By Kosaku Narioka

Mitsubishi UFJ Financial Group is scheduled to report its third-quarter results on Tuesday. Here's what you need to know:

NET PROFIT FORECAST: Mitsubishi UFJ Financial Group is expected to post a 16% drop in net profit to 310.5 billion yen, equivalent to $2.01 billion, for the three months ended December, according to a poll of analysts by Visible Alpha. That would compare with Y370.6 billion net profit in the year-earlier period.

The stock has gained 4.3% so far this year to close at Y1,926 on Monday, following a 52% rise in 2024. The stock has gained in recent months on continuing hopes for the return of modest inflation in Japan and the central bank's shift away from low interest rates.

WHAT TO WATCH:

--In November, Mitsubishi UFJ raised its net profit guidance to Y1.75 trillion from Y1.50 trillion for the fiscal year ending March. Investors will be closely watching any changes the management may make to the annual guidance.

--First-half net interest income rose 23% from a year earlier to Y1.509 trillion as lending spreads widened at home and abroad. Investors will be focusing on further growth in the company's primary source of earnings as the Bank of Japan has raised its policy rate gradually.

--Mitsubishi UFJ booked net gains on debt securities of Y2.39 billion in its first half, compared with losses of Y49.80 billion in the year-earlier period. Investors will be paying attention to any potential losses from bond trading as interest rates have risen in Japan.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

February 03, 2025 21:41 ET (02:41 GMT)

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