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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

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Form 6-K

 

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Report of Foreign Issuer

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

the Securities Exchange Act of 1934

For the month of January, 2007

 

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MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

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

Tokyo 100-8330, Japan

(Address of principal executive offices)

 

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[Indicate by check mark whether the registrant files or

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

Form 20-F       X            Form 40-F              

[Indicate by check mark whether the registrant by furnishing the information

contained in this Form is also thereby furnishing the information to the Commission

pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.]

Yes                      No      X    

 

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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: January 31, 2007

 

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Consolidated Financial Information

<consistent with Japanese GAAP>

for the nine months ended December 31, 2006

 

Date:		January 31, 2007
Company name (code number):		Mitsubishi UFJ Financial Group, Inc. (8306)
		(URL http://www.mufg.jp/)
Stock exchange listings:		Tokyo, Osaka, Nagoya, New York
Headquarters:		Tokyo
Representative:		Nobuo Kuroyanagi, President & CEO
For inquiry:		Takeaki Ishii, General Manager - Financial Planning Division / Financial Accounting Office
		(Phone) +81-3-5252-8650
Trading accounts:		Established
Audit firm participation:		None

1. Notes to consolidated financial information

 

(1)

Adoption of simplified accounting method:

Allowance for loan losses and some other items are stated partially under simplified accounting methods.

Allowance for loan losses is stated based on the following:

 

-

For some of the claims to borrowers whose internal credit ratings were not changed since the previous interim fiscal year end, allowance is calculated based on the loan loss ratios applied to the borrower in the previous interim settlement.

 

-

For some of the claims to borrowers whose internal credit ratings were changed since the previous interim fiscal year end, allowance is calculated based on the loan loss ratios used in the previous interim settlement correlated to internal credit ratings of the borrowers as of December 31, 2006.

 

-

Some items on assets, which are not material, are stated by estimation based on actual amounts as of the previous interim fiscal year end.

 

(2)

Change in accounting policies:

Please refer to the footnote to the section entitled “2. Consolidated Statement of Income” on page 5.

 

(3)

Change in scope of consolidation and application of the equity method:

 

Consolidated subsidiaries:		Newly included:		25		Excluded:		20
Affiliated companies accounted for under the equity method:		Newly included:		5		Excluded:		3

2. Consolidated financial data for the nine months ended December 31, 2006

 

(1)	Operating results

The operating results for the nine months ended December 31, 2005 include consolidated results of former Mitsubishi Tokyo Financial Group, Inc. (from April 2005 to September 2005) and consolidated results of Mitsubishi UFJ Financial Group, Inc.(from October 2005 to December 2005).

The operating results for the fiscal year ended March 31, 2006 include consolidated results of former Mitsubishi Tokyo Financial Group, Inc. (from April 2005 to September 2005) and consolidated results of Mitsubishi UFJ Financial Group, Inc. (from October 2005 to March 2006).

 

		(in millions of yen except per share data and percentages)
		For the nine months ended December 31,						(Reference) For the fiscal year ended March 31, 2006
		2006			2005
Ordinary income		4,308,950			2,756,504			4,293,950
		56.3	%		46.7	%		—
Ordinary profit		963,979			740,382			1,078,061
		30.2	%		57.5	%		—
Net income		690,550			615,371			770,719
		12.2	%		116.5	%		—
Net income per share (yen)		68,333.70			79,982.85			93,263.16
Net income per diluted share (yen)		67,286.85			77,457.43			89,842.27

(Reference) Former UFJ Holdings, Inc.

		For the six months ended September 30, 2005
Ordinary income		1,113,760
Ordinary profit		355,247
Net income		411,057
Net income per share (yen)		79,851.45
Net income per diluted share (yen)		57,075.34

Notes:

 

1.

Percentages for the nine months ended December 31, 2006 represent rate of changes from the consolidated results for the nine months ended December 31, 2005.

 

2.

Percentages for the nine months ended December 31, 2005 represent rate of changes from the consolidated results of former Mitsubishi Tokyo Financial Group, Inc. for the nine months ended December 31, 2004.

 

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Qualitative information related to the consolidated operating results:

With respect to the economic environment between April and December 2006, overseas economies generally remained firm as seen in China’s continued strong growth centering on capital investment and exports despite the slowdown of the United States economy. In Japan, while the momentum slightly weakened towards the year-end, rising exports and capital investment coupled with solid corporate earnings is gradually leading to improvement in employment and income conditions, and the economy as a whole continued to enjoy a well-balanced growth. Consumer prices have turned to a modest upward trend.

In the financial environment, the U.S. federal funds target rate has been raised to 5.25 percent, and the European Central Bank raised its key policy rate to 3.5 percent in the euro-zone. The Bank of Japan’s termination of the zero-interest rate policy in July has led to slightly increased upward pressure on Japan’s short-term market interest rates. In the long-term interest rate market, the yield on ten-year Japanese government bonds rose in May due to speculations of an early rate hike by the Bank of Japan, but long-term interest rates have basically followed a downward trend after the zero-interest rate policy was lifted, albeit with some fluctuation. In the foreign exchange market, the yen weakened against the dollar on the back of interest rate gaps between the United States and Japan.

Amidst this economic environment, consolidated ordinary income for the nine months ended December 31, 2006 was ¥4,308.9 billion, an increase of 56.3% compared to the previous nine months ended December 31, 2005. Consolidated net ordinary profit was ¥963.9 billion and consolidated net income was ¥690.5 billion for the nine months ended December 31, 2006, an increase of 30.2% and 12.2%, respectively, compared to the previous nine months ended December 31, 2005.

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1

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(2)	Financial conditions

 

		(in millions of yen except per share data and percentages)
		As of December 31,						(Reference) As of March 31, 2006
		2006			2005
Total assets		191,355,513			194,595,894			187,046,793
Total net assets (*1)		10,090,525			6,994,462			7,727,837
Net assets ratio (*1)(*2)		4.2	%		3.5	%		4.1	%
Total net assets per share (yen) (*1)		760,975.97			598,847.23			692,792.39

Notes:

 

1.

As a result of the new Japanese Corporate Code becoming effective, “Total net assets”, “Net assets ratio” and “Total net assets per share” have been used as new financial measures starting this fiscal year (Those figures as of December 31, 2005 and March 31, 2006 are stated using old measures). “Total net assets” is modified from “Shareholders’ equity” and “Shareholders’ equity” was 8,185,269 million yen as of December 31, 2006. “Net assets ratio” and “Total net assets per share” are modified from “Shareholders’ equity ratio” and “Shareholders’ equity per share”, respectively.

These modifications do not have a significant impact on consolidated financial statements.

Please refer to the next page for formulas for calculating these new financial measures.

 

2.

Please refer to page 8 of Selected Financial Information for “Risk-Adjusted Capital Ratio Based on the BIS Standards”.

 

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Qualitative information related to the consolidated financial conditions:

Total assets increased by ¥4,308.7 billion from March 31, 2006 to ¥191,355.5 billion at December 31, 2006 (a decrease of ¥3,240.3 billion from December 31, 2005), and total net assets increased by ¥264.1 billion to ¥10,090.5 billion compared to the aggregate amount of minority interest and shareholders’ equity at March 31, 2006 (an increase of ¥1,477.3 billion compared to the aggregate amount of minority interest and shareholders’ equity at December 31, 2005).

Major factors affecting the change in total net assets were the increase in retained earnings of ¥585.0 billion, the recording of net deferred losses on hedging instruments of ¥75.0 billion, the increase in treasury stock of ¥227.1 billion due to the repayment of public funds etc, and the increase in net unrealized gains on securities available for sale of ¥87.2 billion mainly due to the increase in valuation differences of stock.

