Shizuoka Financial Group (5831) Q1 2026 earnings summary

Executive summary

• Consolidated net income rose JPY 1.6bn YoY to JPY 22.6bn, driven by higher net interest income and gross operating profit, with progress rates of 27.9% for net income and 26.4% for ordinary profit toward full-year targets.

• Ordinary income rose 8.2% YoY to JPY 91.8bn for the three months ended June 30, 2025, driven by higher interest income and loan growth.

• Ordinary profit increased 7.2% YoY to JPY 31.1bn, with profit attributable to owners of parent up 7.7% to JPY 22.6bn.

• Gross operating profit increased for the third consecutive year, up JPY 5.1bn YoY to JPY 54.2bn, mainly from Shizuoka Bank's nonconsolidated results.

• The economic environment showed moderate recovery, though uncertainties remain due to external factors and weak consumer sentiment.

Financial highlights

• Net operating profit reached JPY 27.8bn, up JPY 3.8bn YoY, as gross operating profit growth outpaced a JPY 1.3bn rise in expenses.

• Net interest income (nonconsolidated) rose JPY 5.5bn YoY to JPY 42.4bn, supported by higher domestic loan interest from rising JPY rates.

• Credit-related costs increased to JPY 1.7bn, in line with expectations and up from a net reversal the previous year.

• Net gains on equity securities were JPY 4.4bn, up JPY 0.9bn YoY.

• Basic earnings per share for the quarter were JPY 41.66, up from JPY 38.15 a year earlier.

Outlook and guidance

• FY2025 full-year forecasts: ordinary profit JPY 118.0bn, net income JPY 81.0bn, with 1Q progress rates of 26.4% and 27.9% respectively.

• Full-year ordinary profit forecast is JPY 81.0bn, with profit attributable to owners of parent projected at JPY 118.0bn and EPS of JPY 149.35.

• ROE targets: 7.0% (net assets), 8.0% (shareholder equity) for FY2025; 1Q actuals at 7.7% and 9.1% respectively.

• Annual dividend forecast raised to JPY 72.00 per share.

• No changes to the previously announced FY2025 earnings forecast.