MUFG Becomes Japan’s Most Valuable Firm for 1st Time

Tokyo, July 13 (Jiji Press)–Mitsubishi UFJ Financial Group Inc. became Japan’s most valuable company by market capitalization for the first time Monday, thanks to expectations for earnings growth amid an improved business environment following the Bank of Japan’s interest rate hikes. On the Tokyo Stock Exchange, Mitsubishi UFJ closed the day’s session at 3,541 yen, with its market capitalization exceeding 42 trillion yen and surpassing that of Toyota Motor Corp. Mitsubishi UFJ shares hit an all-time high of 3,564 yen during the session. Although banks have always been among the most valuable stock issues, it was the first time for a bank-related issue to top the rankings since 1993, according to an annual survey of listed companies. Mitsubishi UFJ estimates that a 0.25-percentage-point rise in the BOJ’s policy rate boosts its earnings by 180 billion yen. For fiscal 2026, which ends in March 2027, the Japanese megabank group targets a consolidated net profit of 2.7 trillion yen, up 11.2 pct from the previous year, based on the assumption that the BOJ’s policy interest rate will remain at around 1 pct, a level reached after the central bank raised the rate from around 0.75 pct at its June policy-setting meeting. Other bank-related issues also fared well Monday, with the stock price of Sumitomo Mitsui Financial Group Inc. briefly hitting an all-time high of 7,029 yen. Besides expectations for further interest rate hikes, investors likely believed that companies would be more willing to increase capital investment, according to market sources. END [Copyright The Jiji Press, Ltd.]