Jiji PressTOKYO (Jiji Press) — Five major Japanese banking groups’ combined net profits in fiscal 2017 that ended in March grew 6.8 percent from the previous year to ¥2,690.8 billion, up for the first time in four years, according to their full-year earnings results announced by Tuesday.
The Bank of Japan’s negative interest rate policy, introduced in 2016, continued to pressure major banks’ earnings. But they sold shareholdings in companies under mutual capital ownership, while improved financial conditions of their borrowers allowed them to reduce reserves for loan losses.
Mitsubishi UFJ Financial Group Inc. posted a group net profit of ¥989.6 billion, up 6.8 percent, followed by Sumitomo Mitsui Financial Group Inc., with a profit of ¥734.3 billion, up 3.9 percent, Resona Holdings Inc., with ¥236.2 billion, up 46.3 percent, and Sumitomo Mitsui Trust Holdings Inc. , with ¥153.9 billion, up 26.8 percent.
Only Mizuho Financial Group Inc. saw its net profit drop, by 4.4 percent to ¥576.5 billion.
Meanwhile, the five groups’ combined core business profits slumped 19.4 percent to ¥2,039.4 billion, due to the declining profitability of domestic lending operations.