Hachijuni Bank (8359) AI Stock Analysis

• Market Cap: ¥897.23B
• Dividend Yield: 2.87%
• Average Volume (3M): 1.12M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 1.12
• Revenue Growth: 14.57%
• EPS Growth: 100.81%
• Country: JP
• Employees: 4,140
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 39.36
• Shares Outstanding: 493,767,430
• 10 Day Avg. Volume: 1,136,670
• 30 Day Avg. Volume: 1,121,530
• PEG Ratio: 0.32
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 5.23
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 115.75
• Revenue Forecast (FY): ¥320.70B

• Rating: 70 Outperform
• Price Target: ¥2,057.00 ▲(14.44% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

The score is primarily driven by solid financial performance (growth and operational stability) tempered by leverage and cash-flow volatility, alongside strong bullish technicals that are currently overbought. Valuation appears broadly fair with a modest dividend yield.

Positive Factors

Revenue Growth

Sustained top-line growth over multiple years signals expanding loan volumes and greater fee activity across its regional franchise. Persistently higher revenue enhances capacity to invest in services, absorb credit costs, and support long-term lending and wealth-distribution strategies.

Strong Equity Base

A solid equity foundation provides a durable capital buffer that enables continued lending, regulatory compliance and loss absorption. This supports strategic lending to SMEs and housing, allowing the bank to pursue growth while maintaining confidence among depositors and counterparties.

Stable Operating Margins

Consistent gross and operating margins reflect efficient core banking operations and pricing discipline in loans and fee businesses. Margin stability supports predictable earnings and cash generation, enabling steady reinvestment in services and resilience through moderate economic cycles.

Negative Factors

Rising Leverage

An upward trend in leverage raises structural financial risk: higher interest expense sensitivity, greater pressure on capital ratios if asset quality weakens, and reduced flexibility for opportunistic lending or M&A. Continued rising debt could constrain strategic options.

Volatile Operating Cash Flow

Material swings in operating cash flow limit reliable free cash generation and complicate capital allocation. This volatility can undermine consistent dividend funding, impede strategic investments, and reduce the bank's ability to self-fund reserves against cyclical credit losses.

Regional Concentration & NII Dependence

Heavy reliance on net interest income and a concentrated regional footprint tie earnings closely to local economic and interest-rate cycles. Limited geographic or business-line diversification increases downside in regional downturns and makes margins sensitive to funding cost shifts.

Hachijuni Bank Business Overview & Revenue Model

Company Description

The Hachijuni Bank, Ltd. provides various banking products and services to individual customers, corporations, and sole proprietors. It offers foreign currency, structured, time, property, public, payment, relay, savings, and fixed deposits; housing, car, education card, remodeling, card, medical, overdraft, business, founding support, and Hachini free loans; public and private placement bonds; and life, medical, education, and fire insurance products. The company also provides credit and debit cards; pension plans; and investment trust, inheritance, internet and mobile banking, pension consultation, foreign currency reserve, payment collection, expense settlement, and management and business support services, as well as information on civil trust. It also engages in financial products brokerage business. As of March 31, 2022, the company operated 142 branches, 9 branch offices, and 221 ATMs in Japan; 1 branch in Hong Kong; and 3 representative offices in Shanghai, Bangkok, and Singapore. The Hachijuni Bank, Ltd. was founded in 1877 and is headquartered in Nagano, Japan.

