Mitsubishi UFJ Reports 1.8% Q1 Profit Decline Beats Estimates

Mitsubishi UFJ Financial Group (MUFG), Japan's largest bank, reported a 1.8% decline in first-quarter net profit to 546 billion yen ($3.7 billion), beating analysts' estimates despite the drop from the previous year. The decrease was partly attributed to one-off accounting changes, and when excluding these, net profit actually rose 2.2%, supported by steady loan demand both domestically and internationally amid persistent inflation and market volatility. MUFG's domestic loan balance increased significantly, reflecting continued borrowing by Japanese firms investing for growth, while lending margins improved following the Bank of Japan's interest rate hikes. The bank maintained its fiscal-year profit target of 2 trillion yen, expecting to achieve another record profit despite global economic uncertainties including U.S. tariffs announced by President Trump. Credit costs fell notably compared to the prior year, helping to offset a 16% decline in net interest income and wider net losses on debt securities. MUFG's robust performance aligns with similar positive results from Japan's other major banks, indicating resilience in the financial sector despite external challenges.