Create diverse forms of abundance with our communities through advanced ideas
Fukuoka Financial Group
Financial Highlights
First Half of FY2025November 10, 2025
Executive Summary
Financial Results for First Half of FY2025 [Consolidated Results]
Consolidated core business profit landed at ¥66.6 billion (+¥7.9 billion year-on-year), ¥3.7 billion above the projected ¥62.9 billion.
≫ Core gross business profit increased by ¥14.4 billion year-on-year, driven by an increase in domestic net interest income from interest on deposits and loans and revenue in the markets division, as well as recording revenue from external system sales related to Minna Bank. Overhead expenses increased by ¥6.6 billion year-on-year, primarily due to an increase in base pay and DX-related growth investments.
Consolidated net income landed at ¥43.6 billion (+¥4.4 billion year-on-year), ¥3.1 billion above the projected
¥40.5 billion.≫ Gains (losses) on securities were positive at ¥0.9 billion, improving significantly by ¥4.5 billion year-on-year, due primarily to the absence of the loss associated with the portfolio restructuring in the previous fiscal year.
≫ Credit cost was a net provision of ¥4.9 billion. Although new bankruptcies and rating changes remained at the same level as the previous year, credit cost increased by ¥4.6 billion year-on-year, primarily due to the absence of the reversal of allowance for loan losses in the previous year following the recovery of large loans.
Average loan and deposit balances maintained an upward trend, and unrealized gains (losses) on securities (after
considering hedges) improved by ¥84.1 billion compared to March 2025.
≫ Average loan balance (excluding loans to Government, etc.) increased by ¥350.5 billion year-on-year (annual rate of +2.2%), and the average balance of deposits, etc. increased by ¥121.2 billion (annual rate of +0.6%). Both loans and deposits are maintaining an upward trend.
≫ Unrealized gains (losses) on securities (after considering hedges) improved to +¥64.8 billion overall, primarily due to an increase in unrealized gains from investment trusts and stocks following the rise in stock prices.
1
ContentsProfit & Loss | ... P3-11 | ||
- Profit & Loss Summary | ... | P3 | |
- Top Line (Consolidated Core Business Profit) | ... | P4 | |
- Bottom Line (Consolidated Net Income) | ... | P5 | |
- Core Business Profit (banks total) | ... | P6 | |
- Net Interest Income (banks total) | ... | P7 | |
- Interest Rates on Domestic Loans | ... | P8 | |
- Consolidated Non-interest Income (excluding gains (losses) on bonds) | ... | P9 | |
- Consolidated Expenses | ... | P10 | |
- Consolidated Credit Cost | ... | P11 | |
Assets and Liabilities, etc. | ... P12-17 | ||
- Loans | ... | P12 | |
- Deposits, etc. (including CDs) | ... | P13 | |
- Asset Management Products | ... | P14 | |
- Securities | ... | P15 | |
- Strategic Shareholdings | ... | P16 | |
- NPLs Disclosed under the FRL, Reserve for Possible Loan Losses, Capital Adequacy Ratio | ... | P17 | |
Minna Bank | ... P18 | ||
Earnings Projection | ... P19 | ||
Financial Data (Information by Bank, etc.) | ... P21-30 | ||
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 |
Banks total | Simple sum of the non-consolidated figures of the Bank of Fukuoka, the Kumamoto Bank, the Juhachi-Shinwa Bank and the Fukuoka Chuo Bank (Note) |
Group total | Banks total + FFG Securities |
Related to Minna Bank | Total of Minna Bank and Zerobank Design Factory (ZDF) |
Net income | Net income for the period (interim, quarter) for non-consolidated and banks combined |
Consolidated net income | Net income for the period (interim, quarter) attributable to owners of the parent |
Loans to Government, etc. | Total of loans to Government and Bank of Fukuoka loans to FFG |
FY2025 projected | Figures announced in the Financial Digest of May 12, 2025 and in the Investor Presentation of May 27, 2025 |
Note: About the figures of the Fukuoka Chuo Bank
Business integration between the Company and the Fukuoka Chuo Bank took effect on October 1, 2023.
Regarding the Fukuoka Chuo Bank, profit (loss) figures since the second half of FY2023 (six months) and balance figures since the business integration have been consolidated and combined after making necessary adjustments. Figures before the end of September 2023 do not include figures for the Fukuoka Chuo Bank.
2
Profit & Loss SummaryProfit & Loss
FFG consolidated
(Unit: ¥ bil.)
2025/1H
YoY chg.
