Latest news with #Sumitomo Mitsui Financial Group
Japan Times
4 days ago
- Business
- Japan Times
Japan's 5 largest banking groups post 2.7% profit gains for April-June
The combined group net profits of Japan's five major banking groups in April-June increased 2.7% from a year earlier to ¥1.375 trillion ($9.34 billion), due partly to growth in income from their lending operations reflecting interest rate hikes by the Bank of Japan, according to their earnings reports released by Monday. Net profit grew 1.5% to ¥376.8 billion at Sumitomo Mitsui Financial Group, 0.4% to ¥290.5 billion at Mizuho Financial Group and 36.2% to ¥90.8 billion at Sumitomo Mitsui Trust Group. The three groups' April-June profits are the highest since they were established. Resona Holdings' net profit grew 27.3% to ¥70.5 billion in the first quarter of fiscal 2025. Meanwhile, Mitsubishi UFJ Financial Group saw its net profit decline 1.8% to ¥546 billion, due to a change in the accounting period at Bank of Ayudhya, a Thai subsidiary. For the full year to March 2026, Mizuho expects its group net profit will total ¥1.02 trillion, up from a previously forecast ¥940 billion and topping the ¥1 trillion threshold for the first time. Concerns about the impact of the high tariff measures of the administration of U.S. President Donald Trump, such as fundraising issues and the postponements of investment, have been limited at client companies, a Mitsubishi UFJ official indicated. The three megabank groups — Mitsubishi UFJ, Sumitomo Mitsui Financial and Mizuho — have estimated that the Trump tariffs could help reduce their fiscal 2025 profits by around ¥80 billion to ¥110 billion. But a Sumitomo Mitsui Financial official said, "The impact could possibly be smaller than forecast."
CNA
5 days ago
- Business
- CNA
Japan's MUFG books 1.8% fall in Q1 profit, maintains record full-year forecast
TOKYO :Mitsubishi UFJ Financial Group (MUFG) posted a 1.8 per cent fall in first-quarter net profit due to a change in the accounting period of a subsidiary in the same period a year prior, it said on Monday. Without the accounting change, net profit rose 2.2 per cent, as loan demand in Japan and abroad rode out market volatility over the quarter. The results round off a robust showing for Japan's three "megabanks", each of which grew profits in the first quarter despite market swings and fears of a global economic slowdown. MUFG remains on track to hit its record 2 trillion yen profit forecast for this financial year - a target set in May and that accounted for the wave of uncertainty triggered by the announcement of tariffs by U.S. president Donald Trump in April. Japan's largest banking group recorded a profit of 546 billion yen ($3.70 billion) in the April-June quarter, compared with 555.9 billion yen over the same period a year earlier. Persistent inflation in Japan after decades of deflation has triggered a wave of borrowing among Japanese firms looking to invest for growth, demand for which held up despite the uncertainty. Meanwhile the end of negative interest rates in March last year, followed by two hikes since, has finally pushed up lending margins in Japan's long-suffering banking sector. Last Thursday smaller rival Sumitomo Mitsui Financial Group also maintained its record earnings forecast of 1.3 trillion yen, while number three player Mizuho Financial Group hiked its forecast by 15 per cent to 1.02 trillion yen. ($1 = 147.6200 yen)
Japan Times
31-07-2025
- Business
- Japan Times
Mizuho and Sumitomo see strong results as Japan banks beat estimates
Mizuho Financial Group has raised its annual profit forecast and Sumitomo Mitsui Financial Group's earnings have exceeded expectations, as Japanese banks see tailwinds from rising interest rates and a clearer economic outlook. Tokyo-based Mizuho now expects net income to reach a record ¥1.02 trillion ($6.9 billion) in the year ending March 31, up from ¥940 billion projected earlier, it said Thursday. Sumitomo Mitsui's first-quarter profit reached about 29% of its full-year goal, which it left unchanged at ¥1.3 trillion. Japan's three biggest banks in May predicted another year of record profits, even as the nation's export-driven economy was at risk from U.S. tariff threats. Last week's clinching of a trade deal has been generally taken as a positive in the country as the lenders benefit from higher rates and a resurgent stock market. It's relatively rare for a Japanese bank to raise its profit target so early in the fiscal year. Mizuho said it did so due to "solid' first-quarter results and "expectations for future business upsides.' It now expects smaller bad-loan costs and bigger gains from the sale of stakes in client companies. Mizuho's net income rose 0.4% from a year earlier in the three months ended June 30 to ¥290.5 billion. Sumitomo Mitsui's profit increased 1.5% to ¥376.9 billion. Both exceeded analysts' estimates. Underlying businesses showed growth in the quarter, with both banks posting an increase in net interest income, or profits from lending. Japanese banks' core lending operations have benefited from higher rates following the Bank of Japan's exit from its massive monetary easing policy in March last year. The BOJ stood pat earlier Thursday, while raising its inflation outlook in a sign it may be closer to its next rate hike even as it assesses the impact of U.S. President Donald Trump's tariffs. Shares of banks rose sharply in a broader stock rally earlier this month after the U.S. announced its tariff deal with Japan. Mizuho has gained about 16% this year, while Sumitomo Mitsui is up 2.4%. Mitsubishi UFJ Financial Group, Japan's largest lender, is scheduled to announce results on Monday.
Bloomberg
31-07-2025
- Business
- Bloomberg
Mizuho Raises Profit Forecast as Japan Banks Beat Estimates
Mizuho Financial Group Inc. raised its annual profit forecast and Sumitomo Mitsui Financial Group Inc. 's earnings exceeded expectations, as Japanese banks see tailwinds from rising interest rates and a clearer economic outlook. Tokyo-based Mizuho now expects net income to reach a record ¥1.02 trillion ($6.9 billion) in the year ending March 31, up from ¥940 billion projected earlier, it said Thursday. Sumitomo Mitsui's first-quarter profit reached about 29% of its full-year goal, which it left unchanged at ¥1.3 trillion.
