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8411 - Mizuho Financial Inc News Story

¥132.9 1.0  0.8%

Last Trade - 07/08/20

Large Cap
Market Cap £24.29bn
Enterprise Value £30.12bn
Revenue £19.85bn
Position in Universe 31st / 3862

Japan's MUFG to close up to 40% of domestic bank branches

Wed 20th May, 2020 7:23am
TOKYO, May 20 (Reuters) - Japan's Mitsubishi UFJ Financial
Group Inc (MUFG)  8306.T  said on Wednesday it would shutter up
to 40% of its domestic branches by fiscal 2023 as the lender
plans to adopt more cost-cutting measures in response to the
coronavirus crisis.
    MUFG, the country's largest lender by assets, had initially
planned to reduce its local branches by 35%. The pandemic forced
the Japanese company to widen the number of branch closures to
keep a tab on their costs. 
    Banks have largely been excluded from government-mandated
shutdowns across the country because they are considered an
essential industry, meaning most bank branches, call centers and
trading floors have stayed open even as many firms sent their
employees home.    
    The global economy is bracing for the worst slump since the
Great Depression due to the pandemic and the world's
third-largest economy, in particular, is facing severe downturn
in demand. 
    MUFG, which owns 24% of Wall Street investment bank Morgan
Stanley  MS.N , had pledged in 2018 to review the number of
branches as the lender recognized that customers were
drastically shifting to the internet banking mode. 
    While almost 45% of 93 million transfer transactions was
made through the smartphone app in fiscal 2019, only 2% was
conducted at retail branches, MUFG said in a statement on
    Three major banks - MUFG, Sumitomo Mitsui Financial Group
Inc  8316.T  and Mizuho Financial Group Inc  8411.T  - have
estimated a collective 1.1 trillion yen ($10.2 billion) in
credit costs for the current financial year.  urn:newsml:reuters.com:*:nL4N2CX1N4   
    Given the shift in foot traffic and market dynamics, MUFG
said it will try to strengthen its online banking presence. 
    The lender also said it expects 6,000 job losses through
attrition by fiscal 2023, highlighting its struggle to maintain
profits amid ultra-low interest rates. 
    ($1 = 107.7600 yen)

 (Reporting by Takashi Umekawa, Editing by Sherry
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