Japan's three megabanks to pay record 2 trillion yen in dividends
Japan's three megabanks — Mitsubishi UFJ, Sumitomo Mitsui and Mizuho — will collectively pay a record 2 trillion yen (about $13bn) in dividends for fiscal 2026, the first time the sector's payout has crossed that threshold. Record profits powered by rising rates and a softer regulatory stance on shareholder returns mark the end of decades of low yield in the sector.
The combined payout will be the highest since the 2007 peak when the three lenders' aggregate balance sheet briefly surpassed the global semiconductor sector. Mitsubishi UFJ will distribute 950bn yen on its own; Sumitomo Mitsui 620bn and Mizuho 430bn, with each bank also delivering double-digit per-share dividend growth.
The surge in profits flows from the Bank of Japan's exit from negative interest rates in early 2024 and its move to lift policy rates to 0.75% by mid-2026. Net interest margins have climbed to a 12-year high, while corporate-loan growth of about 4% annually has outpaced global peers across the same window.
Japan's Financial Services Agency (FSA) approved the higher shareholder-return ceiling while requiring banks to keep capital-adequacy ratios above 13%. The Tokyo Stock Exchange's banking index rose 2.4% on the news; foreign investors are expected to lift their sector weighting, while the yen-dollar rate stabilised around 158.
Read next
Memory crisis hits such extremes that 'even Apple can't be safe', CNBC reports
The AI buildout has triggered an unprecedented squeeze in global DRAM and NAND supply, with CNBC reporting that even Apple is losing the price leverage it long enjoyed. Goldman Sachs trimmed global smartphone shipment estimates this week citing higher memory costs. Analysts warn consumer device prices will rise into the holiday cycle.
Ambani's Jio Platforms files documents for $4.9 billion IPO, set to be India's biggest ever
Japan raids ice-cream giants over alleged price-fixing as record summer heat continues
Wall Street recalibrates Fed watching with two key charts in the Warsh era
Germany aligns with EU's tough China line, calls for 'Plaza Accord' talks on the yuan
