Japan’s third-largest lender lifted its annual net profit outlook to 1.40 trillion yen as higher lending income, strong markets revenue and wider spreads supported earnings.
Mizuho Financial Group reported a 46% rise in first-quarter net profit and raised its earnings forecast for the fiscal year ending March 2027, underscoring how Japan’s large banks are benefiting from higher domestic interest rates and stronger market activity. Net profit for the April-June quarter rose to 422.9 billion yen ($2.6 billion), marking a record first quarter for the third straight year, while ordinary revenue increased 18.3% to 2.52 trillion yen and ordinary profit jumped 62.5% to 598.9 billion yen. The bank lifted its full-year net profit forecast to 1.4 trillion yen from 1.3 trillion yen, slightly above the 1.39 trillion yen analyst consensus compiled by IBES. Earnings were supported by a sharp increase in lending income, a stronger domestic deposit-loan spread and a surge in Global Markets Company profit. Mizuho also expanded its share buyback plan to 200 billion yen in total and said all repurchased shares will be canceled, while keeping its annual dividend forecast at 150 yen per share. The results highlight how the Bank of Japan’s rate hikes are improving megabank profitability, though investors will be watching whether further rate increases, wider lending spreads and sustained markets and fee-income growth can support the full-year target.