Mitsubishi UFJ Financial Group (NYSE:MUFG) reported a record profit of JPY 586.3 billion for the fiscal year ending March 31, 2026, and set a profit target of JPY 2.7 trillion for fiscal 2026, a 10% increase from the previous year. The bank’s Return on Equity (ROE) reached 11.3% for the first time since its establishment, exceeding its medium-term target of 12%.
For fiscal 2025, gross profits rose by JPY 1,290.2 billion, driven by higher net interest income fueled by increasing yen interest rates and expanded lending. MUFG’s loan portfolio grew by JPY 12.3 trillion, with total credit costs increasing by JPY 290.6 billion year over year, aligning with initial forecasts. However, the common equity Tier 1 (CET1) ratio fell to 9.2%, below the company’s target range, influenced by increased lending and strategic investments.
MUFG also announced a dividend increase to JPY 86 for fiscal 2025, up from JPY 64 the previous year, with plans for a JPY 100 billion share repurchase program in the first half of fiscal 2026. The profitability forecasts assume a potential Bank of Japan rate hike later in the year that could positively impact earnings by JPY 100 billion.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
