This article examines five fiscal years of financial results—from FY2022 through FY2026—for Japan’s three megabank groups: Mitsubishi UFJ Financial Group (MUFG), Sumitomo Mitsui Financial Group (SMFG), and Mizuho Financial Group (Mizuho), based on earnings releases (XBRL) published through TDnet. All figures in this article are either reported results from the same data set or ratios calculated from those figures.
For SMFG’s FY2025, some profit-and-loss breakdowns and balance-sheet details were not included in the supplied data. The relevant items are therefore shown as “n.a.” and have not been supplemented through estimation.
1. Overview: Net Income More Than Doubled in Four Years
For FY2026, the three groups combined reported Ordinary Revenue of ¥34.50 trillion, Ordinary Income of ¥7.29 trillion, and net income attributable to owners of the parent of ¥5.26 trillion. Compared with combined net income of ¥2.37 trillion in FY2022, net income increased 2.22-fold over four years. Total assets reached approximately ¥1,062 trillion, total deposits approximately ¥591 trillion, and total loans approximately ¥351 trillion.
Approximate ROE, calculated as net income divided by net assets, rose to around 10% at all three groups. In FY2022, all three were in the 5–6% range, indicating a clear shift in profitability.
2. Five-Year Trend for the Three Groups Combined
Item (¥ billion)
FY2022
FY2023
FY2024
FY2025
FY2026
Ordinary Revenue
14,149.9
21,201.8
29,988.2
32,835.0
34,497.0
Ordinary Income
3,138.0
2,971.2
4,508.0
5,556.9
7,286.5
Net income
2,367.8
2,477.7
3,132.5
3,926.2
5,258.7
FY2025 loans and deposits cannot be aggregated because SMFG’s figures were not included in the supplied data.
Ordinary Revenue expanded 2.44-fold from FY2022 to FY2026, equivalent to a CAGR of +25.0%. However, most of this increase resulted from higher Interest Income as interest rates rose. Interest Expense also increased sharply over the same period, meaning that Ordinary Revenue—a gross measure—can be a distorted gauge of a bank’s underlying strength. In fact, combined Ordinary Income rose 2.32-fold, from ¥3.14 trillion in FY2022 to ¥7.29 trillion in FY2026, broadly in line with the 2.44-fold increase in Ordinary Revenue.
Loans increased 22.8% from FY2022 to FY2026, while deposits increased 17.5%. Loan growth exceeded deposit growth, contributing to the improvement in the Loan-to-Deposit Ratio discussed below.
A bank’s Ordinary Revenue is equivalent to sales at a non-financial company, but represents the gross amount before deducting Interest Expense. During periods of rising interest rates, both asset yields and funding costs increase, inflating the figure on both sides. Net measures such as net interest income—Interest Income less Interest Expense—and Net Fees & Commissions Income should therefore be used alongside Ordinary Revenue when comparing revenue scale.
3. Ordinary Income Trend: More Than 20% Annualized Growth at All Three Groups
Mizuho stands out in terms of growth rates. Its Ordinary Income CAGR was +29.4%, while FY2026 net income rose 41.0% year on year—the highest among the three. However, the low starting point also contributed to these rates. Mizuho’s FY2022 Ordinary Income was 36% of MUFG’s and 54% of SMFG’s; in absolute terms, it remains third.
MUFG, by contrast, experienced a decline in Ordinary Income to ¥1.02 trillion in FY2023, down 33.6% from FY2022. Net income nevertheless reached ¥1.12 trillion, exceeding Ordinary Income, suggesting the impact of temporary factors at the ordinary-income level and of extraordinary items and tax expense. MUFG then delivered earnings growth for three consecutive years from FY2024, reaching ¥3.41 trillion in FY2026—the highest level among the three.
4. Revenue Structure: Net Interest Income and Fees as the Two Core Pillars
FY2026 revenue sources were divided into four categories.
Item (¥ billion)
Mizuho
SMFG
MUFG
Combined
Net interest income
1,377.0
2,719.6
3,006.0
7,102.6
Net Fees & Commissions Income
1,080.4
1,820.5
2,226.8
5,127.7
Trading Income*
898.8
Trading Income is shown before deducting Trading Expense. Trading Expense was not included in the supplied data, making comparison on a net basis difficult.
Fees accounted for more than 40% of the combined Net interest income and Net Fees & Commissions Income at all three groups. Mizuho had the highest ratio, at 44.0%, indicating relatively greater reliance on non-interest income. MUFG’s Trust Fees, at ¥163.1 billion, were significantly larger than those of the other groups, clearly reflecting the difference in group structure, including its trust-bank operations.
Over four years, the CAGR for Net Fees & Commissions Income was close to double digits at all three groups: +9.9% for Mizuho, +11.0% for SMFG, and +11.7% for MUFG. Net interest income growth varied more widely: +15.5% for SMFG, +10.1% for MUFG, and +8.5% for Mizuho.
