Fukuoka Financial Group: F3/26 Results: Solidly In Line With Market Expectations

Research evidence excerpt

Fukuoka Financial Group: F3/26 Results: Solidly In Line With Market Expectations

Update

May 13, 2026 09:50 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MFukuoka Financial Group (8354) | Japan Mia Nagasaka

Equity Analyst

F3/26 Results: Solidly In Line Mia.Nagasaka@morganstanleymufg.com +81 3 6836-8406

Fukuoka Financial Group (8354.T, 8354 JT)

Banks | JapanWith Market Expectations

Stock Rating Equal-weight

Industry View Attractive

Price target ¥6,380

Reaction to earnings Shr price, close (May 13, 2026) ¥6,731

Mkt cap, curr, basic (bn) ¥1,286.6

Unchanged In-line Modest revision higher Avg daily trading value (bn) ¥4.0

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Key Takeaways

Core operations were solid. F3/27 guidance looks conservative.

The results announcement offered no surprises, and we expect a neutral reaction

in the stock for the near term.

F3/26 results overview: (1) Consolidated net profit was ¥85.4bn (+18.4% YoY).

Earnings increased due to higher domestic net interest income and recognition of

system external sales revenue. Bond-related gains & losses (including JGBs) were -

¥91.2bn (reflecting loss cutting), while equity-related gains were ¥78.1bn. (2) F3/27

NP guidance is ¥100.0bn (+17.1% YoY; our forecast ¥102.0bn). We understand that

the net interest income outlook includes factors from F3/26 that will non-recur,

such as gains on investment trust redemptions associated with portfolio rebalancing

and the loss of special interest on current account balances at the BOJ. Assumptions

in its plans also include a policy rate of 0.75%, credit costs of ¥11.0bn (down ¥1.4bn

YoY), and securities-related gains of ¥8.0bn (up ¥13.7bn YoY; consisting of ¥0.2bn