MUFG Unit to Book $270 Million Loss on Archegos Next Quarter

(Bloomberg) -- Mitsubishi UFJ Financial Group Inc.’s securities arm closed positions relating to a U.S. client at the center of a massive unwinding of leveraged bets that roiled a number of global banks.

The unit will book a $270 million loss from the event in next quarter’s results, it said in a statement Wednesday, slightly smaller than the $300 million estimate it gave a day earlier. The loss is linked to Bill Hwang’s Archegos Capital Management, Bloomberg has reported.

Meanwhile, MUFG said its profit for the fiscal year that ends today probably rose about 42% from a year earlier to 750 billion yen ($6.8 billion). Japan’s biggest bank had earlier forecast annual net income of 600 billion yen.

The higher estimate reflects net gains on equities along with windfalls from its investment in Morgan Stanley, it said.

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