Kyoto Financial Group (5844) Q4 2024 earnings summary

Executive summary

• FY2023 consolidated net income attributable to owners rose to ¥31.5bn from ¥27.2bn; the FY2025 target of ¥30.0bn was achieved two years early.

• Net income growth reflected stronger contributions from Kyoto Bank and other group companies.

Financial highlights

• FY2023 consolidated gross operating profit was ¥97.2bn, up ¥3.7bn YoY; ordinary profit was ¥43.5bn, up ¥5.4bn.

• Kyoto Bank FY2023 net income increased to ¥29.6bn from ¥25.6bn; ordinary profit rose to ¥41.3bn from ¥35.5bn.

• Kyoto Bank net interest income reached a record for the fourth consecutive year at ¥79.8bn, up ¥1.3bn; net fees and commissions rose ¥1.4bn to ¥13.1bn.

• Non-recurring gains included ¥5.2bn in gains on sales of strategic equity holdings, up ¥2.5bn YoY; FY2023 net income also benefited from a ¥0.8bn reversal of loan-loss allowances.

Outlook and guidance

• FY2024 consolidated ordinary profit is forecast at ¥46.2bn and net income attributable to owners at ¥33.0bn, up ¥2.7bn and ¥1.5bn, respectively.

• FY2024 Kyoto Bank net income is forecast at ¥31.2bn, ordinary profit at ¥43.4bn, and credit costs at ¥1.5bn.

• FY2024 annual dividend is planned to rise ¥5 to ¥60 per share, with total payout ratio forecast at 53%.

• A three-year plan targets net income of ¥50.0bn, ROE of 6% on a total net asset basis and 8% on a shareholder's equity basis, and an equity-to-asset ratio of about 11%.