(Bloomberg) -- Mitsubishi UFJ Financial Group Inc. reported quarterly profit that beat estimates, joining smaller rival Mizuho Financial Group Inc. in pointing to higher revenue from loans driven by rising rates in Japan.
The nation’s largest bank said net income came in at ¥555.9 billion ($3.7 billion) for its fiscal first quarter ended in June, accounting for more than a third of its annual projection of ¥1.5 trillion. The results were well above the ¥410.9 billion estimate of four analysts surveyed by Bloomberg. Profit fell slightly from the year earlier period which was boosted by accounting changes around its 23% stake in Morgan Stanley.
Shares of the country’s lenders soared after the Bank of Japan tightened monetary policy on Wednesday, in a move that’s set to boost lending revenues for banks. MUFG’s banking arm in turn said it plans to raise its short-term prime rate in September.
The beat comes after Mizuho reported results that beat analysts’ expectations, driven by its lending and trading businesses.
--With assistance from Hideki Suzuki.
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