MUFG Beats Estimates, Affirms ¥2 Trillion Profit Goal

Mitsubishi UFJ Financial Group reported April–June net income of ¥546.07 billion, comfortably ahead of the ¥490.13 billion consensus. Profit fell 1.8% from a year earlier because of a one-off change in a subsidiary’s accounting period, but MUFG said underlying earnings rose 2.2% on stronger loan demand at home and overseas and lower credit costs. Japan’s largest lender kept its guidance for a record ¥2 trillion full-year profit, matching last year’s all-time high and broadly in line with the ¥2.03 trillion market forecast. The reaffirmed target caps a robust reporting season for the country’s three megabanks, which have benefited from higher lending margins after the Bank of Japan ended negative interest rates and carried out two subsequent hikes. Trading-house parent Mitsubishi Corp also posted better-than-expected earnings, with first-quarter net income rising to ¥203.12 billion against a ¥156.7 billion consensus. The company maintained its outlook for ¥700 billion in full-year profit and kept its dividend projection at ¥110 a share, signalling a cautious stance despite the early profit beat.