ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintIcon Twitter
Finance

Japan's top banks suffer 1st combined income drop in three years

Lower profitability hits bottom lines at Mitsubishi UFJ, Sumitomo and Mizuho

Squeezed by thin interest rate spreads, Japan's megabanks plan to cut more costs and expand their use of information technology.

TOKYO -- The combined consolidated net profit at Japan's top-three banking groups has likely decreased by about 10% to slightly above 1.3 trillion yen ($11.9 billion) for the fiscal first half through September, the first such year on year decline in three years.

During the period, lending by Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group remained solid, but the megabanks reeled from narrow net interest rate spreads amid Japan's ultra low interest rate environment.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more