Concordia Financials Earnings Decrease Regional Bank Strict Business Environment November 11, 18:04
Concordia Financial Group, a subsidiary of the Bank of Yokohama and the East Japan Bank, had a final profit that was lower than that of the previous year in the interim financial results from April to September. In particular, the East Bank of Japan has been in the red, and the low bank interest rate has prolonged the management environment of the regional banks.
Concordia Financial Group's interim financial results decreased by 3.8% compared to the same period of the previous year, with a net profit of 30,093 million yen. In particular, the net loss of East Japan Bank, a subsidiary, was a loss of over ¥ 1.7 billion. It is the first time in 11 years that Higashi-Nippon Bank's interim results have been in the red.
This is due to a decrease in the profits of loans to companies and individuals in the main business, and an increase in reserves for loan losses, which highlights the situation where low interest rates are prolonged and it is difficult to make profits in the main business. It was.
On the other hand, the affiliated Bank of Yokohama decided on a business alliance with Chiba Bank in July, but by cooperating in the development of financing for corporations in Tokyo and investment products for individuals, it will be 200 in the next five years. It was made clear that the partnership effect of ¥ 100 million is expected.
Mr. Kenichi Kawamura, President of Concordia Financial Group, met, “Regional banks must overcome the harsh management environment due to low interest rates and population decline. We are also active in new fields such as partnerships with IT companies. I have to get involved. "