Japan's Bank of Tokyo-Mitsubishi UFJ Ltd. is looking to spend about ¥100 billion on acquisitions in the banking space in the U.S. and Asia in order to expand global operations amid declining profitability in its home market, Bloomberg News reported Oct. 11, citing Kanetsugu Mike, CEO of the bank.
Mike said overseas investments remain "a driver of growth for both the bank and the group," adding that any decision on potential acquisitions would be based on strategic fit, price and profitability. He, however, noted that U.S. targets may be expensive given the nation's surging stock market.
Bank of Tokyo-Mitsubishi UFJ, a unit of Mitsubishi UFJ Financial Group Inc., has been active in Asia in recent years, buying stakes in lenders in the Philippines, Thailand and Vietnam. Its most-recent purchase in the banking sector involved acquisition of a 20% stake in the Philippines' Security Bank Corp. for 36.94 billion pesos in April 2016.
Meanwhile, Reuters reported that Mitsubishi UFJ Financial is planning to automate 30% of operations at Bank of Tokyo-Mitsubishi UFJ by March 2024 in a bid to free bankers to better serve the bank's wealthier clients. The automation would involve using software robots and artificial intelligence to do the paperwork of up to 9,500 employees.
As of Oct. 11, US$1 was equivalent to ¥112.28, and 51.44 Philippine pesos.