Kyoto Financial Group

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This entry sits under regional-banks INDEX. Read it against Ikeda Senshu Holdings for peer / contrast context and banking index for the broader system / regulatory boundary.

TL;DR

A prestigious Kansai regional-bank FG based in Kyoto Prefecture. Securities code TSE PRIME 5844. Formed at 2023-10-02 through holding-company-ization by a standalone share transfer of the Bank of Kyoto (an example of relatively late holding-company-ization among regional banks). The Bank of Kyoto maintains the No.1 share within Kyoto Prefecture and is famous for its transactions with — and policy-holding shares in — world-class blue-chip companies headquartered in Kyoto Prefecture, such as Nintendo, Kyocera, Murata Manufacturing, and Nidec (formerly Nihon Densan). In Kansai it competes directly with resona-hd (Kansai Mirai Bank), ikeda-senshu-hd, Shiga Bank, Nanto Bank, Kiyo Bank, and others. Against the megabanks 3 行 (mufg / smfg / mizuho-fg), it has a distinctive presence based on its Kyoto base and the financial strength of cross-shareholdings in listed companies. ^•

1. Company overview

Legal name: Kyoto Financial Group, Inc. ^• English name: Kyoto Financial Group, Inc. Securities code: TSE PRIME 5844 (newly listed 2023-10-02, in exchange for the delisting of the former Bank of Kyoto 8369 ) ^• Established: 2023-10-02 (holding-company-ization via a standalone share transfer of the Bank of Kyoto) ^• Headquarters: 700 Yakushi-mae-cho, Karasuma-dori Matsubara-agaru, Shimogyo-ku, Kyoto City (co-located with the Bank of Kyoto head office) ^•

2025-03 results (consolidated, securities-report basis) ^•

Note: The above are the consolidated confirmed figures for the 2025-03 results (via the Wikipedia infobox, sourced from the securities report). For further details such as deposit balances, see Kyoto FG IR Quarterly / the securities report.

Major subsidiaries / organization

Kyoto FG (holding company, TSE PRIME 5844)
  ├── The Bank of Kyoto, Ltd. (100%) ── No.1 share in Kyoto Prefecture · major regional bank
  │     ├── Approx. 170 店 operating branches (centered on Kyoto Prefecture; Osaka, Shiga, Hyogo, Nara, Aichi)
  │     ├── Lending to mid-tier / SME companies (Kyoto's traditional industries · advanced manufacturing · tourism-related)
  │     ├── Transactions with listed large companies · **policy-holding-share unrealized gains** (Nintendo, Kyocera, Murata, Nidec, etc.) ★
  │     ├── Mortgages · retail deposits (Kyoto residents · Keihanshin middle class)
  │     └── Corporate IB / syndicated-loan participation
  ├── Kyogin Securities (100%) ── core of investment-trust / equity / bank-securities linkage
  ├── Kyogin Lease & Capital ── leasing · venture investment / business succession
  ├── Kyogin Card Service (former Kyogin Card) ── credit cards
  ├── Kyoto Capital Partners ── PE / business succession / regional-company revitalization

Merger background / predecessors

• Former Bank of Kyoto (Kyoto Prefecture base)
  • 1941-10-01 Bank of Kyoto established (regional-bank consolidation under wartime control. Derived from the consolidation of Kyoto Chuo Credit Union + Nishijin Bank + Keihoku Bank + Bank of Kyoto (old), etc.) ^•
  • Postwar, it expanded its operating base from central Kyoto City to all of Kyoto Prefecture and the wider Kansai area
  • 1969 Listed on the Osaka Securities Exchange · Tokyo Stock Exchange Second Section
  • 1971 Listed on the TSE First Section (former securities code 8369) ^•
  • Built long-term transactions and cross-shareholding relationships with world-class companies headquartered in Kyoto (Nintendo, Kyocera, Murata Manufacturing, Nihon Densan/Nidec, etc.) → the enormous policy-holding-share unrealized gains became the bank’s signature
• Kyoto FG formed: 2023-10-02 (standalone share transfer of the Bank of Kyoto, HD-ification. One 1 of the examples of relatively late holding-company-ization among regional banks) ^•

Key timeline (excerpt) ^•

2. Business-segment map

Strategic axes

• No.1 regional bank in Kyoto Prefecture: overwhelming No.1 in deposit / loan share within Kyoto Prefecture. Leveraging local rootedness + the Kyoto brand ^•
• Policy-holding-share unrealized-gain strategy ★: The several hundred billion yen of unrealized gains accumulated through long-term cross-shareholding with Kyoto-headquartered world companies such as Nintendo, Kyocera, Murata Manufacturing, and Nihon Densan (Nidec) is the bank’s greatest financial feature. It is the source of capital adequacy and creditworthiness ^•
• Wide-area Kansai expansion: based in Kyoto Prefecture while seeping into parts of Osaka, Shiga, Hyogo, Nara, and Aichi, holding a mid-tier-regional-bank position in the wider Kansai area ^•
• “Kyogin Direct Finance” DX: digital investment, corporate internet banking, fintech alliances ^•
• Kyoto-brand leverage: using ties with tourism · traditional industries · Kyoto-headquartered companies as a differentiation asset ^•
• Medium-term management plan: achieved the 1th plan (FY2023-03 to FY2026-03, net income 300 億円 target) ahead of schedule and announced new strategic targets at 2024-11-14. In the next 2th plan (FY2026-04~FY2029-03), it set far more challenging targets than before, such as net income attributable to owners of the parent 600 億円 (FY2029-03) · ROE 8% or more (early 2030 年s)

