Fukuoka Financial Group, Inc. · TSE:8354
Fukuoka Financial — FY2025 Earnings Presentation
57 slides from Fukuoka Financial's earnings presentation, May 21, 2026
Slide 1: Investor Meeting
Investor Meeting May 21, 2026 1
Slide 2: Executive Summary
Investor Meeting Fukuoka Financial Group Executive Summary Financial Results for FY2025, Earnings Projection for FY2026 Consolidated net income for FY2025 was ¥85.4 billion (ROE 8.5%; +¥13.3 billion year-on-year), with a year-end dividend of ¥95 per share (+¥25 year-on-year) ‒ Increased due to risin
Slide 3: Contents
Investor Meeting Contents Executive Summary P2 Part I: Financial Results for FY2025, Earnings Projection for FY2026 P4 Part II: Initiatives to Improve Corporate Value P13 Appendix P37 3
Slide 4: Part I: Financial Results for FY2025, Earnings Projection for FY2026
Part I Financial Results for FY2025, Earnings Projection for FY2026 4
Slide 5: FY2025 Financial Results: Consolidated Core Business Profit
Investor Meeting Fukuoka Financial Group FY2025 Financial Results: Consolidated Core Business Profit ⚫ Consolidated core business profit reached ¥151.7 billion (+¥32.6 billion year-on-year), driven by profit growth in core businesses (Commercial Banking, Investment Banking, Markets). Increase/decrea
Slide 6: FY2025 Financial Results: Drivers of Growth in Domestic Net Interest Income
Investor Meeting Fukuoka Financial Group FY2025 Financial Results: Drivers of Growth in Domestic Net Interest Income (banks total) ⚫ Domestic net interest income increased, driven by improved loan and bond yields, higher dividends, and the recording of gains on cancellation of investment trusts. ① I
Slide 7: FY2025 Financial Results: Consolidated Net Income, Shareholder Returns
Investor Meeting Fukuoka Financial Group FY2025 Financial Results: Consolidated Net Income, Shareholder Returns ⚫ Driven by an increase in core business profit, consolidated net income increased by ¥13.3 billion year-on-year to ¥85.4 billion, with a year-end dividend of ¥95 per share. Increase/decre
Slide 8: FY2025 Financial Results: Securities
Investor Meeting Fukuoka Financial Group FY2025 Financial Results: Securities ⚫ Enhancing net interest income through portfolio rebalancing by utilizing gains on the sale of strategic shareholdings and unrealized gains on diversified investments. Changes in the securities portfolio (banks total) ≪FY
Slide 9: FY2025 Financial Results: Credit cost
Investor Meeting Fukuoka Financial Group FY2025 Financial Results: Credit cost ⚫ Recorded provisions for a forward-looking allowance, reflecting increased risk of economic downturn from heightened tensions in the Middle East. Credit cost (FFG consolidated) (Unit: ¥ bil.) Impact of heightened tension
Slide 10: FY2026 Earnings Projection, Shareholder Returns
Investor Meeting Fukuoka Financial Group FY2026 Earnings Projection, Shareholder Returns ⚫ Consolidated net income is projected to reach ¥100.0 billion, driven by the effect of measures, securities portfolio rebalancing, and the positive effects of rising interest rates, which will absorb the downsi
Slide 11: FY2026 Earnings Projection (year-on-year factors)
Investor Meeting Fukuoka Financial Group FY2026 Earnings Projection (year-on-year factors) Increase/decrease factors in consolidated core business profit Increase/decrease factors in consolidated net income YoY chg. +¥0.3 billion YoY chg. +¥14.6 billion (Excluding gains (losses) on cancellation of 1
Slide 12: Simulation of Rising Yen Interest Rates
Investor Meeting Fukuoka Financial Group Simulation of Rising Yen Interest Rates ⚫ Net interest income is expected to increase by ¥4.5 billion in FY2026 and by ¥13.0 billion in FY2027 compared to the earnings projection, assuming a policy interest rate of 1.00% (from June 2026). Yen balance sheet (a
Slide 13: Part II: Initiatives to Improve Corporate Value
