The return of inflation also pushed the Bank of Japan to end its policy of negative interest rates in March 2024 and hike rates twice thereafter, raising lending margins for Japanese banks. MUFG forecast a net profit this year of 2 trillion yen, SMFG projected 1.3 trillion yen and Mizuho 940 billion yen.

Japan’s biggest carmakers are looking at a hit of more than $19 billion from US President Donald Trump’s tariffs that have left the global auto industry reeling.

Honda has reported its profit for the fiscal year through March slipped 24.5% from the previous year as its vehicle sales in China dropped.