Fukuoka Financial Group, Inc. · TSE:8354
Fukuoka Financial — Investor Presentation (May 2025)
37 slides from Fukuoka Financial's investor presentation, May 27, 2025
Slide 1: Investor Meeting May 27, 2025
Investor Meeting May 27, 2025
Slide 2: Contents
Fukuoka Financial Group Contents Part I: Management Strategy [Reference] FY2027_Projected Profit (Loss) P22 [Reference] Impact of Rising Domestic Interest Rates P23 FY2024_Overview of Consolidated Financial Results P4 FY2025_Consolidated Earnings Projections P5–6 Part II: Financial Results & Ear
Slide 3: Part I: Management Strategy
Part I: Management Strategy
Slide 4: FY2024 Overview of Consolidated Financial Results
Investor Meeting Fukuoka Financial Group FY2024_Overview of Consolidated Financial Results [Summary of FY2024 financial results] Financial highlights (FFG consolidated) FFG consolidated Consolidated core business profit increased by ¥18.6 billion year-on-year, driven by FY2024 FY2023 YoY chg. an i
Slide 5: FY2025 Consolidated Earnings Projections (Summary)
Investor Meeting Fukuoka Financial Group FY2025_Consolidated Earnings Projections (Summary) [Summary of earnings projections for FY2025] Increase/decrease factors in earnings projections (FFG consolidated) FFG consolidated FY2025 Consolidated core business profit is projected to increase by ¥5.4 b
Slide 6: FY2025 Consolidated Earnings Projections (Year-on-Year Factors)
Investor Meeting Fukuoka Financial Group FY2025_Consolidated Earnings Projections (Year-on-Year Factors) Profit from core businesses will grow significantly, driven by a buildup of loan and fee income, expansion of diversified investment, and the impact of yen interest rates While credit cost ha
Slide 7: Review of 7th MTMP Achievement of Target Management Indicators
Investor Meeting Fukuoka Financial Group Review of 7th MTMP_Achievement of Target Management Indicators In addition to transformation of existing businesses and business integration with Fukuoka Chuo Bank, we worked on securing future earnings and enhancing risk tolerance in light of environmental
Slide 8: Business Environment Surrounding FFG
Investor Meeting Fukuoka Financial Group Business Environment Surrounding FFG In the business environment surrounding FFG, customer behavior and competitive services are evolving significantly as future population decline and technological innovation advance Main changes in Important environmental
Slide 9: FFG's Principles and Long-Term Strategy
Investor Meeting Fukuoka Financial Group FFG’s Principles and Long-Term Strategy ROE: 10%+ Group Principles Economically richer society Our values FFG’s purpose The society FFG hopes to create Create diverse forms of Spiritually Materially To be your Bank of abundance with our Local communities th
Slide 10: 8th Medium-Term Management Plan Overview and Target Management Indicators
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Overview and Target Management Indicators The 8th Medium-Term Management Plan is a three-year period focused on building a growth platform for the sustainable growth of existing businesses and the co-creation of new value, ai
Slide 11: 8th MTMP Basic Policies and Priority Initiatives
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Basic Policies and Priority Initiatives In the 8th Medium-Term Management Plan, focused priority initiatives have been established for each basic policy, based on current challenges and the vision outlined in the Long-Term St
Slide 12: 8th MTMP Transformation of Existing Businesses
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Transformation of Existing Businesses Digital technology and AI will be utilized to enhance customer contact points and provide services that meet diverse needs through both human and digital channels 7th MTMP 8th MTMP Long-T
Slide 13: Transformation of Existing Businesses (Potential of Commercial Banking Business)
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Transformation of Existing Businesses (Potential of Commercial Banking Business) Basic earning power will be increased by expanding the base of the commercial banking business (deposits and loans / asset management) through t
Slide 14: Strengthening the Investment Banking Business
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Strengthening the Investment Banking Business Aim to contribute to regional growth while expanding the business portfolio of FFG’s investment banking division by strengthening risk-taking that contributes to Kyushu’s growth [
Slide 15: Acquisition of New Revenue (Market Operation)
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Acquisition of New Revenue (Market Operation) Achieving sustainable growth in investment revenue and diversification/sophistication of markets division operations, by (1) responding to a world with interest rates and (2) expa
Slide 16: Acquisition of New Revenue (Minna Bank)
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Acquisition of New Revenue (Minna Bank) Specific progress being made toward future growth, such as business collaborations and external system sales Promoting FFG company-wide efforts aimed at business expansion and achieving
Slide 17: Building Strong Foundations
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Building Strong foundations Aiming to strengthen a management base that supports growth strategies, such as through strengthening Single Platform/Multiple Brands and implementing a strategic human resources strategy [Optimal
Slide 18: FFG's Profit Growth
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_FFG’s Profit Growth Consolidated net income in the final fiscal year of the MTMP is projected to be ¥100 billion, driven by the business growth of Minna Bank and affiliated companies in addition to the built-up effects of var