As to the balances of major accounting items, with regards to assets, investment securities increased by ¥472.9 billion from March 31, 2006 to ¥48,981.9 billion at December 31, 2006 (a decrease of ¥2,274.7 billion from December 31, 2005). Loans and bills discounted increased by ¥1,258.8 billion from March 31, 2006 to ¥87,021.9 billion at December 31, 2006 (an increase of ¥200.7 billion from December 31, 2005). With regards to liabilities, deposits decreased by ¥2,729.2 billion from March 31, 2006 to ¥116,258.8 billion at December 31, 2006 (a decrease of ¥1,051.2 billion from December 31, 2005).

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(Reference)

Earnings forecast for the fiscal year ending March 31, 2007

 

		(in millions of yen)
		Ordinary income		Ordinary profit		Net income
Forecast		5,800,000		1,500,000		870,000

Forecasted net income per share for the year ending March 31, 2007 (yen): 85,315.56

 

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Qualitative information related to the earnings forecast:

There are no changes to our earnings forecast issued on November 20, 2006 for the fiscal year ending March 31, 2007.

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This financial summary report and the accompanying financial highlights contain forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other general 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, the statements and assumptions are inherently not guarantees of future performance and may result in inaccuracy from an objective point of view and in material differences from the actual result. For the main matters that may be currently forecast, please see the financial highlights, the Annual Securities Report, Disclosure Book, and Annual Report, and other current disclosures that the company has announced.

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2

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(Reference)

Formulas for computing ratios for the nine months ended December 31, 2006 are as follows.

 Net income per share

 

		Net income - Amount not available to common shareholders*1
		Average outstanding shares of common stock during this period*2

‚ Net income per diluted share

 

		Net income - Amount not available to common shareholders*1 + Adjustments in net income
		Average outstanding shares of common stock during this period*2 + Possible conversions from convertible instruments to common stock

ƒ Net assets ratio (As of December 31, 2006)

 

		Total net assets - Subscription rights to shares - Minority interests		× 100
		Total assets

Shareholders’ equity ratio (As of December 31, 2005 and as of March 31, 2006)

 

		Total shareholders’ equity		× 100
		Total assets

„ Total net assets per share (As of December 31, 2006)

 

		Total net assets - Preferred stock and others*3
		Outstanding shares of common stock as of December 31, 2006*2

Shareholders’ equity per share (As of December 31, 2005 and as of March 31, 2006)

 

		Total shareholders’ equity - Preferred stock and others*4
		Outstanding shares of common stock at the end of this period*2

Formula for computing forecasted earning ratio for the fiscal year ending March 31, 2007 is as follows.

Forecasted net income per share

 

		Forecasted net income - Forecasted total dividends on preferred stock
		Outstanding shares of common stock as of December 31, 2006*2

 

*1	equivalent to dividends on preferred stock and others

*2	excluding treasury stock

*3	amount of preferred stock issued, equivalent to dividends on preferred stock, subscription rights to shares, minority interests and others

*4	amount of preferred stock issued, equivalent to dividends on preferred stock and others

 

3

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Mitsubishi UFJ Financial Group, Inc.

1. Consolidated Balance Sheet

 

(in millions of yen)		As of December 31, 2006 (A)			As of March 31, 2006 (B)			(A)-(B)			(Reference) As of December 31, 2005
Assets:
Cash and due from banks		9,489,039			12,347,561			(2,858,522	)		16,729,714
Call loans and bills bought		1,463,814			2,467,717			(1,003,903	)		1,656,580
Receivables under resale agreements		4,874,350			1,077,911			3,796,438			1,123,765
Receivables under securities borrowing transactions		4,566,512			5,425,527			(859,015	)		3,934,683
Commercial paper and other debt purchased		3,971,315			2,675,007			1,296,308			3,019,795
Trading assets		10,688,568			10,070,779			617,788			9,687,575
Money held in trust		421,329			410,545			10,783			441,133
Investment securities		48,981,969			48,508,977			472,992			51,256,704
Allowance for losses on investment securities		(21,707	)		(26,663	)		4,956			(1,734	)
Loans and bills discounted		87,021,954			85,763,106			1,258,847			86,821,169
Foreign exchanges		1,331,265			1,267,808			63,457			1,409,006
Other assets		6,038,917			6,517,435			(478,518	)		6,407,557
Tangible fixed assets		1,694,358			—			1,694,358			—
Intangible fixed assets		695,516			—			695,516			—
Premises and equipment		—			1,517,892			(1,517,892	)		1,522,442
Deferred tax assets		433,460			705,140			(271,679	)		855,128
Goodwill		—			145,250			(145,250	)		148,052
Customers’ liabilities for acceptances and guarantees		10,803,737			9,533,542			1,270,194			11,256,661
Allowance for loan losses		(1,098,887	)		(1,360,745	)		261,858			(1,672,343	)
Total assets		191,355,513			187,046,793			4,308,719			194,595,894
Liabilities:
Deposits		116,258,812			118,988,093			(2,729,281	)		117,310,018
Negotiable certificates of deposit		6,970,849			6,586,425			384,423			8,048,314
Call money and bills sold		2,868,357			9,428,846			(6,560,488	)		14,580,776
Payables under repurchase agreements		9,309,803			4,885,491			4,424,311			6,252,208
Payables under securities lending transactions		5,625,710			4,339,568			1,286,142			3,545,019
Commercial paper		603,291			309,384			293,906			370,519
Trading liabilities		5,325,653			4,361,905			963,747			3,798,384
Borrowed money		7,099,360			2,974,031			4,125,328			2,885,336
Foreign exchanges		829,540			1,312,568			(483,028	)		1,570,582
Short-term corporate bonds		462,600			490,700			(28,100	)		669,100
Bonds and notes		6,568,587			6,634,559			(65,971	)		6,662,059
Bonds with subscription rights to shares		49,673			49,165			508			49,165
Due to trust accounts		1,878,555			2,429,068			(550,513	)		3,350,072
Other liabilities		6,068,952			4,469,097			1,599,854			5,027,827
Reserve for employees’ bonuses		15,871			50,857			(34,985	)		12,812
Reserve for directors’ bonuses		173			—			173			—
Reserve for employees’ retirement benefits		69,439			82,239			(12,799	)		93,734
Reserve for expenses related to EXPO 2005 Japan		—			—			—			300
Reserves for contingencies		122,802			—			122,802			—
Reserves under special laws		2,184			2,058			125			2,199
Deferred tax liabilities		121,840			81,963			39,876			285,618
Deferred tax liabilities for land revaluation		209,191			210,875			(1,684	)		212,045
Acceptances and guarantees		10,803,737			9,533,542			1,270,194			11,256,661
Total liabilities		181,264,987			177,220,444			4,044,542			185,982,756
Net assets:
Capital stock		1,383,052			—			1,383,052			—
Capital surplus		1,916,306			—			1,916,306			—
Retained earnings		3,911,026			—			3,911,026			—
Treasury stock		(1,001,081	)		—			(1,001,081	)		—
Total shareholders’ equity		6,209,304			—			6,209,304			—
Net unrealized gains (losses) on securities available for sale, net of taxes		1,856,745			—			1,856,745			—
Net deferred gains (losses) on hedging instruments, net of taxes		(75,078	)		—			(75,078	)		—
Land revaluation excess, net of taxes		148,492			—			148,492			—
Foreign currency translation adjustments		(29,273	)		—			(29,273	)		—
Total valuation and translation adjustments		1,900,887			—			1,900,887			—
Subscription rights to shares		0			—			0			—
Minority interests		1,980,334			—			1,980,334			—
Total net assets		10,090,525			—			10,090,525			—
Total liabilities and net assets		191,355,513			—			191,355,513			—
Minority interests		—			2,098,512			(2,098,512	)		1,618,675
Shareholders’ equity:
Capital stock		—			1,383,052			(1,383,052	)		1,383,052
Capital surplus		—			1,915,855			(1,915,855	)		1,658,088
Retained earnings		—			3,325,980			(3,325,980	)		2,809,037
Land revaluation excess, net of taxes		—			149,534			(149,534	)		148,099
Net unrealized gains (losses) on securities available for sale, net of taxes		—			1,769,525			(1,769,525	)		1,634,903
Foreign currency translation adjustments		—			(42,168	)		42,168			(77,962	)
Treasury stock		—			(773,941	)		773,941			(560,756	)
Total shareholders’ equity		—			7,727,837			(7,727,837	)		6,994,462
Total liabilities, minority interests and shareholders’ equity		—			187,046,793			(187,046,793	)		194,595,894

 

4

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Mitsubishi UFJ Financial Group, Inc.

