Mizuho reports 14% rise in Q3 profit, expands buyback programme

Published Mon, Feb 2, 2026 · 05:51 PM

[TOKYO] Mizuho Financial Group said on Monday (Feb 2) its third-quarter net profit rose by 14 per cent from the year-ago period.

It has also increased the size of its share repurchase plan, as Japan’s banking sector reaps the benefits from rising interest rates and the end of deflation.

The company said its profit rose by 14 per cent to 329.9 billion yen (S$2.7 billion) from 289.2 billion yen a year earlier.

Mizuho, Japan’s third-largest banking group, increased the size of its share buyback programme from 200 billion yen to 300 billion yen.

In just three quarters, it booked more than 90 per cent of its annual profit target of 1.13 trillion yen, which would be a record.

Last week, larger rival Sumitomo Mitsui Financial Group reported a 12 per cent increase in its quarterly profit.

Loan demand in Japan has surged as the return of inflation encouraged companies to seek better returns on their capital.

A number of companies have increased capital expenditures, or engaged in mergers and acquisitions.

Mizuho had 59.7 trillion yen worth of loans in Japan at the end of December, up from 56.3 trillion yen at the end of March.

In addition, the Bank of Japan’s interest rate hikes since March 2024 have lifted banks’ lending margins, which had been squeezed during eight years of negative interest rates.

Mizuho’s loan and deposit rate margin for loans in Japan stood at 1.08 per cent for the first three quarters of this financial year, up from 0.92 per cent for the year that ended in March 2025.

Last financial year, Mizuho generated 885 billion yen in net profit.

Japan’s largest banking group, Mitsubishi UFJ Financial Group, will report results on Wednesday. REUTERS