9-T.-Yen Latent Share Profits Seen for Japan’s 5 Major Banks


Tokyo, April 1 (Jiji Press)--Combined latent profits on shares held by five major Japanese banking groups stood at around 9 trillion yen at the end of March, up 3.6 trillion yen from a year before, an estimate has shown.

The unrealized profits as of the end of fiscal 2020 were estimated Wednesday by Akira Takai, chief analyst at Daiwa Securities Co., based on market data including the TOPIX index of all stocks listed on the first section of the Tokyo Stock Exchange.

The increase reflects a robust rebound in stock prices after their plunge around the end of fiscal 2019, brought on by the spread of the novel coronavirus.

The huge latent profits will positively affect the financial health of the groups, including Mitsubishi UFJ Financial Group Inc. <8306>, by helping boost their capital adequacy ratios, according to Takai.

Takai said the groups will also benefit from gains as they reduce their shareholdings.

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Jiji Press