Part II Initiatives to Improve Corporate Value 13
Slide 14: Current Assessment for Improving Corporate Value
Investor Meeting Current Assessment for Improving Corporate Value ⚫ PBR reached above 1.0x due to improvements in ROE and PER. The target going forward remains an “ROE level that meets growth expectations.” FFG’s PBR/ROE matrix (past 10 years)* PBR 1.60 PBR above 1.0x 1.40 1.20 FY2025 PER 13.0 1.00
Slide 15: Target ROE Level
Investor Meeting Target ROE Level ⚫ Targeting an ROE of approximately 10% for FY2027. The objective is to maintain and improve an “ROE level that exceeds the cost of equity.” A world with negative interest rates A world with positive interest rates Economic cycles and interest rate (Policy interest
Slide 16: Progress of the 8th Medium-Term Management Plan and Changes in the Business Environment
Investor Meeting Fukuoka Financial Group Progress of the 8th Medium-Term Management Plan and Changes in the Business Environment ⚫ While the 8th MTMP is generally progressing on track, the business environment is changing rapidly ⇒ Flexible response aligned with MTMP measures. 〔8th MTMP basic policy
Slide 17: Measures for Improving Corporate Value
Investor Meeting Fukuoka Financial Group Measures for Improving Corporate Value ⚫ Improving asset efficiency and non-interest income under the Long-Term Strategy to establish an earnings base for sustainable growth. Balance sheet (as of Mar. 31, 2026) Investment: Funding: Strengthening of Expansion
Slide 18: [Reference] PBR Logic Tree
Investor Meeting Fukuoka Financial Group [Reference] PBR Logic Tree 8th MTMP Today’s agenda Transformation of existing ‒ Expansion of retail customer base Domestic interest on Enhanced earning business model Improve ROE ‒ Segment-based sales deposits and loans (current Improve RORA power (Commercial
Slide 19: Loans: Segment-Based Sales
Investor Meeting Fukuoka Financial Group I. Transformation of existing business model Commercial banking Loans: Segment-Based Sales ⚫ Maximizing revenue through more effective and efficient solution delivery centered on goal-based sales. Number of main bank clients / segment sales Human resources de
Slide 20: Loans: Supporting Growth in Semiconductor-Related Industries
Investor Meeting Fukuoka Financial Group Loans: Supporting Growth in Semiconductor-Related Industries I. Transformation of existing business model Commercial banking (examples of support for core and mid-sized companies) ⚫ Expanding main bank status and broadening a wide range of transactions across
Slide 21: Establishment of a Semiconductor Ecosystem
Investor Meeting Fukuoka Financial Group IV. Innovation of approach Establishment of a Semiconductor Ecosystem ⚫ Becoming the hub for building a semiconductor ecosystem to realize the New Silicon Island Kyushu. Current assessment of the semiconductor ecosystem in Kyushu and FFG’s initiatives Demand
Slide 22: Securities: Rebalancing of the Securities Portfolio
Investor Meeting Fukuoka Financial Group III. Acquisition of new revenue Securities: Rebalancing of the Securities Portfolio Market ⚫ Net interest income is projected to improve from FY2026 onward due to rebalancing the portfolio in FY2025. ⚫ Adequate investment capacity for domestic bonds; interest
Slide 23: Securities: Diversified Investment and Fund Investment
Investor Meeting Fukuoka Financial Group Securities: Diversified Investment III. Acquisition of new revenue Market II. Strengthening the investment banking business Investment banking and Fund Investment ⚫ Advancing long-term, diversified securities investments to build a portfolio that avoids over-
Slide 24: Deposit Strategy: Expansion of Retail Customer Base
Investor Meeting Fukuoka Financial Group Deposit Strategy: Expansion of Retail Customer Base I. Transformation of existing business model Commercial banking ⚫ While the domestic loan-to-deposit ratio (LDR) remains at 73%, leaving ample capacity for asset expansion, the ratio is trending upward due t