How the Company Makes Money

Hachijuni Bank primarily makes money through (1) net interest income and (2) fee and commission income, with additional contributions from securities and other financial activities. 1) Net interest income (core earnings driver) - Lending: The bank earns interest on loans provided to corporate customers (including SMEs) and retail customers (e.g., housing-related lending). Loan interest is typically the largest recurring revenue source for a regional bank. - Deposits and funding: The bank pays interest (and incurs funding costs) on customer deposits and other borrowings. The difference between interest earned on assets (loans, some securities) and interest paid on liabilities (deposits, funding) is net interest income. - Asset-liability management: Profitability is influenced by the mix of loan types, pricing, credit costs, and the interest-rate environment, which affects both loan yields and funding costs. 2) Fees and commissions (non-interest revenue) - Wealth management distribution: The bank earns sales commissions and ongoing fees from distributing investment trusts and insurance products to retail customers. - Payments and settlement: Fees from domestic transfers, account services, cash management, and other transaction-related services. - Corporate finance and advisory-related fees: Fees linked to services such as syndicated lending/arrangement support, business matching, and other financing-related services when applicable. 3) Securities and treasury-related income - Investment portfolio: Like many banks, Hachijuni Bank invests part of its balance sheet in securities (e.g., bonds). It can earn interest income and may realize gains or losses from trading or selling securities. - Foreign exchange and related services: The bank can earn spreads and fees from FX transactions and trade-related settlement services provided to customers. 4) Credit costs and risk management impact earnings - While not a revenue stream, loan loss provisions and credit-related costs materially affect profitability. Effective credit screening and monitoring help preserve earnings from the lending business. Significant factors influencing earnings include local economic conditions in its core operating region, the level and shape of interest rates (which drive margins), loan demand, competition among regional financial institutions, and customer demand for investment and insurance products. Specific named partnerships are null.

Hachijuni Bank Financial Statement Overview

Summary

Strong revenue growth and generally stable operating margins support a solid financial profile, but rising leverage and notably volatile operating cash flow reduce the score.

Income Statement

Hachijuni Bank has demonstrated solid revenue growth over the years, with a notable increase from JPY 139.69 billion in 2021 to JPY 246.18 billion in 2025. The gross profit margin remains consistently high, indicating efficiency in managing its core operations. However, the net profit margin shows some fluctuation, with a significant improvement in 2025. The EBIT and EBITDA margins have remained relatively stable, showcasing operational strength despite market challenges.

Balance Sheet

The bank maintains a strong equity base, as evidenced by a substantial stockholders' equity position, although the debt-to-equity ratio has been rising, indicating increasing leverage. This could suggest potential risks if debt levels continue to grow. The equity ratio has shown slight improvements, reflecting a balanced approach to leveraging assets.

Cash Flow

The cash flow analysis reveals a mixed picture, with the operating cash flow exhibiting significant fluctuations. The free cash flow has been positive in recent years, but the free cash flow growth rate has been inconsistent. The operating cash flow to net income ratio indicates efficient cash generation relative to profits, although the bank needs to stabilize its cash flow patterns to mitigate potential risks.

Breakdown	TTM	Mar 2026	Mar 2025	Mar 2024	Mar 2023	Mar 2022
Income Statement
Total Revenue	275.26B	242.53B	214.44B	187.40B	140.75B	147.56B
Gross Profit	224.34B	196.70B	176.30B	165.06B	134.65B	131.90B
EBITDA	87.77B	71.05B	56.79B	40.29B	43.62B	37.66B
Net Income	63.88B	47.98B	37.07B	24.14B	26.67B	22.38B
Balance Sheet
Total Assets	13.60T	13.52T	14.83T	12.96T	13.34T	12.16T
Cash, Cash Equivalents and Short-Term Investments	2.93T	3.03T	3.72T	3.60T	4.05T	2.75T
Total Debt	2.24T	2.18T	3.29T	3.05T	3.59T	2.32T
Total Liabilities	12.53T	12.55T	13.71T	12.05T	12.43T	11.25T
Stockholders Equity	1.06T	963.51B	1.11T	913.12B	909.20B	906.29B
Cash Flow
Free Cash Flow	0.00	95.73B	-36.03B	6.61B	12.55B	47.42B
Operating Cash Flow	0.00	105.25B	-27.48B	13.97B	20.78B	54.31B
Investing Cash Flow	0.00	129.06B	-327.81B	-13.10B	-352.81B	-194.33B
Financing Cash Flow	0.00	-915.67B	456.42B	-446.08B	1.63T	1.24T

Hachijuni Bank Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1797.50
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8359, the sentiment is Neutral. The current price of 1797.5 is below the 20-day moving average (MA) of 1970.38, below the 50-day MA of 1971.67, and above the 200-day MA of 1573.84, indicating a neutral trend. The MACD of -6.43 indicates Positive momentum. The RSI at 49.38 is Neutral, neither overbought nor oversold. The STOCH value of 83.10 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for JP:8359.

