Profits down for Japan banks but Mizuho back to black
TOKYO, Nov 12 (Reuters) – Mitsubishi UFJ Financial Group
<8306.T> and Sumitomo Mitsui Financial Group <8316.T>, two of
Japan’s biggest banks, are likely to report 15 percent profit
declines for the July-September quarter, as weakness in the
world’s second-largest economy continues to sap lending.
Bucking the trend will be rival Mizuho Financial Group
<8411.T>, the country’s second-largest bank by assets, which is
expected to book its first profit in five quarters, aided by
lower bad loan costs and an improvement in its massive equity
portfolio.
Sumitomo Trust, Chuo Mitsui say to merge
TOKYO, Nov 6 (Reuters) – Sumitomo Trust and Banking Co Ltd
<8403.T> and Chuo Mitsui Trust Holdings Inc <8309.T> said they
plan to merge, creating Japan’s largest trust bank with a scale
to better compete in a crowded asset management industry.
Sumitomo Trust, Japan’s fifth-largest bank, and sixth-ranked
Chuo Mitsui said they planned to exchange shares on April 1,
2011, and form a holding company. The merger will likely be
completed by April 2012, with the bank to be called Sumitomo
Mitsui Trust Bank, the two firms said in a release.
Japan regulator suspends BNP Paribas unit 2 weeks
TOKYO, Oct 23 (Reuters) – Japan’s financial regulator
ordered a unit of French bank BNP Paribas <BNPP.PA> to halt some
of its business for two weeks as punishment for stock price
fixing and providing inaccurate information about a bond deal.
BNP Paribas Securities (Japan) is to suspend all business at
its equities and commodities derivatives division for the first
two weeks of November, the Financial Services Agency said on
Friday, the second time in a year the regulator has punished the
bank.
Japan banks to bear brunt of new capital rules in Asia
TOKYO (Reuters) – After raising $54 billion of equity this year to ride out the financial crisis, banks in Asia are likely to tap markets for billions more as the G20 moves toward tightening capital requirements for global lenders.
Although the fundraising could be overwhelmingly led by Japanese banks, which have among the region’s weakest capital levels, analysts say lenders in Australia and India may also need to raise more equity.
Investing Japan, as Japan invests offshore
Even in the best of times, Japan has never been a cakewalk for foreign investors. But in the wake of the global credit crisis, the world’s second-largest economy can be downright baffling.The recession has wiped out overseas demand for electronics and automobiles and sent a rush of mid-sized firms into bankruptcy.Activist investors are increasingly on the retreat, citing corporate governance that some say is among the worst in the developed world. But even amid such a dour backdrop, there are still plenty of bright spots.Most major Japanese companies have avoided massive losses on toxic assets. Faced with a shrinking market at home, those cash-rich firms are increasingly looking to move abroad. Outbound acquisitions hit a record of about $70 billion last year, and Tokyo firms are making aggressive moves into fast-growing Asia markets.Bolstered by overseas investments, leading financial firms such as Mitsubishi UFJ and Sumitomo Mitsui are looking to become global players.For the next two day, the Reuters Japan Investment Summit will focus on these and other issues facing one of the world’s most puzzling markets.Through interviews with some of Japan’s most important influential executives, the Summit generate exclusive stories and investable insights.
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