Slide 25: Deposit Strategy: Expansion of Retail Customer Base (vary)
Investor Meeting Fukuoka Financial Group Deposit Strategy: Expansion of Retail I. Transformation of existing business model Commercial banking IV. Innovation of approach Customer Base ⚫ Launched “vary” in Jan. 2026 to help secure main bank status. ⚫ The goal of “vary” is to create a “regional value
Slide 26: Non-Interest Income: Accumulation of Commission Income
Investor Meeting Non-Interest Income: I. Transformation of existing Commercial banking II. Strengthening the investment Investment banking Accumulation of Commission Income business model banking business ⚫ Investment trust fees and corporate-related fees (from M&A and structured finance) are mainta
Slide 27: Minna Bank
Investor Meeting Fukuoka Financial Group Minna Bank III. Acquisition of new revenue MNG ⚫ Launched collaboration with Merpay; will expand new functionalities (corporate accounts, account transfers, etc.) to enhance profitability. FY2025 performance and evaluation Status of the BaaS alliance with Mer
Slide 28: Human Resources Strategy
Investor Meeting Fukuoka Financial Group V. Building a strong foundation Human Resources Strategy ⚫ Aggressively investing in human capital to construct a “human resources portfolio” that supports our “business portfolio.” Achievements in human capital investment Business portfolio (vision) Results
Slide 29: AI Strategy
Investor Meeting Fukuoka Financial Group V. Building a strong foundation AI Strategy ⚫ Rebuilding business processes around AI, aiming for an “AI-first organizational transformation.” Retail banking Corporate banking Face-to-face voice AI Corporate AI reports Image of AI buddy Image of AI concierge
Slide 30: Single Platform/Multiple Brands
Investor Meeting Fukuoka Financial Group V. Building a strong foundation Single Platform/Multiple Brands ⚫ Single Platform/Multiple Brands: Balancing group-wide optimization and area strategies. Overview of Single Platform/Multiple Brands History of business integration Maximizing Group earnings, im
Slide 31: Enhancement of Corporate Governance
Investor Meeting Fukuoka Financial Group V. Building a strong foundation Enhancement of Corporate Governance ⚫ Enhancing corporate governance by reviewing the composition of External Directors and the KPIs for Director remuneration. Skills matrix and brief biographies of External Directors (as of th
Slide 32: [Reference] Strategic Shareholdings
Investor Meeting Fukuoka Financial Group Financial Highlights [Reference] Strategic Shareholdings (previously disclosed) ⚫ Ratio to consolidated net assets as of March 31, 2026 stood at 16.2% (down 0.3 percentage points year-on-year), as steady sales were executed despite soaring stock prices. Reduc
Slide 33: Capital Policy (Capital Allocation)
Investor Meeting Fukuoka Financial Group Capital Policy (Capital Allocation) ⚫ Basic capital policy and approach to shareholder returns remain unchanged. Basic capital policy ◼ While maintaining soundness, we aim to manage capital in a way that balances shareholder returns with investment in growth
Slide 34: [Reference] Shareholder Return Policy
Investor Meeting Fukuoka Financial Group [Reference] Shareholder Return Policy ⚫ Maintaining an upward dividend trend driven by sustainable profit growth. Planning a DPS of ¥210 for FY2026 (+¥30 year-on-year). * Total number of issued shares Shareholder returns (DPS, total dividend payout) excludes
Slide 35: Status of Dialogue with Shareholders and Investors
Investor Meeting Fukuoka Financial Group Status of Dialogue with Shareholders and Investors ⚫ Strengthening external communication with shareholders and investors by consolidating IR, SR, and PR operations from FY2025. Track record of 1-on-1 meetings with investors and analysts Track record of key I
