Japan's Top Bank Mitsubishi UFJ Sees Q2 Profit Triple

Japan's largest lender by assets, Mitsubishi UFJ Financial Group Inc, reported a notable surge in second-quarter net profit, tripling from the previous year. This increase, reaching 368.89 billion yen (USD 2.43 billion) for July-September, was supported by robust lending margins both domestically and internationally. The substantial profit rise contrasts with the prior year, which faced an accounting loss linked to the sale of its US unit MUFG Union Bank.

Maintaining its full-year profit forecast at a record 1.3 trillion yen, Mitsubishi UFJ also disclosed plans for a share buyback of up to 3.31 per cent worth 400 billion yen.

Likewise, Mizuho Financial Group, Japan's third-largest lender, raised its full-year profit projection to 640 billion yen (USD 4.22 billion) from 610 billion yen, surpassing analyst estimates. These financial institutions benefited from domestic economic recovery, widened lending margins in Japan and the US, and a weakened yen that amplified profits abroad.

Anticipation prevails in the market for continued earnings momentum in the upcoming quarters, propelling Tokyo's banking stocks index to 15-year highs. This optimism stems from the Bank of Japan's ongoing adjustments away from ultra-loose monetary policies, expected to further bolster banking sector earnings.