2. Consolidated Statement of Income

The following operating results for the nine months ended December 31, 2005 include the consolidated results of former Mitsubishi Tokyo Financial Group, Inc. (from April 2005 to September 2005) and the consolidated results of Mitsubishi UFJ Financial Group, Inc. (from October 2005 to December 2005). The operating results for the fiscal year ended March 31, 2006 include the consolidated results of former Mitsubishi Tokyo Financial Group, Inc. (from April 2005 to September 2005) and the consolidated results of Mitsubishi UFJ Financial Group, Inc. (from October 2005 to March 2006).

 

(in millions of yen)		For the nine months ended December 31, 2006 (A)		For the nine months ended December 31, 2005 (B)		(Reference) Former UFJ Holdings, Inc. For the six months ended September 30, 2005		(A)-(B)			(Reference) For the fiscal year ended March 31, 2006
Ordinary income		4,308,950		2,756,504		1,113,760		1,552,445			4,293,950
Interest income:		2,521,091		1,543,411		527,806		977,680			2,365,923
(Interest on loans and discounts)		1,564,321		927,777		347,365		636,544			1,411,124
(Interest and dividends on securities)		522,897		341,633		97,462		181,264			598,194
Trust fees		113,120		60,541		23,721		52,578			122,898
Fees and commissions		962,578		631,264		255,301		331,314			1,000,853
Trading profits		207,911		70,448		23,045		137,462			148,524
Other business income		255,526		339,160		212,931		(83,633	)		391,226
Other ordinary income		248,720		111,677		70,953		137,042			264,524
Ordinary expenses:		3,344,970		2,016,122		758,513		1,328,847			3,215,888
Interest expense:		1,143,460		589,946		154,085		553,513			884,422
(Interest on deposits)		524,102		280,220		50,798		243,881			414,861
Fees and commissions		122,648		69,119		39,389		53,529			117,058
Trading expenses		—		—		8,881		—			1,113
Other business expenses		109,139		119,322		89,513		(10,183	)		170,456
General and administrative expenses		1,558,900		1,083,174		379,140		475,725			1,663,458
Other ordinary expenses		410,821		154,559		87,503		256,262			379,380
Ordinary profit		963,979		740,382		355,247		223,597			1,078,061
Extraordinary gains		244,636		207,380		301,474		37,256			451,571
Extraordinary losses		58,377		9,115		90,257		49,262			28,535
Income before income taxes and others		1,150,238		938,646		566,463		211,592			1,501,097
Income taxes - current		87,632		64,198		32,011		23,434			108,982
Income taxes - deferred		301,876		204,760		120,387		97,116			525,011
Minority interests		70,178		54,316		3,006		15,862			96,383
Net income		690,550		615,371		411,057		75,179			770,719

Note:

As for trust fees of our domestic trust banking subsidiaries, the timing of revenue recognition has been changed starting from this fiscal year. In the previous fiscal periods, in principle, the fees had been recognized as revenue at the end of calculation period of the trust contracts. Starting from this fiscal year, in order to more appropriately account for profits and losses on an accrual basis in accordance with the recent improvement of information disclosure system, fees have been recognized as revenue on an accrual basis based on the elapse of calculation period of trust contracts except for trust fees whose calculation methods were not based on calculation period of trust contracts or balance of entrusted assets. This change became available by the development of the calculation system of the subsidiaries in this fiscal year, which made possible to adopt the accrual based accounting of the fees based on calculation period of trust contracts or balance of entrusted assets.

This change results in a 28,537 million yen increase in “Ordinary income”, “Ordinary profit” and “Income before income taxes and others” respectively, compared to the previous revenue recognition method.

 

5

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Mitsubishi UFJ Financial Group, Inc.

3. Consolidated Statement of Changes in Net Assets

For the nine months ended December 31, 2006

 

		(in millions of yen)
		Shareholders’ equity
		Capital stock		Capital surplus			Retained earnings			Treasury stock			Total
Balance as of March 31, 2006		1,383,052		1,915,855			3,325,980			(773,941	)		5,850,946
Changes during the period
Dividends from surplus							(103,150	)					(103,150	)
Bonuses to directors							(163	)					(163	)
Net income							690,550						690,550
Acquisition of treasury stock										(291,513	)		(291,513	)
Disposal of treasury stock				456						64,372			64,829
Reversal of land revaluation excess							1,100						1,100
Decrease in consolidated subsidiaries							(16	)					(16	)
Decrease in affiliated companies accounted for under the equity method							(2,003	)					(2,003	)
Increase in consolidated subsidiaries resulting from changes in accounting standards							(1,270	)					(1,270	)
other				(4	)								(4	)
Net changes other than shareholders’ equity
Total changes during this period		—		451			585,046			(227,140	)		358,358
Balance as of December 31, 2006		1,383,052		1,916,306			3,911,026			(1,001,081	)		6,209,304

 

		(in millions of yen)
		Valuation and translation adjustments													Subscription rights to shares		Minority interests			Total net assets
		Net unrealized gains on securities available for sale, net of taxes		Net deferred gains (losses) on hedging instruments, net of taxes			Land revaluation excess, net of taxes			Foreign currency translation adjustments			Total
Balance as of March 31, 2006		1,769,525		—			149,534			(42,168	)		1,876,891		0		2,098,512			9,826,349
Changes during the period
Dividends from surplus																				(103,150	)
Bonuses to directors																				(163	)
Net income																				690,550
Acquisition of treasury stock																				(291,513	)
Disposal of treasury stock																				64,829
Reversal of land revaluation excess																				1,100
Decrease in consolidated subsidiaries																				(16	)
Decrease in affiliated companies accounted for under the equity method																				(2,003	)
Increase in consolidated subsidiaries resulting from changes in accounting standards																				(1,270	)
other																				(4	)
Net changes other than shareholders’ equity		87,220		(75,078	)		(1,041	)		12,895			23,995		—		(118,177	)		(94,181	)
Total changes during this period		87,220		(75,078	)		(1,041	)		12,895			23,995		—		(118,177	)		264,176
Balance as of December 31, 2006		1,856,745		(75,078	)		148,492			(29,273	)		1,900,887		0		1,980,334			10,090,525

Note: Total net assets as of March 31,2006 includes Subscription rights to shares and Minority interests.

 

6

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Mitsubishi UFJ Financial Group, Inc.

