Japan’s megabanks ride higher on non-interest income

TOKYO - Aggregate earnings at Japan's three megabanks grew in the fiscal first quarter ended June 30, led by noninterest income gains. Sumitomo Mitsui Financial Group Inc., Mizuho Financial Group Inc. and Mitsubishi UFJ Financial Group Inc. collectively reported ¥703.65 billion in fiscal first-quarter net income, a 12.4% increase on-year.

Aggregate net non-interest income for the trio rose 21.6% on-year to ¥1.340 trillion for the period, while interest income grew 7.4% to ¥1.234 trillion. Mizuho Financial was the only megabank to  post a decline in its net interest income; however, it reported the highest growth in non-interest income during the period at 34.1%.
MUFG  attributed the increase in its net interest income to income from overseas loans, according to the company's fiscal first-quarter  investor presentation. The group's net interest income rose to ¥545.3 billion in the quarter, compared to ¥490.7 billion in the prior-year quarter.
The company added that increases in fees from securities-related businesses and profits from sales and trading businesses also contributed to the bank's profit growth.  www.snl.com (ATI).