Shizuoka Financial, Bank of Nagoya Reach Merger Agreement

Tokyo, March 27 (Jiji Press)–Shizuoka Financial Group Inc., the parent of Shizuoka Bank, and Bank of Nagoya said Friday that they have reached a basic agreement to merge operations in April 2028. Shizuoka Financial will take full control of Bank of Nagoya through an equity swap, placing both banks under its umbrella. The merger will create Japan’s fourth largest regional banking group, with about 22,113.8 billion yen of combined assets based on figures from the end of last year. Shizuoka Bank is based in Shizuoka Prefecture, and Bank of Nagoya in Aichi Prefecture, a central Japan region that hosts many manufacturing companies. The two banks formed a comprehensive business alliance in April 2022. Competition for clients and deposits is increasing among regional banks in the country as lenders are benefiting from wider interest margins following interest rate hikes by the Bank of Japan. The merger of Shizuoka Financial and Bank of Nagoya is aimed at establishing a strong foundation for growth as they seek to streamline operations and make systems investments amid the rise of cashless payments. The merger “will enable effective coverage of Japan’s key economic zones…and the companies seek to further expand the sales and customer bases by establishing a sales structure covering a broader area,” the two companies said in a statement. END [Copyright The Jiji Press, Ltd.]