Kyoto Financial Group (5844) Q2 2025 earnings summary

Executive summary

• Six-month net income reached ¥21.2bn, a fourth consecutive record; ordinary profit was ¥29.7bn, also a record high.

• Higher loan interest income supported earnings growth, while expenses and credit-related costs were lower than expected.

Financial highlights

• Consolidated gross operating profit rose to ¥56.8bn from ¥51.5bn YoY; consolidated net interest income was ¥44.1bn, up ¥3.0bn.

• Consolidated net fees and commissions were ¥9.9bn, up ¥1.1bn YoY; ordinary income was ¥82.8bn and ordinary expenses were ¥53.1bn.

• Kyoto Bank non-consolidated net interest income was ¥44.1bn, up ¥3.1bn YoY; net fees and commissions were ¥7.4bn, up ¥0.6bn.

• Net income per share was ¥72.72.

Outlook and guidance

• FY2024 consolidated net income forecast was raised to ¥35.0bn, a record high; ordinary profit is forecast at ¥49.5bn.

• Kyoto Bank FY2024 net income is forecast at ¥33.2bn and ordinary profit at ¥46.1bn.

• New targets: net asset-basis ROE of 5% and net income of ¥60bn by March 2029; ROE of 8% or more in the first half of the 2030s.

• Interim and year-end dividends are planned at ¥30 each, for ¥60 per share total.