Tokyo: Mitsubishi UFJ Financial Group Inc sees full-year profit falling 11 per cent as negative interest rates squeeze loan profitability and bad-loan costs increase. Japan’s largest bank is targeting net income of 850 billion yen ($7.8 billion; Dh28.72 billion) in the year ending March 2017, it said in a statement Monday.
That is lower than the 982 billion-yen average estimate of nine analysts surveyed by Bloomberg. Profit fell 8 per cent to 951.4 billion yen last fiscal year, said Tokyo-based MUFG, which also announced plans to buy back shares. Analysts had expected MUFG’s profit last fiscal year to be 1.03 trillion yen, close to a record achieved a year earlier. The drop was driven by an increase in credit allowances for certain clients and a decline in lending income, the results showed.
