Japans Mitsubishi UFJ profits plummet 64 percent

Mitsubishi UFJ Financial (NYSE:MTU) the giant Japanese bank has announced a fall of 64 percent in its first-half profit but repeats its lowered full-year forecast.

In the first six months to September end net profits dropped to 92 billion yen (£637m, $953m) from 256.7 billion yen a year ago.

With Japan now officially in recession and rising bad-loan cost have driven profits down. However Mitsubishi UFJ is likely to post the smallest net full-year profit in six years of 220 billion yen.

Mitsubishi UFJ brought 21 percent of Morgan Stanley that cost the bank $9 billion, but have seen its market value decreasing in the falling stock market. With shares in the Japanese bank dropping nearly 50 percent this year.

Investors were asked for up to 990 billion yen at the end of October to shore up Mitsubishi UFJ funding levels.

Source: BBC