'Record-breaking' Yen Depreciation and Endemic... 67% of Major Japanese Companies See Profit Increase

Impact of Yen Depreciation on Price Increases and Daily Recovery
Nikkei "Concerns Over Uncertainty in China's Economy"

It has been revealed that two-thirds of major Japanese companies achieved an increase in net profit in the second quarter of this year. The main reasons are price hikes due to inflation, the recovery of daily life after COVID-19, and the weak yen.

According to Nihon Keizai on the 19th, an analysis of the second-quarter performance of 1,167 companies listed on the Tokyo Stock Exchange Prime Market, mainly large corporations, showed that net profit increased in 24 out of 36 industries (66.7%).

The total net profit amounted to 12.6648 trillion yen (approximately 117 trillion won), a 50% increase from last year, and total sales increased by 8% during the same period to 184.1431 trillion yen (approximately 1,695 trillion won).

Among manufacturers, Toyota Motor, the largest company, recorded an all-time high with net profit rising 78% to exceed 1.3 trillion yen (approximately 12 trillion won). The "record-breaking" weak yen phenomenon supported the improvement in the performance of export companies. The yen-dollar exchange rate averaged 137 yen in the second quarter, up 10 yen from the same period last year.

In the non-manufacturing sector, net profit increased or turned positive in 70% of industries such as electric power and banking. In particular, 9 out of 10 major electric power companies raised household electricity rates in the second quarter of this year, resulting in profits.

The banking sector also saw a 50% increase in net profit during this period. The combined net profit of Japan's three major banks?Mitsubishi UFJ, Mitsui Sumitomo, and Mizuho?reached 1.0515 trillion yen (approximately 9.68 trillion won), surpassing 1 trillion yen for the first time in the second quarter. SoftBank Group (SBG) reduced its deficit by about 2.7 trillion yen (approximately 24.9 trillion won) due to the Vision Fund's return to profitability, which invests in the global IT sector.

The Nikkei reported, "Japanese companies are expected to achieve the highest net profit for the third consecutive year for the entire 2023 fiscal year," but added, "However, uncertainties such as the Chinese economy are also increasing."

This content was produced with the assistance of AI translation services.