MUFG Mitsubishi UFJ Financial Group Inc

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of February 2015

Commission File No. 000-54189

 

 

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

 

7-1, Marunouchi 2-chome, Chiyoda-ku

Tokyo 100-8330, Japan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or

will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F      X                Form 40-F              

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

 

 

 

---

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 3, 2015

 

---

 

Consolidated Summary Report

<under Japanese GAAP>

for the nine months ended December 31, 2014

February 3, 2015

 

Company name:		Mitsubishi UFJ Financial Group, Inc.		Stock exchange listings:    Tokyo, Nagoya, New York
Code number:		8306		URL    http://www.mufg.jp/
Representative:		Nobuyuki Hirano, President & CEO
For inquiry:		Hiroshi Fukunaga, General Manager - Financial Planning Division / Financial Accounting Office
		TEL (03) 3240-3110

Quarterly securities report issuing date:		February 16, 2015		Dividend payment date:        -
Trading accounts:		Established
Supplemental information for quarterly financial statements:				Available
Quarterly investor meeting presentation:				None

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Data for the Nine Months ended December 31, 2014

(1) Results of Operations

 

		(% represents the change from the same period in the previous fiscal year)
		Ordinary Income								Ordinary Profits								Net Income
Nine months ended		million yen				%				million yen				%				million yen				%
December 31, 2014			4,260,328				11.7				1,484,363				17.8				926,971				18.0
December 31, 2013			3,812,880				10.9				1,259,669				34.5				785,422				47.5

 

(*)	Comprehensive income     December 31, 2014: 2,365,619 million yen, 93.4 %;     December 31, 2013: 1,223,293 million yen, 46.6 %

 

		Net Income per Common Stock				Diluted Net Income per Common Stock
Nine months ended		yen				yen
December 31, 2014			65.50				65.20
December 31, 2013			54.84				54.66

(2) Financial Conditions

 

		Total Assets				Total Net Assets				Net Assets Attributable to MUFG Shareholders to Total Assets (*)
As of		million yen				million yen				%
December 31, 2014			279,178,212				16,317,295				5.1
March 31, 2014			258,131,946				15,112,895				5.1

(Reference) Shareholders’ equity as of       December 31, 2014: 14,271,345 million yen;       March 31, 2014: 13,056,060 million yen

 

(*)	“Net assets attributable to MUFG shareholders to total assets” is computed under the formula shown below

(Total net assets - Subscription rights to shares - Minority interests) / Total assets

2. Dividends on Common Stock

 

		Dividends per Share
		1st quarter-end				2nd quarter-end				3rd quarter-end				Fiscal year-end				Total
Fiscal year		yen				yen				yen				yen				yen
ended March 31, 2014			—				7.00				—				9.00				16.00
ending March 31, 2015			—				9.00				—				——				——
ending March 31, 2015 (Forecast)			——				——				——				9.00				18.00

 

(*)	Revision of forecasts for dividends on the presentation date of this Consolidated Summary Report : None

3. Earnings Target for the Fiscal Year ending March 31, 2015 (Consolidated)

MUFG has the target of 950.0 billion yen of consolidated net income for the fiscal year ending March 31, 2015. (There is no change to our earnings target released on May 14, 2014.)

MUFG is engaged in financial service businesses such as banking business, trust banking business, securities business and credit card/loan businesses. Because there are various uncertainties caused by economic situation, market environments and other factors in these businesses, MUFG discloses a target of its consolidated net income instead of a forecast of its performance.

---

Notes

 

(1)	Changes in significant subsidiaries during the period: No

 

(2)	Adoption of any particular accounting methods for quarterly consolidated financial statements: No

 

(3)	Changes in accounting policies, changes in accounting estimates and restatements

(A)  Changes in accounting policies due to revision of accounting standards: Yes

(B)  Changes in accounting policies due to reasons other than (A): No

(C)  Changes in accounting estimates: No

(D)  Restatements: No

 

Note:

For more details, please see “(1) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements” in page 2 of Appendix.

 

(4)	Number of common stocks outstanding at the end of the period

 

(A)  Total stocks outstanding including treasury stocks:		December 31, 2014		14,168,733,820 shares
		March 31, 2014		14,164,026,420 shares
(B)  Treasury stocks:		December 31, 2014		151,195,030 shares
		March 31, 2014		2,554,673 shares
(C)  Average outstanding stocks:		Nine months ended December 31, 2014		14,152,425,073 shares
		Nine months ended December 31, 2013		14,159,051,590 shares

*Disclosure regarding the execution of the quarterly review process

This “Consolidated Summary Report” (Quarterly “Tanshin”) is outside the scope of the external auditor’s quarterly review procedure which is required by “Financial Instruments and Exchange Act”. Therefore, the quarterly review process has not been completed as of this disclosure in the “Consolidated Summary Report”.

*Notes for using forecasted information etc.

 

1.

This financial summary report contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overall management of the company and/or the group as a whole (the “forward-looking statements”). The forward-looking statements are made based upon, among other things, the company’s current estimations, perceptions and evaluations. In addition, in order for the company to adopt such estimations, forecasts, targets and plans regarding future events, certain assumptions have been made. Accordingly, due to various risks and uncertainties, the statements and assumptions are inherently not guarantees of future performance, may be considered differently from alternative perspectives and may result in material differences from the actual result. For the main factors that may affect the current forecasts, please see Consolidated Summary Report, Annual Securities Report, Disclosure Book, Annual Report, and other current disclosures that the company has announced.

 

2.

