(RTTNews) - Japanese financial services firm Mitsubishi UFJ Financial Group Inc. (MTU: News ) reported Wednesday that its consolidated net profit for the first half climbed 53.2% from last year, reflecting higher domestic and overseas lending income and lower expenses due to cost reduction initiatives. The company also backed its full-year net income forecast. Separately, Mitsubishi UFJ said it plans to issue up to 1 trillion yen of common stock through public offering in Japan.

Mitsubishi UFJ, together with Morgan Stanley, also announced further plans to integrate their securities operations in Japan through a joint venture structure involving two entities, Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., and Morgan Stanley MUFG Securities Co., Ltd.

For the six-month period ended September 30, 2009, Mitsubishi UFJ's consolidated net income, under Japanese GAAP, was 140.95 billion yen, up from 92.02 billion yen in the previous year. On a per share basis, earnings were 11.08 yen, higher than 8.42 yen last year.

On a non-consolidated basis, the company recorded first-half net loss of 14.21 billion yen or 2.25 yen per basic share, compared to prior year's net income of 291.10 billion yen or 27.39 yen per basic share.

The company's consolidated ordinary income for the period declined 10.5% to 2.62 trillion yen from 2.93 trillion yen in the prior year period. Interest income was 1.50 trillion yen, lower than 1.84 trillion yen a year ago.
However, consolidated gross profits, before credit costs for trust accounts, rose to 1.81 trillion yen from last year's 1.70 trillion yen, mainly due to "higher domestic and overseas lending income, market product income and a consolidation of ACOM, despite of lower deposit income caused by the decline of interest rates." Net interest income increased to 1.12 trillion yen from 970.5 billion yen a year earlier. Net business profits was 751.7 billion yen, up from 623.8 billion yen last year. For the six months, ordinary profits grew 23.9% to 233.05 billion yen from 188.12 billion yen in the previous year.

First-half ordinary expenses declined to 2.39 trillion yen from 2.74 trillion yen in the previous year. General and administrative expenses also decreased in the six months due to an intensive corporate-wide cost reduction as well as the effect of the system integration.

On a non-consolidated basis, the company's operating income for the first half fell 42.2% to 143.20 billion yen from 247.86 billion yen last year. Ordinary profits were 116.84 billion yen, down 49.5% from prior year's 231.41 billion yen.

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