Hachijuni Bank Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
5844	75 Outperform	¥1.28T	19.77	―	2.04%	18.13%	27.43%
8359	70 Outperform	¥897.23B	10.74	6.30%	2.87%	14.57%	100.81%
8334	69 Neutral	¥808.77B	9.65	8.19%	3.14%	15.77%	27.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
5830	67 Neutral	¥887.40B	8.76	―	2.10%	1.39%	52.58%
8354	66 Neutral	¥1.17T	8.94	8.24%	3.06%	12.77%	9.22%
7167	64 Neutral	¥1.04T	11.66	―	2.00%	18.45%	41.89%

Hachijuni Bank Corporate Events

Hachijuni Nagano Bank Launches First Medium-term Plan to Become Comprehensive Consulting Firm

Hachijuni Nagano Bank has unveiled its first medium-term management plan, covering fiscal years 2026 to 2028 as the initial phase of its Long-term Vision 2035 to “build a prosperous future together with the region.” The plan centers on evolving into a comprehensive consulting firm, aligning its traditional banking operations with expanded advisory services for corporate growth, productivity enhancement, asset management, and digital engagement.

The strategy is structured around five themes, including enhancing regional profitability, investing in digital transformation and AI, expanding business domains, and reinforcing its management foundation to cement trust. The bank set ambitious financial, environmental, and social targets such as achieving a consolidated ROE of at least 8%, sharply reducing Scope 1 and 2 CO2 emissions, executing large-scale sustainable finance, and supporting continued social population growth in Nagano, backed by a goal of 300,000 consulting engagements over three years.

The most recent analyst rating on (JP:8359) stock is a Hold with a Yen2268.00 price target. To see the full list of analyst forecasts on Hachijuni Bank stock, see the JP:8359 Stock Forecast page.

Hachijuni Nagano Bank Reports Slightly Higher Capital Ratios at Year-End 2025

Hachijuni Nagano Bank has disclosed its capital ratios as of December 31, 2025, showing a modest strengthening of its regulatory capital position on both a consolidated and non-consolidated basis. The bank reported a consolidated total capital ratio of 17.12%, with Tier 1 and common equity Tier 1 ratios at the same level, and non-consolidated ratios of 16.49%, all up by 0.05 percentage point from the end of September.

In yen terms, consolidated total capital rose to ¥954.6 billion while risk-weighted assets increased to ¥5,575.2 billion, resulting in required capital of ¥446.0 billion, and similar growth was seen in the non-consolidated figures. The data indicate that the bank is maintaining a comfortable capital buffer under the international standards, which supports its resilience, risk-taking capacity and regulatory compliance, and provides reassurance to creditors and other stakeholders about its financial soundness.

The most recent analyst rating on (JP:8359) stock is a Hold with a Yen2268.00 price target. To see the full list of analyst forecasts on Hachijuni Bank stock, see the JP:8359 Stock Forecast page.

Hachijuni Nagano Bank Posts Strong Nine-Month Profit Gain and Raises Dividend Outlook

Hachijuni Nagano Bank reported strong consolidated results for the nine months ended December 31, 2025, with ordinary income rising 18.7% year on year to ¥208.9 billion and profit attributable to owners of parent surging 49.9% to ¥47.7 billion, helped by a sharp improvement in comprehensive income, which swung from a large loss in the previous year to a substantial gain. The bank’s financial position also strengthened, as total assets edged up to ¥13.6 trillion, net assets increased to ¥1.06 trillion, and its internally defined capital adequacy ratio improved to 7.7%, while management maintained full-year earnings guidance and a higher dividend trajectory, including a commemorative component, signaling confidence in earnings sustainability and offering a clearer return profile for shareholders.

