Japan's mega banks likely to flag tough year as negative rates depress loan income

Tokyo

JAPAN'S three biggest banks are likely to flag lacklustre earnings for the current business year when they release forecasts this month, with loan income depressed by an economic stimulus policy that charges lenders to store money at the central bank.

Mitsubishi UFJ Financial Group Inc (MUFG), Mizuho Financial Group Inc and Sumitomo Mitsui Financial Group Inc (SMFG) have booked mixed earnings in recent years, with bumper stock gains offsetting weak core domestic lending.