Fukuoka Financial Group, Inc.
8354・Prime Market・Banks
Fukuoka Financial Group (Banking Business, Single Segment)
Core banking business segment of a wide-area regional financial group based in Kyushu
| Period | Current | Previous | Change |
|---|---|---|---|
| Ordinary income (FFG consolidated, full year) | ¥621,168 million | ¥455,711 million | ↑ |
| Ordinary profit (FFG consolidated, full year) | ¥120,610 million | ¥103,594 million | ↑ |
| Net income attributable to owners of parent (FFG consolidated, full year) | ¥85,428 million | ¥72,136 million | ↑ |
| Core net business profit (FFG consolidated, full year) | ¥151,707 million | ¥119,064 million | ↑ |
| Loan balance (combined banks, period-end) | ¥20,383,759 million | ¥19,070,596 million | ↑ |
| Deposit balance (combined banks, period-end) | ¥21,609,333 million | ¥21,554,403 million | ↑ |
| Non-performing loan ratio (FFG consolidated) | 1.51% | 1.62% | ↓ |
| Total assets (FFG consolidated, period-end) | ¥33,559,486 million | ¥32,262,623 million | ↑ |
| Net assets (FFG consolidated, period-end) | ¥1,076,716 million | ¥929,593 million | ↑ |
| Capital adequacy ratio (FFG consolidated, preliminary) | 11.42% | 12.37% | ↓ |
| Earnings per share (FFG consolidated) | ¥451.99 | ¥381.54 | ↑ |
| Annual dividend per share | ¥180.00 | ¥135.00 | ↑ |
| ROE (FFG consolidated) | 8.51% | 7.40% | ↑ |
| Credit cost (FFG consolidated, full year) | ¥18,235 million | ¥6,102 million | ↑ |
| Individual assets under custody (group combined, period-end) | ¥3,526.2 billion | ¥2,953.6 billion | ↑ |
Business Details
The group comprises five banks — Bank of Fukuoka, Kumamoto Bank, Juhachi-Shinwa Bank, Fukuoka Chuo Bank, and Minna no Ginko — and operates a dense network across Kyushu, centered on Fukuoka, Kumamoto, and Nagasaki prefectures. Centered on deposits, lending, foreign exchange, and Securities Investment, the group provides a wide range of financial services including asset management products such as investment trusts and insurance sales, corporate solutions, and securities business through FFG Securities. The reported segment consists solely of the banking business, as other businesses are deemed immaterial and segment information disclosure for them is omitted.
Recent Overview
Net interest income expanded substantially on the back of rising interest rates, with both ordinary profit and net income reaching record highs
In FY2026 (ending March 2026, FY2025), fund management income expanded substantially to ¥442,554 million (up ¥86,984 million year on year), driven by an increase in interest on loans (FFG consolidated: ¥256,937 million, up ¥55,518 million year on year) reflecting the Bank of Japan's interest rate hikes, and an increase in interest and dividends on securities (¥132,275 million, up ¥25,112 million year on year). On the other hand, while other operating expenses expanded due to an increase in losses on sales of Japanese government bonds and other bonds (combined banks: ¥-91,156 million), gains on stocks and other securities (combined banks: ¥80,921 million) boosted extraordinary income. FFG consolidated ordinary profit reached ¥120,610 million (up 16.4% year on year), and net income attributable to owners of parent reached ¥85,428 million (up 18.4% year on year). For FY2027 (ending March 2027), the company forecasts ordinary profit of ¥149,500 million (up 24.0% year on year) and net income of ¥100,000 million (up 17.1% year on year), and plans an annual dividend of ¥210 (up ¥30 from the prior fiscal year).
Key Products
Growth Drivers
- Increase in interest on loans driven by the Bank of Japan's interest rate hikes (FFG consolidated: up ¥55,518 million year on year to ¥256,937 million) and improvement in the gross deposit-lending margin (combined banks: 1.06%, up 0.12 points year on year)
- Expansion of loan balances centered on the corporate segment (combined banks total loans up 6.9% annualized; corporate segment up 8.0% annualized)
- Increase in individual assets under custody driven by strong sales of investment trusts and insurance (group combined: ¥3,526.2 billion, up ¥572.6 billion year on year)
- Increase in interest and dividends on securities through restructuring of the securities portfolio (FFG consolidated: up ¥25,112 million year on year to ¥132,275 million)
- Expansion of corporate lending driven by sustained high levels of capital expenditure demand, centered on Kyushu's semiconductor-related industries
- Narrowing losses at Minna no Ginko (ordinary loss of ¥6,996 million, improved from ¥7,310 million in the prior fiscal year) alongside continued growth in loan and deposit balances
Risks
- Risk of margin compression due to rising funding costs (FFG consolidated interest on deposits up ¥25,556 million year on year to ¥48,257 million)
- Impact on the securities portfolio from valuation losses on Japanese government bonds and other bonds (FFG consolidated valuation difference on other securities of ¥-20,907 million; ¥-102,783 million after considering hedges) and rising interest rates
- Increase in credit costs (FFG consolidated: ¥18,235 million, up ¥12,133 million year on year) and expansion of provision for loan losses (FFG consolidated: ¥17,341 million, up ¥12,088 million year on year)
- Response to increased risk assets amid a decline in the capital adequacy ratio (FFG consolidated: 11.42%, down 0.95 points year on year)
- Long-term decline in loan demand due to future population decline in Kyushu, the group's core operating base
- Impact on the Kyushu regional economy (semiconductor and automotive-related industries) from a global economic slowdown driven by U.S. tariff policy and geopolitical risks
Last updated: June 19, 2026