Business / Corporate

MUFG president tells investors of bank's plans to shutter 80 more outlets in Japan

JIJI

Mitsubishi UFJ Financial Group Inc. President Kanetsugu Mike said core unit MUFG Bank will scrap about 80 more branches in Japan in a bid to further cut costs and improve earnings.

He announced the plan at a meeting Monday with investors. Previously, the bank planned to reduce its domestic branches by some 100 from 500 by fiscal 2023.

In the business year to March, Mitsubishi UFJ Financial’s real net profit from its core banking operations fell 25 percent from the previous year.

Mike said that the Mitsubishi UFJ group will join all forces to push ahead with structural reforms.

Mike also said MUFG Bank will likely be able to reduce its duties equivalent to over 10,000 jobs by fiscal 2023, more than the 9,500 jobs earlier estimated, mainly by automating some of its operations through the use of information technology.

Banks in Japan have been facing earnings deterioration due to ultralow interest rates stemming from the Bank of Japan’s very accommodative monetary policy.

Among other major banking groups, Mizuho Financial Group Inc. said last week that it will reduce the number of its domestic branches by 130 by fiscal 2024, more than the earlier planned 100.