Interim settlement of local banks reduced by about 70%

Interim settlements from April to September for local banks nationwide have a final profit in about 70% of banks, as long-term low interest rates have made it difficult to raise profits by lending their main business. Decreased.

Compiling the interim financial results from April to September for 78 regional banks nationwide where Mitsubishi UFJ Morgan Stanley Securities is listed, the total profit is 555.1 billion yen. It increased by 15.6% compared to the year.

The main reason for the increase in profits was the increase in “unrealized gains” at 22 companies, or approximately 30%, of the US government bonds that rose.

On the other hand, 56 companies, about 70%, reduced profits. The reason for the decrease in profits is that it is difficult to raise profits by renting the main business at a prolonged low interest rate.

According to Mitsubishi UFJ Morgan Stanley Securities, “The profit environment of local banks is severe, and there is a concern that the performance of the second half will decline due to disasters such as a typhoon last month.”

The FSA demands measures to secure profits in the future for regional banks with harsh business environments, and there are movements such as cooperation between regional banks and partnerships with other industries. Attention is being paid to how local banks throughout the country will proceed in the future.