Mitsubishi UFJ's Net Profit Surges Amid Smaller Losses on Debt Securities

By Kosaku Narioka

Mitsubishi UFJ Financial Group's nine-month net profit more than tripled thanks partly to smaller losses on debt securities and the absence of one-off expenses booked a year earlier related to the sale of a U.S. banking unit.

The Japanese financial company said Monday that net profit increased to 1.298 trillion yen ($8.75 billion) for the nine months ended Dec. 31 from Y343.175 billion in the year-earlier period. A year earlier, its bottom line was hit by losses on debt securities as well as special expenses related to the sale of MUFG Union Bank.

For the fiscal year ending March, the company said it aims to exceed net-profit guidance of Y1.300 trillion.

Third-quarter net profit was Y370.635 billion, given net profit of Y927.28 billion in the preceding six months, according to a Wall Street Journal calculation. That beat the estimate of Y259.48 billion compiled in a poll of analysts by data provider FactSet.

Nine-month revenue increased 25% from a year earlier to Y8.508 trillion.

The company recorded net losses on debt securities of Y197.03 billion, narrowing from the losses of Y572.39 billion recorded in the year-earlier period. It booked total credit costs of Y263.62 billion, compared with Y484.515 billion a year earlier.

Nine-month net fees and commissions rose 3.7% from a year earlier to Y1.183 trillion, and net interest income dropped 22% to Y1.800 trillion due to a high base a year earlier.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 05, 2024 03:08 ET (08:08 GMT)

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