Mitsubishi UFJ Quarterly Profit Jumps 48%, Beats Estimates
Mitsubishi UFJ Financial Group said Monday that net profit for the quarter ended in June rose 48% from a year earlier to ¥809.43 billion (about $5.14 billion), exceeding the ¥644.01 billion forecast from analysts surveyed by data provider S&P Global Market Intelligence. The Japanese bank said it is maintaining its target of increasing net profit 11% to ¥2.7 trillion for the fiscal year ending in March 2027. Domestic loan rates have risen steadily as the Bank of Japan has raised interest rates, while Japanese government bond yields—which serve as a reference for bank lending rates—have also increased over the past year. On Friday, the BOJ kept its policy rate at 1.0%, after raising it in June to a 30-year high and saying underlying inflation could exceed its 2% target. Last month, the yield on 10-year Japanese government bonds rose to 2.900%, its highest level since September 1996. Rising government bond yields typically allow banks to charge higher rates on commercial loans and earn higher yields on bonds and other investments. Mitsubishi UFJ shares have surged 43% year to date on expectations for stronger earnings, following a 35% gain in 2025. First-quarter net interest income—the difference between interest earned on loans and interest paid on deposits—increased 28% to ¥882.4 billion, helped by wider domestic lending margins and growth in loan balances. Net fees and commissions also rose 21% to ¥558.17 billion. The company reported total credit costs of ¥72.06 billion in the first quarter, up from ¥46.94 billion a year earlier. It also recorded a net loss of ¥35.04 billion on debt securities, compared with ¥28.25 billion in the same period last year.
The Japanese bank said it is maintaining its target of increasing net profit 11% to ¥2.7 trillion for the fiscal year ending in March 2027.
Domestic loan rates have risen steadily as the Bank of Japan has raised interest rates, while Japanese government bond yields—which serve as a reference for bank lending rates—have also increased over the past year. On Friday, the BOJ kept its policy rate at 1.0%, after raising it in June to a 30-year high and saying underlying inflation could exceed its 2% target.
Last month, the yield on 10-year Japanese government bonds rose to 2.900%, its highest level since September 1996. Rising government bond yields typically allow banks to charge higher rates on commercial loans and earn higher yields on bonds and other investments.
Mitsubishi UFJ shares have surged 43% year to date on expectations for stronger earnings, following a 35% gain in 2025.
First-quarter net interest income—the difference between interest earned on loans and interest paid on deposits—increased 28% to ¥882.4 billion, helped by wider domestic lending margins and growth in loan balances. Net fees and commissions also rose 21% to ¥558.17 billion.
The company reported total credit costs of ¥72.06 billion in the first quarter, up from ¥46.94 billion a year earlier. It also recorded a net loss of ¥35.04 billion on debt securities, compared with ¥28.25 billion in the same period last year.