Fukuoka Financial Group (8354) Q1 2026 earnings summary

Executive summary

• Consolidated core business profit reached ¥33.7 billion, up ¥5.9 billion year-over-year, achieving 27.1% of the annual projection.

• Consolidated net income was ¥22.8 billion, up ¥1.9 billion year-over-year, representing 28.5% of the annual projection.

• Ordinary income rose 15.9% year-over-year to ¥126.4 billion for 1Q FY2025, with net income attributable to owners up 9.2% to ¥22.8 billion.

• Comprehensive income rebounded sharply to ¥53.7 billion from a loss of ¥33.2 billion in the prior year period.

• Growth was driven by higher domestic net interest income, increased market division revenue, and external system sales related to Minna Bank.

Financial highlights

• Core gross business profit increased by ¥9.1 billion year-over-year, while overhead expenses rose by ¥3.2 billion due to higher base pay and DX-related investments.

• Net interest income grew to ¥62.4 billion, with domestic operations contributing ¥58.6 billion.

• Gains on securities remained stable at ¥1.4 billion; credit cost increased by ¥3.0 billion year-over-year, mainly due to a reversal of allowance for loan losses in the prior year.

• Total assets reached ¥32.95 trillion, up from ¥32.26 trillion at the previous fiscal year-end.

• Net income per share (diluted) rose to ¥120.78 from ¥110.64 year-over-year.

Outlook and guidance

• Progress against annual projections is strong: 27.1% for core business profit and 28.5% for net income.

• Full-year FY2025 net income attributable to owners is projected at ¥80.0 billion, up 10.9% year-over-year.

• Ordinary profit for FY2025 is forecast at ¥117.0 billion, a 12.9% increase year-over-year.

• No revisions to earnings or dividend projections were announced.

• Credit cost remains low at 15.4% of the annual projection, with new bankruptcies and rating changes stable.