Two of Japan’s mega banks post larger-than-expected profits
(19 May 2015 – Japan) Both Mitsubishi UFJ and Mizuho Financial Group reported annual profits that surpassed expectations.
Mitsubishi UFJ said it plans to buy back more shares expecting to spend ¥100 billion (A$1045 million) in its second buyback in the past year.
The bank’s annual profit surpassed the ¥1 trillion mark for the first time prompting the Japanese lender to buy back stock.
Net income for the year increased 5 percent to a record ¥1.03 trillion for the year ended 31 March, exceeding its ¥950 billion target with the help of interest income on overseas lending.
At a briefing on 15 May following the release of the result, Mitsubishi UFJ president Nobuyuki Hirano said the company will continue to enhance returns to shareholders, maintain an ample capital base and use capital to boost revenue.
Meanwhile Mizuho’s net income decline 11 percent to ¥611.9 billion for the year ended March, but was still higher than the company’s forecast of ¥550 billion; analysts had forecast ¥580 billion.
Late 2014 Mizuho also bought back shares for ¥100 billion.
Mizuho said it intends to raise dividends and return profits to shareholders, something Japanese Prime Minister Shinzo Abe has urged companies to do.
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