TOKYO, April 10 (Reuters) - Mitsubishi UFJ Financial Group (MUFG) plans to book a nearly half-billion-dollar charge to write down the value of branches as the Japanese megabank seeks to consolidate retail outlets in a shrinking domestic market, two people with direct knowledge of the matter said on Tuesday.
The 50 billion yen ($470 million) charge for the year ended in March comes as Japan’s largest lender prepares to close or merge unprofitable domestic branches as part of a broader cost-cutting drive. MUFG has about 500 branches in Japan.
An MUFG spokesman declined to comment.
The bank had forecast a net profit of 950 billion yen for the financial year. At the end of the first nine months, it had already earned 90 percent of the full-year profit forecast. The bank is scheduled to announce its annual results in May.
$1 = 107.0200 yen Reporting by Taro Fuse Writing by Taiga Uranaka Editing by William Mallard