Japan’s biggest banks have unveiled plans to boost shareholder returns after posting record first-half profits, thanks in part to a cheaper yen.
Mitsubishi UFJ Financial Group announced a $2.6 billion share buyback program on Tuesday after fiscal second-quarter profit tripled. Sumitomo Mitsui Financial Group raised its full-year net income forecast and said it plans to spend as much as ¥150 billion ($989 million) repurchasing stock. A day earlier, Mizuho Financial Group boosted its annual dividend guidance along with its earnings target.
The results reflect the benefits of the banks’ overseas expansions, which have allowed them to generate earnings that have increased in yen terms once repatriated home. Japan’s currency has slid about 25% in the past two years against the dollar.