On May 25, Zacks Investment Research upgraded Mitsubishi UFJ Financial Group Inc. (MTU) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Mitsubishi UFJ has been witnessing rising earnings estimates on the back of strong results in the fiscal year ended Mar 31, 2013. Moreover, this well known foreign bank delivered a year-to-date return of 9.5%.
Mitsubishi UFJ reported fiscal year ended Mar 31, 2013 results on May 15. Gross profits for the year ended were ¥3,634.2 billion ($44.0 billion), up 3.8% year over year. Gross profits improved mainly due to net fees and commissions, rise in income from sales and trading, as well as net gains on debt securities. Key positives for the quarter were growth in deposits and loans along with decreased credit costs.
Mitsubishi UFJ’s balance sheet indicated a strong capital position. As of Mar 31, 2013, total loans stood at ¥91.3 trillion ($0.97 trillion), up from ¥84.5 trillion ($1.0 trillion) as of Mar 31, 2012. The increases were primarily due to higher demand in domestic corporate loans and overseas loans. Moreover, deposits climbed to ¥131.7 trillion ($1.4 trillion), up 5.5% year over year.
Mitsubishi UFJ Financial is targeting ¥760 billion ($8.1 billion) of consolidated net income for the fiscal year ending Mar 31, 2014.
The Zacks Consensus Estimate for 2013 increased 5.3% to 60 cents per share over the last 30 days. For 2014, the Zacks Consensus Estimate jumped 2.0% to 52 cents per share over the same time frame.
Other Stocks to Consider
Well performing foreign banks that are worth considering include National Bank of Canada (NTIOF), UBS AG (UBS) and Deutsche Bank AG (DB), all of which carry a Zacks Rank #2 (Buy).
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment