Japan's three largest commercial banks posted record consolidated net profit in the first nine months of the fiscal year, supported by higher domestic interest rates that lifted lending income, Nikkei reported Thursday.

Mitsubishi UFJ Financial Group (TYO:8306), Sumitomo Mitsui Financial Group (TYO:8316) and Mizuho Financial Group (TYO:8411) together earned 4.22 trillion yen in April to December 2025, up 13% from a year earlier, according to the report.

All three kept their full-year forecasts unchanged and expect a combined net profit of 4.73 trillion yen for the year ending March, the report said.

Higher rates widened interest margins and boosted net interest income, while solid corporate borrowing demand also supported results. MUFG, SMFG and Mizuho each logged record profits for the period, putting them on course for a third consecutive full-year high. Rising yields increased unrealized losses on bond holdings, but the banks said earlier portfolio adjustments and gains on equities should limit the impact, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)