Competitive landscape

Relationships with Kyoto-headquartered world companies ★

• Nintendo (Minami-ku, Kyoto City): the Bank of Kyoto holds long-term as a stable shareholder, with enormous unrealized gains in share-price-rise phases ^•
• Kyocera (Fushimi-ku, Kyoto City): same as above, long-term cross-shareholding ^•
• Murata Manufacturing (Nagaokakyo City, Kyoto Prefecture): same as above, long-term cross-shareholding ^•
• Nihon Densan / Nidec (Minami-ku, Kyoto City): same as above, long-term cross-shareholding ^•
• These policy-holding-share unrealized gains underpin the Bank of Kyoto’s capital adequacy and creditworthiness, a balance-sheet structure distinctive even among regional banks ★ ^•

Integration synergies / challenges

• Earnings diversification: two pillars of deposit-loan interest income + share dividends / gains on sale; the large year-to-year volatility of gains on share sales is a challenge ^•
• Pressure to reduce policy-holding shares: responding to the FSA / TSE request to reduce policy-holding shares is a challenge. Explaining the rationale for “cross-holding” and adjusting the reduction pace ^•

B2C branding

• Bank of Kyoto = “Kyogin”: overwhelming recognition among Kyoto residents, with some recognition across the wider Keihanshin area ^•
• The brand asset of “the bank of Kyoto”: ties with tourism · traditional industries · world companies differentiate the regional-bank brand ^•

4. Regulation / policy

• Supervisor: FSA
• Holding-company regulation: Banking Act Article 52 -17 (bank holding company) ^•
• Recent policy points:
  • 2024~ BOJ policy-rate normalization: domestic lending-rate-margin improvement bonus (large regional-bank benefit; expectation of regional-bank earnings improvement from rate hikes)
  • Request to reduce policy-holding shares: compliance with the FSA / TSE Stewardship Code / Corporate Governance Code; the reduction pace of policy-holding shares is of market interest ★ ^•
  • Regional-bank consolidation: Kyoto FG is a holding company formed by the 2023-10-02 standalone share transfer of the Bank of Kyoto and has not undergone management integration with other banks (operated as a standalone group)
  • 2025~ operating-branch reduction: a standard regional-bank restructuring path, slimming the branch network and consolidating functions
  • Business-feasibility-assessment lending to SMEs: promoting lending not dependent on collateral / guarantees
  • Osaka-Kansai Expo (2025-04~10): expectation of Kansai-economic-zone revitalization → follow-tail effect on Kyoto’s tourism · services · construction industries

Related

• mufg · smfg · mizuho-fg · resona-hd · sumitomo-mitsui-trust
• ikeda-senshu-hd · concordia-fg · fukuoka-fg · shizuoka-fg · hirogin-hd
• paypay-fg · rakuten-fg · sbi-hd

Sources

• Wikipedia: Kyoto Financial Group (https://ja.wikipedia.org/wiki/京都フィナンシャルグループ, 2026-05-19 extraction)
• Wikipedia: Bank of Kyoto (https://ja.wikipedia.org/wiki/京都銀行, 2026-05-19 extraction)
• Kyoto FG securities report (FY2025-03 ) ── consolidated ordinary income 1,672 億円 · ordinary profit 509 億円 · net income 365 億円 · total assets 12 兆 1,611 億円 · employees 3,580 名
• Nihon Keizai Shimbun (timely disclosure) on new strategic targets accompanying the early achievement of the “1th Medium-Term Management Plan” (https://www.nikkei.com/nkd/disclosure/tdnr/20241113522267/, 2024-11-14) ── 2th plan net income 600 億円 · ROE target
• Kyoto FG official IR (medium-term management plan · corporate-governance report)

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[!info] Verification status confidence: likely (based on v1.1 the Wikipedia infobox (securities-report-sourced) + official IR + timely disclosure, 2026-05-19). The FY2025-03 results (consolidated ordinary income 1,672 億 · ordinary profit 509 億 · net income 365 億 · total assets 12.16 兆 · employees 3,580 名) were replaced with confirmed figures (correcting the old approximate ranges of “ordinary income approx. 25003000 億 / total assets approx. 1112 兆 / net income approx. 400~600 億”). The medium-term management plan is detailed by the early achievement of the 1th plan (~FY2026-03, net income 300 億 target) and the new strategic targets announced at 2024-11-14 (the 2th plan net income 600 億 · ROE 8%, etc.). The 1941 establishment of the Bank of Kyoto / 1971 TSE First Section listing / 2023-10-02 Kyoto FG formation are confirmed by public information. No non-public information is cited.