(Mitsubishi UFJ Trust and Banking Corporation)

4. Statement of Trust Assets and Liabilities

Includes Trust Assets under Service-Shared Co-Trusteeship

 

(in millions of yen)		As of December 31, 2006 (A)		As of March 31, 2006 (B)		(A) - (B)			(Reference) As of December 31, 2005
Assets:
Loans and bills discounted		332,324		350,037		(17,713	)		374,548
Securities		50,777,948		49,971,674		806,274			40,378,270
Beneficiary rights to the trust		25,176,051		24,690,554		485,496			25,405,373
Securities held in custody accounts		1,426,191		1,129,454		296,737			1,089,652
Money claims		12,223,635		11,398,024		825,610			10,148,905
Premises and equipment		7,269,109		6,363,329		905,780			5,932,186
Surface rights		18,405		17,805		600			17,805
Real estate lease rights		63,114		—		63,114			—
Lease rights		—		52,094		(52,094	)		46,025
Other claims		2,508,317		2,333,082		175,234			1,520,981
Call loans		1,276,620		1,396,008		(119,388	)		1,496,149
Due from banking account		1,878,376		2,428,889		(550,512	)		3,349,983
Cash and due from banks		1,203,330		1,054,442		148,888			904,634
Total assets		104,153,423		101,185,395		2,968,028			90,664,515
Liabilities:
Money trusts		29,017,861		29,699,587		(681,725	)		27,464,725
Pension trusts		12,780,390		12,150,927		629,462			12,210,404
Property formation benefit trusts		13,784		14,583		(798	)		15,591
Loan trusts		432,844		653,459		(220,615	)		719,701
Investment trusts		23,537,078		22,892,430		644,647			23,513,063
Money entrusted other than money trusts		2,971,516		2,946,860		24,655			3,304,251
Securities trusts		1,913,846		1,560,549		353,297			1,384,220
Money claims trusts		12,740,560		11,783,807		956,752			10,545,586
Equipment trusts		42,666		27,027		15,638			33,350
Land and fixtures trusts		115,787		118,056		(2,268	)		119,357
Land leases trusts		—		265		(265	)		263
Composite trusts		20,587,086		19,337,839		1,249,247			11,353,999
Other trusts		0		0		(0	)		0
Total liabilities		104,153,423		101,185,395		2,968,028			90,664,515

 

7

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Mitsubishi UFJ Financial Group, Inc.

5. Business segment information

 

<For the nine months ended December 31, 2006>

 

		(in millions of yen)
		Banking		Trust Banking		Securities		Credit card		Other		Total		(Elimination)			Consolidated
Ordinary profit		710,068		192,713		39,918		80,068		436,624		1,459,392		(495,413	)		963,979

Notes:

 

1.

“Ordinary profit” is presented as counterparts of operating profit of companies in other industries.

 

2.

Starting this fiscal year, “Credit card” segment is separated from “Other”.

 

3.

“Other” primarily includes leasing businesses.

 

4.

“Other” also includes 488,899 million yen of dividends received from our consolidated domestic banking subsidiary and consolidated domestic trust banking subsidiary.

 

5.

As for trust fees of our domestic trust banking subsidiaries, the timing of revenue recognition has been changed starting from this fiscal year.

In the previous fiscal periods, in principle, the fees had been recognized as revenue at the end of calculation period of the trust contracts.

Starting from this fiscal year, in order to more appropriately account for profits and losses on an accrual basis in accordance with the recent improvement of information disclosure system, fees have been recognized as revenue on an accrual basis based on the elapse of calculation period of trust contracts except for trust fees whose calculation methods were not based on calculation period of trust contracts or balance of entrusted assets. This change became available by the development of the calculation system of the subsidiaries in this fiscal year, which made possible to adopt the accrual based accounting of the fees based on calculation period of trust contracts or balance of entrusted assets.

This change results in a 28,537 million yen increase in “Ordinary profit” of “Trust Banking” compared to the previous revenue recognition method.

<For the nine months ended December 31, 2005>

The sum of consolidated results of former Mitsubishi-Tokyo Financial Group, Inc. (from April 2005 to September 2005) and consolidated results of Mitsubishi UFJ Financial Group, Inc. (from October 2005 to December 2005).

 

		(in millions of yen)
		Banking		Trust Banking		Securities		Other		Total		(Elimination)			Consolidated
Ordinary profit		607,547		126,430		55,313		1,052,062		1,841,354		(1,100,972	)		740,382

Notes:

 

1.

“Ordinary profit” is presented as counterparts of operating profit of companies in other industries.

 

2.

“Other” primarily includes credit card and leasing businesses.

 

3.

“Other” also includes 1,010,251 million yen of dividends received from our consolidated domestic banking subsidiary and consolidated domestic trust banking subsidiary.

(Reference)

<For the fiscal year ended March 31, 2006>

The sum of consolidated results of former Mitsubishi-Tokyo Financial Group, Inc. (from April 2005 to September 2005) and consolidated results of Mitsubishi UFJ Financial Group, Inc. (from October 2005 to March 2006 ).

 

		(in millions of yen)
		Banking		Trust Banking		Securities		Other		Total		(Elimination)			Consolidated
Ordinary profit		825,646		204,781		80,598		1,072,159		2,183,185		(1,105,124	)		1,078,061

Notes:

 

1.

“Ordinary profit” is presented as counterparts of operating profit of companies in other industries.

 

2.

“Other” primarily includes credit card and leasing businesses.

 

3.

“Other” also includes 1,010,251 million yen of dividends received from our consolidated domestic banking subsidiary and consolidated domestic trust banking subsidiary.

 

8

---

 

 

Selected Financial Information

<Consistent with Japanese GAAP>

For the nine months ended December 31, 2006

 

 

 

 

 

 

 

 

				Mitsubishi UFJ Financial Group, Inc.

---

[Contents]

 

I. Financial Highlights for the nine months ended December 31, 2006
		1. Highlights of Consolidated Statement of Operations				1
		2. Highlights of Consolidated Balance Sheet				2
II. Summary Report for the nine months ended December 31, 2006
		1. Financial Results		[ MUFG Consolidated ] *1		3
				[ BTMU and MUTB Combined ] *2		4
				[ BTMU Non-consolidated ]		5
				[ MUTB Non-consolidated ]		6
		2. Non-Performing Loans Based on the Financial Reconstruction Law		[ BTMU and MUTB Combined including Trust Accounts ]		7
				[ BTMU Non-consolidated ]		7
				[ MUTB Non-consolidated ]		7
				[ Trust Accounts ]		7
		3. Risk-Adjusted Capital Ratio Based on the BIS Standards		[ MUFG Consolidated ]		8
		4. Return on Equity		[ MUFG Consolidated ]		8
		5. Fair Value Information on Investment Securities		[ MUFG Consolidated ]		9
				[ BTMU Non-consolidated ]		10
				[ MUTB Non-consolidated ]		11
		6. Deferred Gains (Losses) with Derivatives		[ MUFG Consolidated ]		12
		7. Loans and Deposits		[ BTMU and MUTB Combined ]		13
		8. Domestic Deposits		[ BTMU and MUTB Combined ]		13
		9. Domestic Consumer Loans		[ BTMU and MUTB Combined ]		13
				[ Trust Accounts ]		13
		10. Domestic Loans to Small and Medium-sized Companies		[ BTMU and MUTB Combined ]		13
				[ Trust Accounts ]		13
		11. Status of Deferred Tax Assets		[ BTMU and MUTB Combined ]		14

 

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

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

“MUTB” means Mitsubishi UFJ Trust and Banking Corporation.

---

I. Financial Highlights for the nine months ended December 31, 2006

1. Highlights of Consolidated Statement of Operations

Consolidated gross profit increased compared to the nine months ended December 2005, primarily due to increased fees from investment trust related businesses. But mainly due to costs relating to integration, the increase in expenses was larger than the increase in gross profits.

As a result, consolidated net business profit for the nine months ended December 2006 was ¥1,151.3 billion, a decrease of ¥80.7 billion compared to the previous nine month period.

