Features of FY2025 Bank and Shinkin Bank Results

On July 24, 2026, the Bank of Japan’s Financial System and Bank Examination Department analyzed FY2025 bank and shinkin bank results. Among the institution types covered, net income trends differed, while core operating net profit, excluding gains or losses from investment trust cancellations, improved across all types.

Overall, rising yen interest rates weighed on profits through losses on bond sales, while increases in net interest income and non-interest income, together with improved equity-related gains and losses, pushed earnings higher.

In financial institutions’ results, losses on bond sales associated with rising yen interest rates weighed on profits, while improvements in core operating net profit and equity-related gains and losses supported earnings. Net interest income and non-interest income both increased within core operating net profit.

Capital ratios rose for banks applying domestic standards and declined for banks applying internationally unified standards, but remained well above regulatory levels across all institution types.

Net income increased at large banks, on a group-consolidated basis, and at regional banks, but decreased at shinkin banks. All institution types recorded losses on bond sales in response to rising yen interest rates, which weighed on profits, while improvements in core operating net profit, excluding gains or losses from investment trust cancellations, and in equity-related gains and losses supported earnings.

Core operating net profit, excluding gains or losses from investment trust cancellations, increased across all institution types. Net interest income increased against a backdrop that included rising yen interest rates, and non-interest income also increased.

Capital ratios rose for banks applying domestic standards and declined for banks applying internationally unified standards. However, they remained well above regulatory levels across all institution types.