Tokyo: The combined consolidated net profits of five major Japanese banking groups in April-September surged 56.3 percent from a year before to 1,996 billion yen, their latest earnings reports have shown.
Their earnings were robust thanks to improved loan margins following the yen’s weakening and a rise in U.S. interest rates, as well as strong demand for funds in and outside Japan.
Of the five, three megabank groups–Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc.–each posted higher profits.
Mitsubishi UFJ’s net profit in the six-month period quadrupled to 927.2 billion yen, a record first-half profit. The year-on-year surge followed a huge valuation loss in the same period last year related to the sale of a U.S. subsidiary.
Mizuho Financial posted a net profit of 415.7 billion yen, up 24.4 percent, and Sumitomo Mitsui Financial booked a net profit of 526.4 billion yen, up 0.2 percent.
Meanwhile, Sumitomo Mitsui Trust Holdings Inc.’s net profit shrank 57.6 percent to 44.0 billion yen after it booked losses on reducing holdings of bear funds, or investment trusts held to prepare for possible market downturns.
Resona Holdings Inc. posted a net profit of 82.5 billion yen, down 0.2 percent.
The combined net core banking business profits of the five groups rose 15.8 percent to 1,775.4 billion yen.
“Our core banking business profit grew sharply, even excluding temporary factors,” Mitsubishi UFJ Group CEO Hironori Kamezawa told a press briefing Tuesday. “Our client division is doing well, and our earning power is steadily increasing.”
JIJI Press
