Profits at Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc. beat analysts' first-quarter estimates, showing the megabanks are withstanding a slump in Europe that hurt income at Deutsche Bank AG and UBS AG.
Profit at Mitsubishi UFJ, the country's biggest lender, fell 64 percent to ¥182.9 billion from a year earlier, when it posted a gain from conversion of Morgan Stanley preferred shares. Mizuho, the nation's third-biggest bank by market value, almost doubled net income to ¥183.9 billion as higher bond-trading income offset a decline in lending.
The country's economy is proving resilient to Europe's debt crisis, posting data Tuesday showing the nation's jobless rate unexpectedly dropped to 4.3 percent as services hiring countered a decline in manufacturing jobs. Mizuho shares have risen 25 percent this year and Mitsubishi UFJ has advanced 14 percent, compared with declines at Deutsche Bank and UBS, both of which reported earnings that missed analyst estimates Tuesday.