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# Sumitomo Mitsui and Mizuho raise annual profit forecasts to 1.9 trillion yen and 1.6 trillion yen
- URL: https://www.theglobalbanker.com/sumitomo-mitsui-and-mizuho-raise-annual-profit-forecasts-to-1-9-trillion-yen-and-1-6-trillion-yen/
- Published: 2026-11-13T14:16:14.000Z
- Updated: 2026-11-13T16:55:26.000Z
- Description: Mizuho doubled its buyback for the year to 400 billion yen, matching Sumitomo Mitsui, while Mitsubishi UFJ approved a repurchase of up to 200 billion yen.
- Author: TGB Editorial Team
- Tags: Banking News, Asia-Pacific, #newsroom, #needs-photo

[Sumitomo Mitsui Financial Group](https://www.theglobalbanker.com/rankings/) raised its forecast for annual earnings to 1.9 trillion yen from 1.7 trillion yen, citing strong corporate lending demand at home and wider margins from higher domestic interest rates, according to Rallies. Mizuho Financial Group lifted its annual profit forecast to 1.6 trillion yen from 1.4 trillion yen and doubled its share buyback programme for the financial year to 400 billion yen.

Both groups have now set their buyback programmes at 400 billion yen. Mitsubishi UFJ Financial Group's board approved a separate buyback of up to 200 billion yen, covering up to 70 million shares, or 0.62% of outstanding shares excluding treasury stock, Rallies reported.

## QUARTERLY PROFITS DIVERGE

Sumitomo Mitsui's net profit for July to September fell 10% from a year earlier to 501.8 billion yen. The year-earlier period included a 94 billion yen gain from selling its stake in Kotak Mahindra Bank.

Mizuho's net profit for the same quarter rose 19% to 473.6 billion yen. For the first half of its 2026 financial year, net income increased 29.9% to 896.5 billion yen and ordinary profit rose 47.3% to 1.252 trillion yen, Grafa reported.

Mizuho's net interest income rose to 771.28 billion yen from 652.68 billion yen a year earlier, and stronger fee and commission earnings, improved trading income and gains from equity holdings also helped. The group raised its annual dividend forecast to 200 yen per share from 150 yen, against 145 yen paid for the previous financial year.

## THREE MEGABANKS AT THE TOP OF THE SYSTEM

MUFG, Sumitomo Mitsui and Mizuho are all global systemically important banks, according to TGB's market profile of [Japan](https://www.theglobalbanker.com/market-japan/), with Japan Post Bank, Norinchukin, trust bank groups and Resona in the next tier. Domestically licensed banks held 1,506.0 trillion yen of assets at end-August 2026, and city banks accounted for about half at end-July 2026.

The regional tier comprised 97 banks at end-March 2026, many serving shrinking local economies, with 247 shinkin banks beneath them. Japanese lenders are posting record profits as the central bank raises interest rates, UA.News reported.

## DATA CENTRE LENDING UNDER WATCH

Sumitomo Mitsui chief executive Toru Nakashima said a slowdown in data centre investment could affect the Japanese and global economies and the bank's results over the next six months. He said the bank had tightened credit standards for data centre financing, including limiting lending to hyperscalers with high credit standing.

Mizuho chief executive Masahiro Kihara cited US restrictions on data centre construction as a tail risk that could slow projects and raise development costs.

## THE TGB VIEW

In TGB's 2026 table of the largest banks in Asia-Pacific, ranked by total assets, Mitsubishi UFJ is 5th with US$2,704.6bn, Sumitomo Mitsui 8th with US$2,058.0bn and Mizuho 9th with US$1,893.4bn. Mizuho has the thinnest capital of the three on those figures, with equity at 3.7% of assets against 4.8% at Sumitomo Mitsui and 5.2% at Mitsubishi UFJ, yet it is doubling its buyback after posting the highest return on equity of the three, 11.0%, in the year to March 2026\. The next marker is Mitsubishi UFJ's repurchase, which is due to run on the Tokyo Stock Exchange from 16 November 2026 to 29 January 2027.

*Related: [Japan's Sumitomo Mitsui Financial Group Q1 FY2026 profit jumps 33% on loan demand and rate moves](https://www.theglobalbanker.com/smfg-q1-fy2026-profit-up-33-percent-loan-demand-rate-moves/)*