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Concordia Financial's fiscal-year profit falls YOY

Japan's Concordia Financial Group Ltd. posted a 47.5% year-over-year decline in profit for the fiscal year ended March 31, as the company recorded a significant extraordinary gain in the prior fiscal year.

The company said May 11 that profit attributable to owners of the parent fell to ¥66.41 billion, or ¥52.32 per share, from ¥126.66 billion, or ¥98.01 per share, in the prior-year period. The S&P Capital IQ consensus GAAP EPS estimate for the full year came in at ¥51.37.

Ordinary profit slightly inched up to ¥98.02 billion from ¥97.17 billion, though the company did not record an extraordinary gain in the year to March 31, compared to a ¥60.35 billion gain in the year ended March 2017.

Net interest income for the period grew to ¥189.84 billion from ¥172.26 billion, while net fees and commissions amounted to ¥53.20 billion, up from ¥49.12 billion. Net trading income for the year rose to ¥3.08 billion from ¥2.49 billion in the prior year.

The company also reported a sharp rise in credit costs to ¥7.81 billion for the year ended March 31, up from ¥277 million in the previous fiscal year.

Concordia Financial forecast its profit for the fiscal period ending Sept. 30 and March 31, 2019, at ¥35 billion and ¥70 billion, respectively.

The group declared a final dividend of ¥9.00, up from ¥7.50 a year earlier. Together with an interim dividend of ¥6.50, the group's total dividend for the full year is ¥15.50, up from ¥15 in the prior-year period.

At the end of March, Concordia Financial's preliminary total capital ratio clocked in at 12.97%, up from 11.52% a year earlier. Its Tier 1 and common equity Tier 1 ratios stood at 12.48% and 12.47%, respectively, up from 11.14% for both measures at the end of March 2017.

For the full year ended March 31, unit Bank of Yokohama Ltd.'s nonconsolidated net income for the period dropped year over year to ¥58.42 billion from ¥60.98 billion. The lender's ordinary profit slipped to ¥84.19 billion from ¥87.37 billion.

Meanwhile, Naoko Nemoto was appointed an outside director on Concordia Financial's board, and stepped down as outside director of Bank of Yokohama. Yuzo Takagi stepped down as an outside director from Concordia Financial's board.

Kyoko Okumiya was named an outside director of Bank of Yokohama, while Minoru Morio resigned from the bank's board.

At Concordia Financial unit Higashi-Nippon Bank Ltd., Masataka Ueda was appointed an outside director, while Ken Inoue will leave the board.

The board changes will take effect June 19.

As of May 10, US$1 was equivalent to ¥109.58.