Financial Conditions

　Ordinary profit of all banks was on the recovery trend after a deficit in FY 2008 because of the US subprime loan problem and Lehman Shock. Banks have recovered from such losses thereafter.
　However, the prolonged low-interest rate environment has a negative influence on net interest income in recent years.
　The latest data shows ordinary profits of FY 2018 over \3.2 trillion.

Ordinary Profit and Net Income of All Banks

Note:
(1) All banks consist of city banks, regional banks, regional banks II, trust banks, and other banks.
(2) FY (Fiscal Year) : April 1 〜 March 31

Please see the following website for more information about Financial Statement of Banks.

　Japan experienced a bubble economy in the latter half of the 1980s and the ensuing collapse of the bubble economy and prolonged economic recession in the 1990s. This process led to a rapid increase in the balance of non-performing loans resulting from a dramatic drop in the value of real estate and other assets, an increase in corporate bankruptcies and other developments.
　The non-performing loan problem has improved not only due to some policies, but also as a result of proactive measures to dispose of the non-performing loans of banks, focusing on major banks as well as economic recovery. As a result of various governmental approaches and the efforts of these banks, the objective of “halving the non-performing loan ratio at major banks by fiscal 2004” set in the Program for Financial Revival (October 2002) was achieved. (The non-performing loan ratio, which was approximately 8% then, fell to about 1.1% in FY 2018.)

Non-performing Loans of All Banks

Source: JFSA