Mizuho’s Trading Income was distinctive. It declined from ¥1,017.8 billion in FY2022 to ¥898.8 billion in FY2026, down 11.7%, and was also down 14.2% from ¥1,047.4 billion in FY2025. Mizuho was the only group with a large Trading Income contribution that subsequently contracted, meaning that growth in net interest income and fees effectively offset the decline.
5. Margin Analysis: SMFG Has the Widest Loan-Deposit Spread
A simplified yield calculation was made using period-end balances. Average balances were not included in the supplied data and were therefore replaced with period-end balances. The figures are on a consolidated basis and include overseas assets and foreign-currency transactions.
SMFG had the widest spread, at 2.48 points, while Mizuho had the narrowest, at 1.78 points. This 0.70-point difference appears to be the main reason that SMFG’s net interest income was 1.98 times Mizuho’s, despite SMFG’s loan balance being only 1.18 times as large.
The trend in net interest income was also contrasting. Mizuho’s net interest income declined from ¥993.4 billion in FY2022 to ¥887.6 billion in FY2024, before recovering to ¥1,377.0 billion in FY2026—up 55.1% from FY2024 and 31.7% year on year. The trend was V-shaped. MUFG, by contrast, recorded only 4.5% year-on-year growth in FY2026, while its Net Interest Income Ratio declined to 20.6% from 33.6% in FY2022.
Securities Interest & Dividends increased markedly at all three groups. The four-year CAGR was +35.6% for Mizuho, +30.8% for SMFG, and +35.4% for MUFG. Bond portfolio repositioning and higher interest income from foreign-currency assets during the rising-rate period appear to have contributed, although the supplied data do not provide sufficient detail to identify the specific drivers.
6. Efficiency: Beware the “Apparent Improvement” in OHR
The OHR in the supplied data is calculated as General & Administrative Expenses divided by Ordinary Revenue.
OHR
FY2022
FY2023
FY2024
FY2025
FY2026
Mizuho
35.1%
25.0%
19.0%
20.4%
23.2%
SMFG
44.3%
31.7%
24.1%
n.a.
24.6%
All three groups appear to have improved by approximately 20 points over four years, but this is largely the result of Ordinary Revenue being inflated by higher interest rates. To better capture the underlying trend, an adjusted OHR was calculated using net gross income—Net interest income plus Net Fees & Commissions Income, Trading Income, and Trust Fees—as the denominator.
Adjusted OHR = General & Administrative Expenses ÷ (Net interest income + Net Fees & Commissions Income + Trading Income + Trust Fees)
Adjusted OHR
FY2022
FY2026
Change
Mizuho
49.5%
61.4%
+11.9 pt
SMFG
64.2%
55.4%
−8.8 pt
MUFG
71.3%
59.9%
−11.4 pt
Because Trading Expense was not included in the supplied data, the denominator is based on gross Trading Income. Adjusted OHR may therefore appear slightly lower than the actual figure.
The picture changes completely. SMFG and MUFG improved by approximately 9–11 points over four years, while Mizuho deteriorated by 11.9 points. The difference is explained in part by the pace of expense growth. Mizuho’s General & Administrative Expenses increased 51.0%, from ¥1,392.8 billion in FY2022 to ¥2,103.4 billion in FY2026. The corresponding increases were 45.6% for SMFG and 27.0% for MUFG. Mizuho therefore had the fastest cost growth. Its declining Trading Income also restrained denominator growth.
OHR can vary by more than 20 points depending on the definition of the denominator. When comparing bank efficiency over time, recalculating the ratio using net gross income—which is less affected by changes in interest rates—can be useful. However, because of data limitations, the adjusted OHR in this article differs in definition from the operating gross profit disclosed by each company.
7. Balance-Sheet Analysis: Loan-to-Deposit Ratios and Unrealized Gains
FY2026
Mizuho
SMFG
MUFG
Loans (¥ billion)
9,975.3
11,762.9
13,379.9
Deposits (¥ billion)
16,593.7
18,567.4
23,943.9
Securities (¥ billion)
4,263.3
3,997.4
8,571.5
Loan-to-Deposit Ratio
SMFG had the highest Loan-to-Deposit Ratio, at 63.4%, while MUFG had the lowest, at 55.9%. MUFG has an exceptionally large funding base of ¥239.4 trillion in deposits, but allocates a smaller proportion to loans and invests ¥85.7 trillion in securities—the largest securities portfolio among the three, equivalent to approximately 64% of its loan balance. Even so, MUFG’s Loan-to-Deposit Ratio improved from 51.3% in FY2022 to 55.9% in FY2026, indicating a shift toward lending. Mizuho’s ratio also recovered to 60.1% from a low of 58.0% in FY2024.
