Tokyo. Mitsubishi UFJ Financial Group on Wednesday reported a 53 percent jump in fiscal first-half profit and disclosed plans to raise up to $11.2 billion as Japan’s biggest bank seeks to shore up its balance sheet.
The Tokyo-based bank credited economic recovery in the United States, Europe, Japan and the rest of Asia for helping to boost profit for the April-September period to 140.95 billion yen ($1.58 billion) from 92.02 billion yen the same period the previous year.
Mitsubishi UFJ, which did not break down quarterly numbers, said it was on track to meet its earnings target for the fiscal year through March 2010, which was unchanged at 300 billion yen.
Mitsubishi UFJ posted a 256.9 billion yen loss for the fiscal year ended March 31.
Revenue in the first half slid 10.5 percent to 2.618 trillion yen.
The public offering in Japan of shares to be issued from Nov. 26 through Nov. 25, 2010, is designed to raise up to 1 trillion yen to shore up the capital base of its banking operations, the group said.
Mitsubishi UFJ, with total assets of more than 198 trillion yen, also outlined changes it made to its earlier plan to merge its securities operations in Japan with those of US investment bank Morgan Stanley, citing financial regulatory concerns.
Earlier this year, both sides said they would merge their Japanese brokerage units into a new securities company.
Under the latest plan, one entity called Mitsubishi UFJ Morgan Stanley Securities will include the wholesale and retail businesses of Mitsubishi UFJ Securities and the investment banking operations of Morgan Stanley Japan Securities.
The other component, called Morgan Stanley MUFG Securities, will take over all of the operations of Morgan Stanley Japan Securities with the exception of investment banking.
The plan is expected to be completed by May 2010, and both will be owned 60 percent by MUFG, and 40 percent by Morgan Stanley, both companies said in a statement.
“We are pleased with the progress we are making in our global alliance with Morgan Stanley,” said MUFG’s chief executive, Nobuo Kuroyanagi.
Other major Japanese banks have also reported healthier earnings results, helped by a gradual global recovery.
Mizuho Financial Group, Japan’s second-biggest banking group, is expecting a 200 billion yen profit for the fiscal year ending March 2010.
It had racked up a 588.8 billion yen loss for the fiscal year ended March 2009.
Sumitomo Mitsui Financial Group, the smallest of Japan’s “Big Three” megabanks, forecasts a 220 billion yen profit, a reversal from the 373.5 billion yen loss it posted the previous year — its first annual loss in four years.