MUFG Profit Surges 48% as Net Interest Income Climbs on Rising Rates
Japan's largest bank by assets reported ¥809.4 billion in first-quarter profit, up 48.2% year-over-year, as net interest income swelled 27.7%.
Mitsubishi UFJ Financial Group (MUFG) posted a 27.7% year-over-year surge in net interest income to ¥882.4 billion in the first quarter of fiscal 2026, as rising rates and a growing loan book more than offset higher deposit costs. Interest on loans climbed 17.6% to ¥1,139.0 billion and income from securities rose 30.8% to ¥539.2 billion, while deposit expenses increased a more modest 11.9% to ¥554.3 billion, supporting net margin expansion.
The revenue gains flowed through to the bottom line. Profits attributable to owners of parent jumped 48.2% to ¥809.4 billion, with ordinary profits up 57.8% to ¥1,117.9 billion, lifted by both the interest-rate tailwind and a ¥103.6 billion increase in equity-method earnings to ¥261.6 billion. Net fees and commissions added to the momentum, rising 20.9% to ¥682.1 billion on broad-based growth across banking and securities operations.
Global Markets Business Group delivered the sharpest segment gain, with operating profit up 77.4% to ¥148.6 billion on a 44.8% rise in net revenue to ¥236.1 billion, reflecting improved trading conditions. Net trading profits more than tripled to ¥132.7 billion from ¥42.8 billion a year earlier. Global Corporate & Investment Banking operating profit rose 63.5% to ¥180.2 billion on a 38.3% revenue increase to ¥306.5 billion, while Commercial Banking & Wealth Management operating profit climbed 55.6% to ¥133.2 billion.
The loan book expanded 9.6% year-over-year to ¥134.5 trillion as of June 2026, reflecting broad-based lending growth. Deposits, however, declined ¥2.5 trillion sequentially from March to ¥236.9 trillion, even as negotiable certificates of deposit rose to ¥19.3 trillion from ¥17.6 trillion, pointing to a shift in the funding mix toward wholesale sources. Total assets grew 8.2% year-over-year to ¥433.9 trillion.
Credit costs widened to ¥72.1 billion from ¥46.9 billion a year earlier, driven by higher loan write-offs of ¥50.3 billion versus ¥41.3 billion and increased provisions for specific allowances of ¥52.9 billion versus ¥38.2 billion. The qualitative macro overlay for geopolitical risk decreased to ¥28.4 billion from ¥39.2 billion, with the risk focus shifting from the Russia-Ukraine conflict to the Middle East situation.
Net gains on equity securities surged to ¥98.9 billion from ¥30.3 billion, reflecting ¥106.7 billion in portfolio sales versus ¥40.2 billion a year earlier, as MUFG actively monetized its equity holdings. General and administrative expenses rose 10.4% to ¥900.6 billion, outpacing the prior year's pace, on higher compensation and technology spending.
MUFG raised its full-year dividend forecast for fiscal 2026 to ¥96.00 per share, up 11.6% from ¥86.00 in fiscal 2025, and set a fiscal 2027 profit target of ¥2,700.0 billion — a 35% increase over the ¥2,000.0 billion target for the current year. Shareholders' equity rose to ¥22.7 trillion from ¥20.0 trillion, strengthening the capital base as the group scales its balance sheet.