Mitsubishi UFJ profit drops 64%

Mitsubishi UFJ full-year outlook was lowered in October

Japanese banking giant Mitsubishi UFJ Financial has posted a 64% drop in its first-half profit but reiterated its lowered full-year forecast.

Net profit fell to 92bn yen ($953m, £637m) in the six months to the end of September from 256.7bn yen a year ago.

Recession in Japan, losses related to stock holdings and rising bad-loan costs contributed to the profit fall.

But the company expects to post a 220bn yen net full-year profit, its smallest in six years.

The full-year profit outlook was lowered in October.

Like other finance firms, the bank - which bought a 21% stake in Morgan Stanley for $9bn - has seen its market value shrink in the falling stock market.

Its shares have fallen almost 50% this year. On Tuesday, before the earnings announcement, they lost 6.7%.

At the end of October Mitsubishi UFJ Financial decided to ask investors for up to 990bn yen in a bid to strengthen its funding levels.