Chiba Bank, Chiba Kogyo Bank to Integrate under Holding Firm

Chiba, Sept. 29 (Jiji Press)–Chiba Bank and Chiba Kogyo Bank said Monday that the two regional lenders based in Chiba Prefecture have reached a basic agreement on their business integration as early as April 2027. They will advance discussions to establish a holding company, with both coming under its umbrella. The plan is to keep the two banks separate rather than merging them, to maintain convenience for existing customers. Their combined total assets as of the business year ended March 2025 amounted to nearly 25 trillion yen, which will make them the country’s second-largest regional banking group, after Fukuoka Financial Group Inc. Chiba Bank is the largest regional lender in the prefecture, while Chiba Kogyo Bank ranks third. “We’ll work to further revitalize this region” through the business integration, Chiba Bank President Tsutomu Yonemoto told a press conference held in the city of Chiba, the capital of the prefecture, on Monday. He added that there are no plans to proceed with personnel reductions or branch consolidations. Hitoshi Umeda, president of Chiba Kogyo Bank, said: “The integration is a major step toward the future. It will further accelerate growth.” Rising interest rates have started to make it easier for banks to profit from their core lending operations. At the same time, competition to attract deposits, which are the source of loans, is intensifying, prompting some banks with overlapping operating areas to enter into business integrations to bolster their management bases. Chiba Bank and Chiba Kogyo Bank are considering a stock listing for the new holding company while having themselves delisted. The holding company’s head office location will be determined under the final agreement to be reached in March 2026. Chiba Bank acquired an equity stake of around 19.9 pct in Chiba Kogyo Bank for about 23.7 billion yen in March from Ariake Capital, an investment fund in Tokyo. The banks have been discussing ways to strengthen their ties, including the possibility of business integration. END [Copyright The Jiji Press, Ltd.]