Mitsubishi Tokyo Financial Group Aims to Boost Profits
Barney Jopson and David Pilling of the Financial Times report that Nobuo Kuroyanagi, president of Mitsubishi Tokyo Financial Group (MTFG), aims to increase profits after the bank's recent emergence from a bad-debt funk. MTFG has managed to reduce non-performing loans to 2.9% of total loans, a significant improvement from 5.3% a year earlier. The bank is seeking to build on this progress, with Kuroyanagi vowing to implement measures to increase profits over the next three years.
Key Takeaways:
- MTFG has reduced non-performing loans to 2.9% of total loans, down from 5.3% a year earlier
- The bank has made a profit of Y560.8bn, its first since it merged three years ago
- Kuroyanagi has set ambitious targets to cut the ratio of costs to income from 55% to 45% and increase net profits before extraordinary items from Y400bn to Y600bn within three years
- The bank aims to increase market capitalization and rise to the 10th rank globally within three years
- Kuroyanagi plans to transition away from an old style of banking, where banks relied on unbreakable relationships with customers, and move towards a more competitive and service-oriented model
Statistics:
- MTFG's non-performing loan ratio has decreased from 5.3% to 2.9% of total loans in a year
- The bank made a profit of Y560.8bn, its first since it merged three years ago
- Kuroyanagi aims to reduce the ratio of costs to income from 55% to 45% within three years
- MTFG targets a Y400bn increase in net profits before extraordinary items within three years from Y400bn
- The bank aims to reach the 10th rank globally in market capitalization within three years
Sources:
- Financial Times, Barney Jopson and David Pilling, February 2005 (no exact date provided)
- Nobuo Kuroyanagi, president of Mitsubishi Tokyo Financial Group (MTFG)