Kyoto Financial Group,inc. · TSE:5844
Kyoto Financial Group,inc — 1H FY2025 Earnings Presentation
41 slides from Kyoto Financial Group,inc's earnings presentation, Dec 18, 2025
Slide 1: Kyoto Financial Group Interim Results Briefing
December, 2025 (Securities code: 5844)
Slide 2: Index
Index Ⅰ. Business Performance Overview Financial Results Summary of 1H FY2025 3 Shareholder Returns 21 Financial Results Summary of 1H FY2025 Strategic Equity Holdings (1) 22 4 (Kyoto Bank, Non-consolidated) Strategic Equity Holdings (2) 23 Interest Income and Rate Earned on Loans and Bills 5 (Kyoto
Slide 3: I. Business Performance Overview
I. Business Performance Overview
Slide 4: Financial Results Summary of 1H FY2025
Financial Results Summary of 1H FY2025 Kyoto FG consolidated (JPY bn) Kyoto FG 1H FY2024 1H 2025 consolidated net YoY income Gross operating profit 56.8 57.6 0.8 Kyoto FG consolidated net income hit record Ordinary profit 29.6 37.4 7.8 highs for the fifth straight year, driven by an Net income attri
Slide 5: Financial Results Summary of 1H FY2025 (Kyoto Bank, non-consolidated)
Financial Results Summary of 1H FY2025 (Kyoto Bank, non-consolidated) (JPY bn) 1H FY2024 1H FY2025 YoY 【Increase Factor】 Loan interest rates increased Gross operating profit 53.4 68.1 14.7 【Decrease Factor】 Net interest income 44.1 59.8 15.7 Decrease in dividend income (excluding dividends from subs
Slide 6: Interest Income and Rate Earned on Loans and Bills
Interest Income and Rate Earned on Loans and Bills (Kyoto Bank, non-consolidated) Factors of Net Interest Income Domestic loans and Bills interest rates (average) Domestic (%) (JPY bn) Loans and Total SMEs Large corporations Housing loans Bills Domestic 1.087 By rate Domestic deposits, securities et
Slide 7: Non-Interest Income (Consolidated)
Non-Interest Income (Consolidated) Non-interest income (Kyoto Bank + Other Group Companies) (*1) (JPY bn) 14.00 12.49 10.58 9.85 Kyoto Bank 8.59 9.40 9.09 7.91 7.43 6.04 Group companies (excluding Kyoto Bank) 4.60 2.55 2.66 2.41 3.39 1H 1H 1H 1H 1H FY2021 FY2022 FY2023 FY2024 FY2025 Details of non-i
Slide 8: Credit Costs and Disclosed Assets
Credit Costs and Disclosed Assets (Kyoto Bank, Non-consolidated) (JPY bn) Break down of credit costs FY2025 FY2021 FY2022 FY2023 FY2024 1H FY2025 (Plan) Net provision for allowance for specific loan losses 2.9 2.1 0.9 0.9 (0.0) 3.1 Disposal amount due to occurrence of new nonperforming loans 4.1 3.2
Slide 9: Financial Results Forecast for FY2025
Financial Results Forecast for FY2025 Consolidated net income is expected to increase for the fifth consecutive year and to reach a record high, with the forecast revised upward from the initial forecast. Kyoto FG consolidated (JPY bn) FY2025 FY2024 (Plan) Of budget YoY Ordinary profit 50.9 63.5 5.4
Slide 10: II. Management Strategy
Ⅱ. Management strategy
Slide 11: Progress Towards the Strategic Goals of the 2nd Medium-Term Management Plan
Progress Towards the Strategic Goals of the 2nd Medium-Term Management Plan The ROE target of 5% in the second medium-term management plan is considered a milestone, aiming to achieve over 8% at an early stage. 1st Medium-Term Management Plan targets 2nd Medium- Term First half of Management FY2022
Slide 12: Pillars of Initiatives towards the Strategic Goals
Pillars of Initiatives towards the Strategic Goals of the 2nd Medium-Term Management Plan Using the following three pillars as the foundation of our initiatives, we aim to achieve the target ROE of 5% (based on net assets) March 2029 ROE 5% (Net income JPY60.0bn) First half of 2030s ROE 8% or more (
Slide 13: Strengthen the Deposit and Loan-Oriented Business: Loans and Bills Discounted
Strengthen the Deposit and Loan-Oriented Business: “Loans and Bills Discounted” (Kyoto Bank, Non-consolidated) Loans and bills discounted grew driven by real estate-related loans, with structured finance continuing to be promoted Asset accumulation (Comparison with end of March 2023) Status of loans
Slide 14: Strengthen the Deposit and Loan-Oriented Business: Deposits
Strengthen the Deposit and Loan-Oriented Business: “Deposits” (Kyoto Bank, Non-consolidated) Acquiring deposits focused on “quality” - achieving main transaction status and acquiring transactional deposits Increased corporate deposits Status of deposits By attribute (term-average) By region (term-av
Slide 15: Expand Comprehensive Solutions Function (1)
