TOKYO: Mitsubishi UFJ, Japan’s biggest bank, and Mizuho Financial Group yesterday reported double-digit tumbles in first-half net profit, due partly to declines in their stock holdings.
Mitsubishi saw its profit in the six months to September dive 58 percent to 290.4 billion yen ($3.6 billion), compared to 696.09 billion in the same period last year.
Revenue in the period fell 11.7 percent from a year earlier to 2.35 trillion yen, but the megabank kept a 670 billion yen full-year profit forecast unchanged.
Because Japanese banks have traditionally held big stakes in their affiliates and clients to cement ties, they are vulnerable to stock market declines, which could force them to book valuation losses on their holdings.
Still, major banks continued to post gains from bond-trading activities, which have been a key contributor to profits in recent years.
A big chunk of Mitsubishi UFJ’s year-earlier profits rise was due to its switching preferred shares in Morgan Stanley to common shares.
Mitsubishi owns a piece of Morgan Stanley after throwing a $9.0 billion lifeline to the troubled Wall Street giant in 2008 during the financial crisis.
The Japanese bank said Wednesday that weak markets saw the value of its stock holdings tumble, but added that its exposure to debt-hit Europe was minimal, with no holdings of Greek or Irish government bonds.
“Exposures to Spain and Italy were mainly for infrastructure, such as electricity, gas and telecommunications,” Mitsubishi said in a statement.
“(There were) limited exposures to financial institutions,” it added.
Mizuho also pointed to shrinking stock holdings, saying its first-half net profit fell 27.6 percent year-on-year to 184.3 billion yen.
But the lender added that its operating profit rose 11.4 percent to 285.7 billion yen on sales of 1.4 trillion yen, 7.6 percent higher on-year.
It kept its net profit forecast for the fiscal year at 500.0 billion yen.
Rival Sumitomo Mitsui Financial Group, however, bucked the downward trend, with a 5.5 percent profit rise to 331 billion yen largely owing to the addition of a new subsidiary, as profits from domestic lending dipped.
Sumitomo, which also pointed to a drop in the value of its stock holdings, upped its annual net profit forecast by 4.1 percent to 540 billion yen.
The trio’s full-year earnings were on track to fall short of the nearly 2.0 trillion yen in combined profits they reported in the last fiscal year, the largest since the global financial crisis.
Japanese banks have been ramping up their overseas operations at a time when European financial institutions have been forced to scale back their businesses as markets fret about the eurozone’s fiscal woes.
Mitsubishi UFJ, which has a presence in the United States through its retail banking unit California-based Union Bank, agreed earlier this year to acquire Pacific Capital Bancorp for about $1.5 billion.
Japan’s biggest bank reports 58% profit tumble
Japan’s biggest bank reports 58% profit tumble
Qatar lists first green sukuk as Al Rayan raises $137m
RIYADH: Qatar Stock Exchange listed its first green sukuk after Al Rayan Bank raised 500 million Qatari riyals ($137 million), expanding the range of sustainable Islamic finance instruments in the market.
The three-year sukuk carries an annual profit rate of 4.25 percent and is listed on QSE’s debt market, according to Qatar News Agency. The issuance is the first green sukuk in Qatar’s financial market and the first by an entity registered with the Qatar Financial Centre to be locally listed, cleared and settled.
The listing reflects efforts to deepen Qatar’s debt market and broaden access to Shariah-compliant instruments aligned with environmental, social and governance standards as investor demand for sustainable assets grows globally.
Abdullah Mohammed Al-Ansari, CEO of QSE, said: “The listing of the first green sukuk in QSE’s history represents a significant milestone in the development of Qatar’s capital market. It reflects our commitment to expanding the range of sustainable, Shariah-compliant financing instruments and enhancing the depth and diversity of the debt market in line with global best practices.”
He added: “This achievement also underscores QSE’s role as an integrated platform capable of supporting innovative financing solutions that align with national development priorities and long-term sustainability goals.”
Al Rayan Bank CEO Fahad Abdullah Al-Khalifa said the issuance underscores the lender’s ambition to lead in ESG-linked Islamic finance while strengthening the domestic capital markets infrastructure.
“By offering the first green sukuk to be listed, cleared, and settled in Qatar, we are not only reinforcing our role as a forward-looking institution but also contributing to the development of the local capital markets infrastructure,” he added.
Al Rayan Bank said the issuance reflects its ambition to play a leading role in advancing Qatar’s sustainable finance ecosystem by aligning Islamic banking principles with financing structures designed to deliver long-term value.
The listing comes amid continued development of QSE’s debt market, which has recently introduced inaugural corporate bonds, Islamic sukuk and sustainable bonds.
The green sukuk provides investors with a tradable Shariah-compliant asset that combines financial returns with environmental objectives, supporting portfolio diversification while reinforcing sustainability standards in the local market.
