Profit for the October-December period came in at 289.2 billion yen (US $1.874 billion).

Mizuho Financial Group, Japan’s third-largest lender, booked a 28 per cent increase in quarterly net profit that has meant its nine-month figures now exceed forecasts for full-year income.

Japan’s banking sector is benefitting from higher interest rates as the country emerges from years of deflation. A jump in M&A activity and increased business investment following calls from authorities to improve corporate value have also kicked loan demand from companies into higher gear.

Profit for the October-December period came in at 289.2 billion yen (US $1.874 billion).

For the first nine months of the current financial year, it has made 855.4 billion yen, beating both an LSEG consensus estimate from analysts for the full year of 842 billion yen as well as its own annual target of 820 billion yen.

Mizuho, however, did not revise its annual forecasts higher, citing the prospect of future investment that could help it achieve its return on equity target over the medium term.

It did not elaborate on the future investment.

The Bank of Japan’s three interest rate hikes since March 2024 will add an estimated 105 billion yen to net interest income in the year to end March 2025, Mizuho said.

Mizuho also recorded higher non-interest income, particularly driven by fees booked in its Americas investment banking division.