TOKYO Nov 14 Mitsubishi UFJ Financial Group
(MUFG), Japan's biggest bank by assets, posted a 58
percent decline in first-half net profit from a year earlier,
when the lender made a hefty one-time gain from its investment
in Morgan Stanley.
Net profit fell to 290.5 billion yen ($3.66 billion) in
April-September from 696.1 billion yen a year earlier, MUFG said
Earnings were also hurt by losses on its equity portfolio.
Japanese banks traditionally own stakes in their corporate
clients, making the lenders highly vulnerable to stock market
For the full year through March 2013, the bank kept its
full-year net profit forecast at 670 billion yen, in line with
an average estimate of 673.3 billion yen in a poll of 17
analysts by Thomson Reuters.
Shares of MUFG have risen 5.5 percent so far this year,
compared with a 2.5 percent gain in the benchmark Nikkei average
In late 2008, MUFG paid $9 billion to acquire convertible
preferred shares in Morgan Stanley after the Lehman Brothers
Last year, the Japanese lender made a 290 billion yen
investment gain when Morgan Stanley agreed to convert most of
the preferred stock into common shares to cut around $800
million of yearly dividend payments.