A healthy corporate financing demand is a good thing, but sustainability is the real test.

Gate io news. Fitch Ratings said that Japan’s three major banks recorded record annual profits in their latest financial reports, but analysts warned that rising credit costs and geopolitical risks could slow profit growth. Mitsubishi UFJ Financial Group’s net profit for the fiscal year ending March 2026 rose 30% year-on-year to 2.4 trillion yen, marking the third consecutive year of record highs. Sumitomo Mitsui Financial Group and Mizuho Financial Group also reported record annual profits. Kaori Nishizawa, Fitch’s banking industry director, said that higher yen interest rates improved loan spreads, supporting net interest income, and that healthy corporate financing demand and fee income are also increasing revenue. Even so, analysts noted that some of the recent performance beating expectations was due in part to one-off factors, and that banks face higher credit costs and deposit competition, making the sustainability of current profit growth challenging.