Shizuoka Financial Group (5831) Q1 2025 earnings summary

Executive summary

• Consolidated ordinary profit rose to JPY 29.0bn (+24.5% YoY), and net income increased to JPY 21.0bn (+27.3% YoY), driven by higher gross operating profit and net interest income.

• Ordinary income reached ¥84,914 million in Q1 FY2024, up from ¥82,390 million YoY.

• Group companies' profit contributions continued to grow, especially from customer introduction fees and securities.

Financial highlights

• Net interest income (Shizuoka Bank nonconsolidated) grew by JPY 3.8bn YoY, supported by domestic and international loan growth.

• Gross operating profit reached JPY 49.1bn (+10.6% YoY), with growth for two consecutive years.

• Fees and commissions income increased to ¥21,285 million from ¥19,369 million YoY, led by asset custody and market credit investment.

• Operating expenses decreased by JPY 0.7bn YoY, and consolidated OHR improved to 51.9% (down 7.2 pts YoY).

• Credit-related costs decreased YoY and remained low; credit-related cost ratio at 0.03%.

Outlook and guidance

• FY2024 forecast: ordinary profit JPY 88.0bn, net income JPY 60.0bn, with 1Q progress rates at 32.9% and 34.9% respectively.

• Plans to progressively increase dividend payout ratio to 50%+ by FY2027; FY2024 dividend projected at JPY 48 (+JPY 9 YoY).