Kyoto Financial Group,inc. · TSE:5844
Kyoto Financial Group,inc — FY2025 Earnings Presentation
51 slides from Kyoto Financial Group,inc's earnings presentation, May 2026
Slide 1: FY2025 Financial Results Briefing Session
FY2025 Financial Results Briefing Session May,2026 (Securities code: 5844)
Slide 2: Index
Index Summary 2 Ⅰ．Performance Overview Strengthening of Consulting Services "Individual Consulting" 26 Resource reallocation for strengthening sales FY2025 Financial Summary 4 27 (IT/DX investment, human capital investment) FY2025 Financial Results (Consolidated) 5 Inorganic Investment 28 Results of
Slide 3: Summary
Summary Net income attributable to owners of parent for FY2025 reached JPY96.7 bn, up JPY60.1 bn year-over-year, FY2025 setting a record high. (Excluding gains from the sale of Nintendo shares, net income was approximately JPY 45.0 billion, Financial due to loan interest and fee income reaching re
Slide 4: I. Performance Overview
I. Performance Overview
Slide 5: FY2025 Financial Summary
FY2025 Financial Summary Sumｍary of FY2025 results （JPY bn） (Kyoto FG Consolidated) FY2026 Net income attributable to owners of parent Kyoto FG consolidated FY2024 FY2025 YoY （PLAN） The consolidated net income for FG in Ordinary profit 50.9 137.1 86.2 76.6 FY2025 reached a record high for the seco
Slide 6: FY2025 Financial Results (Consolidated)
FY2025 Financial Results (Consolidated) FY2024 FY2025 YoY Core gross banking profit （JPY bn） 109.1 117.7 8.5 Net interest income 84.3 91.0 6.6 Net fees and commisions 18.4 20.7 2.3 Net other ordinary income 6.4 5.9 (0.4) Expenses 61.2 66.4 5.1 Core banking profit 47.9 51.2 3.3 Loss (gain) related to
Slide 7: Results of Group Companies (Excl. Kyoto Bank)
Results of Group Companies（Excl. Kyoto Bank） Cotoyoli Co., Ltd. Kyoto Credit Service Co., Ltd. Kyogin Card Service Co., Ltd. Kyogin Lease Co., Ltd. （JPY mn） FY2025 YoY （JPY mn） FY2025 YoY （JPY mn） FY2025 YoY （JPY mn） FY2025 YoY Gross operating Gross operating Gross operating Gross operating profit 5
Slide 8: Net Interest Income / Loans and bills discounted
Net Interest Income / Loans and bills discounted （Kyoto Bank, Non-consolidated） Net interest income Balance of loans by attribute（term-average） （JPY bn） （JPY bn） FY2024 FY2025 YoY 7,514.9 7,059.1 Net interest income※ 84.4 91.2 6.8 622.9 Total 6,431.3 608.3 Interest on domestic loans and bills discou
Slide 9: Interest rate earned on Loans and bills discounted
Interest rate earned on Loans and bills discounted （Kyoto Bank, Non-consolidated） Domestic loans and bills interest rates (average) Yield on deposits and loans （％） （％） 1.161 SMEs 1.087 1.002 0.997 1.094 Housing 0.920 0.906 0.926 1.025 loans 0.916 0.885 1.002 Yield on 0.916 Loans 0.873 0.856 0.838 0.
