Japan Banks on Track for Profit Goals Despite Bad-Loan Setback
- Nation’s biggest banks are bracing for pandemic to sour debts
- MUFG, Mizuho are ahead of profit targets after first quarter
Pedestrians wearing protective masks walk past signage for Resona Bank Ltd., from left, MUFG Bank Ltd., Mizuho Bank Ltd. and Sumitomo Mitsui Banking Corp. in Tokyo, on May 13.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
It’s early days, but Japan’s biggest banks are broadly on course to meet their modest profit goals this fiscal year after bad-loan costs remained within their expectations in the first quarter.
Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. all saw quarterly profit decline after increasing provisions for soured debts during Japan’s pandemic-fueled recession. Their net income totaled 392 billion yen ($3.7 billion) in the three months ended June 30, representing 31% of the banks’ combined full-year target.