Expand Comprehensive Solutions Function (1) Continue “Expansion of solution functions” and “expansion of new business domains” to achieve both sustainable growth for our customers and our group. Stages of Establishment period Growth period Stabilization period Period of decline Growth /needs Busines
Slide 16: Expand Comprehensive Solutions Function (2)
Expand Comprehensive Solutions Function (2) Group-wide strategy to meet the challenge of change… Establishment of Kyoto M&A Advisory (July 2025) and expansion of Cotoyoli’s business domain (October 2025) Support for core business aimed at solving customer issues leads to results Concept of Kyoto M&A
Slide 17: Expand Comprehensive Solutions Function (3)
Expand Comprehensive Solutions Function (3) Bring together the Group’s full strength to promote further growth of regional companies and continue efforts to revitalize and develop the regional economy Regional Future Co-Creation Project (Initiatives began in April 2024) Initiatives to support custom
Slide 18: Discover and Nurture Next-Generation Growth Companies
Discover and Nurture Next-Generation Growth Companies Implement growth investments for the next generation of over JPY 100 billion using funds from the reduction of strategic equity holdings KCAP leads the effort in promoting growth investment for the next generation Results of venture funds and bus
Slide 19: Consumer General Sales
Consumer General Sales Subdivision of customer segments based on financial assets and promotion of strategic approaches Strategy by customer segment Balance of assets under Group custody Number of Group NISA accounts (JPY bn) 1,087.0 (Thousand accounts) Consulting by financial assets × life stages 9
Slide 20: Market Operations
Market Operations Flexibly manage the balance while paying attention to interest rate risk. For domestic bonds, to prepare for the Bank of Japan's interest rate hikes, the aim is to shorten maturities and improve yields through reinvestment upon redemption. For foreign bonds, the focus is on ass
Slide 21: Capital Allocation
Capital Allocation Actively invest in credit risk assets that lead to future growth while implementing appropriate shareholder returns. Meanwhile, considering the ability to withstand unforeseen future crises, set the capital adequacy ratio at an appropriate level in the 11% range. Capital Allocatio
Slide 22: Shareholder Returns
Shareholder returns Based on the upward revision of the full-year earnings forecast, the dividend forecast for fiscal year 2025 has been revised to an increase of 20 yen compared to the previous year (an increase of 10 yen compared to the initial forecast). Additionally, the decision has been made t
Slide 23: Strategic Equity Holdings (1)
Strategic Equity Holdings (1) We will review the significance of our holdings of all stocks and reduce our strategic equity holdings Target on Reducing Holdings of Securities Held for Strategic Equity October 2024 to March 2029 100.0 billion yen or more (market value) Reduction in market value of Se
Slide 24: Strategic Equity Holdings (2)
Strategic Equity Holdings (2) The full sale of stocks transferred as pure investment stocks from strategic equity holdings has been agreed upon and we will proceed with reduction under individual management We will strengthen engagement with strategic equity investees and promote sustainable growth
Slide 25: Initiatives to Reduce Shareholder Capital Costs
Initiatives to Reduce Shareholder Capital Costs New initiatives for sustainable finance Dialogue with shareholders & investors ➣Launched “Kyogin Sustainability Linked Loan - GX Support -” FY2023 FY2024 1H FY2025 Kyogin Sustainability Linked Kyogin Sustainability Linked Sustainability Linked Loan Loa
Slide 26: Efforts to Improve Corporate Value
Efforts to Improve Corporate Value By implementing various measures to improve ROE and reduce shareholder capital costs, we aim to enhance corporate value. ■ Significant accumulation of ➢ Strategy development by P.11 risk assets launching strategic RORA Strengthening ■ Increase in service income imp
Slide 27: III. Reference Material
Ⅲ. Reference material
Slide 28: History of Kyoto Bank (Outline: Establishment to Heisei Eras)
History of Kyoto Bank (Outline: Establishment to Heisei Eras) 昭和 1941 Established Tanwa Bank (％) Market Share with in Kyoto Prefecture Post-war recovery Commissioned to provide main Emergence of venture companies and 1950 depository service for Kyoto subsequent rapid growth Prefecture Loans Establis
