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)

Item	Amount
Ordinary income	1,672 億円 (167,258 百万円)
Ordinary profit	509 億円 (50,915 百万円)
Net income attributable to owners of the parent	365 億円 (36,552 百万円)
Total assets	12 兆 1,611 億円 (12,161,140 百万円)
Net assets	1 兆 832 億円 (1,083,193 百万円)
Employees (consolidated)	3,580 名
Policy-holding shares (market value)	Several hundred billion yen of unrealized gains (Nintendo, Kyocera, Murata Manufacturing, Nihon Densan/Nidec, etc.) ★
Main operating area	Kyoto Prefecture (center) + parts of Osaka, Shiga, Hyogo, Nara, and Aichi prefectures

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)

Year/Month	Event
1941-10-01	Bank of Kyoto established (Kyoto-Prefecture regional-bank consolidation under wartime control)
1969	Listed on the OSE · TSE Second Section
1971	Listed on the TSE First Section (former code 8369)
1980s–90s	Deepening of transactions with Kyoto-headquartered Nintendo, Kyocera, Murata, Nihon Densan, etc. → accumulation of policy-holding shares
2008 Lehman shock	Large fluctuation in valuation gains on policy-holding shares
2016~	Lending-rate-margin pressure under BOJ negative rates + earnings support from unrealized share gains
2022-04	TSE market-segment review → TSE PRIME 8369 (Bank of Kyoto)
2023-10-02	Kyoto FG formed (holding-company-ization via a standalone share transfer of the Bank of Kyoto, newly listed on TSE PRIME 5844, with the former 8369 delisted) ★
2024-11-14	Announced new strategic targets accompanying the early achievement of the “1th Medium-Term Management Plan” (FY2023-03 to FY2026-03) (for the next 2th plan FY2026-04~FY2029-03 ) → net income attributable to owners of the parent 600 億円 (FY2029-03 target), ROE 5% (FY2029-03) · 8% or more (early 2030 年s), growth investment 1,000 億円 or more (FY2031-03 cumulative)
FY2024-03 ~	BOJ negative-rate lifting · policy-rate normalization → domestic lending-rate-margin improvement (large regional-bank benefit)
2025	Expectation of expanded Kansai-economic-zone transactions on the follow-tail of the Osaka-Kansai Expo

2. Business-segment map

Segment	Main operator	Characteristics
Individual retail	Bank of Kyoto	Mortgages · retail deposits · over-the-counter investment-trust sales for Kyoto residents + the Keihanshin middle class
Mid-tier / SME companies	Bank of Kyoto	Main bank for Kyoto’s traditional industries (Nishijin · Yuzen · Kyoto confectionery, etc.) + advanced manufacturing + tourism-related
Large-company transactions	Bank of Kyoto	Long-term transactions · cross-shareholding with Kyoto-headquartered world companies such as Nintendo, Kyocera, Murata Manufacturing, Nihon Densan (Nidec) ★
Policy-holding shares	Bank of Kyoto	Several hundred billion yen of unrealized gains (shares of listed large companies such as Nintendo, Kyocera, Murata, Nidec) ★
Securities	Kyogin Securities	Bank-securities linkage · investment-trust sales · equity brokerage
Leasing / business succession	Kyogin Lease & Capital / Kyoto Capital Partners	Business-succession · PE functions for regional companies
Cards	Kyogin Card Service	Credit cards (JCB, etc. partnerships)

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

Competitor	Base	Configuration
resona-hd (Kansai Mirai Bank)	All of Kansai	Alliance of former Daiwa Bank + former Kinki Osaka Bank + former Minato Bank → direct competition in Kansai retail
ikeda-senshu-hd (Ikeda Senshu Bank)	Hokusetsu / Senshu, Osaka	Partial competition with Bank of Kyoto’s wide-area Kansai expansion in Osaka Prefecture
Shiga Bank	Shiga Prefecture / Kansai	Competition at the Kyoto-Shiga prefectural border / Keihan area; close in Kansai regional-bank rankings
Nanto Bank	Nara Prefecture	Competition in southern Kyoto Prefecture / the Nara prefectural border
Kiyo Bank	Wakayama Prefecture	Peer Kansai regional bank, indirect competition in the wider Kansai area
mufg / smfg / mizuho-fg	Nationwide	Competition in the large-company main-bank area; the Bank of Kyoto has distinctive relationships with some world companies through cross-shareholding (even for Nintendo, Kyocera, etc., where mufg / smfg are the main bank, the Bank of Kyoto holds a distinctive position as a stable shareholder) ★
paypay-fg / Rakuten Bank / Sumishin SBI Net Bank	Digital	Emerging competition in the individual-digital area
Kyoto Shinkin Bank · Kyoto Chuo Shinkin Bank	Within Kyoto Prefecture	Competition on small-lot / local deals as regional financial institutions within Kyoto Prefecture

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

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)

[!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. 2500~~3000 億 / total assets approx. 11~~12 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.