ID :
90483
Thu, 11/19/2009 - 08:33
Auther :
Shortlink :
https://www.oananews.org//node/90483
The shortlink copeid
MUFG reports 53% jump in net profit, eyes raising 1 tril. yen+
TOKYO, Nov. 18 Kyodo - Mitsubishi UFJ Financial Group Inc. on Wednesday reported a 53.2 percent year-on-year jump in group net profit for the April-September period thanks mainly to solid gains in bond trading and said it is aiming to raise up to 1 trillion yen by selling new common shares.
For the six-month period through Sept. 30, Japan's largest banking group's net
profit totaled 140.95 billion yen, while its revenue fell 10.5 percent from a
year earlier to 2.62 trillion yen.
With the capital boost planned by November next year, MUFG aims to strengthen
its capital base as global regulators discuss tougher capital standards for
banks to prevent a recurrence of the financial crisis.
MUFG President Nobuo Kuroyanagi said at a press conference that with the
capital increase, the lender hopes to better compete with ''top banks'' while
fulfilling its responsibility to provide funds amid tighter capital
regulations.
''We believe the size (of the capital expansion) will be sufficient as a
platform for the new era,'' Kuroyanagi said.
The new share issuance is expected to lift the bank's core equity capital ratio
by about 1 percentage point from the current 5.99 percent.
The size of the planned capital boost is much larger than the roughly 400
billion yen and around 390 billion yen that the banking group raised by issuing
common shares and preferred shares, respectively, by last December.
MUFG also announced a revised plan to partially integrate its Japanese
brokerage operations with U.S. investment bank Morgan Stanley, instead of its
earlier plan to fully merge their respective Japanese brokerage units.
Under the new plan, MUFG and Morgan Stanley will set up two companies as they
will integrate Mitsubishi UFJ Securities Co. and Morgan Stanley Japan
Securities Co.'s investment banking operations into one company and separate
the U.S. firm's remaining business into a different company.
The establishment of the two companies is planned for May, instead of the
initial plan of integrating such brokerage businesses by the end of March.
For the April-September period, MUFG said its earnings improved thanks to
strong bond trading operations and improved lending business targeting overseas
companies, as well as its cost-cutting efforts.
Bad loan disposal costs at the financial group's two banks -- the Bank of
Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Trust and Banking Corp. -- also fell
7.5 percent to 224 billion yen.
With the earnings report, MUFG joined Japan's five other big banks in reporting
a profit for the first half of fiscal 2009 that began April 1, highlighting the
improved business environment for the country's banking industry.
All of the top six banks recorded losses or sharp profit declines in fiscal
2008, hit by the global financial crisis.
Looking ahead, MUFG reiterated its projection of a 300 billion yen group net
profit for the whole of fiscal 2009 ending next March, compared with a net loss
of 256.95 billion yen a year earlier.
''Bad loan disposal costs remain high mainly for small and medium-sized
companies. We need to continue maintaining a guarded stance,'' Kuroyanagi said.
==Kyodo
2009-11-18 22:24:40
For the six-month period through Sept. 30, Japan's largest banking group's net
profit totaled 140.95 billion yen, while its revenue fell 10.5 percent from a
year earlier to 2.62 trillion yen.
With the capital boost planned by November next year, MUFG aims to strengthen
its capital base as global regulators discuss tougher capital standards for
banks to prevent a recurrence of the financial crisis.
MUFG President Nobuo Kuroyanagi said at a press conference that with the
capital increase, the lender hopes to better compete with ''top banks'' while
fulfilling its responsibility to provide funds amid tighter capital
regulations.
''We believe the size (of the capital expansion) will be sufficient as a
platform for the new era,'' Kuroyanagi said.
The new share issuance is expected to lift the bank's core equity capital ratio
by about 1 percentage point from the current 5.99 percent.
The size of the planned capital boost is much larger than the roughly 400
billion yen and around 390 billion yen that the banking group raised by issuing
common shares and preferred shares, respectively, by last December.
MUFG also announced a revised plan to partially integrate its Japanese
brokerage operations with U.S. investment bank Morgan Stanley, instead of its
earlier plan to fully merge their respective Japanese brokerage units.
Under the new plan, MUFG and Morgan Stanley will set up two companies as they
will integrate Mitsubishi UFJ Securities Co. and Morgan Stanley Japan
Securities Co.'s investment banking operations into one company and separate
the U.S. firm's remaining business into a different company.
The establishment of the two companies is planned for May, instead of the
initial plan of integrating such brokerage businesses by the end of March.
For the April-September period, MUFG said its earnings improved thanks to
strong bond trading operations and improved lending business targeting overseas
companies, as well as its cost-cutting efforts.
Bad loan disposal costs at the financial group's two banks -- the Bank of
Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Trust and Banking Corp. -- also fell
7.5 percent to 224 billion yen.
With the earnings report, MUFG joined Japan's five other big banks in reporting
a profit for the first half of fiscal 2009 that began April 1, highlighting the
improved business environment for the country's banking industry.
All of the top six banks recorded losses or sharp profit declines in fiscal
2008, hit by the global financial crisis.
Looking ahead, MUFG reiterated its projection of a 300 billion yen group net
profit for the whole of fiscal 2009 ending next March, compared with a net loss
of 256.95 billion yen a year earlier.
''Bad loan disposal costs remain high mainly for small and medium-sized
companies. We need to continue maintaining a guarded stance,'' Kuroyanagi said.
==Kyodo
2009-11-18 22:24:40
