Form 6-K

 

 

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 2015

Commission File No. 000-54189

 

 

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

 

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

Tokyo 100-8330, Japan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or

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

Form 20-F      X      Form 40-F              

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

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

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

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

 

 

 


SIGNATURES

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

Date: May 15, 2015

 

Mitsubishi UFJ Financial Group, Inc.
By:  

/s/ Akira Takeda

Name:   Akira Takeda
Title:  

Chief Manager, General Affairs

Corporate Administration Division


LOGO

Consolidated Summary Report

<under Japanese GAAP>

for the fiscal year ended March 31, 2015

May 15, 2015

 

Company name:

   Mitsubishi UFJ Financial Group, Inc.

Stock exchange listings:

   Tokyo, Nagoya, New York

Code number:

   8306

URL

   http://www.mufg.jp/

Representative:

   Nobuyuki Hirano, President & CEO

For inquiry:

  

Hiroshi Fukunaga, General Manager - Financial Planning Division / Financial Accounting Office

   TEL (03) 3240-3110

General meeting of shareholders:

   June 25, 2015

Dividend payment date:

   June 25, 2015

Securities report issuing date:

   June 25, 2015

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, 2015

 

(1) Results of Operations

 

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

Fiscal year ended

                 

March 31, 2015

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

March 31, 2014

     5,176,102         8.7        1,694,820         26.1        984,845         15.5  

 

(*) Comprehensive income

                   March 31, 2015: 3,455,231 million yen     102.2%                ;         March 31, 2014: 1,708,923 million yen     (16.3)%

 

     Net Income
per Common Stock
     Diluted Net Income
per Common Stock
     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, 2015

     73.22         72.94        7.4        0.6        30.4  

March 31, 2014

     68.29         68.04        8.1        0.7        32.7  

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

                   March 31, 2015: 159,637 million yen;         March 31, 2014: 112,470 million yen

 

(2) Financial Conditions

 

     Total Assets      Total Net Assets      Net Assets Attributable to
MUFG Shareholders
to Total Assets (*)
     Total Net Assets
per Common Stock
 
     million yen      million yen      %      yen  

As of

           

March 31, 2015

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

March 31, 2014

     258,131,946         15,112,895         5.1        893.77   

(Reference) Shareholders’ equity as of     March 31, 2015: 15,317,940 million yen;     March 31, 2014: 13,056,060 million yen

 

  (*) “Net assets attributable to MUFG shareholders to total assets” is computed under the formula shown below
    (Total net assets - Subscription rights to shares - Minority interests) / Total assets

 

(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, 2015

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

March 31, 2014

     (4,089,035     6,001,400        (1,007,086     6,487,918   

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, 2014

     —           7.00         —           9.00         16.00         226,619         23.4        1.9  

ended March 31, 2015

     —           9.00         —           9.00         18.00         253,695         24.6        1.8  

ending March 31, 2016 (Forecast)

     —           9.00         —           9.00         18.00         ——         26.6        ——   

 

(*) 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, 2016 (Consolidated)

MUFG has set an earnings target of 950.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2016.

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: Yes

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

(C) Changes in accounting estimates: No

(D) Restatements: No

Note: For more details, please see “Change in Accounting Policies” in page 27 of Appendix.

 

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

 

(A) Total stocks outstanding including treasury stocks:

   March 31, 2015      14,168,853,820 shares   
   March 31, 2014      14,164,026,420 shares   

(B) Treasury stocks:

   March 31, 2015      151,014,803 shares   
   March 31, 2014      2,554,673 shares   

(C) Average outstanding stocks:

   Fiscal year ended March 31, 2015      14,119,202,720 shares   
   Fiscal year ended March 31, 2014      14,159,590,678 shares   

(Reference) Summary of non-consolidated financial data

1. Non-consolidated Financial Data for the Fiscal Year ended March 31, 2015

(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, 2015

     585,805         126.5         564,394         135.4        551,691         143.5         553,400         128.9   

March 31, 2014

     258,686         16.7         239,799         16.9         226,553         19.0         241,732         28.5   
     Net Income
per Common Stock
     Diluted Net Income
per Common Stock
                             
     yen      yen                              

Fiscal year ended

                       

March 31, 2015

     39.19        39.14              

March 31, 2014

     15.80        15.78              

(2) Financial Conditions

 

     Total Assets      Total Net Assets      Net Assets Ratio      Total Net Assets
per Common Stock
 
     million yen      million yen      %      yen  

As of

           

March 31, 2015

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

March 31, 2014

     10,932,276         8,623,215        78.8         580.04  

 

(Reference) Shareholders’ equity as of March 31, 2015: 8,349,679 million yen;    March 31, 2014: 8,614,482 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 2014 and 2015

     4   

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

     5   

3.     Management Policy

     8   

(1) Principal management policy

     8   

(2) Medium- and long-term management strategy

     8   

(3) Key issues

     9   

(4) Management Target

     11   

4.     Basic Views on Selection of Accounting Standards

     11   

5.     Consolidated Financial Statements

     12   

(1) Consolidated Balance Sheets

     12   

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

     14   

(3) Consolidated Statements of Changes in Net Assets

     17   

(4) Consolidated Statements of Cash Flows

     19   

Notes to the Consolidated Financial Statements

     21   

Notes on Going-Concern Assumption

  

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

  

Change in Accounting Policies

  

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

  

Business Combinations

  

Segment Information

  

Per Share Information

  

6.     Non-consolidated Financial Statements

     45   

(1) Non-consolidated Balance Sheets

     45   

(2) Non-consolidated Statements of Income

     47   

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

     48   

Notes on Going-Concern Assumption

     50   

7.     Other

     50   

(1) Changes of Directors and Corporate Auditors

     50   

Supplemental Information:

“Selected Financial Information under Japanese GAAP For the fiscal year ended March 31, 2015”

 

(*) 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 15, 2015 (Friday)
Explanation for investors and analysts:    May 22, 2015 (Friday)

 

1


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, 2015)

Global economy showed gradual recovery during the fiscal year ended March 31, 2015, despite some events which increased financial and economic uncertainties, such as a sudden decrease in oil price. The U.S. economy, led by the domestic demand, maintained the momentum of recovery reflecting an improvement in employment environment, which caused the U.S. equity market to show upward trend throughout the period. European countries kept struggling with the fiscal and financial structural issues and the regional economy remained sluggish, although some signs of improvement can be observed recently. Asian countries showed a stable economic growth reflecting strong consumer expenditures in the ASEAN (Association of South-East Asian Nations) countries, despite a slowdown in Chinese economy. Amidst such conditions, Japanese economy kept gradual recovery overcoming an adverse impact of an increase in the consumption tax rate in April 2014. Private consumption in Japan, especially in the first half of the fiscal year ended March 31, 2015, was strongly affected by the higher tax rate, but its negative effect lessened towards the end of the fiscal year. Capital expenditure in Japan increased reflecting higher corporate earnings taking advantage of the depreciation of the Japanese yen against major currencies such as the U.S. dollar during the period.

The Federal Reserve terminated its asset purchase operations while keeping its policy rate at a historical low level. The European Central Bank further loosened its monetary policy by cutting the policy rates, introducing negative interest rates on excess reserve balances deposited to the central banks, and beginning to purchase assets such as sovereign bonds issued by the European countries, in order to tackle with the deflation risk in the region. The Bank of Japan expanded its quantitative and qualitative easing measures in October 2014 in order to achieve its targeted inflation rate of 2%. In the circumstances, the interest rates in Japan remained low during the period and hit a historical low level of below 0.2% in January 2015. The Japanese yen was depreciated further against the U.S. dollar especially in the second half of the fiscal year ended March 31, 2015. Japanese equity market remained firm to hit 19,000 yen level, reflecting improvements in the corporate earnings and the strong U.S. equity market.

Under such business environment, consolidated gross profits for the fiscal year ended March 31, 2015 increased 475.5 billion yen from the previous fiscal year to 4,229.0 billion yen. This was mainly due to increases in net interest income from overseas loan businesses and net fees and commissions from sales of investment products and investment banking business, as well as a positive impact of the consolidation of Bank of Ayudhya (Krungsri), despite tighter domestic deposit-loan margin. General and administrative (G&A) expenses for the fiscal year ended March 31, 2015 increased 294.7 billion yen from the previous fiscal year, mainly due to an increase in costs in overseas businesses as well as due to the consolidation of Krungsri. The increase in the consumption tax rate in Japan also contributed to the increase in G&A expenses. As a result, net business profits were 1,644.9 billion yen, an increase of 180.8 billion yen from the previous fiscal year.

 

2


Mitsubishi UFJ Financial Group, Inc.

 

Total credit costs for the fiscal year ended March 31, 2015 increased 173.5 billion yen from the previous fiscal year, mainly due to an increase in provision for allowance for credit losses. Net gains (losses) on equity securities decreased 51.4 billion yen from the previous fiscal year, mainly due to a decrease in gains on sales of equity securities.

As a result, ordinary profits for the fiscal year ended March 31, 2015 were 1,713.0 billion yen, an increase of 18.1 billion yen from the previous fiscal year, and consolidated net income for the fiscal year ended March 31, 2015 was 1,033.7 billion yen, an increase of 48.9 billion yen from the previous fiscal year.

 

(in billions of Japanese yen)    For the fiscal  year
ended
March 31, 2015
    For the fiscal  year
ended
March 31, 2014
    Increase
(Decrease)
 

Gross Profits
before credit costs for trust accounts

     4,229.0        3,753.4        475.5   

General and administrative expenses

     2,584.1        2,289.3        294.7   

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

     1,644.9        1,464.1        180.8   

Credit costs

     (227.8     (133.8     (93.9

Net gains (losses) on equity securities

     93.1        144.5        (51.4

Other non-recurring gains (losses)

     202.8        219.9        (17.1

Profits (Losses) from investments in affiliates

     159.6        112.4        47.1   

Ordinary profits

     1,713.0        1,694.8        18.1   

Net extraordinary gains (losses)

     (98.2     (151.7     53.5   

Total of income taxes-current and income taxes-deferred

     (467.7     (439.9     (27.7

Minority interests

     (113.2     (118.1     4.9   

Net income (losses)

     1,033.7        984.8        48.9   

Total credit costs *1

     (161.6     11.8        (173.5

 

*1 Included gains on loans written-offs

(Earnings Target for the fiscal year ending March 31, 2016)

MUFG has set an earnings target of 950.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2016.

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, 2015 increased 28,017.8 billion yen from March 31, 2014 to 286,149.7 billion yen, and total net assets as of March 31, 2015 increased 2,174.6 billion yen from March 31, 2014 to 17,287.5 billion yen. The increase in total net assets was mainly due to increases in retained earnings and net unrealized gains on other securities.

 

3


Mitsubishi UFJ Financial Group, Inc.

 

With regard to major items of assets, securities as of March 31, 2015 decreased 977.3 billion yen from March 31, 2014 to 73,538.1 billion yen and loans and bills discounted as of March 31, 2015 increased 7,429.4 billion yen from March 31, 2014 to 109,368.3 billion yen. With regard to major items of liabilities, deposits as of March 31, 2015 increased 8,597.1 billion yen from March 31, 2014 to 153,357.4 billion yen.

With regard to MUFG’s consolidated risk-adjusted capital ratio based on the Basel 3 Standards as of March 31, 2015, Common Equity Tier 1 capital ratio was 11.14%, Tier 1 ratio was 12.62% and Total capital ratio was 15.68%.