2024/1H
Core gross business profit (*)
151.5
+14.4
137.1
Overhead expense
(-)
84.9
+6.6
78.4
Core business profit
1
66.6
+7.9
58.7
Credit cost
(-)
2
4.9
+4.6
0.3
Gains (losses) on securities
3
0.9
+4.5
-3.5
Gains (losses) on bonds
Gains (losses) on stocks
-4.2
5.2
+7.4
-2.9
-11.6
8.1
Ordinary profit
62.8
+7.2
55.6
Extraordinary income (loss)
-0.3
-1.3
1.0
Consolidated net income
4
43.6
+4.4
39.2
1H
projected*
Chg. from
projected
Financial highlights (FFG consolidated)
(Unit: bil.)
⚫1
▶ See P4, 6
Core business profit: ¥66.6 billion (YoY chg. +¥7.9 billion)
62.9 | +3.7 |
Core gross business profit increased by ¥14.4 billion, driven by a robust increase in net interest income (domestic), following the rise in domestic interest rates, and the recording of revenue from external system sales related to Minna Bank
▶ See P11
Overhead expenses increased by ¥6.6 billion year-on-year, primarily due to an increase in base pay and system-related costs (DX investment, etc.)
⚫2
Credit cost: ¥4.9 billion provision (YoY chg. +¥4.6 billion)
59.0
+3.8
On a banks total basis, increased by ¥4.4 billion, primarily due to the absence of the reversal of allowance for loan losses in the previous year following the recovery of large loans, etc., resulting in a provision of ¥1.8 billion. However, this was lower than anticipated compared to the interim projection of a provision of ¥5.5 billion.
⚫3
Gains (losses) on securities: ¥0.9 billion (YoY chg. +¥4.5 billion)
▶ See P5
40.5 | +3.1 |
Improved significantly due to the absence of the loss in the previous fiscal year associated with the securities portfolio review
1H
projected*
Chg. from
projected
Net interest income
Domestic International
Non-interest income (excluding bond-related income)
119.6
111.5
8.1
+8.1
+7.4
+0.8
111.5
104.1
7.3
15.4
-0.5
15.9
Overhead expense (-) 64.4 +3.6 60.8
Core business profit 70.6 +4.1 66.5 67.4 +3.2
Ordinary profit 69.6 +2.5 67.0 65.9 +3.7
Net income 51.2 +1.2 50.0 48.8 +2.4
Credit cost
(-)
1.8
+4.4
-2.6
5.5
-3.7
⚫4
Banks total
(Unit: ¥ bil.)
2025/1H
YoY chg.
2024/1H
Core gross business profit (*)
135.0 +7.7
127.3
Consolidated net income: ¥43.6 billion (YoY chg. +¥4.4 billion)
Although credit cost increased, consolidated net income increased due to an increase in core business profit and an
(Unit: bil.)
improvement in gains (losses) on securities
Consolidation difference in bottom line
(Unit: ¥ bil.)
FFG non-consolidated -9.5 -2.0 -7.4
Related to Minna Bank -0.1 +4.0 -4.1
Subsidiary income 2.5 +0.3 2.1
Other consolidation adjustments -0.5 +0.9 -1.4
Year-on-year change factors
Net income (banks total) 51.2 +1.2 50.0
2025/1H | YoY chg. | 2024/1H |
[FFG non-consolidated: -¥2.0 billion]
Overhead expenses increased, such as base pay
and system-related costs
[Related to Minna Bank: +¥4.0 billion]
Recorded revenue from external system sales
[Other consolidation adjustments: +¥0.9 billion]
Differences in gains (losses) on securities, etc.
Consolidated net income 4 43.6 +4.4 39.2
(*) Core gross business profit = Gross business profit - Gains (losses) on bonds
* Figures announced in the Financial Digest of May 12, 2025 3
Top Line (Consolidated Core Business Profit) Core business profit (FFG consolidated) (Unit: ¥ bil.)FY2025 projected 124.5 |
Interest 242.8 Non-interest 54.2 Overhead expenses -172.4 |
[Non-interest income] Excluding gains (losses) on bonds
[Overhead expenses] Excluding non-
Profit & Loss
Breakdown of year-on-year changes (FFG consolidated) (Unit: ¥ bil.)
YoY chg. +¥7.9 billion
recurring expenses
93.4
50.0
100.4
49.4
119.1
54.4
+¥7.9
billion
Consolidated net interest income +9.4
Domestic net interest income
+7.4
+0.8 +1.3
Consolidated non-interest income
+5.0
+6.1*
66.6
Consolidated expenses
Other non-interest income
(subsidiaries, consolidation adjustment, etc.)
Corporate-related fees
Investment trusts & insurance
Other net interest income
(subsidiaries, consolidation adjustment, etc.)
