Boom in brokerage for Mizuho
15 May 2012 Tokyo
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Japanese bank Mizuho has beat out analyst estimates to foretell 500 billion yen ($6.3 billion) in net income for the year ending March 2013.
In a statement to the Tokyo Stock Exchange, Mizuho said net income would climb from the 484.5 billion yen recorded the prior year, compared to the 378 billion yen average estimate compiled by Bloomberg.
The optimistic projection is a result of a leap in lending after an approximate two year slump, and the merging of two brokerage businesses. On 15 May, Mizuho Â鶹´«Ã½ and Mizuho Investors Â鶹´«Ã½ signed a merger agreement, and plan to conduct the merge on 4 January 2013.
The bank predicts profit from its brokerage business after a net loss of about 95 billion yen in the year ended March, chief executive officer Yasuhiro Sato said at a news conference in Tokyo.
However, a tumbling interest rate means that profit to be made on loans is not vast, and Mizuho still has the lowest net interest margin of Japan’s three largest banks.
In a statement to the Tokyo Stock Exchange, Mizuho said net income would climb from the 484.5 billion yen recorded the prior year, compared to the 378 billion yen average estimate compiled by Bloomberg.
The optimistic projection is a result of a leap in lending after an approximate two year slump, and the merging of two brokerage businesses. On 15 May, Mizuho Â鶹´«Ã½ and Mizuho Investors Â鶹´«Ã½ signed a merger agreement, and plan to conduct the merge on 4 January 2013.
The bank predicts profit from its brokerage business after a net loss of about 95 billion yen in the year ended March, chief executive officer Yasuhiro Sato said at a news conference in Tokyo.
However, a tumbling interest rate means that profit to be made on loans is not vast, and Mizuho still has the lowest net interest margin of Japan’s three largest banks.
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