YOKOHAMA - Concordia Financial Group, which will change its name to Yokohama Financial Group in October, is seeking to reinforce its identity as a strong regional bank group centered on Yokohama Bank. President Tatsuya Kataoka, who also serves as head of Yokohama Bank, discussed the strategy behind the rebranding, the group's structural reforms, and its ambitions for stronger financial performance during a joint interview with Nikkei Financial.
Concordia Financial Group was established in 2016 through the merger of Yokohama Bank and Higashi-Nippon Bank. It later expanded to include Bank of Kanagawa. Yokohama Bank, founded in 1920, now holds over 18 trillion yen in deposits, with the entire group managing more than 20 trillion yen in deposits and 16 trillion yen in loans, making it one of the top players in Japan’s regional banking sector.
The decision to rebrand comes as the group marks its ninth year. According to Kataoka, the name "Concordia" was initially chosen to emphasize harmony and integration within the new organization. However, he admitted that the name had not adequately conveyed the group's core identity as a Yokohama-based regional financial institution. The shift to "Yokohama Financial Group" is intended to leverage the strong name recognition of Yokohama to solidify the group's brand and enhance its regional contribution.
Two years ago, Kataoka surprised the market by pledging to achieve a price-to-book ratio (PBR) of 1.0, a goal that remains rare among regional banks. "Given our high proportion of foreign institutional investors, we have held ongoing discussions about how to improve corporate value and raise return on equity (ROE)," he explained. The group has since published a roadmap toward boosting its PBR and shared it with both internal stakeholders and shareholders.
For the fiscal year ending March 2024, the group’s PBR stood at 0.7, but improved to 0.86 in forecasts for the year ending March 2025. Still short of the 1.0 target, Kataoka said the group will continue efforts to raise ROE above the cost of equity capital while stabilizing earnings, thereby lowering shareholder costs.
Among regional banks with the highest market capitalization, Concordia currently ranks top in PBR and second in ROE. A major driver of these gains has been its focus on structured finance, particularly in the Kanagawa and Tokyo areas where many companies face succession challenges or seek capital restructuring and compliance with updated stock exchange standards.
"To support these clients, we’ve been strengthening our internal capabilities and expertise to offer tailored structured finance solutions," said Kataoka. By investing in talent development and accumulating specialized know-how, the group aims to generate higher returns with lower risk while responding to the evolving needs of its corporate customers.
Source: テレ東BIZ
