Shizuoka Financial Group (5831) Q2 2025 earnings summary

Executive summary

• Net income for FY2024 1H rose JPY 10.1bn YoY to JPY 34.8bn, with a progress rate of 58.0%.

• Gross operating profit increased JPY 11.1bn YoY to JPY 96.2bn, driven by net interest income and fees.

• Group companies' profit contributions grew JPY 1.2bn YoY, supporting consolidated earnings.

• Full-year forecasts were revised upward, with net income now expected to be JPY 6.0bn higher than initial guidance.

• Ordinary profit decreased to JPY 49.9bn from JPY 55.4bn YoY, mainly due to absence of prior year stock sale gains.

Financial highlights

• Net income attributable to owners: JPY 34.8bn (up JPY 10.1bn YoY, +40.6%).

• Gross operating profit: JPY 96.2bn (up JPY 11.1bn YoY, +13.1%).

• Net operating profit: JPY 50.1bn (up JPY 14.0bn YoY, +38.8%).

• Interest income increased to JPY 107.5bn from JPY 99.4bn, with loan interest at JPY 72.3bn and securities interest/dividends at JPY 29.8bn.

• Expenses declined JPY 1.3bn YoY, with OHR improving to 50.7% (down 8.2 pts YoY).

Outlook and guidance

• FY2024 consolidated net income forecast revised to JPY 66.0bn (up JPY 6.0bn from initial plan).

• Ordinary profit forecast raised to JPY 96.0bn (up JPY 8.0bn from initial plan).

• ROE (net assets) target for FY2024 revised to 5.4%, with a medium-term goal of 6.5% or higher.

• Dividend payout ratio targeted at 50% or more by FY2027.