Mitsubishi UFJ Financial Group (8306) Q2 2026 earnings summary

Executive summary

• Net operating profits for 1H FY2025 reached ¥1,287.0 billion, up ¥61.3 billion 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 ¥1,292.9 billion, a record high for the first half and third consecutive year, with progress toward the full-year target at 64.6%.

• Upward revision of FY2025 full-year net income target to ¥2,100.0 billion, reflecting robust customer segment results and higher equity method investee income.

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

Financial highlights

• Gross profits increased to ¥2,935.7 billion, up ¥23.9 billion 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 ¥127.9 billion year-over-year due to inflation, acquisitions, and strategic spending, but expense ratio remained flat at 56.1%.

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

• Equity in earnings of equity method investees, especially Morgan Stanley, increased significantly.

Outlook and guidance

• FY2025 full-year net income target revised up to ¥2,100.0 billion (+¥100.0 billion), with annual dividend forecast raised to ¥74 per share (+¥10 YoY).

• Additional share repurchase of up to ¥500 billion approved for the year.

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

• Commitment to achieving a mid- to long-term ROE target of approximately 12%.

• Total payout ratio projected at 64.0%.