The financial information included in this financial summary report is prepared and presented in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”). Differences exist between Japanese GAAP and the accounting principles generally accepted in the United States (“U.S. GAAP”) in certain material respects. Such differences have resulted in the past, and are expected to continue to result for this period and future periods, in amounts for certain financial statement line items under U.S. GAAP to differ significantly from the amounts under Japanese GAAP. For example, differences in consolidation basis or accounting for business combinations, including but not limited to amortization and impairment of goodwill, could result in significant differences in our reported financial results between Japanese GAAP and U.S. GAAP. Readers should consult their own professional advisors for an understanding of the differences between Japanese GAAP and U.S. GAAP and how those differences might affect our reported financial results. To date, we have published U.S. GAAP financial results only on a semiannual and annual basis, and currently do not expect to publish U.S. GAAP financial results for the period reported in this financial summary report.

---

Mitsubishi UFJ Financial Group, Inc.

(Appendix)

Contents of Appendix

 

1. Information Regarding “Notes” in Consolidated Summary Report		2
(1) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements		2
2. Consolidated Financial Statements		4
(1) Consolidated Balance Sheets		4
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income		6
(3) Notes on Going-Concern Assumption		8
(4) Notes for Material Changes in Shareholders’ Equity		8
(5) Additional Information		8
Supplemental Information:
“Selected Financial Information under Japanese GAAP for the Nine Months Ended December 31, 2014”

 

1

---

Mitsubishi UFJ Financial Group, Inc.

 

1. Information Regarding “Notes” in Consolidated Summary Report

 

(1)	Changes in Accounting Policies, Changes in Accounting Estimates and Restatements

(Changes in Accounting Policies due to revision of Accounting Standards)

(Accounting Standards regarding Retirement Benefits)

The main clause of Article 35 of the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26 issued on May 17, 2012, hereinafter “Retirement Benefits Accounting Standard”) and the main clause of Article 67 of the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25 issued on May 17, 2012, hereinafter “Retirement Benefits Guidance”) were adopted from the first quarter ended June 30, 2014. Accordingly, the calculation methods of retirement benefit obligation and service cost were changed. Specifically, the method of determining the portion of projected benefit obligation attributed to periods was changed from the straight-line method to the benefit formula basis. In addition, the method of determining the discount rates applied in the calculation of projected benefit obligation was changed from the method using the average period up to estimated benefit payment date to the method using the single weighted average discount rate that reflects the estimated period and amount of benefit payment in each period.

The Retirement Benefits Accounting Standard and other standards were applied in accordance with the transitional treatment set forth in Article 37 of the Retirement Benefits Accounting Standard, and the effect of the change in calculation methods of retirement benefit obligation and service cost were added to or deducted from retained earnings as of April 1, 2014.

As a result, net defined benefit asset decreased by ¥58,569 million, net defined benefit liability decreased by ¥1,594 million, and retained earnings decreased by ¥37,224 million as of April 1, 2014. In addition, both ordinary profits and income before income taxes and others for the nine months ended December 31, 2014 increased by ¥1,232 million, respectively.

 

2

---

Mitsubishi UFJ Financial Group, Inc.

 

(Accounting Standards regarding Business Combinations)

As the “Revised Accounting Standard for Business Combinations (ASBJ Statement No. 21 issued on September 13, 2013, hereinafter “Business Combinations Accounting Standard”), “Revised Accounting Standard for Consolidated Financial Statements (ASBJ Statement No. 22 issued on September 13, 2013, hereinafter “Consolidation Accounting Standard”), “Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7 issued on September 13, 2013, hereinafter “Business Divestitures Accounting Standard”) and other standards became applicable from the fiscal year beginning on or after April 1, 2014, these standards were adopted from the first quarter ended June 30, 2014 (with the exception of Article 39 of the Consolidation Accounting Standard). Accordingly, the accounting method was changed to record the difference arising from changes in equity in subsidiaries which MUFG continues to control as capital surplus, and to record business acquisition costs as expenses for the fiscal year in which they occurred. In addition, regarding business combinations which became or will become effective on or after April 1, 2014, the accounting method was changed to retroactively reflect adjustments to the amount allocated to acquisition cost under provisional accounting treatment on the consolidated financial statements of the quarter in which the relevant business combinations became or will become effective.

The Business Combinations Accounting Standard and other standards were applied in accordance with the transitional treatment set forth in Article 58-2 (3) of the Business Combinations Accounting Standard, Article 44-5 (3) of the Consolidation Accounting Standard and Article 57-4 (3) of the Business Divestitures Accounting Standard. The cumulative effects arising from the retroactive application of these new accounting policies to all the previous fiscal years were added to or deducted from capital surplus and retained earnings as of April 1, 2014.

As a result, goodwill decreased by ¥266,925 million, capital surplus decreased by ¥346,454 million, and retained earnings increased by ¥95,134 million as of April 1, 2014. In addition, both ordinary profits and income before income taxes and others for the nine months ended December 31, 2014 increased by ¥13,099 million, respectively.

 

3

---

Mitsubishi UFJ Financial Group, Inc.

