(Bloomberg) -- Mizuho Financial Group Inc.’s profit more than doubled on smaller bad loan costs and bigger gains on the sale of cross shareholdings.

Net income at Japan’s third-largest bank came in at 209.3 billion yen ($1.6 billion) for the quarter ended Dec. 31, according to Bloomberg calculations based on nine-month results released Thursday. That compares with the 135.6 billion yen average estimated by five analysts.

Bank stocks in Japan have surged since the country’s central bank made an unexpected move to tweak its yield curve control program in December, raising speculation it was paving the way to scrap its ultra-loose policy settings that hurt profitability at lenders. 

Mizuho retained its full-year profit forecast at 540 billion yen, below the 564.4 billion yen average estimate by 14 analysts.

--With assistance from Russell Ward.

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