The financial results of the three major financial groups for the period from April to December of last year were all sluggish due to the increasing demand for funds for domestic capital investment and improving interest margins on overseas loans. Final profit reached an all-time high.
The financial results for the period from April to December of last year announced by three major financial groups on the 5th show that
Mitsubishi UFJ Financial Group's final profit was 1,297.9 billion yen, approximately 3.7 times the same period of the previous year. This has increased significantly and is the highest ever for this period.
Furthermore,
Sumitomo Mitsui Financial Group's final profit increased by 3.5% to 792.8 billion yen,
and Mizuho Financial Group's final profit increased by 18.2%
to 642.3 billion yen, both of which were record highs for this period.
This is
due to increased demand for funds by domestic companies for capital investment and acquisitions aimed at digitalization and decarbonization, as well as improved interest
margins on loans overseas, such as in the United States, where interest rates have risen, resulting in a weaker yen. The main reason for this was that profits increased when converted into Japanese yen due to the weaker prices.
In the financial market, there is a growing view that the time is near for the Bank of Japan to raise interest rates, while there are speculations that the Federal Reserve, the central bank of the United States, will cut interest rates. The future focus will be on how this will affect the management of thriving financial groups.