1st-Half Net Profits Up 10.6 Pct at Top 5 Japan Banking Groups
Tokyo, Nov. 15 (Jiji Press)--Combined consolidated net profits at Japan's top five banking groups in April-September jumped 10.6 pct from a year before to 1,696.4 billion yen, up for the second straight year on a fiscal first-half basis.
All five groups--Mitsubishi UFJ Financial Group Inc. <8306>, Sumitomo Mitsui Financial Group Inc. <8316>, Mizuho Financial Group Inc. <8411>, Resona Holdings Inc. <8308> and Sumitomo Mitsui Trust Holdings Inc. <8309>--enjoyed growth in their net profits in the first half of fiscal 2018.
The brisk results partly reflected reversals of loan-loss reserves thanks to the recovery of earnings at major client companies, such as machinery maker Toshiba Corp. <6502> and electronics maker Sharp Corp. <6753>.
Meanwhile, the five groups' combined real net profits from core banking operations came to 1,117.8 billion yen, up only 0.2 pct. International operations and commission incomes were robust, but the gaps between interest rates on domestic lending and those on deposits remained slim on the back of the Bank of Japan's prolonged ultraeasy monetary policy.
Mitsubishi UFJ reported a group net profit of 650.7 billion yen, up 3.8 pct, thanks to the business improvements at Sharp and other client companies, as well as the robust performance of U.S. financial giant Morgan Stanley, a Mitsubishi UFJ affiliate.
[Copyright The Jiji Press, Ltd.]