Mizuho books 14% rise in third-quarter profit, expands buyback programme (updated)

Mizuho Financial

02/02/2026 06:58

Adds details from earnings

By Anton Bridge

TOKYO, Feb 2 (Reuters) - Mizuho Financial Group 8411.T on Monday said its third-quarter net profit rose 14% from a year earlier and increased the size of its share repurchase plan, as Japan's banking sector reaps the benefits from rising interest rates and the end of deflation.

The firm said its profit rose 14% to 329.9 billion yen ($2.13 billion) from 289.2 billion yen a year earlier.

Mizuho, Japan's third-largest banking group, also increased the size of its share buyback programme to 300 billion yen from 200 billion yen.

In just three quarters, Mizuho recorded more than 90% of its annual profit target of 1.13 trillion yen, which would be a record. Last week, larger rival Sumitomo Mitsui Financial Group 8316.T booked a 12% increase in its quarterly profit.

Loan demand in Japan has surged as the return of inflation has encouraged companies to seek better returns on their capital; a number of companies have increased capital expenditures or engaged in mergers and acquisitions.

Mizuho had 59.7 trillion yen worth of loans in Japan at the end of December, up from 56.3 trillion yen at the end of March.

In addition, the Bank of Japan's interest rate hikes since March 2024 have lifted banks' lending margins, which had been squeezed during eight years of negative interest rates.

Mizuho's loan and deposit rate margin for loans in Japan stood at 1.08% for the first three quarters of this financial year, up from 0.92% for the year that ended in March 2025.

Last financial year, Mizuho generated 885 billion yen in net profit.

Japan's largest banking group, Mitsubishi UFJ Financial Group 8306.T will report results on Wednesday.

($1 = 154.7800 yen)

 (Reporting by Anton Bridge; Editing by Tom Hogue, Lincoln Feast and Thomas Derpinghaus)

 ((Anton.Bridge@thomsonreuters.com;))