# Japan’s megabanks raise annual earnings forecasts, flag data centre slowdown risk

- URL: https://talkfuse.com/story/japans-megabanks-raise-annual-earnings-forecasts-flag-data-centre-slowdown-risk/
- Published: 2026-11-13T05:24:05+00:00
- Updated: 2026-11-13T08:57:07+00:00
- Original publisher: CNA (publisher lean: Centre)
- Original article: https://www.channelnewsasia.com/business/japans-megabanks-raise-annual-earnings-forecasts-flag-data-centre-slowdown-risk-6548706
- Topics: Asia, Business, Companies, World

## Key points

- Japan’s three largest banks raised annual profit forecasts to record highs.
- Data centre investment may slow, posing an economic risk.
- MUFG’s data centre credit exposure is 3.3 trillion yen.

## Summary

Japan’s three largest banking groups have raised their annual profit forecasts to record levels, supported by stronger loan demand and higher interest rates. They also warned that a slowdown in investment in AI data centres could weigh on the economy and affect bank results.

For the financial year ending March 2027, MUFG forecast profit of 2.8 trillion yen, SMFG 1.9 trillion yen and Mizuho 1.6 trillion yen. SMFG and Mizuho increased their share buyback plans to 400 billion yen each; MUFG reported 3.3 trillion yen of data centre credit exposure, against 180 trillion yen in total credit exposure. Executives cited possible project delays and higher US construction costs, while saying the banks’ direct exposure was limited.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.