Leading Japanese Lender MUFG Expects 12% Drop in Full-Year Profit | Investment News
TOKYO (Reuters) – Japan’s biggest lender Mitsubishi UFJ Financial Group Inc (MUFG) said on Monday it expects a 12% drop in net profit for the current financial year due to market volatility and an uncertain economic outlook, after posting a record annual profit for the past year.
MUFG joins Sumitomo Mitsui Financial Group Inc (SMFG) and Mizuho Financial Group Inc, Japan’s No. 2 and No. 3 lenders respectively, to offer a cautious outlook.
MUFG, which owns about 20% of Wall Street bank Morgan Stanley, said it expects net profit of one trillion yen ($7.73 billion) for the current fiscal year. That’s below analysts’ forecast of 1.06 trillion yen, according to data from Refinitiv Eikon.
For the previous year that ended in March 2022, MUFG posted a record annual profit of 1.13 trillion yen ($8.73 billion) thanks to the release of cash from provisions that had been set up to make in the face of a possible flood of bad debts linked to the pandemic. .
However, the last quarter saw profits fall 64.4% as MUFG set aside 140 billion yen to cover potential losses from its exposure to Russia.
This brought the total Russian provisions of the three major Japanese banking groups to 312 billion yen.
(Reporting by Makiko Yamazaki; editing by Jason Neely and Susan Fenton)
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