TOKYO :Mitsubishi UFJ Financial Group (MUFG), Japan’s largest lender by assets, on Monday reported third-quarter net profit that tripled from the same period a year prior when earnings were pulled down by an asset sale.
MUFG posted profit of 370.64 billion yen ($2.50 billion) for October-December, against 112.08 billion yen a year earlier, showed Reuters’ calculations based on nine-month cumulative figures disclosed in a stock exchange filing.
The jump in profit partly reflected an accounting loss a year earlier related to the sale of U.S. unit MUFG Union Bank.
The Japanese bank maintained its annual profit forecast at 1.3 trillion yen – which would be a record for the bank – compared with the 1.406 trillion yen average of 13 analyst estimates compiled by LSEG.
MUFG’s soaring profit followed a robust showing from its largest rivals, Sumitomo Mitsui Financial Group and Mizuho Financial Group, whose lending businesses had benefited from increased growth investment by Japanese companies.
The loss MUFG registered in the third quarter of last year from the $8 billion sale of its U.S. unit was mostly offset by an accounting gain the following quarter.
The megabanks’ results contrast with midsize domestic lender Aozora Bank, which last week forecast its first annual net loss in 15 years on massive loan-loss provisions due to exposure to U.S. commercial property loans.
Shortly prior, New York Community Bancorp announced a dividend cut and surprise loss on the same exposure, sparking fear for U.S. regional banks reminiscent of last year’s banking crisis.
($1=148.3200 yen)
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