Nishi-nippon Financial Holdings, Inc. · TSE:7189
Nishi-nippon Financial — Q2 FY2025 Earnings Presentation
52 slides from Nishi-nippon Financial's earnings presentation, Nov 28, 2025
Slide 1: Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2026
Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2026 November 28, 2025 Nishi-Nippon Financial Holdings, Inc.
Slide 2: Contents
Today’s Agenda Reference Materials Page Page I. Financial Results 2 Supplementary Materials on Performance 38 1. Overview of Financial Results 3 1. Statement of Income 39–41 2. Net Interest Income 4 2. Balance Sheet 42–43 (Appendix) Impact of Rising Interest Rates on Earnings (Estimate) 5 3. Average
Slide 3: I. Financial Results
I. Financial Results I. Financial Results Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2026 P. 2
Slide 4: 1. Overview of Financial Results
1. Overview of Financial Results Profit attributable to owners of parent for the six months ended September 30, 2025 increased by 4.8 billion yen year-on-year (YoY) to 21.2 billion yen, mainly reflecting higher net interest income driven by an expansion in the balance on net interest. <Profit attr
Slide 5: 2. Net Interest Income
2. Net Interest Income Net interest income for the six months ended September 30, 2025 increased by 9.2 billion yen YoY to 59.8 billion yen, mainly due to an expansion in the balance on net interest , as well as a decrease in interest on foreign currency funding and an increase in interest on depo
Slide 6: Impact of Rising Interest Rates on Earnings (Estimate)
<Appendix> Impact of Rising Interest Rates on Earnings (Estimate) The rise in market interest rates is expected to have a positive impact on our performance, mainly through the expansion of the loan-to-deposit spread. ■ NCB’s balance sheet structure ■ Impact on earnings (net interest income) [vs.
Slide 7: Net Interest Income (1) Interest on Loans and Discounts (NCB)
2. Net Interest Income (1) Interest on Loans and Discounts (NCB) Interest on loans and discounts for the six months ended September 30, 2025 increased by 13.9 billion yen YoY to 55.9 billion yen on the back of a rise in yield and solid growth of loans and discounts. Interest on loans and discoun
Slide 8: Net Interest Income (2) Interest on Deposits and NCDs (NCB)
2. Net Interest Income (2) Interest on Deposits and Negotiable Certificates of Deposit (NCB) Interest on deposits and negotiable certificates of deposit for the six months ended September 30, 2025 increased by 8.5 billion yen YoY to 10.2 billion yen, driven by a rise in yield, while the deposit ba
Slide 9: Net Interest Income (3) Interest and Dividends on Securities (NCB)
2. Net Interest Income (3) Interest and Dividends on Securities (NCB) Interest and dividends on securities for the six months ended September 30, 2025 increased by 0.2 billion yen YoY to 15.4 billion yen, mainly due to an increase in interest on domestic bonds. Interest and dividends on securiti
Slide 10: 3. Fees and Commissions
3. Fees and Commissions Fees and commissions for the six months ended September 30, 2025 increased by 0.7 billion yen YoY to 12.7 billion yen, mainly due to an increase in corporate customer-related fee income. Fees and commissions for the fiscal year ending March 31, 2026 is expected to increas
Slide 11: 4. Expenses
4. Expenses Expenses for the six months ended September 30, 2025 increased by 2.5 billion yen YoY to 43.5 billion yen, mainly due to an increase in personnel expenses resulting from pay raises and an increase in non- personnel expenses associated with strategic investments*. *The next-version CRM
Slide 12: 5. Credit Cost
5. Credit Cost Credit cost for the six months ended September 30, 2025 increased by 0.7 billion yen YoY to 2.8 billion yen. Given the uncertain outlook and other factors, credit cost for the fiscal year ending March 31, 2026 remain unchanged from the initial plan at 8.0 billion yen, up 2.2 billi
Slide 13: 6. Financial Results Forecast
6. Financial Results Forecast Profit attributable to owners of parent for the fiscal year ending March 31, 2026 is expected to grow by 6.0 billion yen YoY to 37.0 billion yen, mainly due to higher net interest income resulting from an increase in the balance of net interest. ■ Profit and Loss (Con
Slide 14: 7. Shareholder Returns (Dividend Forecast)
