Japan Post Bank and Negative Interest Rates

company earnings: He sees the company earnings taking a bigger hit from the BOJ action than the nation three so-called megabanks, which unlike Japan Post have been expanding abroad and diversifying into fee businesses, according to The Japan Times. Domestic yields will deteriorate due to the introduction of negative interest rates, Nakamura said by phone. The postal bank, one of the biggest holders of Japanese government bonds, gets more than 90 percent of its profit from interest income, according to Shinichiro Nakamura, a Tokyo-based senior analyst at SMBC Nikko Securities Inc. And the larger the proportion of domestic interest income in profit, the larger the negative impact. Japan Post Bank, which went public as part of a ¥1.4 trillion initial public offering in November, has also parked almost a fifth of its assets at the BOJ. Central bank Gov. Yields on Japan benchmark 10-year sovereign notes fell below zero for the first time, touching a low of minus 0.035 percent Tuesday in Tokyo. (news.financializer.com). As reported in the news.