Megabanks post increased earnings during the 1st quarter.
Japan’s three megabanks saw high profit during the 1st quarter of this fiscal year (April-June), thanks to increased interest on lendings overseas. The net earning of Mitsubishi UFJ Financial Group grew by 15.5% to JPY 277.7 billion, that of Sumitomo Mitsui Financial Group grew by 16.1% to JPY 267.8 billion, and that of Mizuho Financial Group by 2.1% to JPY 158.0 billion. All three groups enjoyed growth in interest revenues on lending to Asia and Africa and in commission revenues on investment trust under Japan’s active stock market. The lending balance expanded marginally domestically, on the banck of increasing corporate capital investments, and the banks may enjoy further growth in lendings.
Major convenience stores hit record quarterly profits.
Three major convenience store chains saw record high pretax profit during the March-May quarter, with brisk new products sales and rebound of consumption after the April 2014 tax hike. Seven ＆ i Holdings’ pretax profit jumped 5% YoY to JPY 81.1 billion yen, according to earnings results released by the company. The company’s U.S. operations boomed, though falling retail prices on gasoline pulled down sales, contributing to a 2% drop in group operating revenue to JPY 1.44 trillion The company ultimately enjoyed a 7% jump in net profit to JPY 42.2 billion. Pretax profit at Lawson leapt 16% to JPY 19.1 billion. Sales jumped 20% YoY to JPY 140.2 billion, nudged upward by the company’s acquisition of high-end supermarket Seijo Ishii and the rising popularity of the products appealing to health-conscious consumers. Net profit dropped 15% to JPY 7.7 billion, due partly to an impairment loss on unprofitable stores. Product improvements at FamilyMart, including revamped packaging on the chain’s packed lunches, spurred business, with pretax profit rising 20% to JPY 11.5 billion and sales growing 12% to JPY 99.1 billion.
Japanese major automakers’ results for FYE March 2015.
The financial results of seven Japanese automakers for the fiscal year ended March 2015 are as per attached. Most of the figures are taken from the annual securities report, or Yuka Shoken Hokokusho, of each automaker.
The weak yen is forecast to push up profit of shipping companies for March 2016.
The ordinary profits of three major shipping companies ( Nippon Yusen, Mitsui O.S.K. Lines and K-Line ) for March 2016 are forecast to grow by total JPY 32 billion under the weakened yen since maritime transporation fare is denominated in US dollar. The decline in one yen against the US dollar pushes up ordinary profit of Nippon Yusen by JPY 1.4 billion. Since Yusen’s estimated exchange rate for this fiscal year is stands at 115 to the US dollar, and its profit may grow by JPY 14 billion under the current situation. Mitsui O.S.K. by JPY 12.6 billion and K Line by JPY 5.9 billion.
Major general trading companies have a gap in earnings.
The financial results of major Japanese general trading companies were released by May 8th. Three out of five recorded deteriorated net results - due to impairment losses on oil development project in US and coal mining projects in Australia, iron ore mining project in Brazil, etc. Sumitomo Corporation ended in a net loss of JPY 73.1 billion, Mitsui ＆ Co. saw a 12.5% decline to JPY 306.4 billion, and Marubeni JPY 105.6 billion (-49.9%). Mitsubishi and Marubeni improved results thanks to adequate earnings from non-resource businesses.