Slide 10: Asset Accumulation/Structured Finance
Asset Accumulation/Structured Finance Asset accumulation Structured Finance （Comparison with end of March 2023） （JPY bn） （JPY bn） Balance of loans Balance of Investments Other 1,397.5 Income (term-end) (term-end) Structured 1,012.4 Finance 422.8 122.5 13.4 Housing loans 373.7 439.9 102.0 Apartment l
Slide 11: Deposits & NCDs (Kyoto Bank, Non-consolidated)
Deposits & NCDs （Kyoto Bank, Non-consolidated） By attribute By region （term-average） （term-average） （JPY bn） 9,648.2 （JPY bn） 9,648.2 9,250.4 9,410.0 9,250.4 9,410.0 134.3 142.4 Total 101.3 Total 692.8 546.2 566.8 644.3 482.9 505.5 Local Tokyo-Aichi government, 1,062.2 981.0 1,014.1 Financial instit
Slide 12: Non-interest Income (Consolidated)
Non-interest Income （Consolidated） Non-interest income Details of non-interest income （Kyoto Bank + other group companies）(*1) 26.68 Total 26.68 Total （JPY bn） （JPY bn） 23.05 23.05 8.29 Corporate solutions(*2) 19.64 19.64 7.88 16.89 Kyoto Bank Client assets, 5.88 Will and 15.69 6.74 Inheritance trus
Slide 13: Credit Costs & Non-performing loans
Credit Costs & Non-performing loans （Kyoto Bank, Non-consolidated） Non-performing loans based on the Break down of credit costs Financial Reconstruction Law （JPY bn） ＜Amount and Rate＞ FY FY FY FY 2026 1.42 2023 2024 2025 (PLAN) 1.36 1.26 Non- performing Net provision for allowance for loan ratio(%)
Slide 14: Expenses and OHR
Expenses and OHR Expenses and OHR Expenses and OHR (Consolidated) (Kyoto Bank, non-consolidated) 57.92 56.12 56.43 Core gross 58.26 Core gross banking profit 55.93 56.45 banking profit OHR（％） OHR（％） Total 66.4 (JPY bn) Total 61.2 61.0 (JPY bn) 58.0 56.9 55.3 Personnel 35.9 Expense Personnel 33.5 (JP
Slide 15: II. Management Strategy
Il. Management Strategy
Slide 16: Review of the Previous Medium-Term Management Plan (KGI)
Review of the Previous Medium-Term Management Plan (KGI) Previous Medium-Term management Plan's KGI (Oct 2023 - Mar 2026) largely achieved. Results Item Indicator FY2023 FY2024 FY2025 Net asset ３％ 2.96% 3.28% 8.71% Achieved basis ROE (consolidated) Shareholder’s ６％ 6.39％ 7.24％ 17.84％ Achieved equity
Slide 17: Review of the Previous Medium-Term Management Plan ①
Review of the Previous Medium-Term Management Plan ① Vision ～ Comprehensive solutions company driving regional growth and co-creating the future FY2023 FY2024 FY2025 Oct：Establishment of Kyoto Jun：Subsidiarization of Sekisui Jul：Establishment of Kyoto Financial Group Lease （Kyoto FG's first M&A） M&A
Slide 18: Review of the Previous Medium-Term Management Plan ②
Review of the Previous Medium-Term Management Plan ② " Driving regional growth and Solving regional issues " Regional Future Co-Creation Project New Business Creation Project Venture Fund （Beginning in Apr 2024） "WILL" Business Succession Fund A project for employees to FY FY FY 2023 2024 2025 Rev
Slide 19: Positioning of the Medium-term Management Plan
Positioning of the Medium-term Management Plan Ideal Vision in 10 Years A “value creation group” Formulated due that works with all stakeholders to early target to create a virtuous cycle of sustainable growth achievement! Apr. 2026 to Mar. 2029 The New medium-term management plan. “Using Kyoto and
Slide 20: KGI and KPI in the Medium-term Management Plan
KGI and KPI in the Medium-term Management Plan In response to achieving the KGIs of the previous mid-term management plan ahead of schedule, we have set even more challenging strategic objectives than those announced in Nov. 2024. FY2028 plan Strategic goals announced Medium-term management Achievem
Slide 21: Numerical plan for achieving the target
Numerical plan for achieving the target We aim to increase Net interest income primarily through the expansion of deposits and loans and rising yields, while also seeking to expand Net fees and commissions across the group companies. BK Previous Medium-Term New Medium-Term 7th Medium-Term Management
Slide 22: Overview of the Medium-term Management Plan
Overview of the Medium-term Management Plan Achievement indicators Total payout ratio of 50% or more (ongoing policy)…In the past three years, ROE 8% or more, the actual ratio has been around 80-90%,and we will respond flexibly and proactively, Net income JPY 90.0bn or more. taking into account inve
