Two of ½ñÈÕ³Ô¹Ï biggest banks raised their profit forecasts and unveiled share buybacks, after cashing in on rising interest rates and robust loan demand that put them on course for another record year.

Sumitomo Mitsui Financial Group now expects net income of ?1.9 trillion ($12 billion) for the year ending March 31, up from its earlier ?1.7 trillion projection. Mizuho Financial Group lifted its annual target to ?1.6 trillion from ?1.4 trillion.

Japanese lenders are on a record earnings streak thanks to the central bank¡¯s interest-rate hikes, with corporate borrowing showing few signs of slowing down so far. But economic risks are mounting as global investors grow jittery over the sustainability of the artificial intelligence (AI) boom and geopolitical conflicts keep energy prices elevated.