SMFG raises 2014 profit forecast by 29%

First-half earnings climb to a record.

Sumitomo Mitsui Financial Group, Inc, Japan’s second-biggest bank by market value, said net income will probably total US$7.5 billion in the year ending March 31, 2014. This compares to the US$5.8 billion previously forecast.

On the other hand, net income jumped 53% in the six months ended Sept. 30 from a year earlier to US$5.1 billion, the highest half-year earnings in SMFG’s history. Fees and commissions rose 22% from April to September on-year to US$4.9 billion.

Lending at major banks has risen for 11 months and corporate bankruptcies have fallen as Japan recovers on the back of Prime Minister Shinzo Abe’s stimulus measures or “Abenomics.” Japan’s equity resurgence has improved SMFG’s fee income and increased the value of its shareholdings.