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Mizuho Financial Group reported a first-half profit of ¥689.9 billion, a 21.8% increase year-on-year, with ordinary income at ¥4.34 trillion, down 5.4%. Ordinary profits rose 13.7% to ¥849.6 billion, and EPS increased to ¥276.2. Comprehensive income grew 42.8% to ¥845.6 billion, driven by net interest income growth of ¥169.8 billion.
The trend change of the dollar retreat and the bull market in U.S. Treasuries indicates a shift in the narrative logic of the financial market. A research report from Mitsubishi UFJ Financial points out that due to the U.S. non-farm payroll data in July falling short of expectations, market expectations for the Federal Reserve to cut interest rates have significantly increased, with at least three rate cuts anticipated before the end of the year. Although subsequent economic data needs to be monitored, the rate cut trade has become the main theme of the market, replacing the previous narrative of economic optimism
Japan's three major banks (including Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho) plan to jointly issue a stablecoin, initially pegged to the yen, with a potential future launch of a dollar version. This move marks Japan's actual participation in the digital currency market and aims to provide efficient payment and settlement tools for corporate clients. Meanwhile, the fintech startup JPYC has obtained regulatory approval and plans to issue the first yen stablecoin in the fall
Japan's largest banks, Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group, have raised their annual profit forecasts to record highs and expanded share buyback programs following strong Q2 earnings. This growth is driven by rising interest rates and increased corporate activity. Despite these gains, bank executives caution about risks from U.S. inflation and potential AI bubbles. MUFG, SMFG, and Mizuho reported significant profit increases and announced substantial share buybacks, reflecting their strategic expansion beyond domestic lending.
Japanese issuers are expected to see the issuance scale of bonds denominated in US dollars and euros surpass USD 100 billion for the first time this year, driving the total issuance close to historic numbers. Multiple companies are focusing on entering the primary bond market, which is expected to become one of the busiest trading weeks in the global bond market. Driven by merger and acquisition activities, foreign currency capital expenditure demands, and investments in new technologies, the offshore bond issuance volume of Japanese companies has significantly increased. So far this year, a total of USD 93 billion has been issued, a 67% increase compared to the same period last year