Consolidated net income was ¥690.5 billion, a decrease of ¥335.8 billion compared to the nine months ended December 2005. This was mainly due to the decline of ¥272.1 billon in the reversal of allowances for loan losses which was accounted for as extraordinary gains.

 

Highlights of Consolidated Statement of Operations

 

				(in billions of yen)
				For the nine months ended December 31, 2005 (A)			For the nine months ended December 31, 2006 (B)			(B) - (A)
1		Gross profits before credit costs for trust accounts		2,620.1			2,687.2			67.1
2		Net interest income		1,329.0			1,379.8			50.8
3		Trust fees before credit costs for trust accounts		85.1			113.1			28.0
4		Net fees and commissions		778.0			839.9			61.8
5		Total of net trading profits and net other business income		427.8			354.2			(73.5	)
6		Net gains (losses) on debt securities		40.9			6.2			(34.7	)
7		General and administrative expenses		1,388.0			1,535.9			147.8
8		Amortization of goodwill		—			6.4			6.4
9		Net business profits before credit costs for trust accounts and provision for general allowance for loan losses		1,232.0			1,151.3			(80.7	)
10		Net business profits before provision for general allowance for loan losses, credit costs for trust accounts and amortization of Goodwill		1,232.0			1,157.7			(74.2	)
11		Credit costs for trust accounts		(0.9	)		(0.0	)		0.8
12		Credit related costs		(118.9	)		(133.2	)		(14.2	)
13		Total of net gains (losses) on equity securities and losses on write down of equity securities		54.1			17.9			(36.2	)
14		Other non-recurring gains (losses)		(70.7	)		(71.9	)		(1.2	)
15		Ordinary profit		1,095.6			963.9			(131.6	)
16		Net extraordinary gains		409.4			186.2			(223.2	)
17		Reversal of allowance for loan losses		412.2			140.0			(272.1	)
18		Total of income taxes-current and income taxes-deferred		421.3			389.5			(31.8	)
19		Minority interests		57.3			70.1			12.8
20		Net income		1,026.4			690.5			(335.8	)
21		Total credit costs		292.2			6.7			(285.5	)

The financial results of the nine months ended December 31, 2005 represent the aggregated consolidated figures of former Mitsubishi Tokyo Financial Group, Inc. (from April 2005 to September 2005), former UFJ Holdings, Inc. (from April 2005 to September 2005) and Mitsubishi UFJ Financial Group, Inc. (from October 2005 to December 2005).

 

1

---

Mitsubishi UFJ Financial Group, Inc.

2. Highlights of Consolidated Balance Sheet

 

à

Loans and Deposits

Loans and bills discounted (including trust accounts) was ¥87.3 trillion, an increase of ¥1.3 trillion compared to the end of September 2006. This increase was mainly caused by the rise in loan demand at year-end.

Deposits were ¥116.2 trillion, an increase of ¥0.6 trillion compared to the end of September 2006. This increase was mainly due to the increase in individual deposit accounts.

 

à

Non-performing loans

Disclosed claims ratio was 1.33%, representing a decline of 0.10 points compared to the end of September 2006. The progress in the disposal of non-performing loans and upgrades of borrowers’ credit ratings resulting from improvements in their business performance contributed to this decline in disclosed claims ratio.

 

à

Net unrealized gains (losses) on securities

Net unrealized gains (losses) on securities available for sale were ¥3.11 trillion, an increase of ¥0.44 trillion compared to the end of September 2006. This increase was mainly due to the steady performance of equity markets.

 

à

BIS Risk-Adjusted Capital Ratio (Preliminary)

As of December 31, 2006, the consolidated BIS risk-adjusted capital ratio and the Tier 1 ratio were both maintained at adequate levels of 12.17% and 6.88%, respectively.

 

2

---

Mitsubishi UFJ Financial Group, Inc.

II. Summary Report for the nine months ended December 31, 2006

1. Financial Results

[Mitsubishi UFJ Financial Group, Inc. consolidated]

Note:

The following financial results of the nine months ended December 31, 2005 represent the aggregated consolidated figures of former Mitsubishi Tokyo Financial Group, Inc. (from April 2005 to September 2005), former UFJ Holdings, Inc. (from April 2005 to September 2005) and Mitsubishi UFJ Financial Group, Inc. (from October 2005 to December 2005).

 

 

3

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Mitsubishi UFJ Financial Group, Inc.

[The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mitsubishi UFJ Trust and Banking Corporation combined]

Note:

The following financial results for the nine months ended December 31, 2005 represent the aggregated figures of former The Bank of Tokyo-Mitsubishi, Ltd. (from April 2005 to December 2005), former UFJ Bank Limited (from April 2005 to December 2005), former The Mitsubishi Trust and Banking Corporation (from April 2005 to September 2005), former UFJ Trust Bank Limited (from April 2005 to September 2005) and Mitsubishi UFJ Trust and Banking Corporation (from October 2005 to December 2005).

 

		(in billions of yen)
		For the nine months ended December 31, 2006 (A)			For the nine months ended December 31, 2005 (B)			(A)-(B)
Gross profits		1,718.4			1,874.0			(155.5	)
(Gross profits before credit costs for trust accounts)		1,718.5			1,874.9			(156.4	)
Net interest income		998.9			1,100.8			(101.8	)
Trust fees		82.0			68.2			13.8
Credit costs for trust accounts (1)		(0.0	)		(0.9	)		0.8
Net fees and commissions		401.3			396.2			5.1
Net trading profits (losses)		104.6			(19.2	)		123.9
Net other business income		131.3			328.0			(196.6	)
Net gains (losses) on debt securities		6.3			41.4			(35.0	)
General and administrative expenses		936.2			898.1			38.0
Net business profits before provision for general allowance for loan losses and credit costs for trust accounts		782.3			976.7			(194.4	)
Provision for general allowance for loan losses (2)		—			—			—
Net business profits		782.2			975.8			(193.6	)
Net non-recurring gains (losses)		(118.9	)		(91.4	)		(27.5	)
Credit related costs (3)		(89.6	)		(98.5	)		8.9
Losses on loan write-offs		(73.2	)		(93.4	)		20.1
Provision for specific allowance for loan losses		—			—			—
Other credit related costs		(16.3	)		(5.1	)		(11.2	)
Net gains (losses) on equity securities		3.3			122.9			(119.6	)
Gains on sales of equity securities		42.9			158.3			(115.4	)
Losses on sales of equity securities		(1.2	)		(8.6	)		7.3
Losses on write down of equity securities		(38.3	)		(26.7	)		(11.5	)
Other non-recurring gains (losses)		(32.6	)		(115.8	)		83.1
Ordinary profit		663.2			884.4			(221.1	)
Net extraordinary gains		246.1			556.9			(310.7	)
Reversal of allowance for loan losses (4)		204.1			499.0			(294.8	)
Income before income taxes		909.3			1,441.3			(531.9	)
Income taxes-current		13.5			12.4			1.0
Income taxes-deferred		226.1			383.6			(157.5	)
Net income		669.7			1,045.1			(375.4	)
(Reference)
Total credit costs (1)+(2)+(3)+(4)		114.4			399.5			(285.0	)

 

4

---

Mitsubishi UFJ Financial Group, Inc.

[The Bank of Tokyo-Mitsubishi UFJ, Ltd. : Non-consolidated]

Note:

The following financial results for the nine months ended December 31, 2005 represent the aggregated figures of former The Bank of Tokyo-Mitsubishi, Ltd. (from April 2005 to December 2005) and former UFJ Bank Limited (from April 2005 to December 2005).

