Mitsubishi UFJ (MTU) To Post Q3 Earnings: What's In Store?
Zacks Investment Research | Jan 30, 2018 09:15PM ET
Mitsubishi UFJ Financial Group (NYSE:MTU) is scheduled to report third-quarter fiscal 2018 (ended Dec 31, 2017) results on Feb 2.
The banking giant of Japan reported profits attributable to owners of parent of ¥629.9 billion ($5.6 billion) for the first six months of fiscal year ended Mar 31, 2018, up 27.8% year over year. Results reflected increased gross profits and a fall in net interest income. Higher general and administrative expenses posed a headwind.
Further, Mitsubishi UFJ has gained 17.6% on the NYSE over the past six months, outperforming the 13.2% rally of the industry it belongs to.
Factors to Impact Q3 Results
Net Interest Income Under Pressure: Profitability of Mitsubishi UFJ is likely to be hit by sluggish economic growth in Japan and persistent negative interest rate environment that was adopted by the Bank of Japan in early 2016. Though the central bank aims to boost growth and inflation through a negative interest rates policy, this will likely keep Mitsubishi UFJ’s net interest income under pressure.
Expenses Might Rise: Bottom-line growth might be hurt by continued rise in expenses, driven by digital investment and branch network restructuring in Japan and abroad.
Investment Banking Fees Likely to Rise: Global investment banking fees were slightly higher on a year-over-year basis in the last three months of 2017. Strong rally in the equity markets worldwide might have propelled IPOs and follow-on offerings across the world. Thus, the company might have recorded higher fee income.
Reaffirmation of Net Income Target: Notably, Mitsubishi UFJ targets to deliver ¥950 billion of consolidated net income for the fiscal year ending Mar 31, 2018, indicating an increase of 2.5% year over year.
Mitsubishi UFJ carries a Zacks Rank #3 (Hold). You can see .
Earnings Schedule of Other Foreign Stocks
Among other foreign banks, Sumitomo Mitsui Financial Group (NYSE:SMFG) is scheduled to report results on Feb 2 while Macro Bank (NYSE:BMA) and Banco Bilbao Viscaya Argentaria S.A. (NYSE:BBVA) are scheduled to report on Feb 21 and Feb 7, respectively.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Get The News You Want
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.