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2024-06-02 06:04:31

The Japan News on Nostr: Japanese Megabank Groups Focusing on U.S. Businesses; Increasing Profit Through ...

Japanese Megabank Groups Focusing on U.S. Businesses; Increasing Profit Through Higher Interest Rate, Online Banking
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Japanese megabank groups Mitsubishi UFJ Financial Group, Inc., Sumitomo Mitsui Financial Group Inc. (SMBC), and Mizuho Financial Group, Inc. are focusing on their financial businesses in the United States to increase profits. The U.S. economy is uncertain, but the megabank groups are strengthening their U.S. operations. SMBC launched the digital Jenius Bank in the United States, offering savings deposit and loan services online. The bank plans to enter into ordinary deposit and credit card businesses as well. The consolidated net profits of the three megabank groups exceeded ¥3 trillion for the first time in the business year that ended in March, mainly thanks to good performance in their operations in the United States and other countries. The balance of outstanding loans at the three megabanks in the United States grew for the third consecutive year to ¥36.2 trillion in the same business year, about 1.6 times the ¥23.3 trillion amount in fiscal 2019. The interest rate profit margins on the three megabanks’ lending to large corporations are about 0.6% in Japan but top 1% overseas. The three megabanks’ good performances can be attributed to their efforts to redirect funds overseas while improving efficiency by consolidating branches in Japan. MUFJ raised its stake in U.S. Bancorp, a regional bank based in the Midwest, to 4.39%. Mizuho acquired U.S. investment bank Greenhill & Co. Mizuho aims to earn commissions by providing advice on mergers and acquisitions, among other operations, in the United States. Mizuho ranked 10th in the world last year in terms of investment banking fees. Mizuho President Masahiro Kihara said that the acquisition of Greenhill has achieved various synergistic effects and will be further strengthened over the next year.

#JapaneseMegabanks #UsBusinesses #InterestRates #OnlineBanking #ProfitGrowth

https://japannews.yomiuri.co.jp/business/companies/20240602-189599/
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