 

		(in billions of yen)
		For the nine months ended December 31, 2006 (A)			For the nine months ended December 31, 2005 (B)			(A)-(B)
Gross profits		1,387.9			1,552.0			(164.1	)
Net interest income		839.8			959.7			(119.9	)
Net fees and commissions		307.7			299.7			7.9
Net trading profits		91.7			(13.7	)		105.5
Net other business income		148.5			306.2			(157.6	)
Net gains (losses) on debt securities		17.3			26.1			(8.8	)
General and administrative expenses		786.4			737.5			48.9
Net business profits before provision for general allowance for loan losses		601.4			814.4			(213.0	)
Provision for general allowance for loan losses (1)		—			—			—
Net business profits		601.4			814.4			(213.0	)
Net non-recurring gains (losses)		(123.2	)		(83.8	)		(39.4	)
Credit related costs (2)		(99.1	)		(70.6	)		(28.5	)
Losses on loan write-offs		(72.5	)		(75.0	)		2.4
Provision for specific allowance for loan losses		—			—			—
Other credit related costs		(26.5	)		4.3			(30.9	)
Net gains (losses) on equity securities		2.6			97.3			(94.7	)
Gains on sales of equity securities		34.6			127.8			(93.1	)
Losses on sales of equity securities		(0.6	)		(6.9	)		6.2
Losses on write down of equity securities		(31.3	)		(23.4	)		(7.8	)
Other non-recurring gains (losses)		(26.8	)		(110.6	)		83.7
Ordinary profit		478.1			730.6			(252.4	)
Net extraordinary gains		210.0			500.9			(290.9	)
Reversal of allowance for loan losses (3)		172.2			445.8			(273.5	)
Income before income taxes		688.1			1,231.6			(543.4	)
Income taxes-current		13.2			15.3			(2.1	)
Income taxes-deferred		180.5			297.0			(116.4	)
Net income		494.4			919.2			(424.8	)
(Reference)
Total credit costs (1)+(2)+(3)		73.1			375.2			(302.0	)

 

5

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Mitsubishi UFJ Financial Group, Inc.

[Mitsubishi UFJ Trust and Banking Corporation : Non-consolidated]

Note:

The following financial results for the nine months ended December 31, 2005 represent the aggregated figures of former The Mitsubishi Trust and Banking Corporation (from April 2005 to September 2005), former UFJ Trust Bank Limited (from April 2005 to September 2005) and Mitsubishi UFJ Trust and Banking Corporation (from October 2005 to December 2005).

 

		(in billions of yen)
		For the nine months ended December 31, 2006 (A)			For the nine months ended December 31, 2005 (B)			(A)-(B)
Gross profits		330.4			321.9			8.5
(Gross profits before credit costs for trust accounts)		330.5			322.8			7.6
Net interest income		159.1			141.0			18.0
Trust fees		82.0			68.2			13.8
Credit costs for trust accounts (1)		(0.0	)		(0.9	)		0.8
Net fees and commissions		93.6			96.4			(2.8	)
Net trading profits (losses)		12.9			(5.4	)		18.4
Net other business income (expenses)		(17.2	)		21.7			(38.9	)
Net gains (losses) on debt securities		(10.9	)		15.2			(26.1	)
General and administrative expenses		149.7			160.5			(10.8	)
Net business profits before provision for general allowance for loan losses and credit costs for trust accounts		180.8			162.2			18.5
Provision for general allowance for loan losses (2)		—			—			—
Net business profits		180.7			161.3			19.4
Net non-recurring gains (losses)		4.2			(7.5	)		11.8
Credit related costs (3)		9.4			(27.9	)		37.4
Losses on loan write-offs		(0.7	)		(18.4	)		17.7
Provision for specific allowance for loan losses		—			—			—
Other credit related costs		10.2			(9.5	)		19.7
Net gains (losses) on equity securities		0.6			25.6			(24.9	)
Gains on sales of equity securities		8.2			30.5			(22.3	)
Losses on sales of equity securities		(0.5	)		(1.7	)		1.1
Losses on write down of equity securities		(6.9	)		(3.2	)		(3.7	)
Other non-recurring gains (losses)		(5.8	)		(5.2	)		(0.6	)
Ordinary profit		185.0			153.7			31.2
Net extraordinary gains		36.1			55.9			(19.8	)
Reversal of allowance for loan losses (4)		31.9			53.2			(21.3	)
Income before income taxes		221.1			209.7			11.4
Income taxes-current		0.3			(2.8	)		3.1
Income taxes-deferred		45.5			86.6			(41.1	)
Net income		175.2			125.8			49.3
(Reference)
Total credit costs (1)+(2)+(3)+(4)		41.3			24.3			16.9

 

6

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Mitsubishi UFJ Financial Group, Inc.

2. Non-performing Loans Based on the Financial Reconstruction Law

[BTMU and MUTB combined, including Trust accounts]

Note:

The following non-performing loans as of December 31, 2006 and March 31, 2006 represent the aggregated figures of The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mitsubishi UFJ Trust and Banking Corporation and those as of December 31, 2005 represent the aggregated figures of former The Bank of Tokyo-Mitsubishi, Ltd., former UFJ Bank Limited and Mitsubishi UFJ Trust and Banking Corporation.

 

		(in billions of yen)
		As of December 31, 2006			As of December 31, 2005			As of March 31, 2006 (Reference)
Bankrupt and De facto Bankrupt		122.1			177.6			152.3
Doubtful		455.2			1,141.2			749.4
Special Attention		619.9			905.5			924.1
Total Non Performing Loans (A)		1,197.4			2,224.4			1,825.9
Total Loans (B)		89,682.0			92,140.0			88,098.2
Non-performing Loans Ratio (A) / (B)		1.33	%		2.41	%		2.07	%

[The Bank of Tokyo-Mitsubishi UFJ, Ltd.: Banking accounts, Non-Consolidated]

Note:

The following non-performing loans as of December 31, 2005 represent the aggregated figures of former The Bank of Tokyo-Mitsubishi, Ltd. and former UFJ Bank Limited.

 

		(in billions of yen)
		As of December 31, 2006			As of December 31, 2005			As of March 31, 2006 (Reference)
Bankrupt and De facto Bankrupt		111.3			147.9			128.9
Doubtful		417.9			996.4			683.0
Special Attention		514.9			772.5			800.8
Total Non Performing Loans (A)		1,044.2			1,916.9			1,612.8
Total Loans (B)		79,374.4			80,640.3			77,264.6
Non-performing Loans Ratio (A) / (B)		1.31	%		2.37	%		2.08	%

[Mitsubishi UFJ Trust and Banking Corporation : Banking accounts, Non-Consolidated]

 

		(in billions of yen)
		As of December 31, 2006			As of December 31, 2005			As of March 31, 2006 (Reference)
Bankrupt and De facto Bankrupt		10.6			29.5			23.2
Doubtful		37.0			144.4			66.0
Special Attention		103.9			132.0			122.3
Total Non Performing Loans (A)		151.6			306.0			211.7
Total Loans (B)		10,133.5			11,287.7			10,644.2
Non-performing Loans Ratio (A) / (B)		1.49	%		2.71	%		1.98	%

[Mitsubishi UFJ Trust and Banking Corporation : Trust accounts]

 

		(in billions of yen)
		As of December 31, 2006			As of December 31, 2005			As of March 31, 2006 (Reference)
Bankrupt and De facto Bankrupt		0.2			0.1			0.1
Doubtful		0.3			0.3			0.2
Special Attention		0.9			0.9			0.9
Total Non Performing Loans (A)		1.4			1.4			1.3
Total Loans (B)		174.0			211.9			189.4
Non-performing Loans Ratio (A) / (B)		0.84	%		0.68	%		0.71	%

Note:

The above figures are classified by the claims category under Article 4 of “Regulation Rules of the Law relating to Emergency Measures for Revitalization of Financial Systems”. The results of the self-assessment as of December 31, 2006 and as of December 31, 2005 are reflected in the figures for each fiscal period, except with respect to assets which are not material.

