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Title: ICICI Bank Reports Higher-Than-Expected Profit

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

ICICI Bank Posts​ Strong Quarterly Profit, Driven by Declining Bad Loan Provisions

MUMBAI, Oct 26 -⁢ ICICI Bank, India’s‍ second-largest private sector lender, reported ‌quarterly profits exceeding analyst expectations, buoyed by‍ a significant decrease‌ in provisions ⁣set⁤ aside for potential losses on bad loans. The bank’s strong performance signals continued resilience within the ⁢Indian⁤ banking sector and offers ⁣a positive ​outlook amidst global economic ⁣headwinds.

The substantial reduction⁣ in non-performing⁢ asset (NPA) provisions allowed ICICI Bank to bolster its profitability,⁢ demonstrating improved asset quality and effective risk management. This outcome is⁣ particularly significant as ⁢Indian banks have historically grappled with high levels of stressed assets. The results ‍impact investors, depositors, and the broader Indian economy, potentially ‌influencing future lending rates​ and credit availability. analysts predict continued ⁢focus on⁢ prudent lending practices and⁢ digital innovation will be key‌ to sustaining this positive‌ trajectory.

ICICI Bank’s net profit for the July-September quarter ‌reached ₹10,648 crore (approximately $1.28 billion), a rise from ₹8,006 ‌crore in the same period last year,⁣ according to a regulatory filing. The‌ bank’s gross ‌non-performing assets ‌(GNPA) ratio declined to 1.71% ‍as of September ⁤30,compared to 2.23% a year⁣ ago.

“The improvement in asset⁢ quality is a key driver of the strong performance,” stated ⁣Sandeep Bakhshi, Managing ‌Director and CEO of ICICI Bank, ⁤in a post-earnings conference call.⁤ “We remain focused on maintaining a healthy ‌balance‍ sheet and supporting economic growth through responsible lending.”

The bank ​also reported a net⁢ interest margin⁣ (NIM) of 4.43%, ‌indicating healthy profitability from its core ⁣lending ​business. ‍ICICI Bank’s shares rose as‌ much as 3% in early trading following the announcement,​ reflecting⁤ investor confidence⁤ in⁤ the bank’s performance and future prospects.

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Business

Exclusive: Japan’s Rakuten weighing US IPO of credit card business, sources say

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Rakuten Group Corp is considering an initial public offering⁢ (IPO) of ⁤its credit card business in the United States, potentially valuing the unit at more than $8.6 billion, people with knowledge of the matter said.

The Japanese ‌e-commerce and fintech conglomerate is working with‍ advisors to explore a listing that could occur as early as next year, the sources said. ⁣An IPO would allow Rakuten to ‌unlock value ⁢from the ​fast-growing credit card division and fund further expansion in a competitive market. Rakuten’s credit card business, known for its rewards program and partnerships, has seen significant growth in ⁢recent years, fueled by ⁤increasing consumer ⁤spending and a​ shift towards digital ‌payments.The move comes as Rakuten⁣ seeks to streamline its operations and focus⁣ on core‌ businesses, following ⁢a period of investment in areas like mobile ⁤communications and fintech.

rakuten ‌is weighing a U.S. ⁣IPO to‌ capitalize on investor ‌appetite for high-growth fintech companies and potentially achieve a higher valuation than ‌it could in Japan,the sources added. The company aims‌ to leverage the U.S. market’s deeper pool of capital and broader⁤ investor base. The potential IPO could be one of the largest fintech listings in recent years, attracting significant attention from Wall Street.

The ‌credit ⁤card‌ unit’s revenue rose 18% to⁣ 256.8 billion yen ($1.7 billion)⁣ in the first half of 2024, according to Rakuten’s earnings report. It boasts over 21 million cardholders. ​Rakuten has not finalized the details of the IPO, including the size of the offering and the ‌exchange where it will be listed, and the plans could change, the sources cautioned. Representatives for⁢ Rakuten declined⁢ to comment.

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Business

Seven & i HD aims to operate operating revenue of 11.3 trillion yen in fiscal 2018, and new stores are opening | Reuters

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Seven & i Maps Massive 7.5 Trillion Yen Investment & Shareholder Return Plan

Convenience giant targets significant growth and investor payouts by 2030

Seven & i Holdings is set to inject a colossal 7.5 trillion yen into its operations between fiscal years 2025 and 2030, signaling an aggressive push for growth and substantial returns for its shareholders.

Strategic Capital Allocation Unveiled

The retail conglomerate plans to dedicate approximately 3.2 trillion yen towards strategic growth initiatives, with a focus on “bolt-on” mergers and acquisitions that offer synergistic benefits to its existing business portfolio. Concurrently, roughly 2.8 trillion yen is earmarked for shareholder returns, prominently featuring a 2 trillion yen share buyback program.