The combined balance of the three capital items shown in the table was ¥1.09 trillion for Mizuho, ¥3.59 trillion for SMFG, and ¥4.12 trillion for MUFG. MUFG’s Foreign Currency Translation Adjustment of ¥3.71 trillion was particularly large, suggesting that its high overseas-asset exposure and the cumulative effect of yen depreciation have added to capital. Meanwhile, Deferred Gains/Losses on Hedges were substantially negative at MUFG, at −¥1.26 trillion, and at Mizuho, at −¥855.2 billion. This indicates that valuation losses on hedge positions associated with rising interest rates have weighed on capital.
The Allowance for Loan Losses-to-loans ratio declined at all three groups. Mizuho fell from 0.92% in FY2022 to 0.64% in FY2026; SMFG declined from 0.90% to 0.86%; and MUFG from 1.11% to 0.92%. Mizuho recorded the largest decline. A credit-cost ratio cannot readily be calculated because risk-asset data are unavailable, and assessing the adequacy of provisions is outside the scope of the supplied data.
The “net assets / total assets” ratio in the table is a simple leverage indicator and differs from the regulatory Capital Adequacy Ratio or CET1 Ratio. CET1 Ratio data were not included in the supplied information.
8. Cash Flow and Shareholder Returns
FY2026 (¥ billion)
Mizuho
SMFG
MUFG
Total
Operating CF
−4,838.5
−10,283.1
−23,064.4
−38,186.0
Investing CF
−6,668.3
+3,254.2
+4,473.9
+1,059.8
Financing CF
−523.1
−46.3
All three groups recorded substantially negative operating cash flow in FY2026, totaling −¥38.2 trillion. A bank’s operating cash flow includes changes in loans, deposits, call loans, and other items, and therefore does not directly reflect earnings power. Cash & Due from Banks declined materially at Mizuho, from ¥72.5 trillion to ¥61.6 trillion, and at MUFG, from ¥109.1 trillion to ¥90.0 trillion. This is consistent with excess liquidity being redirected toward lending—up ¥34.6 trillion for the three groups combined over one year and also up ¥34.6 trillion from FY2024—and market-based investments.
Share Repurchases / Buybacks totaled ¥1.16 trillion for the three groups. Mizuho’s increase was particularly notable, rising from ¥1.9 billion in FY2022 to ¥102.9 billion in FY2025 and ¥404.3 billion in FY2026. MUFG has continued buybacks in the ¥400–500 billion range since FY2023, highlighting the stability of its shareholder-return policy.
The supplied data do not include cash-flow amounts for dividend payments. “Total Shareholder Returns (cash)” in the table therefore equals the amount of Share Repurchases / Buybacks and differs from actual total shareholder returns, which include dividends. The approximate total payout ratios below are calculated by reverse-engineering the share count from EPS and dividends per share.
9. Per-Share Metrics and Dividend Policy
Metric
Mizuho
SMFG
MUFG
EPS FY2026 (¥)
502.92
411.97
213.17
EPS FY2022 (¥)
209.27
515.51 (pre-split)
88.45
Dividend per share FY2026 (¥)
145.00
157.00
86.00
Dividend payout ratio
SMFG conducted an approximately one-for-three stock split in FY2025. FY2024 EPS of ¥724.55 and dividend per share of ¥270 were stated on a pre-split basis; on a post-split basis, they correspond to EPS of ¥241.5 and a dividend of ¥90. On this adjusted basis, EPS increased from ¥241.5 in FY2024 to ¥411.97 in FY2026, up 70.6%, while the dividend rose from ¥90 to ¥157, up 74.4%. In substance, this was not a dividend cut but substantial earnings and dividend growth. The apparent decline in EPS from ¥724.55 to ¥301.55 reflects the stock split rather than deterioration in performance.
Approximate total payout ratio = (Dividend per share × shares outstanding + Share Repurchases / Buybacks) ÷ net income<br/>Shares outstanding = net income ÷ EPS<br/>Mizuho: shares = ¥1,248.6 billion ÷ ¥502.92 ≈ 2.483 billion shares → dividends of ¥360.0 billion + buybacks of ¥404.3 billion = ¥764.3 billion ÷ ¥1,248.6 billion = 61.2%
MUFG had the highest dividend payout ratio, at 40.3%, while Mizuho’s was relatively conservative at 28.8%. Including Share Repurchases / Buybacks, however, the approximate total payout ratios were nearly identical for Mizuho and MUFG, at 61.2% and 61.0%, respectively. Mizuho’s return profile places greater emphasis on buybacks than dividends. SMFG’s approximate total payout ratio was the lowest of the three, at 53.9%.
