Mitsubishi UFJ Financial Group Inc. raised its full-year profit target by 50 percent as a gain from a conversion of shares in Morgan Stanley offset a lending slump.

The ¥900 billion goal for the 12 months ending in March compares with ¥600 billion predicted previously, Mitsubishi UFJ said Monday in a statement.

Sumitomo Mitsui Financial Group Inc., MUFG's closest domestic rival, boosted its profit forecast to ¥500 billion as bad loans fell.