(3)  Basic policy regarding profit distribution and dividends for fiscal years 2014 and 2015

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 2014, MUFG plans to pay ¥9 per share. As a result, the annual dividend for fiscal year 2014, including the interim dividend of ¥9 per share, is expected to be ¥18 per share, which is an increase of ¥2 from the annual dividend of ¥16 paid for the previous fiscal year.

The annual dividend forecast for common stock for fiscal year 2015 is ¥18 per share, which is the same amount as the annual dividend to be paid for fiscal year 2014.

 

4


Mitsubishi UFJ Financial Group, Inc.

 

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

MUFG Group comprises the holding company, 226 consolidated subsidiaries, and 62 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 reporting of its main entities (on a consolidated basis) on a segmental basis and the relationships between MUFG and its major related companies are as shown in the chart below.

 

LOGO

 

*1. On April 1, 2015 Kabu.com Securities Co., Ltd. underwent a share transfer within the MUFG Group, becoming a subsidiary of Mitsubishi UFJ Securities Holdings Co., Ltd., from its former position as a subsidiary of the Bank of Tokyo-Mitsubishi UFJ, Ltd.
*2. On July 1, 2015 Mitsubishi UFJ Asset Management Co., Ltd. and KOKUSAI Asset Management Co., Ltd. plan to merge to become Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
*3. 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 integrated business groups has been introduced under which the group formulates a unified strategy and pursues its business based on coordination between group companies.

 

LOGO

 

6


Mitsubishi UFJ Financial Group, Inc.

 

On June 25, 2015, subject to approval by its General Meeting of Shareholders, MUFG plans to change its corporate structure from being a company with a board of corporate auditors to a company with three committees. In addition, on July 3, 2015 it will undergo a structural reorganization, with the new structure outlined as follows.

 

LOGO

** The Nominating and Governance Committee is a nomination committee under the Companies Act.

 

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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 our 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

 

LOGO

(2)  Medium- and long-term management strategy

The operating environment for financial institutions is transforming substantially amidst such trends as the changes in consumption patterns stemming from the aging of the Japanese population and its declining birthrate and the advance of information and communications technology. It is crucial to the further progress of the MUFG Group for us to maintain an accurate understanding of such changes, and undertake the evolution and reformation of 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 the new 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 new 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 steadily advancing the new medium-term business plan, the MUFG 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 2014, despite the downturn in consumer spending following the consumption tax hike, steady progress was made toward the recovery of the Japanese economy, which was supported by initiatives of government growth strategies as well as by strong corporate performance. In this environment, the MUFG Group finished up the medium-term business plan launched in fiscal 2012 through a concerted, Group-wide effort.

In fiscal 2015, the first year of the new medium-term business plan, MUFG will work to quickly build the foundations that will be needed to ensure the success of the plan and steadily advance its new measures centered on the following priority tasks.

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 assets management and administration services and asset inheritance support 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 our M&A advisory service functions to respond to the rising number of business transferences and bolstering our 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, the MUFG Group 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 we will establish a unique global Corporate & Investment Banking (CIB)*1 model to aid us in this endeavor. As part of this process, we will consolidate the Group’s sector-specific expertise while deepening strategic collaboration with Morgan Stanley.

In sales and trading operations*2, we intend to leverage the strengths and specialties of Group companies 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 firm 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. 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.

In regard to Group administration practices, after receiving shareholder approval, MUFG will be converted into a company with three committees to further strengthen corporate governance systems, and governance will also be enhanced 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 placing maintaining a strong capital base as the first priority. We will also diversify funding methods in consideration of global financial regulations.

Communication with outside 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 as well as to helping us fulfill our corporate social responsibility.

 

10


Mitsubishi UFJ Financial Group, Inc.

 

(4)  Management Target

MUFG has set an earnings target of 950.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2016.

[Reference]

MUFG Consolidated

 

(in billions of Japanese yen)   For the fiscal  year
ending
March 31, 2016
    For the six months
ending
September 30, 2015
    For the fiscal  year
ended
March 31, 2015
(Results)
    For the six  months
ended
September 30,  2014
(Results)
 

Total credit costs

    (130.0     (55.0     (161.6     41.1   

Ordinary profits

    1,560.0        790.0        1,713.0        949.8   

Profits attributable to owners of parent

    950.0        450.0        1,033.7        578.7   

<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

    765.0        385.0        931.4        490.6   

Total credit costs

    0.0        5.0        (70.7     66.9   

Ordinary profits

    770.0        395.0        902.6        547.2   

Profits attributable to owners of parent

    530.0        275.0        571.7        354.4   

Mitsubishi UFJ Trust and Banking Corporation

       

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

    175.0        80.0        190.4        88.9   

Total credit costs

    (10.0     (5.0     (0.4     9.3   

Ordinary profits

    170.0        75.0        210.0        110.1   

Profits attributable to owners of parent

    115.0        50.0        140.7        73.3   

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.

 

11


Mitsubishi UFJ Financial Group, Inc.

 

5. Consolidated Financial Statements

(1) Consolidated Balance Sheets

 

(in millions of yen)    As of
March 31, 2014
    As of
March 31, 2015
 

Assets:

    

Cash and due from banks

     23,969,883        40,488,318   

Call loans and bills bought

     826,851        604,625   

Receivables under resale agreements

     7,237,125        7,342,335   

Receivables under securities borrowing transactions

     4,181,660        4,633,544   

Monetary claims bought

     3,972,145        4,570,712   

Trading assets

     19,055,354        20,810,617   

Money held in trust

     583,692        700,218   

Securities

     74,515,573        73,538,191   

Loans and bills discounted

     101,938,907        109,368,340   

Foreign exchanges

     2,040,406        2,187,311   

Other assets

     8,809,286        10,119,936   

Tangible fixed assets

     1,540,031        1,352,727   

Buildings

     328,200        333,430   

Land

     744,755        744,416   

Lease assets

     14,096        11,181   

Construction in progress

     27,605        35,774   

Other tangible fixed assets

     425,372        227,924   

Intangible fixed assets

     1,483,352        1,297,277   

Software

     472,777        552,345   

Goodwill

     552,655        309,119   

Lease assets

     924        730   

Other intangible fixed assets

     456,995        435,082   

Net defined benefit assets

     460,836        504,761   

Deferred tax assets

     130,654        114,919   

Customers’ liabilities for acceptances and guarantees

     8,324,668        9,511,714   

Allowance for credit losses

     (938,483     (995,784
  

 

 

   

 

 

 

Total assets

     258,131,946        286,149,768   
  

 

 

   

 

 

 

 

12


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    As of
March 31, 2014
    As of
March 31, 2015
 

Liabilities:

    

Deposits

     144,760,294        153,357,410   

Negotiable certificates of deposit

     15,548,170        16,073,850   

Call money and bills sold

     3,465,414        3,600,104   

Payables under repurchase agreements

     21,626,590        21,899,506   

Payables under securities lending transactions

     5,534,643        8,205,350   

Commercial papers

     1,473,631        2,179,634   

Trading liabilities

     13,964,961        15,521,917   

Borrowed money

     10,828,601        13,866,196   

Foreign exchanges

     1,109,198        1,496,476   

Short-term bonds payable

     435,808        789,512   

Bonds payable

     7,165,577        8,141,713   

Due to trust accounts

     1,945,151        3,183,295   

Other liabilities

     5,965,086        9,530,371   

Reserve for bonuses

     78,987        90,360   

Reserve for bonuses to directors

     627        454   

Net defined benefit liabilities

     51,651        62,121   

Reserve for retirement benefits to directors

     1,201        1,086   

Reserve for loyalty award credits

     13,541        15,375   

Reserve for contingent losses

     247,351        204,790   

Reserves under special laws

     2,853        3,771   

Deferred tax liabilities

     320,014        988,550   

Deferred tax liabilities for land revaluation

     155,026        138,669   

Acceptances and guarantees

     8,324,668        9,511,714   
  

 

 

   

 

 

 

Total liabilities

     243,019,051        268,862,234   
  

 

 

   

 

 

 

Net assets:

    

Capital stock

     2,140,488        2,141,513   

Capital surplus

     2,174,384        1,428,403   

Retained earnings

     7,033,125        7,860,410   

Treasury stock

     (1,699     (101,661
  

 

 

   

 

 

 

Total shareholders’ equity

     11,346,299        11,328,666   
  

 

 

   

 

 

 

Net unrealized gains (losses) on other securities

     1,218,397        2,835,091   

Net deferred gains (losses) on hedging instruments

     8,295        83,194   

Land revaluation excess

     157,776        172,350   

Foreign currency translation adjustments

     407,229        951,547   

Remeasurements of defined benefit plans

     (81,937     (52,909
  

 

 

   

 

 

 

Total accumulated other comprehensive income

     1,709,760        3,989,274   
  

 

 

   

 

 

 

Subscription rights to shares

     8,732        8,271   

Minority interests

     2,048,101        1,961,322   
  

 

 

   

 

 

 

Total net assets

     15,112,895        17,287,533   
  

 

 

   

 

 

 

Total liabilities and net assets

     258,131,946        286,149,768   
  

 

 

   

 

 

 

 

13


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, 2014
     For the fiscal year
ended
March 31, 2015
 

Ordinary income

     5,176,102         5,638,402   

Interest income

     2,370,649         2,806,238   

Interest on loans and bills discounted

     1,598,033         1,835,445   

Interest and dividends on securities

     575,715         627,946   

Interest on call loans and bills bought

     10,493         11,813   

Interest on receivables under resale agreements

     47,372         53,712   

Interest on receivables under securities borrowing transactions

     6,651         9,237   

Interest on deposits

     46,741         63,470   

Other interest income

     85,641         204,612   

Trust fees

     107,935         111,916   

Fees and commissions

     1,344,241         1,508,698   

Trading income

     362,295         352,950   

Other business income

     467,214         407,668   

Other ordinary income

     523,766         450,930   

Reversal of allowance for credit losses

     86,543         —     

Gains on loans written-off

     59,208         64,735   

Others

     378,014         386,194   

Ordinary expenses

     3,481,282         3,925,400   

Interest expenses

     492,122         624,743   

Interest on deposits

     201,108         296,887   

Interest on negotiable certificates of deposit

     38,484         44,009   

Interest on call money and bills sold

     6,759         7,226   

Interest on payables under repurchase agreements

     36,022         39,075   

Interest on payables under securities lending transactions

     6,858         8,424   

Interest on commercial papers

     2,632         3,445   

Interest on borrowed money

     48,994         47,826   

Interest on short-term bonds payable

     561         661   

Interest on bonds payable

     100,183         132,499   

Other interest expenses

     50,516         44,686   

Fees and commissions

     183,904         200,094   

Trading expenses

     239         —     

Other business expenses

     223,152         133,275   

General and administrative expenses

     2,323,918         2,619,867   

Other ordinary expenses

     257,946         347,420   

Provision for allowance for credit losses

     —           62,012   

Others

     257,946         285,407   
  

 

 

    

 

 

 

Ordinary profits

     1,694,820         1,713,001   
  

 

 

    

 

 

 

 

14


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    For the fiscal year
ended
March 31, 2014
     For the fiscal year
ended
March 31, 2015
 

Extraordinary gains

     11,381         14,655   

Gains on disposition of fixed assets

     10,359         5,011   

Gains on change in equity

     —           9,643   

Gains on step acquisitions

     648         —     

Gains on transfer of benefit obligation relating to employees’ pension fund

     372         —     

Extraordinary losses

     163,170         112,899   

Losses on disposition of fixed assets

     7,863         9,938   

Losses on impairment of fixed assets

     126,924         11,487   

Provision for reserve for contingent liabilities from financial instruments transactions

