Ehime Prefecture is best known for its hot springs, citrus fruits and cycling. It is also home to some smart bond traders.
Iyogin Holdings, a regional bank based in the prefectural capital Matsuyama, has posted record net income for two years in a row, thanks to returns on its investments in government bonds and other foreign bonds.
That makes the bank the only one of the country’s 73 regional lenders to post gains from bonds during the period, according to SMBC Nikko Securities. It also contrasts with the country’s main agricultural bank, Norinchukin, which expects a loss of at least ¥500 billion ($3.2 billion) this fiscal year due to losses on foreign banknotes.
