Japan Megabanks Post Record Profits and Upbeat Forecasts
Mitsubishi UFJ, Mizuho, and Sumitomo Mitsui all reported record annual net profits following three interest rate hikes by the central bank. The lenders announced combined share buybacks totaling 380 billion yen while projecting continued earnings growth despite global geopolitical risks.
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MITSUBISHI UFJ FINL-SPON ADR, MIZUHO FINANCIAL GROUP INC, and SUMITOMO MITSUI-SPONS ADR reported record annual profits. MUFG, the country's largest lender, generated 2.4 trillion yen ($15.3B) in net profit for the fiscal year ended March. Three interest rate hikes since March 2024 widened lending margins and fueled corporate loan demand. Sustained profit growth and 380 billion yen in combined buybacks signal a structural shift as Japan exits deflation.
