SBI Holdings May 02: Chikuho Bank Partnership Ends Amid Criticism

SBI Holdings faced a significant partnership setback on May 1 when Chairman Yoshitaka Kitao publicly criticized Chikuho Bank during the company’s earnings announcement. The capital and business partnership, which began in 2020 as part of SBI’s ambitious “fourth megabank” strategy, officially ended in December 2025. Kitao stated that Chikuho Bank provided nothing of value to the partnership, citing poor communication and lack of mutual benefit. Despite this partnership dissolution, SBI Holdings reported record financial results, with revenue reaching 1.8966 trillion yen (up 31.4%) and net profit reaching 427.5 billion yen (up 2.6 times). The partnership failure represents the first major departure from SBI’s regional bank consolidation strategy.

SBI Holdings Partnership Dissolution and Criticism

SBI Holdings ended its capital and business partnership with Chikuho Bank after five years of collaboration. During the May 1 earnings conference, Chairman Kitao expressed frustration with the partnership’s lack of mutual benefit. He emphasized that successful partnerships require “give and take,” but Chikuho Bank failed to deliver on its commitments.

Partnership Breakdown

The partnership, established in 2020, aimed to strengthen SBI’s regional banking presence. However, disagreements over capital ratio increases and operational alignment led to the December 2025 dissolution. Kitao noted that communication failures prevented the companies from addressing problems or celebrating successes together. He stated that holding shares in a company without proper collaboration was untenable for SBI’s strategic goals.

Fourth Megabank Strategy Impact

This partnership dissolution marks the first significant setback in SBI’s “fourth megabank” strategy, which targets consolidation among regional banks. The strategy aims to create a fourth major banking force alongside Japan’s three traditional megabanks. SBI’s megabank ambitions face challenges as regional banks prove difficult partners. The failed partnership suggests that SBI may need to recalibrate its approach to regional bank consolidation.

Chikuho Bank’s Strategic Pivot After SBI Split

Following the partnership dissolution, Chikuho Bank moved quickly to establish new business relationships and maintain growth momentum. The bank launched a new corporate pension product on May 1, replacing the “Anyone DC Plan” that was previously offered through SBI. This strategic pivot demonstrates Chikuho Bank’s determination to operate independently.

New Pension Product Launch

Chikuho Bank partnered with Norinchukin Bank’s subsidiary and Okasan Securities Group to offer a new defined contribution pension plan. The product targets small and medium-sized enterprises, allowing individual employees to enroll. Chikuho Bank launches new pension offerings to replace SBI products. The bank aims to secure 1,000 corporate contracts, starting with an initial target of 500 contracts.

Competitive Positioning

Chikuho Bank’s new pension strategy positions it as an independent player in Japan’s corporate benefits market. The bank’s chairman emphasized that pension systems are critical for attracting talent, especially for companies receiving transfers from larger firms. This move signals Chikuho Bank’s commitment to building sustainable revenue streams outside the SBI partnership framework.

SBI Holdings Record Earnings Despite Partnership Setback

SBI Holdings delivered exceptional financial performance in the fiscal year ending March 2026, achieving record-breaking results across key metrics. The company’s diversified business model and strong market positioning offset the Chikuho Bank partnership disappointment. Revenue and profitability both reached all-time highs, reflecting robust demand across SBI’s financial services portfolio.

Financial Performance Highlights

SBI Holdings reported revenue of 1.8966 trillion yen, representing a 31.4% increase from the previous fiscal year. Net profit surged to 427.5 billion yen, a 2.6-fold increase year-over-year. These results demonstrate SBI’s ability to generate strong returns despite regional banking challenges. The company’s diversified operations across securities, banking, and insurance contributed to the exceptional performance.

Strategic Implications

The record earnings suggest that SBI’s core business remains resilient and profitable. The partnership dissolution with Chikuho Bank appears to be a strategic correction rather than a fundamental business problem. SBI may now focus on more compatible regional banking partners or pursue alternative strategies to achieve its megabank objectives. The company’s financial strength provides flexibility to pursue new consolidation opportunities or adjust its regional banking strategy.

Final Thoughts

SBI Holdings’ partnership dissolution with Chikuho Bank represents a strategic recalibration in Japan’s regional banking consolidation landscape. While the failed partnership marks the first major setback in SBI’s “fourth megabank” strategy, the company’s record-breaking financial results demonstrate underlying business strength. Chairman Kitao’s public criticism highlights the importance of mutual benefit and effective communication in banking partnerships. Chikuho Bank’s swift pivot to new pension products shows regional banks can operate independently and pursue growth opportunities outside major partnerships. For investors, SBI’s strong earnings and strategic flexibility suggest the c…

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