2 Banks in Chiba Pref. Finalize Integration Agreement

Chiba, March 25 (Jiji Press)–Chiba Bank and Chiba Kogyo Bank said Wednesday that they have reached a final agreement on their business integration. The two regional banks operating mainly in the eastern Japan prefecture of Chiba, adjacent to Tokyo, will establish Chiba Financial Group Inc. as their holding company on April 1, 2027. Both of them will continue operating under the holding firm. Chiba Financial will become Japan’s third-largest regional bank group in terms of consolidated gross assets. Chiba Bank President Tsutomu Yonemoto will become president of the holding company, and Chiba Kogyo Bank President Hitoshi Umeda will serve as vice president. While aiming to improve operational efficiency by sharing their systems, the two banks have decided not to consolidate or close branches as they seek to leverage their existing operational foundations. Through the integration, the two banks aim to increase their annual net business profits by 4 billion to 6 billion yen by the end of fiscal 2028 and by 12 billion to 16 billion yen by the end of fiscal 2031. At a press conference held in the city of Chiba, the capital of the prefecture, Yonemoto said, “We hope to contribute to the sustainable development of the region.” Umeda said that the two banks are not planning to seek an outright merger “under the current situation.” “We will work together to create maximum synergy,” he added. As of the end of December 2025, the two banks had consolidated total assets of 24,174.4 billion yen, the third largest among Japanese regional bank groups after Fukuoka Financial Group Inc., which operates in the Kyushu southwestern region, and Yokohama Financial Group Inc., which has Tokyo-based Higashi-Nippon Bank and Bank of Yokohama, based in Yokohama, the capital of Kanagawa Prefecture, south of the Japanese capital, under its wing. Among other regional banks, Daishi Hokuetsu Financial Group Inc., whose business area is the central prefecture of Niigata, and Gunma Bank in neighboring Gunma Prefecture have reached a basic agreement to integrate their operations in April 2027. END [Copyright The Jiji Press, Ltd.]