Best bank 2025: MUFG Bank
MUFG, Japan’s largest bank, has once again been recognised as the country’s top financial institution. This comes on the back of its outstanding financial results and strong commitment to sustainability, both of which are helping shape Japan’s economic future.
In terms of financial performance, MUFG reported a record net profit of ¥1.86 trillion ($12.9 billion), marking a 31% increase compared to the previous year. The bank also achieved a return on equity of 9.9% on a consolidated basis, exceeding its medium-term business plan target of 9% ahead of schedule
MUFG made significant progress in its growth strategy, generating ¥205 billion in earnings through initiatives aimed at strengthening its domestic retail business, expanding corporate and wealth management services, and growing its footprint across the Asia-Pacific region
Shareholder returns also improved. The bank increased its dividend per share to ¥64 in FY2024 and projected ¥70 for FY2025. It also resolved to repurchase up to ¥250 billion in shares in the first half of FY2025, maintaining a total payout ratio of over 60%.
On the sustainability front, MUFG published its first comprehensive report on social and environmental progress in April 2024. Over the past year, the bank carried out 34 green transformation co-creation projects, extended financial education to 800,000 people, and supported startups with a combined market capitalisation of ¥8 trillion – contributing significantly to Japan’s economic development.
Best investment bank 2025: Morgan Stanley
Morgan Stanley has once again reaffirmed its position as Japan’s best investment bank this year, building on its dominant presence in the M&A space and its proven expertise across both equity and debt capital markets.
Through its strategic joint venture with MUFG, the firm has led some of the most significant and complex transactions in the country, creating a powerful platform positioned to serve the Japanese market.
In mergers and acquisitions, Morgan Stanley successfully executed 78 transactions, securing the top position in Japan-related announced M&A deals with a 50.7% market share. Its leadership is underscored by its involvement in key transactions such as Nippon Life’s $8.2 billion acquisition of Resolution Life and Sekisui House’s $4.9 billion acquisition of M.D.C. Holdings.
In the debt capital markets, Morgan Stanley ranked second in international bond issuance (USD and EUR). A notable deal was Daiwa House’s $1.37 billion euro-yen convertible bond offering – the second largest of its kind in Japan over the past 20 years.
On the equity front, the bank also secured the number two position, playing a key role in major IPOs and follow-on offerings. Examples include Astroscale’s IPO – the largest deep-tech IPO on the TSE Growth Market – and Honda Motor’s ¥497.5 billion ($3.45 billion) follow-on offering, the largest equity deal in Japan’s automotive sector.
Best investment bank for DCM 2025: Citi
Citi remains a prominent force in Japan’s debt capital markets, leveraging its global network to guide issuers through a fast-evolving funding landscape. Through steady execution and deep client relationships, the bank has strengthened its influence across multiple segments of the market.
In the rapidly expanding non-yen bonds arena, Citi secured a leading share of mandates by helping Japanese companies tap offshore investors as domestic rates rose. The firm’s ability to navigate cross-border regulations and syndicate processes enabled first-time issuers to broaden their funding sources while maintaining competitive pricing.
Citi also played a central role in financial institution and public sector deals, delivering bespoke structuring, particularly on ESG formats, for government agencies and regional authorities entering international markets. Its comprehensive ESG toolkit, coupled with close coordination between Tokyo and global teams, allowed issuers to align financing frameworks with global sustainability standards.
Beyond underwriting, Citi provided strategic advice to clients adjusting to Bank of Japan policy shifts, drawing on insights from its worldwide platform to position Japanese borrowers for long-term access to diversified liquidity. Consistently high league-table standings in traditional, ESG and public sector transactions underscore the bank’s capacity to meet evolving issuer needs and support Japan’s presence on the global capital markets stage.
Best digital bank 2025: Rakuten Bank
Rakuten Bank is scaling rapidly behind a clear digital playbook, marrying product innovation with disciplined execution. The bank’s recent moves show how a focused online model can expand reach, deepen engagement and tighten cost control – all at speed.
The bank’s account numbers topped 16 million, and management is aiming for 30 million by 2027. Much of this momentum came from aggressive promotion of cashless payments across the Rakuten ecosystem, spanning debit and prepaid cards that make everyday spending friction-free.
The bank’s commitment to simplifying customer experience was evident through its fully digital onboarding flow that shortens the time from application to first transaction. New services such as UnionPay-enabled China Smartphone Payment and reverse mortgages helped widen the lender’s product set for niche segments. These launches relied on in-house IT teams that iterate quickly and keep core systems tightly aligned with business goals.
In response to the evolving digital landscape, Rakuten Bank has fortified its services with robust security protocols. Multi-layered defences guard against DDoS and ransomware, while payment platforms meet PCI DSS requirements.
In addition, the bank targeted inclusion, offering tailored products for LGBT customers and rolling out financial-literacy programmes in schools, ensuring digital finance is genuinely broad-based.