     884         918   

Settlement package

     24,537         37,097   

Losses on change in equity

     790         33,291   

Losses on sales of equity securities of subsidiaries

     2,170         20,167   
  

 

 

    

 

 

 

Income before income taxes and others

     1,543,030         1,614,757   
  

 

 

    

 

 

 

Income taxes-current

     349,531         421,941   

Income taxes-deferred

     90,456         45,845   
  

 

 

    

 

 

 

Total taxes

     439,988         467,786   
  

 

 

    

 

 

 

Income before minority interests

     1,103,042         1,146,970   
  

 

 

    

 

 

 

Minority interests

     118,196         113,211   
  

 

 

    

 

 

 

Net income

     984,845         1,033,759   
  

 

 

    

 

 

 

 

15


Mitsubishi UFJ Financial Group, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in millions of yen)    For the fiscal year
ended
March 31, 2014
    For the fiscal year
ended
March 31, 2015
 

Income before minority interests

     1,103,042        1,146,970   

Other comprehensive income

    

Net unrealized gains (losses) on other securities

     20,135        1,595,505   

Net deferred gains (losses) on hedging instruments

     (37,316     77,367   

Land revaluation excess

     (166     14,149   

Foreign currency translation adjustments

     387,126        442,466   

Pension liability adjustments of subsidiaries preparing financial statements under US GAAP

     27,734        —     

Remeasurements of defined benefit plans

     —          27,880   

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

     208,366        150,891   
  

 

 

   

 

 

 

Total other comprehensive income

     605,881        2,308,260   
  

 

 

   

 

 

 

Comprehensive income

     1,708,923        3,455,231   
  

 

 

   

 

 

 

(Comprehensive income attributable to)

    

Comprehensive income attributable to owners of the parent

     1,588,609        3,313,220   

Comprehensive income attributable to minority interests

     120,314        142,011   

 

16


Mitsubishi UFJ Financial Group, Inc.

 

(3) Consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2014

 

    (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

    2,139,378        2,172,930        6,267,976        (1,929     10,578,356        1,207,963        45,146  

Changes during the period

             

Issuance of new shares-exercise of subscription rights to shares

    1,109        1,108            2,217       

Dividends from retained earnings

        (216,183       (216,183    

Net income

        984,845          984,845       

Repurchase of treasury stock

          (51     (51    

Disposal of treasury stock

      346          281        627       

Reversal of land revaluation excess

        2,010          2,010       

Changes in foreign affiliates’ interests in their subsidiaries

        (3,534       (3,534    

Changes associated with redemption of capitalized financial instruments issued by foreign affiliates

        (1,988       (1,988    

Net changes of items other than shareholders’ equity

              10,433        (36,850 )
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

    1,109        1,454        765,149        230        767,943        10,433        (36,850 )
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

    (in millions of yen)  
    Accumulated other comprehensive income                    
    Land
revaluation
excess
    Foreign
currency
translation
adjustments
    Pension
liability
adjustments
of  subsidiaries
preparing
financial
statements
under
US GAAP
    Remeasurements
of defined
benefit plans
    Total
accumulated
other
comprehensive
income
    Subscription
rights to
shares
    Minority
interests
    Total net
asset
 

Balance at the beginning of the period

    159,952        (195,421     (59,379     —          1,158,261        8,884        1,774,153        13,519,655   

Changes during the period

               

Issuance of new shares-exercise of subscription rights to shares

                  2,217   

Dividends from retained earnings

                  (216,183

Net income

                  984,845   

Repurchase of treasury stock

                  (51

Disposal of treasury stock

                  627   

Reversal of land revaluation excess

                  2,010   

Changes in foreign affiliates’ interests in their subsidiaries

                  (3,534

Changes associated with redemption of capitalized financial instruments issued by foreign affiliates

                  (1,988

Net changes of items other than shareholders’ equity

    (2,176     602,650        59,379        (81,937     551,499        (151     273,948        825,296   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

    (2,176     602,650        59,379        (81,937     551,499        (151     273,948        1,593,239   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

17


Mitsubishi UFJ Financial Group, Inc.

 

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    

Net income

        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
    Minority
interests
    Total net
assets
 
    Land
revaluation
excess
    Foreign
currency
translation
adjustments
    Pension
liability
adjustments
of  subsidiaries
preparing
financial
statements
under
US GAAP
    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

Net income

                  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.

 

(4) Consolidated Statements of Cash Flows

 

     For the fiscal year     For the fiscal year  
     ended     ended  
(in millions of yen)    March 31, 2014     March 31, 2015  

Cash flows from operating activities:

    

Income before income taxes and others

     1,543,030        1,614,757   

Depreciation

     255,637        300,163   

Impairment losses

     126,924        11,487   

Amortization of goodwill

     36,830        17,787   

Amortization of negative goodwill

     (1,591     —     

Equity in losses (gains) of affiliates

     (112,470     (159,637

Increase (decrease) in allowance for credit losses

     (173,705     46,037   

Increase (decrease) in reserve for bonuses

     8,868        10,321   

Increase (decrease) in reserve for bonuses to directors

     (333     (172

Decrease (increase) in net defined benefit assets

     35,323        (62,696

Increase (decrease) in net defined benefit liabilities

     (46,685     (1,601

Increase (decrease) in reserve for retirement benefits to directors

     (222     (115

Increase (decrease) in reserve for loyalty award credits

     (141     969   

Increase (decrease) in reserve for contingent losses

     (50,771     (43,807

Interest income recognized on statement of income

     (2,370,649     (2,806,238

Interest expenses recognized on statement of income

     492,122        624,743   

Losses (gains) on securities

     (287,463     (208,271

Losses (gains) on money held in trust

     2,264        639   

Foreign exchange losses (gains)

     (2,177,403     (1,213,235

Losses (gains) on sales of fixed assets

     (2,496     4,926   

Net decrease (increase) in trading assets

     3,086,278        (1,337,542

Net increase (decrease) in trading liabilities

     (2,803,988     1,181,142   

Adjustment of unsettled trading accounts

     (294,819     889,029   

Net decrease (increase) in loans and bills discounted

     (6,608,052     (5,909,031

Net increase (decrease) in deposits

     8,543,515        6,793,900   

Net increase (decrease) in negotiable certificates of deposit

     633,905        488,549   

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

     (137,246     3,247,294   

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

     (11,210,496     (13,003,581

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

     (1,141,168     261,206   

Net decrease (increase) in receivables under securities borrowing transactions

     (1,546,761     (370,559

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

     3,983,716        (350,881

Net increase (decrease) in commercial papers

     401,456        667,730   

Net increase (decrease) in payables under securities lending transactions

     1,490,264        2,657,417   

Net decrease (increase) in foreign exchanges (assets)

     (485,839     (137,770

Net increase (decrease) in foreign exchanges (liabilities)

     234,959        375,867   

Net increase (decrease) in short-term bonds payable

     83,593        353,597   

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

     1,117,138        906,637   

Net increase (decrease) in due to trust accounts

     441,935        1,238,144   

Interest income (cash basis)

     2,542,087        2,917,319   

Interest expenses (cash basis)

     (499,345     (636,368

Others

     981,842        (26,303
  

 

 

   

 

 

 

Sub-total

     (3,909,958     (1,658,147
  

 

 

   

 

 

 

 

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Mitsubishi UFJ Financial Group, Inc.

 

     For the fiscal year     For the fiscal year  
     ended     ended  
(in millions of yen)    March 31, 2014     March 31, 2015  

Income taxes

     (230,581     (463,446

Refund of income taxes

     51,504        25,845   
  

 

 

   

 

 

 

Net cash provided by (used in) operating activities

     (4,089,035     (2,095,748
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Purchases of securities

     (136,943,494     (138,305,190

Proceeds from sales of securities

     108,333,935        110,348,143   

Proceeds from redemption of securities

     35,904,614        34,682,841   

Increase in money held in trust

     (1,657,637     (479,026

Decrease in money held in trust

     1,483,685        576,140   

Purchases of tangible fixed assets

     (151,365     (176,368

Purchases of intangible fixed assets

     (223,357     (223,581

Proceeds from sales of tangible fixed assets

     31,251        12,393   

Proceeds from sales of intangible fixed assets

     1,404        19   

Payments for transfer of business

     (388,447     —     

Proceeds from transfer of business

     53,033        —     

Purchases of equity of consolidated subsidiaries

     (43     —     

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

     (443,017     (1,015

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

     2,399        67,952   

Others

     (1,558     (619
  

 

 

   

 

 

 

Net cash provided by (used in) investing activities

     6,001,400        6,501,689   
  

 

 

   

 

 

 

Cash flows from financing activities:

    

Increase in subordinated borrowings

     44,000        55,000   

Decrease in subordinated borrowings

     (116,500     (74,800

Increase in subordinated bonds payable and bonds with warrants

     48,751        190,000   

Decrease in subordinated bonds payable and bonds with warrants

     (663,502     (284,324

Proceeds from issuance of common stock to minority shareholders

     1,920        2,949   

Decrease in redemption of preferred stocks

     —          (137,400

Dividend paid by MUFG

     (216,106     (263,978

Dividend paid by subsidiaries to minority shareholders

     (95,763     (106,964

Repayments to minority shareholders

     (10,454     (17,602

Purchases of treasury stock

     (45     (490,044

Proceeds from sales of treasury stock

     610        2   

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

     —          (29,463

Others

     5        4   
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (1,007,086     (1,156,621
  

 

 

   

 

 

 

Effect of foreign exchange rate changes on cash and cash equivalents

     298,454        252,797   
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     1,203,733        3,502,117   
  

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the period

     5,281,038        6,487,918   

Increase in cash and cash equivalents due to absorption-type splits

     3,146        —     
  

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     6,487,918        9,990,035   
  

 

 

   

 

 

 

 

20


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: 226

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.

(Changes in the scope of consolidation)

In the current fiscal year, Meridian Holdings Limited and 12 other companies were newly consolidated following the acquisition of their shares or for other reasons.

In the current fiscal year, Beacon Rail Leasing, Inc. and 39 other companies were excluded from the scope of consolidation because they were no longer subsidiaries due to sales of the investment 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.

It was not treated as a subsidiary, because it was established as a property management agent for a land trust project 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: 62

Principal companies:

Mitsubishi UFJ Lease & Finance Company Limited

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

In current fiscal year, BOTL Factoring (Shanghai) Co., Ltd. and 1 other company were newly included in the scope of application of the equity method following new establishments.

In the current fiscal year, Emerald Engine Leasing Limited and 1 other company were excluded from the scope of application of the equity method because of sales of the investment.

 

  (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:

Kyoto Constella Technologies Co., Ltd.

TECHTOM Ltd.

Osteopharma Inc.

Hirosaki Co., Ltd.

EDP Corporation

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.

 

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Mitsubishi UFJ Financial Group, Inc.

 

3. The Balance Sheet Dates of Consolidated Subsidiaries

 

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

 

June 30:

   1    subsidiary

August 31:

   1    subsidiary

October 31:

   1    subsidiary

December 31:

   139    subsidiaries

January 24:

   17    subsidiaries

March 31:

   67    subsidiaries

 

  (2) A subsidiary whose balance sheet date is June 30 was consolidated based on its preliminary financial statements as of December 31.