7. Shareholder Returns (Dividend Forecast) The year-end dividend forecast has been increased from 45 yen to 65 yen per share, bringing the annual dividend from 90 yen to 110 yen per share. As a result, the dividends ratio for the fiscal year ending March 31, 2026 is expected to be around 40%. <Sha
Slide 15: II. Management Strategies
II. Management Strategies - Initiatives to Enhance Corporate Value - II. Management Strategies Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2026 P. 14
Slide 16: 1. Local Market Environment in Kyushu/Fukuoka
1. Local Market Environment in Kyushu/Fukuoka The Kyushu Region is seeing strong capital investment, led by the semiconductor industry and a series of large- scale urban redevelopment projects. Fukuoka City, home to our Head Office, is experiencing population growth, creating numerous business opp
Slide 17: (1) State of the Kyushu Economy
1. Local Market Environment in Kyushu/Fukuoka (1) State of the Kyushu Economy Kyushu’s economy is expected to continue growing at a level exceeding the national average growth, driven by an increase in capital investments centered on semiconductor-related industries. ■ Kyushu’s economy keeps growi
Slide 18: (2) Potentials of Fukuoka Prefecture/Fukuoka City
1. Local Market Environment in Kyushu/Fukuoka (2) Potentials of Fukuoka Prefecture/Fukuoka City Population decline in Fukuoka Prefecture, where our Head Office is located, is moderate compared to the national average. In addition, Fukuoka City is forecasted to have a population growth and highly r
Slide 19: (3) Development Trend in Fukuoka City and its Vicinity
1.Local Market Environment in Kyushu/Fukuoka (3) Development Trend in Fukuoka City and its Vicinity In addition to large-scale redevelopment projects in the central part of Fukuoka City, development projects for housing and logistics facilities are progressing in the vicinity of Fukuoka City on th
Slide 20: (4) Update on Semiconductor-Related Investments
1. Local Market Environment in Kyushu/Fukuoka (4) Update on Semiconductor-Related Investments Companies around the world are proactively making capital investments for semiconductor-related facilities in many prefectures in the Kyushu Region, most notably Taiwan Semiconductor Manufacturing Company
Slide 21: 2. Initiatives to Enhance Corporate Value
2. Initiatives to Enhance Corporate Value Key measures under the Medium-Term Business Plan (MTBP) are progressing steadily, and target management indices (MTBP KPIs) appear to be on track for achievement. Medium-Term Business Plan Leaping Forward 2026 Mar. 2023 Mar. 2025 Mar. 2026 Mar. 2026 Connec
Slide 22: PBR, ROE, and Stock Prices
<Appendix> PBR, ROE, and Stock Prices ■ PBR ■ Consolidated ROE PBR 1.00 12.0% Shareholders’ equity basis Aiming at a level above capital cost 1.00 Net asset basis over the medium- to long-term 0.90 After a prolonged period of stagnation, 10.0% 0.80 PBR has improved significantly, but is 0.67 0.70 ye
Slide 23: 3. One-to-One Solutions (1) Corporate Customers
3. Providing Customer-Oriented “One-to-One Solutions” (1) Corporate Customers Provide financial and non-financial solutions tailored to each corporate customer’s needs, which are becoming increasingly diverse and sophisticated. Increasingly diverse and sophisticated issues and needs of corporate c
Slide 24: Corporate Customers: Diverse Fundraising Methods
3. Providing Customer-Oriented “One-to-One Solutions” (1) Corporate Customers Provide diverse fundraising methods that meet customers’ individual needs using structured finance, funds, and other instruments. Initiatives for structured finance Utilization of funds Focusing on a diverse range of s
Slide 25: Corporate Customers: DX and Human Resource Support
3. Providing Customer-Oriented “One-to-One Solutions” (1) Corporate Customers Provide a diverse range of solutions that address immediate managerial issues of many corporate customers, including “digitalization/DX” and “recruitment.” Support for digitalization/DX Human resource-related support N
Slide 26: One-to-One Solutions (2) Retail Customers
3. Providing Customer-Oriented “One-to-One Solutions” (2) Retail Customers Provide optimal solutions for each customer by practicing customer-oriented business operation and consulting on all assets and liabilities for a broad range of customers. Issues and needs of retail customers Consulting on
