TOKYO (AP) -- Mitsubishi UFJ Financial, Japan's largest bank, said first-half net profit plunged 64%, battered by an increase in bad loans and losses on its share portfolio.

The company, one of three Japanese "megabanks," said Tuesday that net profit for the April-September fiscal half fell to 92.02 billion yen ($955.6 million) from 256.72 billion yen a year earlier.

Revenue fell 10% to 2.93 trillion yen ($30.4 billion), and operating profit declined 62.2% to 188.12 billion yen ($1.95 billion yen).

Japanese financial firms have suffered far smaller subprime mortgage losses than their Western counterparts, but they too are being squeezed by the global financial crisis and volatile equity markets.

The company, known as MUFG, also said it plans to issue 634.8 million new shares to shore up its balance sheet.

Compounding the increase in problem loans and losses on investments in securities, the bank went on a spending spree this autumn, expanding its global reach by snapping up stakes in financial companies beaten down by the credit crunch.

The lender invested $9 billion for a 21% stake in Morgan Stanley and this month completed the purchase of UnionBanCal, now a wholly owned subsidiary.

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