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Mitsubishi UFJ (MUFG) Announces 80M Share Repurchase Plan

Mitsubishi UFJ Financial Group, Inc. MUFG has announced a share repurchase program to buy back up to 80 million shares of its common stock, representing 0.68% of the total shares outstanding, excluding treasury stock. The company has been authorized to repurchase shares amounting to ¥100 billion from May 16 to Jun 30, 2024.

MUFG seeks to continuously improve shareholders’ returns and increase capital efficiency. Since fiscal 2019, it has completed several share repurchase programs. While no shares were repurchased in fiscal 2020, in 2019, 2021, 2022 and 2023, the company repurchased shares worth ¥50 billion, ¥150 billion, ¥450 billion and ¥400 billion.

For fiscal 2024, MUFG's dividend per common stock forecast increases to ¥50 from ¥41 paid out in fiscal 2023.

Notably, the company’s dividends witnessed a four-year (ended March 2023) compound annual growth rate (CAGR) of 9.8%. Thus, by leveraging the capital surplus, MUFG aims to attract investors by a progressive increase in dividends and executing flexible share repurchases.Also, such encouraging capital distribution plans are stoking investors’ confidence in the stock.

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Given a sound balance sheet position, Mitsubishi UFJ’s capital distribution activities seem sustainable.

Beside this, over the past several years, MUFG has been expanding inorganically and continues to pursue growth opportunities globally. The company recently completed the previously announced buyout of Link Administration Holdings Limited by acquiring all issued shares of the latter. The new name of the company will be MUFG Pension & Market Services Holdings Limited.

Link Administration Holdings is the leading Australian pension administration firm that serves around 40% (10 million accounts) of Australian private pension members. The company also offers stock administration services in Australia, the U.K. and India.

Acquiring global pension and stock administration capabilities allows MUFG to further enhance its global business expansion via access to Australian funds and corporate clients worldwide. This strengthens its global presence, fosters growth opportunities and expands its business scale.

Over the past six months, MUFG shares have rallied 23% on the NYSE compared with the industry’s 16.1% growth.

 

Zacks Investment Research
Zacks Investment Research


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Currently, MUFG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Share Buyback Plans of Other Banks

UBS Group AG UBS announced a share repurchase program. Under the plan, starting from Apr 3, the company is authorized to buy back up to $2 billion worth of common stock. The program will expire on Apr 2, 2026.

This year, UBS is expected to buy back up to $1 billion worth of shares under the new plan. This will start following the completion of the merger between UBS AG and Credit Suisse AG, which is expected to take place in the second quarter of 2024.

TrustCo Bank Corp NY TRST announced a stock buyback plan. The company’s board of directors approved a program under which TRST may repurchase up to 0.2 million shares or 1% of its outstanding current stock.

The company’s last buyback plan expired on Mar 17, 2024. On Mar 17, 2023, TRST’s board of directors approved a share repurchase program of up to 0.2 million shares.

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