(1) Financial Statement of Banks

 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


(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.

(2) Non-performing Loan Problem

 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