A subsidiary whose balance sheet date is August 31 was consolidated based on its preliminary financial statements as of February 28.

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.

 

  (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.

 

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Mitsubishi UFJ Financial Group, Inc.

 

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 ¥478,168 million.

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.

 

23


Mitsubishi UFJ Financial Group, Inc.

 

  (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.

 

24


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, which commenced in fiscal years beginning on or after April 1, 2008, 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.

Finance leases other than those that are deemed to transfer the ownership of leased property to the lessees, which commenced in fiscal years beginning prior to April 1, 2008, are accounted for in a similar way to operating leases.

(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.

 

25


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 adopted the consolidated taxation system from the current fiscal year.

 

  (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.

 

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Mitsubishi UFJ Financial Group, Inc.

 

(Changes in Accounting Policies)

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

(Accounting Standards for Retirement Benefits)

The main clause of Article 35 of the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26 issued on May 17, 2012, hereinafter “Retirement Benefits Accounting Standard”) and the main clause of Article 67 of the “Guidance on Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25 issued on March 26, 2015 hereinafter “Retirement Benefits Guidance”) were adopted from the current fiscal year. Accordingly, the calculation methods of retirement benefit obligation and service cost were changed. Specifically, the method of determining the portion of projected benefit obligation attributed to periods was changed from the straight-line method to the benefit formula basis. In addition, the method of determining the discount rates applied in the calculation of projected benefit obligation was changed from the method using the average period up to estimated benefit payment date to the method using the single weighted-average discount rate that reflects the estimated period and amount of benefit payment in each period.

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

As a result, net defined benefit asset decreased by ¥58,569 million, net defined benefit liability decreased by ¥1,594 million, and retained earnings decreased by ¥37,224 million as of April 1, 2014. In addition, ordinary profits and income before income taxes and others for the fiscal year ended March 31, 2015 increased by ¥1,643 million, respectively.

The effects of the change on per share information are stated in “Per Share Information.”

(Accounting Standards for Business Combinations)

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

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

As a result, goodwill decreased by ¥266,925 million, capital surplus decreased by ¥346,454 million, and retained earnings increased by ¥95,134 million as of April 1, 2014. In addition, both ordinary profits and income before income taxes and others for the fiscal year ended March 31, 2015 increased by ¥17,700 million, respectively.

As for the consolidated statements of cash flows for the fiscal year ended March 31, 2015, cash flows related to purchases or sales of subsidiaries’ equity not affecting the scope of consolidation are classified into “Cash flows from financing activities.” Cash flows related to expenses arising from purchases of subsidiaries’ equity affecting the scope of consolidation, or cash flows related to expenses arising from purchases or sales of subsidiaries’ equity not affecting the scope of consolidation are classified into “Cash flows from operating activities.”

The effects of the change on per share information are stated in “Per Share Information.”

 

27


Mitsubishi UFJ Financial Group, Inc.

 

(Consolidated Balance Sheet)

 

1. Securities include ¥2,393,296 million in stock and ¥28,439 million in investments of affiliates.

 

2. “Securities” also includes ¥80,312 million of unsecured securities loaned with respect to which borrowers have rights to sell or pledge. For borrowed securities under securities borrowing transactions and securities purchased under resale agreements which were permissible to be sold or re-pledged without restrictions, ¥12,071,114 million of such securities were re-pledged, ¥267,281 million were re-loaned and ¥3,635,107 million were held by MUFG as of the consolidated balance sheet date.

 

3. Loans to bankrupt borrowers: ¥23,586 million.

Non-accrual delinquent loans: ¥811,478 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: ¥51,034 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: ¥653,839 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 ¥1,539,939 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 ¥1,370,720 million.

 

8. Assets pledged as collateral were as follows:

 

Trading assets

     ¥248,882 million   

Securities

     ¥4,629,478 million   

Loans and bills discounted

     ¥8,024,130 million   

 

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Mitsubishi UFJ Financial Group, Inc.

 

Liabilities related to pledged assets were as follows:

 

Deposits

     ¥702,440 million   

Call money and bills sold

     ¥792,619 million   

Trading liabilities

     ¥22,131 million   

Borrowed money

     ¥10,778,786 million   

Bonds payable

     ¥34,336 million   

Acceptances and guarantees

     ¥80,000 million   

In addition to the items listed above, ¥2,571 million of cash and due from banks, ¥1,438,879 million of monetary claims bought, ¥229,479 million of trading assets, ¥11,553,234 million of securities, and ¥8,083,137 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. ¥4,373,913 million of trading assets and ¥16,501,920 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 ¥12,616,225 million and ¥7,615,108 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 ¥8,167 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 ¥84,463,628 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.

The difference between the fair value of land used for business operations revaluated in accordance with Article 10 of the law as of the end of the current fiscal year and the book value of such land following the revaluation was ¥11,164 million.

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.

 

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Mitsubishi UFJ Financial Group, Inc.

 

11. Accumulated depreciation on tangible fixed assets: ¥1,209,973 million.

 

12. Deferred gains on tangible fixed assets deducted for tax purposes: ¥91,675 million.

 

13. Borrowed money included ¥671,000 million of subordinated borrowings.

 

14. Bonds payable included ¥2,091,648 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 ¥1,738,140 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 ¥694,302 million.

 

30


Mitsubishi UFJ Financial Group, Inc.

 

(Consolidated Statements of Income)

 

1. “Other ordinary income” included ¥159,637 million of equity in gains of the equity method investees and ¥114,477 million of gains on sales of equity securities.

 

2. “Other ordinary expenses” included ¥144,845 million of write-offs of loans and ¥56,150 million of provision for reserve for contingent losses.

 

3. “Civil monetary payment” of ¥37,097 million was agreed upon with the New York State Department of Financial Services and paid by a domestic consolidated banking subsidiary, in connection with self-investigations and reports of settlement transaction with a country subject to U.S. economic sanctions.

 

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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,
2014
     Number
of shares
increased
     Number
of shares

decreased
     Number of
shares as of
March 31,
2015
     Notes  

Outstanding shares

              

Common stock

     14,164,026         4,827         —           14,168,853         (1)   

First series of class 5 preferred stock

     156,000         —           156,000         —           (2)   

Class 11 preferred stock

     1         —           1         —           (2)   

Total

     14,320,027         4,827         156,001         14,168,853      

Treasury stock

              

Common stock

     2,554         148,664         204         151,014         (3)   

First series of class 5 preferred stock

     —           156,000         156,000         —           (4)   

Class 11 preferred stock

     —           1         1         —           (4)   

Total

     2,554         304,665         156,205         151,014      

(Notes)

  (1) Increase in the number of common stock by 4,827 thousand shares was due to the exercise of stock options.
  (2) Decrease in the number of First series of class 5 preferred stock by 156,000 thousand shares and a decrease in the number of Class 11 preferred stock by 1 thousand shares were due to the cancellation of those shares.
  (3) Increase in the number of common stock held in treasury by 148,664 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 204 thousand shares was mainly due to sale of stocks in response to requests made by shareholders holding shares constituting less than a unit, delivery of shares in exchange for the acquisition of Class 11 preferred stock, sale of stocks by affiliates accounted for under the equity method, and a decrease in the number of shares held by affiliates accounted for under the equity method.
  (4) Increase in the number of First series of class 5 preferred stock held in treasury by 156,000 thousand shares and an increase in the number of Class 11 preferred stock held in treasury by 1 thousand shares were due to the acquisition of all of the relevant preferred stocks pursuant to the provisions of Articles of Incorporation. In addition, a decrease in the number of First series of class 5 preferred stock held in treasury by 156,000 thousand shares and a decrease in the number of Class 11 preferred stock held in treasury by 1 thousand shares were due to the cancellation of those shares.

 

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,
2015

(in millions
of yen)
         As of
April 1,
2014
     Increase      Decrease      As of
March 31,
2015
    

MUFG

   Stock options      —           —           —           —           —         8,271

Total

     —           —           —           —           —         8,271

 

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Mitsubishi UFJ Financial Group, Inc.

 

3. Detailed Information regarding Cash Dividends

 

  (A) Dividends Paid in the Fiscal Year Ended March 31, 2015

 

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 27, 2014

  Common stock      127,474         9       March 31,
2014
   June 27,
2014
  First series of class 5 preferred stock      8,970         57.5         
  Class 11 preferred stock      0         2.65         

Meeting of Board of Directors on November 14, 2014

  Common stock      127,515         9       September 30,
2014
   December 5,
2014

 

  (B) Dividends with Record Dates on or before March 31, 2015 and Effective Dates after March 31, 2015

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 25, 2015.

 

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 25, 2015 (tentative)

   Common stock      126,179       Retained    

earnings    

     9       March 31,
2015
   June 25,
2015

 

33


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, 2015

 

Cash and due from banks on the consolidated balance sheet:

     ¥ 40,488,318 million   

Time deposits and negotiable certificates of deposit in other banks:

     ¥(30,498,282 million
  

 

 

 

Cash and cash equivalents:

     ¥   9,990,035 million   
  

 

 

 

 

34


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, 2015 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

     40,488,318        40,488,318        —     

(2) Call loans and bills bought

     604,625        604,625        —     

(3) Receivables under resale agreements

     7,342,335        7,342,335        —     

(4) Receivables under securities borrowing transactions

     4,633,544        4,633,544        —     

(5) Monetary claims bought (*1)

     4,570,712        4,592,452        21,740   

(6) Trading assets

     7,842,240        7,842,240        —     

(7) Money held in trust

     700,218        700,218        —     

(8) Securities

      

Debt securities being held to maturity

     2,132,633        2,163,002        30,369   

Other securities

     68,693,442        68,693,442        —     

(9) Loans and bills discounted

     109,368,340       

Allowance for credit losses (*1)

     (835,232    
  

 

 

   

 

 

   

 

 

 
     108,533,107        110,121,810        1,588,703   
  

 

 

   

 

 

   

 

 

 

(10) Foreign exchanges (*1)

     2,187,311        2,187,311        —     
  

 

 

   

 

 

   

 

 

 

Total assets

     247,728,488        249,369,301        1,640,812   
  

 

 

   

 

 

   

 

 

 

(1) Deposits

     153,357,410        153,385,206        27,795   

(2) Negotiable certificates of deposit

     16,073,850        16,077,578        3,727   

(3) Call money and bills sold

     3,600,104        3,600,104        —     

(4) Payables under repurchase agreements

     21,899,506        21,899,506        —     

(5) Payables under securities lending transactions

     8,205,350        8,205,350        —     

(6) Commercial papers

     2,179,634        2,179,634        —     

(7) Trading liabilities

     2,518,427        2,518,427        —     

(8) Borrowed money

     13,866,196        13,886,485        20,288   

(9) Foreign exchanges

     1,496,476        1,496,476        —     

(10) Short-term bonds payable

     789,512        789,512        —     

(11) Bonds payable

     8,141,713        8,286,394        144,680   

(12) Due to trust accounts

     3,183,295        3,183,295        —     
  

 

 

   

 

 

   

 

 

 

Total liabilities

     235,311,478        235,507,970        196,492   
  

 

 

   

 

 

   

 

 

 

Derivative transactions (*2)

      

Activities not qualifying for hedge accounting

     202,108        202,108        —     

Activities qualifying for hedge accounting

     (197,910     (197,910     —     
  

 

 

   

 

 

   

 

 

 

Total derivative transactions

     4,197        4,197        —     
  

 

 

   

 

 

   

 

 

 
(*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, and liabilities are shown in parentheses.

