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Mitsubishi UFJ Financial Group, Inc.

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Mitsubishi UFJ’s bottom line faces threat from the negative interest rates in Japan that will continue to affect the company’s interest income. Further, the company experiences mounting expenses stemming from compensation as well as regulatory and compliance costs. Additionally, credit costs are likely to be impacted by the stressed energy sector. Notably, the company estimates an 11% year over year decline in its net income for the fiscal year ending Mar 2017. However, Mitsubishi UFJ’s focus on several strategies under its medium-term business plan (2015 to 2017) that includes upgrading and reforming of its business model and exploring new business areas should lend support to its growth prospects. Also, company is set to benefit from its expansion moves.

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