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On May 15 several major banks announced they would start paying corporate taxes. Mizuho Corporate Bank said it would start paying this year, while Mizuho Bank, Mitsui Sumitomo Bank and Resona Holdings will start next year. According to the Asahi Shimbun, it will be the first time in 15 years that Mitsui Sumitomo will pay any taxes. For Resona, a consolidation of Daiwa Bank, Kinki Osaka Bank, Nara Bank and, later, Asahi Bank, it’s the first time in 18 years.

The Tokyo-Mitsubishi UFJ financial group started paying corporate taxes last year. Despite the Lehman Brothers-triggered recession, all these banks have been in the black since at latest 2006. However, by law they can carry over cumulative losses from previous years on their books. All the banks suffered huge losses in the 1990s due to bad loans. At its worst point, Mizuho was in the hole by as much as ¥5 trillion; Mitsui Sumitomo ¥2.7 trillion. The three top banks’ total profits for fiscal 2012 is estimated to be ¥1.9 trillion, a 35 percent increase over 2011, even though they don’t lend money any more. All these banks received government bailouts and Resona was actually nationalized for a while. Of the total ¥3.1 trillion that was injected into the banking system by the government, ¥2.3 trillion has been paid back, and it’s assumed that the rest will be reimbursed earlier than originally planned.

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