Japan's top bank Mitsubishi UFJ says Q3 profit triples
MITSUBISHI UFJ Financial Group, Japan’s largest lender by assets, on Monday (Feb 5) reported its third-quarter net profit tripled.
Mitsubishi UFJ posted a net profit of 370.64 billion yen (S$3.35 billion) for the October-December period, against 112.08 billion yen a year earlier, according to Reuters’ calculations based on nine-month cumulative figures disclosed in a filing.
The jump in profit partly reflected an accounting loss a year earlier related to the sale of US unit MUFG Union Bank.
The Japanese bank maintained its annual profit forecast at 1.3 trillion yen, which would be a fresh record for the bank, compared with an average forecast of 1.406 trillion yen from 13 analyst estimates compiled by LSEG.
MUFG’s soaring profit followed a robust showing from its largest rivals, Sumitomo Mitsui Financial Group and Mizuho Financial Group, whose lending businesses had benefited from increased growth investment by Japanese companies.
The loss MUFG registered in the third quarter of last year from the US$8 billion sale of its US unit was mostly offset by an accounting gain the following quarter.
The megabanks’ results contrast with midsize domestic lender Aozora Bank, which last week forecast its first annual net loss in 15 years on massive loan-loss provisions due to exposure to US commercial property loans.
Shortly prior, New York Community Bancorp announced a dividend cut and surprise loss on the same exposure, sparking fear for US regional banks reminiscent of last year’s banking crisis. REUTERS
Share with us your feedback on BT's products and services
