Mitsubishi UFJ Financial Group¡¯s profit rose in the third quarter as higher interest rates boosted lending income.
Net income climbed 6% from a year earlier to ?520.6 billion ($3.3 billion) in the three months ended Dec. 31, according to calculations based on nine-month results released Wednesday. That beat the ?505.1 billion average estimate by five analysts compiled by Bloomberg.
In the first nine months, MUFG earned 86% of its ?2.1 trillion annual net income forecast, which it left unchanged.
Japan¡¯s largest lender wrapped up a robust earnings season for the country¡¯s top banks. Profit at Sumitomo Mitsui Financial Group and Mizuho Financial Group also exceeded analysts¡¯ projections, and the latter¡¯s stock rose sharply this week after it announced an expanded share buyback.
The bumper year is being helped by increases in the Bank of Japan¡¯s interest rates, buoying domestic lending income. The lenders have also been booking gains by selling stakes in client companies at a time when the stock market is trading near a record.
Chief Executive Officer Hironori Kamezawa, who has been in the position since 2020, is stepping down at the end of the current fiscal year. Junichi Hanzawa, head of the banking unit, will take over on April 1.
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