Mitsubishi UFJ Financial Group (8306) Q1 2026 earnings summary

Executive summary

• Net operating profits for 1Q FY25 were ¥542.9bn, down ¥56.3bn year-over-year, mainly due to a rebound from last year's treasury gains and FX impact, but customer segments showed improvement.

• Net income rose to ¥546.0bn, up ¥12.0bn year-over-year, supported by solid customer segment gains and benefits from prior bond portfolio rebalancing.

• Ordinary income for the three months ended June 30, 2025, was ¥3,253.9bn, down 7.7% year-over-year; ordinary profits were ¥708.5bn, up 27.1% year-over-year.

• Profits attributable to owners of parent were ¥546.1bn, a 1.8% decrease compared to the same quarter last year.

• Comprehensive income dropped sharply to ¥135.6bn from ¥992.9bn year-over-year, mainly due to negative other comprehensive income items.

Financial highlights

• Gross profits decreased to ¥1,358.4bn, impacted by last year's KS effect, treasury gains rebound, and FX, but supported by overseas acquisitions and higher JPY rates.

• Net operating profits before credit costs and provision for general allowance for credit losses decreased by ¥135.2bn year-over-year to ¥542.9bn.

• Net interest income fell by ¥132.3bn to ¥690.8bn; net fees and commissions rose by ¥13.7bn to ¥461.6bn.

• Credit costs improved, with total credit costs at ¥46.9bn, down from ¥166.8bn year-over-year.

• ROE (JPX basis) was 10.8%, down 0.4ppt year-over-year.

Outlook and guidance

• Favorable progress toward a historical high full-year net income target of ¥2tn, with 27.3% achieved in 1Q.

• The target for profits attributable to owners of parent for the fiscal year ending March 31, 2026, remains at ¥2,000.0bn.

• Dividend forecast for the fiscal year ending March 31, 2026, is ¥70.00 per share, unchanged from previous guidance.

• Management expects continued steady growth, driven by customer segment performance and benefits from previous bond portfolio actions.