April 22, 2019 / 3:35 AM / 6 months ago

Japan's MUFG to book $890 million charge in just-ended year; sticks to FY estimate - Nikkei

FILE PHOTO: A man walks past a signboard of Mitsubishi UFJ Financial Group and MUFG Bank at its headquarters in Tokyo, Japan, April 3, 2018. REUTERS/Toru Hanai/File Photo

TOKYO (Reuters) - Japan’s MUFG will book a charge of about 100 billion yen ($893.34 million) in the year ended March after its credit card unit stopped development of a new system, but will keep its full-year profit outlook, the Nikkei reported on Monday.

Mitsubishi UFJ Financial Group Inc, Japan’s biggest bank by assets, continues to forecast net profit of 950 billion yen, the newspaper said. MUFG will report earnings in middle of May.

An MUFG spokesman declined to comment on the report when contacted by Reuters.

The subsidiary, Mitsubishi UFJ Nicos, had been developing a new system since 2016 to merge the management of three credit card brands, with 75 billion yen invested in the project out of a planned total of 150 billion yen, the Nikkei reported.

Separately, MUFG is considering scaling back its bond and equity sales and trading operations in London and New York, as part of a broader restructuring of its global markets division Reuters previously reported.

($1 = 111.9400 yen)

Reporting by Takashi Umekawa; Editing by David Dolan and Christopher Cushing

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