Friday, financial services provider Mitsubishi UFJ Financial Group, Inc., (MTU), reported a 48% rise in profit for the first quarter, helped by higher net interest income and net gains on equity securities. The company reiterated its earnings forecast for fiscal year 2010.
The Tokyo, Japan-based company's net income for the first quarter increased 48.3% to 75.9 billion yen or 6.52 yen per share from 51.1 billion yen or 4.91 yen per share in the prior-year quarter.
Net interest income for the quarter rose to 555.2 billion yen from 470.0 billion yen in the same quarter last year, mainly due to increase in overseas lending income, lower funding cost in foreign currencies and consolidation of a new subsidiary ACOM Co., Ltd.
Trust fees/net fees and commissions for the quarter decreased to 257.7 yen from 271.6 yen in the corresponding quarter last year, mainly due to lower sales of investment trusts and trust fee, notwithstanding an increase in loan related fees overseas.
Net gains on equity securities for the quarter was 30.2 billion yen, compared to net losses on equity securities of 10.1 billion yen in the year-ago quarter, primarily due to decrease in losses on write-down of equity securities.
Net unrealized gains on available-for-sale securities for the quarter was 70.1 billion yen compared to net unrealized losses of 917.7 billion yen in the previous-year quarter. The company attributed the gains to improved appraisal gains on equity securities by the higher stock price.
At the end of June 30, 2009, deposits were 122.23 trillion yen, and total assets were 9.38 trillion yen.
Looking ahead to fiscal year 2010, the company still expects net income of 300.0 billion yen.
MTU is currently trading at US$6.24, up US$0.40 or 6.51%, on a volume of 0.48 million shares on the NYSE.
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