Mitsubishi UFJ Financial Group Achieves Record High Net Profit in FY 2024.

Mitsubishi UFJ Financial Group Inc reported a record high net profit of ¥862.9 billion in FY24, exceeding its medium-term business plan target of 9% return on equity. The financial institution's CFO discussed the financial results and reviewed the progress of its medium-term business plan, highlighting a focus on balance sheet management.

Mitsubishi UFJ Financial Group Inc (MUFG) has reported a record high net profit of ¥862.9 billion in FY24, surpassing its medium-term business plan target of 9% return on equity (ROE). The financial institution's Chief Financial Officer (CFO) discussed the financial results and reviewed the progress of its medium-term business plan, emphasizing a focus on balance sheet management.

During the earnings call, MUFG announced a record high net operating profit, which increased by ¥249.4 billion to ¥1,843.7 billion. This achievement offset the impact of the sale of MUB, demonstrating the company’s robust financial health and operational efficiency [1]. The company also reported an impressive increase in profits attributable to owners of the parent, which surged by ¥374.2 billion year-on-year to ¥1,490.7 billion, marking the highest profit in MUFG’s history [1].

Significant improvements were noted in the expense ratio, which decreased to 61%, down 3.5 percentage points from the previous year. This was driven by gross profit growth and successful expense control measures, enhancing the company’s operational efficiency [1]. Additionally, MUFG announced a dividend per common stock forecast of ¥50, an increase of ¥9 for two consecutive years, and resolved to repurchase its own shares up to ¥100 billion, reflecting its commitment to enhancing shareholder value [1].

Despite these positive developments, MUFG faced several challenges. The company reported a decrease in global markets profit, primarily due to increased foreign currency funding costs in the treasury business and the significant impact of portfolio rebalancing. Additionally, MUFG experienced an increase in credit costs, totaling ¥497.9 billion, due to the absence of reserve reversals from the previous year and an increase in overseas allowances, influenced by acquisitions and individual company factors [1]. The company’s CET1 ratio declined by approximately 50 basis points quarter-on-quarter to 10.1%, indicating areas for improvement in capital management [1].

Looking ahead, MUFG has set ambitious targets for the future. The company aims for a target ROE of around 9% by the end of the new medium-term business plan, with a financial target for FY ’24 set at ¥1.5 trillion in profits attributable to owners of the parent. The company also plans to continue its shareholder return initiatives with a forecasted dividend per common stock of ¥50 and a share repurchase plan of up to ¥100 billion [1].

In conclusion, MUFG’s earnings call presented a slightly positive outlook, driven by record high profits and strategic shareholder return initiatives. Despite facing challenges such as increased credit costs and a decline in the CET1 ratio, the company remains optimistic about its future growth and financial performance.

References:
[1] https://www.tipranks.com/news/company-announcements/mitsubishi-ufj-reports-record-profits-amid-challenges
[2] https://www.investing.com/news/stock-market-news/japans-mufg-posts-record-annual-profit-despite-41-slump-in-q4-4047008
[3] https://www.stocksregister.com/2025/05/19/how-do-things-look-for-mitsubishi-ufj-financial-group-inc-adr-nyse-mufg-in-the-short-term/