UPDATE 1-MUFG likely to beat 2009/10 profit forecast – Jiji

* Likely to post Y370 bln net profit for 2009/10-Jiji

* Above MUFG’s estimate of Y300 bln and Y298.4 bln consensus
(Adds background)

TOKYO, May 18 (BestGrowthStock) – Mitsubishi UFJ Financial Group
(8306.T: ), Japan’s largest bank, is likely to report a net profit
of over 370 billion yen ($4 billion) for the year ended in March,
more than 20 percent above its forecast, Jiji news reported.

MUFG is expected to post a sharp turnaround from the year
before when Japan’s top three banks suffered a combined loss of
1.2 trillion yen ($13 billion), hit by the global financial
turmoil and resulting economic downturn.

Their earnings were buoyed by an absence of the large losses
on their stock portfolios booked a year earlier thanks to a stock
market recovery.

Tokyo’s benchmark Nikkei average (.N225: ) gained 37 percent
last financial year. Japanese banks hold a large portfolio of
shares, mainly to cement ties with borrowers and business
partners.

MUFG has forecast a net profit of 300 billion yen, a sharp
reversal from a 257 billion loss a year earlier.

An MUFG spokesman declined to comment.

The company is scheduled to announce its results after the
close on Tuesday.

MUFG shares were down 0.4 percent in early afternoon, in line
with a fall in Tokyo’s banking subindex (.IBNKS.T: ).

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($1=92.55 Yen)
(Reporting by Taiga Uranaka; Editing by Chris Gallagher)

UPDATE 1-MUFG likely to beat 2009/10 profit forecast – Jiji