Japan Financial Sector: BofA financials weekly, 22 June 2026

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Japan Financial Sector: BofA financials weekly, 22 June 2026

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Japan Financial Sector

BofA financials weekly, 22 June 2026

Industry Overview

20 June 2026

Banks (Shinichiro Nakamura) Equity

At this week’s BoJ policy meeting, as market had expected, 25bp rate hike to 1.0% and Japan

halt to reduction in pace of JGB purchases from April 2027 onward (with purchases Banks, Brokerage, Insurance & Other

continuing at ¥2tn per month) were announced. Deputy Governor Uchida’s press Nonbank

conference gave neutral impression, and probability of rate hike at Dec meeting changed

Shinichiro Nakamura >>

only marginally, remaining at about 94%. [Yen loan-deposit spread / loan yield trends] Research Analyst

Among majors, Mizuho>Aozora>SMFG are relatively strong, while SMTG, which has high BofAS Japan

+81 3 6225 8824

deposit funding cost, is relatively weak. Among regional banks, Yokohama > Hachijuni shinichiro.nakamura@bofa.com

Nagano and Daishi Hokuetsu are relatively strong, while Suruga remains on deteriorating Natsumu Tsujino, CFA >>

trend due to runoff of high-interest loans and deposit campaigns. At Rakuten, Research Analyst

BofAS Japan

improvement is slower vs mega banks due to rising deposit rates, while SBI Shinsei has +81 3 6225-8720

finally begun to turn to an improving trend. Improvement in loan yields at major banks is natsumu.tsujino@bofa.com

relatively strong in Aozora > Mizuho > SMFG, reflecting the high ratio of TIBOR-linked Yuji Kobayashi >> Research Analyst

loans. Improvement in loan yields at regional banks is expected to improve with a lag, BofAS Japan

like Resona, because ratio of short-term prime rate-linked loans is higher vs major banks, +81yuji.kobayashi@bofa.com3 6225 8791