Japan’s Sumitomo Mitsui Financial Group reported a 54% increase in third-quarter net profit on Wednesday, buoyed by a boost in interest income.
The net profit rose to 410.8 billion yen ($2.65 billion) in the October-December period, from 266.4 billion yen a year earlier.
The results continue a bumper year for Japan’s second-largest lender by assets, which has has seen an uptick in interest income, thanks to the Bank of Japan’s interest rate hikes and a surge in Japanese corporate action triggered by the end of deflation.
Income from loans grew both in Japan and abroad, particularly from large corporations’ corporate actions and increased demand for working capital.
The BOJ’s two interest rate hikes in March and July last year will contribute 70 billion yen to the group’s bottom line in total this financial year, SMFG said, while last week’s hike to 0.5% from 0.25% will generate an extra 100 billion yen in net interest income annually, SMFG said.
SMFG maintained its profit forecast for the year through March 2025 at 1.16 trillion yen, having raised it from 1.06 trillion yen last November.
Reuters
