Mitsubishi UFJ Financial Group (MUFG) reported a record first-half net profit of 1.63 trillion yen ($10.4 billion) on Friday, marking a 26% increase from the same period last year. The strong performance led the bank to raise its full-year net profit target to 2.8 trillion yen, up from the previous forecast of 2.7 trillion yen.
The group also announced a share buyback of up to 200 billion yen for the second half of the fiscal year and increased its annual dividend forecast to 100 yen per share. The first-half profit, covering the six months to September 30, was the fourth consecutive record for the period. Net operating profit (NOP) rose 26% to 1.62 trillion yen, driven by higher loan and deposit income, as well as fee income, despite inflation and cybersecurity costs.
Net interest income increased 29% to 1.85 trillion yen, boosted by higher Japanese interest rates and loan growth both domestically and internationally. A weaker yen contributed an additional 35 billion yen. Fee income rose 14% to 1.23 trillion yen. Outside the core business, equity in earnings of equity-method investees increased by 91.3 billion yen to 473.2 billion yen, partly offset by 196 billion yen of net losses on debt securities.
MUFG maintained its net operating profit target at 2.9 trillion yen and its credit cost target at 350 billion yen, citing future growth initiatives. The bank raised its dividend forecast by 14 yen from last year and 4 yen above its initial forecast, with an interim payment of 48 yen.