Fukuoka Financial Group (8354) Q2 2025 earnings summary

Executive summary

• Core business profit rose to ¥58.7 billion, up ¥7.5 billion year-over-year, driven by higher domestic net interest income and non-interest income.

• Consolidated net income increased ¥8.9 billion year-over-year to ¥39.2 billion, reflecting improved core business profit and lower credit costs.

• Ordinary income rose 15.6% year-over-year to ¥224.9 billion for the six months ended September 30, 2024.

• Core business profit (subsidiary banks' total) reached ¥66.5 billion, up from ¥58.4 billion in the prior year.

• Business integration with Fukuoka Chuo Bank was completed on October 1, 2023, boosting consolidated figures.

Financial highlights

• Net interest income (banks total) up ¥10.2 billion year-over-year, with domestic up ¥8.1 billion and international up ¥2.1 billion.

• Non-interest income (excluding bond gains/losses) increased ¥3.1 billion year-over-year, mainly from investment trust commissions and corporate fees.

• Overhead expenses rose ¥5.5 billion year-over-year, mainly due to Fukuoka Chuo Bank integration and higher personnel and campaign costs.

• Ordinary profit grew 25.1% year-over-year to ¥55.6 billion; net income per share was ¥207.23, up from ¥161.35.

• Comprehensive income turned negative at ¥(2.45) billion, mainly due to valuation losses on securities and hedges.

Outlook and guidance

• Full-year consolidated net income forecast revised up by ¥3.5 billion to ¥72.0 billion; core business profit forecast raised by ¥7.6 billion to ¥109.6 billion.

• Ordinary profit for FY2024 projected at ¥105.5 billion, up 85.3% from the previous year.

• Credit cost forecast for the year reduced by ¥5.5 billion to ¥0.8 billion.

• Dividend per share forecast raised to ¥135.00 for FY2024.