While the domestic performance of Japan’s banks has been generally positive, the global ranking sees more of them losing ground or remaining static rather than improving on last year’s positions. Stefania Palma reports.

Japan 2017

Japanese banks sustain a strong performance in the country listings, with all lenders increasing their Tier 1 capital in 2016 except Fukuoka Financial Group. Out of Japan’s top 25, Fukuoka has also suffered the most in the global Top 1000 ranking, dropping 19 places to 231.

Japanese lenders’ performance in the world ranking is mixed, however. Nine of the top 25 banks have moved up, while 11 banks have lost ground. Two lenders stay put and the remaining three are new to the country ranking.

The three mega-banks – Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group (SMFG) and Mizuho Financial Group – retain the top three positions in the same order as last year. Of these, SMFG registered the highest increase in Tier 1 capital, from $80.19bn in 2015 to $88.77bn in 2016.

Japan has two new entrants in the global ranking, Concordia Financial Group and Mebuki Financial Group, which come in 138th and 193th, respectively. They also make the country’s top 25, ranking a respective ninth and 13th.

The newcomers shake up the bottom half of the country listings, with Fukuoka Financial Group dropping to 17th from 14th position, and Iyo Bank and Chugoku Bank both moving down one spot to 18th and 20th, respectively. Last year, there was only one new entrant, Kyushu Financial Group, now at 15th in this year’s top 25.

Three banks have lost their spots in the top 25 Japan listing. Hiroshima Bank’s entry in 25th place knocks 77 Bank out of the top 25. Bank of Yokohama and Joyo Bank also exit the country group.

A new entrant in 2015, Tokyo TY Financial Group tops the highest movers table this year with a 41.85% year-on-year increase in Tier 1 capital that took the overall volume to $2.52bn in 2016. Last year, the highest mover (Shinkin Central Bank) registered a lower increase of 28.37%.

There are three new names in the top five banks by return on capital (ROC), one of which tops the list. Newcomer Mebuki Financial Group is the Japanese bank that registered the highest ROC in 2016 (23.9%). Tomony Holdings and second new entrant Concordia Financial Group are also new to the ROC listing, in third and fourth place, respectively.

Japan new entrants 2017


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