Mitsubishi UFJ Financial Group has announced a significant increase in net profit for the first quarter of the fiscal year. This growth can be attributed to gains on debt securities, higher fees, and reduced credit costs.

Impressive Financial Performance

For the quarter ended June 30, the Japanese financial company reported a net profit of 558.39 billion yen ($3.92 billion). This represents a substantial rise from the net profit of Y113.685 billion recorded in the same period last year. The results surpassed analysts' expectations, as the estimated net profit was projected to be Y397.43 billion.

First-quarter revenue also witnessed a substantial increase, climbing by 28% compared to the previous year. The total revenue for this period reached Y2.774 trillion.

Factors Influencing Net Interest Income

While net interest income declined by 41% to Y584.19 billion, several one-off factors and a high base in the preceding year contributed to this decrease. However, net fees and commissions experienced a positive momentum, rising by 10% to Y368.21 billion. This growth was primarily driven by increased fees associated with overseas loans.

Improved Performance in Debt Securities and Credit Costs

Mitsubishi UFJ Financial Group achieved notable gains on debt securities during the first quarter, totaling Y49.80 billion. This is a significant improvement from the losses of Y406.10 billion incurred in the same period last year. Additionally, the company reported lower total credit costs of Y41.64 billion, down from Y73.975 billion in the previous year.

Maintaining Profit Guidance

Despite the ever-changing market conditions, Mitsubishi UFJ Financial Group remains confident in its future performance. The company has maintained its net-profit guidance for the fiscal year ending March 2024, aiming to achieve a net profit of Y1.300 trillion.

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