Japan’s Mizuho Q4 profit surges almost seven times

[TOKYO] Japan’s third-largest lender Mizuho Financial Group logged a 659 per cent jump in fourth-quarter profit on Friday (May 15).

Net profit for the January-to-March period came in at 228.7 billion yen (S$1.8 billion), compared with 30.1 billion yen in the year-ago period.

The company also booked its highest annual net profit of 1.25 trillion yen and set its profit forecast for the financial year ending March 2027 higher at 1.3 trillion.

The results showed the resilience of Japan’s banking sector, which weathered the announcement in 2025 of sweeping tariffs by US President Donald Trump, as well as the uncertainty that followed.

The sector has also enjoyed robust results, despite market volatility in 2026.

The end of deflation in Japan has proven lucrative for lenders, as companies look for growth opportunities, including mergers and acquisitions and capital expenditure, which boost loan demand.

The three interest-rate hikes by the Bank of Japan since March 2024 have also widened lending margins, filling the banks’ coffers further.

Mizuho’s domestic loan balance grew to 57.8 trillion yen at the end of March from 56.9 trillion in the year-ago period.

Its loan and deposit rate margin grew to 1.1 per cent for FY2025/26, compared with 0.92 per cent in the same period a year earlier.

SEE ALSO

Mizuho adds HSBC, JPMorgan, Deutsche Bank hires in wave

Mizuho reports 14% rise in Q3 profit, expands buyback programme

On Wednesday, larger rival Sumitomo Mitsui Financial Group (SMFG) also posted record annual profit and hiked its forecast for 2027 by 7.4 per cent, anticipating a 1.7 trillion yen net profit.

Mizuho announced a share buyback of 100 billion yen. On Wednesday, SMFG had revealed a 180 billion yen buyback. REUTERS