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Financial Results of Japan's Banks for Fiscal 2012

July 26, 2013
Financial System and Bank Examination Department
Bank of Japan

Notice of correction (August 29, 2013)
Chart 19 and Chart 21 have been corrected. The current charts on this web site are the revised ones.

Summary

Net income for fiscal 2012 increased by around 30 percent at major banks and around 10 percent at regional banks relative to fiscal 2011, mainly because large gains on sales of bonds were recorded and tax-related expenses decreased.

However, net interest income on loans and securities holdings, which is the main profit source for banks, continued to decrease in the domestic business sector against the backdrop of a decline in the interest rate spreads. In this situation, operating profits from core business increased slightly at major banks due to increases in net non-interest income such as fees and commissions and net interest income in the international business sector, while regional banks, at which the weight of such income is low, experienced a decrease in operating profits from core business for the seventh consecutive year.

At major banks, credit costs arising from the disposal of nonperforming loans were more or less unchanged relative to fiscal 2011. At regional banks, credit costs rose reflecting an increase in special loan-loss provisions, but remained at a low level since the number and amount of corporate bankruptcies have recently been stable.

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