Japan Megabanks Set to Forecast Hefty Profits, Avoid Bond Losses

  • Net income in new fiscal year driven by pickup in business
  • Absence of losses from foreign bond holdings may boost profits

The Sumitomo Mitsui Financial Group headquarters building in Tokyo, Japan.

Photographer: Akio Kon/Bloomberg
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Japan’s top three banks are expected to forecast their highest profits in years, driven by a pickup in client activities and subdued bad loan costs.

Net income at Mitsubishi UFJ Financial Group Inc. may rise to 1.2 trillion yen ($8.8 billion) for the new fiscal year that started in April, according to an average estimate of more than 10 analysts polled by Bloomberg. That would be a record for Japan’s largest lender.