April 30, 2020 / 7:57 AM / a month ago

Japan's MUFG cuts annual net profit estimate by 30% due to one-off charge

FILE PHOTO: People queue inside a branch of the Mitsubishi UFJ (MUFJ) Financial Group's bank of Tokyo-Mitsubishi UFJ in Tokyo, Japan, February 1, 2016. REUTERS/Yuya Shino

TOKYO (Reuters) - Japan’s Mitsubishi UFJ Financial Group Inc (MUFG) (8306.T) said on Thursday it had cut its annual net profit estimate by 30% for the year ended in March, primarily due to a one-off charge at its Thai unit.

The country’s largest lender by assets lowered the annual estimate to 520 billion yen ($4.9 billion) from 750 billion yen, it said in a statement.

MUFG is scheduled to announce the results on May 15.

The bank will book a 130.5 billion yen charge at Thailand’s Bank of Ayudhya PCL (BAY.BK) and a 65 billion yen charge at other units including Security Bank Corp (SECB.PS) of the Philippines.

While the writedown was announced at the end of March, MUFG reiterated its full-year forecast at that time.

It is also expecting to increase credit-related costs due to the coronavirus outbreak, pushing its net profit estimate down by 35 billion yen, it said.

Reporting by Takashi Umekawa; editing by David Evans

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