Monday, February 3, 2014

3 megabanks post higher profits

Japan's 3 megabanks have posted strong earnings gains for the first 3 quarters of this fiscal year. Higher stock prices were behind the surge in profits.

Mitsubishi UFJ Financial Group reported a net profit of some 7.7 billion dollars for the April-to-December period. Net profits climbed 47-and-a-half percent in yen terms from a year earlier.

Sumitomo Mitsui Financial Group earned 6.9 billion dollars, up 28 percent. Mizuho Financial Group's profits rose nearly 44 percent to about 5.5 billion dollars.

Sumitomo and Mizuho's profits were the highest since the 2008 global financial crisis.

The brisk results are attributed to an increase in the value of their share holdings and bigger profits from share sales.

Strong sales of stocks and investment trusts by their securities affiliates also helped.

The Bank of Tokyo-Mitsubishi UFJ and Mizuho Bank are considering increasing their employees' base salaries this spring.

The pay raises, if realized, will be the first in 19 years.