Japan's megabanks clock record profits as higher borrowing costs boost margins

Japan's megabanks clock record profits as higher borrowing costs boost margins

FILE PHOTO: People are reflected in the logo of Mitsubishi UFJ Financial Group's bank of Tokyo-Mitsubishi UFJ (MUFG) in Tokyo, Japan, May 16, 2016. REUTERS/Thomas Peter/File Photo

Japan’s three megabanks raised their annual profit forecasts to all-time highs on Thursday, fuelled by robust lending demand and higher margins following a July interest rate hike by the Bank of Japan.