Japan’s megabanks saw 22.3% profit surge to ¥718.86 in 4Q14
Thanks to lower credit costs and growing overseas business.
Japan’s three biggest banks closed the year on a high note.
According to a report by SNL Financial, the profit of Japan's three biggest banks — Sumitomo Mitsui Financial Group Inc., Mizuho Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. — jumped 22.3% year over year in the quarter ended Dec. 31, 2014.
The banks posted combined fiscal third-quarter net income attributable to parents of ¥718.86 billion, compared to ¥587.61 billion in the year-earlier period.
Mitsubishi UFJ recorded the highest quarterly growth at 36.5%. Most of that growth came from noninterest income, which shot up by 36%; the major contributors were revenue from fee & commission and trading assets. The company's tangible equity and ROAA ratios for the third quarter were the highest in the group at 5.42% and 0.57%, respectively. The market also applauded the quarterly performance, as the company's stock rose by 5.16% the day after it announced results.