TOKYO, Aug 1 (Reuters) - Mitsubishi UFJ Financial Group ( MUFG )

booked a 0.4% drop in first-quarter profit due

to a change in a reporting period at an overseas subsidiary and

affiliate, but profits across its customer segments grew.

Japan's largest lender by assets reported group net profit

of 556 billion yen ($3.7 billion) for April-June, compared with

558 billion yen in the same period a year earlier.

Adjusting for changes in the accounting period at MUFG

affiliate Morgan Stanley ( MS ), in which it holds a 23% stake,

and Thai subsidiary Bank of Ayudhya, profits rose by 55 billion

yen, or 11.7%, compared to the same period a year prior.

The falling value of the yen over the period was a

fillip to MUFG's exporting clients, whose increased demand for

funding and consulting services boosted fees.

The weak yen boosted net profit by around 25 billion yen

as compared to the same period a year ago.

But the impact of the end of negative interest rates

from March was more muted. The bank calculated an increase in

net operating profit of around 15 billion yen for the quarter

due to the rise.

Its domestic loan and deposit rate margin, a measure of

profitability at its core lending business, barely moved

compared to the January-March quarter.

MUFG is the second of Japan's three megabanks to report

quarterly results, following Mizuho Financial Group ( MFG ) on

Wednesday, with Sumitomo Mitsui Financial Group ( SMFG ) to come

on Friday.

($1 = 150.1500 yen)