Fukuoka Financial Group (8354) Investor Presentation summary

Management strategy and medium-term plan progress

• Achieving all targets in the 7th Medium-Term Management Plan, including ROE, net income, and SME loan balances.

• Key initiatives include digital transformation, sales and business reforms, and strategic subsidiary strengthening.

• Focus on differentiating through service quality, digital channels, and new branch formats.

• Minna Bank's growth and alliances are prioritized for future profitability.

• Long-term strategy emphasizes local industry promotion, digital adaptation, and risk-taking in growth areas.

FY2024 interim results and full-year projections

• Interim consolidated core business profit rose ¥7.5B YoY, driven by higher net interest and non-interest income.

• Interim net income increased ¥8.9B YoY, aided by lower credit costs and core profit growth.

• FY2024 core business profit projected at ¥109.6B (+¥9.1B YoY); net income revised up to ¥72.0B (+¥10.8B YoY).

• Loan and investment trust growth, improved international net interest, and turnaround in securities gains support profit.

• Extraordinary income expected to decrease due to absence of prior year’s special gains.

Capital policy and shareholder returns

• Capital management balances growth investment and shareholder returns while maintaining soundness.

• FY2024 dividend forecast raised to ¥135 per share (35.5% payout), up ¥20 YoY.

• Flexible share buybacks considered based on performance, capital, and market conditions.

• Target capital adequacy ratio remains around 10%.