The logo of Seven & i Holdings is shown. (Reuters)

Ambitious Financial Targets Set

By fiscal 2030, Seven & i aims to reach approximately 11.3 trillion yen in sales, a significant increase from its fiscal 2022 performance of 10 trillion yen under its consolidated convenience store operations in Japan and abroad. The company projects a total operating profit of 3.4 trillion yen and an EBITDA of 1.3 trillion yen. Return on Invested Capital (ROIC) is targeted at around 12.6%, with Earnings Per Share (EPS) expected to reach 210 yen.

Leadership’s Vision for Growth

President Stephen Hayes Deicas expressed confidence that achieving these plans would elevate the company’s stock value to par with Canadian retail giant Alimentation Couche-Tard. He also revealed plans for an initial public offering (IPO) of 7-Eleven North America by the second half of fiscal year 2026, anticipating that this move will crystallize its value and provide capital for further investment and shareholder returns.

“We have not been able to gain as trust as our customers as before. We are unable to actively accept changes as our founders did. There are parts that we are restoring our current situation. Our brand image is declining.”

—Stephen Hayes Deicas, President

The company is also focusing on enhancing its domestic convenience store business, Seven-Eleven Japan (SEJ), by adding approximately 1,000 new stores by fiscal 2018 and investing in over 5,000 existing locations to bolster food supply capabilities. In North America, the strategy includes opening 1,100 new stores, many featuring restaurants, to boost competitive advantage in fresh food offerings. In 2023, U.S. convenience store sales reached $45.9 billion. (Statista, 2023).

Revitalizing Brand and Operations

Deicas acknowledged a perceived decline in the brand’s image and customer trust, emphasizing a commitment to regaining the company’s founding spirit. He highlighted that this new strategic plan, developed under his leadership, offers clear objectives and timelines, a departure from previous approaches, and clarifies the role of the holding company in strengthening management processes.

Following Alimantasyon Kstaal‘s withdrawal of its acquisition proposal, Seven & i is under pressure to independently enhance its corporate value. The company is divesting its supermarket business, York Holdings, and has completed the deconsolidation of Seven Bank, streamlining its focus on the convenience store sector starting September.

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Business

Mazda Profit Plummets Amid US Tariffs, Forecasts 50 Billion Yen Loss

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

Tokyo, Japan – A Japanese company reported a profit of 46.1 billion yen for the recent fiscal period, a decline from the 50.3 billion yen earned in the same period last year. The financial results, released today, highlight the ongoing impact of global tariffs, despite mitigation efforts.

The company initially faced a 69.7 billion yen impact from tariffs. Though, strategic cost reductions adn a shift in sales composition have lessened the burden to 49.6 billion yen. thes adjustments included streamlining fixed costs and prioritizing product lines less susceptible to tariff increases.

Free cash flow experienced a significant downturn, posting a deficit of 96.8 billion yen compared to a surplus of 105.7 billion yen in the previous year. Company officials stated they are actively working to reverse this trend and project a return to positive free cash flow for the full fiscal year. The company did not specify the industry it operates in, or the specific regions affected by the tariffs.

The report was edited by Shiraki Maki and Tanaka Shiho of Thomson Reuters, who adhere to the Thomson Reuters Trust Principles.

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Business

FANUC expects slight increase in profits this fiscal year; US tariffs will be passed on by price | Reuters

by Priya Shah – Business Editor
written by Priya Shah – Business Editor

FANUC Forecasts Modest Profit Growth Amid Tariff Uncertainty

Robotics giant anticipates 0.4% rise in operating profit for FY26, plans price adjustments

Industrial robotics leader FANUC projects a slight increase in operating profit for the fiscal year ending March 2026, anticipating 159.5 billion yen. This forecast, announced on July 25th, comes as the company prepares to absorb a potential 15% U.S. tariff starting August 1st.

Navigating Trade Tensions

President **Kenji Yamaguchi** stated that the increased costs stemming from tariffs will “basically be asked to pass on prices,” expressing confidence that price adjustments can offset the impact. This marks a shift from April, when the company withheld its forecast, opting to assess the situation meticulously.

FANUC sees potential for a more active capital investment environment in the United States, even with the tariffs. The company highlighted robust demand in sectors like logistics, driven by labor shortages, which could fuel growth for its robotic solutions beyond the traditional automotive industry.

Analysts Undershoot Expectations

The company’s projection falls short of the consensus among 23 analysts surveyed by IBES, who had forecast an average operating profit of 169.6 billion yen. FANUC’s forecast also assumes an exchange rate of 141.15 yen to the dollar and 160.95 yen to the euro for the fiscal year, with a stronger yen factored in from the second quarter.