 

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Mitsubishi UFJ Financial Group, Inc.

 

(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)

     152,215   

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

     165,933   

(3) Others (*2)

     865   

Total

     319,014   

 

  (*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 ¥3,025 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.

 

36


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, 2015)

 

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

Trading securities

     23,503   

2. Debt Securities Being Held to Maturity (as of March 31, 2015)

 

    

(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

     926,096         942,188         16,091   
  

Government bonds

     926,096         942,188         16,091   
  

Municipal bonds

     —           —           —     
  

Corporate bonds

     —           —           —     
  

Other securities

     2,145,936         2,188,927         42,990   
  

Foreign bonds

     811,300         828,544         17,244   
  

Other

     1,334,636         1,360,382         25,745   
  

Subtotal

     3,072,033         3,131,115         59,081   

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

  

Domestic bonds

     200,115         198,580         (1,535
  

Government bonds

     200,115         198,580         (1,535
  

Municipal bonds

     —           —           —     
  

Corporate bonds

     —           —           —     
  

Other securities

     861,528         857,710         (3,817
  

Foreign bonds

     195,121         193,690         (1,431
  

Other

     666,406         664,019         (2,386
  

Subtotal

     1,061,643         1,056,290         (5,352

Total

     4,133,677         4,187,405         53,728   

 

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Mitsubishi UFJ Financial Group, Inc.

 

3. Other Securities (as of March 31, 2015)

 

    

(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

     5,521,640         2,552,053         2,969,586   
  

Domestic bonds

     28,262,647         27,931,107         331,539   
  

Government bonds

     26,082,448         25,807,591         274,856   
  

Municipal bonds

     173,773         168,332         5,441   
  

Corporate bonds

     2,006,425         1,955,184         51,241   
  

Other securities

     22,626,874         21,683,728         943,146   
  

Foreign equity securities

     187,035         127,994         59,040   
  

Foreign bonds

     19,372,048         18,748,901         623,146   
  

Other

     3,067,790         2,806,832         260,958   
  

Subtotal

     56,411,162         52,166,890         4,244,272   

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

  

Domestic equity securities

     199,753         239,319         (39,566
  

Domestic bonds

     8,257,571         8,262,735         (5,163
  

Government bonds

     8,001,986         8,003,364         (1,377
  

Municipal bonds

     14,542         14,610         (67
  

Corporate bonds

     241,042         244,761         (3,718
  

Other securities

     4,467,783         4,534,124         (66,341
  

Foreign equity securities

     4,366         4,940         (574
  

Foreign bonds

     3,192,942         3,218,747         (25,805
  

Other

     1,270,474         1,310,436         (39,961
  

Subtotal

     12,925,108         13,036,180         (111,071

Total

     69,336,270         65,203,070         4,133,200   

 

(Note)   The total difference amount shown in the table above includes ¥64,406 million revaluation gains of securities by application of the fair value hedge accounting method.

 

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Mitsubishi UFJ Financial Group, Inc.

 

4. Other Securities Sold during the Current Fiscal Year (from April 1, 2014 to March 31, 2015)

 

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

Domestic equity securities

     652,155         102,391         5,001   

Domestic bonds

     82,205,981         98,853         35,253   

Government bonds

     81,804,519         94,268         35,106   

Municipal bonds

     119,186         754         122   

Corporate bonds

     282,275         3,829         24   

Other securities

     24,458,203         145,745         77,784   

Foreign equity securities

     20,630         6,011         1,402   

Foreign bonds

     23,978,276         132,877         69,855   

Other

     459,295         6,857         6,525   

Total

     107,316,340         346,989         118,039   

 

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 ¥4,212 million consisting of ¥1,754 million of impairment losses on equity securities and ¥2,457 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.

 

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Mitsubishi UFJ Financial Group, Inc.

 

(Money Held in Trust)

 

1. Money Held in Trust for Trading Purpose (as of March 31, 2015)

 

     (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

     43,889       (305)

 

2. Money Held in Trust Being Held to Maturity (as of March 31, 2015): None

 

3. Money Held in Trust not for Trading Purpose or Being Held to Maturity (as of March 31, 2015)

 

     (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

     656,329         655,440         889         889         —     

 

(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, 2015)

 

     (in millions of yen)  

Net unrealized gains (losses) on other securities

     4,032,668   

Other securities

     4,078,765   

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

     889   

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

     (46,986

Deferred tax liabilities

     (1,226,966

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

     2,805,701   

Minority interests

     11,358   

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

     18,030   

Total

     2,835,091   

 

(Notes)  

(1)    “Net unrealized gains (losses) on other securities” shown in the above table excluded ¥64,406 million revaluation gains 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 ¥9,971 million of unrealized gains on securities in investment limited partnerships.

 

40


Mitsubishi UFJ Financial Group, Inc.

 

(Business Combinations)

Transactions Under Common Control

(Integration of BTMU Bangkok Branch and Bank of Ayudhya Public Company Limited)

In accordance with the Conditional Branch Purchase Agreement concluded on September 18, 2013 between The Bank of Tokyo-Mitsubishi UFJ, Ltd. (“BTMU”), MUFG’s consolidated subsidiary, and Bank of Ayudhya Public Company Limited (“Krungsri”), BTMU’s consolidated subsidiary, BTMU integrated its Bangkok Branch (the “former BTMU Bangkok Branch”) with Krungsri on January 5, 2015 through the contribution in kind of the former BTMU Bangkok Branch business to Krungsri. The brief overview is described as follows.

 

1. Overview of the Transaction

 

  (1) Name and Business Description of the Business Integrated

 

Name of business    Former BTMU Bangkok Branch
Description of business    Commercial bank

 

  (2) Date of the Business Combination

January 5, 2015

 

  (3) Legal Form of the Business Combination

Contribution in kind

 

  (4) Name of the Company After the Integration

Bank of Ayudhya Public Company Limited

 

  (5) Other Matters Related to Overview of the Transaction

The transaction was made in compliance with the Bank of Thailand’s One Presence Policy, and intending collaboration in various fields to maximize the strategic partnership with Krungsri in accordance with the Conditional Branch Purchase Agreement concluded between BTMU and Krungsri on September 18, 2013.

 

2. Overview of Accounting Treatment Applied

The transaction is treated as a transaction under common control in accordance with “Revised Accounting Standard for Business Combinations” (ASBJ Statement No. 21 issued on September 13, 2013) and “Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10 issued on September 13, 2013).

 

3. Matters Related to Changes in Equity Held by the Company Related to the Transactions with Minority Shareholders

As a result of acquisition of the common shares of Krungsri through the contribution in kind of the former BTMU Bangkok Branch business to Krungsri, capital surplus decreased ¥11,187 million.

 

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, 2015

 

    (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

    4,028,944        650,326        516,057        487,767        684,305        6,367,401        (728,999     5,638,402   

Interest income

    2,384,928        225,642        31,616        194,829        647,412        3,484,430        (678,191     2,806,238   

Investment gains on equity method

    24,691        11,583        15,197        303        —          51,777        107,859        159,637   

Ordinary income from customers

    3,951,105        631,418        479,252        469,642        106,983        5,638,402        —          5,638,402   

Ordinary income from internal transactions

    77,839        18,907        36,804        18,125        577,321        728,999        (728,999     —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment income (loss)

    731,622        159,773        50,995        27,511        626,295        1,596,198        (562,439     1,033,759   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment assets

    219,313,264        38,309,785        29,992,593        4,163,265        12,095,009        303,873,917        (17,724,149     286,149,768   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other items

               

Depreciation

    224,836        31,263        15,080        23,713        1,788        296,683        3,480        300,163   

Amortization of goodwill

    16,920        1,049        959        984        —          19,913        (2,125     17,787   

Interest expenses

    512,186        62,976        44,006        23,032        28,352        670,554        (45,811     624,743   

Extraordinary gains

    4,091        9,848        4        716        0        14,661        (6     14,655   

Extraordinary losses

    72,391        8,995        2,624        597        133        84,743        28,156        112,899   

Impairment losses on fixed assets

    4,249        5,466        1,771        —          —          11,487        —          11,487   

Income tax expenses

    347,236        69,840        37,748        3,819        (1,325     457,319        10,467        467,786   

Unamortized balance of goodwill

    293,225        18,859        17,024        7,443        —          336,553        (27,433     309,119   

Investment to companies accounted for under the equity method

    282,391        124,580        250,221        4,828        823,689        1,485,710        936,025        2,421,736   

Increases in tangible and intangible fixed assets

    287,385        40,946        25,219        33,547        5,546        392,645        —          392,645   

 

(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 ¥579,270 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 adjustments include minus ¥667,722 million elimination of internal transactions, as well as ¥105,283 million comprising investment gains (losses) on equity method, amortization of goodwill, tax expenses, and minority interests gains (losses) 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 is reconciled to net income in the consolidated statement of income.

 

42


Mitsubishi UFJ Financial Group, Inc.

 

(Per Share Information)

 

     For the fiscal year  ended
March 31, 2015
 

Net assets per common share

     ¥1,092.74   

Net income per common share

     ¥73.21   

Diluted net income per common share

     ¥72.94   

 

(Notes)  

(1)    Basis for computing net income per common share and diluted net income per common share is as follows:

 

         

For the fiscal year ended

March 31, 2015

Net income per common share

     

Net income

   million yen    1,033,759 

Amounts not attributable to common shareholders

   million yen    —   

Net income attributable to common stock

   million yen    1,033,759 

Average number of common stock outstanding for the fiscal period

   thousand shares    14,119,202 

Diluted net income per common share

     

Adjustments in net income

   million yen    (2,471)

Adjustments made to reflect convertible securities of subsidiaries and others

   million yen    (2,471)

Increase in common share

   thousand shares    19,175 

Preferred stock

   thousand shares   

Subscription rights to shares

   thousand shares    19,175 

Convertible securities not diluting net income per common share

  

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

Morgan Stanley

Stock options

- 15 million units as of December 31, 2014

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

 

         

For the fiscal year ended

March 31, 2015

Total net assets

   million yen    17,287,533 

Amounts deducted from total net assets

   million yen    1,969,593 

Subscription rights to shares

   million yen    8,271 

Minority interests

   million yen    1,961,322 

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

   million yen    15,317,940 

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

   thousand shares    14,017,839 

 

43


Mitsubishi UFJ Financial Group, Inc.

 

(3) As stated in “Changes in Accounting Policies,” Retirement Benefits Accounting Standard and other standards were adopted in accordance with the transitional treatment set forth in Article 37 of the Retirement Benefits Accounting Standard.

As a result, total net assets per common share decreased by ¥2.63 as of April 1, 2014. The impact of this change on net income per common share and diluted net income per common share for the fiscal year ended March 31, 2015 was immaterial.

 

(4) As stated in “Changes in Accounting Policies,” Business Combinations Accounting Standard and other standards were adopted in accordance with the transitional treatment set forth in Article 58-2 (3) of the Business Combinations Accounting Standard, Article 44-5 (3) of the Consolidation Accounting Standard, and Article 57-4 (3) of the Business Divestitures Accounting Standard.

As a result, total net assets per common share decreased by ¥17.76 as of April 1, 2014, and net income per common share and diluted net income per common share increased by ¥1.21 and ¥1.20 respectively for the fiscal year ended March 31, 2015.

 

44


Mitsubishi UFJ Financial Group, Inc.