International division
Securities, other fund
transactions
Interest on deposits and loans
184.1
▶ See P6
201.2
225.0
58.7
Non-interest income
Total
26.6
-84.9
Net interest income
110.4
66.6
31.6
119.9
Banks total
Net interest income +81
58.7
+3.9
+3.5
-0.5
-0.6
-6.6
Overhead
expenses
-140.6
-150.2
-160.3
-78.4
FY2022 FY2023 FY2024 2024/1H 2025/1H
2024/1H 2025/1H
* Including revenue from external system sales related to Minna Bank 4
Profit & Loss
Bottom Line (Consolidated Net Income)31.2
50.7
61.2
62.1
72.1
21.5
Gain on bargain purchase
(Fukuoka Chuo Bank business integration)
93.9
FY2025 projected 80.0 |
Banks total 100.4 Subsidiaries, etc. -20.4 |
+¥4.4 billion
51.2
Total
39.2 43.6
Banks total
50.0
39.2
+7.9
YoY chg. +¥4.4 billion
+4.5
-4.6
-1.9
Tax expenses
Other operating/extraordinary
income (loss)
Credit cost
Gains (losses) on securities
Core business profit
(Consolidated basis)
-1.5
43.6
-19.5
-7.6
-22.5
-21.8
-10.8
Subsidiaries
, etc.
FY2022 FY2023 FY2024 2024/1H 2025/1H
2024/1H
2025/1H
5
Consolidated net income(Unit: ¥ bil.)
Breakdown of year-on-year changes(Unit: ¥ bil.)
Profit & Loss
Core Business Profit (banks total)[Non-interest income] Excluding gains (losses) on bonds [Overhead expenses] Excluding non-recurring expenses
118.0
105.9
30.2
136.0
33.6
YoY chg. +¥4.1 billion Net interest income +8.1
Domestic net interest income
+7.4
Domestic interest on deposits and loans* +3.9
+20.8
28.7
225.5
FY2025 projected 139.0 |
Interest 240.3 Non-interest 29.4 Overhead expenses -130.8 |
+¥4.1 billion
15.4
Total
66.5 70.6
Non-interest income
15.9
66.5
-16.9
+3.3
+0.3 +0.8
-0.5
Non-interest income
International division
Other fund transactions
Securities
Interest on deposits, etc.
Interest on loans and discounts
-3.6
70.6
119.6
186.4
202.7
-64.4
Net interest income
111.5
1 2 3 4
Overhead expenses
-109.3
-115.0
-123.1
Overhead expenses
-60.8
2024/1H 2025/1H
2
1
3
4
Interest rate factors: +18.4, Volume factors: +2.4
Current account deposits at the Bank of Japan: +11.1 [Balance as of Sep. 30, 2025: ¥6.7 trillion],
Loans to Government, etc.: +9.0 [Balance as of Sep. 30, 2025: ¥3.7 trillion]
Short-term fund procurement, etc.: -19.9 [Balance as of Sep. 30, 2025: Market procurement ¥5.8 trillion, Bank of Japan market operations ¥4.0 trillion]
Investment trusts: -0.5 (Sales commissions: -1.0, Trust fees, etc.: +0.5), Insurance: +0.1, Group credit life insurance premiums: -0.8 (decrease in dividends)
FY2022 FY2023 FY2024 2024/1H 2025/1H
Personnel expenses: -2.5, Non-personnel expenses: -0.7, Taxes: -0.4
* Excluding interest on loans to Government, etc. 6
Core business profit (banks total)(Unit: ¥ bil.)
Breakdown of year-on-year changes (banks total)(Unit: ¥ bil.)
Profit & Loss
Net Interest Income (banks total)Net interest income increased by ¥8.1 billion year-on-year. Domestically, the increase was ¥7.4 billion, mainly due to the increase in interest on deposits and loans and interest and dividends on securities reflecting higher interest rates. Internationally, the increase was ¥0.8 billion, driven mainly by a decrease in funding costs.
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 loans to Government, etc.
78.7
Domestic deposits and loans
14.9
19.8
40.4
150.4
10.8
19.4
26.4
146.2
14.0
9.9
22.7
139.8
8.1
9.7
23.1
0.4
0.5
6.7
1.5
10.5
(+9.0)
FY2022 FY2023 FY2024 2024/1H 2025/1H
(Reference) Loans to Government, etc. under domestic fund transactions, etc.
74.9
Domestic
+7.4
International
+0.8
119.6
111.5
7.3
9.4
19.8
+¥8.1 billion
186.4
202.7
Interest on deposits and loans
77.7
-2.8
Interest on deposits, etc.
