Mitsubishi UFJ Raises Full-Year Profit Goal, Announces $1.6 Billion Share Buyback

By Kosaku Narioka

Mitsubishi UFJ Financial Group raised its full-year net profit goal and announced a $1.6 billion share buyback after reporting higher first-half net profit.

The Japanese financial company said Friday that net profit rose 2.8% from a year earlier to 1.293 trillion yen, equivalent to $8.37 billion, for the six months ended September. That beat the estimate of Y1.097 trillion in a poll of analysts by data provider Quick.

For the fiscal year ending March 2026, Mitsubishi UFJ said it will target a 13% increase in net profit to Y2.1 trillion, up from its previous goal of Y2.0 trillion.

Mitsubishi UFJ said it plans to buy back up to Y250.0 billion of its shares by the end of February.

First-half net fees and commissions rose 10% to Y1.000 trillion, while net interest income--the difference between interest earned on loans and that paid on deposits--declined 4.5% to Y1.440 trillion.

Mitsubishi UFJ booked total credit costs of Y76.39 billion in its first half, down from Y185.77 billion a year earlier.

The stock has risen 33% year to date, buoyed by expectations of gradual rate increases by the Bank of Japan.

Japanese government bond yields have been trending higher over the past few years as the BOJ left behind a long period of negative rates and gradually raised rates.

Higher government bond yields generally allow banks to charge higher interest rates on commercial loans and receive higher yields on bonds and other investments.

The 10-year JGB yield in October climbed to 1.700%, its highest level since July 2008.

The BOJ held its policy rate steady in October, extending a pause since its last increase in January, as it waited to see more signs of wage growth and examine the risks stemming from U.S. tariffs.

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

(END) Dow Jones Newswires

November 14, 2025 04:02 ET (09:02 GMT)