70 Pct of Japan Regional Banks Enjoy Profit Growth in FY 2023

Economy

Tokyo, May 14 (Jiji Press)--About 70 pct of regional banks in Japan enjoyed profit growth in fiscal 2023 as their interest income rose on increased lending reflecting stronger demand for funds amid the economic recovery from the COVID-19 crisis.

As of Tuesday, a total of 73 publicly traded regional banks and banking groups have released earnings reports for the year ended in March. Of them, 51 companies reported profit growth, which was also attributed to higher capital gains from stock sales.

The 73 companies posted a combined net profit of about 973.9 billion yen, up 3.3 pct from the previous year.

Meanwhile, credit-related expenses expanded at more than half of a total of 91 regional banks, including those under banking groups, as they braced for possible bankruptcies among small businesses struggling with inflation and labor shortages.

Losses on bond investments due to rising Japanese and foreign interest rates also limited profit growth.

[Copyright The Jiji Press, Ltd.]

Jiji Press