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Finance

Japan's megabanks expect double-digit profit declines

Business expansion drives hit wall at MUFG, SMFG and Mizuho

Japan's megabanks, long trapped by ultranarrow spreads on the loans they extend in Japan, are now getting walloped at their overseas ventures.

TOKYO -- Japan's megabanks expect double-digit profit declines for the current fiscal year, after reporting increased asset writedowns and loan loss provisions for the 12 months through March.

Sumitomo Mitsui Financial Group, the nation's second largest banking group, expects a 43% drop in net profit to 400 billion yen ($3.7 billion) for the year ending March 2021, after reporting a 3% drop in net profit for the prior year, as credit costs are expected to almost triple to 450 billion yen.

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