 

2. Consolidated Financial Statements

(1) Consolidated Balance Sheets

 

(in millions of yen)		As of March 31, 2014				As of December 31, 2014
Assets:
Cash and due from banks			23,969,883				33,535,999
Call loans and bills bought			826,851				644,792
Receivables under resale agreements			7,237,125				6,766,288
Receivables under securities borrowing transactions			4,181,660				4,439,634
Monetary claims bought			3,972,145				4,681,560
Trading assets			19,055,354				21,076,374
Money held in trust			583,692				724,285
Securities			74,515,573				73,638,301
Loans and bills discounted			101,938,907				107,848,676
Foreign exchanges			2,040,406				2,296,527
Other assets			8,809,286				11,557,401
Tangible fixed assets			1,540,031				1,593,456
Intangible fixed assets			1,483,352				1,247,537
Net defined benefit assets			460,836				450,607
Deferred tax assets			130,654				86,188
Customers’ liabilities for acceptances and guarantees			8,324,668				9,445,303
Allowance for credit losses			(938,483	)			(854,723	)
Total assets			258,131,946				279,178,212
Liabilities:
Deposits			144,760,294				148,616,087
Negotiable certificates of deposit			15,548,170				16,951,752
Call money and bills sold			3,465,414				4,745,448
Payables under repurchase agreements			21,626,590				21,244,521
Payables under securities lending transactions			5,534,643				8,559,930
Commercial papers			1,473,631				2,047,779
Trading liabilities			13,964,961				14,350,755
Borrowed money			10,828,601				13,164,312
Foreign exchanges			1,109,198				1,913,502
Short-term bonds payable			435,808				807,311
Bonds payable			7,165,577				7,833,208
Due to trust accounts			1,945,151				2,078,348
Other liabilities			5,965,086				9,712,352
Reserve for bonuses			78,987				41,934
Reserve for bonuses to directors			627				310
Net defined benefit liabilities			51,651				52,056
Reserve for retirement benefits to directors			1,201				1,011
Reserve for loyalty award credits			13,541				15,905
Reserve for contingent losses			247,351				179,381
Reserves under special laws			2,853				3,523
Deferred tax liabilities			320,014				942,325
Deferred tax liabilities for land revaluation			155,026				153,852
Acceptances and guarantees			8,324,668				9,445,303
Total liabilities			243,019,051				262,860,916

 

4

---

Mitsubishi UFJ Financial Group, Inc.

 

 

(in millions of yen)		As of March 31, 2014				As of December 31, 2014
Net assets:
Capital stock			2,140,488				2,141,485
Capital surplus			2,174,384				1,439,513
Retained earnings			7,033,125				7,752,490
Treasury stock			(1,699	)			(101,727	)
Total shareholders’ equity			11,346,299				11,231,761
Net unrealized gains (losses) on other securities			1,218,397				2,298,281
Net deferred gains (losses) on hedging instruments			8,295				118,764
Land revaluation excess			157,776				159,333
Foreign currency translation adjustments			407,229				537,178
Remeasurements of defined benefit plans			(81,937	)			(73,974	)
Total accumulated other comprehensive income			1,709,760				3,039,583
Subscription rights to shares			8,732				8,082
Minority interests			2,048,101				2,037,868
Total net assets			15,112,895				16,317,295
Total liabilities and net assets			258,131,946				279,178,212

 

5

---

Mitsubishi UFJ Financial Group, Inc.

 

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Consolidated Statements of Income

 

(in millions of yen)		For the nine months ended December 31, 2013				For the nine months ended December 31, 2014
Ordinary income			3,812,880				4,260,328
Interest income			1,748,169				2,047,164
Interest on loans and bills discounted			1,180,721				1,342,778
Interest and dividends on securities			425,687				458,696
Trust fees			78,464				80,331
Fees and commissions			981,726				1,080,952
Trading income			252,236				252,093
Other business income			385,244				354,015
Other ordinary income			367,038				445,770
Ordinary expenses			2,553,211				2,775,965
Interest expenses			354,323				458,565
Interest on deposits			143,779				214,760
Fees and commissions			138,772				146,756
Trading expenses			1,665				—
Other business expenses			176,951				96,253
General and administrative expenses			1,712,771				1,917,061
Other ordinary expenses			168,726				157,329
Ordinary profits			1,259,669				1,484,363
Extraordinary gains			8,464				12,514
Gains on disposition of fixed assets			8,464				2,871
Gains on change in equity			—				9,643
Extraordinary losses			36,032				86,095
Losses on disposition of fixed assets			5,476				5,496
Losses on impairment of fixed assets			3,173				5,997
Provision for reserve for contingent liabilities from financial instruments transactions			673				669
Settlement package			24,537				37,097
Losses on change in equity			—				33,291
Losses on sales of equity securities of subsidiaries			2,170				3,542
Income before income taxes and others			1,232,100				1,410,782
Income taxes—current			275,476				306,759
Income taxes—deferred			52,224				76,465
Total taxes			327,700				383,225
Income before minority interests			904,400				1,027,556
Minority interests			118,977				100,585
Net income			785,422				926,971

 

6

---

Mitsubishi UFJ Financial Group, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in millions of yen)		For the nine months ended December 31, 2013				For the nine months ended December 31, 2014
Income before minority interests			904,400				1,027,556
Other comprehensive income
Net unrealized gains (losses) on other securities			69,812				1,062,871
Net deferred gains (losses) on hedging instruments			(74,548	)			112,099
Land revaluation excess			(141	)			—
Foreign currency translation adjustments			234,210				163,705
Pension liability adjustments of subsidiaries preparing financial statements under US GAAP			(3,031	)			—
Remeasurements of defined benefit plans			—				7,480
Share of other comprehensive income of associates accounted for using equity method			92,590				(8,093	)
Total other comprehensive income			318,892				1,338,062
Comprehensive income			1,223,293				2,365,619
(Comprehensive income attributable to)
Comprehensive income attributable to owners of the parent			1,102,669				2,255,609
Comprehensive income attributable to minority interests			120,623				110,010

 

7

---

Mitsubishi UFJ Financial Group, Inc.

 

 

(3)	Notes on Going-Concern Assumption

Not applicable

 

(4)	Notes for Material Changes in Shareholders’ Equity

The Retirement Benefits Accounting Standard, the Business Combinations Accounting Standard, and other standards were adopted from the first quarter ended June 30, 2014. As for the effects of these changes, please refer to “1. Information Regarding “Notes” in Consolidated Summary Report (1) Changes in Accounting Policies, Changes in Accounting Estimates and Restatements” on page 2.

