Japan’s Banking Giants Ride Rate Revival to Record Profits, but Global Risks Threaten Momentum - Tekedia

Japan’s biggest banks posted record annual profits as the Bank of Japan’s rate normalization improved lending margins and corporate borrowing demand.

Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho all benefited from higher net interest income after years of ultra-low rates.

Analysts say the boom may not last, citing higher credit costs, tougher deposit competition, and weaker global conditions.

Overseas exposure and geopolitical shocks, including the Middle East conflict and oil price swings, add to the downside risk.