MUFJ reports 40% profit surge

Buoyed by strong performance in its fee-related business.

Mitsubishi UFJ Financial Group Inc, Japan's largest banking group, reported a 40% jump in group net profit to US$2.61 billion in the April-June period compared to US$1.87 billion year-on-year.

For the current fiscal year ending in March, MUFG forecasts a net profit of US$7.77 billion.

The results show that Japan's megabanks have been enjoying the recent stock rally, booking gains from their equity holdings and an increase in their fee businesses from the selling of financial products.

Banks, however, have seen a decline in gains from bond trading, their main profit driver in recent years. They have moved to reduce their reliance on Japanese government bonds as the Bank of Japan's new easing measures start to reshape the country's bond markets.