By Kosaku Narioka
Mitsubishi UFJ Financial Group is scheduled to report second-quarter results on Tuesday. Here is what you need to know:
NET PROFIT FORECAST: Mitsubishi UFJ’s net profit is expected to have more than doubled to 312.83 billion yen ($2.06 billion) for the three months ended Sept. 30, according to a poll of analysts by Visible Alpha. That would compare with net profit of Y117.41 billion in the year-earlier period.
WHAT TO WATCH:
–INTEREST INCOME: Net interest income dropped 41% to Y584.19 billion in its first quarter due in part to one-off factors and a high base a year earlier. Investors will be focusing on any growth in the company’s primary source of earnings as loan-interest rates have risen.
–BOND TRADING: As government bond yields have climbed worldwide, especially in Japan, investors will be watching closely for any losses from the company’s trading of fixed-income securities. In its first quarter, Mitsubishi UFJ booked net gains on debt securities of Y49.80 billion, recovering from losses of Y406.10 billion a year earlier.
–OUTLOOK: In August, Mitsubishi UFJ maintained its net profit guidance of Y1.300 trillion for the year ending March 2024. Investors will pay attention to any changes the management may make to the annual guidance.
Write to Kosaku Narioka at [email protected]