TOKYO, Nov 14 (Reuters) - Mitsubishi UFJ Financial Group (MUFG), Japan's biggest bank by assets, posted a 58 percent decline in first-half net profit from a year earlier, when the lender made a hefty one-time gain from its investment in Morgan Stanley.
Net profit fell to 290.5 billion yen ($3.66 billion) in April-September from 696.1 billion yen a year earlier, MUFG said on Wednesday.
Earnings were also hurt by losses on its equity portfolio. Japanese banks traditionally own stakes in their corporate clients, making the lenders highly vulnerable to stock market swings.
For the full year through March 2013, the bank kept its full-year net profit forecast at 670 billion yen, in line with an average estimate of 673.3 billion yen in a poll of 17 analysts by Thomson Reuters.
Shares of MUFG have risen 5.5 percent so far this year, compared with a 2.5 percent gain in the benchmark Nikkei average .
In late 2008, MUFG paid $9 billion to acquire convertible preferred shares in Morgan Stanley after the Lehman Brothers crisis.
Last year, the Japanese lender made a 290 billion yen investment gain when Morgan Stanley agreed to convert most of the preferred stock into common shares to cut around $800 million of yearly dividend payments.