Japan's three biggest banks are on pace to achieve their annual profit targets after first-quarter earnings jumped on higher fee income and equity investments.
Net income at Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. totaled ¥791.6 billion in the three months that ended on June 30, surging 63 percent from a year earlier, according to calculations based on their earnings statements released this week. That accounts for 43 percent of the lenders' combined ¥1.84 trillion fiscal year profit goal.
Prime Minister Shinzo Abe's economic stimulus policies have helped Japanese stocks become the best performers among major markets this year, spurring the megabanks' fee businesses such as investment trust sales. Lending income also picked up as demand for credit rose. Bond trading slumped as the banks sold government debt amid growing expectations for inflation.