Senior Bank Analyst - Japanese Banks, Windamee Research

J. Brian Waterhouse

Senior Bank Analyst - Japanese Banks

Windamee Research

Japanese Banks

Equity Bottom-Up

Not only the largest regional bank based in Ehime Prefecture but also the largest regional bank on Shikoku, one of the four main islands that make up the Japanese archipelago, <a href="https://www.smartkarma.com/entities/iyo-bank-ltd" target="_blank" data-smartkarma-citation="entities:6869:1" rel="noopener">Iyo Bank (8385 JP)</a> is additionally the best-performing Japanese bank stock in CY2020.  The shares are up +39% on a 6-months basis and up over +37% YoY.  This is in sharp contrast to the performance of the major banks whose share prices have generally fallen by double-digits over the last six months.  What has been driving Iyo Bank’s share price has been a turnaround in profitability amid solid loan growth, thanks to a remarkably broad geographic spread of branches and range of clients that have allowed the bank to spread its risk and (so far) avoid the worst of the pandemic-induced economic downturn.It’s enough to bring a smile to the ghosts of the bank’s founding fathers, some of whom reputedly traded in their careers as quasi-pirates (海賊 kaizoku in Japanese) in the turbulent waters off Ehime to become respectable citizens and bank owners at the very beginning of Japan’s modern-day banking system back in 1878.

Not only the largest regional bank based in Ehime Prefecture but also the largest regional bank on Shikoku, one of the four main islands that make up the Japanese archipelago, Iyo Bank (8385 JP) is additionally the best-performing Japanese bank stock in CY2020.  The shares are up +39% on a 6-months basis and up over +37% YoY.  This is in sharp contrast to the performance of the major banks whose share prices have generally fallen by double-digits over the last six months.  What has been driving Iyo Bank’s share price has been a turnaround in profitability amid solid loan growth, thanks to a remarkably broad geographic spread of branches and range of clients that have allowed the bank to spread its risk and (so far) avoid the worst of the pandemic-induced economic downturn.It’s enough to bring a smile to the ghosts of the bank’s founding fathers, some of whom reputedly traded in their careers as quasi-pirates (海賊 kaizoku in Japanese) in the turbulent waters off Ehime to become respectable citizens and bank owners at the very beginning of Japan’s modern-day banking system back in 1878.

Iyo Bank  (8385 JP):  The Return of the Pirate's Smile

Japan

The Ehime Bank, Ltd. is a regional bank primarily operating in Ehime Prefecture. The Bank also provides computer systems management, staffing, and financial services including leasing and credit card services.

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Ehime Bank (8541 JP)

Iyo Bank (8385 JP): The Return of the Pirate's Smile

Not only the largest regional bank based in Ehime Prefecture but also the largest regional bank on Shikoku, one of the four main islands that make...

J. Brian Waterhouse

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52-week Range

Market Cap (USDm)

P/E

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