Mitsubishi UFJ Financial Group (8306) Q2 2026 earnings summary

Executive summary

• Net operating profits for 1H FY2025 reached ¥1,287.0bn, up ¥61.3bn year-over-year, driven by higher net interest income, fee revenues, and strong customer segment performance despite Asian economic slowdown.

• Profits attributable to owners of parent rose 2.8% year-over-year to ¥1,292.9bn, a record high for the first half, with 64.6% progress toward the full-year target.

• Upward revision of net income target by ¥100bn to ¥2.1 trillion for FY2025, reflecting robust customer segment results and higher equity method investee income.

• Ordinary income for the six months ended September 30, 2025, was ¥6,893.8bn, up 0.5% year-over-year.

• Comprehensive income declined 15.0% year-over-year to ¥1,123.0bn.

Financial highlights

• Gross profits increased to ¥2,935.7bn, up ¥23.9bn year-over-year, supported by higher JPY interest rates, improved lending spreads, and bond portfolio rebalancing.

• Net fees and commissions expanded significantly, supported by acquisitions and growth in solution services.

• G&A expenses increased by ¥127.9bn due to inflation, acquisitions, and strategic spending, but the expense ratio remained flat at 56.1%.

• Net gains on equity securities fell by ¥235.3bn due to prior year’s large sales, but equity in earnings of investees, especially Morgan Stanley, rose sharply.

• Credit costs decreased significantly due to reversals and rebounds from prior year’s large credit costs.

Outlook and guidance

• Full-year net income target revised up to ¥2.1 trillion, with annual dividend forecast increased to ¥74 and share repurchase totaling ¥500bn.

• CET1 ratio expected to remain around 10–10.8% by fiscal year-end, balancing growth investments and shareholder returns.

• Continued focus on achieving mid- to long-term ROE target of 12%.

• Total payout ratio projected at 64.0%.