Japan's Mitsui, Mitsubishi profit climbs on asset sales, weaker yen
The company logo of Mitsubishi Motors is seen at its headquarters in Tokyo, Japan, May 13, 2016. (Photo: REUTERS/Issei Kato)
TOKYO: Mitsubishi UFJ Financial Group (MUFG) booked a 0.4 per cent drop in first-quarter profit due to a change in a reporting period at an overseas subsidiary and affiliate, but profits across its customer segments grew.
Japan's largest lender by assets reported group net profit of ¥556 billion (US$3.7 billion) for April-June, compared with 558 billion yen in the same period a year earlier.
Adjusting for changes in the accounting period at MUFG affiliate Morgan Stanley, in which it holds a 23 per cent stake, and Thai subsidiary Bank of Ayudhya, profits rose by ¥55 billion, or 11.7 per cent, compared to the same period a year prior.
The falling value of the yen over the period was a fillip to MUFG's exporting clients, whose increased demand for funding and consulting services boosted fees.
The weak yen boosted net profit by around ¥25 billion as compared to the same period a year ago.
But the impact of the end of negative interest rates from March was more muted. The bank calculated an increase in net operating profit of around ¥15 billion for the quarter due to the rise.
Its domestic loan and deposit rate margin, a measure of profitability at its core lending business, barely moved compared to the January-March quarter.
MUFG is the second of Japan's three megabanks to report quarterly results, following Mizuho Financial Group on Wednesday, with Sumitomo Mitsui Financial Group to come on Friday.
