Shizuoka Financial Group (5831) Q4 2025 earnings summary

Executive summary

• Consolidated net income for FY2024 reached a record JPY74.6bn, up JPY16.9bn year-over-year, driven by strong core business growth and lower extraordinary losses.

• ROE (net assets) improved to 6.3% (+1.4pt YoY); FY2025 net income is forecast at JPY81.0bn (+JPY6.4bn YoY), targeting a further record.

• Medium-term plan aims for ROE of 8.5% by FY2027, with strategies focused on balance sheet management, fee revenue growth, and cost control.

• Dividend per share for FY2025 is projected at JPY72 (+JPY12 YoY), with a payout ratio of 48.2%, progressing toward a 50% target.

• Total assets decreased by JPY426.7bn to JPY15,714.8bn, mainly due to lower cash and due from banks.

Financial highlights

• Gross operating profit hit JPY187.3bn (+JPY16.0bn YoY), marking a third consecutive year of growth.

• Net operating profit rose to JPY91.4bn (+JPY8.2bn YoY), despite a sharp YoY decline in equity-method profits.

• Net interest income increased to JPY171.3bn from JPY147.1bn YoY; fees and commissions grew to JPY49.1bn (+JPY4.8bn YoY).

• Ordinary profit was JPY102.1bn (flat YoY), with net income before taxes at JPY104.6bn (+JPY25.1bn YoY).

• Non-performing loan ratio (consolidated) was 0.88%, a slight decrease from 0.95% a year earlier.

Outlook and guidance

• FY2025 forecasts: consolidated ordinary profit JPY118.0bn (+15.6% YoY), net income JPY81.0bn (+8.6% YoY), and ROE (net assets) 7.0%.

• Credit-related costs expected to rise to JPY6.0bn in FY2025, reflecting downside risks such as US tariffs.

• Medium-term plan revised for higher ROE and profit targets, with FY2027 goals of JPY100.0bn+ net income and 8.5% ROE.

• Annual dividend forecast is JPY72.00 per share, up from JPY60.00, with a projected payout ratio of 48.2%.