Japan-based Fukuoka Financial Group Inc.'s net income for the quarter ended June 30 surged 807.2% year over year, thanks primarily to gains totaling ¥117.43 billion on negative goodwill related to the group's acquisition of Eighteenth Bank Ltd.
The group said fiscal first-quarter net income attributable to owners increased to ¥128.67 billion from ¥14.18 billion in the prior-year period. Basic EPS for the quarter jumped to ¥676.84 from ¥82.57, according to the group's Aug. 7 earnings report.
Ordinary profit fell to ¥16.48 billion from ¥20.33 billion, while ordinary income increased to ¥68.48 billion from ¥60.58 billion.
The group's interest income grew to ¥50.36 billion from ¥44.24 billion. Fees and commissions inched up to ¥12.74 billion from ¥12.16 billion. Meanwhile, ordinary expenses swelled to approximately ¥52 billion from ¥40.25 billion.
Over at the Bank of Fukuoka Ltd. unit, nonconsolidated net income for the quarter fell to ¥11.47 billion from ¥13.16 billion in the year-ago period.
The bank's net interest income slipped to ¥28.38 billion from ¥28.71 billion. Net fees and commission also fell year over year, to ¥3.33 billion from ¥4.08 billion.
The bank's nonperforming loan ratio as of June 30 improved to 1.49% from 1.58% as of March 31 and 1.61% as of June 30, 2018.
As of Aug. 6, US$1 was equivalent to ¥106.34.