Japan Banks to Hit Profit Goals as Stimulus Curtails Bad Loans
- Credit costs are likely to stay within targets, analysts say
- MUFG, Mizuho and Sumitomo Mitsui report earnings this week
This article is for subscribers only.
Japan’s three biggest banks are likely to stay on course toward achieving their annual profit goals as bad-loan costs remain in check, analysts said ahead of fiscal second-quarter results due this week.
Massive government and central bank aid has spurred lending and kept companies afloat during the pandemic-fueled recession, reducing the need to ramp up provisions. Investment banking has been picking up, helping to alleviate the impact of rock-bottom interest rates that are squeezing lending profitability at home and abroad.