By Kosaku Narioka

Mitsubishi UFJ Financial Group said Tuesday that its first-quarter net profit rose sharply from a year earlier, thanks to gains on debt securities, higher fees and lower credit costs.

The Japanese financial company said net profit rose to 558.39 billion yen ($3.92 billion) for the quarter ended June 30 from Y113.685 billion a year earlier. That beat the estimate of Y397.43 billion from a poll of analysts by FactSet.

First-quarter revenue increased 28% from a year earlier to Y2.774 trillion.

While net interest income fell 41% to Y584.19 billion due partly to one-off factors and a high base a year earlier, net fees and commissions rose 10% to Y368.21 billion, driven by an increase in fees related to overseas loans.

The company also booked net gains on debt securities of Y49.80 billion, compared with losses of Y406.10 billion a year earlier, and total credit costs of Y41.64 billion, lower than Y73.975 billion a year earlier.

Mitsubishi UFJ Financial Group maintained its net-profit guidance for the fiscal year ending March 2024, saying it aims to achieve net profit of Y1.300 trillion.

Write to Kosaku Narioka at

(END) Dow Jones Newswires

08-01-23 0358ET