Updated July 31, 2023
Overview of Top Banks In Japan
The banking system in Japan is one of the largest in the world and operates the same way the other institutions in the world operate. A commercial banking system is one of the major elements of Japanese financial systems. Banks in Japan were the five largest banks in the world in 1990 by total assets. Japanese banks are frequently in some companies that conduct banking business with them. Bank of Japan is the Central Bank of Japan which issues and handles currency bands to maintain financial stability in the Japanese economy. The Bank of Japan issued its first currency note in 1885. As a result, the Central Bank of Japan becomes the first among G7 nations to own assets collectively worth more than the country’s entire economy.
There are 10 Major Banks in Japan, 64 member banks of the regional banks association, 41 member banks of a second regional bank association, and 253 shinkin banks that hold current accounts at the Bank of Japan. Moody’s outlook is stable for Japanese financial institutions, including banking, insurance, and finance companies, in 2018. In its yearly report, the Bank of Japan said that core capital ratios for domestic banks have gradually declined recently. Recently Japanese banking sectors were reshaped by a shrinking population and switching to online banking. Japanese banking sectors invest heavily in financial technology by cutting bank branches and staff.
Top 10 Banks in Japan
Here is a list of the top 10 Banks in Japan:
1. Mitsubishi UFJ Financial Group
It is the largest financial group in Japan, founded in 1880, and MUFG bank is the largest Bank in Japan and one of the world’s largest banks, which has branches throughout Japan and in 40 other countries. During the First half of the fiscal year ending March 2019, gross profit fell 125.5 billion Yen year on year to 1882.5 billion yen. Net operating profits 568.1 billion yen, which is down to 132.6 billion yen year on year. MUFG provides services in retail and commercial banking business groups, Japanese corporate and investment banking business groups, and financial services with local SMEs and individual customers. MUFG has won the All Japan executive team most honoured company award by institutional investors’ Magazine.
2. Japan Post Bank
Japan Post Bank is the largest Bank by deposit and the second-largest Bank by total assets. Bank provides various banking and product services to retail and corporate clients in Japan and internationally. Japan Post was started in October 2007 and is part of Japan Post holdings group. Most essentialt services offered by the Bank in deposit business, lending business, security investment business, government bonds etc. Gross operating profit for the nine months ended December 31, 2018, Decreased by 142.2 billion yen year on year to 1,020 billion yen. A domestic outlet of the Bank is 24,019, and ATMs are 28,782 as of 31st March 2018.
3. Mizuho Financial Group
Mizuho Financial Group Inc is a Bank holding company established in January 2003. It is one of the largest financial institutions in the world, which offers financial and strategic services, including banking, securities, trust and assets management, private banking, and venture capital through its group companies. Bank generated a net profit of JPY 409.9 billion in Q3 2018. Bank has 900 offices and 60,000 experts worldwide. In 2018 bank won the Asian Banker Transaction Award.
4. Sumitomo Mitsui Financial Group
SMFG is one of Japan’s largest financial services groups, established in April 2001 through a merger of two banks. Group has a capital stock of 2338.7 billion yen. In Japan, the Group offers commercial banking, leasing, securities, consumer financing, and other services. Group operates through wholesale, retail, international, and global markets business. As of March 31, 2018, the Group had 18 branches, 22 sub-branches, and 4 representative offices. Group reported a profit of JPY 723,320 Million in the first nine months of 2018, and earnings per share were JPY 456.20. The group’s financial results for 2018 are slightly lower than in 2017.
5. Norinchukin Bank
It is Japan’s cooperative Bank and also Japan’s largest institutional investors’ Bank, established in 1923. The Bank aims to fully support Japan’s agricultural, fisheries, and forestry industries. Bank consolidated ordinary profit for the first 9 months of 2018 was JPY 89.9 billion, which is JPY 77.2 billion down compared to 2017 for the same period. The Bank has 3 overseas offices and 2 representative offices. Japan Bank has 1 head office, 19 branches, and 17 offices as of 31st March 2018. Bank’s total assets are JPY 104,927.7 billion as of March 31st, 2018.
6. Resona Holdings
Bank was established in 1918 and which have 50.4 billion yen capital as of March 2018. Bank posted a JPY 469.4 billion operating profit during the First 9 months of 2018, which is down by 4.3% as compared to last year during the same period. As of September 2018, the bank had 834 branches throughout Japan. The Bank offers banking, trust banking, credit guarantee, a collection of bills and receivables, etc. services. It is one of the largest banking groups in Japan.
7. Concordia Financial Group
Bank was established in 2016 after merging two banks. Bank has a capital of 150 billion yen. A group is holding a company for the Bank of Yokohama and Higashi-Nippon Bank. The group provides banking and other financial services. Group operates through a network of branches, ATMs, representative offices, and sales offices in Japan and internationally. The Gross operating income of the Bank decreased in 2018 by 6.2% from the same period last year to 153 JPY billion, and the net profit decreased by 15.2% to 61.1 billion in the first nine months of 2018.
8. Fukuoka Financial Group
Group was established in 2007, and it provides banking and financial services through its subsidiaries to individual and corporate customers. For the nine months company reported an ordinary income of JPY 179,830 million during 2018 and an Ordinary profit of JPY 542,420 Million. Bank provides deposits, loans, foreign exchange, and other services such as guarantees, revitalization support business, management of loans, etc. As of May 2017, the Bank has 328 operating branches and 8 international offices in Asia.
9. Chiba Bank
Chiba Bank was established in 1943 and which have total assets of JPY 14,611.9 billion. Bank operates through 182 branches, 49,053 off-branch ATM locations and 3 money exchange counters. The Bank has 3 overseas branches and 3 representative offices. Bank reported an ordinary income of JPY 180,209 Million for the first nine months of 2018 and an Ordinary profit of JPY 59,668 Million, lower than in 2017. Bank offers deposit products, loans, bill discounting, securities, leasing, credit card, and credit lending business. It is one of the largest regional banks in Japan.
10. Hokuhoku Financial Group
Is established in 2003 and provides various banking services to individual and small and medium-sized enterprises in Japan. For nine months, the company’s ordinary income was JPY 136,211 million, and its Ordinary profit was JPY 24,509 million for 2018, which is lower than the previous year during the same period. The Bank has 179 branches in Japan and 9 overseas offices. Bank offers various deposit and loan products and various other financial services. The capital with a bank is JPY 70,895 Million, and a bank’s rating is A (R&I).
This has been a guide to Top Banks in Japan. Here we have discussed the 10 topmost banks in Japan with their financial structure. You may also look at the following articles to learn more –