Slide 27: Retail Customers: Asset Building and Wealthy Individuals
3. Providing Customer-Oriented “One-to-One Solutions” (2) Retail Customers Provide optimal solutions for every stage of customers’ lives by proposing asset-building options, starting with NISA, along with various loan products. Consulting on asset building Provision of solutions for wealthy indivi
Slide 28: 4. Sales Reform (1) Strengthening the Sales System
4. Sales Reform (1) Strengthening the Sales System With a strengthened HQ support system, information sharing among branch offices, HQ, and Group companies has improved considerably. Inter-Group collaboration has enabled the provision of diverse solutions. Strengthen the HQ support system Enhanc
Slide 29: 4. Sales Reform (2) Digital Strategy
4. Sales Reform (2) Digital Strategy Both the user count and the share of transactions via digital channels are steadily rising among corporate and retail users. These digital channels are becoming increasingly important as key customer contact points. The Nishi-Nippon City Bank App, a digital c
Slide 30: 4. Sales Reform (3) Work Reform
4. Sales Reform (3) Work Reform Operational efficiency and productivity are steadily increasing through streamlined and digitalized operations at HQ and branch offices. - Utilization of AI in banking operations is progressing steadily. Efforts to enhance productivity through the introduction of ne
Slide 31: 5. Human Resources Reform (1) HR Development
5. Human Resources Reform (1) HR Development Strongly support the growth of each employee by developing strategic human resources to lead the Group’s future in consulting, DX, planning, etc., and expanding job class/business operation-based training and re-skilling training. Developing strategic H
Slide 32: 5. Human Resources Reform (2) Greater Job Satisfaction
5. Human Resources Reform (2) Greater Job Satisfaction Build a corporate culture that promotes advancement of diverse human resources by establishing an environment that enhances job satisfaction through improved employee treatment, promotion of diversity & inclusion, two-way dialogue between the
Slide 33: Reconstruction of the Head Office Building
<Appendix> Reconstruction of the Head Office Building A complex building featuring office floors and commercial facilities, along with The Nishi-Nippon City Bank’s Head Office and HQ functions. Construction underway for the scheduled opening in the summer of 2026. New Head Office building (NIS
Slide 34: 6. Sustainability Initiatives
6. Sustainability Initiatives By prioritizing initiatives that address sustainability-related challenges within the Group’s management strategies, we will advance corporate governance while developing the necessary frameworks and promoting information disclosure. Key sustainability (ESG) initiat
Slide 35: 6. Sustainability Initiatives: Sustainable Finance
6. Sustainability Initiatives Contribute to the realization of a sustainable society by bolstering SDGs/ESG initiatives via means only available to a regional financial group. Supporting customers’ initiatives Our initiatives Offering sustainable finance tailored to diverse customer needs Init
Slide 36: 7. Capital Policy (1) Basic Approaches
7. Capital Policy (1) Basic Approaches Actively make forward-looking growth investments while securing sufficient levels of capital for sustainable growth and improvement of the corporate value of the NNFH Group; at the same time, increase returns of profits to shareholders and investors. Drive gr
Slide 37: 7. Capital Policy (2) Reduction of Strategic Shares
7. Capital Policy (2) Reduction of Strategic Shares The ratio of strategic shares to consolidated net assets stood at 18.3% as of September 30, 2025. Continue reviewing whether it is appropriate to keep holding each issue and consider reduction. ■ Balance of strategic shares, number of issues, r
Slide 38: MEMO
MEMO Financial Results for the Second Quarter of2025年3⽉期 the Fiscal Year Ending March 第2四半期 決算説明会31, 2026 P.37 P.37
Slide 39: Supplementary Materials on Performance
Supplementary Materials on Performance Ref. Supplementary Materials on Performance Financial Results for the Second Quarter of2025年3⽉期 the Fiscal Year Ending March 第2四半期 決算説明会31, 2026 P.38 P.38
