Fukuoka Financial Group (8354) Q1 2027 earnings summary

Executive summary

• Consolidated core business profit reached ¥39.5 billion, up ¥5.8 billion year-over-year, achieving 26.0% of the annual projection.

• Consolidated net income was ¥28.7 billion, up ¥5.9 billion year-over-year, representing 28.7% of the annual projection.

• Ordinary income rose 20.1% year-over-year to ¥151.9 billion for 1Q FY2026, with ordinary profit up 27.5% to ¥41.5 billion and net income attributable to owners of the parent up 25.7% to ¥28.7 billion.

• Comprehensive income increased 24.6% year-over-year to ¥66.97 billion.

• Core gross business profit rose by ¥8.4 billion year-over-year, driven by higher domestic net interest income and robust investment trust fee income.

Financial highlights

• Net interest income increased by ¥10.9 billion year-over-year, with domestic up ¥10.0 billion and international up ¥0.9 billion.

• Net interest income grew to ¥75.0 billion from ¥58.7 billion year-over-year, and net fees and commissions increased to ¥19.6 billion from ¥17.4 billion.

• Loans grew 4.0% year-over-year to ¥20.36 trillion; deposits increased 1.5% to ¥21.64 trillion.

• Investment trust-related income increased by ¥1.4 billion year-over-year.

• Core OHR improved by 2.5% year-over-year to 53.3% due to higher core gross business profit.

Outlook and guidance

• Progress against annual projections is strong: 26.0% for core business profit and 28.7% for net income after the first quarter.

• FY2026 full-year net income attributable to owners of the parent is projected at ¥100 billion, up 17.1% year-over-year, with ordinary profit forecast at ¥149.5 billion, up 24.0%.

• Net income per share for FY2026 is projected at ¥529.20.