MUFG - Mitsubishi UFJ Rides on Strategic Buyouts Amid Lower NII | Benzinga
Mitsubishi UFJ Financial Group's (NYSE: MUFG) strategic buyouts and focus on business upgradation plans will support its financials in the long run. Also, its strong liquidity profile and capital strength support the share repurchase plan. On the flip side, lower net interest income (NII) is expected to limit revenue growth in the near term. Besides, high costs are likely to impede bottom-line growth.
The bank is focused on expanding inorganically and is actively seeking new growth opportunities globally. Since 2016, the bank has completed several acquisitions to expand its global footprint. In May 2024, MUFG acquired 100% of the issued shares of Link Administration Holdings Limited, which will further expand its operations globally via access to Australian funds and corporate clients worldwide. In 2023, the company, through MUFG Bank and PT Adira Dinamika Multi Finance Tbk, announced the acquisition of 80.6% shares in PT Mandala Multifinance Tbk. With this, the company expands its auto loan business in Indonesia. These efforts to grow inorganically show the bank's ongoing commitment to expanding its market reach and enhancing its service offerings globally.
Apart from strategic acquisitions, Mitsubishi UFJ is focused on its updated Medium-term Business ...