Mitsubishi UFJ Financial Group (MBFJF) Q2 2026 Earnings Report

The call was strongly positive overall. MUFG reported record first-half profit of JPY 1,292.9 billion, raised its full-year net income target to JPY 2.1 trillion, increased its dividend forecast and expanded share repurchases. Core operating performance, fee income, loan growth, credit costs and strategic initiatives were all described favorably. The main challenges were higher expenses, the year-on-year decline in equity-sale gains, a lower CET1 ratio, slower second-half treasury gains, tariff uncertainty and the economic slowdown in Asia.

For FY '25, MUFG revised its net income target up by JPY 100 billion from JPY 2 trillion to JPY 2.1 trillion, with customer segment NOP expected to exceed the initial plan by around JPY 30 billion, the revision of financial indicators expected to have an impact of approximately JPY 30 billion, and one-offs accounting for approximately JPY 40 billion; it forecasts strong yen toward the end of the fiscal year, slower treasury sales in the second half, credit costs in line with its initial forecast, though the full year will depend on the impact of tariffs, and an increase in strategic expense allocation. The full year outlook for credit costs was kept unchanged, the CET1 ratio is expected to be somewhere between 10% and 10.5%, the dividend payout ratio remains approximately 40%, the annual dividend forecast was revised up to JPY 74, and additional share repurchases of JPY 250 billion bring the total amount for the full year to JPY 500 billion. MUFG continues to target an ROE of 12% under assumptions that the policy rate will rise to around 1% and there will be no gain on sale of equity holdings.