Mitsubishi UFJ Financial Group Inc. has posted its first quarterly loss in a decade and cut its annual profit forecast after booking a hefty charge on its stake in an Indonesian bank.

Core lending business slumped in the fiscal third-quarter, covering October to December, underscoring the challenge for Hironori Kamezawa when he takes over from Kanetsugu Mike as chief executive officer in April. Gains from sales of shareholdings and bonds weren't enough to prop up earnings, and bad-loan costs ticked higher, results showed Tuesday.

Japan's biggest bank had already flagged the ¥207.4 billion ($1.9 billion) charge on its stake in PT Bank Danamon Indonesia, which reflects a drop in the share price of the recently acquired lender. Adding to the pain, it logged a ¥26.7 billion impairment on its U.S. banking operations, where it has had to refinance mortgages after the Federal Reserve cut interest rates.