Slide 19: Virtuous Cycle of Growth Investment and Profit Growth
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Virtuous Cycle of Growth Investment and Profit Growth Achieve sustainable profit growth by realizing the effects of investments in each MTMP while maintaining profits from existing businesses By repeatedly pursuing aggressi
Slide 20: Capital Allocation
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Capital Allocation Under the 8th MTMP, in addition to commercial banking, will build up risk assets allocated to investment banking and the markets division Aim to increase profitability of business portfolio and improve RO
Slide 21: Capital Policy
Investor Meeting Fukuoka Financial Group 8th Medium-Term Management Plan_Capital Policy As before, the basic policy is to manage capital in a way that balances growth investments with shareholder returns, based on the premise of soundness Shareholder returns: The target dividend payout ratio wil
Slide 22: [Reference] FY2027 Projected Profit (Loss)
Investor Meeting Fukuoka Financial Group [Reference] FY2027_Projected Profit (Loss) [FY2027 target metrics] Projected volume FFG consolidated FY2027 Change from FY2024 2021 2024 2027 projected FY2024 (Unit: ¥ tril.) results results projected Core gross business profit 334.8 +55.5 279.3 4 banks non-c
Slide 23: [Reference] Impact of Rising Domestic Interest Rates
Investor Meeting Fukuoka Financial Group [Reference] Impact of Rising Domestic Interest Rates Impact of yen interest rates at the current interest rate level will steadily increase towards FY2027 as loan portfolio is restructured, etc. Will continue to respond to circumstances while keeping furt
Slide 24: Part II: Financial Results & Earnings Projections (Reference)
Part II: Financial Results & Earnings Projections (Reference)
Slide 25: FY2025 Earnings Projections by Bank
Investor Meeting Fukuoka Financial Group FY2025_Earnings Projections by Bank Profit & loss (FFG consolidated) FY2025 projected Banks total Bank of Fukuoka Kumamoto Bank Juhachi-Shinwa Bank Fukuoka Chuo Bank FY2025 projected (non-consolidated) (non-consolidated) (non-consolidated) (non-consolidated)
Slide 26: Net Interest Income (banks total)
Investor Meeting Fukuoka Financial Group Net Interest Income (banks total) 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. Interest on loans and discounts: Excluding
Slide 27: Non-interest Income (banks total)
Investor Meeting Fukuoka Financial Group Non-interest Income (banks total) Non-interest income (banks total) *Excluding gains (losses) on bonds Asset management product sales (Group total) (Unit: ¥ bil.) (Unit: ¥ bil.) Corporate-related fees: Loan fees (syndicated loans, structured finance, etc.), M
Slide 28: Consolidated Expenses
Investor Meeting Fukuoka Financial Group Consolidated Expenses Overhead expenses (FFG consolidated) (Unit: ¥ bil.) Breakdown of year-on-year changes (Unit: ¥ bil.) [Excluding non-recurring expenses] +¥12.2 billion FY2024 YoY chg. +¥12.2 billion FY2025 Subsidiaries, 172.4 4 banks + FFG non-consolidat
Slide 29: Consolidated Credit Cost / NPLs Disclosed under the FRL
Investor Meeting Fukuoka Financial Group Consolidated Credit Cost / NPLs Disclosed under the FRL, Reserve for Possible Loan Losses Consolidated Credit Cost (-) [Reference] Balance and ratio of disclosed NPLs under the FRL (Unit: ¥ bil.) (FFG consolidated) (Unit: ¥ bil.) Disclosed NPL ratio (Excludin
Slide 30: Average Balance of Loans
Investor Meeting Fukuoka Financial Group Average Balance of Loans Average balance by segment (Unit: ¥ bil.) Average balance by bank (Unit: ¥ bil.) Excluding loans to Government (public) and Bank of Fukuoka loans to FFG (large-sized enterprises) Excluding loans to Government (public) and Bank of Fuku
Slide 31: Deposits, etc. (including CDs)
Investor Meeting Fukuoka Financial Group Deposits, etc. (including CDs) Average balance by segment (Unit: ¥ bil.) Average balance by bank (Unit: ¥ bil.) Figures in parentheses Annual rate are annual rates +1.9% +3.4% +1.8% Top: +0.9% Corporate Bottom: Retail +3.6% +3.2% +2.4% +1.8% 21,769.8 21,865.1
Slide 32: Breakdown of Loans and Deposits & CDs by Type
Investor Meeting Fukuoka Financial Group Breakdown of Loans and Deposits & CDs by Type [Domestic] Balance of loans (by short-term/long-term/base rate) [Domestic] Balance of deposits, etc. (by floating/fixed) (Unit: ¥ bil.) (Unit: ¥ bil.) Breakdown (total = 100%) Breakdown (total = 100%) Mar. 2023 Se
Slide 33: Part III: Sustainability (Reference)
Part III: Sustainability (Reference)
Slide 34: Initiatives to Address Environmental Issues
Investor Meeting Fukuoka Financial Group Initiatives to Address Environmental Issues Having positioned responding to climate change as a key strategic management issue, FFG is united in its efforts to transition to a decarbonized society Reduction of in-house CO2 emissions Scope 3 Unit: t-CO2 Scop
Slide 35: Initiatives to Address Social Issues / Initiatives for Regional Revitalization
Investor Meeting Fukuoka Financial Group Initiatives to Address Social Issues / Initiatives for Regional Revitalization Based on the belief that promoting and improving financial literacy in local communities is an important role for regional financial institutions, FFG engages in this role active
Slide 36: FFG's Human Capital
Investor Meeting Fukuoka Financial Group FFG’s Human Capital Pillars of FFG’s human resources strategy: Building a human resources portfolio to achieve FFG’s business strategy and improving employee engagement Underlying these pillars: DE&I for individuals to exercise their full potential and or
Slide 37: Fukuoka Financial Group
Fukuoka Financial Group 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. Re
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