Mitsubishi Tokyo Financial Group and UFJ that plan to merge by October 2005 to form the world’s largest bank report dismal results for the first half-year of 2004.

 

MTFG’s profit dropped 43.1% from last year to 171.68 billion yen.

 

UFJ, the holding company of UFJ Bank and UFJ Trust Bank, showed a widened loss of 674.28 billion yen in the six months ended Sept. 30 as opposed to 179.85 billion yen profit a year ago.

 

MTFG’s superior financial results cause fears from UFJ shareholders that their bank may be in a weaker position in the negotiations over the merger ratio. UFJ institutional investors criticize the bank’s management for agreeing to a merger with MTFG, which has not yet provided a merger ratio, after spurning the offer from SMFG.