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 May 2016

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):

 

 

 


THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-209455) OF MITSUBISHI UFJ FINANCIAL GROUP, INC. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.


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: May 16, 2016

 

Mitsubishi UFJ Financial Group, Inc.
By:  

/s/ Yasuo Matsumoto

Name:   Yasuo Matsumoto
Title:  

Chief Manager, Documentation &

Corporate Secretary Department,

Corporate Administration Division


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Consolidated Summary Report

<under Japanese GAAP>

for the fiscal year ended March 31, 2016

May 16, 2016

 

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 & Group CEO

For inquiry:

  

Kazutaka Yoneda, General Manager - Financial Planning Division / Financial Accounting Office

   TEL (03) 3240-3110

General meeting of shareholders:

   June 29, 2016

Dividend payment date:

   June 29, 2016

Securities report issuing date:

   June 29, 2016

Trading accounts:

   Established

Supplemental information for financial statements:

   Available

Investor meeting presentation:

   Scheduled (for investors and analysts)

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

1. Consolidated Financial Data for the Fiscal Year ended March 31, 2016

 

(1) Results of Operations

 

     (% represents the change from the previous fiscal year)  
     Ordinary Income      Ordinary Profits     Profits Attributable to
Owners of Parent
 
     million yen          %          million yen          %         million yen          %      

Fiscal year ended

                

March 31, 2016

     5,714,419         1.3         1,539,486         (10.1     951,402         (8.0

March 31, 2015

     5,638,402         8.9         1,713,001         1.1        1,033,759         5.0   

 

(*) Comprehensive income

                   March 31, 2016: 620,662 million yen     (82.0)%                 ;         March 31, 2015: 3,455,231 million yen     102.2%

 

     Basic earnings
per share
     Diluted earnings
per share
     Net Income to Net Assets
Attributable to
MUFG shareholders
     Ordinary Profits to
Total Assets
     Ordinary Profits to
Ordinary Income
 
     yen      yen      %      %      %  

Fiscal year ended

              

March 31, 2016

     68.51         68.17         6.2         0.5         26.9   

March 31, 2015

     73.22         72.94         7.4         0.6         30.4   

(Reference) Income from investment in affiliates (Equity method)

                   March 31, 2016: 230,415 million yen;         March 31, 2015: 159,637 million yen

 

(2) Financial Conditions

 

     Total Assets      Total Net Assets      Equity-to-asset
ratio (*)
     Total Net Assets
per Common Stock
 
     million yen      million yen      %      yen  

As of

           

March 31, 2016

     298,302,898         17,386,769         5.2         1,121.07   

March 31, 2015

     286,149,768         17,287,533         5.4         1,092.75   

(Reference) Shareholders’ equity as of     March 31, 2016: 15,457,970 million yen ;     March 31, 2015: 15,317,940 million yen

 

  (*) “Equity-to-asset ratio” is computed under the formula shown below
    (Total net assets - Subscription rights to shares - Non-controlling interests) / Total assets

 

(3) Cash Flows

 

     Cash Flows from
Operating Activities
    Cash Flows from
Investing Activities
     Cash Flows from
Financing Activities
    Cash and Cash Equivalents
at the end of the period
 
     million yen     million yen      million yen     million yen  

Fiscal year ended

         

March 31, 2016

     6,754,428        2,240,209         (105,602     18,763,856   

March 31, 2015

     (2,095,748     6,501,689         (1,156,621     9,990,035   

2. Dividends on Common Stock

 

     Dividends per Share      Total
dividends
     Dividend
payout ratio
(Consolidated)
     Dividend on
net assets ratio
(Consolidated)
 
     1st
quarter-end
     2nd
quarter-end
     3rd
quarter-end
     Fiscal
year-end
     Total           
     yen      yen      yen      yen      yen      million yen      %      %  

Fiscal year

                       

ended March 31, 2015

     —           9.00         —           9.00         18.00         253,695         24.6         1.8   

ended March 31, 2016

     —           9.00         —           9.00         18.00         249,329         26.3         1.6   

ending March 31, 2017 (Forecast)

     —           9.00         —           9.00         18.00         ——         29.2         ——   

 

(*) 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, 2017 (Consolidated)

MUFG has set an earnings target of 850.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2017.

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 profits attributable to owners of parent instead of a forecast of its performance. Please see “3. Management Policy (4) Management Target”, for further information of the target.


ø Notes

 

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

 

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

(A) Changes in accounting policies due to revision of accounting standards: No

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

(C) Changes in accounting estimates: No

(D) Restatements: No

 

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

 

(A) Total stocks outstanding including treasury stocks:

   March 31, 2016      14,168,853,820 shares   
   March 31, 2015      14,168,853,820 shares   

(B) Treasury stocks:

   March 31, 2016      380,255,157 shares   
   March 31, 2015      151,014,803 shares   

(C) Average outstanding stocks:

   Fiscal year ended March 31, 2016      13,886,503,497 shares   
   Fiscal year ended March 31, 2015      14,119,202,720 shares   

(Reference) Summary of non-consolidated financial data

1. Non-consolidated Financial Data for the Fiscal Year ended March 31, 2016

(1)  Results of Operations

 

     ( % represents the change from the previous fiscal year)  
     Operating Income      Operating Profits      Ordinary Profits     Net Income  
     million yen      %      million yen      %      million yen      %     million yen      %  

Fiscal year ended

                      

March 31, 2016

     588,340         0.4         564,684         0.1         543,069         (1.6     545,738         (1.4

March 31, 2015

     585,805         126.5         564,394         135.4         551,691         143.5        553,400         128.9   
     Basic earnings
per share
     Diluted earnings
per share
                            
    

yen

     yen                             

Fiscal year ended

                      

March 31, 2016

     39.29         39.24              

March 31, 2015

     39.19         39.14              

(2) Financial Conditions

 

     Total Assets      Total Net Assets      Equity-to-asset  ratio      Total Net Assets
per Common Stock
 
     million yen      million yen      %      yen  

As of

           

March 31, 2016

     12,043,230         8,482,329         70.4         614.47   

March 31, 2015

     10,646,262         8,357,950         78.4         595.56   

 

(Reference) Shareholders’ equity as of March 31, 2016: 8,474,069 million yen ;    March 31, 2015: 8,349,679 million yen

*Disclosure regarding the execution of the audit process

This “Consolidated Summary Report” (“Tanshin”) is outside the scope of the external auditor’s audit procedure which is required by “Financial Instruments and Exchange Act”. Therefore, the audit 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. We will publish U.S. GAAP financial results in a separate disclosure document when such information becomes available.


Mitsubishi UFJ Financial Group, Inc.

 

(Appendix)

Contents of Appendix

 

1.     Results of Operations and Financial Condition

     2   

(1) Analysis of results of operations

     2   

(2) Analysis of financial condition

     3   

(3) Basic policy regarding profit distribution and dividends for fiscal years 2015 and 2016

     5   

2.     Information on Mitsubishi UFJ Financial Group (MUFG Group)

     6   

3.     Management Policy

     9   

(1) Principal management policy

     9   

(2) Medium- and long-term management strategy

     9   

(3) Key issues

     10   

(4) Management Target

     12   

4.     Basic Views on Selection of Accounting Standards

     12   

5.     Consolidated Financial Statements

     13   

(1) Consolidated Balance Sheets

     13   

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

     15   

(3) Consolidated Statements of Changes in Net Assets

     18   

(4) Consolidated Statements of Cash Flows

     20   

Notes to the Consolidated Financial Statements

     22   

Notes on Going-Concern Assumption

  

Significant Accounting Policies Applied in the Preparation of the Consolidated Financial Statements

  

Changes in Method of Presentation

  

Consolidated Balance Sheet

  

Consolidated Statements of Income

  

Consolidated Statements of Changes in Net Assets

  

Consolidated Statements of Cash Flows

  

Financial Instruments

  

Securities

  

Money Held in Trust

  

Net Unrealized Gains (Losses) on Other Securities

  

Segment Information

  

Per Share Information

  

Significant Subsequent Events

  

6.     Non-consolidated Financial Statements

     48   

(1) Non-consolidated Balance Sheets

     48   

(2) Non-consolidated Statements of Income

     50   

(3) Non-consolidated Statements of Changes in Net Assets

     51   

Notes on Going-Concern Assumption

     53   

7.     Other

     53   

(1) Changes of Directors, Corporate Auditors and Executive Officers

     53   

Supplemental Information:

“Selected Financial Information under Japanese GAAP For the fiscal year ended March 31, 2016”

 

(*) The following is the schedule of internet conference and explanation for investors and analysts. You can confirm those contents over the internet. Materials distributed for those will be uploaded in our homepage soon after the internet conference or the explanation is held.

 

Internet Conference:    May 16, 2016 (Monday)
Explanation for investors and analysts:    May 23, 2016 (Monday)

 

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Mitsubishi UFJ Financial Group, Inc.

 

1. Results of Operations and Financial Condition

( 1)   Analysis of results of operations

(Results of operations for the fiscal year ended March 31, 2016)

The outlook has become increasingly clouded, even as the global economy—especially developed countries—remained on a gradual recovery course in FY15. Share prices around the world dropped owing to concerns surrounding China, weak oil and other resource prices. However, US domestic demand, in particular, remained on a path of self-sustained recovery as the employment picture steadily improved, despite weakness in the energy industry and some other sectors. Europe’s economy continued to pick up, propelled by the weak EUR and cheap oil, in spite of the Greek debt issue and NPLs in southern countries. In Asia, China continued to slow due to suppressed investment, while weak exports weighed on other Asian economies. Even so, private consumption remained firm throughout the region, bolstered by lower inflation. Against this backdrop, Japan’s economy continued on a gradual recovery trajectory, even with some apparent weak spots. The warm winter dampened private consumption, which remained fairly flat overall despite higher incomes. Exports to the US and Europe were strong overall, but exports to China and other emerging economies were weak, including resource-producing countries. On the other hand, capital expenditures continued to rise gradually due to robust corporate profits as the glut of capital stock was erased.

With regard to the financial situation, the US Fed hiked interest rates for the first time in nine-and-a-half years in December, as employment conditions improved. In the Eurozone, on the other hand, the ECB bolstered monetary easing, including cutting the deposit rate in December and again in March. The Bank of Japan introduced Quantitative and Qualitative Monetary Easing with Negative Interest rates in January, and the benchmark yield turned and stayed negative through to the end of the fiscal year. Share prices have fallen and the Japanese yen has rallied since the start of the year: a reflection of heightened risk aversion around the globe.

Under such business environment, consolidated gross profits for the fiscal year ended March 31, 2016 decreased 85.8 billion yen from the previous fiscal year to 4,143.2 billion yen. This was mainly due to the appreciation of the Japanese yen against the U.S. dollar since January, a decrease in net interest income from domestic loans and deposits as well as a decrease in gains on ALM, whereas an increase in overseas profit from MUFG’s group collaboration businesses in the U.S. and overseas subsidiaries’ businesses contributed to increase gross profit. General and administrative (G&A) expenses for the fiscal year ended March 31, 2016 increased 1.1 billion yen from the previous fiscal year, mainly due to higher regulatory costs in overseas businesses despite cost cutting of MUFG and a positive impact from exchange rate. As a result, net business profits were 1,557.9 billion yen, a decrease of 87.0 billion yen from the previous fiscal year.

Total credit costs for the fiscal year ended March 31, 2016 increased 93.5 billion yen from the previous fiscal year, mainly due to an increase in provision for specific allowance for credit losses. Net gains (losses) on equity securities decreased 4.8 billion yen from the previous fiscal year, mainly due to an increase in losses on write-down of equity securities.

 

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Mitsubishi UFJ Financial Group, Inc.

 

As a result, ordinary profits for the fiscal year ended March 31, 2016 were 1,539.4 billion yen, a decrease of 173.5 billion yen from the previous fiscal year, and profits attributable to owners of parent for the fiscal year ended March 31, 2016 was 951.4 billion yen, a decrease of 82.3 billion yen from the previous fiscal year.

 

(in billions of Japanese yen)    For the fiscal  year
ended
March 31, 2016
    For the fiscal  year
ended
March 31, 2015
    Increase
(Decrease)
 

Gross profits
before credit costs for trust accounts

     4,143.2        4,229.0        (85.8

General and administrative expenses

     2,585.2        2,584.1        1.1   

Net business profits
before credit costs for trust accounts and provision for general allowance for credit losses

     1,557.9        1,644.9        (87.0

Credit costs

     (315.7     (227.8     (87.9

Net gains (losses) on equity securities

     88.3        93.1        (4.8

Other non-recurring gains (losses)

     209.0        202.8        6.2   

Profits (Losses) from investments in affiliates

     230.4        159.6        70.7   

Ordinary profits

     1,539.4        1,713.0        (173.5

Net extraordinary gains (losses)

     (40.7     (98.2     57.5   

Total of income taxes-current and income taxes-deferred

     (460.2     (467.7     7.5   

Profits attributable to non-controlling interests

     (87.1     (113.2     26.0   

Profits attributable to owners of parent

     951.4        1033.7        (82.3

Total credit costs *1

     (255.1     (161.6     (93.5

 

*1 Included gains on loans written-offs

(Earnings Target for the fiscal year ending March 31, 2017)

MUFG has set an earnings target of 850.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2017.

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 profits attributable to owners of parent instead of a forecast of its performance. Please see “3. Management Policy (4) Management Target”, for further information of the target.

( 2)   Analysis of financial condition

Total assets as of March 31, 2016 increased 12,153.1 billion yen from March 31, 2015 to 298,302.8 billion yen, and total net assets as of March 31, 2016 increased 99.2 billion yen from March 31, 2015 to 17,386.7 billion yen. The increase in total net assets was mainly due to increases in retained earnings.

 

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Mitsubishi UFJ Financial Group, Inc.

 

With regard to major items of assets, securities as of March 31, 2016 decreased 3,544.3 billion yen from March 31, 2015 to 69,993.8 billion yen and loans and bills discounted as of March 31, 2016 increased 4,387.9 billion yen from March 31, 2015 to 113,756.3 billion yen. With regard to major items of liabilities, deposits as of March 31, 2016 increased 7,607.6 billion yen from March 31, 2015 to 160,965.0 billion yen.

With regard to MUFG’s consolidated risk-adjusted capital ratio based on the Basel III Standards as of March 31, 2016, Common Equity Tier 1 capital ratio was 11.63%, Tier 1 capital ratio was 13.24% and Total capital ratio was 16.01%.

 

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Mitsubishi UFJ Financial Group, Inc.

 

( 3)   Basic policy regarding profit distribution and dividends for fiscal years 2015 and 2016

MUFG considers the return of earnings to shareholders to be one of the most important management priorities and makes it a basic policy to aim for a stable and continuous increase in dividends per share through growth in profits.

With respect to the year-end dividend for common stock for fiscal year 2015, MUFG plans to pay ¥9 per share. As a result, the annual dividend for fiscal year 2015, including the interim dividend of ¥9 per share, is expected to be ¥18 per share, which is the same amount as the annual dividend of ¥18 paid for the previous fiscal year.

The annual dividend forecast for common stock for fiscal year 2016 is ¥18 per share, which is the same amount as the annual dividend to be paid for fiscal year 2015.

 

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Mitsubishi UFJ Financial Group, Inc.

 

2.  Information on Mitsubishi UFJ Financial Group (MUFG Group)

MUFG Group comprises the holding company, 224 consolidated subsidiaries, and 65 equity-method affiliates. MUFG’s goal is to be the world’s most trusted financial group, and it is engaged primarily in the banking, trust banking and securities businesses, while also conducting business in credit cards and consumer finance, leasing, asset management and other areas. The Group conducts consolidated reporting of its main entities on a segmental basis and the relationships between MUFG and its major related companies are as shown in the chart below.

 

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Mitsubishi UFJ Financial Group, Inc.

 

*1. As of April 1, 2016, Security Bank Corporation became an equity-method affiliate of The Bank of Tokyo-Mitsubishi UFJ, Ltd. following a share acquisition by The Bank of Tokyo-Mitsubishi UFJ, Ltd.
*2. The ownership of BTMU Capital Corporation is planned to be transferred to MUFG Americas Holdings Corporation on July 1, 2016.
*3. As of May 1, 2016, Mitsubishi UFJ Global Custody S.A. was renamed Mitsubishi UFJ Investor Services & Banking (Luxembourg) S.A.
*4. Mitsubishi UFJ Securities International plc plans to be renamed MUFG Securities EMEA plc on July 1, 2016.
*5. Mitsubishi UFJ Securities (USA), Inc. is planned to be renamed MUFG Securities Americas Inc. and its ownership transferred to MUFG Americas Holdings Corporation on July 1, 2016.
*6. Mitsubishi UFJ Securities (Singapore), Limited plans to be renamed MUFG Securities Asia (Singapore) Limited on July 1, 2016.
*7. Consumer finance subsidiaries.

 

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Mitsubishi UFJ Financial Group, Inc.

 

The Group has a combined group organization through which it seeks as a unified group to meet the financial needs of its customers by providing financial products and services that transcend traditional business boundaries. A system of business groups has been introduced under which the group formulates a unified strategy and pursues its business based on coordination between group companies.

 

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** The Nominating and Governance Committee is a nomination committee under the Companies Act.
*** On July 1, 2016, an Americas Enterprise Risk Management Division is planned to be established within the Global Business Group, and the Americas Enterprise Risk Management Office in the Americas Holdings Division will be abolished.

 

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Mitsubishi UFJ Financial Group, Inc.

 

3.  Management Policy

( 1) Principal management policy

MUFG Group has formulated the Group Corporate Vision to clarify the nature of the Group’s overall mission and the type of group it should aspire to be, and as a shared credo to unify the hearts and minds of Group employees, while meeting the expectations of customers and society. Throughout the Group, the people of MUFG are working under three shared values—Integrity and Responsibility, Professionalism and Teamwork, and Challenging Ourselves to Grow—while aiming to be the world’s most trusted financial group.

 

 

Corporate Vision

 

 

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( 2)  Medium- and long-term management strategy

The operating environment for financial institutions is transforming substantially amidst such trends as changing patterns of consumption stemming from an aging Japanese population and its declining birthrate and the advance of information and communications technology. It is crucial to the continued progress of MUFG for us to maintain an accurate understanding of such changes, and evolve and reform our business model as a preemptive response to these changes. Based on this recognition, the MUFG Group turned its eye toward the expected operating environment changes over the next decade, and launched its medium-term business plan, which outlines the strategies that will be implemented over the first three years of this period (Fiscal 2015–Fiscal 2017).

The basic policy of the medium-term business plan was defined as “Evolution and reformation to achieve sustainable growth for MUFG,” and we formulated the Group business strategies and the administrative practices and business foundation strategies of the plan based on three strategic focuses: “Customer perspective,” “Group-driven approach,” and “Productivity improvements.” “Customer perspective” calls on us to develop businesses based on changing customer needs. “Group-driven approach” inspires us to bolster inter-Group company unity and consider how to optimize our business on a Group-wide basis. “Productivity improvements” encapsulates our commitment to boosting competitiveness by pursuing higher levels of rationality and efficiency.

 

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Mitsubishi UFJ Financial Group, Inc.

 

By swiftly responding to environmental changes and continuing to accelerate and broaden the business and administration strategies outlined in MUFG’s medium-term business plan, the Group will pursue improved corporate value and work to live up to the expectations of its customers, shareholders, employees, and other stakeholders.

( 3) Key issues

In fiscal 2015, the outlook for the world economy grew more uncertain as markets were affected by the United States’ exit strategy from quantitative easing and the large impact of China’s economic slowdown on developing economies. Financial markets experienced large fluctuations, partly due to the Bank of Japan’s adoption of negative interest rates early in 2016. In this environment, MUFG implemented the first year of its medium-term business plan in a concerted, Group-wide effort to advance and revolutionize its business model ahead of structural changes in the future.

Advancing Group business strategies

As part of our Group business strategies, we will maintain our focus on the Japanese market while simultaneously working to incorporate the growth of the global market and evolving and reforming our business model.

For individual customers, the Group will band together to provide asset management, asset administration, and inheritance services and encourage the flow of assets from savings to investment while helping to stimulate consumption by strengthening payment and consumer finance businesses.

To address the needs of SME customers, MUFG will work to provide smooth support for customers’ funding needs while also implementing initiatives in new business fields. Initiatives in new fields will include enhancing M&A advisory service functions to respond to the rising number of business transfers and bolstering the Group’s ability to provide asset management solutions. At the same time, the Group will also accelerate efforts to contribute to the growth of customers through means such as offering business matching services.

Meanwhile, MUFG will respond to the ever more advanced, diverse, and global needs of large companies through concerted efforts conducted on a Group-wide and global basis, and will establish a unique global Corporate & Investment Banking (CIB)*1 model to aid in this endeavor. As part of this process, the Group will consolidate the its sector-specific expertise while deepening strategic collaboration with Morgan Stanley.

In sales and trading operations*2, we intend to advance integrated operations to boost our competitiveness. Specifically, MUFG will push forward with efforts to strengthen its ability to provide products and services that address the diverse needs of various customers, such as corporations and institutional investors, on a global basis.

As for asset management and investor service operations, MUFG is committed to establishing a strong position as a global player in the fields of alternative investment investor services and asset management operations in the United States, Asia, and other regions. Both organic and non-organic strategies will be employed in pursuing this goal.

 

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Mitsubishi UFJ Financial Group, Inc.

 

In transaction banking*3 operations, we aim to build an unrivaled position in the domestic market. At the same time, we will redouble efforts to address cross-border business flows, and expand trade finance operations. In addition, we will bolster product competitiveness and step up inter-regional collaboration to increase deposit balances.

Outside Japan, MUFG is working to establish and strengthen unique, comprehensive commercial banking platforms. These efforts are centered around Bank of Ayudhya Public Company Limited and MUFG Union Bank, N.A and also include developing our new capital and business alliance with Security Bank Corporation. The Group’s overseas operations have previously focused primarily on transactions with large companies, but in strengthening platforms we are branching out to accommodate local individual and SME customers.

 

*1 A business model that provides customers with end-to-end, comprehensive financial services including both Corporate Banking (e.g. deposits and loans) and Investment Banking (e.g. M&A advisory) services, in order to help customers increase their corporate value
*2 General term for sales operations involving the provision of financial products and solutions including foreign exchange and derivatives, and trading operations to buy and sell marketable products through inter-bank trading or trading on exchanges
*3 General term for deposit business, domestic exchange business, foreign exchange business, and related businesses such as cash management and trade finance

Enhancement of management fundamentals and controls

Strategies for enhancing management fundamentals and controls include the following measures to improve upon the financial base and administration practices that will underpin the evolution and reformation of business models.

BTMU, MUTB, and MUSHD will transition to Company with Audit and Supervisory Committee. Through building effective frameworks for business supervision by the Board of Directors, MUFG aims to further strengthen corporate governance systems, and governance on both a Group and global basis. At the same time, MUFG is developing more evolved and advanced comprehensive risk management practices that address new regulations and progress in businesses while placing emphasis on managing risks in an integrated and preventative manner.

We aim to strengthen and streamline the Group business platform, and this will be done in part through shared usage of systems, back-office functions, and facilities on a Group-wide basis.

In managing the Group’s finances and capital, we will work to entrench frameworks for increasing returns on risks taken, which will be done while maintaining a strong capital base as the first priority. We will also diversify funding methods in consideration of global financial regulations.

Communication with external stakeholders and Group employees will be conducted strategically and in a manner that is integrated on a Group-wide and global basis to maximize the benefits of this communication. We recognize internal communication as a means of fostering a corporate culture and creating sense of cohesion within the Group. Meanwhile, communication with outside parties contributes to improving customer satisfaction and brand value and helps accomplish corporate social responsibility activities.

 

11


Mitsubishi UFJ Financial Group, Inc.

 

( 4)  Management Target

MUFG has set an earnings target of 850.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2017.

[Reference]

MUFG Consolidated

 

(in billions of Japanese yen)   For the fiscal year
ending

March 31, 2017
    For the six months
ending

September 30, 2016
    For the fiscal year
ended

March 31, 2016
(Results)
    For the six months
ended

September 30, 2015
(Results)
 

Total credit costs

    (210.0     (110.0     (255.1     (31.0

Ordinary profits

    1,320.0        610.0        1,539.4        969.9   

Profits attributable to owners of parent

    850.0        360.0        951.4        599.3   

<2 Banks on a stand-alone basis>

       

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

       

Net business profits
before provision for general allowance for credit losses

    670.0        320.0        888.1        480.4   

Total credit costs

    (40.0     (20.0     (103.4     21.2   

Ordinary profits

    600.0        290.0        863.7        538.3   

Net income

    430.0        210.0        586.0        379.6   

Mitsubishi UFJ Trust and Banking Corporation

       

Net business profits
before credit costs for trust accounts and provision for general allowance for credit losses

    170.0        80.0        193.0        95.6   

Total credit costs

    (10.0     (5.0     (0.2     1.3   

Ordinary profits

    165.0        75.0        206.5        99.5   

Net income

    120.0        55.0        159.9        70.3   

4. Basic Views on Selection of Accounting Standards

MUFG group, currently adopting Japanese GAAP, is preparing for its future adoption of IFRS by considering the development of its infrastructures and organizations within the group, and the timing of adoption.

 

12


Mitsubishi UFJ Financial Group, Inc.

