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MUFG Posts 48% Jump in First-Quarter Profit

Widening loan margins from higher domestic interest rates plus a large contribution from its Morgan Stanley stake have led the bank to reaffirm a record ¥2.7 trillion full-year profit target.

Overview

  • MUFG reported net income of ¥809.4 billion for the April–June quarter ended June 30, a 48% rise from a year earlier and above analyst estimates.
  • The bank said higher domestic interest rates and stronger loan demand widened the loan‑deposit spread to 1.15% from 0.95%, which drove most of the lending income gain.
  • MUFG's 24.2% stake in Morgan Stanley contributed ¥222.2 billion to quarterly profit as trading and wealth management revenues at the U.S. firm surged.
  • The lender increased domestic bond holdings by ¥1.37 trillion to ¥16.16 trillion while shortening average duration to 1.2 years, and logged ¥72 billion in bad‑loan costs well inside its ¥350 billion full‑year projection.
  • The results reflect a broader shift since the Bank of Japan ended negative rates, with higher yields encouraging corporate borrowing and lifting Japanese banks’ earnings and capital returns.