May 15, 2020 / 8:24 AM / 21 days ago

Japan's top bank MUFG forecasts weaker than expected annual profit on virus hit

TOKYO, May 15 (Reuters) - Mitsubishi UFJ Financial Group Inc (MUFG), Japan’s largest lender by assets, forecast on Friday a full year profit that fell short of analysts’ expectations on coronavirus-related credit costs.

MUFG, which owns 24% of Wall Street investment bank Morgan Stanley, expects 550 billion yen ($5.14 billion) in net income for the year ending in March 2021, compared with an average 762.6 billion forecast of 12 analysts polled by Refinitiv.

The bank said it expects 450 billion yen of credit-related costs for the current business year due to the coronavirus outbreak.

Annual net profit for the year that ended in March was 528.2 billion yen, compared with analysts’ estimate of 668.3 billion.

The lender had cut its annual net profit estimate to 520 billion yen from 750 billion yen due to an impairment charge on its units including PT Bank Danamon Indonesia Tbk and Thailand’s Bank of Ayudhya PCL.

The one-off charge also led MUFG to a 56.1 billion yen net loss in the fourth quarter, its second consecutive quarterly loss, according to Reuters’ calculations based on full-year figures it disclosed in a stock exchange filing. ($1 = 107.0900 yen) (Reporting by Takashi Umekawa; Editing by Muralikumar Anantharaman)

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