 

5. Consolidated Financial Statements

( 1) Consolidated Balance Sheets

 

(in millions of yen)    As of
March 31, 2015
    As of
March 31, 2016
 

Assets:

    

Cash and due from banks

     40,488,318        49,158,293   

Call loans and bills bought

     604,625        660,015   

Receivables under resale agreements

     7,342,335        7,466,633   

Receivables under securities borrowing transactions

     4,633,544        6,041,983   

Monetary claims bought

     4,570,712        4,733,393   

Trading assets

     20,810,617        20,460,863   

Money held in trust

     700,218        679,678   

Securities

     73,538,191        69,993,869   

Loans and bills discounted

     109,368,340        113,756,325   

Foreign exchanges

     2,187,311        1,792,888   

Other assets

     10,119,936        12,255,764   

Tangible fixed assets

     1,352,727        1,362,044   

Buildings

     333,430        349,761   

Land

     744,416        730,130   

Lease assets

     11,181        10,856   

Construction in progress

     35,774        38,494   

Other tangible fixed assets

     227,924        232,801   

Intangible fixed assets

     1,297,277        1,254,727   

Software

     552,345        570,884   

Goodwill

     309,119        278,628   

Lease assets

     730        648   

Other intangible fixed assets

     435,082        404,566   

Net defined benefit assets

     504,761        377,955   

Deferred tax assets

     114,919        125,739   

Customers’ liabilities for acceptances and guarantees

     9,511,714        9,240,310   

Allowance for credit losses

     (995,784     (1,057,585
  

 

 

   

 

 

 

Total assets

     286,149,768        298,302,898   
  

 

 

   

 

 

 

 

13


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    As of
March 31, 2015
    As of
March 31, 2016
 

Liabilities:

    

Deposits

     153,357,410        160,965,056   

Negotiable certificates of deposit

     16,073,850        11,591,578   

Call money and bills sold

     3,600,104        1,360,238   

Payables under repurchase agreements

     21,899,506        23,515,240   

Payables under securities lending transactions

     8,205,350        4,710,407   

Commercial papers

     2,179,634        2,292,282   

Trading liabilities

     15,521,917        17,251,302   

Borrowed money

     13,866,196        12,482,277   

Foreign exchanges

     1,496,476        2,054,937   

Short-term bonds payable

     789,512        752,492   

Bonds payable

     8,141,713        9,190,542   

Due to trust accounts

     3,183,295        13,296,033   

Other liabilities

     9,530,371        10,834,564   

Reserve for bonuses

     90,360        90,219   

Reserve for bonuses to directors

     454        396   

Net defined benefit liabilities

     62,121        62,791   

Reserve for retirement benefits to directors

     1,086        1,113   

Reserve for loyalty award credits

     15,375        15,971   

Reserve for contingent losses

     204,790        210,087   

Reserves under special laws

     3,771        4,232   

Deferred tax liabilities

     988,550        866,815   

Deferred tax liabilities for land revaluation

     138,669        127,237   

Acceptances and guarantees

     9,511,714        9,240,310   
  

 

 

   

 

 

 

Total liabilities

     268,862,234        280,916,129   
  

 

 

   

 

 

 

Net assets:

    

Capital stock

     2,141,513        2,141,513   

Capital surplus

     1,428,403        1,425,637   

Retained earnings

     7,860,410        8,587,578   

Treasury stock

     (101,661     (298,922
  

 

 

   

 

 

 

Total shareholders’ equity

     11,328,666        11,855,806   
  

 

 

   

 

 

 

Net unrealized gains (losses) on other securities

     2,835,091        2,486,627   

Net deferred gains (losses) on hedging instruments

     83,194        337,297   

Land revaluation excess

     172,350        176,364   

Foreign currency translation adjustments

     951,547        791,401   

Remeasurements of defined benefit plans

     (52,909     (189,526
  

 

 

   

 

 

 

Total accumulated other comprehensive income

     3,989,274        3,602,163   
  

 

 

   

 

 

 

Subscription rights to shares

     8,271        8,260   

Non-controlling interests

     1,961,322        1,920,538   
  

 

 

   

 

 

 

Total net assets

     17,287,533        17,386,769   
  

 

 

   

 

 

 

Total liabilities and net assets

     286,149,768        298,302,898   
  

 

 

   

 

 

 

 

14


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 fiscal year
ended
March 31, 2015
     For the fiscal year
ended
March 31, 2016
 

Ordinary income

     5,638,402         5,714,419   

Interest income

     2,806,238         2,769,248   

Interest on loans and bills discounted

     1,835,445         1,812,133   

Interest and dividends on securities

     627,946         628,882   

Interest on call loans and bills bought

     11,813         9,887   

Interest on receivables under resale agreements

     53,712         41,818   

Interest on receivables under securities borrowing transactions

     9,237         6,520   

Interest on deposits

     63,470         79,087   

Other interest income

     204,612         190,919   

Trust fees

     111,916         117,046   

Fees and commissions

     1,508,698         1,536,719   

Trading income

     352,950         306,354   

Other business income

     407,668         469,265   

Other ordinary income

     450,930         515,784   

Gains on loans written-off

     64,735         60,645   

Others

     386,194         455,138   

Ordinary expenses

     3,925,400         4,174,932   

Interest expenses

     624,743         655,735   

Interest on deposits

     296,887         292,909   

Interest on negotiable certificates of deposit

     44,009         48,093   

Interest on call money and bills sold

     7,226         8,204   

Interest on payables under repurchase agreements

     39,075         48,263   

Interest on payables under securities lending transactions

     8,424         7,449   

Interest on commercial papers

     3,445         6,347   

Interest on borrowed money

     47,826         46,856   

Interest on short-term bonds payable

     661         749   

Interest on bonds payable

     132,499         142,728   

Other interest expenses

     44,686         54,133   

Fees and commissions

     200,094         216,165   

Other business expenses

     133,275         183,583   

General and administrative expenses

     2,619,867         2,602,450   

Other ordinary expenses

     347,420         516,997   

Provision for allowance for credit losses

     62,012         132,691   

Others

     285,407         384,305   
  

 

 

    

 

 

 

Ordinary profits

     1,713,001         1,539,486   
  

 

 

    

 

 

 

 

15


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    For the fiscal year
ended
March 31, 2015
     For the fiscal year
ended
March 31, 2016
 

Extraordinary gains

     14,655         21,316   

Gains on disposition of fixed assets

     5,011         21,316   

Gains on change in equity

     9,643         —     

Extraordinary losses

     112,899         62,033   

Losses on disposition of fixed assets

     9,938         12,144   

Losses on impairment of fixed assets

     11,487         13,415   

Provision for reserve for contingent liabilities from financial instruments transactions

     918         460   

Losses on change in equity

     33,291         36,013   

Settlement package

     37,097         —     

Losses on sales of equity securities of subsidiaries

     20,167         —     
  

 

 

    

 

 

 

Income before income taxes and others

     1,614,757         1,498,769   
  

 

 

    

 

 

 

Income taxes-current

     421,941         424,814   

Income taxes-deferred

     45,845         35,389   
  

 

 

    

 

 

 

Total taxes

     467,786         460,204   
  

 

 

    

 

 

 

Profits

     1,146,970         1,038,565   
  

 

 

    

 

 

 

Profits attributable to non-controlling interests

     113,211         87,162   
  

 

 

    

 

 

 

Profits attributable to owners of parent

     1,033,759         951,402   
  

 

 

    

 

 

 

 

16


Mitsubishi UFJ Financial Group, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in millions of yen)    For the fiscal year
ended
March 31, 2015
     For the fiscal year
ended
March 31, 2016
 

Profits

     1,146,970         1,038,565   

Other comprehensive income

     

Net unrealized gains (losses) on other securities

     1,595,505         (346,220

Net deferred gains (losses) on hedging instruments

     77,367         252,671   

Land revaluation excess

     14,149         7,055   

Foreign currency translation adjustments

     442,466         (214,273

Remeasurements of defined benefit plans

     27,880         (141,896

Share of other comprehensive income of associates accounted for using equity method

     150,891         24,759   
  

 

 

    

 

 

 

Total other comprehensive income

     2,308,260         (417,903
  

 

 

    

 

 

 

Comprehensive income

     3,455,231         620,662   
  

 

 

    

 

 

 

(Comprehensive income attributable to)

     

Comprehensive income attributable to owners of the parent

     3,313,220         556,163   

Comprehensive income attributable to non-controlling interests

     142,011         64,498   

 

17


Mitsubishi UFJ Financial Group, Inc.

 

(3) Consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2015

 

    (in millions of yen)  
    Shareholders’ equity     Accumulated other
comprehensive income
 
    Capital
stock
    Capital
surplus
    Retained
earnings
    Treasury
stock
    Total
shareholders’
equity
    Net
unrealized
gains

(losses) on
other

securities
    Net
deferred
gains

(losses) on
hedging
instruments
 

Balance at the beginning of the period

    2,140,488        2,174,384        7,033,125        (1,699     11,346,299        1,218,397        8,295   

Cumulative effects of changes in accounting policies

      (346,454     57,909          (288,545    

Restated balance

    2,140,488        1,827,929        7,091,035        (1,699     11,057,754        1,218,397        8,295   

Changes during the period

             

Issuance of new shares-exercise of subscription rights to shares

    1,024        1,023            2,048       

Dividends from retained earnings

        (263,959       (263,959    

Profits attributable to owners of parent

        1,033,759          1,033,759       

Repurchase of treasury stock

          (490,045     (490,045    

Disposal of treasury stock

      68          82        150       

Retirement of treasury stock

      (390,000       390,000        —         

Reversal of land revaluation excess

        (424       (424    

Changes in subsidiaries’ equity

      (10,617         (10,617    

Net changes of items other than shareholders’ equity

              1,616,693        74,898   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

    1,024        (399,526     769,374        (99,962     270,911        1,616,693        74,898   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

    2,141,513        1,428,403        7,860,410        (101,661     11,328,666        2,835,091        83,194   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    (in millions of yen)  
    Accumulated other comprehensive income     Subscription
rights to
shares
    Non-controlling
interests
    Total net
assets
 
    Land
revaluation
excess
    Foreign
currency
translation
adjustments
    Remeasurements
of defined
benefit plans
    Total
accumulated
other
comprehensive
income
       

Balance at the beginning of the period

    157,776        407,229        (81,937     1,709,760        8,732        2,048,101        15,112,895   

Cumulative effects of changes in accounting policies

      (219     (152     (371       (14,360     (303,277

Restated balance

    157,776        407,010        (82,090     1,709,388        8,732        2,033,741        14,809,617   

Changes during the period

             

Issuance of new shares-exercise of subscription rights to shares

                2,048   

Dividends from retained earnings

                (263,959

Profits attributable to owners of parent

                1,033,759   

Repurchase of treasury stock

                (490,045

Disposal of treasury stock

                150   

Retirement of treasury stock

                —     

Reversal of land revaluation excess

                (424

Changes in subsidiaries’ equity

                (10,617

Net changes of items other than shareholders’ equity

    14,574        544,537        29,180        2,279,885        (461     (72,419     2,207,004   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

    14,574        544,537        29,180        2,279,885        (461     (72,419     2,477,916   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

    172,350        951,547        (52,909     3,989,274        8,271        1,961,322        17,287,533   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

18


Mitsubishi UFJ Financial Group, Inc.

 

For the fiscal year ended March 31, 2016

 

    (in millions of yen)  
    Shareholders’ equity     Accumulated other
comprehensive income
 
    Capital
stock
    Capital
surplus
    Retained
earnings
    Treasury
stock
    Total
shareholders’
equity
    Net
unrealized
gains

(losses) on
other

securities
    Net
deferred
gains

(losses) on
hedging
instruments
 

Balance at the beginning of the period

    2,141,513        1,428,403        7,860,410        (101,661     11,328,666        2,835,091        83,194   

Changes during the period

             

Dividends from retained earnings

        (251,392       (251,392    

Profits attributable to owners of parent

        951,402          951,402       

Repurchase of treasury stock

          (200,077     (200,077    

Disposal of treasury stock

      (1,182       2,815        1,633       

Reversal of land revaluation excess

        3,042          3,042       

Change of application of equity method

        24,394          24,394       

Changes in subsidiaries’ equity

      (1,584         (1,584    

Changes in foreign affiliates’ interests in their subsidiaries

        (278       (278    

Net changes of items other than shareholders’ equity

              (348,464     254,103   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

      (2,766     727,168        (197,261     527,140        (348,464     254,103   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

    2,141,513        1,425,637        8,587,578        (298,922     11,855,806        2,486,627        337,297   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
    (in millions of yen)  
    Accumulated other comprehensive income                    
    Land
revaluation
excess
    Foreign
currency
translation
adjustments
    Remeasurements
of defined
benefit plans
    Total
accumulated
other
comprehensive
income
    Subscription
rights to
shares
    Non-controlling
interests
    Total net
assets
 

Balance at the beginning of the period

    172,350        951,547        (52,909     3,989,274        8,271        1,961,322        17,287,533   

Changes during the period

             

Dividends from retained earnings

                (251,392

Profits attributable to owners of parent

                951,402   

Repurchase of treasury stock

                (200,077

Disposal of treasury stock

                1,633   

Reversal of land revaluation excess

                3,042   

Change of application of equity method

                24,394   

Changes in subsidiaries’ equity

                (1,584

Changes in foreign affiliates’ interests in their subsidiaries

                (278

Net changes of items other than shareholders’ equity

    4,013        (160,146     (136,616     (387,110     (10     (40,783     (427,904
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

    4,013        (160,146     (136,616     (387,110     (10     (40,783     99,236   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

    176,364        791,401        (189,526     3,602,163        8,260        1,920,538        17,386,769   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

19


Mitsubishi UFJ Financial Group, Inc.

 

( 4) Consolidated Statements of Cash Flows

 

     For the fiscal year     For the fiscal year  
     ended     ended  
(in millions of yen)    March 31, 2015     March 31, 2016  

Cash flows from operating activities:

    

Income before income taxes and others

     1,614,757        1,498,769   

Depreciation

     300,163        298,527   

Impairment losses

     11,487        13,415   

Amortization of goodwill

     17,787        16,931   

Equity in losses (gains) of affiliates

     (159,637     (230,415

Increase (decrease) in allowance for credit losses

     46,037        71,084   

Increase (decrease) in reserve for bonuses

     10,321        955   

Increase (decrease) in reserve for bonuses to directors

     (172     (58

Decrease (increase) in net defined benefit assets

     (62,696     (88,908

Increase (decrease) in net defined benefit liabilities

     (1,601     (2,255

Increase (decrease) in reserve for retirement benefits to directors

     (115     27   

Increase (decrease) in reserve for loyalty award credits

     969        1,313   

Increase (decrease) in reserve for contingent losses

     (43,807     5,572   

Interest income recognized on statement of income

     (2,806,238     (2,769,248

Interest expenses recognized on statement of income

     624,743        655,735   

Losses (gains) on securities

     (208,271     (221,235

Losses (gains) on money held in trust

     639        (10,689

Foreign exchange losses (gains)

     (1,213,235     1,439,205   

Losses (gains) on sales of fixed assets

     4,926        (9,171

Net decrease (increase) in trading assets

     (1,337,542     49,544   

Net increase (decrease) in trading liabilities

     1,181,142        1,980,093   

Adjustment of unsettled trading accounts

     889,029        (821,034

Net decrease (increase) in loans and bills discounted

     (5,909,031     (4,990,628

Net increase (decrease) in deposits

     6,793,900        7,888,704   

Net increase (decrease) in negotiable certificates of deposit

     488,549        (4,482,406

Net increase (decrease) in borrowed money (excluding subordinated borrowings)

     3,247,294        (1,362,550

Net decrease (increase) in due from banks (excluding cash equivalents)

     (13,003,581     80,699   

Net decrease (increase) in call loans and bills bought and others

     261,206        (633,599

Net decrease (increase) in receivables under securities borrowing transactions

     (370,559     (1,438,094

Net increase (decrease) in call money and bills sold and others

     (350,881     (435,883

Net increase (decrease) in commercial papers

     667,730        119,203   

Net increase (decrease) in payables under securities lending transactions

     2,657,417        (3,446,893

Net decrease (increase) in foreign exchanges (assets)

     (137,770     380,193   

Net increase (decrease) in foreign exchanges (liabilities)

     375,867        544,080   

Net increase (decrease) in short-term bonds payable

     353,597        (37,019

Net increase (decrease) in issuance and redemption of unsubordinated bonds payable

     906,637        649,951   

Net increase (decrease) in due to trust accounts

     1,238,144        10,112,737   

Interest income (cash basis)

     2,917,319        2,897,378   

Interest expenses (cash basis)

     (636,368     (654,026

Others

     (26,303     175,151   
  

 

 

   

 

 

 

Sub-total

     (1,658,147     7,245,155   
  

 

 

   

 

 

 

Income taxes

     (463,446     (537,036

Refund of income taxes

     25,845        46,308   
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (2,095,748     6,754,428   
  

 

 

   

 

 

 

 

20


Mitsubishi UFJ Financial Group, Inc.

 

     For the fiscal year     For the fiscal year  
     ended     ended  
(in millions of yen)    March 31, 2015     March 31, 2016  

Cash flows from investing activities:

    

Purchases of securities

     (138,305,190     (86,422,400

Proceeds from sales of securities

     110,348,143        60,274,528   

Proceeds from redemption of securities

     34,682,841        28,452,434   

Increase in money held in trust

     (479,026     (641,740

Decrease in money held in trust

     576,140        672,854   

Purchases of tangible fixed assets

     (176,368     (116,931

Purchases of intangible fixed assets

     (223,581     (231,615

Proceeds from sales of tangible fixed assets

     12,393        35,494   

Proceeds from sales of intangible fixed assets

     19        166   

Decrease related to purchases of subsidiaries’ equity affecting the scope of consolidation

     (1,015     —     

Increase related to purchases of subsidiaries’ equity affecting the scope of consolidation

     —          218,639   

Increase related to sales of subsidiaries’ equity affecting the scope of consolidation

     67,952        —     

Others

     (619     (1,221
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     6,501,689        2,240,209   
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Increase in subordinated borrowings

     55,000        38,000   

Decrease in subordinated borrowings

     (74,800     (92,500

Increase in subordinated bonds payable and bonds with warrants

     190,000        793,218   

Decrease in subordinated bonds payable and bonds with warrants

     (284,324     (294,460

Proceeds from issuance of common stock to non-controlling shareholders

     2,949        1,081   

Decrease in redemption of preferred stocks

     (137,400     —     

Dividend paid by MUFG

     (263,978     (251,497

Dividend paid by subsidiaries to non-controlling shareholders

     (106,964     (94,825

Repayments to non-controlling shareholders

     (17,602     —     

Purchases of treasury stock

     (490,044     (200,053

Proceeds from sales of treasury stock

     2        1   

Decrease related to purchases of subsidiaries’ equity not affecting the scope of consolidation

     (29,463     (4,572

Others

     4        3   
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (1,156,621     (105,602
  

 

 

   

 

 

 

Effect of foreign exchange rate changes on cash and cash equivalents

     252,797        (115,214
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     3,502,117        8,773,820   
  

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the period

     6,487,918        9,990,035   
  

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     9,990,035        18,763,856   
  

 

 

   

 

 

 

 

21


Mitsubishi UFJ Financial Group, Inc.

 

Notes to the Consolidated Financial Statements

( Notes on Going-Concern Assumption)

Not applicable

( Significant Accounting Policies Applied in the Preparation of the Consolidated Financial Statements)

 

1. Scope of Consolidation

 

  (1) Number of Consolidated Subsidiaries: 224

Principal companies:

 

The Bank of Tokyo-Mitsubishi UFJ, Ltd.    Mitsubishi UFJ Securities Holdings Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation    Mitsubishi UFJ NICOS Co., Ltd.
ACOM CO., LTD.   

(Changes in the scope of consolidation)

In the current fiscal year, Mitsubishi UFJ Capital V, Limited Partnership and 12 other companies were newly consolidated following new establishments or for other reasons.

In the current fiscal year, Mitsubishi UFJ Venture Fund II, Limited Partnership and 14 other companies were excluded from the scope of consolidation because they were no longer subsidiaries due to liquidation or other reasons.

 

  (2) Non-consolidated Subsidiaries: None

 

  (3) Entities not Accounted for as Subsidiaries even though MUFG owns the Majority of Voting Rights:

Hygeia Co., Ltd.

OiDE CapiSEA, Inc.

These were not treated as subsidiaries because Hygeia was established as a property management agent for a land trust project without any intent to control, or because OiDE CapiSEA, Inc. was established as ownership to benefit from the appreciation of their investments resulting from growth of the investees’ businesses without any intent to control.

 

2. Application of the Equity Method

 

  (1) Number of Non-consolidated Subsidiaries Accounted for under the Equity Method: None

 

  (2) Number of Affiliates Accounted for under the Equity Method: 65

Principal companies:

Mitsubishi UFJ Lease & Finance Company Limited

Morgan Stanley

(Changes in the scope of application of the equity method)

In current fiscal year, GOLDEN ASIA FUND II, L.P. and 2 other companies were newly included in the scope of application of the equity method following new establishments.

 

  (3) Number of Non-consolidated Subsidiaries not Accounted for under the Equity Method: None

 

  (4) Affiliates not Accounted for under the Equity Method: None

 

  (5) Entities not Recognized as Affiliates in which MUFG Owns 20% to 50% of their Voting Rights:

TECHTOM Ltd.

Osteopharma Inc.

Hirosaki Co., Ltd.

EDP Corporation

ISLE Co.,Ltd.

Fun Place Co.,Ltd.

AKITAYA Co,.Ltd.

These were not treated as affiliates because MUFG’s consolidated venture capital subsidiaries owned 20% to 50% of voting rights primarily to benefit from the appreciation of their investments resulting from growth or restructuring of the investees’ businesses, without any intent to control.

 

22


Mitsubishi UFJ Financial Group, Inc.

 

3. The Balance Sheet Dates of Consolidated Subsidiaries

 

  (1) The balance sheet dates of consolidated subsidiaries were as follows:

 

August 31:

   1    subsidiary

October 31:

   1    subsidiary

December 31:

   140    subsidiaries

January 24:

   17    subsidiaries

March 31:

   65    subsidiaries

 

  (2) A subsidiary whose balance sheet date is August 31 was consolidated based on its preliminary financial statements as of February 29.

A subsidiary whose balance sheet date is October 31 was consolidated based on its preliminary financial statements as of January 31.

Subsidiaries other than specified above were consolidated based on the financial statements as of their balance sheet dates.

Adjustments were made to the consolidated financial statements to reflect the significant transactions that occurred between the balance sheet dates of the subsidiaries and the consolidated balance sheet date.

 

4. Accounting Policies

 

  (1) Trading Assets and Trading Liabilities; Trading Income and Expenses

Transactions involving short-term fluctuations or arbitrage opportunities in interest rates, currency exchange rates, market prices of financial instruments or other market indices (“trading purposes”) are presented in “Trading assets” and “Trading liabilities” on the consolidated balance sheet on a trade-date basis, and gains and losses from trading transactions (interest and dividends, gains or losses on sales and gains or losses on valuation) are presented in “Trading income” and “Trading expenses” on the consolidated statement of income on a trade-date basis.

Trading assets and trading liabilities are stated at their fair values on the consolidated balance sheet date.

 

  (2) Securities

 

  (A) Debt securities being held to maturity are stated at amortized cost (using the straight-line method) computed using the moving average method. Other securities are primarily stated at their quoted market prices on the consolidated balance sheet date (cost of securities sold is calculated primarily using the moving average method), and other securities whose fair value is extremely difficult to estimate are stated at acquisition costs computed using the moving average method. Net unrealized gains (losses) on other securities are included directly in net assets, net of applicable income taxes, except in the case of application of the fair value hedge accounting method, in which the change in fair value recognized is recorded in current earnings.

 

  (B) Securities that are held as trust assets in money held in trust are accounted for under the same basis as noted above in Notes (1) and (2)(A). Unrealized gains and losses on securities in money held in trust, which are not held for trading purposes or held to maturity, are included directly in net assets, net of applicable income taxes.

 

  (3) Derivatives

Derivative transactions (other than trading purposes) are calculated primarily based on fair value.

 

23


Mitsubishi UFJ Financial Group, Inc.

 

  (4) Depreciation and Amortization of Fixed Assets

 

  (A) Tangible Fixed Assets (Except for Lease Assets)

Depreciation of tangible fixed assets of MUFG and its domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries is computed using the declining-balance method.

The useful lives are primarily estimated as follows:

Buildings:             15 to 50 years

Equipment:            2 to 20 years

Depreciation of tangible fixed assets of other consolidated subsidiaries is computed primarily using the straight-line method based on their estimated useful lives.

 

  (B) Intangible Fixed Assets (Except for Lease Assets)

Amortization of intangible fixed assets is computed using the straight-line method. Development costs for internally used software are amortized using the straight-line method over the estimated useful lives of primarily 3 to 10 years.

 

  (C) Lease Assets

Depreciation or amortization of lease assets in “Tangible fixed assets” or “Intangible fixed assets” of the finance leases other than those that are deemed to transfer the ownership of leased property to the lessees is computed using the straight-line method over the lease periods with zero residual value unless residual value is guaranteed by the corresponding lease contracts.

 

  (5) Deferred Assets

Bond issuance costs and stock issuance costs are expensed as incurred.

 

  (6) Allowance for Credit Losses

Principal domestic consolidated subsidiaries provide an allowance for credit losses in accordance with the internal standards for self-assessment of asset quality and the internal standards for write-offs and provisions.

For claims on borrowers that have entered into bankruptcy, special liquidation proceedings or similar legal proceedings or whose notes have been dishonored and suspended from processing through clearing houses (“bankrupt borrowers”) or borrowers that are not legally or formally bankrupt but are regarded as substantially in a similar condition (“substantially bankrupt borrowers”), allowances are provided based on the amount of claims, after the write-offs as stated below, net of expected amounts to be collected through the disposal of collateral and the execution of guarantees.

For claims on borrowers that are not yet legally or formally bankrupt but deemed to have a high possibility of becoming bankrupt (“potentially bankrupt borrowers”) excluding a portion of which principal and interest payment can be reasonably estimated from borrower’s cash flows, allowances are provided based on an overall solvency assessment of the claims, net of expected amounts to be collected through the disposal of collateral and the execution of guarantees.

For claims on potentially bankrupt borrowers and claims on borrowers requiring close monitoring, of which principal and interest payment can be reasonably estimated from borrower’s cash flows, allowances are provided in an amount equal to the difference between the book value of the claims and the relevant cash flows discounted by the initial contractual interest rates.

For other claims, allowances are provided based on historical credit loss experience.

For claims originated in specific foreign countries, additional allowances are provided based on an assessment of political and economic conditions of these countries.

All claims are assessed by branches and the credit supervision departments in accordance with the internal standards for self-assessment of asset quality. The credit review department, which is independent from those operating sections, subsequently audits these assessments.

For claims on bankrupt borrowers and substantially bankrupt borrowers, the amount of claims exceeding the estimated value of collateral or guarantees, which is deemed uncollectible, has been written-off. The total amount of write-offs was ¥397,076 million.

