Japan's MUFG maintains record full-year profit forecast after steady Q1 results
The results from Japan's largest banking group round off a robust showing for the country's three "megabanks", each of which grew profits in the first quarter despite market swings and fears of a global economic slowdown.
MUFG remains on track to hit its record 2 trillion yen profit forecast for this financial year - a target set in May and that accounted for the wave of uncertainty triggered by the announcement of tariffs by U.S. president Donald Trump in April.
Including the one-time item - due to a change in the accounting period of a subsidiary - MUFG's net profit was down 1.8 per cent.
Net profit reached 546 billion yen ($3.7 billion) in the April-June quarter, compared with 555.9 billion over the same period a year earlier.
Persistent inflation in Japan after decades of deflation has triggered a wave of borrowing among Japanese firms looking to invest for growth, demand for which held up despite the uncertainty.
MUFG's domestic loan balance rose to 75.8 trillion yen at the end of June from 72.7 trillion at the end of June last year.
The prospect of tariffs has had limited effect on customer behavior so far, MUFG said.
"The customers expressing concerns about financing or delaying investment are limited," Takayuki Hara, head of MUFG's corporate planning division, told a press briefing.
"The effect on companies' earnings will become apparent little by little in the second half of the year," Hara said.
Meanwhile the end of negative interest rates in March last year, followed by two hikes since, has finally pushed up lending margins in Japan's long-suffering banking sector.
MUFG's domestic deposit and lending yield differential rose to 0.95 per cent in the April-June quarter from 0.86 per cent in the same period last year.
Last Thursday smaller rival Sumitomo Mitsui Financial Group also maintained its record earnings forecast of 1.3 trillion yen, while number three player Mizuho Financial Group hiked its forecast by 15 per cent to 1.02 trillion yen.
($1 = 147.6200 yen)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
3 minutes ago
- Business Times
UK economy grew faster-than-forecast in Q2
[LONDON] The UK economy fared better than expected in the second quarter, bringing some relief for Chancellor of the Exchequer Rachel Reeves but raising the bar to further interest-rate cuts from the Bank of England. Gross domestic product rose 0.3 per cent, the Office for National Statistics said on Thursday (Aug 14), beating the 0.1 per cent forecast by both private-sector economists and the Bank of England. Output in June alone gained 0.4 per cent – double expectations – following modest declines in the previous two months. The figures suggest the economy held up during what was always expected to be a difficult period as businesses and consumers were hit by Reeves' £26 billion (S$45.2 billion) payroll tax raid, inflation-busting hikes to regulated prices such as energy and increased taxes on home purchases, as well as US President Donald Trump's tariffs. Growth of 0.7 per cent in the first quarter was artificially boosted by manufacturers trying to get ahead of US tariffs, though Prime Minister Keir Starmer repeatedly hailed Britain outperforming the other Group-of-Seven nations as evidence of the economy turning a corner. The data also appear to further muddy the BOE's decision over whether to carry on cutting interest rates from the current 4 per cent after statistics on Tuesday showed the economy has lost fewer jobs than initially thought since Reeves' tax-raising budget last October. Traders are no longer fully pricing in a further reduction this year, and expect borrowing costs to settle at 3.5 per cent next year. BLOOMBERG
CNA
34 minutes ago
- CNA
South Korea to expand securities settlement hours for global investors
SEOUL :South Korea will extend operating hours for transaction settlement systems at the central bank and the securities depository starting April 2026, aiming to ease access for foreign investors across different time zones, the finance ministry said on Thursday. The Bank of Korea's operating hours will expand to 9 a.m. and 8 p.m. local time (0000-1100 GMT), from 9 a.m. and 5:30 p.m, aligning closer to those of countries included in FTSE Russell's World Government Bond Index, which South Korea is set to join in April 2026. The measure is the first step taken by the government since forming a task force to upgrade South Korea's domestic stock market to developed-market status from emerging market classification by Morgan Stanley Capital International (MSCI). Achieving MSCI's developed status remains a long-standing national goal and a key pledge by President Lee Jae Myung.
Straits Times
2 hours ago
- Straits Times
Japanese venture seeks to ‘condense' hot springs for export overseas
Sign up now: Get ST's newsletters delivered to your inbox Transporting hot springs overseas long seemed logistically impossible because of the sheer volume of water involved, as well as their susceptibility to germs. TOKYO - Japan's famous 'onsen' hot springs were long considered unexportable, until an idea struck Mr Naoki Mita one day: What if he could condense them like espresso coffee? Mr Mita's Tokyo-based venture firm, Le Furo, has invented a technology it calls 'craft onsen' – whereby hot spring ingredients are extracted and filtered into an ultra-high concentration. Le Furo now seeks to use that patented technology to export Japan's hot springs overseas, with a view towards opening several onsen facilities in the Gulf region in 2026. Transporting hot springs overseas long seemed logistically impossible because of the sheer volume of water involved, as well as their susceptibility to germs. But with Le Furo's invention, 'just like you extract coffee as espresso, we grind the mineral resources to fine, sand-like powders', Mr Mita told AFP. The entrepreneur and chief executive officer says many commercially available 'onsen powders' are synthetic and put an emphasis on mimicking the relaxing colour and scent, and do not necessarily contain the necessary ingredients. Only after solid metals such as iron, magnesium and zinc dissolve into water does it become possible to chemically resemble onsen and recreate the therapeutic effect, Mr Mita said. Top stories Swipe. Select. Stay informed. Singapore Jalan Bukit Merah fire: SCDF says PMD battery could have started fatal blaze Singapore 4 housebreaking suspects taken to Bukit Timah crime scene under police escort Business MyRepublic customers to see no immediate changes to existing services: StarHub Singapore To Vers or not to Vers: How will this scheme affect HDB prices? Asia From Brazil to Vietnam: How footballer Rafaelson became Vietnam's favourite 'Son' Asia Malaysian MP Rafizi says his son was jabbed with syringe in planned attack, threatened with Aids Asia India, Singapore ministers discuss deeper tie-ups in digitalisation, skills, industrial parks Singapore From quiet introvert to self-confident student: How this vulnerable, shy teen gets help to develop and discover her strength Le Furo's technology sticks to the natural soil and minerals of hot spring sources, and uses a special method to make them soluble in water. Its 'craft onsen' concentrate comes in bottles or small tanks, which can then be distributed and poured into water in other countries to feel like the real thing. Onsens – bath houses where patrons relax naked together in hot spring water of various temperatures – are a major domestic industry in Japan beloved by both locals and tourists. As at 2021, Japan was home to 28,000 confirmed hot spring sources, according to the environment ministry. Le Furo is setting its sights particularly on countries like the United Arab Emirates, Oman and Saudi Arabia where 'water is considered a more precious resource than oil', Mr Mita says. 'Here in Japan, we have this culture of soaking ourselves in a good, long bath to attain better health – that's the kind of story that I believe (other countries) will show great interest in,' he said. AFP
