Tokyo Kiraboshi Financial Group is planning to realign the functions of its group companies, according to president Hisanobu Watanabe, following the full repayment of ¥40 billion in public funds to the Tokyo Metropolitan Government in May, ahead of schedule.
Tokyo Kiraboshi Financial Group plans restructuring of subsidiaries after repaying public funds
Tokyo Kiraboshi Financial Group is planning to realign the functions of its group companies, according to president Hisanobu Watanabe, following the full repayment of ¥40 billion in public funds to the Tokyo Metropolitan Government in May, ahead of schedule.
The group, which is the parent of Kiraboshi Bank and digital bank UI Bank, aims to improve operational efficiency by consolidating consulting and systems divisions currently spread across its subsidiaries, Watanabe said.
The planned restructuring may be incorporated into Tokyo Kiraboshi's next medium-term business programme, which covers fiscal 2027 onwards, beginning next April.
Under that programme, the group is expected to concentrate deposit and housing loan operations into UI Bank while directing Kiraboshi Bank toward corporate client services, including business succession support and overseas expansion.
Watanabe cited UI Bank's lower operating costs as enabling it to offer competitive interest rates compared with Kiraboshi Bank.
The early repayment of public funds resulted in the redemption of preferred shares that had been allocated to the Tokyo Metropolitan Government, reducing the group's capital adequacy ratio. Watanabe said a growth strategy to raise that ratio is now required.
On broader consolidation trends among Japan's regional banks, Watanabe said the group is now at a stage where it should study collaboration with various companies, having completed its public fund repayment.
Japanese investment fund Ariake Capital, which targets regional banks, holds an equity stake of nearly 8% in Tokyo Kiraboshi. Watanabe described this as reflecting the fund's expectations for the group, while stating that improving corporate value is the group's mission to all stakeholders.
- No response or comment from Ariake Capital regarding its investment rationale or intentions is included in the source.
- No response from the Tokyo Metropolitan Government regarding the early repayment of public funds is included.
- No details are provided on the specific form or candidates for potential collaboration with other companies.
- The timeline or conditions for finalising the medium-term business programme are not specified beyond a start date of next April.
Read the original at The Japan Times