TOKYO - Mitsubishi UFJ Financial Group Inc (MUFG) recorded a net loss of US$236 million in the third quarter of 2019, its first loss in almost a decade, following a drop in the stock price of PT Bank Danamon Tbk (BDMN). MUFG currently owns a 94.1% stake in Bank Danamon.
As reported by Reuters, Bank Danamon’s stock price drop prompted MUFG’s core unit MUFG Bank to book US$1.9 billion in one-off charge for Q3-2019. Subsequently, its initial 2019 net profit outlook of US$8.2 billion was slashed to US$6.8 billion.
Meanwhile, MUFG’s trading division posted an increase in operating profit by 35.2% year on year (yoy) to US$2.5 billion as of December 2019. The growth was supported by sales of foreign bonds. (MS)