Mitsubishi UFJ raises full-year profit target by 50%

The Japanese bank's gain from conversion of shares in Morgan Stanley drove the profit target increase.

Bloomberg noted, citing Mitsubishi UFJ's statement, that the 900 billion yen ($11.7 billion) goal for the 12 months ending March compares with 600 billion yen predicted previously.

Mitsubishi's rival, Sumitomo Mitsui Financial Group Inc. also raised its profit forecast to 500 billion yen.

In the report, Katsuhito Sasajima, an analyst at JPMorgan Chase & Co. in Tokyo, said “[w]ithout the gains from the Morgan Stanley share conversion, Mitsubishi UFJ’s earnings signal that the banks can’t count on a recovery in local loan demand."

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