Wider Rakuten Group synergies helped the bank expand reach and stickiness. Transactions earn Rakuten Points, reinforcing loyalty, while alliances with Dai-ichi Life and JR East plug the bank into insurance and transit channels that attract new users at low acquisition cost.
Best bank for ESG 2025: Morgan Stanley
Morgan Stanley is deepening its ESG focus in Japan, embedding sustainability across strategy, client coverage and product design. Over the past year it has strengthened domestic partnerships while rolling out new analytical tools that help investors track their impact.
The firm’s expanded alliance with MUFG, branded “Alliance 2.0”, has increased sustainable-finance capacity and broadened outreach to Japanese corporates. To coordinate the effort, Morgan Stanley created the Japan Sustainability Office in 2023, giving it a hub that links business lines and global resources.
These internal developments translated into impressive execution. The bank arranged roughly $4.5 billion of ESG bonds in non-yen currencies and ¥2.1 trillion ($14.1 billion) in yen, keeping a leading share despite volatile markets. It co-founded the Japan Hydrogen Fund and advised on PAG’s exit from the country’s largest solar-asset sale. Additionally, the firm utilised proprietary platforms such as Morgan Stanley Analytics and Portfolio Central, allowing local clients to measure ESG factors and fine-tune portfolios with greater precision.
Knowledge-building was another priority for the bank. It ran a two-day sustainability programme alongside the Japan Sustainability Office to bring university students into direct contact with practitioners, while the firm’s internal courses pushed ESG expertise deeper within the organisation. Diversity initiatives included the Enable Internship, which has yielded eight full-time hires since 2022, and the Japan Inclusive Ventures Lab, aimed at funding startups led by women and other underrepresented founders.
Best bank for large corporates 2025: MUFG Bank
MUFG Bank sustained strong momentum over the research period, supported by disciplined financial management and targeted innovation. Its performance across profitability, product development, digital advances and client coverage highlights a strategy focused on large Japanese corporates.
Net operating profits in its Japanese corporate and investment banking division rose to ¥559.7 billion ($3.75 billion) from ¥517.5 billion a year earlier. Return on equity improved to 14.5%, while lending spreads widened to 0.69% overall and 0.95% on non-JPY loans, reflecting tighter pricing discipline.
Product development kept pace with the earnings gains. The bank introduced dollar-denominated, separately managed accounts through its partnership with Morgan Stanley and stepped up activity in project finance, M&A advisory, and business-succession lending.
The bank also implemented AI-driven tools, reducing processing times for proposal generation and financial analyses to a fraction of previous turnaround times. Refreshed customer relationship management and API platforms now give relationship managers real-time data; roughly 90% of them now use business-intelligence applications in daily work.
Coverage resources have also expanded: the number of specialists integrating corporate and wealth management nearly doubled to 1,970, a shift that has in turn doubled the volume of large corporate loan deals.
Best bank for SMEs 2025: Mizuho Bank
Small and medium-sized enterprises drive much of Japan’s economic momentum, and Mizuho Bank has intensified its focus on this segment. Over the review period, the lender has paired disciplined balance-sheet growth with targeted digital upgrades to deepen its reach and capabilities.
The bank recorded a modest rise in SME loan balances while lifting loan spreads to 0.61% from 0.55%. Robust demand and improved pricing pushed SME-related income up 54% year-over-year.
Product coverage has broadened. Startup lending balances are 1.7x higher than the previous fiscal year. The bank now offers richer ECM and M&A support alongside new payment solutions and financial-planning tools tailored to smaller firms.
The bank’s digital transformation targeted user experience improvements. Enhancements included an upgraded Mizuho Direct app, AI-based digital instalment payments, and wider use of remote consulting channels built specifically for SMEs.
Mizuho has also strengthened SME engagement. Its expanded consulting services, improved industry research and closer coordination between banking and markets teams are now backed by regional and sector-specific support structures. Streamlined onboarding – integrated with Rakuten Securities and accessible via mobile – reinforced Mizuho’s commitment to efficiency and client satisfaction.
Best international bank 2025: Citi
Citi’s franchise in Japan shows how a global bank can pair international reach with on-the-ground insight to serve clients in a complex, rapidly evolving market.
A significant share of the bank’s income originates from business generated outside Japan, underscoring the strength of its cross-border relationship network. Leveraging this footprint, the bank provides seamless support for capital markets deals and trade finance, while maintaining a clear focus on debt issuance and sustainable finance underwriting for companies of all sizes.
The bank’s embrace of sustainability is visible in its role on one of the country’s flagship municipal green bonds and in its day-to-day work supporting Japan’s broader transition strategy.
Product development remains a parallel priority. Recent launches in virtual payment solutions have made business-to-business transactions more efficient for mid-sized corporates, and an upgraded digital-banking suite offers quicker, more intuitive access to cash-management and trade-finance tools.
Additionally, ongoing investment in custody infrastructure has also translated into steady growth in settlement and asset-servicing mandates.
