Shizuoka Financial Group (5831) Q3 2025 earnings summary

Executive summary

• Consolidated net income for FY2024 3Q rose JPY 12.4 bn year-over-year to JPY 52.5 bn, driven by higher net interest income, fees, and reduced impairment losses.

• Upward revision of full-year consolidated net income forecast by JPY 7.0 bn to JPY 73.0 bn, reflecting strong core business earnings and reduced credit costs.

• Ordinary income for the nine months ended December 31, 2024, was JPY 244.5 bn, down 4.8% year-over-year, mainly due to lower gains on equity and debt securities.

• Ordinary profit decreased by 2.0% year-over-year to JPY 74.3 bn, while comprehensive income surged to JPY 37.7 bn from JPY 10.5 bn a year earlier.

• Dividend per share for FY2024 revised upward by JPY 21 year-over-year, with a projected payout ratio of 44.9%.

Financial highlights

• Gross operating profit increased by JPY 15.9 bn year-over-year to JPY 143.5 bn; net operating profit up JPY 16.4 bn to JPY 72.7 bn.

• Net interest income increased by JPY 10.9 bn year-over-year to JPY 104.8 bn; net fees and commissions rose by JPY 4.3 bn to JPY 36.8 bn.

• Ordinary profit decreased by JPY 1.5 bn year-over-year to JPY 74.3 bn due to absence of prior year’s stock sale gains.

• Net gains on equity securities dropped sharply to JPY 3.5 bn from JPY 21.7 bn year-over-year.

• Basic earnings per share for the nine months was JPY 95.68, up from JPY 72.19 year-over-year.

Outlook and guidance

• Full-year consolidated net income forecast revised to JPY 73.0 bn, ordinary profit to JPY 100.0 bn, and ROE to 6.0%.

• Dividend per share for FY2024 revised to JPY 60, up JPY 21 year-over-year; total payout ratio at 58.5%.

• Net interest income expected to further increase with rising JPY interest rates and additional rate hikes.

• Guidance reflects improved business trends and first nine months' performance.