Mitsubishi UFJ ( MTU), Japan's biggest lender, slashed its full-year profit forecast 66% to 220 billion yen from a forecast made earlier in the year of 640 billion yen.

In a statement Friday, the Tokyo-based bank said the earnings revision stemmed from investment losses and an increase in credit costs.

Mitsubishi UFJ recently invested $9 billion for a 21% stake in Morgan Stanley ( MS). The bank also said earlier this week it plans to raise $10.6 billion by issuing new shares over the next year.