MITSUBISHI UFJ Financial Group reported quarterly profit that beat estimates, joining smaller rival Mizuho Financial Group in pointing to higher revenue from loans driven by rising rates in Japan.
The nation’s largest bank said net income came in at 555.9 billion yen (S$5 billion) for its fiscal first quarter ended in June, accounting for more than a third of its annual projection of 1.5 trillion yen. The results were well above the 410.9 billion yen estimate of four analysts surveyed by Bloomberg. Profit fell slightly from the year earlier period which was boosted by accounting changes around its 23 per cent stake in Morgan Stanley.
Shares of the country’s lenders soared after the Bank of Japan tightened monetary policy on Wednesday (Jul 31), in a move that’s set to boost lending revenues for banks. MUFG’s banking arm in turn said it plans to raise its short-term prime rate in September.
The beat comes after Mizuho reported results that beat analysts’ expectations, driven by its lending and trading businesses. BLOOMBERG
