Mitsubishi UFJ Maintains Annual Profit Goal — Update

By Kosaku Narioka

Mitsubishi UFJ Financial Group maintained its annual net profit target after reporting higher nine-month earnings, supported by wider domestic lending spreads.

The Japanese financial company said Wednesday that net profit rose 3.7% from a year earlier to 1.814 trillion yen, equivalent to $11.65 billion, for the nine months ended December.

For the fiscal year ending March, Mitsubishi UFJ reiterated its target of a 13% increase in net profit to Y2.1 trillion.

Nine-month net interest income--the difference between interest earned on loans and that paid on deposits--rose 0.9% to Y2.193 trillion as domestic lending spreads widened. Net fees and commissions climbed 10% to Y1.560 trillion.

The stock has risen 18% so far this year, driven by prospects of earnings growth thanks to the Bank of Japan's gradual rate increases and higher lending rates.

The Japanese central bank held its policy rate steady last month after raising it in December to 0.75%, the highest level in three decades.

On Jan. 20, the 10-year Japanese government bond yield rose to 2.380%, the highest since February 1999.

Higher government bond yields generally allow banks to charge higher interest rates on loans and receive higher yields on bonds and other investments, though sharp gains in yields could cause valuation losses on bonds.

Mitsubishi UFJ recorded net losses on debt securities of Y68.70 billion for the nine months, smaller than losses of Y221.18 billion in the year-earlier period. It booked total credit costs of Y219.79 billion, down from Y251.00 billion the prior year.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 04, 2026 03:25 ET (08:25 GMT)