Japan’s three largest banking groups logged record net profits for the fiscal year ended March 31, 2026, fueled by higher interest rates and strong loan demand. [1, 2, 3]
Mitsubishi UFJ Financial Group (MUFG) posted a net profit of about ¥2.4 trillion (US$15.3 billion), a roughly 30% rise from the previous year. [1, 3] Mizuho Financial Group saw its net profit jump 41% to ¥1.25 trillion for the same period. [1, 3] Sumitomo Mitsui Financial Group (SMFG) also reported a 34% profit increase, though exact profit figures were not disclosed. [1]
Mizuho’s domestic loan balance rose 1.6% to ¥57.8 trillion by March 2026, with its loan-deposit margin increasing from 0.92% to 1.1%. [1] Mizuho CEO Masahiro Kihara said the group's exposure to private credit stood at ¥0.3 trillion. [1] SMFG held ¥1.2 trillion in private credit-related loans, but CEO Toru Nakashima said he had no great concerns over the exposure, noting the group mainly deals with high-quality funds. [1]
Geopolitical risks, including the conflict in Iran and uncertainties in the global private credit market, present challenges. However, the banks have not adjusted their optimistic profit forecasts for fiscal 2027. [1, 3]
The three banks expect profit growth next fiscal year, with MUFG projecting an 11% to 12.5% increase, Mizuho forecasting 4%, and SMFG estimating 7.4% gains. [1, 3] There is some discrepancy between sources on MUFG’s forecast, with one reporting 12.5% growth and another about 11%. [1, 3]
All three banks also announced share buyback programs for the current fiscal year. MUFG and Mizuho each plan ¥100 billion in buybacks, while SMFG announced a ¥180 billion buyback program. [1, 3]
SMFG’s Nakashima indicated the group will become more selective in its lending due to a slowdown in deposit growth. [3]
The banks will report their full first quarter results for fiscal 2027 later this year, providing a clearer view of how their forecasts align with evolving economic conditions.