Mizuho’s dividend per share increased from ¥80 in FY2022 to ¥145 in FY2026, up 81.3%, equivalent to a four-year CAGR of 16.0%. MUFG’s dividend rose from ¥28 to ¥86, or 3.07 times, representing a CAGR of 32.4% and making MUFG the clear leader in dividend-growth pace.
10. Earnings Forecasts and Progress Toward Guidance
Item (¥ billion)
Mizuho
SMFG
MUFG
Net income forecast
1,300.0
1,700.0
No disclosure in supplied data
FY2026 actual
1,248.6
1,582.9
2,427.2
Forecast / actual
+4.1%
+7.4%
—
The supplied data do not include cumulative quarterly results, making it difficult to calculate progress toward full-year forecasts. The comparison is therefore limited to forecasts and the most recent actual results.
Mizuho forecast a 4.1% increase from the prior-year result, while SMFG forecast a 7.4% increase. Both appear conservative compared with the 30–40% earnings growth recorded in FY2026. The forecasts may incorporate an assumption that the boost to net interest income from rising rates will begin to moderate, although this assumption cannot be confirmed from the disclosed data. MUFG’s net income forecast was not included in the supplied information.
11. Key Issues to Watch
First is the potential for further growth in net interest income. MUFG’s net interest income grew only 4.5% year on year in FY2026, while its Net Interest Income Ratio declined to 20.6%. If deposit-yield increases catch up with loan-yield increases, the scope for further spread expansion could become limited. In particular, MUFG’s low 55.9% Loan-to-Deposit Ratio and large surplus-funding base may make it relatively more exposed to rising deposit costs.
Second is Mizuho’s cost structure. General & Administrative Expenses increased 51.0% over four years, while adjusted OHR deteriorated by 11.9 points, in sharp contrast to the other two groups. The increase may reflect front-loaded investment in personnel and IT, but whether revenue growth can continue to outpace costs will be critical to sustaining the current approximate ROE level of 10.9%.
Third is the expansion of negative Deferred Gains/Losses on Hedges. The combined figure reached −¥2.42 trillion, more than ten times the −¥237.8 billion recorded in FY2022. The direction of valuation changes could reverse if the interest-rate environment changes, but the item warrants attention from the perspective of capital quality.
Fourth is the trajectory of credit costs. The Allowance for Loan Losses-to-loans ratio declined at all three groups even as loans increased 22.8% over four years. The quality of the lending portfolios cannot be assessed from the supplied data alone and should be cross-checked against each group’s disclosed non-performing-loan ratios and related metrics.
Fifth is the sustainability of shareholder returns. The three groups’ approximate total payout ratios were high, at 54–61%, supported by recent earnings growth. If earnings growth slows, whether the groups maintain these return levels or prioritize capital accumulation will be a key issue for future capital policy.
12. Summary
まとめ
- **Combined:** FY2026 net income was ¥5.26 trillion, with a four-year CAGR of +22.1%. Ordinary Income was ¥7.29 trillion, with a CAGR of +23.4%. Approximate ROE reached around 10% at all three groups.
- **MUFG:** The largest Ordinary Income at ¥3.41 trillion. Its ¥163.1 billion in Trust Fees and ¥3.71 trillion Foreign Currency Translation Adjustment highlight the depth of its overseas and trust businesses. Its 55.9% Loan-to-Deposit Ratio was the lowest but improved 4.6 points over four years. With a 40.3% dividend payout ratio and ¥500.2 billion in buybacks, its shareholder-return policy was the most stable.
- **SMFG:** The widest loan-deposit spread at 2.48 points and a net interest income CAGR of +15.5%. Adjusted OHR improved from 64.2% to 55.4%, reaching the strongest level among the three. Its one-for-three stock split in FY2025 makes per-share comparisons discontinuous before and after the split.
- **Mizuho:** The highest growth rates, with a 29.4% Ordinary Income CAGR and 41.0% year-on-year net income growth. Its 44.0% fee contribution indicates the greatest reliance on non-interest income. However, General & Administrative Expenses rose 51.0%, adjusted OHR deteriorated by 11.9 points, and its 1.78-point loan-deposit spread was the narrowest.
- **Common issues:** The expansion in Ordinary Revenue largely reflects the gross effect of higher interest rates, making assessment using net metrics essential. The widening negative Deferred Gains/Losses on Hedges and declining Allowance for Loan Losses-to-loans ratios are common points to monitor.
All three megabank groups have reached the milestone of approximately 10% ROE, but the paths they took differ substantially. SMFG is characterized by wide spreads and cost efficiency; MUFG by scale and diversification across overseas and trust businesses; and Mizuho by the contribution of non-interest income and its growth rate. From FY2027 onward, if changes in the interest-rate environment slow the growth of net interest income, the remaining earnings drivers may determine the relative strength of each group.
This article is for informational purposes only, based on publicly available financial data (TDnet XBRL filings).
It is intended as a financial analysis resource and does not constitute investment advice.
