Management Strategy

The Bank formulated a Medium-term Management Plan (FY2026 through FY2028).

Under the previous Medium-term Management Plan (FY2021 through FY2025), the Bank implemented three business strategies—the “retail business,” “market business,” and “Σ (sigma) business  (a corporate business for creating futures for societies and local communities through investment)”—and worked to strengthen the management foundation supporting them, achieving excellent results including the highest earnings since listing for three consecutive fiscal years. The Bank also made significant progress on the privatization process with two secondary share offerings, and has now entered a new stage of working toward non-linear growth.

Meanwhile, the Bank’s business environment continues to change rapidly, including changes in population trends and societal structure, the advance of digital technology adoption in society, such as generative AI, and a transition into an era of positive interest rates. These changes are expected to accelerate going forward.

In this environment, to enable the sustainable increase of corporate value, the Bank has set out the following two Medium- to Long-term Vision statements as its vision for 15 years in the future. Targeting net income over \1 trillion and ROE of approx. 10% in the final fiscal year, FY2028.

【Medium-term Management Plan (FY2026 through FY2028)—Strategies and Targets】

The Bank will promote four new business strategies: “digital payment business strategy,” “consulting business strategy,” “market operations and asset management business strategy,” and “regional and corporate solutions business strategy.”The bank will aiso promote human capital management and corporate culture reforms, and improve the management base to support these strategies.

• Although the Bank’s PBR is rising compared with the previous Medium-term Management Plan, we recognize that further management improvements to increase corporate value are a major challenge.
• A multi-method analysis using CAPM, earnings yield, and others confirmed our cost of shareholders’ equity to be around 6–8%, and we will continue striving to reduce this cost by strengthening dialogue with capital markets after conducting multifaceted analyses.
• We have set an ROE target (based on shareholders’ equity) of approximately 10% for FY2028, and while ensuring financial soundness, we aim to achieve a sustainable increase in corporate value by maximizing the cycle of growing profit through growth investments and making returns to shareholders.

For details, please see the attachment below.

• Medium-term Management Plan（FY2026 through FY2028） (PDF/3,313KB) (P37, 38)(PDF file)