Slide 36: FFG's Uniqueness and Strengths
Investor Meeting Fukuoka Financial Group FFG’s Uniqueness and Strengths 1. Asset scale and regional market share ✓ ¥22 trillion in deposits, with floating deposits accounting for over 70% ⇒ Robust customer base built on commitment to “customer-first” and “goal-based sales” ✓ Growth potential in loan
Slide 37: Appendix (Reference)
Appendix (Reference) 37
Slide 38: Overview of FY2025 Financial Results, FY2026 Earnings Projection
Investor Meeting Fukuoka Financial Group Overview of FY2025 Financial Results, FY2026 Earnings Projection FFG consolidated profit & loss FY2025 financial results FY2026 earnings projection FY2025 financial results (Unit: ¥ bil.) Results YoY chg. Projection YoY chg. [Main year-on-year factors] Core g
Slide 39: Top Line (Consolidated Core Business Profit)
Investor Meeting Top Line (Consolidated Core Business Profit) Profit & Loss Core business profit (FFG consolidated) (Unit: ¥ bil.) Breakdown of year-on-year changes (FFG consolidated) (Unit: ¥ bil.) [Non-interest income] Excluding gains (losses) on bonds +¥0.3 billion YoY chg. +¥0.3 billion [Overhea
Slide 40: Bottom Line (Consolidated Net Income)
Investor Meeting Bottom Line (Consolidated Net Income) Profit & Loss Consolidated net income (Unit: ¥ bil.) Breakdown of year-on-year changes (Unit: ¥ bil.) +¥14.6 billion YoY chg. +¥14.6 billion 100.0 +21.1 +0.8 85.4 100.0 Consolidated core -7.6 72.1 business profit +0.3 Total 61.2 85.4 +9.8 21.5 8
Slide 41: Core Business Profit (banks total)
Investor Meeting Core Business Profit (banks total) Profit & Loss Core business profit (banks total) (Unit: ¥ bil.) Breakdown of year-on-year changes (banks total) (Unit: ¥ bil.) [Non-interest income] Excluding gains (losses) on bonds YoY chg. +¥7.1 billion [Overhead expenses] Excluding non-recurrin
Slide 42: Net Interest Income (banks total)
Investor Meeting Net Interest Income (banks total) Profit & Loss Net interest income (banks total) (Unit: ¥ bil.) Domestic interest on deposits and loans (banks total) (Unit: ¥ bil.) Domestic deposits and loans: Excluding loans to Government, etc. +¥19.1 billion Interest on loans and discounts: Excl
Slide 43: Interest Rates on Domestic Loans
Investor Meeting Interest Rates on Domestic Loans Profit & Loss Interest rates on domestic loans (banks total) (Unit: %) Domestic deposit loan gross margin (banks total) (Unit: %) Yield on loans: Excluding loans to Government, etc. Yield on loans: Excluding loans to Government, etc. 2.02 1.55 1.79 1
Slide 44: Consolidated Non-Interest Income (excluding gains (losses) on bonds)
Investor Meeting Consolidated Non-Interest Income (excluding gains (losses) on bonds) Profit & Loss Non-interest income (FFG consolidated) * Excluding gains (losses) on Breakdown of investment trusts & insurance fees (banks total) bonds (Unit: ¥ bil.) (Unit: ¥ bil.) -¥9.2 billion FY2023 FY2024 FY202
Slide 45: Consolidated Expenses, Consolidated Credit Cost
Investor Meeting Consolidated Expenses, Consolidated Credit Cost Profit & Loss Overhead expenses (FFG consolidated) (Unit: ¥ bil., %) Credit cost (-) (FFG consolidated) (Unit: ¥ bil.) [Excluding non-recurring expenses] 74.0% 65.6% OHR 61.5% Total 24.2 Core OHR 54.8% 59.9% 57.4% 53.2% 54.8% Subsidiar
Slide 46: Loans
Investor Meeting Loans Assets and Liabilities, etc. Average balance by segment (banks total) (Unit: ¥ bil.) Average balance by bank (banks total) (Unit: ¥ bil.) Excluding loans to Government (public) and Bank of Fukuoka loans to FFG Figures in parentheses Excluding loans to Government (public) and B
Slide 47: Deposits, etc. (including CDs)