Slide 40: Statement of Income (1) Six Months Ended September 2025
1. Statement of Income (1) Six Months Ended September 2025 – YoY Comparisons Six months ended September 30, 2025 Six months ended September 30, 2024 Results YoY change Results (100 million yen) NNFH (A) NCB (B) (A)-(B) NNFH (A) NCB (B) (A)-(B) NNFH (A) NCB (B) (A)-(B) Ordinary income 1,102 961 141 1
Slide 41: Statement of Income (2) Forecast for FY Ending March 31, 2026
1. Statement of Income (2) Forecast for the Fiscal Year Ending March 31, 2026 – YoY Comparisons Fiscal year ending March 31, 2026 Fiscal year ended March 31, 2025 Full-year forecast YoY change Results (100 million yen) NNFH (A) NCB (B) (A)-(B) NNFH (A) NCB (B) (A)-(B) NNFH (A) NCB (B) (A)-(B) Ordina
Slide 42: Statement of Income (3) Comparisons with the Initial Forecast
1. Statement of Income (3) Forecast for the Fiscal Year Ending March 31, 2026 – Comparisons with the Initial Forecast – Fiscal year ending March 31, 2026 Fiscal year ending March 31, 2026 Full-year forecast Comparison with initial forecast Full-year initial forecast (Briefings on May 30) (100 millio
Slide 43: Balance Sheet (1) Assets
2. Balance Sheet (1) Assets NNFH (Consolidated) NCB (Non-consolidated) (100 million yen) Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Sep. 30, 2025 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Sep. 30, 2025 Assets Cash and due from banks 26,147 19,466 22,006 16,742 15,952 25,59
Slide 44: Balance Sheet (2) Liabilities and Net Assets
2. Balance Sheet (2) Liabilities and Net Assets NNFH (Consolidated) NCB (Non-consolidated) (100 million yen) Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Sep. 30, 2025 Mar. 31, 2022 Mar. 31, 2023 Mar. 31, 2024 Mar. 31, 2025 Sep. 30, 2025 Liabilities and Net Assets Deposits 95,703 97,918 1
Slide 45: Average Amount Outstanding, Yield, and Interest (Interim) (NCB)
3. Average Amount Outstanding, Yield, and Interest of Main Accounts (Interim) (NCB) (Six months ended) (100 million yen) September 30, 2021 September 30, 2022 September 30, 2023 September 30, 2024 September 30, 2025 Ave. amount Ave. amount Ave. amount Ave. amount Ave. amount outstanding Yields Inter
Slide 46: Average Amount Outstanding, Yield, and Interest (NCB)
3. Average Amount Outstanding, Yield, and Interest of Main Accounts (NCB) Forecast (100 million yen) March 31, 2022 March 31, 2023 March 31, 2024 March 31, 2025 March 31, 2026 Ave. amount Ave. amount Ave. amount Ave. amount Ave. amount outstanding Yields Interest outstanding Yields Interest outstand
Slide 47: Balance and Valuation Gains or Losses of Securities (NCB)
4. Balance and Valuation Gains or Losses of Securities (NCB) (100 million yen) March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024 March 31, 2025 September 30, 2025 ■ Balance sheet amount Government bonds 3,655 5,006 4,959 4,440 3,590 3,231 Local government bonds 3,321 4,007 4,219 4,798 5,21
Slide 48: Breakdown of Credit Cost by Cause (NCB)
5. Breakdown of Credit Cost by Cause (NCB) (Six months ended) (Fiscal year ended) (100 million yen) Sep. 30, Sep. 30, Sep. 30, Sep. 30, Sep. 30, Mar. 31, Mar. 31, Mar. 31, Mar. 31, Mar. 31, 2021 2022 2023 2024 2025 2021 2022 2023 2024 2025 Provision for general reserve for possible loan losses (Reve
Slide 49: Capital Adequacy Ratio (Consolidated)
6. Capital Adequacy Ratio (Consolidated) ■ Capital Adequacy Ratio (Consolidated) Sep. 30, 2025 Mar. 31, 2025 (100 million yen) (A) (A) – (B) (B) Core capital: instruments and reserves A 5,334 155 5,179 Directly issued qualifying common share capital 5,330 150 5,180 Accumulated other comprehensive in
Slide 50: MEMO
MEMO Financial Results for the Second Quarter of the Fiscal 2025年3⽉期 決算説明会 Year Ending March 31, 2026 P.49 P.49
Slide 51: MEMO
MEMO Financial Results for the Second Quarter of the Fiscal 2025年3⽉期 決算説明会 Year Ending March 31, 2026 P.50 P.50
Slide 52: Nishi-Nippon Financial Holdings, Inc.
These materials have been prepared for the sole purpose of information provision, and do not constitute an invitation or solicitation to purchase or sell any specific securities. Any and all information described herein is subject to change or amendment without notice. These materials contain
Nishi-Nippon Financial Holdings — Q2 FY2025 Earnings Presentation on 6ix