Two of Japan’s largest lenders posted profits that beat analysts’ forecasts in their fiscal first quarter, marking a solid start to the year that is projected to deliver bumper results.

Sumitomo Mitsui Financial Group said net income for the quarter ending June 30 was ¥248 billion ($1.75 billion), above an average estimate of ¥236.1 billion by six analysts. This was about 1.8% lower than the same period a year ago.

Mizuho Financial Group’s net income was ¥245.2 billion in the same period, an increase of about 54% from a year earlier, according to the company’s filing. That compares with an average estimate of ¥159.5 billion by four analysts.

Unlike banks in the United States and elsewhere, Japanese lenders have yet to see interest rate hikes at home, with the central bank for now sticking to its negative interest rate policy under its new governor, Kazuo Ueda.

Still the country’s bank stocks have risen sharply this year on hopes of an eventual policy pivot. They had extended these gains after the Bank of Japan loosened its grip on bond yields on Friday, a move seen by many investors as akin to policy tightening that may help boost banks’ earnings. The Topix bank index has rallied to an eight-year high.

Net interest income at Sumitomo Mitsui fell 2.6% to ¥420.5 billion, while it fell 14% to ¥217.6 billion at Mizuho, Japan’s third-largest lender.

Bad loan costs at Sumitomo Mitsui and Mizuho remain subdued during the first quarter, even with a pickup in the number of bankruptcies in Japan following the end of the government’s pandemic relief.

The two banks kept their annual profit projections that were set earlier in the year. Sumitomo Mitsui’s net income forecast of ¥820 billion for the year ending March 2024 would be its biggest in the past 10 years, while Mizuho’s predicted net income of ¥610 billion would be its most in eight years.

Japan’s largest lender Mitsubishi UFJ Financial Group will announce its results on Tuesday.