MUFG's annual profit slides 12% as low pastime prices, bank card unit weigh

TOKYO, may additionally 15 (Reuters) - Japan's Mitsubishi UFJ financial community Inc (MUFG) on Wednesday suggested a 12% decline in annual net profit, held back by using razor-thin lending margins and hit by means of a one-time can charge at a bank card unit.

MUFG, Japan's biggest financial institution by way of belongings, posted 873 billion yen ($eight billion) web profit for the 12 months to March 2019, from 990 billion yen a yr prior. The result in comparison with a typical forecast of 979 billion yen in a poll of 15 analysts via Refinitiv.
The bank changed into hit via costs related to suspending building of a new device at its bank card unit, as a result of multiplied competition from cashless services.

MUFG and different japanese banks were suffering diminishing returns from loans to both retail and corporate purchasers as the relevant bank pursues an ultra-low hobby fee policy aimed at stimulating the economic system.

In 2017, MUFG announce d plans to automate almost 10,000 jobs at its core banking unit by 2024, to are trying and cut back the have an impact on that the primary bank's poor pastime costs has had on earnings margins. ($1 = 109.5100 yen) (Reporting by using Junko Fujita; enhancing by using David Dolan and Christopher Cushing)

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