Mitsubishi UFJ Financial Group (MUFG) reported a 48 per cent jump in first-quarter net profit as strong loan demand and wider lending margins boosted earnings despite continued volatility in global markets.
Japan’s largest lender by assets recorded net profit of 809.4 billion yen (US$5.2 billion) for the April to June quarter, up from 546 billion yen a year earlier.
The results add to a strong earnings run for Japan’s major banks, with Sumitomo Mitsui Financial Group and Mizuho Financial Group also reporting record annual income last year and forecasting fresh records for the financial year ending March 2027.
Japanese banks have benefited from the end of the country’s long deflationary period, which has encouraged companies to borrow for domestic and overseas investment, capital expenditure and mergers and acquisitions.
Higher interest rates have also supported lenders by widening loan margins. MUFG’s loan and deposit spread on domestic loans rose to 1.15 per cent in the latest quarter from 0.95 per cent a year earlier.
Reuters
