TOKYO—Japan’s biggest lenders on Wednesday all sounded alarmed about the risk the Omicron variant could have on their earnings, reviving concerns that a resurgent pandemic could trigger more bad loans. It was a sobering assessment from Japan’s three top banks—some of the world’s biggest lenders by assets—and underscored how the latest coronavirus variant could put more downward pressure on an already fragile domestic economy. Top lender Mitsubishi UFJ Financial Group Inc. kept its full-year net profit outlook at 1.05 trillion yen ($9.16 billion), even though its third-quarter profit rose 40 percent from a year earlier, bringing the nine-month total to 1.07 trillion yen. The annual forecast compared with the 1.08 trillion yen average of 11 analysts’ estimates compiled by Refinitiv. “With chip shortages affecting supply chains and the Omicron outbreak clouding the economic outlook, we will need to consider possibilities of booking provisions in a forward-looking manner,” an MUFG spokesperson …
Japanese Banks Sound Caution for Earnings as Omicron Highlights Bad Loan Risks
February 2, 2022
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