Remaining two of Japan’s top three lenders also book strong Q3 performance
MITSUBISHI UFJ Financial Group and Mizuho Financial Group on Thursday (Feb 2), respectively Japan’s first and third-largest lenders, reported strong third-quarter profits in their core businesses, thanks to an economic rebound in Japan and solid loan demand abroad.
Economic activity in Japan recovered from a pandemic-driven slump, boosting business lending, while interest rate hikes by the US Federal Reserve helped to lift net interest income abroad. Provisions for credit losses also stayed low.
Mitsubishi UFJ’s net profit for the quarter ended Dec 31, 2022 fell 61.2 per cent from a year earlier. This was due to a one-off loss related to the US$8 billion sale of its US unit, MUFG Union Bank. Mitsubishi UFJ said this would be mostly offset by an accounting gain in the fourth quarter.
The nine-month net profit at Japan’s largest lender by assets was 1.1 trillion yen (S$11.6 billion), ahead of its full-year forecast of 1 trillion yen.
Over at Mizuho, its third-quarter net profit more than doubled from the same period last year, to 209.3 billion yen. A year ago, results at Japan’s third-largest lender were weighed down by loan-loss provisions for KKR & Co’s auto-parts supplier, Marelli Holdings.
On Monday, Japan’s second-largest bank, Sumitomo Mitsui Financial Group reported a 42.6 per cent year-on-year jump in its third-quarter net profit.
Despite the strong results, all three top lenders maintained their annual profit outlooks, citing recession fears in the US and uncertainties over the war in Ukraine. REUTERS
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