Japan's Mizuho reports 8.2% rise in Q3 profit on strong lending business
TOKYO (Reuters) -Mizuho Financial Group Inc, Japan's third-largest lender by assets, reported on Friday an 8.2% increase in quarterly net profit, helped by brisk loan demand from companies and subdued loan-loss provisions at home.
Mizuho joined larger domestic rival Sumitomo Mitsui Financial Group (SMFG) in reporting solid third-quarter profits backed by strong lending businesses, as Japanese companies began to invest in growth opportunities.
Growing prospects of interest rate cuts by the U.S. Federal Reserve also helped lift Mizuho's profits from fixed-income trading.
The bank posted a profit of 226.57 billion yen ($1.54 billion) in the October-December period against 209.31 billion yen a year earlier.
That takes the nine-month total to 642 billion yen, exceeding its profit forecast of 640 billion yen for the full year ending in March. Yet Mizuho kept its annual outlook, citing uncertainties over the business environment.
Japan's top lender Mitsubishi UFJ Financial Group will report its quarterly results on Monday.
Japanese banks' exposure to the U.S. commercial property market came under scrutiny after midsize lender Aozora Bank flagged its first annual net loss in 15 years on massive loan-loss provisions, but analysts say the problems at Aozora are mostly unique.
Mizuho said the possibility of taking additional loan-loss provisions related to U.S. commercial property is very small.
($1 = 146.7100 yen)
(Reporting by Makiko Yamazaki; Editing by Jacqueline Wong, Kim Coghill and Tomasz Janowski)
