Japan’s three megabanks give mixed results, cautious outlook amid COVID uncertainty According to Reuters

© Reuters. FILE PHOTO: People walk past a branch of the bank Mitsubishi UFJ Financial Group of Tokyo-Mitsubishi UFJ (MUFG) in Tokyo, Japan, May 16, 2016. REUTERS / Thomas Peter

By Makiko Yamazaki

TOKYO (Reuters) – Japan’s top banking groups offered a cautious outlook on Wednesday for the coming months as they face risks related to the COVID-19 Omicron variant outbreak. and turmoil in the global market.

Leading lender Mitsubishi UFJ (NYSE: Financial Group Inc) kept its net profit outlook for the year to March at 1.05 trillion yen ($9.16 billion), despite third-quarter profit. of the company increased 40% from a year earlier, bringing 9 months to a total of 1.07 trillion yen.

The annual forecast compares with an average of 1.08 trillion yen out of 11 analyst estimates compiled by Refinitiv.

“Overall credit costs are likely to be within our expectations” for the full year, said a MUFG spokesperson.

“But given the chip shortages affecting the supply chain and the Omicron outbreak affecting the economic outlook, we will need to look at the possibilities of booking terms into the future,” he said. .

Banks’ earnings have surged over the past few quarters as they freed up cash from provisions made in response to a potential flood of pandemic-related bad loans as subsidies government grants keep many businesses afloat.

But the upside from such moves waned in the third quarter.

Sumitomo Mitsui (NYSE 🙂 Financial Group Inc, the country’s second-largest bank, reported third-quarter net profit of 168.7 billion yen, up 3% from a year earlier, driven by rising credit costs. up with provisions for some large borrowers.

Net profit at Mizuho Financial Group Inc, the country’s No. 3 lender, fell 33% to 93.0 billion yen in the three months to December.

Sumitomo Mitsui and Mizuho both kept their full-year profit forecasts unchanged.

(1 dollar = 114,6000 yen)

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