We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Mitsubishi UFJ (MUFG) Earnings Decline Y/Y in Fiscal 2022
Read MoreHide Full Article
Mitsubishi UFJ Financial Group,Inc. (MUFG - Free Report) reported profits attributable to owners of the parent for fiscal 2022 (ended Mar 31, 2023) of ¥1.12 trillion ($8.21 billion), down 1.3% year over year.
Increased gross profits, higher net interest income (NII), and a rise in net fees and commissions acted as tailwinds. On the flip side, a decline in loan and deposit balances was a dampener. Also, a rise in general and administrative (G&A) expenses, net trading losses, and a rise in total credit costs hurt to some extent.
Gross Profits Improve, G&A Expenses Rise
Gross profits (before credit costs for trust accounts) for the said period were ¥ 4.5 trillion ($33.13 billion), up 13.6% from the prior-year period. The upsurge was mainly driven by higher NII, and a rise in net fees and commissions.
Results reflected a 42.3% year-over-year increase in NII, which was ¥2.04 trillion ($15.03 billion). Trust fees, along with net fees and commissions, totaled ¥1.7 trillion ($12.47 billion), up 7.7%. However, for Mitsubishi UFJ, net trading loss (including net other operating losses) were ¥100 billion ($0.74 billion) against a profit of ¥345.6 billion ($2.54 billion) recorded in the prior-year period.
Mitsubishi UFJ’s total credit costs were negative ¥674.8 billion ($4.96 billion), up significantly from negative ¥331.4 billion ($2.43 billion) witnessed a year ago.
G&A expenses increased 5.9% year over year to ¥2.91 trillion ($21.4 billion).
The expense ratio was 64.5%, down from 69.3% in the prior-year period. A decrease in this ratio indicates a rise in profitability.
Balance Sheet Position Decent
As of Mar 31, Mitsubishi UFJ reported loans of ¥109.15 trillion ($802.96 billion), down 1.2% from Mar 31, 2022. Deposits declined 1% to ¥213.61 trillion ($1.57 trillion).
Total assets summed ¥386.8 trillion ($2.85 trillion), up 3.5% from Mar 31, 2022.
Capital Deployment
The company repurchased ¥450 billion ($3.31 billion) worth of shares in fiscal 2022 under its share repurchase program.
Our Viewpoint
MUFG has a robust business model, a diversified product mix and solid capital ratios. Supported by a strong liquidity position, Mitsubishi UFJ is poised for inorganic growth. However, high costs may hurt the bottom line in the near term.
Mitsubishi UFJ Financial Group, Inc. Price, Consensus and EPS Surprise
Itau Unibanco Holding S.A. (ITUB - Free Report) posted recurring managerial results of R$8.43 billion ($1.62 billion) for first-quarter 2023, up 14.6% year over year.
The results of ITUB were supported by higher commissions and fees, and revenues. Increases in total deposits and credit portfolios reflected a strong balance sheet position. However, a rise in non-interest expenses was an offsetting factor.
UBS Group AG (UBS - Free Report) reported first-quarter 2023 net profit attributable to shareholders of $1.03 billion, down 51.8% from the prior-year quarter.
UBS’s quarterly performance was worrisome, as there were increases in expenses. Also, lower revenues were major headwinds.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Mitsubishi UFJ (MUFG) Earnings Decline Y/Y in Fiscal 2022
Mitsubishi UFJ Financial Group, Inc. (MUFG - Free Report) reported profits attributable to owners of the parent for fiscal 2022 (ended Mar 31, 2023) of ¥1.12 trillion ($8.21 billion), down 1.3% year over year.
Increased gross profits, higher net interest income (NII), and a rise in net fees and commissions acted as tailwinds. On the flip side, a decline in loan and deposit balances was a dampener. Also, a rise in general and administrative (G&A) expenses, net trading losses, and a rise in total credit costs hurt to some extent.
Gross Profits Improve, G&A Expenses Rise
Gross profits (before credit costs for trust accounts) for the said period were ¥ 4.5 trillion ($33.13 billion), up 13.6% from the prior-year period. The upsurge was mainly driven by higher NII, and a rise in net fees and commissions.
Results reflected a 42.3% year-over-year increase in NII, which was ¥2.04 trillion ($15.03 billion). Trust fees, along with net fees and commissions, totaled ¥1.7 trillion ($12.47 billion), up 7.7%. However, for Mitsubishi UFJ, net trading loss (including net other operating losses) were ¥100 billion ($0.74 billion) against a profit of ¥345.6 billion ($2.54 billion) recorded in the prior-year period.
Mitsubishi UFJ’s total credit costs were negative ¥674.8 billion ($4.96 billion), up significantly from negative ¥331.4 billion ($2.43 billion) witnessed a year ago.
G&A expenses increased 5.9% year over year to ¥2.91 trillion ($21.4 billion).
The expense ratio was 64.5%, down from 69.3% in the prior-year period. A decrease in this ratio indicates a rise in profitability.
Balance Sheet Position Decent
As of Mar 31, Mitsubishi UFJ reported loans of ¥109.15 trillion ($802.96 billion), down 1.2% from Mar 31, 2022. Deposits declined 1% to ¥213.61 trillion ($1.57 trillion).
Total assets summed ¥386.8 trillion ($2.85 trillion), up 3.5% from Mar 31, 2022.
Capital Deployment
The company repurchased ¥450 billion ($3.31 billion) worth of shares in fiscal 2022 under its share repurchase program.
Our Viewpoint
MUFG has a robust business model, a diversified product mix and solid capital ratios. Supported by a strong liquidity position, Mitsubishi UFJ is poised for inorganic growth. However, high costs may hurt the bottom line in the near term.
Mitsubishi UFJ Financial Group, Inc. Price, Consensus and EPS Surprise
Mitsubishi UFJ Financial Group, Inc. price-consensus-eps-surprise-chart | Mitsubishi UFJ Financial Group, Inc. Quote
Mitsubishi UFJ currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Banks
Itau Unibanco Holding S.A. (ITUB - Free Report) posted recurring managerial results of R$8.43 billion ($1.62 billion) for first-quarter 2023, up 14.6% year over year.
The results of ITUB were supported by higher commissions and fees, and revenues. Increases in total deposits and credit portfolios reflected a strong balance sheet position. However, a rise in non-interest expenses was an offsetting factor.
UBS Group AG (UBS - Free Report) reported first-quarter 2023 net profit attributable to shareholders of $1.03 billion, down 51.8% from the prior-year quarter.
UBS’s quarterly performance was worrisome, as there were increases in expenses. Also, lower revenues were major headwinds.