As Mizuho Financial Group Inc.'s announced falling profits the Japanese bank offered a bleak assessment of its long-term outlook, confirming it will eliminate thousands of jobs to cut costs.
The nation's third-biggest lender will shed 19,000 positions — about a quarter of its workforce — in the next 10 years, it said in a statement, confirming recent media reports. Lending income declined in the fiscal second quarter, underscoring how negative interest rates are making it tougher for Japan's biggest banks to make money from doling out credit.
"Our expense ratio has risen significantly and this remains a major challenge, which is why we need fundamental structural reforms," Chief Executive Officer Yasuhiro Sato told reporters in Tokyo on Monday. "Growing the top line is difficult in this global competitive environment, so it's essential that we improve our productivity."