Mitsubishi UFJ passes Toyota to lead Japan’s market value rankings
Bank of Japan rate rises lifted confidence in the megabank's profit outlook, sending its shares to a record and its valuation beyond Toyota.
- Mitsubishi UFJ Financial Group has overtaken Toyota Motor Corp. to become Japan's most valuable company by market capitalization.
- The bank's rise was driven by expectations of stronger earnings following the Bank of Japan's interest rate increases, which pushed its shares to a record high.
- Mitsubishi UFJ's market valuation surpassed 42 trillion yen to claim the top position.
- This is the first time a bank has held the top spot in Japan's market value rankings since 1993.
Mitsubishi UFJ overtakes Toyota as Japan’s most valuable company
Expectations of stronger earnings after the Bank of Japan’s rate increases lifted the megabank’s shares to a record and pushed its valuation above 42 trillion yen.
Mitsubishi UFJ Financial Group Inc. overtook Toyota Motor Corp. to become Japan’s most valuable company by market capitalisation for the first time on Monday, 13 July, as the Bank of Japan’s interest-rate increases improved the operating environment for banks and strengthened expectations of profit growth.
Its shares closed at 3,541 yen on the Tokyo Stock Exchange after reaching an all-time high of 3,564 yen during the session.
The advance lifted Mitsubishi UFJ’s market capitalisation above 42 trillion yen, taking it past Toyota.
Although banking stocks have long been among Japan’s most valuable listed shares, an annual survey of listed companies showed that no bank-related issue had occupied the top position since 1993.
Mitsubishi UFJ estimates that every 0.25-percentage-point increase in the BOJ’s policy rate would raise its earnings by 180 billion yen.
For fiscal 2026, ending in March 2027, the megabank group is targeting consolidated net profit of 2.7 trillion yen, an increase of 11.2 per cent from the previous year.
The projection assumes that the BOJ’s policy rate will remain at about 1 per cent, the level reached after the central bank raised it from around 0.75 per cent at its June policy-setting meeting.
Other banking shares also performed strongly on Monday.
Sumitomo Mitsui Financial Group Inc. briefly reached an all-time high of 7,029 yen.
Market sources said investors were probably encouraged both by expectations of further interest-rate increases and by the belief that companies would become more willing to expand capital investment.
[Copyright The Jiji Press, Ltd.]
