Japanese Megabanks Boost Profit Forecasts Amid Rising Interest Rates

Mitsubishi UFJ and Mizuho Financial Groups report significant profit increases following a July interest rate hike by the Bank of Japan.

Mitsubishi UFJ Financial Group raised its annual net profit forecast to a record 1.75 trillion yen after a 90% increase in Q2 profits.
Mizuho Financial Group reported a 62% rise in second-quarter net profit, lifting its full-year profit guidance to 820 billion yen.
The Bank of Japan's policy rate hike to 0.25% in July has improved lending margins for Japanese banks.
Mizuho announced a rare share buyback, repurchasing 50 million shares worth 100 billion yen, and increased its annual dividend forecast.
Japanese banks have benefited from the end of seven years of negative interest rates, which concluded in March.