 

24


Mitsubishi UFJ Financial Group, Inc.

 

Consolidated subsidiaries, not adopting procedures stated above, provide allowances based on their historical credit loss experience for general claims and based on individual assessments of the possibility of collection for specific deteriorated claims.

 

  (7) Reserve for Bonuses

Reserve for bonuses, which is provided for future bonus payments to employees, reflects an estimated amount accrued on the consolidated balance sheet date.

 

  (8) Reserve for Bonuses to Directors

Reserve for bonuses to directors, which is provided for future bonus payments to directors, reflects an estimated amount accrued on the consolidated balance sheet date.

 

  (9) Reserve for Retirement Benefits to Directors

Reserve for retirement benefits to directors, which is provided for future payments of retirement benefits to directors of subsidiaries, is recorded in the amount deemed accrued on the consolidated balance sheet date based on the estimated amount of benefits.

 

  (10) Reserve for Loyalty Award Credits

Reserve for loyalty award credits, which is provided to meet future use of credits granted to credit card (such as Super IC Card) customers, is recorded in the amount deemed necessary based on the estimated future use of unused credits.

 

  (11) Reserve for Contingent Losses

Reserve for contingent losses, which is provided for possible losses from contingent events related to off-balance -sheet and other transactions, is calculated by estimating the impact of such contingent events and includes future claims for repayment of excess interest payments on consumer loans that are estimated based on the past and pending claims.

 

  (12) Reserves under Special Laws

Reserves under special laws represent the reserve for contingent liabilities from financial instrument transactions set aside in accordance with Article 46-5-1 and Article 48-3-1 of the Financial Instruments and Exchange Law and Article 175 and Article 189 of the Cabinet Office Ordinance on Financial Instruments Business.

 

  (13) Retirement Benefits

In calculating benefit obligation, the portion of projected benefit obligation attributed to the current fiscal year is determined using the benefit formula basis.

Unrecognized prior service cost is amortized using the straight-line method for a fixed period, primarily over 10 years, within the employees’ average remaining service period.

Unrecognized net actuarial gains (losses) are amortized using the straight-line method for a fixed period, primarily over 10 years, within the employees’ average remaining service period, starting from the subsequent fiscal year after its occurrence.

For certain overseas branches of domestic consolidated subsidiaries and some of consolidated subsidiaries, net defined benefit liability and retirement benefit expenses are calculated by the simplified method.

 

  (14) Translation of Assets and Liabilities Denominated in Foreign Currencies

Assets and liabilities denominated in foreign currencies or booked at overseas branches of domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries are translated into yen primarily at exchange rates prevailing at the consolidated balance sheet date, except for investments in non-consolidated affiliates which are translated into yen at exchange rates prevailing at the acquisition dates.

Assets and liabilities denominated in foreign currencies of other consolidated subsidiaries are translated into yen at the exchange rates prevailing at the respective balance sheet date.

 

25


Mitsubishi UFJ Financial Group, Inc.

 

  (15) Leasing Transactions

(As Lessees)

Domestic consolidated subsidiaries’ finance leases other than those that are deemed to transfer the ownership of leased property to the lessees are accounted for in a similar way to purchases, and depreciation for lease assets is computed using the straight-line method over the lease term with zero residual value unless residual value is guaranteed by the corresponding lease contracts.

(As Lessors)

Finance leases other than those that are deemed to transfer the ownership of leased property to the lessees are accounted for in a similar way to sales and income and expenses related to such leases are recognized by allocating interest equivalents to applicable fiscal periods instead of recording sales as “Other ordinary income.”

 

  (16) Hedge Accounting

 

  (A) Hedge Accounting for Interest Rate Risks

Domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries have adopted the deferred hedge accounting method for hedging transactions for interest rate risks arising from financial assets and liabilities. Portfolio hedging or individual hedging, as described in the Japanese Institute of Certified Public Accountants (“JICPA”) Industry Audit Committee Report No. 24, “Treatment of Accounting and Auditing of Application of Accounting Standard for Financial Instruments in Banking Industry” (February 13, 2002) and JICPA Accounting Committee Report No. 14, “Practical Guidelines for Accounting for Financial Instruments” (January 31, 2000), are primarily applied to determine hedged items.

With respect to hedging transactions to offset fluctuations in the fair value of fixed rate deposits, loans and other instruments, hedging instruments (e.g. interest rate swaps) are designated to hedged items individually or collectively by their maturities in accordance with JICPA Industry Audit Committee Report No. 24. With respect to hedging transactions to offset fluctuations in fair value of fixed rate bonds classified as other securities, hedging instruments (e.g. interest rate swaps) are designated to hedged items collectively by the type of bond. Since material terms related to hedged items and hedging instruments are substantially identical, and such hedging transactions are deemed highly effective, the assessment of effectiveness is based on the similarity of the terms.

With respect to hedging transactions to fix the cash flows related to floating rate deposits and loans as well as forecasted transactions related to short-term fixed rate deposits, loans and other instruments, hedging instruments (e.g. interest rate swaps) are designated to hedged items collectively by interest rate indices and tenors in accordance with JICPA Industry Audit Committee Report No. 24. Since material terms related to hedged items and hedging instruments are substantially identical, and such hedging transactions are deemed highly effective, the assessment of effectiveness is based on the similarity of the terms. The effectiveness of hedging transactions is also assessed by the correlation between factors that cause fluctuations in interest rates of hedged items and those of hedging instruments.

 

  (B) Hedge Accounting for Foreign Currency Risks

Domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries have adopted the deferred hedge accounting method for hedging foreign currency risks arising from financial assets and liabilities denominated in foreign currencies. Portfolio hedging is applied to determine hedged items as described in JICPA Industry Audit Committee Report No. 25 “Treatment of Accounting and Auditing concerning Accounting for Foreign Currency Transactions in the Banking Industry” (July 29, 2002). Hedging instruments (e.g. currency swaps and forward exchange contracts) are designated to hedged items collectively by currencies.

Portfolio hedging and individual hedging are applied to hedge foreign currency risks arising from equity investments in foreign subsidiaries and foreign affiliates, and other securities (other than bonds) denominated in foreign currencies. Monetary claims and liabilities denominated in the same foreign currencies or forward exchange contracts are used as hedging instruments. As for the hedge accounting method applied to equity investments in foreign subsidiaries and foreign affiliates, foreign currency translation differences arising from hedging instruments are recorded as foreign currency translation adjustments. The fair value hedge accounting method is applied to other securities (other than bonds) denominated in foreign currencies.

 

26


Mitsubishi UFJ Financial Group, Inc.

 

  (C) Hedge Accounting for Stock Price Fluctuation Risks

Individual hedging is applied to hedge market fluctuation risks arising from strategic equity securities held by domestic consolidated banking subsidiaries. Instruments such as total return swaps are used as hedging instruments. The effectiveness of hedging transactions is assessed by the correlation between changes in fair value of hedged items and changes in fair value of hedging instruments. The fair value hedge accounting method is applied.

 

  (D) Transactions among Consolidated Subsidiaries

Derivative transactions including interest rate swaps and currency swaps which are designated as hedging instruments among consolidated subsidiaries or between trading accounts and other accounts (or among internal sections) are not eliminated from the consolidated statements of income or valuation difference, but are recognized as related gains or losses or deferred under hedge accounting because these derivative transactions are executed, meeting certain criteria under JICPA Industry Audit Committee Reports No. 24 and No. 25 and they are regarded as equivalent to external third-party transactions.

 

  (17) Amortization Method and Amortization Period of Goodwill

Goodwill is primarily amortized using the straight-line method over 20 years starting from the period of the acquisition. Other goodwill with insignificant balances is expensed as incurred.

 

  (18) Cash and Cash Equivalents in the Consolidated Statements of Cash Flows

Cash and cash equivalents in the consolidated statements of cash flows are defined as “Cash and due from banks” on the consolidated balance sheet, excluding time deposits and negotiable certificates of deposits in other banks.

 

  (19) Consumption Taxes

National and local consumption taxes are excluded from transaction amounts. Non-deductible portions of consumption taxes on the purchases of tangible fixed assets are expensed when incurred.

 

  (20) Adoption of Consolidated Taxation System

MUFG and some of its domestic consolidated subsidiaries adopt the consolidated taxation system.

 

  (21) Accounting Standard for Foreign Subsidiaries

Financial statements of foreign subsidiaries are used for consolidated accounting as long as they are prepared in accordance with the International Financial Reporting Standards (“IFRS”) or Accounting Principles Generally Accepted in the United States (“U.S. GAAP”).

If they are prepared in accordance with generally accepted accounting principles in each domicile country and not in accordance with IFRS or U.S. GAAP, the financial statements of foreign subsidiaries are mainly rearranged in accordance with U.S. GAAP. They were also adjusted when necessary in the process of consolidation.

 

27


Mitsubishi UFJ Financial Group, Inc.

 

( Changes in Method of Presentation)

Change in presentation for “Net income,” etc. as well as change in presentation from “Minority interests” to “Non-controlling interests” has been carried out, in compliance with the provisions, etc. in Article 39 of the “Revised Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22 issued on September 13, 2013).

 

28


Mitsubishi UFJ Financial Group, Inc.

 

( Consolidated Balance Sheet)

 

1. Securities include ¥2,559,559 million in stock and ¥29,730 million in investments of affiliates.

 

2. For borrowed securities under securities borrowing transactions and securities purchased under resale agreements which were permissible to be sold or re-pledged without restrictions, ¥12,388,598 million of such securities were re-pledged, ¥222,362 million were re-loaned and ¥3,091,874 million were held by MUFG as of the consolidated balance sheet date.

 

3. Loans to bankrupt borrowers: ¥54,913 million.

Non-accrual delinquent loans: ¥1,110,576 million.

Loans to bankrupt borrowers are loans, after write-offs, to bankrupt borrowers as defined in Article 96-1-3-1 to 5 and 96-1-4 of the Enforcement Ordinance of the Corporate Tax Law (No. 97 in 1965) on which accrued interest income is not recognized (“Non-accrual loans”) as there is substantial doubt as to the collection of principal and/or interest because of delinquencies in payment of principal and/or interest for a significant period of time or for some other reasons.

Non-accrual delinquent loans represent non-accrual loans other than loans to bankrupt borrowers and loans renegotiated at concessionary terms including reduction or deferral of interest due to borrowers’ weakened financial condition.

 

4. Loans past due for 3 months or more: ¥51,620 million.

Loans past due for 3 months or more represent loans whose principal and/or interest payments have been past due for 3 months or more excluding loans to bankrupt borrowers and non-accrual delinquent loans.

 

5. Restructured loans: ¥438,767 million.

Restructured loans represent loans renegotiated at concessionary terms including reduction or deferral of interest or principal and waiver of the claims for the purpose of business reconstruction or support for the borrower, excluding loans to bankrupt borrowers, non-accrual delinquent loans and loans past due for 3 months or more.

 

6. The total amount of loans to bankrupt borrowers, non-accrual delinquent loans, loans past due for 3 months or more and restructured loans was ¥1,655,877 million.

The amounts provided in Notes 3 to 6 represent gross amounts before the deduction of allowances for credit losses.

 

7. Bills discounted were accounted for as financial transactions in accordance with JICPA Industry Audit Committee Report No. 24. MUFG’s banking subsidiaries and trust banking subsidiaries have rights to sell or pledge bank acceptances bought, commercial bills discounted, documentary bills and foreign exchanges bought without restrictions. The total face value of these bills was ¥1,088,768 million.

 

8. Assets pledged as collateral were as follows:

 

Cash and due from banks

     ¥6,194 million   

Trading assets

     ¥125,562 million   

Securities

     ¥2,843,706 million   

Loans and bills discounted

     ¥7,587,495 million   

 

29


Mitsubishi UFJ Financial Group, Inc.

 

Liabilities related to pledged assets were as follows:

 

Deposits

     ¥755,683 million   

Trading liabilities

     ¥25,015 million   

Borrowed money

     ¥9,323,452 million   

Bonds payable

     ¥19,301 million   

Acceptances and guarantees

     ¥130,389 million   

In addition to the items listed above, ¥3,425 million of cash and due from banks, ¥792,042 million of monetary claims bought, ¥273,007 million of trading assets, ¥7,231,961 million of securities, and ¥11,285,082 million of loans and bills discounted were pledged as collateral for cash settlements and other transactions or as deposits for margin accounts of futures and other transactions. ¥1,718,168 million of trading assets and ¥14,804,600 million of securities were sold under repurchase agreements or loaned under secured lending transactions with cash collateral. Payables corresponding to the assets sold or loaned under repurchase agreements and under securities lending transactions were ¥13,081,752 million and ¥3,069,990 million, respectively.

Bills rediscounted were accounted for as financial transactions in accordance with JICPA Industry Audit Committee Report No. 24. The total face value of bills of exchange rediscounted was ¥8,860 million.

 

9. Overdraft facilities and commitment lines of credit are binding contracts under which MUFG’s consolidated subsidiaries have obligations to disburse funds up to predetermined limits upon the borrower’s request as long as there have been no breach of contracts. The total amount of the unused portion of these facilities was ¥88,241,307 million.

The total amount of the unused portion does not necessarily represent actual future cash requirements because many of these contracts are expected to expire without being drawn upon. In addition, most of these contracts include clauses which allow MUFG’s consolidated subsidiaries to decline the borrower’s request for disbursement or decrease contracted limits for cause, such as changes in financial condition or deterioration in the borrower’s creditworthiness. MUFG’s consolidated subsidiaries may request the borrowers to pledge real property and/or securities as collateral upon signing of the contract and will perform periodic monitoring on the borrower’s business conditions in accordance with internal procedures, which may lead to renegotiation of the terms and conditions of the contracts and/or initiate the request for additional collateral and/or guarantees.

 

10. In accordance with the “Law concerning Revaluation of Land” (the “Law”) (No. 34, March 31, 1998), land used for business operations of domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries has been revalued as of the dates indicated below. The total excess from revaluation, net of income taxes corresponding to the excess which were recognized as “Deferred tax liabilities for land revaluation,” is stated as “Land revaluation excess” in net assets. Land revaluation excess includes MUFG’s share of affiliated companies’ land revaluation excess.

Dates of revaluation:

 

Domestic consolidated banking subsidiaries

   March 31, 1998

Domestic consolidated trust banking subsidiaries

   March 31, 1998, December 31, 2001 and March 31, 2002

The method of revaluation as set forth in Article 3, Paragraph 3 of the “Law”:

Fair values are determined based on (1) “published land price under the Land Price Publication Law” stipulated in Article 2-1 of the “Enforcement Ordinance of the Law concerning Revaluation of Land” (“Ordinance”) (No. 119, March 31, 1998), (2) “standard land price determined on measurement spots under the Enforcement Ordinance of National Land Planning Law” stipulated in Article 2-2 of the “Ordinance,” (3) “land price determined by the method established and published by the Director General of the National Tax Agency in order to calculate land value which is used for determining taxable amounts subject to landholding tax articulated in Article 16 of the Landholding Tax Law” stipulated in Article 2-4 of the “Ordinance” with price adjustments by shape and time and (4) appraisal by certified real estate appraisers stipulated in Article 2-5 of the “Ordinance” with price adjustments for time.

In addition, some of our affiliates that were accounted under equity method did the revaluation for land used for business operations on March 31, 2002.

 

30


Mitsubishi UFJ Financial Group, Inc.

 

11. Accumulated depreciation on tangible fixed assets: ¥1,218,922 million.

 

12. Deferred gains on tangible fixed assets deducted for tax purposes: ¥91,132 million.

 

13. Borrowed money included ¥616,500 million of subordinated borrowings.

 

14. Bonds payable included ¥2,579,457 million of subordinated bonds.

 

15. The principal amount of money trusts entrusted to domestic trust banking subsidiaries, for which repayment of the principal to the customers was guaranteed, was ¥7,111,058 million.

 

16. With regard to bonds and other securities in “Securities,” guarantee obligations for private placement bonds (provided in accordance with the Article 2-3 of the Financial Instruments and Exchange Law) were ¥580,398 million.

 

31


Mitsubishi UFJ Financial Group, Inc.

 

( Consolidated Statements of Income)

 

1. “Other ordinary income” included ¥230,415 million of equity in gains of the equity method investees and ¥145,347 million of gains on sales of equity securities.

 

2. “Other ordinary expenses” included ¥143,946 million of write-offs of loans and ¥101,239 million of provision for reserve for contingent losses.

 

32


Mitsubishi UFJ Financial Group, Inc.

 

(Consolidated Statements of Changes in Net Assets)

 

1. Detailed Information regarding Outstanding Shares

 

     (Thousand shares)  
     Number of
shares as of
April 1,

2015
     Number
of shares
increased
     Number
of shares

decreased
     Number of
shares as of
March 31,
2016
     Note  

Outstanding shares

              

Common stock

     14,168,853         —           —           14,168,853      

Total

     14,168,853         —           —           14,168,853      

Treasury stock

              

Common stock

     151,014         232,946         3,706         380,255         Note   

Total

     151,014         232,946         3,706         380,255      

 

(Note)   Increase in the number of common stock held in treasury by 232,946 thousand shares was mainly due to the acquisition pursuant to the provisions of Articles of Incorporation, repurchase of stocks in response to requests made by shareholders holding shares constituting less than a unit, and an increase in the number of shares held by affiliates accounted for under the equity method. Decrease in the number of common stock held in treasury by 3,706 thousand shares was mainly due to delivery of shares for exercising stock options, sale of stocks in response to requests made by shareholders holding shares constituting less than a unit, and a decrease in the number of shares held by affiliates accounted for under the equity method.

 

2. Information regarding Subscription Rights to Shares

 

Issuer

  

Type of

subscription rights to
shares

   Type of
stock to
be issued
     Number of shares subject to subscription rights      Balance as of
March 31,
2016

(in millions
of yen)
         As of
April 1,
2015
     Increase      Decrease      As of
March 31,
2016
    

MUFG

   Stock options      —           —           —           —           —         8,260

Total

     —           —           —           —           —         8,260

 

33


Mitsubishi UFJ Financial Group, Inc.

 

3. Detailed Information regarding Cash Dividends

 

  (A) Dividends Paid in the Fiscal Year Ended March 31, 2016

 

Date of approval   Type of stock    Total Dividends
(in millions of
yen)
    

Dividend

per share

(¥)

    

Dividend

record date

   Effective  date

Annual General Meeting of Shareholders on June 25, 2015

  Common stock      126,179         9       March 31,
2015
   June 25,
2015

Meeting of Board of Directors on November 13, 2015

  Common stock      125,212         9       September 30,
2015
   December 4,
2015

 

  (B) Dividends with Record Dates on or before March 31, 2016 and Effective Dates after March 31, 2016

The following matters relating to dividends are planned to be brought up at the Annual General Meeting of Shareholders scheduled to be held on June 29, 2016.

 

Date of approval

(scheduled)

   Type of stock    Total Dividends
(in millions of
yen)
    

Source of    

dividends    

  

Dividend

per share

(¥)

    

Dividend

record date

  

Effective

date

Annual General Meeting of Shareholders on June 29, 2016 (tentative)

   Common stock      124,116       Retained    

earnings    

     9       March 31,
2016
   June 29,
2016

 

34


Mitsubishi UFJ Financial Group, Inc.

 

( Consolidated Statements of Cash Flows)

The difference between “cash and cash equivalents” and items presented on the consolidated balance sheet

As of March 31, 2016

 

Cash and due from banks on the consolidated balance sheet:

     ¥ 49,158,293 million   

Time deposits and negotiable certificates of deposit in other banks:

     (¥30,394,436 million
  

 

 

 

Cash and cash equivalents:

     ¥ 18,763,856 million   
  

 

 

 

 

35


Mitsubishi UFJ Financial Group, Inc.

 

(Financial Instruments)

Disclosure on the Fair Value and Other Matters of Financial Instruments

 

(1) The following table summarizes the amount stated on the consolidated balance sheet and the fair value of financial instruments as of March 31, 2016 together with their differences.

 

     Note that the following table does not include non-listed equity securities and certain other securities of which fair value is extremely difficult to determine.

 

     (in millions of yen)  
     Amount on
consolidated balance
sheet
    Fair value      Difference  

(1) Cash and due from banks

     49,158,293        49,158,293         —     

(2) Call loans and bills bought

     660,015        660,015         —     

(3) Receivables under resale agreements

     7,466,633        7,466,633         —     

(4) Receivables under securities borrowing transactions

     6,041,983        6,041,983         —     

(5) Monetary claims bought (*1)

     4,733,393        4,730,669         (2,723

(6) Trading assets

     4,569,638        4,569,638         —     

(7) Money held in trust

     679,678        679,243         (435

(8) Securities

       

Debt securities being held to maturity

     2,334,278        2,399,033         64,754   

Other securities

     64,843,522        64,843,522         —     

(9) Loans and bills discounted

     113,756,325        

Allowance for credit losses (*1)

     (921,546     
  

 

 

   

 

 

    

 

 

 
     112,834,779        114,507,040         1,672,261   
  

 

 

   

 

 

    

 

 

 

(10) Foreign exchanges (*1)

     1,792,888        1,792,888         —     
  

 

 

   

 

 

    

 

 

 

Total assets

     255,115,104        256,848,961         1,733,857   
  

 

 

   

 

 

    

 

 

 

(1) Deposits

     160,965,056        161,003,509         38,452   

(2) Negotiable certificates of deposit

     11,591,578        11,596,148         4,569   

(3) Call money and bills sold

     1,360,238        1,360,238         —     

(4) Payables under repurchase agreements

     23,515,240        23,515,240         —     

(5) Payables under securities lending transactions

     4,710,407        4,710,407         —     

(6) Commercial papers

     2,292,282        2,292,282         —     

(7) Trading liabilities

     1,655,277        1,655,277         —     

(8) Borrowed money

     12,482,277        12,527,811         45,533   

(9) Foreign exchanges

     2,054,937        2,054,937         —     

(10) Short-term bonds payable

     752,492        752,492         —     

(11) Bonds payable

     9,190,542        9,342,105         151,563   

(12) Due to trust accounts

     13,296,033        13,296,033         —     
  

 

 

   

 

 

    

 

 

 

Total liabilities

     243,866,364        244,106,483         240,118   
  

 

 

   

 

 

    

 

 

 

Derivative transactions (*2)

       

Activities not qualifying for hedge accounting

     345,179        345,179         —     

Activities qualifying for hedge accounting

     513,695        513,695         —     
  

 

 

   

 

 

    

 

 

 

Total derivative transactions

     858,875        858,875         —     
  

 

 

   

 

 

    

 

 

 

 

36


(*1) General and specific reserves for credit losses corresponding to loans are deducted. However, with respect to items other than loans, the amount stated on the consolidated balance sheet is shown since the amount of reserve for credit losses corresponding to these items is insignificant.
(*2) Derivative transactions in trading assets and liabilities as well as other assets and liabilities are shown together. Assets and liabilities arising from derivative transactions are presented on a net basis.

 

(2) The following table summarizes financial instruments on the consolidated balance sheet whose fair value is extremely difficult to estimate. These securities are not included in the amount presented under the line item “Assets – (8) Other securities” in the table summarizing fair value of financial instruments.

 

     (in millions of yen)  

Category

   Carrying amount  

(1) Non-listed equity securities (*1) (*2)

     196,345   

(2) Investments in partnerships and others (*2) (*3)

     59,513   

(3) Others (*2)

     966   

Total

     256,825   

 

  (*1) Non-listed equity securities do not carry quoted market prices. Since it is extremely difficult to estimate the fair value of these securities, their fair value is not disclosed.
  (*2) With respect to non-listed equity securities, an impairment loss of ¥15,378 million was recorded in the current fiscal year.
  (*3) Investments in partnerships and others mainly include silent partnerships and investment partnerships and other partnerships, and they do not carry quoted market prices. Since it is extremely difficult to estimate the fair value of these securities, their fair value is not disclosed.

 

37


Mitsubishi UFJ Financial Group, Inc.

 

( Securities)

In addition to “Securities” on the consolidated balance sheet, the figures in the following tables include trading account securities, securities related to trading transactions and short-term corporate bonds classified as “Trading assets,” negotiable certificates of deposit in “Cash and due from banks” and beneficiary certificates of commodities investment trusts in “Monetary claims bought” and others.

1. Trading Securities (as of March 31, 2016)

 

     (in millions of yen)  
         Net unrealized gains (losses) recorded on the  consolidated statement of income during the current fiscal year      

Trading securities

     4,196   

2. Debt Securities Being Held to Maturity (as of March 31, 2016)

 

    

(in millions of yen)

 
    

Type of securities

   Amount on
consolidated
balance
sheet
     Fair value      Difference  

Securities of which the fair value exceeds the amount recorded on the consolidated balance sheet

  

Domestic bonds

     1,101,107         1,159,115         58,008   
  

Government bonds

     1,101,107         1,159,115         58,008   
  

Municipal bonds

     —           —           —     
  

Corporate bonds

     —           —           —     
  

Other securities

     1,157,524         1,179,101         21,576   
  

Foreign bonds

     714,485         727,290         12,805   
  

Other

     443,039         451,810         8,771   
  

Subtotal

     2,258,631         2,338,216         79,584   

Securities of which the fair value does not exceed the amount recorded on the consolidated balance sheet

  

Domestic bonds

     —           —           —     
  

Government bonds

     —           —           —     
  

Municipal bonds

     —           —           —     
  

Corporate bonds

     —           —           —     
  

Other securities

     1,627,607         1,612,541         (15,066
  

Foreign bonds

     518,685         512,627         (6,058
  

Other

     1,108,922         1,099,914         (9,007
  

Subtotal

     1,627,607         1,612,541         (15,066

Total

     3,886,239         3,950,758         64,518   

 

38


Mitsubishi UFJ Financial Group, Inc.

