Fukuoka Financial Group (8354) Q3 2025 earnings summary

Executive summary

• Core business profit rose by ¥13.5 billion year-over-year to ¥88.0 billion, driven by higher domestic net interest income and robust non-interest income from investment trusts and corporate-related fees.

• Consolidated net income declined by ¥1.4 billion year-over-year to ¥60.7 billion, mainly due to the absence of the previous year's gain on negative goodwill from the Fukuoka Chuo Bank integration.

• Fukuoka Financial Group reported a consolidated total capital ratio of 11.95% as of Dec. 31, 2024, a slight decrease of 0.04% from Sep. 30, 2024.

• Core capital increased to ¥997.1 billion, up ¥22.3 billion sequentially.

Financial highlights

• Net interest income increased by ¥14.2 billion year-over-year, with domestic operations contributing ¥11.5 billion and international operations ¥2.7 billion.

• Non-interest income (excluding bond-related income) grew by ¥5.3 billion year-over-year, led by investment trust commissions (+¥2.9 billion) and corporate-related fees (+¥1.9 billion).

• Overhead expenses rose by ¥6.5 billion year-over-year, mainly due to the addition of Fukuoka Chuo Bank and higher personnel and campaign costs.

• Core OHR improved by 2.7 points year-over-year to 57.3% due to increased core gross business profit.

Outlook and guidance

• FY2024 consolidated net income is projected at ¥72.0 billion, with a progress rate of 84.4% as of 3Q.

• FY2024 core business profit is projected at ¥105.5 billion, with a progress rate of 80.3% as of 3Q.