10 Best Japanese Stocks To Buy Now

03. Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG)

Number of Hedge Fund Holders: 14

Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) is a prominent Japanese financial institution. Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) operates as the bank holding company, that engages in a range of financial businesses in Japan, the United States, Europe, Asia and internationally. Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) has demonstrated impressive financial resilience, as reflected in its Q4 2024 earnings report, underscoring its potential as a solid investment.

In FY 2023, the company reported a record-high net operating profit of ¥1,843.7 billion, a year over year increase of ¥249.4 billion, showcasing its strong operational efficiency. This performance is particularly impressive given the absence of revenue from the sale of MUFG Union Bank (MUB). Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) strategic portfolio rebalancing helped the firm navigate global market fluctuations, while its core operations, such as lending and deposit interest income, saw growth. This is a significant indicator of the company’s operational strength, driving steady top-line growth across its key customer segments.

Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) financial metrics further support its bullish outlook. Net interest income increased on a real basis, excluding the effect of the MUB sale, demonstrating solid growth in the company’s core lending activities. Additionally, the firm saw a sharp increase of ¥130 billion in net fees and commissions, driven by increased income from foreign loans, asset management, and wealth management services. These are positive signs for the company’s ability to generate consistent revenue streams.

Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) efficiency improvements are also noteworthy, with a ¥19.9 billion reduction in general and administrative expenses, despite inflation and a weaker yen. The expense ratio improved to 61%, down by 3.5 percentage points, reflecting disciplined cost management. This cost control, combined with strong profit growth, underscores the firm’s operational efficiency.

The company also saw a significant increase in profits attributable to owners of the parent, up by ¥374.2 billion to a record ¥1,490.7 billion. This reflects a healthy return on equity (ROE) of 8.5%, reinforcing the firm’s profitability. With strong fundamentals, effective expense control, and growing revenues, Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) stands out as a top Japanese stock for investors seeking growth and stability in the financial sector.