Major Japanese firms are set to post a record combined net profit for the fourth straight year in fiscal 2024, driven by Bank of Japan rate hikes and strong AI-driven chip demand, SMBC Nikko Securities said. Total net profit is projected at JPY52.65tr (USD346.5bn) for the year ending March, up 7.4% from a year earlier. The banking sector is expected to grow 23.4%, securities firms 30.5%, and insurers 33.4%. Manufacturing profits will decline 2.1%, with transportation equipment down 16.1%. Electronics is set to rise 13.7%, benefiting from AI expansion. Non-manufacturing profit is expected to increase 12.9%, with marine transport surging 86.8% ahead of potential US tariffs. Analysts warn that US trade policies could weigh on corporate earnings in the coming months.