Last year = 2020 financial results of regional banks nationwide, 46% of the total was "decrease in profit" or "deficit" in the final profit and loss.
Due to the prolonged impact of the new coronavirus, the cost of preparing for bad debts increased, which put pressure on profits.
As of March, there were 78 regional banks listed on the stock exchange, and Nomura Securities analyzed the financial results of each bank last year.
According to this, the final profit / loss was "deficit" for 3 regional banks and "decrease in profit" for 33 regional banks, accounting for 46% of the total.
Due to the prolonged impact of the new coronavirus, the cost of preparing for bad debts increased by 20% compared to the previous year, which put pressure on profits.
On the other hand, 39 regional banks increased their profits and 3 regional banks turned from a deficit to a surplus in the previous year, but the total final profit decreased by 10% from the previous year.
As the business environment of regional financial institutions becomes more severe, the government and the Bank of Japan have launched a series of systems to support the strengthening of the management base, including mergers and business integrations.
This month, Aomori Bank and Michinoku Bank in Aomori Prefecture have reached a basic agreement to proceed with discussions aiming for a merger in three years, and Fukui Bank in Fukui Prefecture has officially decided to make Fukuho Bank a subsidiary. The future focus will be on whether or not this reorganization movement will spread.