Slide 23: Revision of the loan portfolio
Revision of the loan portfolio Strengthen allocation to SME loans, Apartment loans, and Structured finance, while reducing lending to Large corporations. Actively increase risk assets and execute appropriate shareholder returns, controlling the CAR to around 10% in the final year of the mid-term man
Slide 24: Strengthening of Consulting Services "Corporate Solutions"
Strengthening of Consulting Services "Corporate Solutions" We aim to maximize the revenue of both our customers and the Group by providing support from various perspectives ofr customers, not just through finance. We will strengthen a collaborative sales structure within the Group that can address a
Slide 25: Strengthening of Consulting Services "Corporate Consulting"
Strengthening of Consulting Services "Corporate Consulting" Advance segment-specific strategies to achieve optimal resource allocation for face-to-face sales and deliver higher added value. Segment-specific consulting Deepening of the Real Estate Businesses Bank(Sales Branches・ Boost regional real
Slide 26: Strengthening of Consulting Services "Individual Solutions"
Strengthening of Consulting Services "Individual Solutions" We aim to improve revenue for customers and our Group by timely offering products/services fit for customer life stages. We focus on keeping and growing accounts and transactions with younger clients, while expanding dealings with affluent
Slide 27: Strengthening of Consulting Services "Individual Consulting"
Strengthening of Consulting Services "Individual Consulting" Advance segment strategies via PB teams (skilled experts) and remote consult desks. The sales amount of assets Balance of assets under Group custody Segment-specific consulting under Group custody (JPY bn) (JPY bn) 1,199.3 296.0 Total 957.
Slide 28: Resource reallocation for strengthening sales
Resource reallocation for strengthening sales (IT/DX investment, human capital investment) Boost top line with proactive IT/DX investment and strategically redeploy talent to maximize revenue. Invest in HR to achieve industry-leading talent development, boosting employee "quality" and "breadth." Inv
Slide 29: Inorganic Investment
Inorganic Investment Fill gaps in the business portfolio swiftly with inorganic investments. To drive agile efforts, establish the "Inorganic Strategy Group" as a dedicated unit in Apr 2026. "New business initiatives in sectors with high synergy to our core business are prioritized." "Areas with unc
Slide 30: Growth investment with a focus on venture investments
Growth investment with a focus on venture investments Execute over JPY 100.0 bn in growth investments with a focus on venture investments, advancing the timeline by two years to complete by FY2028. Venture Fund ＆ Business succession Fund Venture Debts (Available. from Jun. 2025) (JPY bn) Target am
Slide 31: Shareholder Returns
Shareholder Returns FY2025: Total payout ratio at 78%, exceeding shareholder return policy. FY2026: The ordinary dividend is planned to increase by 25 yen to a total of 105 yen annually, with a total payout ratio of 79% anticipated, including share repurchases. Dividends per share FY2021 FY2022 FY20
Slide 32: Strategic equity holdings ①
Strategic equity holdings ① Achieve the reduction targets initiated in H2 FY2024 ahead of schedule and revise the targets upward. Reduction target for strategic equity holdings (listed) Initial reduction target (Nov 2024) New reduction target (Apr 2026) Reduction of over JPY100.0 bn from Reduction o
Slide 33: Strategic equity holdings ②
Strategic equity holdings ② Review the purpose of holding all equity securities and proceed with reduction. Initiatives for enhancing the corporate value of Sale of strategic equity holdings strategic equity investees As a responsible investor, we will continue beneficial dialogues that lead to Part
Slide 34: Market Operations
Market Operations Flexibly manage the balance while paying attention to interest rate risk. Limit the overall balance of securities. Investment Carefully determine the timing for resuming investment in domestic bonds, considering potential policy interest rate hikes. Trade investment trusts an