 

3. Other Securities (as of March 31, 2016)

 

    

(in millions of yen)

 
    

Type of securities

   Amount on
consolidated
balance sheet
     Acquisition cost      Difference  

Securities of which the fair value exceeds the acquisition cost

  

Domestic equity securities

     4,470,335         2,174,567         2,295,767   
  

Domestic bonds

     25,972,881         25,251,159         721,722   
  

Government bonds

     23,143,622         22,511,489         632,132   
  

Municipal bonds

     412,716         401,093         11,623   
  

Corporate bonds

     2,416,542         2,338,575         77,966   
  

Other securities

     24,976,085         24,287,079         689,005   
  

Foreign equity securities

     92,567         57,122         35,445   
  

Foreign bonds

     23,029,536         22,484,665         544,870   
  

Other

     1,853,981         1,745,292         108,689   
  

Subtotal

     55,419,301         51,712,806         3,706,495   

Securities of which the fair value does not exceed the acquisition cost

  

Domestic equity securities

     402,877         493,219         (90,342
  

Domestic bonds

     4,349,610         4,353,085         (3,475
  

Government bonds

     4,112,375         4,112,607         (231
  

Municipal bonds

     36,613         36,697         (84
  

Corporate bonds

     200,621         203,780         (3,159
  

Other securities

     5,346,690         5,474,071         (127,380
  

Foreign equity securities

     56,509         68,134         (11,624
  

Foreign bonds

     3,620,897         3,654,781         (33,883
  

Other

     1,669,284         1,751,156         (81,872
  

Subtotal

     10,099,178         10,320,377         (221,198

Total

     65,518,480         62,033,183         3,485,297   

 

(Note)   The total difference amount shown in the table above includes ¥5,480 million revaluation losses of securities by application of the fair value hedge accounting method.

 

39


Mitsubishi UFJ Financial Group, Inc.

 

4. Other Securities Sold during the Current Fiscal Year (from April 1, 2015 to March 31, 2016)

 

     (in millions of yen)  
     Amount sold      Gains on sales      Losses on sales  

Domestic equity securities

     226,737         109,614         1,846   

Domestic bonds

     41,274,799         123,202         29,464   

Government bonds

     41,035,107         121,845         29,234   

Municipal bonds

     68,124         293         107   

Corporate bonds

     171,568         1,063         122   

Other securities

     18,141,520         183,499         130,113   

Foreign equity securities

     13,692         1,066         1,164   

Foreign bonds

     16,918,883         142,276         102,273   

Other

     1,208,943         40,156         26,674   

Total

     59,643,057         416,315         161,424   

 

5. Securities Incurred Impairment Losses

Securities other than those held for trading purposes and investment in affiliates (excluding certain securities of which fair value is extremely difficult to determine) are subject to write-downs when their fair value has been impaired considerably and it is not probable that the value will recover to the acquisition cost as of the end of the current fiscal year. In such case, the fair value is recorded on the consolidated balance sheet and the difference between fair value and acquisition cost is recognized as losses for the fiscal year (referred to as “impairment losses”).

For the current fiscal year, impairment losses were ¥10,351 million consisting of ¥ 10,063 million of impairment losses on equity securities and ¥ 287 million of impairment losses on bonds and other securities in which securities whose fair value was extremely difficult to estimate were included.

“Considerable decline in fair value” was determined based on the classification of issuers in accordance with the internal standards for self-assessment of asset quality as follows:

Bankrupt, Substantially bankrupt or Potentially bankrupt issuers:

Fair value is lower than acquisition cost.

Issuers requiring close monitoring:

Fair value has declined 30% or more from acquisition cost.

Other issuers:

Fair value has declined 50% or more from acquisition cost.

“Bankrupt issuers” mean issuers who have entered into bankruptcy, special liquidation proceedings or similar legal proceedings or whose notes have been dishonored and suspended from processing through clearing houses. “Substantially bankrupt issuers” mean issuers who are not legally or formally bankrupt but are regarded as substantially in a similar condition. “Potentially bankrupt issuers” mean issuers who are not yet legally or formally bankrupt but deemed to have a high possibility of becoming bankrupt. “Issuers requiring close monitoring” mean issuers who are financially weak and under close monitoring conducted by MUFG’s subsidiaries. “Other issuers” mean issuers who do not correspond to any of the four categories of issuers mentioned above.

 

40


Mitsubishi UFJ Financial Group, Inc.

 

( Money Held in Trust)

 

1. Money Held in Trust for Trading Purpose (as of March 31, 2016)

 

     (in millions of yen)
     Amount on
consolidated
balance sheet
    

Net unrealized gains (losses) recorded on the consolidated

statement of income during the current fiscal year

Money held in trust for trading purpose

     70,196       (222)

 

2. Money Held in Trust Being Held to Maturity (as of March 31, 2016)

 

     (in millions of yen)  
     (a) Amount on
consolidated
balance sheet
     (b) Fair value      Difference
(b)-(a)
     Money held in
trust with
respect to
which (b)
exceeds (a)
     Money held in
trust with
respect to
which (b) does
not exceed (a)
 

Money held in trust being held to maturity

     46,266         46,761         494         494         —     

 

(Note) “Money held in trust with respect to which (b) exceeds (a)” and “Money held in trust with respect to which (b) does not exceed (a)” show the breakdown of the difference between (a) and (b).

 

3. Money Held in Trust not for Trading Purpose or Being Held to Maturity (as of March 31, 2016)

 

     (in millions of yen)  
     (a) Amount on
consolidated
balance sheet
     (b)
Acquisition
cost
     Difference
(a)-(b)
     Money held in
trust with
respect to
which (a)
exceeds (b)
     Money held in
trust with
respect to
which (a) does
not exceed (b)
 

Money held in trust not for trading purpose or being held to maturity

     563,215         561,853         1,361         1,361         —     

 

(Note) “Money held in trust with respect to which (a) exceeds (b)” and “Money held in trust with respect to which (a) does not exceed (b)” show the breakdown of the difference between (a) and (b).

( Net Unrealized Gains (Losses) on Other Securities)

Detailed information regarding net unrealized gains (losses) on other securities (as of March 31, 2016)

 

     (in millions of yen)  

Net unrealized gains (losses) on other securities

     3,473,305   

Other securities

     3,499,436   

Money held in trust not for trading purpose or being held to maturity

     1,361   

Reclassification from “Other securities” to “Debt securities being held to maturity”

     (27,492

Deferred tax liabilities

     (1,011,562

Net unrealized gains (losses) on other securities, net of deferred tax liabilities (before MUFG’s ownership share of affiliates’ unrealized gains (losses) adjustments)

     2,461,743   

Non-controlling interests

     9,785   

MUFG’s ownership share of affiliates’ unrealized gains (losses) on other securities

     15,098   

Total

     2,486,627   

 

(Notes)  

(1)    “Net unrealized gains (losses) on other securities” shown in the above table excluded ¥5,480 million revaluation losses of securities by application of the fair value hedge accounting method, which were recorded in current earnings.

 

(2)    “Net unrealized gains (losses) on other securities” shown in the above table included ¥8,659 million of unrealized gains on securities in investment limited partnerships.

 

41


Mitsubishi UFJ Financial Group, Inc.

 

( Segment Information)

 

1. Information regarding the Amounts of Ordinary Income, Ordinary Profits (Losses), Assets and other items by Segment

For the Fiscal Year Ended March 31, 2016

 

    (in millions of yen)  
    The Bank of
Tokyo-
Mitsubishi
UFJ, Ltd.
    Mitsubishi
UFJ
Trust and
Banking
Corporation
    Mitsubishi
UFJ
Securities
Holdings
Co., Ltd.
    Consumer
Finance
Subsidiaries
    Others     Total     Adjustments     Amount
recorded in
the
consolidated
financial
statements
 

Ordinary income

    4,033,796        728,186        487,969        509,022        677,339        6,436,315        (721,895     5,714,419   

Interest income

    2,323,774        237,123        38,315        196,460        644,809        3,440,483        (671,234     2,769,248   

Investment gains on equity method

    25,000        11,020        19,578        195        —          55,794        174,621        230,415   

Ordinary income from customers

    3,906,856        714,368        411,727        487,845        193,621        5,714,419        —          5,714,419   

Ordinary income from internal transactions

    126,939        13,818        76,242        21,176        483,718        721,895        (721,895     —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment income (loss)

    685,835        160,919        41,926        (26,307     608,171        1,470,546        (519,143     951,402   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment assets

    222,797,387        45,685,976        31,021,997        4,249,166        13,344,284        317,098,811        (18,795,913     298,302,898   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other items

               

Depreciation

    212,656        32,288        20,794        25,256        2,452        293,449        5,077        298,527   

Amortization of goodwill

    15,943        1,049        2,077        984        —          20,055        (3,124     16,931   

Interest expenses

    535,643        83,767        30,912        20,010        32,153        702,486        (46,751     655,735   

Extraordinary gains

    36,950        81        —          8        —          37,040        (15,723     21,316   

Extraordinary losses

    21,247        2,677        3,596        1,919        91        29,532        32,501        62,033   

Impairment losses on fixed assets

    11,011        1,605        710        6        81        13,415        —          13,415   

Income tax expenses

    350,207        66,095        33,329        19,981        (2,590     467,024        (6,820     460,204   

Unamortized balance of goodwill

    258,760        20,520        37,320        6,459        —          323,061        (44,432     278,628   

Investment to companies accounted for under the equity method

    282,910        139,749        251,025        5,016        823,721        1,502,423        1,086,866        2,589,290   

Increases in tangible and intangible fixed assets

    223,441        51,035        48,147        28,606        5,938        357,169        —          357,169   

 

(Notes)    (1)   Ordinary income, interest income and interest expenses are presented, respectively, in lieu of net sales, interest on deposits and interest on borrowings of the companies in non-banking industries.
   (2)   “Others” includes MUFG.
   (3)   Segment income for “Others” includes ¥574,251 million of dividends from MUFG’s subsidiaries and affiliates.
   (4)   Interest income adjustments include elimination of the dividends from affiliates recorded by MUFG.
   (5)   Segment income (loss) adjustments include minus ¥721,513 million elimination of internal transactions, as well as ¥202,369 million comprising investment gains (losses) on equity method, amortization of goodwill, tax expenses, and profits attributable to non-controlling interests that are not attributable to specific segments.
   (6)   Segment assets adjustments are primarily elimination of assets and liabilities between segments.
   (7)   Adjustments for extraordinary losses include losses on change in equity
   (8)   Segment income (loss) is reconciled to profits attributable to owners of parent in the consolidated statement of income.

 

42


Mitsubishi UFJ Financial Group, Inc.

 

( Per Share Information)

 

     For the fiscal year  ended
March 31, 2016
 

Net assets per common share

     ¥1,121.06   

Basic earnings per common share

     ¥68.51   

Diluted earnings per common share

     ¥68.17   

 

(Notes)  

(1)    Basis for computing basic earnings per common share and diluted earnings per common share is as follows:

 

         

For the fiscal year ended

March 31, 2016

Basic earnings per common share

     

Profits attributable to owners of parent

   million yen   

951,402 

Amounts not attributable to common shareholders

   million yen   

—   

Profits attributable to common shareholders of parent

   million yen   

951,402 

Average number of common share outstanding for the fiscal period

   thousand shares   

13,886,503 

Diluted earnings per common share

     

Adjustments in profits attributable to owners of parent

   million yen    (3,539)

Adjustments made to reflect dilutive shares of consolidated subsidiaries and others

   million yen    (3,539)

Increase in common share

   thousand shares    17,474 

Subscription rights to shares

   thousand shares    17,474 

Antidilutive securities which were not included in the calculation of diluted earnings per common share

     

Subscription rights to shares of affiliates accounted for under the equity method:

Morgan Stanley Stock options
- 11 million units as of December 31, 2015

(2) Basis for computing net assets per common share is as follows:

 

         

For the fiscal year ended

March 31, 2016

Total net assets

   million yen    17,386,769 

Amounts deducted from total net assets

   million yen    1,928,799 

Subscription rights to shares

   million yen    8,260 

Non-controlling interests

   million yen    1,920,538 

Net assets attributable to common shareholders at the end of the fiscal period

   million yen    15,457,970 

Number of common stock outstanding at the end of the fiscal period (excluding treasury stock)

   thousand shares    13,788,598 

 

43


Mitsubishi UFJ Financial Group, Inc.

 

( Significant Subsequent Events)

(Share Acquisition of Security Bank)

The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), a consolidated subsidiary of MUFG, has concluded the Subscription Agreement with Security Bank Corporation (Security Bank), a leading commercial bank in the Philippines on January 14, 2016, and on April 1, 2016, BTMU acquired 20.0% of Security Bank’s newly issued common shares and preferred shares and appointed 2 directors of Security Bank’s Board of Directors (BOD), and Security Bank became an equity method affiliate of BTMU.

 

1. Outline of Share Acquisition

 

(1)    Total number of shares acquired:

  

150,707,778shares of common shares

  

200,000,000shares of preferred shares

(2)    Acquisition rate:

  

20.0%of Security Bank’s common shares and preferred shares with voting rights

(3)    Acquisition Price:

  

PHP 245 per common share

  

PHP 0.1 per preferred share

(4)    Investment Amount:

  

PHP 36,943 million

(5)    Board Representation:

  

BTMUhas already appointed 2 directors to the Security Bank’s BOD

 

2. Outline of Business Alliance

Leveraging both banks’ expertise and customer base, BTMU will enhance its services offered to the enlarged customer base in the Philippines through promoting the collaboration in the areas described below:

<Main collaboration areas>

 

  (1) Work-site business to Japanese corporate employees

 

  (2) Trade Finance

 

  (3) Project Finance

 

  (4) Reciprocal long-term funding support

 

  (5) Capture Japan-related business opportunities including large-size projects Japanese corporates are engaged in

 

  (6) Exchange of knowledge and technological expertise

 

  (7) Explore other collaboration areas between MUFG’s key subsidiaries/affiliates companies, including leasing, securities, and asset management.

 

3. Overview of Security Bank

 

(1)    Name:

  

SecurityBank Corporation

(2)    Type of business:

  

CommercialBank

(3)    Year of establishment:

  

1951

(4)    Headquarters:

  

ManilaCity, Republic of the Philippines

(5)    Representative:

  

Mr.  Alfonso L. Salcedo, Jr. President and CEO

(6)    Capital Stock:

  

PHP 6,089 million (as of September 30, 2015)

(7)    Relationship with MUFG and BTMU:

MUFG and BTMU, on one hand, and Security Bank, on the other, do not have any capital, personal or transactional relationship that are required to be disclosed.

(8)    Number of Employees:

  

4,014(as of December 31, 2014)

(9)    Number of branches:

  

262  (as of January 13, 2016)

 

44


Mitsubishi UFJ Financial Group, Inc.

 

  (10) Business sizes (for the fiscal year ended December 31, 2015)

 

     (in millions of PHP)  

Total operating income

     18,308   

Income before income tax

     8,302   

Profits attributable to owners of parent

     7,536   

Total assets

     532,200   

Net assets

     53,214   

 

(Notes)  

(1)    The amount of “Income before income tax” is the difference between “Total operating income” and “Operating expenses.”

 

(2)    The above figures are based on the Form 17-C of Security Bank prepared in accordance with the Securities Regulation Code of the Philippines.

 

45


Mitsubishi UFJ Financial Group, Inc.

 

(Capital and Business Alliance of Hitachi Capital)

MUFG and Mitsubishi UFJ Lease & Finance Company Limited (MUL), an affiliate accounted for under the equity method of MUFG, has concluded the Share Purchase Agreement to transfer common shares of Hitachi Capital Corporation (Hitachi Capital) held by Hitachi, Ltd. (Hitachi) on May 13, 2016 and the five companies, MUFG, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), a consolidated subsidiary of MUFG, MUL, Hitachi, and Hitachi Capital have agreed to execute a business alliance as follows. MUFG will acquire 23.0% of Hitachi Capital’s shares, subject to the execution of the definitive agreement on business alliance and approval of relevant regulatory authorities, and will appoint a director of Hitachi Capital’s Board of Directors (BOD). Hitachi Capital will become an equity method affiliate of MUFG.

 

1. Outline of Capital Alliance

 

(1)   Acquisition structure:    MUFG will acquire 26,884,484 shares of Hitachi Capital’s
     common shares (23.0%) from Hitachi, the parent company of
     Hitachi Capital, through off-market trading and Hitachi
     Capital will become an equity method affiliate of MUFG.
     In addition, MUFG and MUL signed the
     Agreement on Capital Alliance with Hitachi Capital.
(2)   Acquisition Price:    JPY 3,400 in common shares
(3)   Acquisition Amount:    JPY 91,400 million
(4)   Implementation Date:    The transaction is expected to close in August 2016, subject
     to regulatory approval and other conditions precedents
(5)   Board Representation:    MUFG will appoint a director to the Hitachi Capital’s BOD

 

2. Outline of Business Alliance

MUFG, BTMU, MUL, Hitachi, and Hitachi Capital will make a discussion on building an open financial platform, mainly operated by MUL and Hitachi Capital through promoting the collaboration, in order to provide support for infrastructure industry from financial perspective. The areas of main collaboration are as follows:

<Main collaboration areas>

 

  (1) Environment and energy

 

  (2) Urban infrastructure and public facilities

 

  (3) Real estate

 

  (4) Overseas market mainly in the Americas, ASEAN, and China

 

3. Overview of Hitachi Capital

 

(1)

  Name:    Hitachi Capital Corporation

(2)

  Type of business:    General leasing business

(3)

  Year of establishment:    1957

(4)

  Headquarters:    Nishi-Shimbashi Square, 3-1, Nishi Shimbashi 1-chome,
     Minato-ku, Tokyo

(5)

  Representative:    Mr. Seiji Kawabe President and CEO

(6)

  Capital Stock:    JPY 9,983 million (as of March 31, 2016)

(7)

  Relationship with MUFG:   
  MUFG and Hitachi Capital, on the other, do not have any capital, personal or transactional relationship that are required to be disclosed.
(8)   Number of Employees:    5,397 (consolidated, as of March 31, 2015)

 

46


Mitsubishi UFJ Financial Group, Inc.

 

  (9) Business sizes (for the fiscal year ended March 31, 2016)

 

     (in millions of JPY)  

Gross profit

     130,014   

Adjusted operating income

     45,230   

Net income attributable to owners of the parent

     32,694   

Total assets

     3,081,201   

Total equity

     347,559   

 

(Notes)   (1)   The amount of “Adjusted operating income” is the difference between “Gross profit” and “Selling, general and administrative expenses.”
  (2)   The above figures are based on the consolidated earnings report of Hitachi Capital prepared in accordance with IFRS.

 

47


Mitsubishi UFJ Financial Group, Inc.

 

6.  Non-consolidated Financial Statements

 

( 1) Non-consolidated Balance Sheets

 

(in millions of yen)    As of
March 31, 2015
    As of
March 31, 2016
 

Assets:

    

Current assets:

    

Cash and due from banks

     71,674        160,467   

Prepaid expenses

     45        117   

Deferred tax assets

     203        307   

Accounts receivable

     147,935        63,428   

Others

     2,249        5,947   

Allowance for credit losses

     (0     (1
  

 

 

   

 

 

 

Total current assets

     222,109        230,267   
  

 

 

   

 

 

 

Fixed assets:

    

Tangible fixed assets:

    

Buildings

     22        21   

Equipment and furniture

     380        412   
  

 

 

   

 

 

 

Total tangible fixed assets

     402        433   
  

 

 

   

 

 

 

Intangible fixed assets:

    

Trademarks

     72        136   

Software

     8,302        9,207   

Lease assets

     59        38   

Others

     1        1   
  

 

 

   

 

 

 

Total intangible fixed assets

     8,436        9,384   
  

 

 

   

 

 

 

Investments and other assets:

    

Investments in subsidiaries and affiliates

     10,186,842        10,186,842   

Long-term loans receivable from subsidiaries and affiliates

     190,000        1,586,400   

Deferred tax assets

     38,412        30,523   

Others

     172        172   

Allowance for credit losses

     (114     (793
  

 

 

   

 

 

 

Total investments and other assets

     10,415,313        11,803,145   
  

 

 

   

 

 

 

Total fixed assets

     10,424,152        11,812,962   
  

 

 

   

 

 

 

Total assets

     10,646,262        12,043,230   
  

 

 

   

 

 

 

 

48


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    As of
March 31, 2015
    As of
March 31, 2016
 

Liabilities:

    

Current liabilities:

    

Short-term borrowings

     1,824,447        1,703,000   

Lease liabilities

     21        20   

Accounts payable

     16,346        9,782   

Accrued expenses

     2,324        5,985   

Income taxes payable

     67        1,415   

Deposits received

     143        142   

Reserve for bonuses

     422        569   

Reserve for bonuses to directors

     51        105   

Others

     1        0   
  

 

 

   

 

 

 

Total current liabilities

     1,843,826        1,721,022   
  

 

 

   

 

 

 

Fixed liabilities:

    

Bonds payable

     440,500        1,798,024   

Long-term borrowings

     —          38,000   

Long-term borrowings from subsidiaries and affiliates

     3,938        3,826   

Lease liabilities

     34        14   

Others

     11        11   
  

 

 

   

 

 

 

Total fixed liabilities

     444,484        1,839,877   
  

 

 

   

 

 

 

Total liabilities

     2,288,311        3,560,900   
  

 

 

   

 

 

 

Net assets:

    

Shareholders’ equity:

    

Capital stock

     2,141,513        2,141,513   

Capital surplus:

    

Capital reserve

     2,141,524        2,141,524   

Other capital surplus

     1,470,006        1,468,824   
  

 

 

   

 

 

 

Total capital surplus

     3,611,530        3,610,348   
  

 

 

   

 

 

 

Retained earnings:

    

Other retained earnings:

    

Other reserve

     150,000        150,000   

Earned surplus brought forward

     2,682,257        2,976,603   
  

 

 

   

 

 

 

Total retained earnings

     2,832,257        3,126,603   
  

 

 

   

 

 

 

Treasury stock

     (100,147     (297,385
  

 

 

   

 

 

 

Total shareholders’ equity

     8,485,153        8,581,079   
  

 

 

   

 

 

 

Valuation and translation adjustments:

    

Net deferred gains (losses) on hedging instruments

     (135,474     (107,010
  

 

 

   

 

 

 

Total valuation and translation adjustments

     (135,474     (107,010
  

 

 

   

 

 

 

Subscription rights to shares

     8,271        8,260   
  

 

 

   

 

 

 

Total net assets

     8,357,950        8,482,329   
  

 

 

   

 

 

 

Total liabilities and net assets

     10,646,262        12,043,230   
  

 

 

   

 

 

 

 

49


Mitsubishi UFJ Financial Group, Inc.

 

(2 ) Non-consolidated Statements of Income

 

(in millions of yen)    For the fiscal year
ended
March 31, 2015
    For the fiscal year
ended
March 31, 2016
 

Operating income:

    

Dividends

     563,746        563,953   

Management fees from subsidiaries and affiliates

     22,059        24,387   
  

 

 

   

 

 

 

Total operating income

     585,805        588,340   
  

 

 

   

 

 

 

Operating expenses:

    

General and administrative expenses

     21,411        23,655   
  

 

 

   

 

 

 

Total operating expenses

     21,411        23,655   
  

 

 

   

 

 

 

Operating profits

     564,394        564,684   
  

 

 

   

 

 

 

Non-operating income:

    

Interest on deposits

     413        8,043   

Interest on securities

     35        —     

Dividends

     15,524        10,298   

Others

     1,042        990   
  

 

 

   

 

 

 

Total non-operating income

     17,016        19,331   
  

 

 

   

 

 

 

Non-operating expenses:

    

Interest on borrowings

     13,117        13,701   

Interest on bonds payable

     15,063        18,410   

Provision for allowance for credit losses

     114        681   

Bonds payable issuance cost

     1,193        7,717   

Others

     230        436   
  

 

 

   

 

 

 

Total non-operating expenses

     29,719        40,946   
  

 

 

   

 

 

 

Ordinary profits

     551,691        543,069   
  

 

 

   

 

 

 

Extraordinary losses:

    

Losses on retirement of fixed assets

     53        7   

Losses on impairment of fixed assets

     —          81   
  

 

 

   

 

 

 

Total extraordinary losses

     53        88   
  

 

 

   

 

 

 

Income before income taxes

     551,637        542,980   
  

 

 

   

 

 

 

Income taxes-current

     (16,534     (2,307

Income taxes-deferred

     14,771        (450
  

 

 

   

 

 

 

Total taxes

     (1,762     (2,758
  

 

 

   

 

 

 

Net income

     553,400        545,738   
  

 

 

   

 

 

 

 

50


Mitsubishi UFJ Financial Group, Inc.

 

( 3) Non-consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2015

 

     (in millions of yen)  
     Shareholders’ equity  
     Capital stock     Capital surplus     Retained earnings  
                   Other retained earnings  
       Capital reserve     Other capital surplus     Other reserve     Earned surplus
brought forward
 

Balance at the beginning of the period

     2,140,488        2,140,501        1,860,006        150,000        2,392,816   

Changes during the period

          

Issuance of new shares-exercise of subscription rights to shares

     1,024        1,023         

Dividends from retained earnings

             (263,959

Net income

             553,400   

Repurchase of treasury stock

          

Disposal of treasury stock

         0       

Retirement of treasury stock

         (390,000    

Net changes of items other than shareholders’ equity

          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

     1,024        1,023        (390,000     —          289,440   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

     2,141,513        2,141,524        1,470,006        150,000        2,682,257   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     (in millions of yen)  
     Shareholders’ equity     Valuation and
translation
adjustments
             
     Treasury stock     Total shareholders’
equity
    Net deferred gains
(losses) on hedging
instruments
    Subscription rights to
shares
    Total net assets  

Balance at the beginning of the period

     (105     8,683,707        (69,224     8,732        8,623,215   

Changes during the period

          

Issuance of new shares-exercise of subscription rights to shares

       2,048            2,048   

Dividends from retained earnings

       (263,959         (263,959

Net income

       553,400            553,400   

Repurchase of treasury stock

     (490,045     (490,045         (490,045

Disposal of treasury stock

     2        2            2   

Retirement of treasury stock

     390,000        —              —     

Net changes of items other than shareholders’ equity

         (66,249     (461     (66,711
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

     (100,042     (198,553     (66,249     (461     (265,264
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

     (100,147     8,485,153        (135,474     8,271        8,357,950   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

51


Mitsubishi UFJ Financial Group, Inc.

