Kyoto Financial Group (5844) Q2 2027 earnings summary

Executive summary

• Six-month ordinary income rose 27.9% YoY to ¥134,950 million; ordinary profit rose 32.4% to ¥49,668 million and parent-attributable net income rose 28.8% to ¥34,610 million, each a sixth consecutive interim record.

• Higher loan and securities interest income and gains on stock and other securities supported results; bond-sale losses and higher deposit interest costs partly offset growth.

Financial highlights

• Net interest income was ¥57,769 million, up ¥13,029 million YoY; net fees and commissions were ¥12,268 million, up ¥1,145 million.

• Core gross banking profit reached ¥78,488 million, up ¥19,400 million YoY; core banking profit was ¥43,885 million, up ¥17,260 million.

• Six-month net income was ¥34,611 million; diluted EPS was ¥122.64 and basic EPS was ¥122.66.

• Comprehensive income increased to ¥217,448 million from ¥182,985 million; available-for-sale securities valuation gains contributed ¥184,223 million to OCI.

Outlook and guidance

• FY2027 forecasts were raised to ordinary income of ¥250,400 million, ordinary profit of ¥86,700 million and parent-attributable net income of ¥60,000 million.

• Net income guidance increased ¥8,000 million from the initial forecast; ordinary profit guidance rose ¥10,100 million to ¥86,700 million.

• FY2027 annual dividend is planned at ¥125 per share, including ¥50 interim and ¥75 year-end; year-end guidance increased ¥20 from the initial forecast.

• Excluding FY2025 gains from the Nintendo share sale, FY2025 net income was ~¥45.0bn; the FY2026 plan targets a ¥15.0bn real-term profit increase.

• Forecasts use currently available information and assumptions; actual results may differ due to future factors.