Japan's second largest bank, Mizuho, has reported strong first-half earnings after an upturn in the domestic economy and an increase in overseas lending.
Consolidated net income for the interim amounted to JPY338.5 billion compared to JPY233.9 billion for the same period last year, an increase of 46%. An increase in top-line profits and reduction in expenses drove up consolidated net business profits to JPY507.9 billion, an increase of JPY87.2 billion form the previous year.
The bank reviewed its portfolio and recognized losses from sales and revaluation in preparation for the risks of future interest rate rises during the period. It also paid back JPY 600 billion of public funds and plans to pay back the rest by the end of fiscal 2006. The government lent the bank money in the 1990s to prevent it from collapsing.
Based on the results, the bank has improved its year-end forecast and now predicts net income for the whole year to be approximately JPY630 billion, from initial estimates of JPY500 billion.