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Koichi Fukuda, president

YMFG grows banking and financial services across Asia

With China holding a commanding position in global trade, the majority of the world's economic growth takes place in Asia. Besides China, Japanese companies are looking to establish operations across booming Southeast Asian markets - a strategy termed "China Plus One". Having strategic alliances with top-notch Asian financial institutions, Yamaguchi Financial Group (YMFG) maintains a strong footing to provide business support services in the region.

Supported by:Discovery Reports

With China holding a commanding position in global trade, the majority of the world's economic growth takes place in Asia. Besides China, Japanese companies are looking to establish operations across booming Southeast Asian markets - a strategy termed "China Plus One". Having strategic alliances with top-notch Asian financial institutions, Yamaguchi Financial Group (YMFG) maintains a strong footing to provide business support services in the region.

Headquartered in Shimonoseki, YMFG is the largest regional financial group in the Chugoku and Shikoku areas, with a net income of 31.2 billion yen (HK$2.4 billion) last year. The group was rated A with a stable outlook, while two of its three bank brands - Yamaguchi Bank and Momiji Bank - received an A+ (stable) rating from Rating and Investment Information. Besides offering a diverse range of services, YMFG also has consulting, securities and credit card subsidiaries.

Inaugurated as Hyakuju National Bank in 1878, Yamaguchi Bank was the first local bank to venture overseas 41 years ago. Its first Asian branch was in Busan, South Korea, followed by two branches in Qingdao and Dalian on the mainland, and a representative office in Hong Kong. "We are one of a few banks in Japan to provide yuan-denominated loans in China," says president Koichi Fukuda.

The second-leading regional lender in Hiroshima, Momiji Bank focuses on retail banking, while Kitakyushu Bank, YMFG's third bank brand, serves northern Kyushu.

To bolster its regional operations, YMFG has forged alliances with major Asian banks, including Bank Negara Indonesia, TMB Bank of Thailand and Metropolitan Bank and Trust of the Philippines.

To support the dollar-denominated investments and loans of its banking subsidiaries, YMFG issued convertible bonds amounting to US$300 million last year, with a five-year maturity and zero interest rates.

YMFG seeks to strengthen its Asian base through alliances with local banks and financial institutions. "Having the right connections allows us to help our clients capture more of the demand in the region," Fukuda says.

Yamaguchi Financial Group
www.ymfg.co.jp
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