Investor Meeting Deposits, etc. (including CDs) Assets and Liabilities, etc. Average balance by segment (banks total) (Unit: ¥ bil.) Average balance by bank (banks total) (Unit: ¥ bil.) Figures in parentheses are annual rates Figures in parentheses are annual rates Annual rate +3.2% (retail) +1.8% +
Slide 48: Breakdown of Loans and Deposits & CDs by Type
Investor Meeting Breakdown of Loans and Deposits & CDs by Type Assets and Liabilities, etc. [Domestic] Balance of deposits, etc. (portfolio by liquidity / [Domestic] Balance of loans (portfolio by maturity / base rate) base rate) Breakdown (total = 100%) Breakdown (total = 100%) Mar. 2024 Sep. 2024
Slide 49: Asset Management Products
Investor Meeting Asset Management Products Assets and Liabilities, etc. Balance of assets under management for individual customers Asset management product sales (Group total) (Unit: ¥ bil.) (Group total) (Unit: ¥ bil.) 725.0 672.7 3,526.2 64.7 634.2 56.1 37.5 536.9 Total 576.4 21.1 2,953.6 87.6 2,
Slide 50: Securities
Investor Meeting Financial Highlights Securities (previously disclosed) Assets and Liabilities, etc. Balance at end of period (FFG consolidated) (Unit: ¥ bil.) Unrealized gains (losses) (FFG consolidated) (Unit: ¥ bil.) Mar. 2024 Sep. 2024 Mar. 2025 Sep. 2025 Mar. 2026 5,737.9 Total (before hedges)
Slide 51: NPLs Disclosed under the FRL, Reserve for Possible Loan Losses, Capital Adequacy Ratio
Investor Meeting NPLs Disclosed under the FRL, Reserve for Possible Loan Losses, Financial Highlights Assets and Liabilities, etc. Capital Adequacy Ratio (previously disclosed) Balance and ratio of disclosed NPLs under the FRL Reserve and reserve ratio (FFG Equity, capital adequacy ratio (FFG (FFG c
Slide 52: Minna Bank
Investor Meeting Financial Highlights Minna Bank (previously disclosed) Minna Bank Profit & loss summary (related to Minna Bank*) Number of downloads and accounts (Unit: Thousand) Balance of deposits (excluding special deposits) (Unit: ¥ bil.) (Unit: ¥ bil.) +¥13.5 billion FY2025 results 4,630 Numbe
Slide 53: Sustainability Initiatives (Responding to Climate Change)
Investor Meeting Sustainability Initiatives (Responding to Climate Change) ⚫ Having positioned responding to climate change as a key strategic management issue, FFG is united in its efforts to transition to a decarbonized society. ⚫ Aiming to achieve net-zero CO₂ emissions by 2050, including across
Slide 54: Sustainability Initiatives (Responding to Social Issues, Advancing DE&I at FFG)
Investor Meeting Sustainability Initiatives (Responding to Social Issues, Advancing DE&I at FFG) ⚫ Strengthening collaborations with local governments and local companies to deploy a wide range of measures aimed at “responding to the era of 100-year human lifespans” and “revitalizing local industry.
Slide 55: Long-Term Strategy, 8th Medium-Term Management Plan
Investor Meeting Fukuoka Financial Group Long-Term Strategy, 8th Medium-Term Management Plan Long-Term Strategy (FY2025–FY2034) 8th Medium-Term Management Plan (FY2025 ～FY2027) The society we aim to create 8th MTMP Three years to build a growth foundation for the basic sustainable growth of existing
Slide 56: Definitions of Terms and Figures Used in This Document
Investor Meeting Fukuoka Financial Group Definitions of Terms and Figures Used in This Document In cases where definitions are different from those listed below, details are stated on each page FFG consolidated Consolidated financial results of Fukuoka Financial Group Simple sum of the non-consolida
Slide 57: ⚫ This document has been prepared solely for the purpose of providing information and
⚫ This document has been prepared solely for the purpose of providing information and does not constitute a solicitation for the purchase or sale of any specific securities. ⚫ All or part of the matters contained in this document may be amended or changed without notice. ⚫ Regarding statements about
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