The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

MUFG sharpens CIB, and Europe is on the menu

As if European commercial and investment banks didn’t have enough problems already with their US competitors eating their lunch, now one of the world’s biggest balance sheets has taken a seat at the table.

ninja-600

If any banks can tell you how to survive decades of low interest rates, it’s Japanese ones. The country's overnight rate has been below 1% since the mid-1990s, and last year, the Bank of Japan became the first central bank to experiment with a negative rate. 

Volatility in domestic stock markets and the national currency, low GDP growth, sluggish loan demand and tougher post-crisis capital requirements have only made it harder for Japan’s banks, which have typically relied heavily on domestic lending, to achieve steady earnings growth. 

That’s caused the nation’s so-called megabanks to turn their eyes to new horizons. Overseas assets at the big megabanks have grown 94.1% between March 2012 and September 2016, according to Fitch Ratings. 

Overseas profits accounted for some 40% of gross profits at the banks in the 2016 fiscal year, up from 30% in 2011. Three have pried their way into the top 30 lead syndicated loan arrangers in Europe in recent years, and top 10 globally, by deal value, according to Dealogic.

It helps that the big Japanese lenders are miles ahead of European banks in terms of asset quality.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree