Sept. 10 (Bloomberg) -- Mizuho Financial Group Inc. raised its domestic loan growth forecast to 4 trillion yen ($40 billion) over three years as the Tokyo Olympics and Prime Minister Shinzo Abe’s policies spur large companies to borrow.
Mizuho, which in February estimated as much as 3 trillion yen in loan growth by March 2016, added about 1 trillion yen to the forecast, Japan’s third-biggest bank by market value said in materials presented at an investor conference in Tokyo today.
It’s the first time that Mizuho has measured the benefit from so-called Abenomics on lending, which has begun to pick up after years of deflation, a shrinking population and economic stagnation hampered credit demand. About 70 percent of the bank’s clients are large public companies and the Tokyo Metropolitan Government is also a customer.
“Mizuho can benefit from the fact that it has the biggest portion of large corporates in its client base among the three megabanks,” said Yoshinobu Yamada, a Tokyo-based analyst at Deutsche Bank AG. “I expect they will easily achieve the lending target as Abenomics kicks in.”
Mizuho Chief Executive Officer Yasuhiro Sato spoke to Japanese and foreign institutional investors in Tokyo today. More than 1,500 equity investors, including 320 from the U.S., Asia and Europe, registered or the four-day event.
The Tokyo-based bank had 53.7 trillion yen in outstanding domestic loans as of March 31 and 54.6 trillion yen as of June 30.
To contact the editor responsible for this story: Chitra Somayaji at email@example.com