In addition, MUFG acquired and cancelled the entire first series of class 5 preferred stock on April 1, 2014. As a result, capital surplus decreased by ¥390,000 million.

 

(5)	Additional Information

(Adoption of Consolidated Taxation System)

MUFG and some of its domestic consolidated subsidiaries adopted consolidated taxation system from the first quarter ended June 30, 2014.

 

8

---

 

 

Selected Financial Information

under Japanese GAAP

For the Nine Months Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

Mitsubishi UFJ Financial Group, Inc.

---

Mitsubishi UFJ Financial Group, Inc.

[Contents]

 

1. Financial Results		[ MUFG Consolidated ]*1[ BTMU and MUTB Combined ]*2*3*4			——				1
		[ BTMU Non-consolidated ][ MUTB Non-consolidated ]
2. Non Performing Loans Based on the Financial Reconstruction Law		[ BTMU and MUTB Combined including Trust Account ]			——				5
		[ BTMU Non-consolidated ][ MUTB Non-consolidated ]
		[ MUTB Non-consolidated : Trust Account ]
3. Securities		[ MUFG Consolidated ]			——				6
		[ BTMU Non-consolidated ][ MUTB Non-consolidated ]
4. ROE		[ MUFG Consolidated ]			——				9
5. Average Interest Rate Spread		[ BTMU and MUTB Combined ]			——				10
		[ BTMU Non-consolidated ][ MUTB Non-consolidated ]
6. Loans and Deposits		[ BTMU and MUTB Combined ]			——				11
		[ BTMU Non-consolidated ][ MUTB Non-consolidated ]
7. Statements of Trust Assets and Liabilities		[ MUTB Non-consolidated ]			——				12
(Reference)
Exposure to “Securitized Products and Related Investments”					——				13

 

(*1)	“MUFG” means Mitsubishi UFJ Financial Group, Inc.

(*2)	“BTMU” means The Bank of Tokyo-Mitsubishi UFJ, Ltd.

(*3)	“MUTB” means Mitsubishi UFJ Trust and Banking Corporation.

(*4)	“BTMU and MUTB Combined” means simple sum of “BTMU” and “MUTB” without consolidation processes.

---

Mitsubishi UFJ Financial Group, Inc.

1. Financial Results

MUFG Consolidated

 

		(in billions of yen)
		For the nine months ended								Increase (Decrease) (A) - (B)
		December 31, 2014 (A)				December 31, 2013 (B)
Gross profits			3,113.0				2,774.2				338.8
Gross profits before credit costs for trust accounts			3,112.6				2,774.6				337.9
Net interest income			1,588.7				1,393.9				194.7
Trust fees			80.3				78.4				1.8
Credit costs for trust accounts (1)			0.4				(0.4	)			0.9
Net fees and commissions			934.1				842.9				91.2
Net trading profits			252.0				250.5				1.5
Net other business profits			257.7				208.2				49.4
Net gains (losses) on debt securities			129.8				124.7				5.1
General and administrative expenses			1,894.2				1,686.0				208.2
Amortization of goodwill			12.2				26.0				(13.8	)
Net business profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill			1,230.6				1,114.7				115.8
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses			1,218.3				1,088.6				129.7
Provision for general allowance for credit losses (2)			—				—				—
Net business profits*			1,218.8				1,088.2				130.6
Net non-recurring gains (losses)			265.5				171.4				94.0
Credit costs (3)			(101.8	)			(100.1	)			(1.6	)
Losses on loan write-offs			(87.1	)			(92.5	)			5.3
Provision for specific allowance for credit losses			—				—				—
Other credit costs			(14.7	)			(7.6	)			(7.0	)
Reversal of allowance for credit losses (4)			84.4				91.7				(7.2	)
Reversal of reserve for contingent losses included in credit costs (5)			2.1				2.6				(0.4	)
Gains on loans written-off (6)			45.6				47.0				(1.4	)
Net gains (losses) on equity securities			78.9				62.7				16.2
Gains on sales of equity securities			93.2				82.7				10.4
Losses on sales of equity securities			(10.6	)			(9.6	)			(0.9	)
Losses on write-down of equity securities			(3.6	)			(10.3	)			6.7
Profits (losses) from investments in affiliates			161.5				86.5				75.0
Other non-recurring gains (losses)			(5.4	)			(19.0	)			13.5
Ordinary profits			1,484.3				1,259.6				224.6
Net extraordinary gains (losses)			(73.5	)			(27.5	)			(46.0	)
Net gains (losses) on change in equity			(23.6	)			—				(23.6	)
Settlement package			(37.0	)			(24.5	)			(12.5	)
Income before income taxes and others			1,410.7				1,232.1				178.6
Income taxes-current			306.7				275.4				31.2
Income taxes-deferred			76.4				52.2				24.2
Total taxes			383.2				327.7				55.5
Income before minority interests			1,027.5				904.4				123.1
Minority interests			100.5				118.9				(18.3	)
Net income			926.9				785.4				141.5
Note: *   Net business profits = Banking subsidiaries’ net business profits + Other consolidated entities’ gross profits - Other consolidated entities’ general and administrative expenses - Other consolidated entities’ provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions
(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)			30.9				40.7				(9.8	)

 

1

---

Mitsubishi UFJ Financial Group, Inc.