The most recent analyst rating on (JP:8359) stock is a Hold with a Yen2243.00 price target. To see the full list of analyst forecasts on Hachijuni Bank stock, see the JP:8359 Stock Forecast page.

Hachijuni Nagano Bank Launches Shareholder Perks Tied to Nagano Specialties

Hachijuni Nagano Bank has approved the introduction of a new shareholder benefits program designed both to reward existing investors and attract more long-term individual shareholders. Starting with a first record date of March 31, 2026, shareholders who hold at least 500 shares and meet the continuity conditions will receive tiered rewards: a QUO prepaid card for smaller holdings and catalog gifts featuring Nagano specialty products or donation options for larger stakes. By tying the incentives to local products and social contribution choices, the bank aims to strengthen shareholder loyalty while simultaneously promoting Nagano Prefecture’s appeal and contributing to regional economic revitalization, reinforcing its role as a key local financial player.

The most recent analyst rating on (JP:8359) stock is a Buy with a Yen1792.00 price target. To see the full list of analyst forecasts on Hachijuni Bank stock, see the JP:8359 Stock Forecast page.

Hachijuni Bank Completes Merger With Nagano Bank to Form Hachijuni Nagano Bank

Hachijuni Bank and its wholly owned subsidiary The Nagano Bank have completed their merger, effective January 1, 2026, and commenced operations under the new name Hachijuni Nagano Bank, Ltd. The combined institution plans to leverage the strengths and experience of both banks to deliver more advanced financial services, tackle regional challenges, and pursue sustainable growth in partnership with the communities it serves.

The most recent analyst rating on (JP:8359) stock is a Buy with a Yen1816.00 price target. To see the full list of analyst forecasts on Hachijuni Bank stock, see the JP:8359 Stock Forecast page.

Hachijuni Bank Nears ¥10 Billion Cap as It Completes Treasury Share Buyback

The Hachijuni Bank has completed a share buyback program authorized by its board on May 9, 2025, acquiring 777,700 common shares between December 1 and December 25, 2025 via market purchases, at a total cost of approximately ¥1.31 billion. Cumulatively under this resolution, the bank repurchased 7,235,000 shares for about ¥9.999 billion, nearing the approved upper limit of ¥10 billion and representing 2.16% of outstanding shares (excluding treasury stock), a move that is likely to support shareholder returns and capital efficiency by reducing the bank’s free float and potentially enhancing earnings per share.

The most recent analyst rating on (JP:8359) stock is a Buy with a Yen1816.00 price target. To see the full list of analyst forecasts on Hachijuni Bank stock, see the JP:8359 Stock Forecast page.

Hachijuni Bank Secures Approval to Merge with Nagano Bank and Launch Hachijuni Nagano Bank

The Hachijuni Bank has obtained regulatory approval under the Banking Act to merge with its wholly owned subsidiary, The Nagano Bank, on January 1, 2026, after which the integrated entity will begin operations as Hachijuni Nagano Bank, Ltd. The merged bank will be headquartered at Hachijuni Bank’s current Nagano City address, led by President Masaki Matsushita, and will have capital of ¥52.2 billion, combined deposits of ¥9,522.0 billion, loans of ¥6,577.6 billion, a workforce of 3,957 employees and 117 domestic branches, marking a significant consolidation of regional banking operations that is expected to reinforce its scale and competitiveness in the local financial market.

The most recent analyst rating on (JP:8359) stock is a Buy with a Yen1816.00 price target. To see the full list of analyst forecasts on Hachijuni Bank stock, see the JP:8359 Stock Forecast page.