 

For the fiscal year ended March 31, 2016

 

     (in millions of yen)  
     Shareholders’ equity  
     Capital stock     Capital surplus     Retained earnings  
     Capital reserve     Other capital surplus     Other retained earnings  
         Other reserve     Earned surplus
brought forward
 

Balance at the beginning of the period

     2,141,513        2,141,524        1,470,006        150,000        2,682,257   

Changes during the period

          

Dividends from retained earnings

             (251,392

Net income

             545,738   

Repurchase of treasury stock

          

Disposal of treasury stock

         (1,182    

Net changes of items other than shareholders’ equity

          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

     —          —          (1,182     —          294,346   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

     2,141,513        2,141,524        1,468,824        150,000        2,976,603   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     (in millions of yen)  
     Shareholders’ equity     Valuation and
translation
adjustments
    Subscription rights
to shares
    Total net assets  
     Treasury stock     Total shareholders’
equity
    Net deferred gains
(losses) on hedging
instruments
     

Balance at the beginning of the period

     (100,147     8,485,153        (135,474     8,271        8,357,950   

Changes during the period

          

Dividends from retained earnings

       (251,392         (251,392

Net income

       545,738            545,738   

Repurchase of treasury stock

     (200,053     (200,053         (200,053

Disposal of treasury stock

     2,815        1,633            1,633   

Net changes of items other than shareholders’ equity

         28,463        (10     28,453   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

     (197,237     95,926        28,463        (10     124,379   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

     (297,385     8,581,079        (107,010     8,260        8,482,329   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

52


Mitsubishi UFJ Financial Group, Inc.

 

Notes on Going-Concern Assumption

Not applicable

7. Other

 

  ( 1) Changes of Directors, Corporate Auditors and Executive Officers

Please refer to “Directors, Corporate Auditors and Executive Officers, Planned Changes and Candidates” posted on May 16, 2016 with regard to the changes of directors.

 

53


 

 

Selected Financial Information

under Japanese GAAP

For the fiscal year Ended March 31, 2016

 

 

 

 

 

 

 

 

 

Mitsubishi UFJ Financial Group, Inc.

     

LOGO         


Mitsubishi UFJ Financial Group, Inc.

[Contents]       

 

1. Financial Results

 

[ MUFG Consolidated ]*1[ BTMU and MUTB Combined ]*2*3*4

[ BTMU Consolidated ][ BTMU Non-consolidated ]

[ MUTB Consolidated ][ MUTB Non-consolidated ]

    1   

2. Average Interest Rate Spread

 

[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

[ BTMU and MUTB Combined ]

    7   

3. Notional Principal by the Remaining Life of the Interest Rate Swaps for Hedge-Accounting

 

[ MUFG Consolidated ][ BTMU Consolidated ]

[ MUTB Consolidated ]

    8   

4. Securities

 

[ MUFG Consolidated ]

[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

    9   

5. ROE

  [ MUFG Consolidated ]     12   

6. Risk-Adjusted Capital Ratio

 

[ MUFG Consolidated ][ BTMU Consolidated ]

[ MUTB Consolidated ]

[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

    13   

7. Risk-Monitored Loans

 

[ MUFG Consolidated ]

[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

[ MUTB Non-consolidated : Trust Account ]

    14   

8. Non Performing Loans Based on the Financial Reconstruction Law (the “FRL”)

 

[ BTMU and MUTB Combined including Trust Account ]

[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

[ MUTB Non-consolidated : Trust Account ]

    18   

9. Progress in Disposition of Problem Assets

 

[ BTMU Non-consolidated ]

[ MUTB Non-consolidated including Trust Account ]

    23   

10. Loans Classified by Type of Industry, Domestic Consumer Loans, Domestic Loans to Small/Medium-Sized Companies and Proprietors

 

[ BTMU and MUTB Combined including Trust Accounts ]

[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

[ MUTB Non-consolidated : Trust Accounts ]

    25   

11. Overseas Loans

  [ BTMU and MUTB Combined ]     29   

12. Loans and Deposits

 

[ BTMU and MUTB Combined ]

[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

    30   

13. Domestic Deposits

 

[ BTMU and MUTB Combined ]

[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

    31   

14. Status of Deferred Tax Assets

  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     32   

15. Retirement Benefits

 

[ MUFG Consolidated ]

[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

    34   

(References)

   

1. Exposure to “Securitized Products and Related Investments”

    37   

2. Financial Statements

  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     39   

 

(*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 millions of yen)  
     For the fiscal year ended     Increase
(Decrease)
(A) - (B)
 
     March 31, 2016
(A)
    March 31, 2015
(B)
   

Gross profits

     4,143,202        4,229,501        (86,298

Gross profits before credit costs for trust accounts

     4,143,202        4,229,030        (85,827

Net interest income

     2,113,564        2,181,637        (68,072

Trust fees

     117,046        111,916        5,130   

Credit costs for trust accounts (1)

     0        471        (470

Net fees and commissions

     1,320,554        1,308,604        11,950   

Net trading profits

     306,354        352,950        (46,595

Net other business profits

     285,682        274,393        11,288   

Net gains (losses) on debt securities

     132,928        115,162        17,766   

General and administrative expenses

     2,585,279        2,584,104        1,175   

Amortization of goodwill

     16,931        17,787        (856

Net business profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill

     1,574,853        1,662,713        (87,859

Net business profits before credit costs for trust accounts and provision for general allowance for credit losses

     1,557,922        1,644,925        (87,003

Provision for general allowance for credit losses (2)

     175,712        (86,849     262,561   

Net business profits*

     1,733,635        1,558,547        175,087   

Net non-recurring gains (losses)

     (194,148     154,454        (348,602

Credit costs (3)

     (491,503     (141,486     (350,016

Losses on loan write-offs

     (143,946     (144,845     899   

Provision for specific allowance for credit losses

     (305,131     17,700        (322,832

Other credit costs

     (42,425     (14,342     (28,083

Reversal of allowance for credit losses (4)

     —          —          —     

Reversal of reserve for contingent losses included in credit costs (5)

     —          1,504        (1,504

Gains on loans written-off (6)

     60,645        64,735        (4,089

Net gains (losses) on equity securities

     88,306        93,109        (4,802

Gains on sales of equity securities

     145,347        114,477        30,870   

Losses on sales of equity securities

     (31,656     (16,532     (15,124

Losses on write-down of equity securities

     (25,384     (4,836     (20,548

Profits (losses) from investments in affiliates

     230,415        159,637        70,778   

Other non-recurring gains (losses)

     (82,012     (23,045     (58,967
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     1,539,486        1,713,001        (173,515
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (40,717     (98,244     57,527   

Net gains (losses) on change in equity

     (36,013     (23,648     (12,365

Settlement package

     —          (37,097     37,097   

Income before income taxes and others

     1,498,769        1,614,757        (115,987

Income taxes-current

     424,814        421,941        2,873   

Income taxes-deferred

     35,389        45,845        (10,455

Total taxes

     460,204        467,786        (7,582

Profits

     1,038,565        1,146,970        (108,405

Profits attributable to non-controlling interests

     87,162        113,211        (26,048
  

 

 

   

 

 

   

 

 

 

Profits attributable to owners of parent

     951,402        1,033,759        (82,356
  

 

 

   

 

 

   

 

 

 

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)

     (255,145     (161,624     (93,520

Number of consolidated subsidiaries

     224        226        (2

Number of affiliated companies accounted for under the equity method

     65        62        3   

 

1


Mitsubishi UFJ Financial Group, Inc.

 

BTMU and MUTB Combined

 

     (in millions of yen)  
     For the fiscal year ended     Increase
(Decrease)
(A) - (B)
 
     March 31, 2016
(A)
    March 31, 2015
(B)
   

Gross profits

     2,395,985        2,482,560        (86,575

Gross profits before credit costs for trust accounts

     2,395,985        2,482,089        (86,104

Domestic gross profits

     1,403,459        1,373,910        29,549   

Net interest income

     785,955        794,076        (8,121

Trust fees

     90,917        86,728        4,188   

Credit costs for trust accounts (1)

     0        471        (470

Net fees and commissions

     388,072        411,579        (23,506

Net trading profits

     34,720        21,864        12,856   

Net other business profits

     103,793        59,660        44,133   

Net gains (losses) on debt securities

     93,105        47,521        45,584   

Non-domestic gross profits

     992,525        1,108,650        (116,124

Net interest income

     540,512        614,482        (73,970

Net fees and commissions

     214,689        200,104        14,584   

Net trading profits

     123,133        131,130        (7,997

Net other business profits

     114,191        162,931        (48,740

Net gains (losses) on debt securities

     29,423        62,193        (32,769

General and administrative expenses

     1,314,796        1,360,202        (45,406

Personnel expenses

     485,797        525,372        (39,575

Non-personnel expenses

     756,043        757,409        (1,365

Taxes

     72,955        77,421        (4,465

Net business profits before credit costs for trust accounts and provision for general allowance for credit losses

     1,081,189        1,121,886        (40,697

Provision for general allowance for credit losses (2)

     208,285        (96,146     304,432   

Net business profits

     1,289,474        1,026,211        263,263   

Net non-recurring gains (losses)

     (219,230     86,500        (305,730

Credit costs (3)

     (332,201     1,410        (333,612

Losses on loan write-offs

     (43,430     (40,366     (3,064

Provision for specific allowance for credit losses

     (248,863     56,970        (305,834

Other credit costs

     (39,907     (15,193     (24,714

Reversal of allowance for credit losses (4)

     —          —          —     

Reversal of reserve for contingent losses included in credit costs (5)

     36        4,259        (4,223

Gains on loans written-off (6)

     20,122        18,854        1,267   

Net gains (losses) on equity securities

     76,933        63,059        13,873   

Gains on sales of equity securities

     134,500        83,418        51,082   

Losses on sales of equity securities

     (32,994     (14,482     (18,511

Losses on write-down of equity securities

     (24,573     (5,875     (18,697

Other non-recurring gains (losses)

     15,879        (1,083     16,963   
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     1,070,243        1,112,711        (42,467
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     33,071        (51,038     84,109   

Net gains (losses) on disposition of fixed assets

     9,387        (5,014     14,401   

Losses on impairment of fixed assets

     (11,100     (8,926     (2,173

Gains on sales of equity securities of subsidiaries

     18,319        —          18,319   

Dividends from foreign subsidiary due to the organizational restructuring

     14,467        —          14,467   

Settlement package

     —          (37,097     37,097   

Income before income taxes

     1,103,314        1,061,672        41,642   

Income taxes-current

     314,662        332,121        (17,458

Income taxes-deferred

     42,603        17,015        25,588   

Total taxes

     357,266        349,137        8,129   
  

 

 

   

 

 

   

 

 

 

Net income

     746,048        712,535        33,512   
  

 

 

   

 

 

   

 

 

 

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)+(5)+(6)

     (103,757     (71,151     (32,606

 

2


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Consolidated

 

     (in millions of yen)  
     For the fiscal year ended     Increase
(Decrease)
(A) - (B)
 
     March 31, 2016
(A)
    March 31, 2015
(B)
   

Gross profits

     2,932,824        3,009,471        (76,646

Net interest income

     1,788,159        1,872,860        (84,701

Trust fees

     13,150        12,562        588   

Net fees and commissions

     717,796        732,803        (15,007

Net trading profits

     135,629        149,311        (13,682

Net other business profits

     278,088        241,932        36,155   

Net gains (losses) on debt securities

     116,010        119,275        (3,264

General and administrative expenses

     1,743,302        1,780,970        (37,668

Amortization of goodwill

     15,943        16,920        (976

Net business profits before provision for general allowance for credit losses and amortization of goodwill

     1,205,466        1,245,420        (39,954

Net business profits before provision for general allowance for credit losses

     1,189,522        1,228,500        (38,977

Provision for general allowance for credit losses (1)

     169,662        (83,180     252,843   

Net business profits*

     1,359,184        1,145,319        213,865   

Net non-recurring gains (losses)

     (275,483     75,880        (351,364

Credit costs (2)

     (413,323     (78,253     (335,069

Losses on loan write-offs

     (82,670     (90,946     8,276   

Provision for specific allowance for credit losses

     (288,056     26,712        (314,768

Other credit costs

     (42,597     (14,019     (28,577

Reversal of allowance for credit losses (3)

     —          —          —     

Reversal of reserve for contingent losses included in credit costs (4)

     —          1,039        (1,039

Gains on loans written-off (5)

     39,170        43,900        (4,730

Net gains (losses) on equity securities

     73,973        62,070        11,903   

Gains on sales of equity securities

     126,056        77,253        48,802   

Losses on sales of equity securities

     (28,831     (11,461     (17,369

Losses on write-down of equity securities

     (23,252     (3,722     (19,529

Profits (losses) from investments in affiliates

     25,000        24,691        308   

Other non-recurring gains (losses)

     (303     22,431        (22,735
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     1,083,701        1,221,200        (137,498
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     15,702        (68,299     84,002   

Net gains (losses) on disposition of fixed assets

     11,006        (1,276     12,283   

Losses on impairment of fixed assets

     (11,011     (4,249     (6,761

Net gains (losses) on sales of shares of subsidiaries

     15,595        (25,151     40,746   

Settlement package

     —          (37,097     37,097   

Income before income taxes and others

     1,099,404        1,152,900        (53,496

Income taxes-current

     322,969        327,545        (4,575

Income taxes-deferred

     27,237        19,690        7,547   

Total taxes

     350,207        347,236        2,971   

Profits

     749,196        805,663        (56,467

Profits attributable to non-controlling interests

     63,360        74,041        (10,680
  

 

 

   

 

 

   

 

 

 

Profits attributable to owners of parent

     685,835        731,622        (45,786
  

 

 

   

 

 

   

 

 

 

Note:

      

* Netbusiness profits = Net business profits of BTMU + 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)

     (204,490     (116,493     (87,997

Number of consolidated subsidiaries

     128        130        (2

Number of affiliated companies accounted for under the equity method

     58        58        —     

 

3


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

 

     (in millions of yen)  
     For the fiscal year ended     Increase
(Decrease)
(A) - (B)
 
     March 31, 2016
(A)
    March 31, 2015
(B)
   

Gross profits

     2,017,254        2,107,430        (90,175

Domestic gross profits

     1,091,206        1,097,286        (6,079

Net interest income

     701,264        711,957        (10,692

Net fees and commissions

     288,222        315,053        (26,831

Net trading profits

     (1,672     (5,700     4,027   

Net other business profits

     103,392        75,974        27,417   

Net gains (losses) on debt securities

     84,927        58,753        26,173   

Non-domestic gross profits

     926,048        1,010,144        (84,095

Net interest income

     461,266        524,537        (63,271

Net fees and commissions

     209,732        198,351        11,380   

Net trading profits

     138,509        133,322        5,187   

Net other business profits

     116,540        153,932        (37,391

Net gains (losses) on debt securities

     22,565        58,153        (35,588

General and administrative expenses

     1,129,145        1,175,990        (46,845

Personnel expenses

     415,730        455,664        (39,934

Non-personnel expenses

     648,506        651,529        (3,022

Amortization of goodwill

     293        298        (4

Taxes

     64,907        68,796        (3,888

Net business profits before provision for general allowance for credit losses and amortization of goodwill

     888,403        931,738        (43,334

Net business profits before provision for general allowance for credit losses

     888,109        931,439        (43,330

Provision for general allowance for credit losses (1)

     202,639        (92,159     294,799   

Net business profits

     1,090,749        839,280        251,469   

Net non-recurring gains (losses)

     (227,013     63,352        (290,365

Credit costs (2)

     (325,772     (136     (325,636

Losses on loan write-offs

     (43,410     (40,251     (3,158

Provision for specific allowance for credit losses

     (242,455     54,984        (297,440

Other credit costs

     (39,907     (14,870     (25,037

Reversal of allowance for credit losses (3)

     —          —          —     

Reversal of reserve for contingent losses included in credit costs (4)

     —          3,736        (3,736

Gains on loans written-off (5)

     19,661        17,847        1,814   

Net gains (losses) on equity securities

     67,816        49,000        18,816   

Gains on sales of equity securities

     117,940        64,752        53,188   

Losses on sales of equity securities

     (27,538     (10,316     (17,222

Losses on write-down of equity securities

     (22,585     (5,436     (17,149

Other non-recurring gains (losses)

     11,281        (7,094     18,376   
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     863,736        902,632        (38,896
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     20,966        (42,369     63,335   

Net gains (losses) on disposition of fixed assets

     10,188        (1,800     11,989   

Losses on impairment of fixed assets

     (9,539     (3,470     (6,068

Gains on sales of equity securities of subsidiaries

     18,319        —          18,319   

Settlement package

     —          (37,097     37,097   

Income before income taxes

     884,702        860,263        24,438   

Income taxes-current

     262,781        269,709        (6,928

Income taxes-deferred

     35,854        18,775        17,078   

Total taxes

     298,635        288,485        10,150   
  

 

 

   

 

 

   

 

 

 

Net income

     586,066        571,778        14,288   
  

 

 

   

 

 

   

 

 

 

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)+(5)

     (103,471     (70,712     (32,758

 

4


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Consolidated

 

     (in millions of yen)  
     For the fiscal year ended     Increase
(Decrease)
(A) - (B)
 
     March 31, 2016
(A)
    March 31, 2015
(B)
   

Gross profits

     480,237        460,643        19,593   

Gross profits before credit costs for trust accounts

     480,236        460,171        20,064   

Trust fees

     104,043        99,625        4,417   

Trust fees before credit costs for trust accounts

     104,042        99,154        4,888   

Money trusts fees (Jointly operated designated money trusts before credit costs for trust account)

     11,777        7,584        4,193   

Other trust fees

     92,264        91,570        694   

Credit costs for trust accounts (1)

     0        471        (470

Net interest income

     153,296        162,690        (9,394

Net fees and commissions

     196,693        174,179        22,514   

Net trading profits

     25,808        30,034        (4,226

Net other business profits

     395        (5,887     6,282   

Net gains (losses) on debt securities

     14,927        (7,192     22,120   

General and administrative expenses

     264,440        253,529        10,910   

Amortization of goodwill

     1,049        1,049        0   

Net business profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill

     216,846        207,691        9,154   

Net business profits before credit costs for trust accounts and provision for general allowance for credit losses

     215,796        206,642        9,154   

Provision for general allowance for credit losses (2)

     5,656        (4,024     9,681   

Net business profits*

     221,453        203,088        18,364   

Net non-recurring gains (losses)

     16,927        34,482        (17,555

Credit costs (3)

     (6,507     1,491        (7,999

Losses on loan write-offs

     (103     (158     55   

Provision for specific allowance for credit losses

     (6,406     1,972        (8,379

Other credit costs

     2        (323     325   

Reversal of allowance for credit losses (4)

     —          —          —     

Reversal of reserve for contingent losses included in credit costs (5)

     36        522        (486

Gains on loans written-off (6)

     500        1,049        (548

Net gains (losses) on equity securities

     9,130        15,627        (6,497

Gains on sales of equity securities

     16,573        20,279        (3,706

Losses on sales of equity securities

     (5,455     (4,166     (1,289

Losses on write-down of equity securities

     (1,987     (486     (1,501

Profits (losses) from investments in affiliates

     11,020        11,583        (563

Other non-recurring gains (losses)

     2,747        4,207        (1,459
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     238,380        237,570        809   
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (2,459     853        (3,312

Net gains (losses) on disposition of fixed assets

     (853     (3,324     2,470   

Losses on impairment of fixed assets

     (1,605     (5,466     3,860   

Gains on change in equity

     —          9,643        (9,643

Income before income taxes and others

     235,920        238,424        (2,503

Income taxes-current

     63,529        73,636        (10,107

Income taxes-deferred

     1,925        (3,796     5,721   

Total taxes

     65,454        69,840        (4,386

Profits

     170,466        168,583        1,882   

Profits attributable to non-controlling interests

     10,882        8,810        2,072   
  

 

 

   

 

 

   

 

 

 

Profits attributable to owners of parent

     159,583        159,773        (190
  

 

 

   

 

 

   

 

 

 

Note:

      

* Netbusiness profits = Net business profits of MUTB + 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)

     (314     (489     175   

Number of consolidated subsidiaries

     56        54        2   

Number of affiliated companies accounted for under the equity method

     12        12        —     

 

5


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

 

     (in millions of yen)  
     For the fiscal year ended     Increase
(Decrease)
(A) - (B)
 
     March 31, 2016
(A)
    March 31, 2015
(B)
   

Gross profits

     378,730        375,130        3,600   

Gross profits before credit costs for trust accounts

     378,730        374,659        4,071   

Domestic gross profits

     312,253        276,624        35,629   

Trust fees

     90,917        86,728        4,188   

Trust fees before credit costs for trust accounts

     90,917        86,257        4,659   

Money trusts fees (Jointly operated designated money trusts before credit costs for trust account)

     11,777        7,584        4,193   

Other trust fees

     79,139        78,673        466   

Credit costs for trust accounts (1)

     0        471        (470

Net interest income

     84,690        82,119        2,571   

Net fees and commissions

     99,849        96,525        3,324   

Net trading profits

     36,393        27,564        8,829   

Net other business profits

     401        (16,314     16,715   

Net gains (losses) on debt securities

     8,178        (11,232     19,410   

Non-domestic gross profits

     66,477        98,506        (32,028

Net interest income

     79,246        89,944        (10,698

Net fees and commissions

     4,956        1,753        3,203   

Net trading profits

     (15,376     (2,191     (13,184

Net other business profits

     (2,349     8,999        (11,348

Net gains (losses) on debt securities

     6,858        4,039        2,818   

General and administrative expenses

     185,651        184,212        1,438   

Personnel expenses

     70,066        69,708        358   

Non-personnel expenses

     107,536        105,879        1,657   

Taxes

     8,047        8,624        (577

Net business profits before credit costs for trust accounts and provision for general allowance for credit losses

     193,079        190,446        2,632   

Provision for general allowance for credit losses (2)

     5,645        (3,987     9,632   

Net business profits

     198,725        186,930        11,794   

Net non-recurring gains (losses)

     7,782        23,147        (15,365

Credit costs (3)

     (6,428     1,547        (7,976

Losses on loan write-offs

     (20     (115     94   

Provision for specific allowance for credit losses

     (6,408     1,985        (8,393

Other credit costs

     0        (323     323   

Reversal of allowance for credit losses (4)

     —          —          —     

Reversal of reserve for contingent losses included in credit costs (5)

     36        522        (486

Gains on loans written-off (6)

     460        1,007        (546

Net gains (losses) on equity securities

     9,117        14,059        (4,942

Gains on sales of equity securities

     16,559        18,665        (2,105

Losses on sales of equity securities

     (5,455     (4,166     (1,289

Losses on write-down of equity securities

     (1,987     (439     (1,547

Other non-recurring gains (losses)

     4,597        6,010        (1,412
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     206,507        210,078        (3,570
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     12,104        (8,669     20,774   

Net gains (losses) on disposition of fixed assets

     (801     (3,213     2,412   

Losses on impairment of fixed assets

     (1,561     (5,455     3,894   

Dividends from foreign subsidiary due to the organizational restructuring

     14,467        —          14,467   

Income before income taxes

     218,612        201,408        17,203   

Income taxes-current

     51,881        62,411        (10,530

Income taxes-deferred

     6,749        (1,760     8,509   

Total taxes

     58,630        60,651        (2,020
  

 

 

   

 

 

   

 

 

 

Net income

     159,981        140,757        19,224   
  

 

 

   

 

 

   

 

 

 

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)+(5)+(6)

     (286     (438     151   

 

6


Mitsubishi UFJ Financial Group, Inc.

 

2. Average Interest Rate Spread

BTMU Non-consolidated

 

     (percentage per annum)  
(Domestic business segment)    For the fiscal year
ended
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    For the fiscal year
ended
March 31, 2015
(B)
 

Total average interest rate on interest-earning assets (a)

     0.62        (0.03     0.65   

Average interest rate on loans and bills discounted (b)

     0.92        (0.09     1.02   

Average interest rate on securities

     0.75        0.17        0.57   

Total average interest rate on interest-bearing liabilities (c)
<including general and administrative expenses>

     0.67        (0.04     0.72   

Average interest rate on deposits and NCD (d)

     0.02        (0.00     0.03   

Average interest rate on other liabilities

     0.20        0.03        0.17   

Overall interest rate spread (a)-(c)

     (0.04     0.01        (0.06

Interest rate spread (b)-(d)

     0.90        (0.09     0.99   

(After excluding loans to the Japanese government and governmental organizations)

      

Average interest rate on loans and bills discounted (e)

     1.11        (0.08     1.20   

Interest rate spread (e)-(d)

     1.08        (0.07     1.16   

MUTB Non-consolidated

 

      
     (percentage per annum)  
(Domestic business segment)    For the fiscal year
ended
March 31, 2016
(A)
    Increase
      (Decrease)      
(A) - (B)
    For the fiscal year
ended
March 31, 2015
(B)
 

Total average interest rate on interest-earning assets (a)

     0.53        (0.01     0.54   

Average interest rate on loans and bills discounted (b)

     0.67        (0.08     0.75   

Average interest rate on securities

     0.74        0.17        0.56   

Total average interest rate on interest-bearing liabilities (c)

     0.17        0.00        0.16   

Average interest rate on deposits and NCD (d)

     0.12        (0.00     0.13   

Overall interest rate spread (a)-(c)

     0.36        (0.01     0.37   

Interest rate spread (b)-(d)

     0.54        (0.07     0.61   

(After excluding loans to the Japanese government and governmental organizations)

      

Average interest rate on loans and bills discounted (e)

     0.67        (0.08     0.75   

Interest rate spread (e)-(d)

     0.54        (0.07     0.61   

BTMU and MUTB Combined

 

      
     (percentage per annum)  
(Domestic business segment)    For the fiscal year
ended
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    For the fiscal year
ended
March 31, 2015
(B)
 

Average interest rate on loans and bills discounted (a)

     0.89        (0.09     0.98   

Average interest rate on deposits and NCD (b)

     0.04        (0.00     0.04   

Interest rate spread (a)-(b)

     0.85        (0.08     0.94   

(After excluding loans to the Japanese government and governmental organizations)

      

Average interest rate on loans and bills discounted (c)

     1.04        (0.08     1.12   

Interest rate spread (c)-(b)

     1.00        (0.07     1.07   

 

7


Mitsubishi UFJ Financial Group, Inc.