Slide 35: Domestic bond portfolio
Domestic bond portfolio Utilize equity sale gains to improve domestic bond portfolio in H2 FY2025. Sell bonds with valuation loss >10%, shorten duration to 2.6 years, reduce interest rate risk. Anticipate rate hikes, limit balance, and determine the timing for interest rate risk-taking. Domestic Bon
Slide 36: Efforts to reduce "Equity capital costs"
Efforts to reduce ″Equity capital costs” Enhancement of Governance Dialogue with shareholders and investors Composition of the Board of Directors A proposal to appoint a new director with market expertise and corporate FY2023 FY2024 FY2025 management experience will be submitted at the shareholders'
Slide 37: Ideal for 10 Years Ahead
Ideal for 10 Years Ahead ©) KYOTO FINANCIAL GROUP When we engaged in Group-wide discussions about our ideal vision in 10 years, many people indicated a desire to focus on regional co-creation, trust, and taking on challenges. Vv In order to practice our management principles more faithfully, we want
Slide 38: III. Appendix
Il. Appendix
Slide 39: Efforts to Improve Corporate Value
Efforts to Improve Corporate Value Enhance corporate value by improving ROE and reducing shareholder equity cost. New revenue driver P.16 RORA established. Local growth and Strengthening P.17 improvement Increase in service income by Co-creation strategy profitability strengthening consulting
Slide 40: Yen Rate Rise Impact (Kyoto Bank, Non-consolidated)
Yen Rate Rise Impact（Kyoto Bank, Non-consolidated） JPY currency balance sheet Impact of interest rate rise on profits （End of March 2026） (vs. FY2025) (JPY tn) ※Assumption that the balance sheet is unchanged Policy interest Increase in net interest income rate scenario 3 years later 5 years later 0.
Slide 41: Loans & Deposits Status (Kyoto Bank, Non-consolidated)
Loans & Deposits Status （Kyoto Bank, Non-consolidated） Balance of loans and bills discounted by industry Blance of personal deposits (JPY bn) By increasing sticky deposits, the personal deposit balance has reached 6 trillion yen. 2024/3 2025/3 2026/3 Composition Compared ratio (%) to 2025/3 2.6 2.3
Slide 42: The stock price performance
The stock price performance The stock price performance after March 2026 significantly surpasses that of the banking industry 130.0 Kyoto FG 125.0 120.0 Banking 115.0 Industry 110.0 105.0 100.0 95.0 Indexed to 100 based on the stock price as of Jan 5, 2026. 90.0 1/5 1/10 1/15 1/20 1/25 1/30 2/4 2/9
Slide 43: Comprehensive Risk Management
Comprehensive Risk Management Status of Comprehensive Risk Amount Interest rate risk in the banking book (As of the end of March 2026) (As of the end of March 2026) As part of the Risk Appetite Framework, the company confirms Delta EVE Equity Delta EVE／Equity that risk-taking (amount of comprehensiv
Slide 44: Sustainable Society Initiatives
Sustainable Society Initiatives Our business‘s decarbonization initiatives Support for customers' decarbonization Reduce GHG emissions* by 80% compared to FY2013 levels by FY2030. Execute JPY 2.0 tn in sustainable finance from FY2020 to FY2030. ※Scope1,2 NEW NEW ▲52% ▲50% （Cumulative execution a
Slide 45: History of Kyoto Bank
History of Kyoto Bank (Outline: Establishment to Heisei Eras) 昭和 1941 Established Tanwa Bank (％) Market Share within Kyoto Prefecture Post-war recovery Commissioned to provide main Emergence of venture companies and 1950 depository service for Kyoto subsequent rapid growth Prefecture Loans Establish
Slide 46: Overview of Kinki Region
Overview of Kinki Region Kyoto Prefecture ranks 13th economically, yet our branch network in the Kinki region (Kyoto, Osaka, Hyogo, Shiga, Nara) boasts a large economy. High demand for commercial areas in Kyoto and Osaka leads to land prices above the national avg. Kyoto sees 84.25mn visitors and JP
Slide 47: 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 National National High-tech cooperation Industry: Many m
Slide 48: 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 Semina
Slide 49: 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 50: 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 51: 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 descripti