 

6.  Non-consolidated Financial Statements

 

(1) Non-consolidated Balance Sheets

 

(in millions of yen)    As of
March 31, 2014
     As of
March 31, 2015
 

Assets:

     

Current assets:

     

Cash and due from banks

     19,037         71,674   

Securities

     111,300         —     

Prepaid expenses

     22         45   

Deferred tax assets

     15,621         203   

Others

     56,099         150,184   
  

 

 

    

 

 

 

Total current assets

     202,081         222,109   
  

 

 

    

 

 

 

Fixed assets:

     

Tangible fixed assets:

     

Buildings

     12         22   

Equipment and furniture

     266         380   
  

 

 

    

 

 

 

Total tangible fixed assets

     279         402   
  

 

 

    

 

 

 

Intangible fixed assets:

     

Trademarks

     83         72   

Software

     4,758         8,302   

Lease assets

     79         59   

Others

     1         1   
  

 

 

    

 

 

 

Total intangible fixed assets

     4,923         8,436   
  

 

 

    

 

 

 

Investments and other assets:

     

Investments in subsidiaries and affiliates

     10,706,842         10,186,842   

Long-term loans receivable from subsidiaries and affiliates

     —           190,000   

Allowance for credit losses

     —           (114

Deferred tax assets

     17,841         38,412   

Others

     307         172   
  

 

 

    

 

 

 

Total investments and other assets

     10,724,991         10,415,313   
  

 

 

    

 

 

 

Total fixed assets

     10,730,194         10,424,152   
  

 

 

    

 

 

 

Total assets

     10,932,276         10,646,262   
  

 

 

    

 

 

 

 

45


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    As of
March 31, 2014
    As of
March 31, 2015
 

Liabilities:

    

Current liabilities:

    

Short-term borrowings

     1,917,647        1,824,447   

Lease liabilities

     21        21   

Accounts payable

     3,113        16,346   

Accrued expenses

     3,064        2,324   

Income taxes payable

     104        67   

Deposits received

     145        143   

Reserve for bonuses

     388        422   

Reserve for bonuses to directors

     52        51   

Others

     0        1   
  

 

 

   

 

 

 

Total current liabilities

     1,924,538        1,843,826   
  

 

 

   

 

 

 

Fixed liabilities:

    

Bonds payable

     380,500        440,500   

Long-term borrowings from subsidiaries and affiliates

     3,945        3,938   

Lease liabilities

     56        34   

Others

     20        11   
  

 

 

   

 

 

 

Total fixed liabilities

     384,522        444,484   
  

 

 

   

 

 

 

Total liabilities

     2,309,060        2,288,311   
  

 

 

   

 

 

 

Net assets:

    

Shareholders’ equity:

    

Capital stock

     2,140,488        2,141,513   

Capital surplus:

    

Capital reserve

     2,140,501        2,141,524   

Other capital surplus

     1,860,006        1,470,006   
  

 

 

   

 

 

 

Total capital surplus

     4,000,507        3,611,530   
  

 

 

   

 

 

 

Retained earnings:

    

Other retained earnings:

    

Other reserve

     150,000        150,000   

Earned surplus brought forward

     2,392,816        2,682,257   
  

 

 

   

 

 

 

Total retained earnings

     2,542,816        2,832,257   
  

 

 

   

 

 

 

Treasury stock

     (105     (100,147
  

 

 

   

 

 

 

Total shareholders’ equity

     8,683,707        8,485,153   
  

 

 

   

 

 

 

Valuation and translation adjustments:

    

Net deferred gains (losses) on hedging instruments

     (69,224     (135,474
  

 

 

   

 

 

 

Total valuation and translation adjustments

     (69,224     (135,474
  

 

 

   

 

 

 

Subscription rights to shares

     8,732        8,271   
  

 

 

   

 

 

 

Total net assets

     8,623,215        8,357,950   
  

 

 

   

 

 

 

Total liabilities and net assets

     10,932,276        10,646,262   
  

 

 

   

 

 

 

 

46


Mitsubishi UFJ Financial Group, Inc.

 

(2) Non-consolidated Statements of Income

 

(in millions of yen)    For the fiscal year
ended
March 31, 2014
    For the fiscal year
ended
March 31, 2015
 

Operating income:

    

Dividends

     239,764        563,746   

Management fees from subsidiaries and affiliates

     18,922        22,059   
  

 

 

   

 

 

 

Total operating income

     258,686        585,805   
  

 

 

   

 

 

 

Operating expenses:

    

General and administrative expenses

     18,887        21,411   
  

 

 

   

 

 

 

Total operating expenses

     18,887        21,411   
  

 

 

   

 

 

 

Operating profits

     239,799        564,394   
  

 

 

   

 

 

 

Non-operating income:

    

Interest on deposits

     0        413   

Interest on securities

     72        35   

Dividends

     15,524        15,524   

Others

     294        1,042   
  

 

 

   

 

 

 

Total non-operating income

     15,891        17,016   
  

 

 

   

 

 

 

Non-operating expenses:

    

Interest on borrowings

     13,313        13,117   

Interest on bonds payable

     15,583        15,063   

Provision for allowance for credit losses

     —          114   

Others

     240        1,424   
  

 

 

   

 

 

 

Total non-operating expenses

     29,137        29,719   
  

 

 

   

 

 

 

Ordinary profits

     226,553        551,691   
  

 

 

   

 

 

 

Extraordinary losses:

    

Losses on retirement of fixed assets

     0        53   
  

 

 

   

 

 

 

Total extraordinary losses

     0        53   
  

 

 

   

 

 

 

Income before income taxes

     226,553        551,637   
  

 

 

   

 

 

 

Income taxes-current

     697        (16,534

Income taxes-deferred

     (15,876     14,771   
  

 

 

   

 

 

 

Total taxes

     (15,179     (1,762
  

 

 

   

 

 

 

Net income

     241,732        553,400   
  

 

 

   

 

 

 

 

47


Mitsubishi UFJ Financial Group, Inc.

 

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

For the fiscal year ended March 31, 2014

 

     (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

     2,139,378        2,139,392        1,860,006        150,000        2,367,278   

Changes during the period

          

Issuance of new shares-exercise of subscription rights to shares

     1,109        1,108         

Dividends from retained earnings

             (216,194

Net income

             241,732   

Repurchase of treasury stock

          

Disposal of treasury stock

         0       

Net changes of items other than shareholders’ equity

          
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

     1,109        1,108        0        —          25,537   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
     (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

     (61     8,655,995        (50,026     8,884        8,614,853   

Changes during the period

          

Issuance of new shares-exercise of subscription rights to shares

       2,217            2,217   

Dividends from retained earnings

       (216,194         (216,194

Net income

       241,732            241,732   

Repurchase of treasury stock

     (45     (45         (45

Disposal of treasury stock

     1        1            1   

Net changes of items other than shareholders’ equity

         (19,198     (151     (19,350
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total changes during the period

     (44     27,711        (19,198     (151     8,361   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance at the end of the period

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

48


Mitsubishi UFJ Financial Group, Inc.

 

For the fiscal year ended March 31, 2015

 

     (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

     2,140,488        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
    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

     (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   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

49


Mitsubishi UFJ Financial Group, Inc.

 

Notes on Going-Concern Assumption

Not applicable

7. Other

 

  (1) Changes of Directors and Corporate Auditors

Please refer to “Changes of Directors” posted on May 15, 2015 with regard to the changes of directors.

 

50


 

 

Selected Financial Information

under Japanese GAAP

For the fiscal year Ended March 31, 2015

 

 

 

 

 

 

 

 

 

Mitsubishi UFJ Financial Group, Inc.

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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 ]

    13   
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]  

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, 2015
(A)
    March 31, 2014
(B)
   

Gross profits

     4,229,501        3,753,023        476,477   

Gross profits before credit costs for trust accounts

     4,229,030        3,753,494        475,535   

Net interest income

     2,181,637        1,878,632        303,004   

Trust fees

     111,916        107,935        3,980   

Credit costs for trust accounts (1)

     471        (471     942   

Net fees and commissions

     1,308,604        1,160,336        148,267   

Net trading profits

     352,950        362,056        (9,105

Net other business profits

     274,393        244,062        30,331   

Net gains (losses) on debt securities

     115,162        142,889        (27,727

General and administrative expenses

     2,584,104        2,289,375        294,729   

Amortization of goodwill

     17,787        36,830        (19,042

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

     1,662,713        1,500,949        161,763   

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

     1,644,925        1,464,119        180,806   

Provision for general allowance for credit losses (2)

     (86,849     —          (86,849

Net business profits*

     1,558,547        1,463,648        94,899   

Net non-recurring gains (losses)

     154,454        231,171        (76,717

Credit costs (3)

     (141,486     (133,399     (8,087

Losses on loan write-offs

     (144,845     (125,989     (18,855

Provision for specific allowance for credit losses

     17,700        —          17,700   

Other credit costs

     (14,342     (7,409     (6,932

Reversal of allowance for credit losses (4)

     —          86,543        (86,543

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

     1,504        —          1,504   

Gains on loans written-off (6)

     64,735        59,208        5,527   

Net gains (losses) on equity securities

     93,109        144,573        (51,463

Gains on sales of equity securities

     114,477        171,653        (57,175

Losses on sales of equity securities

     (16,532     (14,100     (2,431

Losses on write-down of equity securities

     (4,836     (12,979     8,143   

Profits (losses) from investments in affiliates

     159,637        112,470        47,167   

Other non-recurring gains (losses)

     (23,045     (38,224     15,178   
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     1,713,001        1,694,820        18,181   
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (98,244     (151,789     53,545   

Losses on impairment of fixed assets

     (11,487     (126,924     115,437   

Losses on change in equity

     (23,648     (790     (22,857

Settlement package

     (37,097     (24,537     (12,560

Income before income taxes and others

     1,614,757        1,543,030        71,727   

Income taxes-current

     421,941        349,531        72,410   

Income taxes-deferred

     45,845        90,456        (44,611

Total taxes

     467,786        439,988        27,798   

Income before minority interests

     1,146,970        1,103,042        43,928   

Minority interests

     113,211        118,196        (4,984
  

 

 

   

 

 

   

 

 

 

Net income

     1,033,759        984,845        48,913   
  

 

 

   

 

 

   

 

 

 

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)

     (161,624     11,881        (173,506

Number of consolidated subsidiaries

     226        253        (27

Number of affiliated companies accounted for under the equity method

     62        62        —     

 

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, 2015
(A)
    March 31, 2014
(B)
   

Gross profits

     2,482,560        2,293,927        188,633   

Gross profits before credit costs for trust accounts

     2,482,089        2,294,398        187,691   

Domestic gross profits

     1,373,910        1,384,482        (10,572

Net interest income

     794,076        810,701        (16,624

Trust fees

     86,728        79,991        6,736   

Credit costs for trust accounts (1)

     471        (470     942   

Net fees and commissions

     411,579        378,397        33,181   

Net trading profits

     21,864        20,866        998   

Net other business profits

     59,660        94,525        (34,864

Net gains (losses) on debt securities

     47,521        72,172        (24,651

Non-domestic gross profits

     1,108,650        909,444        199,205   

Net interest income

     614,482        504,786        109,696   

Net fees and commissions

     200,104        187,224        12,880   

Net trading profits

     131,130        99,029        32,101   

Net other business profits

     162,931        118,403        44,528   

Net gains (losses) on debt securities

     62,193        58,330        3,862   

General and administrative expenses

     1,360,202        1,275,471        84,731   

Personnel expenses

     525,372        506,928        18,444   

Non-personnel expenses

     757,409        707,190        50,218   

Taxes

     77,421        61,352        16,068   

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

     1,121,886        1,018,927        102,959   

Provision for general allowance for credit losses (2)

