Fukuoka Financial Group (8354) Q1 2025 earnings summary

Executive summary

• Core business profit rose to ¥27.8 billion, up ¥2.1 billion year-over-year, driven by higher domestic net interest income and non-interest income.

• Consolidated net income increased by ¥4.3 billion to ¥20.9 billion compared to the same quarter last year.

• Ordinary income rose 15.8% year-over-year to ¥109.1 billion for 1Q FY2024, with ordinary profit up 28.3% to ¥30.7 billion and net income attributable to owners of the parent up 25.9% to ¥20.9 billion.

• Core business profit (subsidiary banks' total) reached ¥31.5 billion, and consolidated ordinary profit was ¥30.7 billion, both showing strong growth from the previous year.

• Business integration with Fukuoka Chuo Bank was completed on October 1, 2023, positively impacting consolidated results.

Financial highlights

• Net interest income rose by ¥2.7 billion year-over-year, with domestic up ¥1.8 billion and international up ¥0.9 billion.

• Non-interest income (excluding bond gains/losses) increased by ¥1.6 billion, mainly from investment trust and insurance fees.

• Loans (subsidiary banks' total) increased 7.0% year-over-year to ¥19.4 trillion, with corporate segment loans up 7.8%.

• Deposits (subsidiary banks' total) rose 4.2% year-over-year to ¥21.39 trillion.

• Overhead expenses grew by ¥2.6 billion, mainly due to Fukuoka Chuo Bank and higher personnel and campaign costs.

Outlook and guidance

• FY2024 net income attributable to owners of the parent is projected at ¥99.5 billion, up 74.8% year-over-year.

• Ordinary profit for FY2024 is forecast at ¥68.5 billion, a 12.0% increase from the previous year.

• Dividend per share is projected to rise to ¥130.00 for FY2024.

• Progress against annual projections is steady, with 27.3% of core business profit and 30.5% of net income achieved.

• Minna Bank expects continued improvement in NPL ratio and growth in deposits and loans.