 

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Mitsubishi UFJ Financial Group, Inc.

3. Risk-Adjusted Capital Ratio Based on the BIS Standards

 

[Mitsubishi UFJ Financial Group, Inc. consolidated]		(in billions of yen except percentages)
		As of December 31, 2006 (Preliminary basis)			As of March 31, 2006 (Reference)
(1) Risk-adjusted capital ratio		12.17	%		12.20	%
Risk-adjusted Tier 1 capital ratio		6.88	%		6.80	%
(2) Tier 1 capital		7,911.1			7,501.6
(3) Qualified Tier 2 capital		6,384.7			6,293.7
i) The amount of unrealized gains on investment securities		1,412.4			1,343.1
ii) The amount of land revaluation excess		160.9			162.1
iii) Subordinated debt		3,939.7			3,786.6
(4) Qualified Tier 3 capital		—			—
(5) Deductions from total qualified capital		310.3			334.9
(6) Total qualified capital (2)+(3)+(4)-(5)		13,985.5			13,460.3
(7) Risk-adjusted assets		114,877.0			110,292.6
4. Return on Equity
[Mitsubishi UFJ Financial Group, Inc. consolidated]
		(%)
		For the Nine months ended December 31, 2006			For the Fiscal year ended March 31, 2006 (Reference)
ROE *		15.92			16.58

Note: * ROE is computed as follows:

[For the nine months ended December 31, 2006]

 

(Net income for the nine months × 4 ÷3) - Equivalent of annual dividends on nonconvertible preferred stock		× 100
{(Shareholders’ equity at the beginning of the period - Number of nonconvertible preferred stock at the beginning of the period × Issue price + Foreign currency translation adjustments at the beginning of the period) + (Shareholders’ equity at the end of the period - Number of nonconvertible preferred stock at the end of the period × Issue price + Foreign currency translation adjustments at the end of the period)} / 2

[For the fiscal year ended March 31, 2006]

 

Net income - Dividends on nonconvertible preferred stock		× 100
{(Shareholders’ equity at the beginning of the period - Number of nonconvertible preferred stock at the beginning of the period × Issue price - Land revaluation excess at the beginning of the period - Unrealized gains (losses) on securities available for sale at the beginning of the period) + (Shareholders’ equity at the end of the period - Number of nonconvertible preferred stock at the end of the period × Issue price - Land revaluation excess at the end of the period - Unrealized gains (losses) on securities available for sale at the end of the period)} / 2

 

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Mitsubishi UFJ Financial Group, Inc.

5. Fair Value Information on Investment Securities

[Mitsubishi UFJ Financial Group, Inc. consolidated]

Following tables include:

“Investment securities”, Negotiable certificates of deposits in “Cash and due from banks”, Beneficiary certificates of commodity investment trusts in “Commercial paper and other debt purchased” and others.

Net unrealized gains (losses) are determined based on the fair values at the end of the fiscal period.

 

		(in billions of yen)
		As of December 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable debt securities being held to maturity		3,299.2		(3.4	)		6.4		9.9
		(in billions of yen)
		As of December 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable securities available for sale		43,375.3		3,116.7			3,484.9		368.2
Equity securities		7,473.0		3,009.9			3,126.9		116.9
Bonds		22,922.4		(111.0	)		8.8		119.9
Other		12,979.8		217.8			349.1		131.3
		(in billions of yen)
		As of December 31, 2005
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable debt securities being held to maturity		2,560.3		9.7			12.2		2.4
		(in billions of yen)
		As of December 31, 2005
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable securities available for sale		45,888.7		2,653.9			2,835.3		181.3
Equity securities		6,923.9		2,498.0			2,505.4		7.3
Bonds		26,955.7		(38.4	)		23.3		61.8
Other		12,009.0		194.3			306.5		112.1
(Reference)
		(in billions of yen)
		As of March 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable debt securities being held to maturity		2,808.6		(14.5	)		3.6		18.2
		(in billions of yen)
		As of March 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable securities available for sale		42,663.8		2,953.2			3,339.7		386.4
Equity securities		7,466.1		2,980.8			2,996.1		15.2
Bonds		25,411.6		(210.1	)		7.2		217.4
Other		9,785.9		182.5			336.3		153.7

 

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Mitsubishi UFJ Financial Group, Inc.

[The Bank of Tokyo-Mitsubishi UFJ, Ltd. : Non-consolidated]

Following tables include:

“Investment securities”, Negotiable certificates of deposits in “Cash and due from banks”, Beneficiary certificates of commodity investment trusts in “Commercial paper and other debt purchased” and others.

Net unrealized gains (losses) are determined based on the fair values at the end of the fiscal period.

The amounts presented as of December 31, 2005 are amounts from The Bank of Tokyo-Mitsubishi, Ltd.

 

		(in billions of yen)
		As of December 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable debt securities being held to maturity		2,359.4		(7.2	)		0.0		7.2
		(in billions of yen)
		As of December 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable stocks of subsidiaries and affiliated companies		501.5		628.3			631.3		2.9
		(in billions of yen)
		As of December 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable securities available for sale		35,624.8		2,168.4			2,478.1		309.6
Equity securities		5,925.6		2,052.1			2,165.0		112.8
Bonds		20,097.4		(106.0	)		5.2		111.3
Other		9,601.7		222.3			307.7		85.4
		(in billions of yen)
		As of December 31, 2005
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable debt securities being held to maturity		2,313.7		5.6			6.3		0.7
		(in billions of yen)
		As of December 31, 2005
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable stocks of subsidiaries and affiliated companies		196.2		551.1			551.1		—
		(in billions of yen)
		As of December 31, 2005
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable securities available for sale		23,916.3		1,698.1			1,816.8		118.6
Equity securities		3,433.9		1,620.8			1,634.7		13.9
Bonds		14,662.8		(38.5	)		8.5		47.0
Other		5,819.5		115.8			173.4		57.6
(Reference)
		(in billions of yen)
		As of March 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable debt securities being held to maturity		2,369.3		(13.1	)		0.0		13.1
		(in billions of yen)
		As of March 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable stocks of subsidiaries and affiliated companies		504.0		1,280.4			1,280.4		—
		(in billions of yen)
		As of March 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable securities available for sale		35,542.1		1,988.1			2,303.3		315.1
Equity securities		5,879.4		2,001.5			2,026.1		24.5
Bonds		22,853.9		(182.7	)		4.1		186.9
Other		6,808.6		169.3			273.0		103.6

 

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Mitsubishi UFJ Financial Group, Inc.

[Mitsubishi UFJ Trust and Banking Corporation : Non-consolidated]

Following tables include:

“Investment securities”, Beneficiary certificates of commodity investment trusts in “Commercial paper and other debt purchased” and others.

Net unrealized gains (losses) are determined based on the fair values at the end of the fiscal period.

