Japan’s largest bank raises fiscal 2026 profit goal to JPY 2.7 trillion as net operating profit drives growth despite a dip in capital ratios.
Mitsubishi UFJ Financial Group (MUFG) reported record fiscal 2025 profit and raised its fiscal 2026 profit target to JPY 2.7 trillion, citing sustained net operating profit growth. Profits attributable to owners of parent rose by JPY 586.3 billion year over year for the fiscal year ended March 31, 2026, with return on equity reaching 11.3% on a JPX basis.
The bank also set a 12% ROE target for fiscal 2026 but faced investor scrutiny over its CET1 capital ratio, which fell to 9.2%, below its target range. Management attributed the decline to capital deployment, including the Shriram Finance investment and increased lending, and reiterated plans to return to the lower end of its target range.
MUFG approved a JPY 100 billion share buyback for the first half and increased its dividend, while noting limited exposure to Middle East and private credit risks. The bank left room for additional repurchases pending capital recovery and business conditions.