Latest news with #foreignbonds
CNA
5 days ago
- Business
- CNA
Japan's Norinchukin Bank swings to $393 million profit in first quarter
TOKYO :Japan's Norinchukin Bank booked a net profit of 58 billion yen ($393 million) for the April-June quarter, as its mass offloading of low-return foreign government bonds over the past year cut its foreign currency-denominated funding costs. The results compare to a net loss of 412 billion yen over the same period a year earlier. The bank had run up nearly 3 trillion yen of unrealised loss by 2023 on its portfolio of foreign government bonds as rising interest rates in the U.S. and Europe slashed their value. Realising this loss left the bank booking a net loss of 1.8 trillion yen for the year ended March 2025. Norinchukin retained its forecast of a net profit of 30 billion yen to 70 billion yen in this financial year. It has said it will use the proceeds from the bonds it sells to make new investments, including in Japanese government bonds, equities, real estate, private equity and infrastructure. Unlisted Norinchukin is the principal financial institution for Japan's farm, forestry and fishery cooperatives and generates returns primarily through securities investments rather than lending. It had built up enormous positions in higher-yielding foreign government bonds to eke out returns during the years of rock bottom interest rates in Japan but these unravelled as interest rates rose in the U.S. and Europe and stayed high. Norinchukin still has 1.22 trillion yen ($8.26 billion) of unrealised losses in its portfolio as of the end of June. ($1 = 147.5500 yen)
Bloomberg
5 days ago
- Business
- Bloomberg
Norinchukin Returns to Profit After Bond Investment Debacle
Norinchukin Bank swung back to profit last quarter as the Japanese firm began its long road to recovery from last year's massive losses on foreign bond investments. Net income totaled ¥58.3 billion ($395 million) in the three months ended June 30, compared with a loss of ¥412.7 billion a year earlier, the agricultural bank said in a presentation on Wednesday. It's aiming for profit of about ¥30 billion to ¥70 billion in the year ending March.
Reuters
5 days ago
- Business
- Reuters
Japan's Norinchukin Bank swings to $393 million profit in first quarter
TOKYO, Aug 6 (Reuters) - Japan's Norinchukin Bank ( booked a net profit of 58 billion yen ($393 million) for the April-June quarter, compared to a net loss of 412 billion yen over the same period a year earlier. The bank had run up nearly 3 trillion yen of unrealised loss by 2023 on its portfolio of foreign government bonds as rising interest rates in the U.S. and Europe slashed their value. Realising this loss left the bank booking a net loss of 1.8 trillion yen for the year ended March 2025. ($1 = 147.5500 yen)
Yahoo
20-06-2025
- Business
- Yahoo
Iyogin Holdings Eyes Return to JGBs After Nvidia, Treasury Gains
Iyogin Holdings plans to resume buying Japanese government bonds once 10-year yields rise to around 1.7%1.8%, CEO Kenji Miyoshi said, citing expectations that the Bank of Japan's policy rate will peak at 1.5%. Less than 10% of the bank's 1.8 trillion ($12 billion) portfolio is currently in JGBs, but that could rise to 50% if yields become attractive. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The regional lender posted record profits for a third year, fueled by gains from unhedged foreign bonds and a tenfold return on its stake in Nvidia (NVDA, Financials), acquired five years ago. Miyoshi said the bank sold part of the position to lock in gains. Iyogin is ready to trade JGBs electronicallyrare in Japan's bond marketand is open to hiring outside talent to boost risk awareness. While not pursuing mergers, Miyoshi said the bank aims to play a central role if consolidation reaches its home region. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
20-06-2025
- Business
- Yahoo
Iyogin Holdings Eyes Return to JGBs After Nvidia, Treasury Gains
Iyogin Holdings plans to resume buying Japanese government bonds once 10-year yields rise to around 1.7%1.8%, CEO Kenji Miyoshi said, citing expectations that the Bank of Japan's policy rate will peak at 1.5%. Less than 10% of the bank's 1.8 trillion ($12 billion) portfolio is currently in JGBs, but that could rise to 50% if yields become attractive. Warning! GuruFocus has detected 4 Warning Signs with NVDA. The regional lender posted record profits for a third year, fueled by gains from unhedged foreign bonds and a tenfold return on its stake in Nvidia (NVDA, Financials), acquired five years ago. Miyoshi said the bank sold part of the position to lock in gains. Iyogin is ready to trade JGBs electronicallyrare in Japan's bond marketand is open to hiring outside talent to boost risk awareness. While not pursuing mergers, Miyoshi said the bank aims to play a central role if consolidation reaches its home region. This article first appeared on GuruFocus. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
