Japans largest lender MUFG logs 6% growth in third-quarter profit

Published Wed, Feb 4, 2026 · 04:03 PM

Japan’s Mitsubishi UFJ Financial Group (MUFG) booked a 6 per cent rise in third-quarter net profit, it said on Wednesday (Feb 4).

The banking group generated 520.6 billion yen (S$4.2 billion) in net profit in the October-to-December period, compared with 490.7 billion yen over the same period the previous year.

The results round off a strong third quarter for Japan’s megabanks in which MUFG’s smaller rivals Sumitomo Mitsui Financial Group and Mizuho Financial Group posted quarterly growth of 12 per cent and 14 per cent respectively.

Cashing in on the long-awaited end of negative interest rates in Japan, robust loan demand and improved loan-to-deposit spreads have meant each is well on track for the record profits they have forecast for this financial year.

MUFG maintained its record annual profit forecast of 2.1 trillion yen for the year ending March 2026 and had hit 86 per cent of the target after three quarters.

In addition, as the banks struggled to eke out returns in Japan they looked abroad in search of higher yields. MUFG’s overseas loans totalled 53.1 trillion yen at the end of December as compared to 77.1 trillion yen for domestic loans.

SEE ALSO

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

MUFG recently acquired 20 per cent of non-bank lender Shriram Finance, which MUFG’s leadership sees as a means of lifting group profitability further. REUTERS

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.