All three major banks in Japan are expected to hit record highs and the end of the negative interest rate era will boost performance

Mitsubishi UFJ Financial Group, the largest bank in Japan, is expected to reach 1.5 trillion yen in net profit, up 0.7% from the previous fiscal year. Sumitomo Mitsui Financial Group expects a 10% increase of 1.60 trillion yen, and Mizuho anticipates a 10.5% increase of 750 billion yen.

Sumitomo Mitsui Financial Group's net profit for the fourth quarter of the fiscal year ending March 31 more than tripled to 170 billion yen. Strong demand for loans due to an increase in corporate customers contributed to earnings. Mizuho's net profit for the fourth quarter more than tripled to 36.7 billion yen.

Mr. Nakajima, Chief Executive Officer (CEO) of Sumitomo Mitsui Financial Group, stated in a news release that “the overall situation is favorable for banking operations.”

Due to the end of the Bank of Japan's negative interest rate policy, the net interest income of the Sumitomo Mitsui Financial Group increased by 40 billion yen, and this income will further increase by 40 billion yen for every 10 basis points increase in policy interest rates. Mizuho's profit increased by 45 billion yen due to the end of the negative interest rate policy.

Mitsubishi UFJ Financial Group and Sumitomo Mitsui Financial Group are both planning a share buyback of approximately 100 billion yen. Sumitomo Mitsui Financial Group also plans to increase the dividend per share by 60 yen to 330 yen.

Mizuho Kihara Masahiro, Chief Executive Officer (CEO), stated that Mizuho will not carry out share buybacks until sufficient capital is prepared to invest in the company's growth strategy.