BTMU and MUTB Combined

 

		(in billions of yen)
		For the nine months ended								Increase (Decrease) (A) - (B)
		December 31, 2014 (A)				December 31, 2013 (B)
Gross profits			1,871.7				1,699.1				172.5
Gross profits before credit costs for trust accounts			1,871.2				1,699.6				171.6
Net interest income			1,064.5				981.3				83.2
Trust fees			62.0				57.6				4.3
Credit costs for trust accounts (1)			0.4				(0.4	)			0.9
Net fees and commissions			434.4				407.2				27.2
Net trading profits			112.1				65.4				46.6
Net other business profits			198.4				187.5				10.9
Net gains (losses) on debt securities			127.6				114.0				13.5
General and administrative expenses			1,024.4				962.0				62.3
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses			846.7				737.5				109.2
Provision for general allowance for credit losses (2)			—				—				—
Net business profits			847.2				737.0				110.1
Net non-recurring gains (losses)			135.1				86.6				48.4
Credit costs (3)			(36.1	)			(47.6	)			11.4
Losses on loan write-offs			(20.6	)			(40.2	)			19.5
Provision for specific allowance for credit losses			—				—				—
Other credit costs			(15.5	)			(7.4	)			(8.1	)
Reversal of allowance for credit losses (4)			109.3				83.0				26.2
Reversal of reserve for contingent losses included in credit costs (5)			5.7				4.9				0.8
Gains on loans written-off (6)			13.4				25.9				(12.4	)
Net gains (losses) on equity securities			52.3				37.4				14.8
Gains on sales of equity securities			67.3				70.9				(3.5	)
Losses on sales of equity securities			(9.2	)			(7.5	)			(1.7	)
Losses on write-down of equity securities			(5.7	)			(25.9	)			20.2
Other non-recurring gains (losses)			(9.5	)			(17.0	)			7.5
Ordinary profits			982.4				823.7				158.6
Net extraordinary gains (losses)			(44.8	)			(22.3	)			(22.4	)
Net gains (losses) on disposition of fixed assets			(2.5	)			0.2				(2.8	)
Losses on impairment of fixed assets			(5.2	)			(2.1	)			(3.0	)
Settlement package			(37.0	)			(24.5	)			(12.5	)
Income before income taxes			937.5				801.3				136.1
Income taxes-current			258.1				229.9				28.1
Income taxes-deferred			31.3				51.7				(20.4	)
Total taxes			289.4				281.7				7.7
Net income			648.0				519.6				128.4
(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)			92.8				65.8				26.9

 

2

---

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

 

		(in billions of yen)
		For the nine months ended								Increase (Decrease) (A) - (B)
		December 31, 2014 (A)				December 31, 2013 (B)
Gross profits			1,601.2				1,444.7				156.4
Net interest income			932.7				862.4				70.2
Net fees and commissions			368.4				341.4				27.0
Net trading profits			85.4				64.7				20.6
Net other business profits			214.6				176.0				38.5
Net gains (losses) on debt securities			131.7				108.3				23.3
General and administrative expenses			886.2				827.4				58.8
Amortization of goodwill			0.2				0.2				0.0
Net business profits before provision for general allowance for credit losses and amortization of goodwill			715.2				617.5				97.7
Net business profits before provision for general allowance for credit losses			715.0				617.3				97.6
Provision for general allowance for credit losses (1)			—				—				—
Net business profits			715.0				617.3				97.6
Net non-recurring gains (losses)			104.4				68.9				35.4
Credit costs (2)			(35.8	)			(46.6	)			10.8
Losses on loan write-offs			(20.6	)			(39.2	)			18.5
Provision for specific allowance for credit losses			—				—				—
Other credit costs			(15.1	)			(7.4	)			(7.7	)
Reversal of allowance for credit losses (3)			96.1				64.8				31.3
Reversal of reserve for contingent losses included in credit costs (4)			5.1				3.7				1.3
Gains on loans written-off (5)			12.8				25.5				(12.6	)
Net gains (losses) on equity securities			41.7				34.6				7.0
Gains on sales of equity securities			54.4				64.5				(10.0	)
Losses on sales of equity securities			(7.3	)			(4.3	)			(3.0	)
Losses on write-down of equity securities			(5.3	)			(25.5	)			20.1
Other non-recurring gains (losses)			(15.6	)			(13.2	)			(2.4	)
Ordinary profits			819.5				686.3				133.1
Net extraordinary gains (losses)			(38.6	)			(21.5	)			(17.0	)
Net gains (losses) on disposition of fixed assets			(0.9	)			0.6				(1.5	)
Losses on impairment of fixed assets			(0.6	)			(1.7	)			1.1
Settlement package			(37.0	)			(24.5	)			(12.5	)
Income before income taxes			780.8				664.7				116.1
Income taxes-current			214.3				203.4				10.9
Income taxes-deferred			27.0				37.2				(10.1	)
Total taxes			241.4				240.6				0.7
Net income			539.4				424.0				115.3
(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)			78.3				47.4				30.8

 

3

---

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

 

