Japan Banking Outlook: Earnings Improvement Hinges On Economic Recovery May 11

Standard & Poors, May 2011

Abstract
A delay in Japan's economic recovery could undermine efforts by the country's banks to improve their earnings. Standard & Poor's Ratings Services sees the Japanese economy slowing considerably in fiscal 2011 (ending March 31, 2012)--compared with 2.3% GDP growth in fiscal 2010--due to the impact of the Great East Japan Earthquake, which hit northeastern Japan on March 11, 2011. Although we see GDP growth recovering by mid-fiscal year from its plunge in the last quarter of fiscal 2010, any delay in recovery could impair the quality of bank loans. In addition, despite Japanese banks' efforts to diversify their revenue sources, we expect profitability to remain weak compared with other markets, amid sluggish loan demand and low interest rates. Besides the...

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Shinsei Bank Ltd.
- Norinchukin Bank
- Aozora Bank Ltd.
- Sumitomo Mitsui Trust Bank Ltd.
- Mitsubishi UFJ Trust and Banking Corp.
- Hokuriku Bank Ltd.
- Shizuoka Bank Ltd.
- Toho Bank Ltd.
- Bank of Kyoto Ltd.
- Hyakugo Bank Ltd.
- Master Trust Bank of Japan Ltd.
- 77 Bank Ltd.
- Higo Bank Ltd.
- Hokkoku Bank Ltd.
- Kagoshima Bank Ltd.
- Keiyo Bank Ltd.
- Shinkin Central Bank
- Chuo Mitsui Trust & Banking Co. Ltd.
- Bank of Iwate Ltd.
- Mizuho Trust & Banking Co. Ltd.
- Sumitomo Mitsui Banking Corp.
- Sony Bank Inc.
- Seven Bank Ltd.
- Mizuho Bank Ltd.
- Mizuho Corporate Bank Ltd.
- Mitsubishi UFJ Financial Group Inc.
- Mizuho Financial Group Inc.
- Sumitomo Mitsui Financial Group Inc.
- Trust & Custody Services Bank Ltd.
- Bank of Tokyo-Mitsubishi UFJ Ltd.
- Japan Trustee Services Bank Ltd.
- Chiba Bank Ltd.
- Iyo Bank Ltd.
- Bank of Yokohama Ltd. (Unsolicited Ratings)
- Hachijuni Bank Ltd.
- Resona Bank Ltd.

Customers who bought this item also bought

• Japan Education Industry Forecast to 2015
• The Japan Defense Industry - Competitive Landscape and Strategic Insights to 2017: Market Profile
• Future of the Japanese Defense Industry - Market Attractiveness, Competitive Landscape and Forecasts to 2018
• Aerospace and Defense Industry - Global Strategic Business Report
• Defense and Security in Japan
• Aerospace & Defense in Japan
• The Japanese Defense Industry - Market Opportunities and Entry Strategies, Analyses and Forecasts to 2016
• Defense Spending in Japan
• The Japanese Defense Industry - Competitive Landscape and Strategic Insights to 2016: Market Profile
• Aerospace & Defense in Japan