Controlled Risk Appetite Still Key For Japan's Major Banks Amid Continued Pressure On Profitability, Article Says

TOKYO (S&P Global Ratings) May 28, 2018--The operating performance of Japan's five major banking groups in fiscal 2017 (ended March 31, 2018) generally met S&P Global Ratings' expectations. For fiscal 2018, our credit analysis of the banking groups will center on whether they can maintain a subdued risk appetite amid flagging profitability. Japan's five major banking groups are Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc., Sumitomo Mitsui Financial Group Inc., Resona Holdings Inc., and Sumitomo Mitsui Trust Holdings Inc. The banking groups' consolidated net operating profits before loan loss provisions dropped 9% year on year to ¥3.2 trillion in fiscal 2017. This was mainly because shrinking interest margins in yen caused net interest income to fall, and net

...TOKYO (S&P Global Ratings) May 28, 2018--The operating performance of Japan's five major banking groups in fiscal 2017 (ended March 31, 2018) generally met S&P Global Ratings' expectations. For fiscal 2018, our credit analysis of the banking groups will center on whether they can maintain a subdued risk appetite amid flagging profitability. Japan's five major banking groups are Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc., Sumitomo Mitsui Financial Group Inc., Resona Holdings Inc., and Sumitomo Mitsui Trust Holdings Inc. The banking groups' consolidated net operating profits before loan loss provisions dropped 9% year on year to Ñ3.2 trillion in fiscal 2017. This was mainly because shrinking interest margins in yen caused net interest income to fall, and net gains from bond holdings declined. On an aggregate basis for the five groups, consolidated pretax net profits rose 8% to Ñ3.8 trillion, thanks to increased net gains on stocks and reversal of credit costs. Net profits...

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