Mitsubishi UFJ Financial Group Inc. ((MUFG), a Japanese bank holding and financial services company has recognized impairment losses on shares of Bank Danamon Indonesia (BDMN), an Indonesian commercial bank and consolidated subsidiary of MUFG Bank. Shares of the local lender have tumbled since and this month hit their lowest in nearly three years, at Rp3,640.
The unit of MUFG said it would book a one-off charge of about JPY207.4 billion (US$1.91 billion) for the quarter ended Dec. 31 due to a drop in the share price of an Indonesian subsidiary. The bank hold 94.1 percent of Bank Danamon shares.
MUFG does not disclose the price level where it would be required to book an extraordinary charge. It has built up its stake through a series of acquisitions since 2017. In April it more than doubled its holding to 94% from 40%, paying Rp9,590 a share, according to a filing.
