Japan's largest banks, including MUFG, SMFG, and Mizuho, reported record annual profits driven by higher lending margins and strong corporate demand. However, analysts predict growth will moderate due to rising credit costs, geopolitical risks, and easing global interest rates.
Tata Capital expects strong FY27 performance with robust loan book growth of 23-25% through FY28, driven by improving margins, operating efficiency, and declining credit costs below 1%. The company grew its loan book at around 28% in FY26 (excluding motor finance), with credit quality improving each quarter due to disciplined risk culture and GenAI adoption. The cost-to-income ratio improved by over 300 basis points, while housing finance now represents 30% of the total loan book.
