Fukuoka Financial Group, Inc.
8354・Prime Market・Banks
Business
Fukuoka Financial Group is a bank holding company that provides diverse financial services—including securities, guarantees, leasing, and business revitalization support—centered on five core banks: Bank of Fukuoka, Kumamoto Bank, Juhachi-Shinwa Bank, Fukuoka Chuo Bank, and Minna no Ginko (Digital Bank). The group comprises 27 consolidated subsidiaries and 1 equity-method affiliate, and operates a dense sales network across the entire Kyushu region. With individuals, corporations, and the public sector as its main customers, it offers a wide range of services including deposits, loans, foreign exchange, investment trusts, and insurance sales, and has also expanded into the digital finance space through its dedicated digital bank, Minna no Ginko. Since its establishment in 2007, the group has expanded its scale through phased M&A, and made Fukuoka Chuo Bank a wholly owned subsidiary in 2023.
Business Model
The main revenue source is net interest income, comprising interest on loans and interest and dividends on securities, with net interest income reaching ¥263,241 million in FY2026 (ending March 2026). In addition, fees and commissions income of ¥77,095 million from investment trust and insurance sales, foreign exchange operations, and other services supplements revenue. Funding is centered on individual and corporate deposits, with total deposit balances of ¥21,885,605 million. The loan balance of ¥20,306,888 million is diversified across corporate, individual, and public-sector lending, and combined with a securities portfolio of ¥5,451,502 million, this structure secures stable earnings.
Company Strengths
Five banks centered on Fukuoka, Kumamoto, Nagasaki, and Saga cover the entire Kyushu region, forming a wide-area network built through stepwise M&A since 2007 (Shinwa Bank, The Eighteenth Bank, Fukuoka Chuo Bank) that is difficult for competitors to replicate in a short period. Loans outstanding reached ¥20,306,888 million and deposits reached ¥21,885,605 million, forming one of the largest financial bases in Kyushu.
Combined bank lending grew at an annual rate of 6.9%, with the corporate segment growing at a strong annual rate of 8.0%; consolidated loans outstanding at the end of FY2026 (ending March 2026) reached ¥20,306,888 million, up ¥133.65 billion year on year. Corporate sales capabilities capturing capital expenditure demand centered on Kyushu's semiconductor-related industries, together with a diverse customer base including loans to national and local governments (25.96% of the total), underpin the balance growth.
Combined group individual assets under custody reached ¥3,526.2 billion (up ¥572.6 billion year on year), and fees and commissions from investment trust and insurance sales business totaled ¥22,075 million. A sales structure capturing the shift "from savings to investment," combined with diversified customer touchpoints through digital channels such as banking apps, forms the foundation for building up these balances.
ENVALITH's Perspective
Performance Trend
Ordinary income expanded 2.2-fold over five periods, from ¥280,427 million in FY2022 (ended March 2022) to ¥621,168 million in FY2026 (ending March 2026). The main driver of the revenue increase in FY2026 was an external factor—an increase in interest income on fund management (up ¥86,984 million year-on-year to ¥442,554 million) against the backdrop of Bank of Japan rate hikes. Interest on loans was ¥256,937 million (up 27.6% year-on-year), and interest and dividends on securities were ¥132,275 million (up 23.4% year-on-year). On the other hand, other operating expenses, including losses on sales of government bonds and other securities, rose sharply to ¥95,147 million (up ¥72,928 million year-on-year), causing total ordinary expenses to swell to ¥500,557 million (up 42.4% year-on-year). Ordinary profit was ¥120,610 million (up 16.4% year-on-year), and net income attributable to owners of the parent was ¥85,428 million (up 18.4% year-on-year). Combined core net business profit for the bank was ¥151,707 million (up ¥32,643 million year-on-year), indicating that underlying earnings power is also steadily improving.
Growth Strategy
Aiming for net income of ¥100,000 million through three pillars: transforming existing businesses, creating new value, and acquiring new revenue
Bank-combined corporate lending balances maintained high growth of 8.0% year-on-year (¥16,020,788 million as of end-March 2026). While capturing capital investment demand from semiconductor-related industries and others in Kyushu, the Group aims to maintain and improve the loan-deposit gross margin of 1.06% (up 0.12 points year-on-year). The bank-combined ordinary profit forecast for FY2027 (ending March 2027) is ¥174,800 million (up 19.4% year-on-year).
The Group-combined balance of individual assets under custody reached ¥3,526.2 billion (as of end-March 2026), up ¥572.6 billion year-on-year. The Group is strengthening comprehensive asset management proposals combining investment trusts, insurance, and FFG Securities, capturing asset-building demand including NISA. Group-combined investment trust sales for FY2025 totaled ¥441.7 billion (up ¥8.5 billion year-on-year).
Minna no Ginko's net loss for FY2025 narrowed to ¥5,171 million from ¥5,463 million in the previous fiscal year. Loan balances reached ¥35,764 million (up 41.7% year-on-year) and deposit balances reached ¥46,869 million (up 39.6% year-on-year), continuing high growth. The impact on FFG's consolidated results attributable to Minna no Ginko was -¥5.1 billion (an improvement from -¥8.8 billion in the previous fiscal year).
The consolidated results forecast for FY2027 (ending March 2027) is ordinary profit of ¥149,500 million (up 24.0% year-on-year) and net income attributable to owners of the parent of ¥100,000 million (up 17.1% year-on-year). Under a dividend payout ratio policy of approximately 40%, an annual dividend per share of ¥210 (interim ¥105, year-end ¥105) is planned. An increase of ¥14.6 billion is needed from the FY2026 (ending March 2026) actual result of ¥85.4 billion.
Last updated: July 19, 2026