Japan's MUFG Q3 profit rises 5.5 pct, buoyed by overseas lending

TOKYO Mon Feb 3, 2014 2:59am EST

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TOKYO Feb 3 (Reuters) - Mitsubishi UFJ Financial Group Inc reported a 5.5 percent rise in net profit in the group's latest quarter, making up for slowing stock-related earnings with income from overseas lending.

Japan's biggest bank, like rival Mizuho Financial Group , is on track to report a bumper year thanks to stock-related gains, courtesy of share prices spurred to multi-year highs by pro-growth government policies.

The stocks rally helped the group, which owns shares in Toyota Motor Corp and Honda Motor Co, report net profit of 255.2 billion yen ($2.5 billion) in October-December, show Reuters calculations based on nine-month data.

That compared with 242 billion yen a year earlier when shares prices shot up ahead of the December 2012 election of a government promising to end a decade of deflation.

For April-December, net profit reached 785.4 billion yen, from 532.5 billion yen a year earlier, MUFG said in a statement on Monday.

Stock-related gains - which include income from trading its own shares and book gains from the increased value of shares held - slowed to 18.4 billion yen from 89.6 billion yen in October-December.

In April-December, stock gains reached 37.4 billion yen for the nine months from a loss of 112.3 billion yen.

MUFG, which owns 22 percent of Morgan Stanley, kept its full-year net profit forecast at 910 billion yen.

That would be 6.7 percent more than the year prior, but lower than the 930.4 billion yen mean estimate of 18 analysts polled by Thomson Reuters.

Shares of MUFG closed down 2.6 percent ahead of the earnings release, compared with a 2 percent decline in the benchmark index. ($1 = 101.9850 Japanese yen) (Reporting by Taiga Uranaka; Editing by Christopher Cushing)

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