Mitsubishi UFJ Financial May Post 74% Drop in Fourth-Quarter Net Profit — Earnings Preview

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By Kosaku Narioka

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Mitsubishi UFJ Financial Group Inc. is scheduled to report its fourth-quarter results on Monday. Here’s what you need to know:

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NET PROFIT FORECAST: Mitsubishi UFJ is expected to post a 74% drop in net profit to 43.98 billion yen ($342.7 million) for the quarter ended March 31, according to a poll of analysts by FactSet. That compares with Y169.98 billion net profit a year earlier.

WHAT TO WATCH:

–NET INTEREST INCOME: Thanks partly to widening of lending spreads, net interest income increased 7.2% to Y1.491 trillion for the nine-month period ended December. Investors will be paying attention to further improvement in net interest income as interest rates have risen globally.

–BOND TRADING: As government bond prices fell sharply during the January-March quarter in Japan, the US and elsewhere, investors are closely watching how Mitsubishi UFJ has been faring at its bond trading. Net gains on debt securities during the nine-months ended Dec. 31, 2021 fell 68% to Y66.1 billion from the same period a year earlier.

–OUTLOOK: Mitsubishi UFJ is expected to give earnings guidance for the fiscal year started in April, along with its fourth-quarter results. Investors will be paying attention to the management’s views on the interest-rate outlook and its implications for earnings.

Write to Kosaku Narioka at [email protected]

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Credit: www.marketwatch.com /

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