Makiko Yamazaki

TOKYO (Reuters), Japan’s most prominent banking organizations gave cautious forecasts Wednesday about the next months, as they prepare for potential risks from Omicron variants in COVID-19 and turbulence worldwide.

Mitsubishi UFJ (NYSE) Financial Group Inc maintained its year-end net profit outlook at 1.05 trillion yen ($9.16 Billion), despite a 40% increase in profit for its third quarter. This brings the total profit to 1.07 Tsh.

Refinitiv compared the annual forecast to the 1.08 trillion yen median of eleven analysts’ estimates.

“Overall credit cost are expected to fall within our expectations,” a spokesperson from MUFG said during a briefing.

He stated that “but given the chip shortages which affect supply chains and Omicron epidemic clouding the economic outlook”, he suggested that it was necessary to think about booking provisions in the future.

The release of cash reserves that were set aside for a possible flood of bad loans related to pandemics, which was a government subsidy kept many businesses afloat, led to banks’ earnings being inflated.

However, the impact of such moves was lessened in the third quarter.

Sumitomo Mitsui, the second-largest country bank (NYSE:), reported a net profit for its third quarter of 168.7 trillion yen. That’s up 33% from last year, due to increased credit costs, and provisioning for larger borrowers.

Mizuho Financial Group Inc’s net profit, which is the No. The net profit at Mizuho Finance Group Inc, the country’s No.

Sumitomo Mitsui, Mizuho and their profit forecasts for the full year were both unchanged

($1 = 114.6000 yen)