 

		(in billions of yen)
		As of December 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable debt securities being held to maturity		812.7		5.2			5.2		0.0
		(in billions of yen)
		As of December 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable securities available for sale		5,921.3		612.1			650.2		38.1
Equity securities		1,452.3		593.0			616.0		22.9
Bonds		2,416.0		(0.9	)		3.7		4.6
Other		2,052.8		20.0			30.5		10.5
		(in billions of yen)
		As of December 31, 2005
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable debt securities being held to maturity		118.4		3.7			3.7		—
		(in billions of yen)
		As of December 31, 2005
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable securities available for sale		5,288.4		579.9			605.1		25.2
Equity securities		1,406.6		537.9			544.2		6.3
Bonds		2,124.4		(3.8	)		8.8		12.6
Other		1,757.3		45.8			52.0		6.1
(Reference)
		(in billions of yen)
		As of March 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable debt securities being held to maturity		314.2		0.3			1.9		1.6
		(in billions of yen)
		As of March 31, 2006
		Balance sheet amount		Net unrealized gains (losses)			Gains		Losses
Marketable securities available for sale		5,295.4		635.0			679.2		44.1
Equity securities		1,483.8		615.1			619.5		4.3
Bonds		2,091.5		(22.7	)		3.9		26.6
Other		1,720.0		42.6			55.7		13.0

 

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Mitsubishi UFJ Financial Group, Inc.

6. Deferred Gains (Losses) with Derivatives

[Mitsubishi UFJ Financial Group, Inc. consolidated]

 

		(in billions of yen)
		As of December 31, 2006
		Deferred gains (A)		Deferred losses (B)		Net deferred gains (losses) (A) - (B)
Interest rate futures		5.4		9.4		(4.0	)
Interest rate swaps		227.2		346.8		(119.6	)
Currency swaps		222.2		216.7		5.4
Other interest rate-related transactions		—		0.3		(0.3	)
Other		—		—		—
Total		454.8		573.4		(118.6	)

Notes:

 

1.

Deferred gains (losses) which are accounted for on an accrual basis based on “Accounting standards for financial instruments” are not included in the above table.

 

2.

Deferred gains (losses) attributable to the macro hedge accounting are included in the above table.

 

		(in billions of yen)
		As of December 31, 2005
		Deferred gains (A)		Deferred losses (B)		Net deferred gains (losses) (A) - (B)
Interest rate futures		5.7		9.4		(3.7	)
Interest rate swaps		230.9		255.8		(24.9	)
Currency swaps		49.1		52.5		(3.3	)
Other interest rate-related transactions		1.0		0.9		0.1
Other		1.0		2.8		(1.8	)
Total		287.8		321.6		(33.7	)

Notes:

 

1.

Deferred gains (losses) which are accounted for on an accrual basis based on “Accounting standards for financial instruments” are not included in the above table.

 

2.

Deferred gains (losses) attributable to the macro hedge accounting are included in the above table.

(Reference)

 

		(in billions of yen)
		As of March 31, 2006
		Deferred gains (A)		Deferred losses (B)		Net deferred gains (losses) (A) - (B)
Interest rate futures		5.0		12.1		(7.0	)
Interest rate swaps		224.1		435.7		(211.5	)
Currency swaps		46.7		43.3		3.3
Other interest rate-related transactions		0.2		0.5		(0.2	)
Other		5.8		0.6		5.2
Total		282.0		492.4		(210.3	)

Notes:

 

1.

Deferred gains (losses) which are accounted for on an accrual basis based on “Accounting standards for financial instruments” are not included in the above table.

 

2.

Deferred gains (losses) attributable to the macro hedge accounting are included in the above table.

 

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Mitsubishi UFJ Financial Group, Inc.

Notes:

The following “BTMU and MUTB combined” results as of December 31, 2006 and March 31, 2006 shown in sections 7 to 10 below represent the aggregated figures of The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mitsubishi UFJ Trust and Banking Corporation and those as of December 31, 2005 represent the aggregated figures of former The Bank of Tokyo-Mitsubishi, Ltd., former UFJ Bank Limited and Mitsubishi UFJ Trust and Banking Corporation.

7. Loans and Deposits [ BTMU and MUTB combined ]

 

		(in billions of yen)
		As of December 31, 2006		As of December 31, 2005		As of March 31, 2006 (Reference)
Deposits (ending balance)		109,885.4		112,367.5		112,981.8
Deposits (average balance)		110,124.4		112,635.5		112,352.6
Loans (ending balance)		80,639.5		81,541.2		79,978.5
Loans (average balance)		79,923.1		80,388.7		80,382.3

 

Note:

The average balances as of December 31, 2005 and March 31, 2006 include the figures of former UFJ Bank Limited and former UFJ Trust Bank Limited.

8. Domestic Deposits [ BTMU and MUTB combined ]

 

 

		(in billions of yen)
		As of December 31, 2006		As of December 31, 2005		As of March 31, 2006 (Reference)
Individuals		61,112.0		61,250.4		60,217.8
Corporations and other		38,275.6		40,548.4		42,719.4
Domestic deposits		99,387.6		101,798.8		102,937.2

 

Note:

Amounts do not include negotiable certificates of deposits and Japan Off-shore market accounts.

9. Domestic Consumer Loans

[ BTMU and MUTB combined : Banking accounts ]

 

		(in billions of yen)
		As of December 31, 2006		As of December 31, 2005		As of March 31, 2006 (Reference)
Total domestic consumer loans		18,450.7		19,918.9		19,438.1
Residential mortgages		17,268.0		18,560.9		18,145.7
Other		1,182.7		1,357.9		1,292.4

 

[Mitsubishi UFJ Trust and Banking Corporation : Trust accounts]
		(in billions of yen)
		As of December 31, 2006		As of December 31, 2005		As of March 31, 2006 (Reference)
Total domestic consumer loans		94.1		102.3		100.5
Residential mortgages		92.8		100.7		98.9
Other		1.2		1.6		1.5

10. Domestic Loans to Small and Medium-sized Companies

 

[ BTMU and MUTB combined : Banking accounts ]
		(in billions of yen)
		As of December 31, 2006			As of December 31, 2005			As of March 31, 2006 (Reference)
Domestic loans to small and medium-sized companies		44,243.6			44,765.5			44,652.9
Percentage to total domestic loans		62.61	%		60.81	%		62.56	%

 

Note:

The amount for December 31, 2006 and March 31, 2006 do not include loans to Mitsubishi UFJ Financial Group, Inc.

The amount for December 31, 2005 includes ¥276.9 billion of loans to Mitsubishi UFJ Financial Group, Inc. made by former UFJ Bank Limited.

 

[Mitsubishi UFJ Trust and Banking Corporation : Trust accounts]
		(in billions of yen)
		As of December 31, 2006			As of December 31, 2005			As of March 31, 2006 (Reference)
Domestic loans to small and medium-sized companies		272.6			278.8			280.7
Percentage to total domestic loans		82.03	%		74.44	%		80.21	%

 

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Mitsubishi UFJ Financial Group, Inc.

11. Status of Deferred Tax Assets

Tax Effects of the Items Comprising Net Deferred Tax Assets [ BTMU and MUTB combined ]

 

		(in billions of yen)
		As of December 31, 2006		Changes from March 31, 2006
Deferred tax assets		1,832.6		(194.3	)
Allowance for loan losses		472.0		(123.9	)
Write-down on investment securities		380.3		(43.5	)
Net operating loss carryforwards		1,120.5		(199.5	)
Reserve for employees’ retirement benefits		99.8		(17.1	)
Other		480.8		86.5
(-)Valuation allowance		720.8		(103.2	)
Deferred tax liabilities		1,481.4		47.1
Gains on placing trust for retirement benefits		48.6		1.4
Unrealized gains on securities available for sale		1,135.3		63.1
Other		297.4		(17.4	)
Net deferred tax assets		351.2		(241.5	)

Ratio of Tier 1 capital to Net deferred tax assets [Mitsubishi UFJ Financial Group, Inc. consolidated]

 

		(in billions of yen except percentages)
		As of December 31, 2006			Changes from March 31, 2006
Net deferred tax assets		311.6			(311.5	)
Percent of Tier 1 Capital		3.9	%		(4.3	)%

 

14