 

3. Notional Principal by the Remaining Life of the Interest Rate Swaps for Hedge-Accounting

MUFG Consolidated

 

     (in billions of yen)  
     As of March 31, 2016  
     within 1 year      1 year to 5 years      over 5 years      Total  

Receive-fix/pay-floater

     1,647.1         6,803.7         11,075.4         19,526.3   

Receive-floater/pay-fix

     584.9         3,879.5         6,385.8         10,850.3   

Receive-floater/pay-floater

     —           —           —           —     

Receive-fix/pay-fix

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     2,232.1         10,683.3         17,461.2         30,376.7   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

BTMU Consolidated

 

  

  
     (in billions of yen)  
     As of March 31, 2016  
     within 1 year      1 year to 5 years      over 5 years      Total  

Receive-fix/pay-floater

     903.6         5,354.2         10,225.4         16,483.3   

Receive-floater/pay-fix

     177.7         2,126.7         4,687.8         6,992.4   

Receive-floater/pay-floater

     —           —           —           —     

Receive-fix/pay-fix

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,081.4         7,481.0         14,913.3         23,475.8   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

MUTB Consolidated

 

  

  
     (in billions of yen)  
     As of March 31, 2016  
     within 1 year      1 year to 5 years      over 5 years      Total  

Receive-fix/pay-floater

     743.5         1,449.5         850.0         3,043.0   

Receive-floater/pay-fix

     384.1         1,667.6         1,667.1         3,718.9   

Receive-floater/pay-floater

     —           —           —           —     

Receive-fix/pay-fix

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,127.6         3,117.1         2,517.1         6,761.9   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

8


Mitsubishi UFJ Financial Group, Inc.

 

4. 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”.

Fair Value Information on Securities

 

     (in millions of yen)  
     As of March 31, 2016      As of March 31, 2015  
     Amount on
consolidated
balance sheet
     Differences     Gains      Losses      Amount on
consolidated
balance sheet
     Differences      Gains      Losses  

Debt securities being held to maturity

     3,886,239         64,518        79,584         15,066         4,133,677         53,728         59,081         5,352   

Domestic bonds

     1,101,107         58,008        58,008         —           1,126,212         14,556         16,091         1,535   

Government bonds

     1,101,107         58,008        58,008         —           1,126,212         14,556         16,091         1,535   

Municipal bonds

     —           —          —           —           —           —           —           —     

Corporate bonds

     —           —          —           —           —           —           —           —     

Other

     2,785,132         6,510        21,576         15,066         3,007,465         39,172         42,990         3,817   

Foreign bonds

     1,233,171         6,746        12,805         6,058         1,006,421         15,813         17,244         1,431   

Other

     1,551,961         (236     8,771         9,007         2,001,043         23,359         25,745         2,386   
     (in millions of yen)  
     As of March 31, 2016      As of March 31, 2015  
     Amount on
consolidated
balance sheet
     Differences     Gains      Losses      Amount on
consolidated
balance sheet
     Differences      Gains      Losses  

Other securities

     65,518,480         3,485,297        3,706,495         221,198         69,336,270         4,133,200         4,244,272         111,071   

Domestic equity securities

     4,873,212         2,205,424        2,295,767         90,342         5,721,393         2,930,019         2,969,586         39,566   

Domestic bonds

     30,322,492         718,247        721,722         3,475         36,520,219         326,376         331,539         5,163   

Government bonds

     27,255,998         631,901        632,132         231         34,084,434         273,479         274,856         1,377   

Municipal bonds

     449,330         11,539        11,623         84         188,316         5,374         5,441         67   

Corporate bonds

     2,617,163         74,806        77,966         3,159         2,247,468         47,522         51,241         3,718   

Other

     30,322,776         561,624        689,005         127,380         27,094,657         876,804         943,146         66,341   

Foreign equity securities

     149,076         23,820        35,445         11,624         191,401         58,466         59,040         574   

Foreign bonds

     26,650,433         510,987        544,870         33,883         22,564,990         597,340         623,146         25,805   

Other

     3,523,265         26,816        108,689         81,872         4,338,265         220,996         260,958         39,961   

Redemption schedule of other securities with maturities and debt securities being held to maturity

 

  

     (in millions of yen)  
     As of March 31, 2016      As of March 31, 2015  
     within
1 year
     1 year to
5 years
    5 years to
10 years
     over
10 years
     within
1 year
     1 year to
5 years
     5 years to
10 years
     over
10 years
 

Domestic bonds

     10,981,410         9,274,701        6,863,891         4,303,854         13,171,744         14,958,317         6,169,701         3,346,807   

Government bonds

     10,790,809         8,548,655        5,759,365         3,258,275         12,937,240         14,021,104         5,720,272         2,532,029   

Municipal bonds

     10,160         106,931        328,008         4,229         8,288         109,919         69,720         388   

Corporate bonds

     180,440         619,115        776,517         1,041,348         226,215         827,293         379,707         814,390   

Other

     3,449,249         10,424,437        9,930,271         6,671,410         3,205,730         8,992,502         8,998,103         6,001,088   

Foreign bonds

     3,377,182         9,871,390        8,424,741         6,192,264         2,897,339         8,048,236         7,581,013         5,023,170   

Other

     72,067         553,047        1,505,530         479,146         308,390         944,265         1,417,090         977,917   

Total

     14,430,659         19,699,139        16,794,162         10,975,265         16,377,474         23,950,819         15,167,804         9,347,895   

 

9


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”.

Fair Value Information on Securities

 

    (in millions of yen)  
    As of March 31, 2016     As of March 31, 2015  
    Amount on
balance sheet
    Differences     Gains     Losses     Amount on
balance sheet
    Differences     Gains     Losses  

Debt securities being held to maturity

    2,653,043        57,771        66,779        9,007        3,102,252        37,860        41,782        3,921   

Stocks of subsidiaries and affiliates

    843,460        (91,424     29,661        121,086        865,646        206,054        214,537        8,482   
    (in millions of yen)  
    As of March 31, 2016     As of March 31, 2015  
    Amount on
balance sheet
    Differences     Gains     Losses     Amount on
balance sheet
    Differences     Gains     Losses  

Other securities

    44,773,389        2,531,495        2,713,435        181,940        48,785,016        3,073,221        3,144,265        71,043   

Domestic equity securities

    3,943,763        1,661,719        1,751,653        89,934        4,673,946        2,291,397        2,329,749        38,351   

Domestic bonds

    23,353,550        619,996        621,020        1,024        29,967,153        275,064        277,934        2,870   

Other

    17,476,076        249,779        340,761        90,981        14,143,916        506,759        536,580        29,821   

Foreign equity securities

    142,546        18,227        29,916        11,688        178,531        53,595        53,975        380   

Foreign bonds

    15,024,229        279,857        285,357        5,500        10,872,292        352,571        357,787        5,215   

Other

    2,309,300        (48,305     25,487        73,792        3,093,093        100,591        124,817        24,225   

 

Redemption schedule of other securities with maturities and debt securities being held to maturity

 

  

    (in millions of yen)  
    As of March 31, 2016     As of March 31, 2015  
    within
1 year
    1 year to
5 years
    5 years to
10 years
    over
10 years
    within
1 year
    1 year to
5 years
    5 years to
10 years
    over
10 years
 

Domestic bonds

    9,503,563        5,596,113        5,325,107        4,029,848        12,326,240        10,215,947        5,198,489        3,327,684   

Government bonds

    9,377,044        4,996,212        4,581,169        3,029,462        12,140,028        9,488,185        4,809,644        2,515,940   

Municipal bonds

    10,160        106,842        292,183        329        8,288        109,795        69,720        348   

Corporate bonds

    116,358        493,058        451,754        1,000,056        177,923        617,966        319,124        811,396   

Other

    2,072,496        5,953,081        6,055,164        2,948,188        1,882,058        3,802,126        5,557,515        2,548,304   

Foreign bonds

    1,851,875        5,671,608        4,823,497        2,659,161        1,582,064        3,197,740        4,265,657        1,805,117   

Other

    220,621        281,472        1,231,667        289,026        299,994        604,385        1,291,857        743,186   

Total

    11,576,060        11,549,194        11,380,271        6,978,036        14,208,298        14,018,074        10,756,005        5,875,988   

 

10


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

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

Fair Value Information on Securities

 

     (in millions of yen)  
     As of March 31, 2016      As of March 31, 2015  
     Amount on
balance sheet
     Differences      Gains      Losses      Amount on
balance sheet
     Differences      Gains      Losses  

Debt securities being held to maturity

     —           —           —           —           24,978         54         54         —     

Stocks of subsidiaries and affiliates

     57,771         50,968         51,070         102         57,771         133,960         134,064         104   
     (in millions of yen)  
     As of March 31, 2016      As of March 31, 2015  
     Amount on
balance sheet
     Differences      Gains      Losses      Amount on
balance sheet
     Differences      Gains      Losses  

Other securities

     17,108,424         873,305         899,752         26,447         16,903,411         966,807         988,212         21,404   

Domestic equity securities

     974,012         470,438         484,778         14,340         1,081,815         556,050         563,430         7,380   

Domestic bonds

     7,013,586         98,263         100,843         2,580         6,479,441         50,320         52,709         2,389   

Other

     9,120,825         304,604         314,131         9,526         9,342,154         360,436         372,071         11,634   

Foreign equity securities

     51         26         26         0         36         24         24         —     

Foreign bonds

     8,367,901         228,667         235,989         7,322         8,455,745         243,361         244,759         1,397   

Other

     752,872         75,910         78,114         2,204         886,372         117,050         127,287         10,236   

 

Redemption schedule of other securities with maturities and debt securities being held to maturity

 

  

  
     (in millions of yen)  
     As of March 31, 2016      As of March 31, 2015  
     within
1 year
     1 year to
5 years
     5 years to
10 years
     over
10 years
     within
1 year
     1 year to
5 years
     5 years to
10 years
     over
10 years
 

Domestic bonds

     1,406,286         3,784,586         1,548,706         274,006         690,184         4,813,751         981,359         19,123   

Government bonds

     1,342,229         3,658,650         1,178,195         228,813         646,795         4,617,073         910,789         16,089   

Municipal bonds

     —           88         35,825         3,900         —           123         —           40   

Corporate bonds

     64,057         125,847         334,685         41,292         43,389         196,555         70,570         2,994   

Other

     809,569         3,407,239         3,072,071         1,445,720         633,296         4,060,046         2,863,534         1,276,777   

Foreign bonds

     774,774         3,145,573         3,021,564         1,425,989         632,681         3,739,713         2,822,844         1,260,506   

Other

     34,795         261,666         50,507         19,731         615         320,333         40,689         16,271   

Total

     2,215,856         7,191,826         4,620,778         1,719,726         1,323,481         8,873,798         3,844,893         1,295,900   

 

11


Mitsubishi UFJ Financial Group, Inc.

 

5. ROE

MUFG Consolidated

 

     (%)  
     For the fiscal year
ended
March 31, 2016
(A)
     Increase
(Decrease)
(A) - (B)
    For the fiscal year
ended
March 31, 2015
(B)
 

ROE

     7.63         (1.11     8.74   

Note:

ROE is computed as follows:

 

Profits attributable to owners of parent - 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

  

 

12


Mitsubishi UFJ Financial Group, Inc.

 

6. Risk-Adjusted Capital Ratio

 

MUFG Consolidated    (in billions of yen)  
     As of
March 31, 2016
Preliminary (A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
    As of
September 30, 2015
 

(1)    Total capital ratio (4)/(7)

     16.01     0.38     15.62     15.69

(2)    Tier 1 capital ratio (5)/(7)

     13.24     0.66     12.58     12.73

(3)    Common Equity Tier 1 capital ratio (6)/(7)

     11.63     0.53     11.09     11.23

(4)    Total capital

     17,941.8        389.4        17,552.3        17,562.8   

(5)    Tier 1 capital

     14,839.2        708.9        14,130.3        14,254.1   

(6)    Common Equity Tier 1 capital

     13,039.8        573.2        12,466.6        12,571.9   

(7)    Risk weighted assets

     112,064.3        (250.9     112,315.2        111,925.3   

(8)    Required Capital (7)×8%

     8,965.1        (20.0     8,985.2        8,954.0   
BTMU Consolidated    (in billions of yen)  
     As of
March 31, 2016
Preliminary (A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
    As of
September 30, 2015
 

(1)    Total capital ratio (4)/(7)

     15.66     0.20     15.45     15.30

(2)    Tier 1 capital ratio (5)/(7)

     12.71     0.50     12.21     12.15

(3)    Common Equity Tier 1 capital ratio (6)/(7)

     11.08     0.30     10.77     10.70

(4)    Total capital

     14,013.2        282.5        13,730.7        13,622.3   

(5)    Tier 1 capital

     11,375.2        526.3        10,848.8        10,821.3   

(6)    Common Equity Tier 1 capital

     9,917.7        345.8        9,571.8        9,530.0   

(7)    Risk weighted assets

     89,456.6        640.9        88,815.6        89,005.4   

(8)    Required Capital (7)×8%

     7,156.5        51.2        7,105.2        7,120.4   
MUTB Consolidated    (in billions of yen)  
     As of
March 31, 2016
Preliminary (A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
    As of
September 30, 2015
 

(1)    Total capital ratio (4)/(7)

     19.97     0.81     19.15     18.99

(2)    Tier 1 capital ratio (5)/(7)

     16.82     1.56     15.26     15.59

(3)    Common Equity Tier 1 capital ratio (6)/(7)

     16.01     1.30     14.70     15.08

(4)    Total capital

     2,371.0        34.3        2,336.7        2,280.1   

(5)    Tier 1 capital

     1,996.6        135.1        1,861.4        1,871.5   

(6)    Common Equity Tier 1 capital

     1,900.6        107.0        1,793.5        1,811.0   

(7)    Risk weighted assets

     11,868.3        (328.7     12,197.0        12,001.8   

(8)    Required Capital (7)×8%

     949.4        (26.2     975.7        960.1   
BTMU Non-consolidated    (in billions of yen)  
     As of
March 31, 2016
Preliminary (A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
    As of
September 30, 2015
 

(1)    Total capital ratio (4)/(7)

     17.51     0.47     17.03     16.79

(2)    Tier 1 capital ratio (5)/(7)

     14.25     0.87     13.38     13.28

(3)    Common Equity Tier 1 capital ratio (6)/(7)

     12.30     0.54     11.76     11.67

(4)    Total capital

     12,833.3        366.3        12,466.9        12,365.0   

(5)    Tier 1 capital

     10,446.7        654.8        9,791.8        9,777.6   

(6)    Common Equity Tier 1 capital

     9,019.4        408.2        8,611.2        8,598.2   

(7)    Risk weighted assets

     73,277.9        101.4        73,176.5        73,623.9   

(8)    Required Capital (7)×8%

     5,862.2        8.1        5,854.1        5,889.9   
MUTB Non-consolidated    (in billions of yen)  
     As of
March 31, 2016
Preliminary (A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
    As of
September 30, 2015
 

(1)    Total capital ratio (4)/(7)

     21.08     1.97     19.11     18.90

(2)    Tier 1 capital ratio (5)/(7)

     17.45     2.59     14.86     15.03

(3)    Common Equity Tier 1 capital ratio (6)/(7)

     16.58     2.27     14.31     14.53

(4)    Total capital

     2,358.7        39.7        2,318.9        2,239.7   

(5)    Tier 1 capital

     1,952.9        149.3        1,803.5        1,781.4   

(6)    Common Equity Tier 1 capital

     1,855.5        119.1        1,736.4        1,721.5   

(7)    Risk weighted assets

     11,188.1        (945.8     12,133.9        11,846.9   

(8)    Required Capital (7)×8%

     895.0        (75.6     970.7        947.7   

Note:

           

(1)    Risk-adjusted capital ratio of MUFG is computed in accordance with the Notification of the Financial Services Agency No.20, 2006. Risk-adjusted capital ratio of BTMU and MUTB are computed in accordance with the Notification of the Financial Services Agency No.19, 2006.

(2)    The risk-adjusted capital ratios and other related amounts in the tables above as of September 30, 2015 and prior dates reflect corrections of errors discovered in the risk weighting applied to certain assets, mostly residential mortgage loans, and certain other adjustments made under Basel I standards to obtain amounts that were used for floor adjustments in determining the amounts of risk-weighted assets under Basel III standards.

 

13


Mitsubishi UFJ Financial Group, Inc.

 

7. Risk-Monitored Loans

MUFG Consolidated

(1) Risk-Monitored Loans

 

    (in millions of yen)  
    As of
March 31, 2016
(A)
    % to total loans
and bills discounted
    As of
March 31, 2015
(B)
    % to total loans
and bills discounted
    Increase
(Decrease)
(A) - (B)
    % to total loans
and bills discounted
 

Loans to bankrupt borrowers

    54,913        0.04     23,586        0.02     31,326        0.02

Non-accrual delinquent loans

    1,110,576        0.97     811,478        0.74     299,098        0.23

Accruing loans contractually past due 3 months or more

    51,620        0.04     51,034        0.04     585        (0.00 )% 

Restructured loans

    438,767        0.38     653,839        0.59     (215,072     (0.21 )% 

Total risk monitored loans

    1,655,877        1.45     1,539,939        1.40     115,938        0.04

Total loans and bills discounted

    113,756,325          109,368,340          4,387,985     

Written-off

    397,076          478,168          (81,091  
(2) Allowance for Credit Losses            
    (in millions of yen)  
    As of
March 31, 2016
(A)
    % to total risk
monitored loans
    As of
March 31, 2015
(B)
    % to total risk
monitored loans
    Increase
(Decrease)
(A) - (B)
    % to total risk
monitored loans
 

Allowance for credit losses

    1,057,585        63.86     995,784        64.66     61,801        (0.79 )% 

General allowance for credit losses

    571,689          766,272          (194,583  

Specific allowance for credit losses

    485,577          228,297          257,280     

Allowance for credit to specific foreign borrowers

    318          1,214          (896  

(3) Classification of Risk-Monitored Loans

Classified by Geographic Area    (in millions of yen)  
     As of
March 31, 2016
(A)
     As of
March 31, 2015
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     1,177,149         1,242,070         (64,921

Overseas

     478,728         297,868         180,859   

Asia

     145,343         108,805         36,537   

Indonesia

     7,451         4,348         3,102   

Singapore

     18,414         1,082         17,332   

Thailand

     93,510         88,049         5,461   

China

     3,488         110         3,377   

Other

     22,477         15,214         7,263   

Americas

     199,432         100,784         98,648   

Europe, Middle East and Other

     133,952         88,279         45,672   
  

 

 

    

 

 

    

 

 

 

Total

     1,655,877         1,539,939         115,938   
  

 

 

    

 

 

    

 

 

 

 

Classified by Industry    (in millions of yen)  
     As of
March 31, 2016
(A)
     As of
March 31, 2015
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     1,177,149         1,242,070         (64,921

Manufacturing

     430,858         346,306         84,552   

Construction

     20,705         26,871         (6,165

Wholesale and retail

     164,429         211,910         (47,481

Finance and insurance

     1,466         5,681         (4,215

Real estate, goods rental and leasing

     90,620         121,771         (31,151

Services

     67,387         82,905         (15,517

Other industries

     32,828         44,908         (12,080

Consumer

     368,852         401,716         (32,863

Overseas

     478,728         297,868         180,859   

Financial institutions

     14,361         8,496         5,865   

Commercial and industrial

     319,456         120,954         198,502   

Other

     144,910         168,418         (23,508
  

 

 

    

 

 

    

 

 

 

Total

     1,655,877         1,539,939         115,938   
  

 

 

    

 

 

    

 

 

 

 

14


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

(1) Risk-Monitored Loans

 

    (in millions of yen)  
    As of
March 31, 2016
(A)
    % to total loans
and bills discounted
    As of
March 31, 2015
(B)
    % to total loans
and bills discounted
    Increase
(Decrease)
(A) - (B)
    % to total loans
and bills discounted
 

Loans to bankrupt borrowers

    46,057        0.05     14,913        0.01     31,143        0.03

Non-accrual delinquent loans

    851,173        0.98     606,554        0.73     244,618        0.24

Accruing loans contractually past due 3 months or more

    54,585        0.06     55,538        0.06     (953     (0.00 )% 

Restructured loans

    276,441        0.31     483,795        0.58     (207,354     (0.26 )% 

Total risk monitored loans

    1,228,257        1.41     1,160,802        1.40     67,454        0.01

Total loans and bills discounted

    86,691,727          82,740,384          3,951,342     

Written-off

    309,542          340,284          (30,741  

(2) Allowance for Credit Losses

 

  

    (in millions of yen)  
    As of
March 31, 2016
(A)
    % to total risk
monitored loans
    As of
March 31, 2015
(B)
    % to total risk
monitored loans
    Increase
(Decrease)
(A) - (B)
    % to total risk
monitored loans
 

Allowance for credit losses

    665,588        54.18     644,579        55.52     21,008        (1.33 )% 

General allowance for credit losses

    290,081          492,721          (202,639  

Specific allowance for credit losses

    375,188          150,643          224,544     

Allowance for credit to specific foreign borrowers

    318          1,214          (896  
(3) Classification of Risk-Monitored Loans             

 

Classified by Geographic Area    (in millions of yen)  
     As of
March 31, 2016
(A)
     As of
March 31, 2015
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     972,296         1,034,888         (62,592

Overseas

     255,960         125,913         130,047   

Asia

     44,823         16,510         28,313   

Indonesia

     2,979         1,397         1,582   

Singapore

     18,414         —           18,414   

Thailand

     —           —           —     

China

     3,380         —           3,380   

Other

     20,048         15,113         4,935   

Americas

     77,184         21,123         56,061   

Europe, Middle East and Other

     133,952         88,279         45,672   
  

 

 

    

 

 

    

 

 

 

Total

     1,228,257         1,160,802         67,454   
  

 

 

    

 

 

    

 

 

 

Classified by Industry

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
     As of
March 31, 2015
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     972,296         1,034,888         (62,592

Manufacturing

     405,969         326,239         79,730   

Construction

     20,003         26,136         (6,132

Wholesale and retail

     162,914         207,464         (44,549

Finance and insurance

     1,443         5,374         (3,931

Real estate

     79,324         106,276         (26,952

Goods rental and leasing

     2,720         4,914         (2,193

Services

     67,072         82,495         (15,422

Other industries

     32,500         44,024         (11,523

Consumer

     200,346         231,963         (31,617

Overseas

     255,960         125,913         130,047   

Financial institutions

     14,290         7,298         6,991   

Commercial and industrial

     181,531         40,586         140,945   

Other

     60,138         78,029         (17,890
  

 

 

    

 

 

    

 

 

 

Total

     1,228,257         1,160,802         67,454   
  

 

 

    

 

 

    

 

 

 

 

15


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Risk-Monitored Loans

 

    (in millions of yen)  
    As of
March 31, 2016
(A)
    % to total loans
and bills discounted
    As of
March 31, 2015
(B)
    % to total loans
and bills discounted
    Increase
(Decrease)
(A) - (B)
    % to total loans
and bills discounted
 

Loans to bankrupt borrowers

    526        0.00     476        0.00     50        0.00

Non-accrual delinquent loans

    32,576        0.24     23,093        0.18     9,482        0.06

Accruing loans contractually past due 3 months or more

    214        0.00     405        0.00     (190     (0.00 )% 

Restructured loans

    9,886        0.07     21,460        0.17     (11,573     (0.09 )% 

Total risk monitored loans

    43,203        0.32     45,434        0.36     (2,231     (0.03 )% 

Total loans and bills discounted

    13,192,538          12,609,827          582,711     

Written-off

    7,459          11,918          (4,459  

(2) Allowance for Credit Losses

 

  

    (in millions of yen)  
    As of
March 31, 2016
(A)
    % to total risk
monitored loans
    As of
March 31, 2015
(B)
    % to total risk
monitored loans
    Increase
(Decrease)
(A) - (B)
    % to total risk
monitored loans
 

Allowance for credit losses

    37,084        85.83     38,549        84.84     (1,464     0.99

General allowance for credit losses

    26,355          32,000          (5,645  

Specific allowance for credit losses

    10,729          6,548          4,180     

Allowance for credit to specific foreign borrowers

    0          0          (0  

(3) Classification of Risk-Monitored Loans

 

Classified by Geographic Area    (in millions of yen)  
     As of
March 31, 2016
(A)
     As of
March 31, 2015
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     43,181         44,340         (1,158

Overseas

     22         1,094         (1,072

Asia

     —           1,082         (1,082

Indonesia

     —           —           —     

Singapore

     —           1,082         (1,082

Thailand

     —           —           —     

China

     —           —           —     

Other

     —           —           —     

Americas

     22         12         9   

Europe, Middle East and Other

     —           —           —     
  

 

 

    

 

 

    

 

 

 

Total

     43,203         45,434         (2,231
  

 

 

    

 

 

    

 

 

 
Classified by Industry    (in millions of yen)  
     As of
March 31, 2016
(A)
     As of
March 31, 2015
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     43,181         44,340         (1,158

Manufacturing

     24,857         20,036         4,821   

Construction

     684         714         (30

Wholesale and retail

     1,353         4,254         (2,901

Finance and insurance

     —           282         (282

Real estate

     8,524         10,480         (1,955

Goods rental and leasing

     —           —           —     

Services

     296         385         (88

Other industries

     322         878         (556

Consumer

     7,143         7,308         (165

Overseas

     22         1,094         (1,072

Financial institutions

     —           1,082         (1,082

Commercial and industrial

     —           —           —     

Other

     22         12         9   
  

 

 

    

 

 

    

 

 

 

Total

     43,203         45,434         (2,231
  

 

 

    

 

 

    

 

 

 

 

16


MUTB Non-consolidated: Trust Account

“Trust Account” represents trust account with contracts indemnifying the principal amounts.