		(in billions of yen)
		For the nine months ended								Increase (Decrease) (A) - (B)
		December 31, 2014 (A)				December 31, 2013 (B)
Gross profits			270.4				254.3				16.0
Gross profits before credit costs for trust accounts			269.9				254.8				15.1
Trust fees			62.0				57.6				4.3
Credit costs for trust accounts (1)			0.4				(0.4	)			0.9
Net interest income			131.8				118.8				13.0
Net fees and commissions			66.0				65.8				0.2
Net trading profits			26.6				0.6				26.0
Net other business profits			(16.1	)			11.4				(27.5	)
Net gains (losses) on debt securities			(4.0	)			5.6				(9.7	)
General and administrative expenses			138.2				134.6				3.5
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses			131.7				120.1				11.5
Provision for general allowance for credit losses (2)			—				—				—
Net business profits			132.2				119.7				12.4
Net non-recurring gains (losses)			30.6				17.7				12.9
Credit costs (3)			(0.3	)			(0.9	)			0.6
Losses on loan write-offs			(0.0	)			(0.9	)			0.9
Provision for specific allowance for credit losses			—				—				—
Other credit costs			(0.3	)			0.0				(0.3	)
Reversal of allowance for credit losses (4)			13.1				18.2				(5.0	)
Reversal of reserve for contingent losses included in credit costs (5)			0.5				1.1				(0.5	)
Gains on loans written-off (6)			0.5				0.3				0.2
Net gains (losses) on equity securities			10.6				2.8				7.8
Gains on sales of equity securities			12.9				6.4				6.5
Losses on sales of equity securities			(1.8	)			(3.1	)			1.2
Losses on write-down of equity securities			(0.4	)			(0.4	)			0.0
Other non-recurring gains (losses)			6.0				(3.8	)			9.9
Ordinary profits			162.9				137.4				25.4
Net extraordinary gains (losses)			(6.2	)			(0.7	)			(5.4	)
Net gains (losses) on disposition of fixed assets			(1.6	)			(0.4	)			(1.2	)
Losses on impairment of fixed assets			(4.5	)			(0.3	)			(4.2	)
Income before income taxes			156.6				136.6				20.0
Income taxes-current			43.7				26.5				17.1
Income taxes-deferred			4.3				14.5				(10.2	)
Total taxes			48.0				41.0				6.9
Net income			108.6				95.5				13.0
(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)			14.4				18.3				(3.8	)

 

4

---

Mitsubishi UFJ Financial Group, Inc.

2. Non Performing Loans Based on the Financial Reconstruction Law

BTMU and MUTB Combined including Trust Account

 

		(in billions of yen)
		As of December 31, 2014				As of March 31, 2014
Bankrupt or De facto Bankrupt			85.4				94.0
Doubtful			630.8				848.3
Special Attention			456.6				475.7
Non Performing Loans			1,173.0				1,418.1
Total loans			106,006.0				100,476.7
Non Performing Loans / Total loans			1.10	%			1.41	%
BTMU Non-consolidated
		(in billions of yen)
		As of December 31, 2014				As of March 31, 2014
Bankrupt or De facto Bankrupt			83.5				91.5
Doubtful			611.8				822.4
Special Attention			442.7				458.2
Non Performing Loans			1,138.1				1,372.2
Total loans			93,131.4				88,278.5
Non Performing Loans / Total loans			1.22	%			1.55	%
MUTB Non-consolidated
		(in billions of yen)
		As of December 31, 2014				As of March 31, 2014
Bankrupt or De facto Bankrupt			1.8				2.4
Doubtful			18.9				25.1
Special Attention			13.1				16.6
Non Performing Loans			33.9				44.2
Total loans			12,846.6				12,166.3
Non Performing Loans / Total loans			0.26	%			0.36	%
MUTB Non-consolidated: Trust Account
		(in billions of yen)
		As of December 31, 2014				As of March 31, 2014
Bankrupt or De facto Bankrupt			0.0				0.0
Doubtful			0.1				0.7
Special Attention			0.7				0.8
Non Performing Loans			0.9				1.6
Total loans			27.9				31.7
Non Performing Loans / Total loans			3.30	%			5.05	%

 

5

---

Mitsubishi UFJ Financial Group, Inc.

3. Securities

MUFG Consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

 

		(in billions of yen)
		As of December 31, 2014								As of March 31, 2014
		Amount on consolidated balance sheet				Differences				Amount on consolidated balance sheet				Differences
Debt securities being held to maturity			3,982.8				53.4				2,778.6				27.0
		(in billions of yen)
		As of December 31, 2014								As of March 31, 2014
		Amount on consolidated balance sheet				Differences				Amount on consolidated balance sheet				Differences
Other securities			69,690.1				3,487.7				71,722.0				1,869.9
Domestic equity securities			5,244.1				2,441.3				4,384.1				1,559.6
Domestic bonds			39,792.4				431.6				43,123.6				222.8
Other			24,653.6				614.7				24,214.1				87.3
Foreign equity securities			213.4				78.0				217.5				81.6
Foreign bonds			20,931.4				375.5				20,599.8				(53.0	)
Other			3,508.7				161.1				3,396.7				58.7

 

6

---

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

 

		(in billions of yen)
		As of December 31, 2014								As of March 31, 2014
		Amount on balance sheet				Differences				Amount on balance sheet				Differences
Debt securities being held to maturity			2,895.6				48.6				1,750.7				33.5
Stocks of subsidiaries and affiliates			678.5				218.6				676.7				(6.2	)
		(in billions of yen)
		As of December 31, 2014								As of March 31, 2014
		Amount on balance sheet				Differences				Amount on balance sheet				Differences
Other securities			50,060.7				2,598.2				54,117.0				1,367.1
Domestic equity securities			4,294.8				1,903.8				3,548.4				1,144.0
Domestic bonds			33,083.1				356.1				36,175.4				171.2
Other			12,682.6				338.1				14,393.1				51.7
Foreign equity securities			195.3				70.2				197.4				77.2
Foreign bonds			10,087.2				206.4				11,594.0				(50.0	)
Other			2,400.0				61.4				2,601.6				24.6

 

7

---

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

The tables include beneficiary rights to the trust in “Monetary claims bought” in addition to “Securities”.

