Shares of Mitsubishi UFJ Financial Group (MUFJ) surged on Monday after Japan's largest lender posted record annual profit for a third consecutive year and forecast further earnings growth.
Tokyo-listed shares rose 4.4% to 3,062.0 yen, their highest since mid-February. MUFJ said net profit for the year ended March 2026 rose 31% to 2.43 trillion yen, driven by higher loan and fee income. Quarterly earnings were also boosted by a rebound from losses tied to bond portfolio restructuring a year earlier.
The bank forecast fiscal 2026 net profit of 2.7 trillion yen, as higher Japanese interest rates and wider lending margins lift earnings. MUFG said the Bank of Japan's policy rate could approach 1% during the current fiscal year.
MUFJ also announced a 100 billion yen share buyback for the first half of fiscal 2026 and raised its annual dividend forecast to 96 yen per share from 86 yen in fiscal 2025.
The lender remained cautious about risks from Middle East tensions, private credit market volatility, and cybersecurity threats linked to artificial intelligence.