(1) Risk-Monitored Loans

 

    (in millions of yen)  
    As of
March 31, 2016
(A)
    % to total loans
and bills discounted
    As of
March 31, 2015
(B)
    % to total loans
and bills discounted
    Increase
(Decrease)
(A) - (B)
    % to total loans
and bills discounted
 

Loans to bankrupt borrowers

    11        0.04     3        0.01     7        0.03

Non-accrual delinquent loans

    0        0.00     0        0.00     (0     (0.00 )% 

Accruing loans contractually past due 3 months or more

    5        0.02     165        0.61     (159     (0.58 )% 

Restructured loans

    606        2.62     751        2.78     (145     (0.15 )% 

Total risk monitored loans

    623        2.69     921        3.41     (297     (0.71 )% 

Total loans and bills discounted

    23,111          27,008          (3,896  

(2) Allowance for Credit Losses

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
     As of
March 31, 2015
(B)
     Increase
(Decrease)
(A) - (B)
 

Allowance for bad debts

     69         81         (11
(3) Classification of Risk-Monitored Loans   

Classified by Industry

        
     (in millions of yen)  
     As of
March 31, 2016
(A)
     As of
March 31, 2015
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     623         921         (297

Manufacturing

     —           —           —     

Construction

     —           —           —     

Wholesale and retail

     —           —           —     

Finance and insurance

     —           —           —     

Real estate

     564         688         (123

Goods rental and leasing

     —           —           —     

Services

     —           —           —     

Other industries

     —           —           —     

Consumer

     59         232         (173
  

 

 

    

 

 

    

 

 

 

Total

     623         921         (297
  

 

 

    

 

 

    

 

 

 

 

17


Mitsubishi UFJ Financial Group, Inc.

 

8. Non Performing Loans Based on the Financial Reconstruction Law (the “FRL”)

BTMU and MUTB Combined including Trust Account

“Trust account” represents trust account with contracts indemnifying the principal amounts.

(1) Non Performing Loans

 

                 (in millions of yen)  
                 As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

         118,819        89,866        28,952   

Doubtful

         846,495        571,436        275,058   

Special Attention

         341,635        561,985        (220,350

Non Performing Loans (1)

         1,306,950        1,223,289        83,661   

Normal

         108,009,909        104,112,357        3,897,552   

Total

         109,316,859        105,335,646        3,981,213   

Non Performing Loans / Total

         1.19     1.16     0.03

(2) Status of Coverage of Non Performing Loans

 

  

 
                 (in millions of yen)  
                 As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

         1,096,492        940,856        155,636   

Allowance for credit losses

         461,495        321,940        139,555   

Collateral, guarantees, etc.

         634,997        618,916        16,081   

Coverage ratio (2) / (1)

         83.89     76.91     6.98

(3) Coverage Ratio

 

  

 
     (in millions of yen)  

Category

   Loan amount
(A)
    Allowance for
credit losses
(B)
    Covered by
collateral and/
or guarantees
(C)
    Coverage ratio for
unsecured portion
(B) / [(A) - (C)]
    Coverage ratio
[(B) + (C)] / (A)
 

Bankrupt or De facto Bankrupt

     118,819        17,327        101,491          100.00
     [89,866     [1,191     [88,674       [100.00 %] 

Doubtful

     846,495        355,601        348,378          83.16
     [571,436     [153,008     [300,448       [79.35 %] 

Special Attention

     341,635        88,566        185,127          80.11
     [561,985     [167,740     [229,792       [70.73 %] 

Total

     1,306,950        461,495        634,997          83.89
     [1,223,289     [321,940     [618,916       [76.91 %] 

Note:  The upper figures are as of March 31, 2016. The lower figures with brackets are as of March 31, 2015.

 

(4) Classified by Industry

 

     

  

 
                 (in millions of yen)  
                 As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)
(A) - (B)
 

Domestic

         1,043,076        1,091,554        (48,477

Manufacturing

         446,091        347,914        98,176   

Construction

         20,787        26,937        (6,150

Wholesale and retail

         172,559        216,734        (44,174

Finance and insurance

         2,777        7,279        (4,501

Real estate

         88,661        118,470        (29,809

Goods rental and leasing

         2,722        4,922        (2,199

Services

         67,852        83,500        (15,647

Other industries

         33,701        45,901        (12,200

Consumer

         207,921        239,892        (31,970

Overseas

         263,873        131,735        132,138   

Financial institutions

         14,290        8,380        5,909   

Commercial and industrial

         189,422        45,312        144,109   

Other

         60,160        78,041        (17,880

Total

         1,306,950        1,223,289        83,661   

 

18


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

(1) Non Performing Loans

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

     116,853        87,955        28,897   

Doubtful

     815,231        549,635        265,596   

Special Attention

     331,026        539,334        (208,307

Non Performing Loans (1)

     1,263,111        1,176,925        86,186   

Normal

     94,370,441        91,117,065        3,253,375   

Total

     95,633,552        92,293,991        3,339,561   

Non Performing Loans / Total

     1.32     1.27     0.04

(2) Status of Coverage of Non Performing Loans

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

     1,059,742        905,598        154,143   

Allowance for credit losses

     447,041        308,487        138,553   

Collateral, guarantees, etc.

     612,701        597,111        15,590   

Coverage ratio (2) / (1)

     83.89     76.94     6.95

(3) Coverage Ratio

 

     (in millions of yen)  

Category

   Loan amount
(A)
    Allowance for
credit losses
(B)
    Covered by
collateral and/
or guarantees
(C)
    Coverage ratio for
unsecured portion
(B) / [(A) - (C)]
    Coverage ratio
[(B) + (C)] / (A)
 

Bankrupt or De facto Bankrupt

     116,853        17,316        99,536        100.00     100.00
     [87,955     [1,176     [86,778     [100.00 %]      [100.00 %] 

Doubtful

     815,231        345,361        331,408        71.38     83.01
     [549,635     [147,035     [288,723     [56.35 %]      [79.28 %] 

Special Attention

     331,026        84,363        181,756        56.51     80.39
     [539,334     [160,274     [221,609     [50.44 %]      [70.80 %] 

Total

     1,263,111        447,041        612,701        68.73     83.89
     [1,176,925     [308,487     [597,111     [53.20 %]      [76.94 %] 

Note:  The upper figures are as of March 31, 2016. The lower figures with brackets are as of March 31, 2015.

     

 

(4) Classified by Industry

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
     As of
March 31, 2015
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     999,259         1,046,284         (47,025

Manufacturing

     421,233         327,878         93,355   

Construction

     20,103         26,223         (6,120

Wholesale and retail

     171,206         212,480         (41,273

Finance and insurance

     2,777         6,996         (4,218

Real estate

     79,572         107,302         (27,729

Goods rental and leasing

     2,722         4,922         (2,199

Services

     67,556         83,115         (15,558

Other industries

     33,379         45,023         (11,643

Consumer

     200,707         232,343         (31,635

Overseas

     263,851         130,640         133,211   

Financial institutions

     14,290         7,298         6,991   

Commercial and industrial

     189,422         45,312         144,109   

Other

     60,138         78,029         (17,890

Total

     1,263,111         1,176,925         86,186   

 

19


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Non Performing Loans

 

                 (in millions of yen)  
                 As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)

(A) -  (B)
 

Bankrupt or De facto Bankrupt

         1,954        1,898        55   

Doubtful

         31,159        21,678        9,481   

Special Attention

         10,101        21,865        (11,763

Non Performing Loans (1)

         43,215        45,442        (2,227

Normal

         13,616,979        12,969,204        647,775   

Total

         13,660,195        13,014,647        645,548   

Non Performing Loans / Total

         0.31     0.34     (0.03 )% 
(2) Status of Coverage of Non Performing Loans           
                 (in millions of yen)  
                 As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

         36,260        34,572        1,688   

Allowance for credit losses

         14,454        13,453        1,001   

Collateral, guarantees, etc.

         21,805        21,118        686   

Coverage ratio (2) / (1)

         83.90     76.07     7.82
(3) Coverage Ratio           
     (in millions of yen)  

Category

   Loan amount
(A)
    Allowance for
credit losses
(B)
    Covered by
collateral and/
or guarantees
(C)
    Coverage ratio for
unsecured portion
(B) / [(A) - (C)]
    Coverage ratio
[(B) + (C)] / (A)
 

Bankrupt or De facto Bankrupt

     1,954        10        1,943        100.00     100.00
     [1,898     [14     [1,883     [100.00 %]      [100.00 %] 

Doubtful

     31,159        10,239        16,879        71.70     87.03
     [21,678     [5,972     [11,623     [59.40 %]      [81.16 %] 

Special Attention

     10,101        4,203        2,982        59.05     71.14
     [21,865     [7,465     [7,611     [52.37 %]      [68.95 %] 

Total

     43,215        14,454        21,805        67.51     83.90
     [45,442     [13,453     [21,118     [55.30 %]      [76.07 %] 

Note:  The upper figures are as of March 31, 2016. The lower figures with brackets are as of March 31, 2015.

 

(4) Classified by Industry

 

  

  

                 (in millions of yen)  
                 As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)
(A) - (B)
 

Domestic

         43,193        44,348        (1,154

Manufacturing

         24,857        20,036        4,821   

Construction

         684        714        (30

Wholesale and retail

         1,353        4,254        (2,901

Finance and insurance

         —          282        (282

Real estate

         8,524        10,480        (1,955

Goods rental and leasing

         —          —          —     

Services

         296        385        (88

Other industries

         322        878        (556

Consumer

         7,155        7,316        (161

Overseas

         22        1,094        (1,072

Financial institutions

         —          1,082        (1,082

Commercial and industrial

         —          —          —     

Other

         22        12        9   

Total

         43,215        45,442        (2,227

 

20


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated: Trust Account

“Trust account” represents trust account with contracts indemnifying the principal amounts.

(1) Non Performing Loans

 

                 (in millions of yen)  
                 As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

         11        12        (0

Doubtful

         104        122        (18

Special Attention

         507        786        (278

Non Performing Loans (1)

         623        921        (297

Normal

         22,488        26,086        (3,598

Total

         23,111        27,008        (3,896

Non Performing Loans / Total

         2.69     3.41     (0.71 )% 

(2) Status of Coverage of Non Performing Loans

 

  

 
                 (in millions of yen)  
                 As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

         490        686        (195

Allowance for credit losses

         —          —          —     

Collateral, guarantees, etc.

         490        686        (195

Coverage ratio (2) / (1)

         78.65     74.50     4.15

(3) Coverage Ratio

 

          
     (in millions of yen)  

Category

   Loan amount
(A)
    Allowance for
credit losses
(B)
    Covered by
collateral and/
or guarantees
(C)
    Coverage ratio for
unsecured portion
(B) / [(A) - (C)]
    Coverage ratio
[(B) + (C)] / (A)
 

Bankrupt or De facto Bankrupt

     11               11          100.00
     [12     [—     [12       [100.00 %] 

Doubtful

     104               90          87.31
     [122     [—     [101       [83.05 %] 

Special Attention

     507               387          76.38
     [786     [—     [572       [72.76 %] 

Total

     623               490          78.65
     [921     [—     [686       [74.50 %] 

Note:  The upper figures are as of March 31, 2016. The lower figures with brackets are as of March 31, 2015.

     

 

(4) Classified by Industry

 

          
                 (in millions of yen)  
                 As of
March 31, 2016
(A)
    As of
March 31, 2015
(B)
    Increase
(Decrease)
(A) - (B)
 

Domestic

         623        921        (297

Manufacturing

         —          —          —     

Construction

         —          —          —     

Wholesale and retail

         —          —          —     

Finance and insurance

         —          —          —     

Real estate

         564        688        (123

Goods rental and leasing

         —          —          —     

Services

         —          —          —     

Other industries

         —          —          —     

Consumer

         59        232        (173

Total

         623        921        (297

 

21


Mitsubishi UFJ Financial Group, Inc.

 

Overview of Non-Performing Loans

BTMU and MUTB Combined

 

(in billions of yen)
Self-Assessment        

Coverage 

ratio for 

unsecured 

portion 

       

Non-Performing Loans 

Based on the “FRL” 

             Risk-Monitored Loans 

Category of
Borrowers

  Classification              
  Non-
Classification 
  Classification 
II
  Classification 
III
  Classification 
IV
             
                           
                 

Bankrupt
Borrowers

 

  [101.4]   [15.9]  

 

[1.3]

 

(*1)

     

 

100.00%

     

i) Bankrupt or

De facto Bankrupt

 

[118.8]

     

Loans to bankrupt borrowers

 

[46.5]

 

 

Substantially
Bankrupt
Borrowers

 

                   

Non-accrual

delinquent loans

 

[883.7]

 

Potentially
Bankrupt
Borrowers

 

  [348.8]   [497.5]           71.39%      

ii) Doubtful

 

[846.3]

     
               

Borrowers
Requiring
Caution
(Special
Attention
Borrowers)

 

  [341.1]           56.63%      

iii) Special Attention

 

[341.1]

     

Accruing loans contractually past due

3 months or more

 

[54.7]

 

                         

 

Restructured loans

 

[286.3]

 

           
                             
           

Borrowers
Requiring
Caution
(Other
Borrowers)

 

                 

iv) Normal

 

[107,987.4]

 

 

         

 

Normal
Borrowers

 

                         
   
                Non-Performing Loans Based on the “FRL”       Risk-Monitored Loans
                i) + ii) + iii)      
                1,306.3       1,271.4
                Total      
                i) + ii) + iii) + iv)      
                109,293.7      

 

(*1) “Customers’ liabilities for acceptances and guarantees” in Classification IV are fully reserved.

 

22


Mitsubishi UFJ Financial Group, Inc.

 

9. Progress in Disposition of Problem Assets

BTMU Non-consolidated

(1) Bankrupt or De facto Bankrupt and Doubtful Assets Based on the “FRL”

 

     (in millions of yen)  
     As of
March 31, 2013
     As of
March 31, 2014
     As of
March 31, 2015
(A)
     As of
March 31, 2016
(B)
     (B) - (A)  

Assets newly categorized during fiscal 2012

     340,637         204,404         94,261         58,168         (36,092

Assets newly categorized during fiscal 2013

        195,312         121,427         86,518         (34,909

Assets newly categorized during fiscal 2014

           98,674         61,087         (37,587

Assets newly categorized during fiscal 2015

              500,907      

(2) Progress in Disposition of Problem Assets

 

     (in millions of yen)  
     For the fiscal year ended March 31, 2016  
            Bankrupt or
De facto Bankrupt
     Doubtful  

Liquidation

     6,457         

Reconstructive treatment

     4,803         

Upgrade due to reconstructive treatment

     —           

Loan sold to secondary market

     3,126         

Write-offs

     24,847         

Others

     167,178         

Collection / Repayment

     87,768         

Upgrade

     79,410         
  

 

 

    

 

 

    

 

 

 

Total

     206,413         30,263         176,149   
  

 

 

    

 

 

    

 

 

 

Amount in process for disposition

     109,143         

 

Note: The process for disposition consists of legal liquidation, quasi-legal liquidation, company splits to good companies and bad companies, partial direct write-offs of retail exposure to individuals and small/medium-sized companies, and trusts to The Resolution and Collection Corporation mainly for the purpose of revitalization of companies, which are scheduled to be off-balanced before their maturities.

 

23


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated including Trust Account

“Trust account” represents trust account with contracts indemnifying the principal amounts.

(1) Bankrupt or De facto Bankrupt and Doubtful Assets Based on the “FRL”

 

     (in millions of yen)  
     As of
March 31, 2013
     As of
March 31, 2014
     As of
March 31, 2015
(A)
     As of
March 31, 2016
(B)
     (B) - (A)  

Assets newly categorized during fiscal 2012

     15,711         8,784         1,845         1,367         (478

Assets newly categorized during fiscal 2013

        6,315         3,069         2,510         (558

Assets newly categorized during fiscal 2014

           7,495         1,730         (5,764

Assets newly categorized during fiscal 2015

              18,743      

(2) Progress in Disposition of Problem Assets

 

     (in millions of yen)  
     For the fiscal year ended March 31, 2016  
            Bankrupt or
De facto  Bankrupt
     Doubtful  

Liquidation

     —           

Reconstructive treatment

     —           

Upgrade due to reconstructive treatment

     —           

Loan sold to secondary market

     —           

Write-offs

     3,048         

Others

     7,165         

Collection / Repayment

     4,685         

Upgrade

     2,479         
  

 

 

    

 

 

    

 

 

 

Total

     10,213         381         9,832   
  

 

 

    

 

 

    

 

 

 

Amount in process for disposition

     2,059         

 

Note: The process for disposition consists of legal liquidation, quasi-legal liquidation, company splits to good companies and bad companies, partial direct write-offs of retail exposure to individuals and small/medium-sized companies, and trusts to The Resolution and Collection Corporation mainly for the purpose of revitalization of companies, which are scheduled to be off-balanced before their maturities.

 

24


Mitsubishi UFJ Financial Group, Inc.

 

10. Loans Classified by Type of Industry, Domestic Consumer Loans, Domestic Loans to Small/Medium-Sized Companies and Proprietors

BTMU and MUTB Combined including Trust Accounts

(1) Loans Classified by Type of Industry

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Domestic offices (excluding loans booked at offshore markets)

     72,689,196        3,254,176        69,435,019   

Manufacturing

     10,807,764        650,956        10,156,808   

Agriculture, forestry, fishery, mining, quarrying of stone and gravel

     159,458        (4,645     164,103   

Construction

     820,597        (14,466     835,063   

Utilities

     1,579,251        (120,297     1,699,548   

Communication and information services

     1,284,429        2,500        1,281,929   

Transport and postal activities

     2,188,923        18,582        2,170,341   

Wholesale and retail

     6,442,059        (188,714     6,630,773   

Finance and insurance

     8,478,327        377,402        8,100,925   

Real estate

     8,711,840        185,397        8,526,443   

Goods rental and leasing

     1,863,049        63,625        1,799,424   

Services

     2,516,767        (139,554     2,656,321   

Municipal government

     606,393        (51,023     657,416   

Other industries (including loans to the Japanese government)

     27,230,325        2,474,416        24,755,909   

Overseas offices and loans booked at offshore markets

     27,345,641        1,318,072        26,027,568   
  

 

 

   

 

 

   

 

 

 

Total

     100,034,837        4,572,248        95,462,588   
  

 

 

   

 

 

   

 

 

 

 

(2) Domestic Consumer Loans

 

      
     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Total domestic consumer loans

     16,366,131        (282,775     16,648,906   

Housing loans

     15,570,786        (308,333     15,879,119   

Residential purpose

     13,342,333        (143,934     13,486,267   

Other

     795,344        25,557        769,786   

 

(3) Domestic Loans to Small/Medium-Sized Companies and Proprietors

 

      
     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Outstanding amount

     39,563,061        784,881        38,778,180   

% to total domestic loans

     54.42     (1.42 )%      55.84

 

25


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

(1) Loans Classified by Type of Industry

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Domestic offices (excluding loans booked at offshore markets)

     61,736,714        2,873,758        58,862,955   

Manufacturing

     8,770,123        714,590        8,055,533   

Agriculture, forestry, fishery, mining, quarrying of stone and gravel

     155,584        (4,140     159,724   

Construction

     716,043        (11,643     727,686   

Utilities

     1,215,592        (60,920     1,276,512   

Communication and information services

     1,054,721        (2,185     1,056,906   

Transport and postal activities

     1,594,679        56,221        1,538,458   

Wholesale and retail

     5,530,552        (132,880     5,663,432   

Finance and insurance

     6,163,474        165,802        5,997,672   

Real estate

     6,896,709        179,664        6,717,045   

Goods rental and leasing

     1,163,660        (16,842     1,180,502   

Services

     2,371,478        (110,097     2,481,575   

Municipal government

     597,378        (48,448     645,826   

Other industries (including loans to the Japanese government)

     25,506,721        2,144,637        23,362,084   

Overseas offices and loans booked at offshore markets

     24,955,012        1,077,584        23,877,428   
  

 

 

   

 

 

   

 

 

 

Total

     86,691,727        3,951,342        82,740,384   
  

 

 

   

 

 

   

 

 

 

 

(2) Domestic Consumer Loans

 

  

     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Total domestic consumer loans

     14,989,776        (328,815     15,318,592   

Housing loans

     14,199,887        (355,518     14,555,405   

Residential purpose

     12,139,077        (214,012     12,353,090   

Other

     789,889        26,702        763,187   

 

(3) Domestic Loans to Small/Medium-Sized Companies and Proprietors

 

  

     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Outstanding amount

     33,908,894        421,775        33,487,119   

% to total domestic loans

     54.92     (1.96 )%      56.88

 

26


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Loans Classified by Type of Industry

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Domestic offices (excluding loans booked at offshore markets)

     10,801,910        342,223        10,459,686   

Manufacturing

     2,037,641        (63,634     2,101,275   

Agriculture, forestry, fishery, mining, quarrying of stone and gravel

     3,874        (505     4,379   

Construction

     104,554        (2,823     107,377   

Utilities

     363,659        (59,377     423,036   

Communication and information services

     229,708        4,685        225,023   

Transport and postal activities

     594,244        (34,081     628,325   

Wholesale and retail

     911,507        (55,834     967,341   

Finance and insurance

     2,307,943        204,690        2,103,253   

Real estate

     1,806,903        7,418        1,799,485   

Goods rental and leasing

     699,389        80,467        618,922   

Services

     145,284        (29,456     174,740   

Municipal government

     4,168        (2,017     6,185   

Other industries (including loans to the Japanese government)

     1,593,025        292,691        1,300,334   

Overseas offices and loans booked at offshore markets

     2,390,628        240,487        2,150,140   
  

 

 

   

 

 

   

 

 

 

Total

     13,192,538        582,711        12,609,827   
  

 

 

   

 

 

   

 

 

 

(2) Domestic Consumer Loans

 

      
     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Total domestic consumer loans

     1,366,478        47,581        1,318,897   

Housing loans

     1,361,100        48,677        1,312,423   

Residential purpose

     1,194,177        71,330        1,122,847   

Other

     5,377        (1,096     6,474   

(3) Domestic Loans to Small/Medium-Sized Companies and Proprietors

 

      
     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Outstanding amount

     5,515,353        327,704        5,187,649   

% to total domestic loans

     51.05     1.46     49.59

 

27


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated: Trust Accounts

(1) Loans Classified by Type of Industry

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Domestic offices (excluding loans booked at offshore markets)

     150,571        38,194        112,376   

Manufacturing

     —          —          —     

Agriculture, forestry, fishery, mining, quarrying of stone and gravel

     —          —          —     

Construction

     —          —          —     

Utilities

     —          —          —     

Communication and information services

     —          —          —     

Transport and postal activities

     —          (3,558     3,558   

Wholesale and retail

     —          —          —     

Finance and insurance

     6,910        6,910        —     

Real estate

     8,228        (1,685     9,913   

Goods rental and leasing

     —          —          —     

Services

     5        (1     6   

Municipal government

     4,847        (558     5,405   

Other industries (including loans to the Japanese government)

     130,579        37,088        93,491   

Overseas offices and loans booked at offshore markets

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Total

     150,571        38,194        112,376   
  

 

 

   

 

 

   

 

 

 

 

(2) Domestic Consumer Loans

 

      
     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Total domestic consumer loans

     9,875        (1,540     11,415   

Housing loans

     9,798        (1,491     11,290   

Residential purpose

     9,078        (1,251     10,329   

Other

     76        (48     125   

 

(3) Domestic Loans to Small/Medium-Sized Companies and Proprietors

 

      
     (in millions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Outstanding amount

     138,814        35,402        103,412   

% to total domestic loans

     92.19     0.16     92.02

 

28


Mitsubishi UFJ Financial Group, Inc.

 

11. Overseas Loans

BTMU and MUTB Combined

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
     Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Asia

     7,202,239         (339,072     7,541,312   

Thailand

     241,969         (2,462     244,432   

Indonesia

     851,537         (77,598     929,135   

Malaysia

     540,576         66,508        474,067   

Philippines

     186,628         (28,825     215,453   

South Korea

     531,996         3,491        528,505   

Singapore

     1,242,161         (178,613     1,420,775   

Hong Kong

     2,106,366         (2,196     2,108,563   

China

     177,953         (4,735     182,688   

Taiwan

     377,664         25,737        351,926   

Others

     945,386         (140,377     1,085,763   

Latin America

     4,316,864         440,670        3,876,193   

Argentina

     25,784         21,784        4,000   

Brazil

     647,854         15,473        632,381   

Mexico

     425,305         11,877        413,427   

Caribbean countries

     2,735,182         403,326        2,331,856   

Others

     482,736         (11,791     494,528   

North America

     7,810,405         579,939        7,230,466   

United States of America

     7,548,706         642,247        6,906,459   

Canada

     261,699         (62,307     324,007   

Western Europe

     5,485,582         560,620        4,924,962   

United Kingdom

     2,169,523         178,932        1,990,590   

Germany

     534,650         77,476        457,174   

France

     460,233         127,873        332,359   

Netherlands

     730,950         18,363        712,586   

Spain

     176,673         23,309        153,363   

Italy

     208,807         1,167        207,639   

Others

     1,204,744         133,497        1,071,247   

Eastern Europe

     229,974         (119,336     349,311   

Others

     4,412,796         537,070        3,875,726   
  

 

 

    

 

 

   

 

 

 

Total

     29,457,864         1,659,891        27,797,972   
  

 

 

    

 

 

   

 

 

 

 

Note: In addition to the (non-consolidated basis) loan balance stated above, six major overseas subsidiaries have the following loan balances in the consolidated financial statements.
     MUFG Americas Holdings Corporation: ¥9,258,677 million (a 108,486 million yen increase as compared with March 31, 2015.)
     Bank of Ayudhya Public Company Limited: ¥3,468,308 million (a 103,929 million yen decrease as compared with March 31, 2015.)
     Bank of Tokyo-Mitsubishi UFJ (China), Ltd.: ¥1,481,236 million (a 138,083 million yen decrease as compared with March 31, 2015.)
     Bank of Tokyo-Mitsubishi UFJ (Holland) N.V.: ¥599,028 million (a 75,165 million yen decrease as compared with March 31, 2015.)
     Bank of Tokyo-Mitsubishi UFJ (Canada): ¥422,646 million (a 24,984 million yen increase as compared with March 31, 2015.)
     Bank of Tokyo-Mitsubishi UFJ (Malaysia): ¥469,951 million (a 209,409 million yen increase as compared with March 31, 2015.)

 

29


Mitsubishi UFJ Financial Group, Inc.

