Finance Feeds logo

Mitsubishi UFJ Financial Group cuts FY2020 profit forecast by ¥150bn

Maria Nikolova

The downward revision represents a 16.7% cut from the previous earnings forecast.

Mitsubishi UFJ Financial Group Inc (TYO:8306), also known as MUFG, has earlier today released a notice regarding its earnings outlook for the fiscal year to end-March 2020.

MUFG revised its earnings target for profits attributable to owners of parent for the fiscal year ending March 31, 2020, originally announced on May 15, 2019. The previous forecast was for annual earnings of ¥900 billion, whereas the revised estimates point to a target of ¥750 billion. The cut is 16.7%, or ¥150 billion.

Dividend forecasts are unchanged.

In the consolidated financial statements for the third quarter of the fiscal year ending March 31, 2020 under Japanese GAAP, an extraordinary loss of ¥207.4 billion was recorded due to the one-time amortization of goodwill associated with an impairment of PT Bank Danamon Indonesia, Tbk. stock. In accordance with this loss, MUFG has revised its earnings target downward based on the share price as of December 31, 2019.

If Bank Danamon’s share price recovers at the end of the fiscal year, the amortization will be reversed for the full fiscal year ending March 31, 2020. Accordingly, actual results may change significantly depending on Bank Danamon’s share price at the end of the fiscal year, MUFG notes.

In May 2019, MUFG’s core banking subsidiary MUFG Bank announced that its consolidated subsidiaries, PT Bank Danamon Indonesia, Tbk, and PT Bank Nusantara Parahyangan Tbk. completed their merger. As a result of the deal, MUFG Bank holds a 94.1% stake in Bank Danamon.

Subscribe

Read this next

Fintech

Sterling to provide risk and margin support for fixed income

“Firms must have the tools to effectively manage their risk across all asset classes. As yields rise, we see more exposure from clients in the fixed income space. We understand their need to measure and mitigate risk in a highly regulated environment.”

Retail FX

FXOpen launches HK share CFDs: Tencent, Alibaba, Xiaomi, Baidu

Hong Kong share CFDs will be commission-free for a limited period of time.

Retail FX

IronFX Celebrates an Award-Winning Start to 2024 with a Series of Industry Recognitions

IronFX, a global leader in online trading, has embarked on 2024 with a spectacular display of accolades that highlight its commitment to excellence and innovation in the competitive financial services sector.

Industry News

FIA urges CFTC to regulate use cases rather than AI itself

“We urge the CFTC to refrain from crafting new regulations that generally regulate AI because this approach presents certain well-known pitfalls. By approaching the issue from the perspective of AI as a technology, rather than the use case for the technology, corresponding regulations would likely necessitate a definition of AI. We anticipate that any attempt to properly define AI would be very challenging and require considerable resources.”

Education, Inside View

The Power of Public Relations in Finance: Shaping Perceptions & Building Reputation

It’s safe to say that the finance industry has faced its share of reputation crises over the years, from the 2008 financial collapse to the many scandals around irresponsible lending, political corruption, and even Ponzi schemes. 

Journalists interviewing a man with blue and red microphone
Digital Assets

Crossover’s crypto ECN executed over $3 billion in Q1 2024

“Our growth is also driving continued increases in the percentages of trades that are ‘Order Crossing Order’ (OXO). Currently, roughly 10% of all trades executed on CROSSx are OXO, another differentiator in our platform’s capacity. This capacity and our unique execution model provide value to both the market maker and taker, as evidenced by our commercial model.”

blockdag

BlockDAG’s Explosive Presale Hits $20.3M In April Swaying Investors From XRP’s Price Trends Upward, & Polygon’s NFT Market

Learn about BlockDAG’s impressive $20.3M presale results, XRP’s price increase prospects, and the booming NFT market on Polygon among the top 10 cryptocurrencies.

Trading graph of top crypto presale of 2024
Retail FX

Financial Commission warns of Eplanet Brokers

The Financial Commission, a self-regulatory compliance specialist for the financial services industry, is ramping up its scrutiny of unregulated brokerage firms. Today, the independent association warned against a company called Eplanet Brokers.

The Financial Commission
Retail FX

Dubai crypto exchange steps into prop trading

Dubai-based cryptocurrency trading platform, CoinW Exchange, marked its sixth anniversary by announcing a rebranding initiative and launching a proprietary trading product.

<
✖