The 3 megabanks' interim results for the six months ended September 2026 showed combined net income reaching a record ¥3.5305 trillion. Lending rates rose against the backdrop of BOJ rate hikes, boosting bank earnings.
The 3 megabank groups released their interim results for the six months ended September 2026, reporting combined net income of ¥3.5305 trillion, up 21.1% year on year and a record high. Rising interest rates following BOJ rate hikes are believed to have widened each group's net interest spread.
Mitsubishi UFJ Financial Group (MUFG), the largest of the 3, and Mizuho Financial Group (Mizuho FG) both reported, or are expected to report, record profits and raised their full-year net income forecasts. SMFG's interim net income exceeded ¥1 trillion for the first time.
The BOJ raised its policy rate by 0.5 percentage points each in June and September, causing lending rates to rise at the 3 groups' core banks. This widened the spread between lending and deposit rates, making it a key source of bank earnings. Meanwhile, intensifying competition to attract deposits has emerged as a key factor shaping the outlook.
Demand for working capital from companies and lending related to M&A are reportedly solid, but challenges in attracting deposits remain, and future funding trends will be closely watched.