Adds details from earnings

By Anton Bridge

TOKYO, May 15 (Reuters) - Japan's third-largest lender Mizuho Financial Group 8411.T logged a 661% jump in fourth-quarter profit on Friday.

Net profit for the January-March period came in at 228.7 billion yen ($1.44 billion) compared to 30.1 billion yen over the same period a year prior.

Mizuho also booked its highest-ever annual net profit of 1.25 trillion yen and set its profit forecast for financial year ending March 2027 higher, at 1.3 trillion.

The results show the resilience of Japan's banking sector, which weathered last year's announcement of sweeping tariffs by U.S. President Donald Trump, as well as the uncertainty that followed, and has enjoyed robust results despite market volatility in 2026.

The end of deflation in Japan has proven lucrative for lenders as firms look for growth opportunities, including mergers and acquisitions and capital expenditure, which boost loan demand.

Alongside, the Bank of Japan's three interest rate hikes since March 2024 have widened lending margins, filling the banks' coffers further.

Mizuho's domestic loan balance grew to 57.8 trillion yen at the end of March from 56.9 trillion a year earlier while its loan and deposit rate margin grew to 1.1% for the 2025/26 financial year compared to 0.92% a year earlier.

On Wednesday, larger rival Sumitomo Mitsui Financial Group 8316.T also posted record annual profit and hiked its forecast for next year by 7.4%, anticipating a 1.7 trillion yen net profit.

Mizuho also announced a share buyback of 100 billion yen. On Wednesday SMFG had announced a 180 billion yen buyback.

($1 = 158.5500 yen)