Japan’s largest lender Mitsubishi UFJ Financial Group is on track for record net income of JPY1.75tr (USD11bn) this fiscal year, buoyed by higher interest rates, a favourable stock market, and yen weakness. With shares trading at two-decade highs, management is considering how to sustain earnings growth once temporary tailwinds abate. The bank aims to maintain steady investments in technology, Asia-focused fintech, and higher-return businesses to boost fee income and narrow the gap with global peers on return on equity. Analysts note that overseas investors, who had largely exited during Japan’s negative-rate period, are re-engaging, driving MUFG’s market value to around USD150bn. Additional share buybacks remain an option as leadership seeks to raise the price-to-book ratio above 1.2 and match European banks.