Mizuho posts 45% jump in Q1 profit

[TOKYO] Japan’s Mizuho Financial Group reported a 45 per cent rise in first-quarter profit on Thursday (Jul 30), a sign that loan demand has stayed strong despite volatile global energy markets and supply chain disruptions caused by war in the Middle East.

Japan’s third-largest banking group also raised its annual profit forecast to 1.4 trillion yen (US$8.56 billion) – which would be a record – for the year ending March 2027.

Japanese banks’ profitability has surged in recent years as the end of decades of deflation spurs companies to take out loans to fund growth investments, capital expenditure and mergers and acquisitions.

Banks have also benefited from higher spreads between deposits and loans as the Bank of Japan (BOJ) has raised interest rates in response to inflation.

Net profit for the April-June period stood at 422.9 billion yen, versus 290.5 billion yen in the year-earlier period.

Mizuho’s domestic loan and deposit rate margin in the first quarter rose to 1.26 per cent, up from 1.1 per cent in the year ended March 2026.

SEE ALSO

Mizuho plans more Singapore hiring to power next phase of Asia growth

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

The results were also lifted by higher fee revenues, for instance from investment banking, with non-interest income growing about 20 per cent over the first quarter last year, to reach 376.8 billion yen.

The group also doubled the size of its share buyback programme to 200 billion yen.

The BOJ is set to keep interest rates steady at 1 per cent at a monetary policy meeting on Friday, but analysts polled by Reuters expect a hike to 1.25 per cent by the end of December and possibly as soon as October. REUTERS