Mitsubishi UFJ Financial Group (8306) Q2 2025 earnings summary

Executive summary

• Net operating profits for H1 FY2024 reached ¥1,305.3 billion, up ¥219.5 billion year-over-year, marking a third consecutive record first-half profit, driven by strong customer segment performance and gains on equity sales.

• Net income hit ¥1,258.1 billion, up ¥330.9 billion year-over-year, the highest since establishment and the first time exceeding ¥1 trillion in the first half.

• Ordinary income rose 21.1% year-over-year to ¥6,860.3 billion for the six months ended September 30, 2024.

• Upward revision of FY2024 financial targets due to robust results, with dividend forecast raised to ¥60 and share repurchase program expanded to ¥400 billion.

• Basic EPS was ¥107.69, up from ¥77.11 in the prior year period.

Financial highlights

• Gross profits increased by ¥424.4 billion year-over-year, driven by higher net interest and fee income, and the impact of Krungsri's accounting period change.

• G&A expenses rose by ¥204.8 billion, mainly due to Krungsri and overseas acquisitions, but the expense ratio improved to 55.1%.

• Net gains on equity securities surged to ¥363.9 billion (+¥233.6 billion YoY) from accelerated equity sales.

• Total credit costs dropped by ¥48 billion year-over-year (excluding Krungsri impact), mainly due to reversals at overseas branches.

• ROE improved to 13.39% (MUFG basis), up 2.74 points year-over-year.

Outlook and guidance

• FY2024 net income target raised by ¥250 billion to ¥1,750 billion, reflecting 83% progress toward the initial target.

• Ordinary profit forecast revised up by ¥350 billion to ¥2,500 billion.

• Dividend forecast for FY2024 raised to ¥60.00 per share, with payout ratio expected to rise to 62.9%.

• ROE target of around 9% expected to be achieved ahead of schedule, with discussions to revise mid- to long-term targets.

• Aiming to achieve mid-term business plan financial targets ahead of schedule.