 

12. Loans and Deposits

BTMU and MUTB Combined

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
     Increase
(Decrease)
(A) - (B)
     As of
March 31, 2015
(B)
 

Deposits (ending balance)

     145,331,997         7,999,677         137,332,320   

Deposits (average balance)

     138,046,126         6,039,226         132,006,899   

Loans (ending balance)

     99,884,265         4,534,054         95,350,211   

Loans (average balance)

     97,177,782         2,383,495         94,794,286   
BTMU Non-consolidated   
     (in millions of yen)  
     As of
March 31, 2016
(A)
     Increase
(Decrease)
(A) - (B)
     As of
March 31, 2015
(B)
 

Deposits (ending balance)

     131,986,582         7,395,672         124,590,909   

Deposits (average balance)

     125,267,973         5,886,746         119,381,226   

Loans (ending balance)

     86,691,727         3,951,342         82,740,384   

Loans (average balance)

     84,450,867         1,751,429         82,699,437   
MUTB Non-consolidated   
     (in millions of yen)  
     As of
March 31, 2016
(A)
     Increase
(Decrease)
(A) - (B)
     As of
March 31, 2015
(B)
 

Deposits (ending balance)

     13,345,415         604,005         12,741,410   

Deposits (average balance)

     12,778,152         152,480         12,625,672   

Loans (ending balance)

     13,192,538         582,711         12,609,827   

Loans (average balance)

     12,726,915         632,065         12,094,849   

 

30


Mitsubishi UFJ Financial Group, Inc.

 

13. Domestic Deposits

BTMU and MUTB Combined

 

     (in millions of yen)  
     As of
March 31, 2016
(A)
     Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Individuals

     71,068,636         653,445        70,415,191   

Corporations and others

     52,782,310         5,333,164        47,449,145   

Domestic deposits

     123,850,947         5,986,610        117,864,337   

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

     

BTMU Non-consolidated   
     (in millions of yen)  
     As of
March 31, 2016
(A)
     Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Individuals

     63,158,639         964,602        62,194,037   

Corporations and others

     48,752,644         4,487,903        44,264,741   

Domestic deposits

     111,911,283         5,452,505        106,458,778   

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

     

MUTB Non-consolidated   
     (in millions of yen)  
     As of
March 31, 2016
(A)
     Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Individuals

     7,909,997         (311,156     8,221,154   

Corporations and others

     4,029,666         845,261        3,184,404   

Domestic deposits

     11,939,663         534,104        11,405,559   

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

     

 

31


Mitsubishi UFJ Financial Group, Inc.

 

14. Status of Deferred Tax Assets

BTMU Non-consolidated

(1) Tax Effects of the Items Comprising Net Deferred Tax Assets

 

     (in billions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Deferred tax assets

     526.8        (44.3     571.1   

Allowance for credit losses

     267.8        (13.3     281.1   

Write-down on investment securities

     117.5        21.4        96.0   

Unrealized losses on other securities

     19.2        5.9        13.3   

Reserve for retirement benefits

     98.7        (6.5     105.3   

Other

     184.1        (21.7     205.8   

Valuation allowance

     (160.6     (30.1     (130.5

Deferred tax liabilities

     1,094.7        (61.7     1,156.5   

Unrealized gains on other securities

     756.3        (168.9     925.2   

Net deferred gains on hedges

     187.4        112.8        74.5   

Revaluation gains on securities upon merger

     62.0        (7.5     69.6   

Gains on securities contributed to employees’ retirement benefits trust

     49.8        (2.8     52.6   

Other

     39.0        4.7        34.3   

Net deferred tax assets

     (567.8     17.4        (585.3

(2) Net business profits before provision for general allowance for credit losses and Taxable Income

 

     (in billions of yen)  
     FY2010       FY2011         FY2012         FY2013         FY2014         FY2015    

Net business profits before provision for general allowance for credit losses

     1,006.5        1,022.8        1,001.5        855.9        931.4        888.1   

Total credit costs

     (166.1     (125.3     (56.6     17.0        (70.7     (103.4

Income before income taxes

     674.4        739.5        877.4        984.7        860.2        884.7   

Reconciliation to taxable income

     (24.0     (305.1     (561.4     (336.2     (12.6     (107.3

Taxable income

     650.3        434.3        316.0        648.5        847.5        777.3   

(3) Classification Based on Prior Year Operating Results as Provided in the JICPA Audit Committee Report No.66

We are classified as “2” because we are considered to be a company showing stable financial performance.

 

32


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Tax Effects of the Items Comprising Net Deferred Tax Assets

 

     (in billions of yen)  
     As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Deferred tax assets

     61.1        (2.4     63.5   

Deferred losses on hedging instruments

     29.8        2.5        27.2   

Gains on securities related to employees’ retirement benefits trust

     14.8        0.4        14.3   

Allowance for credit losses

     12.4        (2.0     14.5   

Write-down on investment securities

     10.5        0.0        10.4   

Other

     31.0        (3.6     34.7   

Valuation allowance

     (37.5     0.2        (37.7

Deferred tax liabilities

     315.4        (37.7     353.1   

Unrealized gains on other securities

     259.8        (41.6     301.4   

Reserve for retirement benefits

     44.0        5.1        38.9   

Other

     11.5        (1.2     12.7   

Net deferred tax assets

     (254.3     35.3        (289.6

(2) Net business profits before credit costs for trust accounts and provision for general allowance for credit losses and Taxable Income

 

     (in billions of yen)  
       FY2010         FY2011         FY2012         FY2013         FY2014         FY2015    

Net business profits before credit costs for trust accounts and provision for general allowance for credit losses

     150.4        148.1        162.2        162.9        190.4        193.0   

Total credit costs

     (8.0     (9.2     (8.6     18.0        (0.4     (0.2

Income before income taxes

     101.9        113.5        173.5        184.4        201.4        218.6   

Reconciliation to taxable income

     (80.1     (30.2     (84.9     (94.3     (40.4     (69.5

Taxable income

     21.7        83.3        88.6        90.1        160.9        149.0   

(3) Classification Based on Prior Year Operating Results as Provided in the JICPA Audit Committee Report No.66

We are classified as “2” because we are considered to be a company showing stable financial performance.

 

33


Mitsubishi UFJ Financial Group, Inc.

 

15. Retirement Benefits

MUFG Consolidated

(1) Benefit obligation

 

         (in millions of yen)  
         As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Projected benefit obligation (reserve type)

   (A)     2,342,984        23,319        2,319,665   

Projected benefit obligation (non-reserve type)

   (B)     49,370        250        49,120   

Fair value of plan assets

   (C)     (2,707,520     103,905        (2,811,425

Net amount recorded on the Consolidated Balance Sheet

   (A) + (B) - (C)     (315,164     127,475        (442,640

Net defined benefit liability

       62,791        670        62,121   

Net defined benefit asset

       (377,955     126,805        (504,761

 

(2) Net periodic cost of retirement benefits

 

        
         (in millions of yen)  
         For the fiscal year
ended
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    For the fiscal year
ended
March 31, 2015
(B)
 

Net periodic cost of retirement benefits regarding defined benefit pension plans

       29,677        (18,248     47,925   

Service cost

       62,866        7,389        55,476   

Interest cost

       36,497        (3,612     40,110   

Expected return on plan assets

       (92,559     (6,679     (85,879

Amortization of unrecognized prior service cost

       (8,916     (89     (8,827

Amortization of unrecognized net actuarial loss

       24,353        (12,490     36,844   

Other

       7,436        (2,766     10,202   

(3) Assumptions used in calculation of projected benefit obligation

 

     As of March 31, 2016  

Discount rates

     Domestic consolidated subsidiaries         (0.05)% ~ 0.83%   
     Overseas consolidated subsidiaries         2.40% ~ 13.10%   

Expected return

     Domestic consolidated subsidiaries         0.35% ~ 4.10%   
     Overseas consolidated subsidiaries         2.40% ~ 13.10%   

 

34


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

(1) Benefit obligation

 

         (in millions of yen)  
         As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2015
(B)
 

Projected benefit obligation

 

(A)

     1,491,216        4,768        1,486,447   

Discount rates

       0.5% ~ 0.7       0.6% ~ 1.0

Fair value of plan assets

 

(B)

     1,619,644        (64,085     1,683,730   

Prepaid pension cost

 

(C)

     258,110        32,426        225,683   

Reserve for retirement benefits

 

(D)

     8,510        1,557        6,953   

Total amount unrecognized

 

(A) - (B) + (C) - (D)

     121,170        99,723        21,447   

Unrecognized net actuarial loss

       131,576        95,922        35,653   

Unrecognized prior service cost

       (10,405     3,800        (14,205
(2) Net periodic cost         
         (in millions of yen)  
         For the fiscal  year
ended
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    For the fiscal  year
ended
March 31, 2015
(B)
 

Net periodic cost of retirement benefits

       33,043        (8,485     41,529   

Service cost

       34,184        4,452        29,731   

Interest cost

       15,362        (2,771     18,134   

Expected return on plan assets

       (35,368     (1,616     (33,751

Amortization of unrecognized prior service cost

       (3,740     479        (4,220

Amortization of unrecognized net actuarial loss

       12,315        (8,966     21,282   

Other

       10,290        (63     10,354   

 

35


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Benefit obligation

 

          (in millions of yen)  
          As of
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31,  2015
(B)
 

Projected benefit obligation

   (A)      341,625        21,761        319,864   

Discount rates

        0.5% ~ 0.7       0.8% ~ 1.1

Fair value of plan assets

   (B)      546,624        (46,007     592,631   

Prepaid pension cost

   (C)      262,799        23,681        239,117   

Reserve for retirement benefits

   (D)      —          —          —     

Total amount unrecognized

   (A) - (B) + (C) - (D)      57,800        91,450        (33,649

Unrecognized net actuarial loss

        55,460        83,681        (28,220

Unrecognized prior service cost

        2,340        7,768        (5,428

(2) Net periodic cost

         
          (in millions of yen)  
          For the fiscal  year
ended
March 31, 2016
(A)
    Increase
(Decrease)
(A) - (B)
    For the fiscal  year
ended
March 31, 2015
(B)
 

Net periodic cost of retirement benefits

        (15,586     (7,151     (8,434

Service cost

        6,375        777        5,597   

Interest cost

        3,309        (744     4,053   

Expected return on plan assets

        (24,102     (2,419     (21,683

Amortization of unrecognized prior service cost

        (3,698     209        (3,908

Amortization of unrecognized net actuarial loss

        2,089        (4,668     6,757   

Other

        441        (307     748   

 

36


Mitsubishi UFJ Financial Group, Inc.

 

(Reference)

1. Exposure to “Securitized Products and Related Investments”

Our exposure to securitized products and related investments as of the end of March 2016 is outlined below. (Figures are on a managerial basis and rounded off to billion yen or to the second decimal point of trillion yen)

 

1. Balance and net unrealized gains (losses)

 

(1) The balance as of the end of March 2016 was ¥2.95 trillion in total, a decrease of ¥0.44 trillion from the balance as of the end of March 2015, mainly due to a decrease in CLOs.

 

(2) Net unrealized losses were ¥19 billion, worsened by ¥16 billion compared to the end of March 2015.

 

     (¥bn)  
                              of which securities being
held to maturity 2
 
     Balance 1      Change from
end of March 2015
    Net unrealized
gains (losses)
    Change from
end of March 2015
    Balance      Net unrealized
gains (losses)
 
RMBS      23         2        0        (4     0         0   

Sub-prime RMBS

     0         0        0        0        0         0   
CMBS      362         (44     4        1        195         1   
CLOs      2,544         (334     (23     (10     1,534         (13
Other securitized products (card, etc.)      23         (63     0        (3     16         0   
CDOs      0         0        0        0        0         0   

Sub-prime ABS CDOs

     0         0        0        0        0         0   
SIV      0         0        0        0        0         0   
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 
Total      2,951         (439     (19     (16     1,744         (12
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

    

 

 

 

 

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.

 

2. Distribution by rating

 

(1) AAA-rated products accounted for 89% of our investments in securitized products as of the end of March 2016, an increase of 2 percentage points from the end of March 2015.

 

(2) AAA and AA-rated products accounted for 99% of our investments in securitized products.

 

     (¥bn)  
     AAA     AA     A     BBB     BB or
lower
    Unrated     Total  
RMBS      10        1        0        8        4        0        23   

Sub-prime RMBS

     0        0        0        0        0        0        0   
CMBS      138        223        0        0        0        1        362   
CLOs      2,447        69        26        1        0        0        2,544   
Other securitized products (card, etc.)      20        0        2        0        0        0        23   
CDOs      0        0        0        0        0        0        0   

Sub-prime ABS CDOs

     0        0        0        0        0        0        0   
SIV      0        0        0        0        0        0        0   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Total      2,615        293        29        9        4        1        2,951   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Percentage of total      89     10     1     0     0     0     100
Percentage of total (End of March 2015)      87     10     1     0     0     1     100

 

37


Mitsubishi UFJ Financial Group, Inc.

 

3. Credit exposure related to leveraged loan (LBO loan)

 

(1) 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.

 

(2) The following table shows the balances of LBO loans as of the end of March 2016.

 

     (¥bn)  
     Americas      Europe      Asia      Japan      Total      Change from
end of March 2015
 

LBO Loan 3 (Balance on a commitment basis)

     28         138         0         449         615         141   

Balance on a booking basis

     25         124         0         419         568         162   

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

 

4. Special Purpose Entities (SPEs)

 

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

 

(2) The balance of assets purchased by ABCP conduits (special purpose companies for issuing ABCP) as of the end of March 2016 was ¥4.67 trillion (including ¥2.53 trillion in overseas).

 

(3) The purchased assets are mainly receivables.

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

 

 

 

38


Mitsubishi UFJ Financial Group, Inc.

 

(Reference)

2. Financial Statements

BTMU Non-consolidated

(1) Non-consolidated Balance Sheets

 

(in millions of yen)    As of
March 31, 2015
    As of
March 31, 2016
 

Assets:

    

Cash and due from banks

     33,122,906        36,988,806   

Call loans

     274,077        196,063   

Receivables under resale agreements

     29,243        47,258   

Receivables under securities borrowing transactions

     341,200        446,292   

Monetary claims bought

     3,727,386        3,822,799   

Trading assets

     5,764,317        6,224,030   

Money held in trust

     31,132        57,656   

Securities

     52,873,408        48,913,432   

Loans and bills discounted

     82,740,384        86,691,727   

Foreign exchanges

     2,013,104        1,529,192   

Other assets

     6,224,547        7,881,852   

Tangible fixed assets

     873,973        858,747   

Intangible fixed assets

     398,550        380,570   

Prepaid pension costs

     225,683        258,110   

Customers’ liabilities for acceptances and guarantees

     6,657,095        6,630,945   

Allowance for credit losses

     (644,579     (665,588
  

 

 

   

 

 

 

Total assets

     194,652,431        200,261,895   
  

 

 

   

 

 

 

 

39


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    As of
March 31, 2015
    As of
March 31, 2016
 

Liabilities:

    

Deposits

     124,590,909        131,986,582   

Negotiable certificates of deposit

     10,985,081        6,796,352   

Call money

     1,084,494        167,028   

Payables under repurchase agreements

     8,957,252        10,415,799   

Payables under securities lending transactions

     2,369,378        1,892,928   

Commercial papers

     1,265,562        1,445,681   

Trading liabilities

     4,344,146        4,868,717   

Borrowed money

     11,724,531        11,445,727   

Foreign exchanges

     1,694,556        2,331,337   

Bonds payable

     4,791,846        4,304,538   

Other liabilities

     4,902,001        6,576,505   

Reserve for bonuses

     28,161        27,423   

Reserve for bonuses to directors

     143        110   

Reserve for retirement benefits

     6,953        8,510   

Reserve for loyalty award credits

     1,217        1,348   

Reserve for contingent losses

     41,195        43,808   

Deferred tax liabilities

     585,351        567,867   

Deferred tax liabilities for land revaluation

     133,940        122,901   

Acceptances and guarantees

     6,657,095        6,630,945   
  

 

 

   

 

 

 

Total liabilities

     184,163,819        189,634,113   
  

 

 

   

 

 

 

Net assets:

    

Capital stock

     1,711,958        1,711,958   

Capital surplus

     3,878,275        3,878,275   

Capital reserve

     1,711,958        1,711,958   

Other capital surplus

     2,166,317        2,166,317   

Retained earnings

     3,066,001        3,231,459   

Revenue reserve

     190,044        190,044   

Other retained earnings

     2,875,957        3,041,414   

Funds for retirement benefits

     2,432        2,432   

Other reserve

     718,196        718,196   

Earned surplus brought forward

     2,155,328        2,320,785   

Treasury stock

     (645,700     (645,700
  

 

 

   

 

 

 

Total shareholders’ equity

     8,010,535        8,175,992   
  

 

 

   

 

 

 

Net unrealized gains (losses) on other securities

     2,086,911        1,794,305   

Net deferred gains (losses) on hedging instruments

     155,143        423,084   

Land revaluation excess

     236,022        234,399   
  

 

 

   

 

 

 

Total valuation and translation adjustments

     2,478,076        2,451,789   
  

 

 

   

 

 

 

Total net assets

     10,488,611        10,627,781   
  

 

 

   

 

 

 

Total liabilities and net assets

     194,652,431        200,261,895   
  

 

 

   

 

 

 

 

40


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

(2) Non-consolidated Statements of Income

 

(in millions of yen)    For the fiscal year
ended
March 31, 2015
     For the fiscal year
ended
March 31, 2016
 

Ordinary income

     2,856,450         2,925,593   

Interest income

     1,600,411         1,582,079   

Interest on loans and bills discounted

     986,729         960,297   

Interest and dividends on securities

     472,622         471,589   

Fees and commissions

     676,444         665,589   

Trading income

     127,622         136,836   

Other business income

     330,096         354,684   

Other ordinary income

     121,876         186,403   

Ordinary expenses

     1,953,818         2,061,857   

Interest expenses

     364,034         419,577   

Interest on deposits

     112,059         141,389   

Fees and commissions

     163,039         167,634   

Other business expenses

     100,188         134,752   

General and administrative expenses

     1,202,730         1,145,579   

Other ordinary expenses

     123,825         194,313   
  

 

 

    

 

 

 

Ordinary profits

     902,632         863,736   
  

 

 

    

 

 

 

Extraordinary gains

     3,376         39,371   

Extraordinary losses

     45,745         18,405   
  

 

 

    

 

 

 

Income before income taxes

     860,263         884,702   
  

 

 

    

 

 

 

Income taxes - current

     269,710         262,781   

Income taxes - deferred

     18,775         35,854   
  

 

 

    

 

 

 

Total taxes

     288,485         298,635   
  

 

 

    

 

 

 

Net income

     571,778         586,066   
  

 

 

    

 

 

 

 

41


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Non-consolidated Balance Sheets

 

(in millions of yen)    As of
March 31, 2015
    As of
March 31, 2016
 

Assets:

    

Cash and due from banks

     4,445,069        6,590,057   

Call loans

     129,117        240,231   

Receivables under securities borrowing transactions

     —          886,878   

Monetary claims bought

     1,383        523   

Trading assets

     438,754        372,594   

Money held in trust

     13,256        13,040   

Securities

     17,186,742        17,426,047   

Loans and bills discounted

     12,609,827        13,192,538   

Foreign exchanges

     24,891        36,875   

Other assets

     654,237        723,209   

Tangible fixed assets

     148,449        150,154   

Intangible fixed assets

     53,216        57,496   

Prepaid pension costs

     239,117        262,799   

Customers’ liabilities for acceptances and guarantees

     365,822        405,141   

Allowance for credit losses

     (38,549     (37,084
  

 

 

   

 

 

 

Total assets

     36,271,336        40,320,504   
  

 

 

   

 

 

 

 

42


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    As of
March 31, 2015
    As of
March 31, 2016
 

Liabilities:

    

Deposits

     12,741,410        13,345,415   

Negotiable certificates of deposit

     4,837,879        4,573,223   

Call money

     1,354,566        193,932   

Payables under repurchase agreements

     5,849,069        5,205,060   

Payables under securities lending transactions

     2,558,657        1,926,430   

Commercial papers

     516,964        628,243   

Trading liabilities

     160,122        150,560   

Borrowed money

     1,851,860        2,110,470   

Foreign exchanges

     3,439        418   

Short-term bonds payable

     79,995        126,993   

Bonds payable

     687,935        847,129   

Due to trust accounts

     1,796,031        7,152,449   

Other liabilities

     961,027        1,150,631   

Reserve for bonuses

     4,319        4,564   

Reserve for bonuses to directors

     67        41   

Reserve for contingent losses

     7,146        7,632   

Deferred tax liabilities

     289,642        254,316   

Deferred tax liabilities for land revaluation

     4,728        4,336   

Acceptances and guarantees

     365,822        405,141   
  

 

 

   

 

 

 

Total liabilities

     34,070,687        38,086,991   
  

 

 

   

 

 

 

Net assets:

    

Capital stock

     324,279        324,279   

Capital surplus

     412,315        422,083   

Capital reserve

     250,619        250,619   

Other capital surplus

     161,695        171,464   

Retained earnings

     858,520        943,842   

Revenue reserve

     73,714        73,714   

Other retained earnings

     784,806        870,128   

Funds for retirement benefits

     710        710   

Other reserve

     138,495        138,495   

Earned surplus brought forward

     645,601        730,923   
  

 

 

   

 

 

 

Total shareholders’ equity

     1,595,114        1,690,205   
  

 

 

   

 

 

 

Net unrealized gains (losses) on other securities

     665,776        614,205   

Net deferred gains (losses) on hedging instruments

     (57,003     (67,592

Land revaluation excess

     (3,237     (3,305
  

 

 

   

 

 

 

Total valuation and translation adjustments

     605,534        543,306   
  

 

 

   

 

 

 

Total net assets

     2,200,649        2,233,512   
  

 

 

   

 

 

 

Total liabilities and net assets

     36,271,336        40,320,504   
  

 

 

   

 

 

 

 

43


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(2) Non-consolidated Statements of Income

 

(in millions of yen)    For the fiscal year
ended

March 31, 2015
    For the fiscal year
ended

March 31, 2016
 

Ordinary income

     531,226        571,346   

Trust fees

     86,728        90,917   

Interest income

     237,600        250,600   

Interest on loans and bills discounted

     91,429        92,660   

Interest and dividends on securities

     139,435        149,543   

Fees and commissions

     127,346        134,922   

Trading income

     25,373        21,536   

Other business income

     19,170        46,704   

Other ordinary income

     35,006        26,664   

Ordinary expenses

     321,147        364,838   

Interest expenses

     65,559        86,686   

Interest on deposits

     22,291        23,442   

Fees and commissions

     29,067        30,115   

Trading expenses

     —          518   

Other business expenses

     26,485        48,652   

General and administrative expenses

     188,518        185,319   

Other ordinary expenses

     11,516        13,545   
  

 

 

   

 

 

 

Ordinary profits

     210,078        206,507   
  

 

 

   

 

 

 

Extraordinary gains

     204        14,548   

Extraordinary losses

     8,874        2,443   
  

 

 

   

 

 

 

Income before income taxes

     201,408        218,612   
  

 

 

   

 

 

 

Income taxes - current

     62,411        51,881   

Income taxes - deferred

     (1,760     6,749   
  

 

 

   

 

 

 

Total taxes

     60,651        58,630   
  

 

 

   

 

 

 

Net income

     140,757        159,981   
  

 

 

   

 

 

 

 

44


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(3) Statements of Trust Assets and Liabilities

Including trust assets under service-shared co-trusteeship

 

(in millions of yen)    As of
March 31, 2015
     As of
March 31, 2016
 

Assets:

     

Loans and bills discounted

     112,376         150,571   

Securities

     58,086,929         53,614,888   

Beneficiary rights to the trust

     49,353,240         53,719,802   

Securities held in custody accounts

     3,172,363         3,339,160   

Monetary claims

     10,619,079         9,369,779   

Tangible fixed assets

     10,805,072         11,636,006   

Intangible fixed assets

     192,554         193,150   

Other claims

     5,040,404         4,364,029   

Call loans

     2,307,474         103,070   

Due from banking account

     3,184,730         12,745,624   

Cash and due from banks

     3,449,102         4,474,306   
  

 

 

    

 

 

 

Total

     146,323,327         153,710,390   
  

 

 

    

 

 

 

Liabilities:

     

Money trusts

     23,452,525         20,470,160   

Pension trusts

     15,360,655         14,950,257   

Property formation benefit trusts

     8,340         8,033   

Investment trusts

     48,930,372         58,519,398   

Money entrusted other than money trusts

     3,218,827         3,463,944   

Securities trusts

     5,066,024         5,350,832   

Monetary claim trusts

     10,266,613         8,799,495   

Equipment trusts

     44,498         59,923   

Land and fixtures trusts

     82,369         65,884   

Composite trusts

     39,893,100         42,022,461   
  

 

 

    

 

 

 

Total

     146,323,327         153,710,390   
  

 

 

    

 

 

 

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.

     

  

Detailed information for “Money trust” with contracts indemnifying the principal amounts

(including trusts for which beneficiary interests are re-entrusted)

  

  

(in millions of yen)    As of
March 31, 2015
     As of
March 31, 2016
 

Assets:

     

Loans and bills discounted

     27,008         23,111   

Securities

     104,557         116,704   

Other

     1,624,592         6,985,751   
  

 

 

    

 

 

 

Total

     1,756,157         7,125,567   
  

 

 

    

 

 

 

Liabilities:

     

Principal

     1,738,140         7,111,058   

Allowance for bad debts

     81         69   

Other

     17,936         14,439   
  

 

 

    

 

 

 

Total

     1,756,157         7,125,567   
  

 

 

    

 

 

 

 

45


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(4) Major Items

 

(in millions of yen)    As of
March 31, 2015
     As of
March 31, 2016
 

Total funds

     56,400,812         53,347,090   
  

 

 

    

 

 

 

Deposits

     12,741,410         13,345,415   

Negotiable certificates of deposit

     4,837,879         4,573,223   

Money trusts

     23,452,525         20,470,160   

Pension trusts

     15,360,655         14,950,257   

Property formation benefit trusts

     8,340         8,033   
  

 

 

    

 

 

 

Loans and bills discounted

     12,722,204         13,343,110   
  

 

 

    

 

 

 

Banking account

     12,609,827         13,192,538   

Trust account

     112,376         150,571   
  

 

 

    

 

 

 

Investment securities

     75,273,672         71,040,936   
  

 

 

    

 

 

 

 

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.

 

46

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