First Quarter Performance Shows Resilience

For the April-June quarter, FANUC reported a consolidated sales increase of 0.6% year-on-year, reaching 196.3 billion yen. Operating profit saw a significant jump of 28.7%, hitting 42.4 billion yen. “There are some customers who have postponed capital investments due to the impact of US tariffs, but demand is solid,” President **Yamaguchi** noted.

Sales of robot machines and Factory Automation (FA) equipment were strong, particularly in India. However, the robot market in Japan, Europe, and the United States experienced a slowdown, largely attributed to reduced automotive sales. While China and Asia showed substantial growth, the Americas and Europe saw sales declines.

The FANUC logo, seen here in March 2024 near Paris, is central to the company’s global operations.

Total orders received decreased by 2.6% from the previous quarter to 205.9 billion yen. Factory automation orders climbed 8.5% to 55 billion yen, influenced by a temporary factor. Robot orders saw a slight dip of 0.3% but are expected to remain at elevated levels.

The global industrial robotics market is expected to grow to $81.15 billion by 2028, indicating continued demand for automation solutions despite economic headwinds (Global Market Insights 2023).

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Business

Mitsui Sumitomo’s Record Profit Forecast: 1.3 Trillion Yen

by Chief editor of world-today-news.com
written by Chief editor of world-today-news.com

Mitsui Sumitomo Financial Group Projects Record Profits Despite Economic Headwinds

Tokyo – Mitsui Sumitomo Financial Group (8316.T) anticipates a significant surge in its financial performance,forecasting a 10.4% increase in consolidated net profit for the fiscal year ending March 2026.The company announced on May 14 that it expects profits too reach 1.3 trillion yen, marking a potential record high for the third consecutive year.

Did you know? Mitsui Sumitomo Financial Group is one of the largest financial institutions in Japan,providing a wide range of services including banking,insurance,and asset management.

Navigating Uncertainty

Despite the optimistic outlook, the financial giant acknowledges growing uncertainties in the global economic landscape. Uncertainty about the future is increasing, and some are beginning to negatively impact on businesses, said President Nakajima Tatsushi at the financial statement press conference. Tho, he added, We can maintain the main business’s profit growth trend, which has been in place as last year.

The Impact of U.S. Tariff Measures

One significant factor influencing the forecast is the impact of U.S. tariff measures, which are projected to negatively affect net profit by approximately 100 billion yen. This calculation takes into account several factors:

  • Decline in stock prices
  • Impact of reduced profits from selling policy stocks
  • Effects on the financial needs of client companies
  • Decline in long-term interest rates
  • A strong yen

President Nakajima emphasized that due to these tariff measures, all of the various indicators are shifting in a negative direction. He noted that considerations such as corporate mergers and acquisitions (M&A) and large-scale capital investments are increasingly being postponed.

Share Buyback Declaration

In a move to bolster investor confidence, Mitsui Sumitomo Financial Group also announced a share buyback program. The company plans to repurchase a maximum of 40 million shares, representing 1.0% of the total number of issued shares, with a total investment of 100 billion yen.

Pro Tip: Share buybacks can increase earnings per share and return value to shareholders, often signaling that the company believes its stock is undervalued.

President Nakajima explained that, considering the uncertain habitat and current capital levels, the company will initially acquire up to 100 billion yen worth of shares and will consider implementing the system flexibly during the period.

Analyst Expectations and Previous Year’s Performance

The company’s forecast aligns closely with analyst expectations. According to a consensus forecast of 12 analysts compiled by IBES, the average net profit was projected to be 1.346 trillion yen.

For the fiscal year ending March 2023, Mitsui Sumitomo Financial Group reported a consolidated net profit of 1.178 trillion yen, a 22.3% increase from the previous year. This strong performance was attributed to the Bank of Japan’s interest rate hike, which boosted deposit and lending revenues both domestically and internationally, and also profits from selling shares held in the policy.

Preparing for Potential Recession Risks

In anticipation of potential recession risks, such as those stemming from U.S. tariff measures, the company implemented a 90 billion yen forward-looking allowance.

Frequently Asked Questions (FAQ)

What is Mitsui Sumitomo Financial Group?
Mitsui sumitomo Financial Group is a major Japanese financial services company offering banking, insurance, and asset management.
What is the expected net profit for the fiscal year ending March 2026?
The company expects a consolidated net profit of 1.3 trillion yen.
What is the impact of U.S. tariff measures on the company’s profits?
U.S. tariff measures are expected to negatively impact net profit by around 100 billion yen.
what is a share buyback?
A share buyback is when a company repurchases its own shares from the open market, reducing the number of outstanding shares.
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