 

		(in billions of yen)
		As of December 31, 2014								As of March 31, 2014
		Amount on balance sheet				Differences				Amount on balance sheet				Differences
Debt securities being held to maturity			154.9				0.2				220.0				0.8
Stocks of subsidiaries and affiliates			57.7				131.6				57.7				100.1
		(in billions of yen)
		As of December 31, 2014								As of March 31, 2014
		Amount on balance sheet				Differences				Amount on balance sheet				Differences
Other securities			16,453.0				819.6				14,521.2				452.3
Domestic equity securities			987.9				460.0				856.8				322.4
Domestic bonds			6,579.7				74.4				6,717.7				42.6
Other			8,885.4				285.1				6,946.6				87.2
Foreign equity securities			0.0				0.0				0.3				0.1
Foreign bonds			8,101.7				189.3				6,469.3				52.6
Other			783.6				95.7				476.9				34.5

 

8

---

Mitsubishi UFJ Financial Group, Inc.

4. ROE

MUFG Consolidated

 

		(%)
		For the nine months ended December 31, 2014				For the nine months ended December 31, 2013
ROE			10.68				9.85

 

Note:
ROE is computed as follows:
(Net income × 4/3) - Equivalent of annual dividends on nonconvertible preferred stocks					×100
{(Total shareholders’ equity at the beginning of the period - Number of nonconvertible preferred stocks at the beginning of the period × Issue price + Foreign currency translation adjustments at the beginning of the period) + (Total shareholders’ equity at the end of the period - Number of nonconvertible preferred stocks at the end of the period × Issue price + Foreign currency translation adjustments at the end of the period)} / 2

 

9

---

Mitsubishi UFJ Financial Group, Inc.

5. Average Interest Rate Spread

BTMU and MUTB Combined

(Domestic business segment)

 

		(percentage per annum)
		For the nine months ended December 31, 2014				For the nine months ended December 31, 2013
Average interest rate on loans and bills discounted			0.99				1.08
Average interest rate on deposits and NCD			0.04				0.05
Interest rate spread			0.94				1.02
(After excluding loans to the Japanese government and governmental organizations)		(percentage per annum)
Average interest rate on loans and bills discounted			1.13				1.23
Interest rate spread			1.08				1.17

BTMU Non-consolidated

(Domestic business segment)

 

		(percentage per annum)
		For the nine months ended December 31, 2014				For the nine months ended December 31, 2013
Average interest rate on loans and bills discounted			1.03				1.12
Average interest rate on deposits and NCD			0.03				0.04
Interest rate spread			1.00				1.08
(After excluding loans to the Japanese government and governmental organizations)		(percentage per annum)
Average interest rate on loans and bills discounted			1.21				1.31
Interest rate spread			1.17				1.26

MUTB Non-consolidated

(Domestic business segment)

 

		(percentage per annum)
		For the nine months ended December 31, 2014				For the nine months ended December 31, 2013
Average interest rate on loans and bills discounted			0.76				0.85
Average interest rate on deposits and NCD			0.13				0.16
Interest rate spread			0.62				0.69
(After excluding loans to the Japanese government and governmental organizations)		(percentage per annum)
Average interest rate on loans and bills discounted			0.76				0.85
Interest rate spread			0.62				0.69

 

10

---

Mitsubishi UFJ Financial Group, Inc.

6. Loans and Deposits

BTMU and MUTB Combined

 

		(in billions of yen)
		As of December 31, 2014				As of March 31, 2014
Deposits (ending balance)			134,684.3				132,121.6
Deposits (average balance)			131,856.3				126,269.6
Loans (ending balance)			95,716.9				91,404.1
Loans (average balance)			95,259.5				88,989.6
		(in billions of yen)
		As of December 31, 2014				As of March 31, 2014
Domestic deposits (ending balance)*			115,704.5				114,591.8
Individuals			70,918.1				68,867.2

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

BTMU Non-consolidated

 

		(in billions of yen)
		As of December 31, 2014				As of March 31, 2014
Deposits (ending balance)			122,101.6				119,636.5
Deposits (average balance)			119,246.6				113,892.7
Loans (ending balance)			83,203.0				79,495.0
Loans (average balance)			83,210.9				77,602.6
		(in billions of yen)
		As of December 31, 2014				As of March 31, 2014
Domestic deposits (ending balance)*			104,324.8				103,251.2
Individuals			62,630.5				60,568.4

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

MUTB Non-consolidated

 

		(in billions of yen)
		As of December 31, 2014				As of March 31, 2014
Deposits (ending balance)			12,582.7				12,485.1
Deposits (average balance)			12,609.6				12,376.8
Loans (ending balance)			12,513.8				11,909.1
Loans (average balance)			12,048.5				11,386.9
		(in billions of yen)
		As of December 31, 2014				As of March 31, 2014
Domestic deposits (ending balance)*			11,379.6				11,340.6
Individuals			8,287.5				8,298.8

 

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

 

11

---

Mitsubishi UFJ Financial Group, Inc.

7. Statements of Trust Assets and Liabilities

MUTB Non-consolidated

Including trust assets under service-shared co-trusteeship

 

(in billions of yen)		As of March 31, 2014				As of December 31, 2014
Assets:
Loans and bills discounted			99.6				108.9
Securities			55,572.6				55,827.5
Beneficiary rights to the trust			43,107.5				46,222.6
Securities held in custody accounts			2,979.9				3,384.2
Monetary claims			11,307.5				10,798.6
Tangible fixed assets			9,804.3				10,621.1
Intangible fixed assets			206.9				188.5
Other claims			5,202.5				5,012.6
Call loans			1,988.3				2,416.1
Due from banking account			1,945.1				2,078.3
Cash and due from banks			2,402.5				3,039.8
Total			134,617.1				139,698.7
Liabilities:
Money trusts			21,176.2				20,451.6
Pension trusts			13,945.1				15,088.7
Property formation benefit trusts			9.8				8.3
Investment trusts			42,523.2				45,678.8
Money entrusted other than money trusts			2,770.5				3,422.6
Securities trusts			5,070.0				5,074.5
Monetary claim trusts			11,298.1				10,548.5
Equipment trusts			34.9				40.4
Land and fixtures trusts			83.0				83.1
Composite trusts			37,705.9				39,301.8
Total			134,617.1				139,698.7

 

Note:		The table shown above includes master trust assets under the service-shared co-trusteeship between MUTB and The Master Trust Bank of Japan, Ltd.

