Companies

Japan’s 3 Megabanks Hit ¥3 Trillion in Combined Annual Net Profits

Yomiuri Shimbun file photo
Mega Banks in Tokyo

Jiji Press

11:24 JST, May 17, 2024

TOKYO (Jiji Press) — The combined consolidated net profits of Japan’s three megabanks in fiscal 2023 exceeded ¥3 trillion for the first time since the birth of the current structure of Japan’s financial industry led by the three groups in 2005.

In the year that ended in March 2024, the combined net profits of Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. surged 26.4% from the previous year to ¥3,132.7 billion.

Profits were boosted by strong demand for funding both within and outside of Japan and a rise in loan margins in overseas operations aided by rising U.S. interest rates.

Mitsubishi UFJ and Sumitomo Mitsui posted record net profits, while Mizuho’s net profit was the second highest in its history.

Mitsubishi UFJ Group CEO Hironori Kamezawa told a press conference on Wednesday that the group’s core business profits were boosted significantly by an increase in its earning capacity, especially in client services. In fiscal 2023, the combined net profits of the three megabanks plus two other banking groups — Sumitomo Mitsui Trust Holdings Inc. and Resona Holdings Inc. — climbed 19.1% to ¥3,370.8 billion.