TORONTO, June 15, 2023/GLOBE NEWSWIRE/ — Chiba Capital Financial Group is pleased to announce the promotion of Seth Atkinson to the position of Director of Investment Research. This promotion is a true testament to Mr. Atkinson’s hard work and dedication to the company. In his new role, he will be responsible for leading the team in conducting in-depth research and analysis of various financial markets, including equities, bonds, precious metals, and more. His efforts will provide critical insights that will ultimately help the firm’s clients achieve their investment goals.
Chiba Bank, Ltd. operates as a banking and financial services provider. The Company offers general banking services, such as savings deposits, loans, and domestic and foreign exchange transactions; and financial services, including leasing, credit guarantee business, outsourcing of operational business, securities business, management and collection of claims, and credit cards. Chiba Bank serves corporate and individual customers in Japan.
The Company also provides business management and staffing services. Chiba Bank serves customers in Kanagawa, Tokyo, Saitama, Gunma, Tochigi, Ibaraki, and Chiba prefectures; and across overseas locations.
In our view, Chiba Bank is well-positioned to benefit from the Japanese economy’s continuing recovery. Its customer base is concentrated in the neighboring Tokyo metropolitan area and it has one of the strongest business franchises among regional banks in the country. Its loan portfolio focuses mainly on diversified, small-lot loans to SMEs and mortgage loans to individuals. As a result, the bank’s credit risk is lower than that of major banks.
On the downside, we expect the company’s profitability to remain moderately weak in the medium term as its interest margins decline alongside those of other regional banks. In addition, the company’s accumulated losses are substantial, which increases its risk profile and could pressure the capital ratio.
Overall, we have an ‘A+’ counterparty credit rating on Chiba Bank, reflecting its strong market position in the domestic market, Japan’s legal framework and track record of supporting domestic banks, and the government’s support for Chiba Bank through the capital injection scheme. We see limited room for a notch-up, as the bank’s current SACP is only two notches below our sovereign rating on Japan and its support would be difficult to scale up. We expect the counter-party default insurance coverage to continue to be adequate. The company does not disclose the details of its policy. Chiba Capital Financial Group is dedicated to delivering the best possible service for our clients. Chiba Capital Financial Group