Slide 29: Outline of Kinki Region
Outline of Kinki Region Although ranked 13th in terms of economic scale, the Kinki region (Kyoto, Osaka, Hyogo, Shiga, and Nara prefectures), which has a network of stores, has a large economy. Demand for commercial land in Kyoto and Osaka prefectures is high, and land prices are above the national
Slide 30: Attraction of Kyoto Prefecture
Attraction of Kyoto Prefecture Kyoto’s unique and attractive industrial structure is also related to our Group’s business and will lead to business opportunities Kyoto has many technologically advanced high-tech industries. Industry-university High-tech cooperation Industry: Many manufacturing compa
Slide 31: Initiatives to Contribute to Local Communities
Initiatives to Contribute to Local Communities Continued efforts to embody the Management Principle of "Serving the Prosperity of the Community” Promotion of local culture and sports Financial and economic education initiatives [Volunteer float pullers at the Gion Festival, working in a yukata] [Sem
Slide 32: HR Strategy (Human Capital Management) (1)
HR Strategy (Human Capital Management) (1) Measure effectiveness through engagement surveys and deploy measures in a timely manner to "achieve engagement management“ Provide career support tailored to what employees want to be, fostering a highly motivated work culture Engagement Management: Maximiz
Slide 33: HR Strategy (Human Capital Management) (2)
HR Strategy (Human Capital Management) (2) Further accelerate investment in human resources in order to develop high-level professionals that meet diversifying customer needs Implement strategic placement in line with the expansion and advancement of business domains Investment in & training of & de
Slide 34: DX Strategy (1)
DX Strategy (1) Initiatives for transforming to data-driven management ➣ Construct a Service Innovation Core (SIC) infrastructure for data collection, analysis, and utilization, strengthen sales and marketing utilizing collected data and AI, enhance screening and risk management, and promote operati
Slide 35: DX Strategy (2)
DX Strategy (2) Introduction of business smartphones—Enhancing productivity for all employees ➣Distribute smartphones to all Bank of Kyoto employees, aiming to improve operational efficiency and customer response speed in both sales and business activities through smartphone internalization*1, optim
Slide 36: Impact of Rising JPY Interest Rate
Impact of rising JPY interest rate (Kyoto Bank, Non-consolidated) Assuming that the Bank of Japan's policy interest rate rises to 1.00%, it is expected that the net interest income will increase by approximately JPY40.0bn in five years. Impact of rising interest rates on profits Increase in net inte
Slide 37: Expenses and OHR
Expenses and OHR Expenses and OHR (Consolidated) Expenses and OHR (Kyoto Bank, non-consolidated) 56.28 57.13 56.31 57.07 57.91 55.01 55.20 56.27 53.68 OHR 53.50 OHR (％) (％) (JPYbn) 32.4 (JPYbn) 30.5 29.9 28.3 28.2 28.3 28.5 27.3 27.0 27.1 15.6 Personnel 15.1 expense 15.3 15.2 15.3 Non- 10.9 11.5 per
Slide 38: Comprehensive Risk Management
Comprehensive Risk management Interest rate risk in the banking book Status of Comprehensive Risk Amount (As of the end of September 2025) (As of the end of September 2025) Delta EVE As part of the Risk Appetite Framework, the company confirms Delta EVE Equity /Equity that risk-taking (amount of int
Slide 39: Group Companies
Group Companies Main Business Kyoto Financial Group, Inc. Business management of group companies The Bank of Kyoto, Ltd. Banking Kyoto Guaranty Service Co., Ltd. Credit guarantee Sky Ocean Asset Management Co., Ltd. (The Bank of Kyoto’s Equity Method Associate) Investment management Management of el
Slide 40: Governance Structure
Governance Structure Election and dismissal General Meeting of Shareholders Election and dismissal Election and dismissal Kyoto Financial Group Consultation Group Nomination and Cooperation Compensation Committee Report Board of Directors Audit and Supervisory Committee Sustainability Management Cou
Slide 41: Inquiries
This material has been translated from the Japanese-language original for reference purposes only. In the event of any conflict or discrepancy between this document and the Japanese-language original, the Japanese-language original shall prevail in all respects. And This material contains descriptio
Kyoto Financial Group — 1H FY2025 Earnings Presentation on 6ix