 

12

---

Mitsubishi UFJ Financial Group, Inc.

(Reference)

Exposure to “Securitized Products and Related Investments”

Our exposure to securitized products and related investments as of the end of December 2014 is outlined below. (Figures are on a managerial basis and rounded off to billion yen or to the second decimal point of trillion yen)

[Balance, net unrealized gains (losses), realized gains (losses)]

 

•

The balance as of the end of December 2014 was ¥3.39 trillion in total, an increase of ¥0.46 trillion from the balance as of the end of March 2014, mainly due to increases in CLOs and CMBS.

 

•

Net unrealized losses were ¥12 billion, improved by ¥17 billion compared to the end of March 2014.

 

•

P/L impact for the quarter ended December 31, 2014 was a gain of approximately ¥2.0 billion.

 

				(¥bn)
																				of which securities being held to maturity2
				Balance1				Change from end of March 2014				Net unrealized gains (losses)				Change from end of March 2014				Balance				Net unrealized gains (losses)
1		RMBS			23				(1	)			4				1				0				0
2		Sub-prime RMBS			0				0				0				0				0				0
3		CMBS			423				40				(4	)			9				219				(4	)
4		CLOs			2,889				418				(14	)			6				1,991				(6	)
5		Other securitized products (card, etc.)			51				(2	)			2				1				21				0
6		CDOs			0				0				0				0				0				0
7		Sub-prime ABS CDOs			0				0				0				0				0				0
8		SIV			0				0				0				0				0				0
9		Total			3,385				455				(12	)			17				2,231				(11	)

 

1.	Balance is the amount after impairment and before deducting net unrealized gains (losses).

The above table does not include mortgage-backed securities arranged and guaranteed by U.S. government sponsored enterprises, etc., Japanese RMBS such as Japanese Housing Finance Agency securities, and products held by funds such as investment trusts. These are also applicable to the tables in this document.

2.

Following the publication of “Tentative Solution on Reclassification of Debt Securities” (Practical Issue Task Force No.26, The Accounting Standards Board of Japan, December 5, 2008), some of our securitized products were reclassified into “securities being held to maturity” from “securities available for sale” at and after the end of January 2009. The balance and net unrealized gains (losses) of the securities being held to maturity in the above table are based on book value before reclassification.

[Distribution by rating]

 

•

AAA-rated products accounted for 86% of our investments in securitized products as of the end of December 2014, an increase of 6 percentage points compared with the end of March 2014, mainly due to an increase in highly rated CLOs.

 

•

AAA and AA-rated products accounted for 97% of our investments in securitized products.

 

				(¥bn)
				AAA				AA				A				BBB				BB or lower				Unrated				Total
10		RMBS			2				3				1				12				6				0				23
11		Sub-prime RMBS			0				0				0				0				0				0				0
12		CMBS			173				250				0				0				0				0				423
13		CLOs			2,723				110				54				2				0				0				2,889
14		Other securitized products (card, etc.)			22				24				2				0				0				1				51
15		CDOs			0				0				0				0				0				0				0
16		Sub-prime ABS CDOs			0				0				0				0				0				0				0
17		SIV			0				0				0				0				0				0				0
18		Total			2,920				387				57				14				6				1				3,385
19		Percentage of total			86	%			11	%			2	%			0	%			0	%			0	%			100	%
20		Percentage of total (End of March 2014)			80	%			18	%			1	%			1	%			0	%			0	%			100	%

 

13

---

Mitsubishi UFJ Financial Group, Inc.

[Credit exposure related to leveraged loan (LBO loan)]

 

•

We are not engaged in origination or distribution of securitized products relating to LBO loans, and therefore, there is no balance of LBO loans for securitization.

 

•

The following table shows the balances of LBO loans as of the end of December 2014.

 

				(¥bn)
				Americas				Europe				Asia				Japan				Total				Change from end of March 2014
21		LBO Loan3 (Balance on a commitment basis)			22				128				0				284				435				99
22		Balance on a booking basis			9				104				0				258				372				95

³ Includes balance after refinancing. (Figures are rounded off.)

[Special Purpose Entities (SPEs)]

 

•

We are engaged in sponsoring ABCP issuance for securitizing our clients’ assets.

 

•

The balance of assets purchased by ABCP conduits (special purpose companies for issuing ABCP) as of the end of December 2014 was ¥4.62 trillion (including ¥2.25 trillion in overseas).

 

•

The purchased assets are mainly receivables and they do not include residential mortgages.

End

 

<Terminology>
RMBS		:		Asset-backed securities collateralized by residential mortgages
CMBS		:		Asset-backed securities collateralized by commercial mortgages
CLOs		:		Collateralized loan obligations backed by whole commercial loans, revolving credit facilities, or letters of credit
CDOs		:		Structured credit securities backed by a pool of securities, loans, or credit default swaps
ABS CDOs		:		Collateralized debt obligations backed by asset backed securities
SIVs		:		Investment companies established mainly for gaining profit margin by raising funds through subordinated notes and short-term CPs, etc. and investing in relatively long-term securitized products and bonds, etc.
LBO Loans		:		Loans collateralized by assets and/or future cash flows of an acquired company
ABCP		:		Commercial papers issued by a Special Purposed Company (SPC) collateralized by receivables

 

 

 

 

14