     (96,146     —          (96,146

Net business profits

     1,026,211        1,018,456        7,754   

Net non-recurring gains (losses)

     86,500        178,730        (92,230

Credit costs (3)

     1,410        (62,685     64,096   

Losses on loan write-offs

     (40,366     (57,120     16,754   

Provision for specific allowance for credit losses

     56,970        —          56,970   

Other credit costs

     (15,193     (5,564     (9,628

Reversal of allowance for credit losses (4)

     —          65,604        (65,604

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

     4,259        1,475        2,784   

Gains on loans written-off (6)

     18,854        31,246        (12,391

Net gains (losses) on equity securities

     63,059        97,007        (33,948

Gains on sales of equity securities

     83,418        159,341        (75,923

Losses on sales of equity securities

     (14,482     (12,237     (2,245

Losses on write-down of equity securities

     (5,875     (50,096     44,220   

Other non-recurring gains (losses)

     (1,083     46,082        (47,166
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     1,112,711        1,197,187        (84,475
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (51,038     (27,948     (23,089

Net gains (losses) on disposition of fixed assets

     (5,014     (1,712     (3,301

Losses on impairment of fixed assets

     (8,926     (13,461     4,534   

Settlement package

     (37,097     (24,537     (12,560

Gains on sales of equity securities of affiliates

     —          10,367        (10,367

Income before income taxes

     1,061,672        1,169,238        (107,565

Income taxes-current

     332,121        281,562        50,558   

Income taxes-deferred

     17,015        101,091        (84,076

Total taxes

     349,137        382,654        (33,517
  

 

 

   

 

 

   

 

 

 

Net income

     712,535        786,583        (74,048
  

 

 

   

 

 

   

 

 

 

(Reference)

      

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

     (71,151     35,169        (106,320

 

2


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Consolidated

 

     (in millions of yen)  
     For the fiscal year ended     Increase
(Decrease)
(A) - (B)
 
     March 31, 2015
(A)
    March 31, 2014
(B)
   

Gross profits

     3,009,471        2,551,697        457,773   

Net interest income

     1,872,860        1,564,852        308,007   

Trust fees

     12,562        14,243        (1,680

Net fees and commissions

     732,803        598,768        134,035   

Net trading profits

     149,311        124,390        24,921   

Net other business profits

     241,932        249,443        (7,510

Net gains (losses) on debt securities

     119,275        145,723        (26,448

General and administrative expenses

     1,780,970        1,504,171        276,799   

Amortization of goodwill

     16,920        18,374        (1,454

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

     1,245,420        1,065,901        179,519   

Net business profits before provision for general allowance for credit losses

     1,228,500        1,047,526        180,974   

Provision for general allowance for credit losses (1)

     (83,180     —          (83,180

Net business profits*

     1,145,319        1,047,526        97,793   

Net non-recurring gains (losses)

     75,880        170,008        (94,127

Credit costs (2)

     (78,253     (80,085     1,832   

Losses on loan write-offs

     (90,946     (72,268     (18,678

Provision for specific allowance for credit losses

     26,712        —          26,712   

Other credit costs

     (14,019     (7,817     (6,201

Reversal of allowance for credit losses (3)

     —          74,570        (74,570

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

     1,039        —          1,039   

Gains on loans written-off (5)

     43,900        40,817        3,083   

Net gains (losses) on equity securities

     62,070        111,636        (49,566

Gains on sales of equity securities

     77,253        133,904        (56,650

Losses on sales of equity securities

     (11,461     (8,795     (2,665

Losses on write-down of equity securities

     (3,722     (13,471     9,749   

Profits (losses) from investments in affiliates

     24,691        14,169        10,522   

Other non-recurring gains (losses)

     22,431        8,899        13,531   
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     1,221,200        1,217,534        3,665   
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (68,299     (20,765     (47,534

Losses on impairment of fixed assets

     (4,249     (3,758     (490

Settlement package

     (37,097     (24,537     (12,560

Income before income taxes and others

     1,152,900        1,196,769        (43,869

Income taxes-current

     357,304        284,396        72,908   

Refund of income taxes

     (29,758     (2,574     (27,184

Income taxes-deferred

     19,690        98,280        (78,589

Total taxes

     347,236        380,101        (32,865

Income before minority interests

     805,663        816,667        (11,003

Minority interests

     74,041        62,344        11,697   
  

 

 

   

 

 

   

 

 

 

Net income

     731,622        754,323        (22,700
  

 

 

   

 

 

   

 

 

 

Note:

      

* Net business 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)

     (116,493     35,302        (151,795

Number of consolidated subsidiaries

     130        160        (30

Number of affiliated companies accounted for under the equity method

     58        59        (1

 

3


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

 

     (in millions of yen)  
     For the fiscal year ended     Increase
(Decrease)
(A) - (B)
 
     March 31, 2015
(A)
    March 31, 2014
(B)
   

Gross profits

     2,107,430        1,951,599        155,831   

Domestic gross profits

     1,097,286        1,130,258        (32,972

Net interest income

     711,957        724,560        (12,603

Net fees and commissions

     315,053        285,781        29,271   

Net trading profits

     (5,700     7,829        (13,529

Net other business profits

     75,974        112,086        (36,111

Net gains (losses) on debt securities

     58,753        89,222        (30,469

Non-domestic gross profits

     1,010,144        821,340        188,803   

Net interest income

     524,537        431,573        92,964   

Net fees and commissions

     198,351        186,861        11,489   

Net trading profits

     133,322        100,583        32,739   

Net other business profits

     153,932        102,322        51,609   

Net gains (losses) on debt securities

     58,153        43,311        14,842   

General and administrative expenses

     1,175,990        1,095,664        80,326   

Personnel expenses

     455,664        438,180        17,484   

Non-personnel expenses

     651,529        602,702        48,826   

Amortization of goodwill

     298        263        34   

Taxes

     68,796        54,781        14,014   

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

     931,738        856,198        75,539   

Net business profits before provision for general allowance for credit losses

     931,439        855,934        75,504   

Provision for general allowance for credit losses (1)

     (92,159     —          (92,159

Net business profits

     839,280        855,934        (16,654

Net non-recurring gains (losses)

     63,352        146,174        (82,821

Credit costs (2)

     (136     (61,617     61,480   

Losses on loan write-offs

     (40,251     (55,958     15,707   

Provision for specific allowance for credit losses

     54,984        —          54,984   

Other credit costs

     (14,870     (5,658     (9,211

Reversal of allowance for credit losses (3)

     —          47,987        (47,987

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

     3,736        197        3,539   

Gains on loans written-off (5)

     17,847        30,505        (12,658

Net gains (losses) on equity securities

     49,000        78,988        (29,988

Gains on sales of equity securities

     64,752        132,725        (67,973

Losses on sales of equity securities

     (10,316     (8,444     (1,871

Losses on write-down of equity securities

     (5,436     (45,292     39,856   

Other non-recurring gains (losses)

     (7,094     50,113        (57,208
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     902,632        1,002,109        (99,476
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (42,369     (17,319     (25,049

Net gains (losses) on disposition of fixed assets

     (1,800     (1,269     (531

Losses on impairment of fixed assets

     (3,470     (2,902     (567

Settlement package

     (37,097     (24,537     (12,560

Gains on sales of equity securities of affiliates

     —          10,367        (10,367

Income before income taxes

     860,263        984,789        (124,526

Income taxes-current

     299,349        250,648        48,700   

Refund of income taxes

     (29,639     (2,563     (27,075

Income taxes-deferred

     18,775        86,446        (67,671

Total taxes

     288,485        334,531        (46,046
  

 

 

   

 

 

   

 

 

 

Net income

     571,778        650,257        (78,479
  

 

 

   

 

 

   

 

 

 

(Reference)

      

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

     (70,712     17,072        (87,785

 

4


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Consolidated

 

     (in millions of yen)  
     For the fiscal year ended     Increase
(Decrease)
(A) - (B)
 
     March 31, 2015
(A)
    March 31, 2014
(B)
   

Gross profits

     460,643        425,831        34,811   

Gross profits before credit costs for trust accounts

     460,171        426,302        33,869   

Trust fees

     99,625        94,001        5,624   

Trust fees before credit costs for trust accounts

     99,154        94,472        4,681   

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

     7,584        5,921        1,663   

Other trust fees

     91,570        88,551        3,018   

Credit costs for trust accounts (1)

     471        (471     942   

Net interest income

     162,690        151,001        11,688   

Net fees and commissions

     174,179        158,984        15,194   

Net trading profits

     30,034        15,821        14,212   

Net other business profits

     (5,887     6,021        (11,908

Net gains (losses) on debt securities

     (7,192     (2,030     (5,161

General and administrative expenses

     253,529        240,590        12,938   

Amortization of goodwill

     1,049        597        451   

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

     207,691        186,309        21,382   

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

     206,642        185,711        20,930   

Provision for general allowance for credit losses (2)

     (4,024     —          (4,024

Net business profits*

     203,088        185,240        17,848   

Net non-recurring gains (losses)

     34,482        38,512        (4,029

Credit costs (3)

     1,491        (1,116     2,607   

Losses on loan write-offs

     (158     (1,210     1,052   

Provision for specific allowance for credit losses

     1,972        —          1,972   

Other credit costs

     (323     93        (416

Reversal of allowance for credit losses (4)

     —          17,603        (17,603

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

     522        1,278        (755

Gains on loans written-off (6)

     1,049        813        235   

Net gains (losses) on equity securities

     15,627        22,285        (6,657

Gains on sales of equity securities

     20,279        26,569        (6,289

Losses on sales of equity securities

     (4,166     (3,807     (359

Losses on write-down of equity securities

     (486     (477     (9

Profits (losses) from investments in affiliates

     11,583        4,242        7,341   

Other non-recurring gains (losses)

     4,207        (6,595     10,802   
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     237,570        223,752        13,818   
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     853        (10,664     11,518   

Net gains (losses) on disposition of fixed assets

     (3,324     (453     (2,870

Losses on impairment of fixed assets

     (5,466     (10,583     5,117   

Gains on change in equity

     9,643        —          9,643   

Income before income taxes and others

     238,424        213,087        25,336   

Income taxes-current

     73,636        42,657        30,979   

Income taxes-deferred

     (3,796     16,312        (20,108

Total taxes

     69,840        58,970        10,870   

Income before minority interests

     168,583        154,117        14,466   

Minority interests

     8,810        8,244        565   
  

 

 

   

 

 

   

 

 

 

Net income

     159,773        145,872        13,900   
  

 

 

   

 

 

   

 

 

 

Note:

      

* Net business 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)

     (489     18,108        (18,597

Number of consolidated subsidiaries

     54        48        6   

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, 2015
(A)
    March 31, 2014
(B)
   

Gross profits

     375,130        342,328        32,802   

Gross profits before credit costs for trust accounts

     374,659        342,799        31,860   

Domestic gross profits

     276,624        254,224        22,400   

Trust fees

     86,728        79,991        6,736   

Trust fees before credit costs for trust accounts

     86,257        80,462        5,794   

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

     7,584        5,921        1,663   

Other trust fees

     78,673        74,541        4,131   

Credit costs for trust accounts (1)

