BOJ Posts Over 15 T. Yen in Latent Profits on ETFs

Economy Politics

Tokyo, May 27 (Jiji Press)--The Bank of Japan’s latent profits on exchange-traded funds it held as of the end of March topped 15 trillion yen, according to the central bank’s financial statement for fiscal 2020 released Thursday.

The stock market’s upsurge since last spring pushed up the fiscal year-end latent profits to a record high.

The end-March balance of ETFs purchased by the central bank under its quantitative easing policy reached 35,879.6 billion yen.

The bank’s total asset holdings rewrote a record high for the ninth straight year at 714,556.6 billion yen, thanks chiefly to growth in lending to promote commercial financial institutions’ financial support for firms struggling in the coronavirus crisis.

Meanwhile, the BOJ saw its surplus, or net profit at ordinary companies, turn to fall, albeit marginally, to 1,219.1 billion yen, because an increase in the bank’s corporate tax payment more than offset rises in profits on foreign currency-denominated asset holdings amid the yen’s depreciation and in gains from ETF management.

[Copyright The Jiji Press, Ltd.]

Jiji Press