Mitsubishi Financial Group raises profit outlook, announces share buyback

Investing.com -- Mitsubishi Financial Group reported first-half consolidated net profit of ¥1,293.0 billion, up 2.8% year-on-year, representing 64.6% progress toward its initial guidance.

The financial group’s consolidated pre-provision operating profit (PPOP) reached ¥1,287.0 billion, down 1.4% compared to the same period last year, achieving 58.5% of its initial target.

Following these results, Mitsubishi revised its full-year guidance upward, increasing its net profit forecast to ¥2.1 trillion, a ¥100.0 billion increase from its previous outlook. The company also raised its dividend per share by ¥4.

Additionally, the financial group announced a share buyback program of ¥250.0 billion. The company’s CET1 ratio at the end of September stood at 10.5%, within its target range of 9.5-10.5%.

The strong performance was driven by higher-than-expected market-related gains, lower credit costs, and reduced tax expenses. The company’s guidance appears to incorporate conservative market assumptions, including USD/JPY at 145 and Nikkei at ¥49,000.

Unrealized losses on yen bonds decreased to ¥300.0 billion at the end of September, ¥100.0 billion lower than at the end of March. Unrealized losses on foreign bonds were eliminated completely, down from ¥100.0 billion at the end of March.

The financial group is pursuing growth investments aimed at achieving a long-term ROE of 12%, with potential expansion in India and asset management businesses.

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