Mitsubishi UFJ Financial Group Inc. posted a 3.8% year-over-year increase in net profit for the fiscal first half ended Sept. 30.
The company reported net profit attributable to equity holders of ¥650.80 billion, up from ¥626.94 billion in the prior-year period. The lender posted EPS of ¥49.49, up from EPS of ¥46.86 in the prior-year period.
Mitsubishi UFJ Financial attributed the rise primarily to an improvement in credit costs as well as an increase in profit from its investments in Morgan Stanley. The Japanese company holds a 24.28% stake in Morgan Stanley.
Net interest income dropped year over year to ¥970.28 billion from ¥973.62 billion, and net fee and commission income came to ¥633.75 billion, compared to ¥637.17 billion in the prior-year period. Ordinary income rose to ¥3.376 trillion from ¥3.068 trillion, while ordinary profit came to ¥885.92 billion, compared to ¥864.02 billion in the prior-year period.
Credit costs for the period declined to ¥47.00 billion from ¥88.76 billion in the prior-year period.
Group unit MUFG Bank Ltd. posted net profit of ¥402.78 billion for the period, up 7.1% year over year from ¥376.02 billion. The bank's net interest income came in at ¥800.18 billion, compared to ¥808.89 billion in the prior-year period, while net fees and commissions came in at ¥338.31 billion, compared to ¥338.40 billion.
Mitsubishi UFJ Trust & Banking Corp., another unit of the group, reported net profit of ¥72.03 billion, down 28.94% year over year from ¥101.38 billion. The bank's net interest income increased to ¥74.91 billion from ¥73.39 billion.
As of Sept. 30, the company's total capital ratio clocked in at 15.82%, down from 16.56% at March 31. The lender's common equity Tier 1 ratio was 12.02%, down from 12.58% at March 31, while its Tier 1 ratio dropped to 13.67% from 14.32% over the same period. The group declared an interim dividend of ¥11.00 per share, up from ¥9.00 per share for the prior-year period.
The Japanese megabank revised its guidance for full-year net profit to ¥950 billion, from ¥850 billion previously, to reflect its subsidiaries' strong performance for the fiscal first half.
Further, the company announced a plan to repurchase up to 200 million shares, or 1.52% of the total number of shares on issue, for up to ¥100 billion. The buyback program will take place between Nov. 14 and Dec. 31. The shares bought back are scheduled to be canceled Jan. 22, 2019.
As of Nov. 12, US$1 was equivalent to ¥113.69.
