TOKYO Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group reported strong third-quarter profits in their core businesses on Thursday thanks to an economic rebound in Japan and solid loan demand abroad.
Economic activity in Japan recovered from a pandemic-driven slump, boosting business lending, while interest rate hikes by the U.S. Federal Reserve helped lift net interest income abroad. Provisions for credit losses stayed low.
In October-December, Mitsubishi UFJ, Japan's largest lender by assets, saw its net profit drop 61.2 per cent from a year ago because of another one-off loss related to the $8 billion sale of the U.S. unit MUFG Union Bank, which it said would be mostly offset by an accounting gain in the fourth quarter.
Mitsubishi UFJ's nine month net profit was 1.14 trillion yen $8.86 billion, ahead of the full-year profit forecast of 1 trillion yen.
Mizuho's third quarter net profit was more than doubled to 209.3 billion yen compared to the same period last year, when results at the country's No. Loan loss provisions for KKR Co's auto parts supplier Marelli Holdings Co weighed down the 3 lender.
On Monday, Japan's second largest bank, Sumitomo Mitsui Financial Group Inc, reported a 42.6 per cent jump in third-quarter net profit.
Despite the strong results, all three top lenders maintained their annual profit outlooks, citing recession fears in the United States and uncertainties over the war in Ukraine.