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.”
