Mitsubishi UFJ Financial Group (MUFG) has reported a significant increase in its net profit for the nine-month period ended December 31st. The company’s net profit tripled to 1.298 trillion yen ($8.75 billion), a substantial improvement compared to the year-earlier figure of Y343.175 billion.
One of the major factors behind this impressive performance is the reduction in losses on debt securities. Additionally, MUFG benefited from not incurring any one-off expenses related to the sale of its U.S. banking unit, which had negatively impacted its previous year’s earnings.
For the current fiscal year ending in March, MUFG has set an ambitious goal to surpass its net-profit guidance of Y1.300 trillion.
In the third quarter alone, MUFG achieved a net profit of Y370.635 billion, surpassing the net profit of Y927.28 billion generated in the preceding six months. This result exceeded the expectations of analysts, who had estimated a net profit of Y259.48 billion.
Over the nine-month period, MUFG witnessed a substantial increase in revenue, rising by 25% to Y8.508 trillion compared to the previous year.
Notably, MUFG managed to reduce its losses on debt securities to Y197.03 billion, a significant improvement from the losses of Y572.39 billion incurred during the same period last year. Furthermore, the company recorded total credit costs of Y263.62 billion, compared to Y484.515 billion in the previous year.
During the nine months, net fees and commissions increased by 3.7% year-on-year to Y1.183 trillion, while net interest income decreased by 22% to Y1.800 trillion. The decline in net interest income can largely be attributed to the high base effect from the previous year.
MUFG’s impressive financial results demonstrate its resilience and growth potential in the challenging financial landscape.