Mitsubishi UFJ Financial FY Profit Down

(RTTNews) - Mitsubishi UFJ Financial Group Inc. (MTU) reported earnings applicable to common shareholders of 802.3 billion yen or 57.51 yen per share for the fiscal year ended March 31, 2016, a decrease from 1.52 trillion yen or 107.50 yen per share for the fiscal year ended March 31, 2015. This decrease was primarily due to a decrease in non-interest income reflecting lower trading account profits, and an increase in non-interest expense reflecting an increase in impairment of goodwill and impairment of intangible assets.

For the fiscal year ended March 31, 2016, the company recorded 231.9 billion yen of provision for credit losses, compared to 87.0 billion yen for the previous fiscal year. The provision for credit losses recorded for the fiscal year ended March 31, 2016 mainly reflected further deterioration in the business and financial performance of a large borrower in the domestic electronics manufacturing industry, and deterioration in the credit conditions of borrowers in the energy sector, which were adversely affected by declining oil and other commodity prices.

Net interest income for the fiscal year ended March 31, 2016 was 2.26 trillion yen, an increase from 2.23 trillion yen for the fiscal year ended March 31, 2015.

Total non-interest income for the fiscal year ended March 31, 2016 was 2.41 trillion yen, a decrease of from 2.85 trillion yen for the fiscal year ended March 31, 2015. The decrease was mainly due to lower trading account profits, partially offset by an increase in foreign exchange gains.