Public Administration News
Share
 |
Japan: Top 3 Banks' April-Sept Net Profits Expected to Total Y1 Tril Yen |
| Source: |
japantoday.com |
| Source Date: |
Wednesday, October 27, 2010 |
| Focus: |
Electronic and Mobile Government
|
| Country: |
Japan |
| Created: |
Nov 01, 2010 |
|
Japan’s top three banks are expected to report a combined group net profit of around 1 trillion yen for the April to September first half of fiscal 2010, up about threefold over a year earlier and comparable with the level four years ago, banking industry sources said Tuesday.
Mitsubishi UFJ Financial Group Inc is estimated to have booked a profit of 300 billion yen in the six-month period, up from an earlier projected 170 billion yen, while Sumitomo Mitsui Financial Group Inc is likely to announce an upward revision to 400 billion yen later this week, the sources said.
The figure for Mizuho Financial Group Inc is estimated at 300 billion yen, up from its earlier forecast of 180 billion yen.
The projected total of net profits at the three megabanks is the largest since 1.14 trillion yen they logged in the first half of fiscal 2006 before the global financial crisis began.
The three banks increased profits in the fiscal first half on strong capital gains from trading in Japanese government bonds and other securities. In particular, higher government bond prices, symbolized by the first fall below 1% in the yield on the benchmark 10-year bond in seven years in August, contributed to the gains.
In addition, a drop in the cost of disposing of bad loans due to a 15% decrease in corporate bankruptcies helped boost the banks’ profit.
But uncertainties loom over the banks’ earnings down the road in light of shrinking profit margins caused by low lending rates amid weak demand for loans as well as the yen’s steep appreciation, unfavorable overseas economic conditions and ailing businesses at nonbank financial units especially after the collapse of consumer loan firm Takefuji Corp in September.
|
|
|
|
|
|
 Tag This |
Japan: Top 3 Banks' April-Sept Net Profits Expected to Total Y1 Tril Yen Japan’s top three banks are expected to report a combined group net profit of around 1 trillion yen for the April to September first half of fiscal 2010 up about threefold over a year earlier and comparable with the level four years ago banking industry sources said Tuesday
 Tell A Friend |
|
 del.icio.us digg this Slashdot |
| Rate: |
0 ratings
|
Views: |
179 |
| Comments: |
0 |
Favorited: |
0 |
Bookmarked: |
0 |
Tagged: |
0 |
|
|
|
|