Mitsubishi UFJ Financial Group Inc. shares rose after the Nikkei newspaper reported that Japan’s biggest bank plans to buy back 100 billion yen ($837 million) of stock.
The shares closed 3.3 percent higher at 871.9 yen in Tokyo trading. The benchmark Topix index gained 1 percent. Mitsubishi UFJ is scheduled to report earnings later Friday. Net income for the year ended March probably exceeded 1 trillion yen for the first time, the newspaper reported, without citing anyone.
Kazunobu Takahara, a spokesman for Mitsubishi UFJ in Tokyo, declined to comment on the report.
The buyback would be the second for Mitsubishi UFJ in the past six months, setting the Tokyo-based lender apart from Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. Japan’s biggest banks face the dilemma of either sharing more earnings with investors or putting the money into expanding abroad to counter shrinking loan profitability at home.