My name is Toshiyuki Asano, and I am the General Manager of the Corporate Planning
Division at the Fukuoka Financial Group.
Thank you all for taking the time to join us today.
For about the first 15 minutes of this presentation, I will provide an overview of our first-quarter financial results, and then we will move on to Q&A.
My presentation will follow the Financial Highlights, First Quarter of FY2025 document.
Please turn to page 1.
I will begin with a summary of the first quarter.
We made steady progress in both consolidated core business profit and consolidated net income, achieving 27.1% and 28.5% of our annual projections, respectively.
In terms of the scale of our business, both average loan and average deposit balances maintained an upward trend, and our unrealized gains (losses) on securities improved to virtually flat. Overall, it was a good quarter.
I will now describe the results in greater detail.
Please turn to page 3.
This slide shows a summary of our first-quarter profit and loss.
Consolidated core business profit was 33.7 billion yen, an increase of 5.9 billion yen year-on-year. Despite an increase in overhead expenses due to factors such as a rise in base pay and growth investments related to digital transformation, the increase in profit was driven by higher interest on deposits and loans and higher revenue in the markets division, as well as by recording revenue from external system sales in our Minna Bank business.
Credit cost increased by 3.0 billion yen year-on-year due to the absence of special factors from the previous year, like the recovery of large loans. However, the provision of 2.6 billion yen-or about 15% of our annual projection of 16.9 billion yen-indicates that credit cost remains at a low level.
Gains on securities were 1.4 billion yen. This included gains from the sale of cross-held shares.
As a result, our consolidated net income was 22.8 billion yen, an increase of 1.9 billion yen year-on-year. This represents a progress rate of 28.5% against our annual projection of 80.0 billion yen.
Furthermore, while the progress rate for core business profit on a banks total basis is slightly low at 23.6%, we consider this to be on track with our plan. This is because we expect interest on deposits and loans to increase toward the second half of the fiscal year. For instance, we expect the effects of the short-term prime rate increase for housing loans to start in July. It is also because revenue from credit-related funds will be recorded in the second and fourth quarters.
Please turn to page 6.
Top Line (Consolidated Core Business Profit)
50.0