Mitsubishi UFJ Financial Group 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, with its market capitalization exceeding ?42 trillion and surpassing that of Toyota. Mitsubishi UFJ shares hit an all-time high of ?3,564 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.
For fiscal 2026, which ends in March 2027, the megabank group targets a consolidated net profit of ?2.7 trillion, up 11.2% from the previous year, based on the assumption that the BOJ¡¯s policy interest rate will remain at around 1%, a level reached after the central bank raised the rate from around 0.75% at its June policy-setting meeting.
Other bank-related issues also fared well Monday, with the stock price of Sumitomo Mitsui Financial Group briefly hitting an all-time high of ?7,029. Besides expectations for further interest rate hikes, investors likely believed that companies would be more willing to increase capital investment, according to market sources.
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