Gross profits rose to $28.4b due to a jump in market related gains.
Japan’s top lender Mitsubishi UFJ Financial Group’s (MUFG) nine-month FY2020 net profit jumped to $5.8b (¥607b), driven by a lack of net extraordinary losses resulting from one-time amortisation of goodwill, according to a statement.
Gross profits rose $449m (¥47.4b) to $28.4b (¥2.99t) mainly due to an increase in market related gains as well as an increase in net interest income stemming from the consolidation of Bank Danamon.
Total credit costs skyrocketed to $3.26b (¥343.6b) brought about by an increase in credit risk as well as an adoption of new accounting methodology in its overseas subsidiaries.
On the other hand, general and administrative (G&A) expenses decreased ¥33.9bn mainly due to a decrease in domestic expense partially offset by consolidation of Bank Danamon and FSI. The bank’s expense ratio decreased to 67.5%.
Total loans to banking and trust accounts went down to $1.012t (¥106.8t) whilst total investment securities rose to $719.6b (¥75.9t).
The bank’s NPL ratio hit 0.8%.
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