Japan's 3 megabanks boost net income by 14%

Thanks to stronger reserve releases.

According to a report by SNL Financial, the aggregate net profit of Japan's three megabanks — Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. — increased 14% year over year in fiscal 2014.

All three banks saw net income jump during the year. On a combined basis, the banks reported net income attributable to their parents of ¥2.509 trillion, compared to ¥2.207 trillion in the year-ago period. Mizuho Financial led the pack, with a 23% increase. Most of the gain resulted from reserve releases of ¥112.88 billion for the 12 months ended March 31, compared to provisions for loan losses of ¥111.84 billion for the previous year.

The other two banks also booked reserve releases that resulted in negative asset write-downs in the fiscal year.