-19.7
98.4
Interest on loans and discounts
FY2024
FY2023
FY2022
-12.8
-0.4
-0.3
146.6
140.1
163.1
146.2
139.8
150.4
FY2025 projected 240.3 | |
International division | 16.8 |
Domestic fund transactions, etc. | 26.1 |
Domestic securities | 34.8 |
Domestic deposits and loans | 162.6 |
225.5
+¥3.9 billion
Total |
International division |
Domestic fund transactions, etc. |
Domestic securities |
78.7
74.9
2024/1H 2025/1H
7
Profit & Loss
Interest Rates on Domestic LoansYield on loans increased across all segments. Overall domestic yield is 1.28%, an increase of 24 bp year-on-year. This absorbed the
increase in yield on deposits, etc. (+16 bp year-on-year), with the deposit loan gross margin at 1.10%, an increase of 8 bp year-on-year.
1.53
Yield on loans: Excluding loans to Government, etc.
1.75
Yield on loans: Excluding loans to Government, etc.
FY2025 projected
+24 bp
1.55
1.53
1.56
1.32
1.03
Overall
1.08 1.04
Yield on loans
1.00 0.99
1.28
1.32
1.02 1.00
1.00 0.99
0.84
0.82
0.41
0.41
1.11
1.08
0.92
0.56
1.05
0.99
1.04
1.28 domestic
+24 bp
1.14
0.79
+8 bp
gross margin
Deposit loan
1.02
1.10
+15 bp
0.18
1.14
0.18
Public
1.00
0.85
0.50
0.50
Yield on deposits, etc.
Large-sized enterprises
0.39
0.37
0.00 0.00 0.05 0.03
FY2024
2024/1H
2025/1H
FY2022 FY2023 FY2024 2024/1H 2025/1H
8
Retail
(Unit: %)
SMEs
Overall domestic
Overall domestic
(Including loans to Government, etc.)
0.31
FY2022
0.33
FY2023
Interest rates on domestic loans (banks total)(Unit: %)
Domestic deposit loan gross margin (banks total)Profit & Loss
Consolidated Non-interest Income (excluding gains (losses) on bonds)Consolidated non-interest income increased by ¥5.0 billion year-on-year, driven primarily by the recording of revenue from external system sales (related to Minna Bank). Regarding investment trusts, while there was a decline in sales commissions from the strong performance of the previous fiscal year (already factored into the projected figure), trust fees increased due to the buildup of balances.
Breakdown of investment trusts & insurance fees (banks total)
(Unit: ¥ bil.)
(Unit: ¥ bil.)
54.4
50.0
49.4
19.0
13.5
16.3
9.1
10.9
12.6
+¥5.0 billion
31.6
26.6
9.3
23.5
9.8
5.2
24.0 25.4
5.8
12.6
11.9
11.8
4.6
-7.8
-4.6
11.8
-0.1
-8.5
11.3
0.1
-8.6
6.1
-0.0
-4.1
-2.7
11.3 *
0.9
-4.9
-2.8
-5.0
FY2022
FY2023
-5.5
FY2024
2024/1H
2025/1H
Loan guarantee fees
Group credit life insurance premiums
Foreign exchange, derivatives
Subsidiaries, etc.
Other services
Corporate-relat ed fees
Investment trusts & insurance
Total
FY2022 | FY2023 | FY2024 | 2024/1H | 2025/1H | |
Total | 13.5 | 16.3 | 19.0 | 9.8 | 9.3 |
Sales commissions on investment trusts | 4.0 | 5.7 | 6.9 | 3.7 | 2.7 |
Investment trust fees | 4.0 | 5.1 | 6.8 | 3.3 | 3.7 |
Insurance fees | 5.4 | 5.4 | 5.4 | 2.8 | 2.9 |
FY2025 projected 54.2 |
o/w Investment trusts & insurance 17.3 o/w Corporate-related fees 11.2 |
YoY chg.
+0.5
Breakdown of corporate-related fees (banks total) (Unit: ¥ bil.) | |||||||
FY2022 | FY2023 | FY2024 | 2024/1H | 2025/1H | |||
Total | 9.1 | 10.9 | 12.6 | 5.8 | 5.2 | ||
Syndicated loans, structured finance | 5.1 | 6.3 | 6.9 | 3.0 | 2.6 | ||
Consulting, business matching | 0.4 | 0.5 | 1.0 | 0.4 | 0.4 | ||
M&A | 0.4 | 0.6 | 1.0 | 0.5 | 0.0 | ||
Other (Corporate settlement fees, etc.) | 3.2 | 3.5 | 3.8 | 1.9 | 2.1 | ||
e FFG Succession Co., Ltd.* (M&A advisory services) | 0.3 | 0.3 | 0.5 | 0.3 | 0.5 | ||
Referenc
* Recorded revenue from external system sales related to Minna Bank
* Wholly owned subsidiary of FFG, established on April 1, 2022 (figures in table represent M&A fees) 9