Japanese Major Banks' Profits Slipped In 1H FY2014; Rising Overseas Exposure Is Key For Credit Quality, Says S&P Report

TOKYO (Standard&Poor's) Nov. 21, 2014--Japan's five major banking groups saw their profits decline slightly in the first half of fiscal 2014 (ended Sept. 30, 2014). Changes in their earnings and financial structures, arising from a shift to overseas businesses, affected their results and remain a key factor for their creditworthiness, Standard&Poor's Ratings Services said in a Japanese-language report published today. The 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 consolidated net profits of the five rated major banking groups slipped 2% from the previous year to ¥1.6 trillion in the first half of fiscal 2014,

...TOKYO (Standard & Poor's) Nov. 21, 2014--Japan's five major banking groups saw their profits decline slightly in the first half of fiscal 2014 (ended Sept. 30, 2014). Changes in their earnings and financial structures, arising from a shift to overseas businesses, affected their results and remain a key factor for their creditworthiness, Standard & Poor's Ratings Services said in a Japanese-language report published today. The 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 consolidated net profits of the five rated major banking groups slipped 2% from the previous year to Ñ1.6 trillion in the first half of fiscal 2014, falling within our expectations. Their gross operating profits rose 3% year on year, mainly thanks to an increase in net interest income boosted by overseas lending growth and profits from bond trading. However, their consolidated...

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