Kyoto Financial Group (5844) Q2 2025 earnings summary

Executive summary

• Ordinary profit reached ¥29.7 billion and net income attributable to owners of parent was ¥21.2 billion for the six months ended September 30, 2024, both record highs year-over-year.

• Growth was driven by increased interest income, especially from loans and bills discounted, and lower-than-expected expenses and credit-related costs.

• Deposits and negotiable certificates of deposit rose to ¥9,410.2 billion, and loans and bills discounted increased to ¥7,031.0 billion.

Financial highlights

• Ordinary income for the period was ¥82.8 billion, with ordinary expenses at ¥53.1 billion.

• Net income per share was ¥72.72.

• Gross banking profit (consolidated) increased by ¥5.3 billion year-over-year to ¥56.8 billion.

• Net interest income (consolidated) rose to ¥44.1 billion, up ¥3.0 billion year-over-year.

• Net fees and commissions (consolidated) were ¥9.9 billion, up ¥1.1 billion year-over-year.

Outlook and guidance

• Full-year consolidated net income forecast was revised upward by ¥2.0 billion to ¥35.0 billion, a record high.

• Ordinary profit forecast for FY2024 is ¥49.5 billion, up ¥5.9 billion from the previous year.

• The upward revision is attributed to higher interest income and lower expenses at the main banking subsidiary.

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