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. Their shares have risen by around 20% since the Bank of Japan's surprise tweak to its bond yield controls in late December. That sparked expectations that the central bank could change course on its ultra-loose monetary policy. ($1 = 128.6100 yen) (Reporting by Makiko Yamazaki; Editing by Christian Schmollinger and Jamie Freed)
(Adds details, recent share moves)
By Makiko Yamazaki
TOKYO, Feb 2 (Reuters) - Mitsubishi UFJ Financial Group
Inc and Mizuho Financial Group on Thursday
reported strong third-quarter profits in their core businesses
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 higher interest rates
fuelled demand for loans in the United States from companies
shifting away from financing through bond markets. Provisions
for credit losses also stayed low.
Mitsubishi UFJ, Japan's largest lender by assets, saw its
October-December net profit drop 61.2% from a year earlier
because of another one-off loss related to the $8 billion sale
of U.S. unit MUFG Union Bank, which it said would be mostly
offset by an accounting gain in the fourth quarter.
Including the expected accounting gain, Mitsubishi UFJ's
nine-month net profit totalled 1.14 trillion yen ($8.86
billion), already ahead of its full-year profit forecast of 1
trillion yen.
Mizuho's third-quarter net profit more than doubled to 209.3
billion yen compared to the same period last year, when results
at the country's No. 3 lender were weighed down by loan loss
provisions for KKR & Co's auto parts supplier Marelli
Holdings Co.
Mizuho's nine-month net profit came to 543.3 billion yen,
also already ahead of its full-year forecast of 540 billion yen.
Japan's second-largest bank, Sumitomo Mitsui Financial Group
Inc , on Monday reported a 42.6% jump in third-quarter
net profit.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.