ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

Japan megabanks seen taking 300bn yen hit from subzero rates

The three Japanese megabanks will likely see profits plummet by roughly 300 billion yen under the Bank of Japan's negative rate policy.

TOKYO -- The Bank of Japan's negative-rate policy will squeeze profits at the three Japanese megabanks by at least 300 billion yen ($2.96 billion) or so in the current fiscal year ending next March, government estimates show.

A survey by the Financial Services Agency focused on how negative interest rates impact interest income, derivatives trading, and such retail transactions as sales of asset management products at the three megabanks. Mitsubishi UFJ Financial Group's profit will fall by 155 billion yen, Sumitomo Mitsui Financial Group will lose between 75 billion yen and 76 billion yen in black ink, and Mizuho Financial Group's profit will retreat by 61 billion yen, the results showed. Narrower interest rate spreads are the chief culprit.

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