Key facts
- Japan's three megabanks are expected to pay over 2 trillion yen in dividends this fiscal year.
- This is the first time the combined dividends from these banks have reached this amount.
- The dividend increase is driven by higher lending rates after the Bank of Japan ended its negative interest rate policy.
- The megabanks reported a record combined net profit exceeding 5 trillion yen for the fiscal year ended March 2026.
- Share buybacks and a stock split were also announced by the banks.
Japan's three megabanks are poised to distribute a combined total exceeding 2 trillion yen ($12.4 billion) in dividends this fiscal year, an unprecedented figure. This milestone is largely attributed to the Bank of Japan's decision to end its negative interest rate policy, which has subsequently led to increased interest rates on loans.
The megabanks, including Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMFG), and Mizuho Financial Group, have reported a record combined net profit of over 5 trillion yen for the fiscal year ending March 2026. This represents a significant increase from previous years, with profits more than doubling in three fiscal years.
MUFG posted a net profit of ¥2.4272 trillion, SMFG reported ¥1.5829 trillion, and Mizuho recorded ¥1.2486 trillion. The average net interest margin for the three banks in the April-December 2025 period reached 1.04%, the highest in eleven years, with net interest income rising 17% year-on-year to a record ¥3.81 trillion.
Alongside these strong financial results, the banks have announced shareholder reward programs. SMFG plans share buybacks up to ¥180 billion and a 1-for-2 stock split, while MUFG and Mizuho will each conduct share buybacks up to ¥100 billion.