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Japan"s Largest Banks Report Profit

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Mitsubishi UFJ Financial Group Inc., Japan's biggest bank by market value, has announced its first quarterly profit in the past nine months as the recession abates.

According to the Tokyo-based bank, net
Definition of net:

After deduction. Contrasts with gross. Exactly what is deducted to get from gross to net depends on the context.
income
Definition of income:

1. The amount of money (nominal or real) received by a person, household, or other economic unit per unit time in return for services provided or goods sold.
2. National income.
3. The return earned on an asset per unit time.
rose from 51.2 billion yen in 2008 to 75.9 billion yen ($797 million) in the second quarter
Definition of quarter:

One of the four three-month periods into which the calendar year is divided for the reporting of economic data.
of 2009. The company's profit
Definition of profit:

1. The net gain from an activity.
2. For a firm: revenue minus cost.
was assisted by the increase in lending income and gain in stockholdings after investing $9 billion in Morgan Stanley in October 2008.

Five of the largest banks in Japan announced improved results from the first to second quarter, boosted by rising stock
Definition of stock:

1. A share in the ownership of a corporation.
2. A stock, or stock variable, is an economic magnitude that describes a quantity that exists at a point in time. Examples include a country's international reserves, a consumer's wealth, and a country's labor force. Contrasts with a flow.
markets and smaller bad-debt charges. Together, Mtisubishi UFJ, Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc have raised more than $30 billion of capital
Definition of capital:

1. The plant and equipment used in production.
2. One of the main primary factors, the availability of which contributes to the productivity of labor, comparative advantage, and the pattern of international trade.
3. A stock of financial assets.
this year alone, which allows them to compete with foreign banks like Citigroup Inc.

Michael Wood-Martin from Henderson Global Investors in London, who helps oversee an estimated $1 billion, says that there is hope for a global return
Definition of return:

The amount that is earned by someone who holds an asset, usually expressed as a percentage of what it cost to acquire the asset. The return includes interest, dividends, and capital gains and losses, the latter due to both changes in the price of the asset and, for international holdings, changes in exchange rates.
to "normality" in banks.

Mitsubishi UFJ shares rose 4.4 percent in July 31 in Tokyo. The Topix Banks Index
Definition of Index:

A quantitative measure, usually of something the measurement of which is not straightforward, such as an average of many diverse prices, or a concept such as economic development or human rights.
gained 2.4 percent.

Japan's two largest brokerages, Nomura Holdings Inc and Daiwa Securities
Definition of Securities:

Stocks, bonds, and other tradable financial assets.
Group Inc. also returned to profit in the second quarter, along with overseas firms like Goldman Sachs Group Inc., Deutsche Bank AG and Credit
Definition of Credit:

1. Recorded as positive (+) in the balance of payments, any transaction that gives rise to a payment into the country, such as an export, the sale of an asset (including official reserves), or borrowing from abroad. Opposite of debit.
2. A loan. For example, a trade credit.
Suisse Group AG that reported profits that surpassed analysts' estimates. The improvements triggered optimism that the world economy is actually recovering.

It is estimated that Japan's gross
Definition of gross:

Before deduction. Contrasts with net. Just what is deducted to get from gross to net depends on the context.
domestic
Definition of domestic:

From or in one's own country. A domestic producer is one that produces inside the home country. A domestic price is the price inside the home country. Opposite of "foreign" or "world."
product
Definition of product:

A good or service that is produced.
grew 2.4 percent by the end of the second quarter in 2009, a significant pick up from the first quarter's 14.2 percent decline.

In May 2009 Mizuho said that the government's loan
Definition of loan:

An amount, usually of money, conveyed by one to another in the expectation that it will be returned, perhaps with specified interest, at a later date. When the lender and borrower are in different countries with separate monetary and legal systems, loans bear extra risk.
guarantees of up to 30 trillion yen in the previous 12 months would curtail bankruptcies.

Mitsubishi UFJ had a 23 percent gain in Japan's Nikkei 225 Stock
Definition of Stock:

1. A share in the ownership of a corporation.
2. A stock, or stock variable, is an economic magnitude that describes a quantity that exists at a point in time. Examples include a country's international reserves, a consumer's wealth, and a country's labor force. Contrasts with a flow.
Average in the quarter after a 409 billion yen loss on its shareholdings in 2008. Its 21 percent stake in Morgan Stanley also rose as the U.S bank's stock climbed 25 percent.

"Mitsubishi UFJ has the best asset
Definition of asset:

An item of property, such as land, capital, money, a share in ownership, or a claim on others for future payment, such as a bond or a bank deposit.
quality
Definition of quality:

One dimension along which products can be differentiated. One basis for intraindustry trade is product differentiation in quality, together with differences in comparative advantage for producing quality as well as differences in preference for quality within a heterogeneous population.
of the big banks," Ismael Pili, a Tokyo-based analyst at Macquarie Group Ltd., said before yesterday's announcement. "If the banks decide to crank up equity
Definition of equity:

Share in the ownership of a corporation; more commonly called a stock, as in the stock market.
gains or come in with lower provisions, we see scope for higher profits."

Japan's second largest bank, Sumitomo Mitsui reported a 72.8 billion yen profit at the end of the second quarter as income from bond
Definition of bond:

A debt instrument, issued by a borrower and promising a specified stream of payments to the purchaser, usually regular interest payments plus a final repayment of principal. Bonds are exchanged on open markets including, in the absence of capital controls, internationally, providing a mechanism for international capital mobility.
trading increased and losses on stock investments fell. The bank is purchasing brokerage operations from Citigroup in Japan after raising an estimated 860 billion yen in a stock sale.

Mizuho Financial, however, posted an unexpected first-quarter loss of 4.5 billion yen, despite being ranked number three, due to higher credit
Definition of credit:

1. Recorded as positive (+) in the balance of payments, any transaction that gives rise to a payment into the country, such as an export, the sale of an asset (including official reserves), or borrowing from abroad. Opposite of debit.
2. A loan. For example, a trade credit.
costs and losses in derivatives contracts.

Bad-loan costs increased 189.8 billion yen from 141.7 billion yen a year earlier, after Mitsubishi UFJ made Acom Co, a consumer lender, a unit in October 2008. From the previous quarter, credit costs at the group's banking units fell by 26 percent to 73.3 billion yen.

Source: http://www.asiaecon.org
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