Japan Financial Sector: BofA financials weekly, 24 July 2026

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Japan Financial Sector: BofA financials weekly, 24 July 2026

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Japan Financial Sector

BofA financials weekly, 24 July 2026

Industry Overview

24 July 2026

Banks (Shinichiro Nakamura / Yuji Kobayashi) Equity

Average deposit balance growths are maintaining +2%, at majors YoY +2.4% / first-tier Japan

regionals YoY +1.9% as of end-Jun 2026, while the gap between categories is widening, Banks, Brokerage, Insurance & Other

with second-tier regionals YoY -0.4% and shinkin YoY +0.2%. Looking at the depositor Nonbank

breakdown of domestic deposits (as of end-Mar 2026), individuals, which account for

Shinichiro Nakamura >>

57% of the total, increased YoY +2.0%, while corporates, which account for 36%, Research Analyst

increased YoY +5.5%, indicating expansion centered on corporates. In the breakdown of BofAS Japan

+81 3 6225 8824

corporate deposits, liquid deposits account for 73% and time deposits for 21%, and shinichiro.nakamura@bofa.com

deposits growth were liquid deposits YoY +0.7% / time deposits YoY +18.5%, indicating Natsumu Tsujino, CFA >>

that growth continues to be overwhelmingly centered on time deposits. The same Research Analyst

BofAS Japan

applies to individuals, where liquid deposits account for 72% and time deposits for 27%, +81 3 6225-8720

and deposits growth were liquid deposits YoY +0.8% and time deposits YoY +5.2%, with natsumu.tsujino@bofa.com

time deposits accounting for most of the increase. Time deposits were likely acquired Yuji Kobayashi >> Research Analyst

through rate-top-up campaigns and competition with other banks, and compared with BofAS Japan

liquid deposits (deposit beta 40%), it is less sticky, with high beta (60-80%), and likely to +81yuji.kobayashi@bofa.com3 6225 8791

flow out to other banks depending on interest rates.