Japan’s gradual exit from its ultra-easy monetary policies has helped send Japanese banks into overdrive, with the Topix Banks index more than doubling in the past two years. Japan’s three megabanks—Mitsubishi UFJ, Sumitomo Mitsui and Mizuho—have all reported record profits for their fiscal years ended in March and are forecasting another record year. Bloated balance sheets have dragged down returns: …
