Japan’s megabanks are awash in cash and eager to invest.
Mitsubishi UFJ, Sumitomo Mitsui and Mizuho are enjoying record earnings. Selling off cross-shareholdings is bringing in even more money. Even as the banks reward shareholders with buybacks and higher dividends, they are determined to fund overseas expansion.
Their primary focuses are on the U.S. and India, respectively the world’s largest economy and the fastest-growing. While the banks have had a presence in the two countries for decades, this year has seen a fresh push in investment and hiring. Buying stakes in local companies also puts their excess funds to work as the banks are under pressure from the Tokyo Stock Exchange to boost their valuations.
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