Mitsubishi UFJ Financial Group (8306) 4Q results: Net profit guidance of ¥2.7 trillion a positive surprise; would buy on any pullback

研报英文原文证据摘录

Mitsubishi UFJ Financial Group (8306) 4Q results: Net profit guidance of ¥2.7 trillion a positive surprise; would buy on any pullback

J P M O R G A N Asia Pacific Equity Research

15 May 2026

Mitsubishi UFJ Financial Group

(8306) Overweight

8306.T, 8306 JP

4Q results: Net profit guidance of ¥2.7 trillion a positive Price (15 May 26):¥2,929

surprise; would buy on any pullback Price Target (Dec-26):¥3,760

Positive: 4Q FY2025 net profit was ¥613.7 billion (over 5x YoY), beating our Japan Equity Research

estimate of ¥389 billion. We expected measures to depress 4Q net profit as in

Banks

typical years, but 4Q profit was in line with other quarters this time. FY2025 net

profit came to ¥2.4 trillion, above guidance of ¥2.1 trillion. FY2026 net profit Takahiro Yano, CFA AC

guidance is ¥2.7 trillion (+11% YoY; we expected guidance of ¥2.45 trillion), (81-3) 6736-8616

takahiro.yano@jpmorgan.com

factoring in one additional rate hike during the year.

Kohichi Takano

• CET1 ratio fell sharply and buybacks stayed at ¥100 billion, missing our (81-3)kohichi.takano@jpmorgan.com6736 8621

expectation of ¥250 billion: The CET1 ratio fell from 10.3% at end-December JPMorgan Securities Japan Co., Ltd.

2025 to 9.2% at end-March 2026, below the low end of MUFG's target range

of 9.5-10.5%, mainly because of a 0.65ppt negative impact from the

investment in Shriram Finance (India). There were some unexpected factors,

such as the larger-than-expected end-March loan balance. Given this situation,

MUFG's announced buyback was just ¥100 billion, missing our expectation of

¥250 billion. Management said it kept the amount low to prioritize restoring the

CET1 ratio to the target range and did not become conservative due to macro

uncertainty.