financial Group」is relatively free from that issue.

 

 

3. Major Business

 

■ Bank business

 

 

 

4. Financial information

 

※Unit is JPY million

	2016	2017	2018
Consolidated sales	235,767	237,572	246,112
Consolidated operating profit	-34,441	71,636	74,093
Consolidated total assets	18,113,049	20,163,679	20,839,786
Consolidated net assets	712,058	778,973	777,308