     471        (470     942   

Net interest income

     82,119        86,140        (4,021

Net fees and commissions

     96,525        92,615        3,909   

Net trading profits

     27,564        13,036        14,527   

Net other business profits

     (16,314     (17,561     1,247   

Net gains (losses) on debt securities

     (11,232     (17,050     5,818   

Non-domestic gross profits

     98,506        88,103        10,402   

Net interest income

     89,944        73,213        16,731   

Net fees and commissions

     1,753        362        1,390   

Net trading profits

     (2,191     (1,553     (637

Net other business profits

     8,999        16,080        (7,081

Net gains (losses) on debt securities

     4,039        15,019        (10,979

General and administrative expenses

     184,212        179,807        4,405   

Personnel expenses

     69,708        68,747        960   

Non-personnel expenses

     105,879        104,488        1,391   

Taxes

     8,624        6,571        2,053   

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

     190,446        162,992        27,454   

Provision for general allowance for credit losses (2)

     (3,987     —          (3,987

Net business profits

     186,930        162,521        24,409   

Net non-recurring gains (losses)

     23,147        32,556        (9,408

Credit costs (3)

     1,547        (1,068     2,615   

Losses on loan write-offs

     (115     (1,162     1,046   

Provision for specific allowance for credit losses

     1,985        —          1,985   

Other credit costs

     (323     93        (416

Reversal of allowance for credit losses (4)

     —          17,617        (17,617

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

     522        1,278        (755

Gains on loans written-off (6)

     1,007        741        266   

Net gains (losses) on equity securities

     14,059        18,019        (3,959

Gains on sales of equity securities

     18,665        26,616        (7,950

Losses on sales of equity securities

     (4,166     (3,793     (373

Losses on write-down of equity securities

     (439     (4,803     4,364   

Other non-recurring gains (losses)

     6,010        (4,030     10,041   
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     210,078        195,077        15,000   
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (8,669     (10,629     1,959   

Net gains (losses) on disposition of fixed assets

     (3,213     (443     (2,770

Losses on impairment of fixed assets

     (5,455     (10,558     5,102   

Income before income taxes

     201,408        184,448        16,960   

Income taxes-current

     62,411        33,477        28,934   

Income taxes-deferred

     (1,760     14,644        (16,404

Total taxes

     60,651        48,122        12,529   
  

 

 

   

 

 

   

 

 

 

Net income

     140,757        136,326        4,431   
  

 

 

   

 

 

   

 

 

 

(Reference)

      

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

     (438     18,097        (18,535

 

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, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    For the fiscal year
ended
March 31, 2014
(B)
 

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

     0.65        (0.05     0.70   

Average interest rate on loans and bills discounted (b)

     1.02        (0.08     1.11   

Average interest rate on securities

     0.57        0.09        0.47   

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

     0.72        (0.02     0.74   

Average interest rate on deposits and NCD (d)

     0.03        (0.00     0.04   

Average interest rate on other liabilities

     0.17        (0.02     0.19   

Overall interest rate spread (a)-(c)

     (0.06     (0.02     (0.03

Interest rate spread (b)-(d)

     0.99        (0.08     1.07   

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

      

Average interest rate on loans and bills discounted (e)

     1.20        (0.09     1.30   

Interest rate spread (e)-(d)

     1.16        (0.09     1.26   

MUTB Non-consolidated

 

      
     (percentage per annum)  
(Domestic business segment)    For the fiscal year
ended
March 31, 2015
(A)
    Increase
      (Decrease)      
(A) - (B)
    For the fiscal year
ended
March 31, 2014
(B)
 

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

     0.54        (0.08     0.62   

Average interest rate on loans and bills discounted (b)

     0.75        (0.09     0.84   

Average interest rate on securities

     0.56        (0.01     0.58   

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

     0.16        (0.02     0.19   

Average interest rate on deposits and NCD (d)

     0.13        (0.02     0.15   

Overall interest rate spread (a)-(c)

     0.37        (0.06     0.43   

Interest rate spread (b)-(d)

     0.61        (0.07     0.68   

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

      

Average interest rate on loans and bills discounted (e)

     0.75        (0.09     0.84   

Interest rate spread (e)-(d)

     0.61        (0.07     0.68   

BTMU and MUTB Combined

 

      
     (percentage per annum)  
(Domestic business segment)    For the fiscal year
ended
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    For the fiscal year
ended
March 31, 2014
(B)
 

Average interest rate on loans and bills discounted (a)

     0.98        (0.08     1.07   

Average interest rate on deposits and NCD (b)

     0.04        (0.00     0.05   

Interest rate spread (a)-(b)

     0.94        (0.08     1.02   

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

      

Average interest rate on loans and bills discounted (c)

     1.12        (0.09     1.22   

Interest rate spread (c)-(b)

     1.07        (0.09     1.16   

 

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, 2015  
     within 1 year      1 year to 5 years      over 5 years      Total  

Receive-fix/pay-floater

     498.6         6,117.7         14,040.2         20,656.6   

Receive-floater/pay-fix

     780.3         5,386.2         8,265.4         14,431.9   

Receive-floater/pay-floater

     —           —           —           —     

Receive-fix/pay-fix

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     1,278.9         11,503.9         22,305.6         35,088.5   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

BTMU Consolidated

 

  

  
     (in billions of yen)  
     As of March 31, 2015  
     within 1 year      1 year to 5 years      over 5 years      Total  

Receive-fix/pay-floater

     372.6         4,234.1         13,990.2         18,597.0   

Receive-floater/pay-fix

     435.3         3,657.5         6,735.7         10,828.6   

Receive-floater/pay-floater

     —           —           —           —     

Receive-fix/pay-fix

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     808.0         7,891.7         20,725.9         29,425.6   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

MUTB Consolidated

 

  

  
     (in billions of yen)  
     As of March 31, 2015  
     within 1 year      1 year to 5 years      over 5 years      Total  

Receive-fix/pay-floater

     126.0         1,883.6         50.0         2,059.6   

Receive-floater/pay-fix

     350.2         1,693.0         1,537.8         3,581.1   

Receive-floater/pay-floater

     —           —           —           —     

Receive-fix/pay-fix

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     476.2         3,576.6         1,587.8         5,640.7   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

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, 2015      As of March 31, 2014  
     Amount on
consolidated
balance sheet
     Differences      Gains      Losses      Amount on
consolidated
balance sheet
     Differences     Gains      Losses  

Debt securities being held to maturity

     4,133,677         53,728         59,081         5,352         2,778,658         27,082        39,133         12,050   

Domestic bonds

     1,126,212         14,556         16,091         1,535         214,969         868        868         —     

Government bonds

     1,126,212         14,556         16,091         1,535         214,969         868        868         —     

Municipal bonds

     —           —           —           —           —           —          —           —     

Corporate bonds

     —           —           —           —           —           —          —           —     

Other

     3,007,465         39,172         42,990         3,817         2,563,688         26,214        38,265         12,050   

Foreign bonds

     1,006,421         15,813         17,244         1,431         831,646         (7,312     2,358         9,671   

Other

     2,001,043         23,359         25,745         2,386         1,732,042         33,527        35,907         2,379   
     (in millions of yen)  
     As of March 31, 2015      As of March 31, 2014  
     Amount on
consolidated
balance sheet
     Differences      Gains      Losses      Amount on
consolidated
balance sheet
     Differences     Gains      Losses  

Other securities

     69,336,270         4,133,200         4,244,272         111,071         71,722,006         1,869,917        2,180,880         310,962   

Domestic equity securities

     5,721,393         2,930,019         2,969,586         39,566         4,384,190         1,559,699        1,650,295         90,596   

Domestic bonds

     36,520,219         326,376         331,539         5,163         43,123,653         222,860        227,123         4,262   

Government bonds

     34,084,434         273,479         274,856         1,377         40,434,950         167,753        169,356         1,603   

Municipal bonds

     188,316         5,374         5,441         67         197,927         6,679        6,703         23   

Corporate bonds

     2,247,468         47,522         51,241         3,718         2,490,776         48,427        51,063         2,636   

Other

     27,094,657         876,804         943,146         66,341         24,214,162         87,357        303,461         216,103   

Foreign equity securities

     191,401         58,466         59,040         574         217,513         81,675        81,712         36   

Foreign bonds

     22,564,990         597,340         623,146         25,805         20,599,891         (53,023     130,997         184,021   

Other

     4,338,265         220,996         260,958         39,961         3,396,757         58,705        90,750         32,044   

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

 

  

     (in millions of yen)  
     As of March 31, 2015      As of March 31, 2014  
     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

     13,171,744         14,958,317         6,169,701         3,346,807         15,403,755         20,596,975        5,741,699         1,596,384   

Government bonds

     12,937,240         14,021,104         5,720,272         2,532,029         15,104,245         19,476,366        5,269,520         799,787   

Municipal bonds

     8,288         109,919         69,720         388         19,619         125,263        52,631         412   

Corporate bonds

     226,215         827,293         379,707         814,390         279,890         995,345        419,547         796,184   

Other

     3,205,730         8,992,502         8,998,103         6,001,088         2,850,379         11,868,248        5,319,278         4,446,307   

Foreign bonds

     2,897,339         8,048,236         7,581,013         5,023,170         2,531,411         11,237,229        3,870,225         3,770,269   

Other

     308,390         944,265         1,417,090         977,917         318,967         631,019        1,449,052         676,037   

Total

     16,377,474         23,950,819         15,167,804         9,347,895         18,254,134         32,465,223        11,060,978         6,042,692   

 

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, 2015     As of March 31, 2014  
    Amount on
balance sheet
    Differences     Gains     Losses     Amount on
balance sheet
    Differences     Gains     Losses  

Debt securities being held to maturity

    3,102,252        37,860        41,782        3,921        1,750,757        33,527        35,907        2,379   

Stocks of subsidiaries and affiliates

    865,646        206,054        214,537        8,482        676,760        (6,226     30,867        37,094   
    (in millions of yen)  
    As of March 31, 2015     As of March 31, 2014  
    Amount on
balance sheet
    Differences     Gains     Losses     Amount on
balance sheet
    Differences     Gains     Losses  

Other securities

    48,785,016        3,073,221        3,144,265        71,043        54,117,050        1,367,125        1,585,230        218,104   

Domestic equity securities

    4,673,946        2,291,397        2,329,749        38,351        3,548,461        1,144,077        1,233,376        89,298   

Domestic bonds

    29,967,153        275,064        277,934        2,870        36,175,473        171,251        175,419        4,168   

Other

    14,143,916        506,759        536,580        29,821        14,393,114        51,796        176,434        124,638   

Foreign equity securities

    178,531        53,595        53,975        380        197,436        77,286        78,166        880   

Foreign bonds

    10,872,292        352,571        357,787        5,215        11,594,024        (50,095     50,043        100,139   

Other

    3,093,093        100,591        124,817        24,225        2,601,654        24,605        48,223        23,617   

 

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

 

  

    (in millions of yen)  
    As of March 31, 2015     As of March 31, 2014  
    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

    12,326,240        10,215,947        5,198,489        3,327,684        13,963,192        16,072,562        4,559,235        1,580,483   

Government bonds

    12,140,028        9,488,185        4,809,644        2,515,940        13,707,896        15,188,464        4,158,774        799,787   

Municipal bonds

    8,288        109,795        69,720        348        19,619        125,104        52,631        370   

Corporate bonds

    177,923        617,966        319,124        811,396        235,676        758,993        347,829        780,325   

Other

    1,882,058        3,802,126        5,557,515        2,548,304        2,062,205        7,088,092        3,330,584        1,676,487   

Foreign bonds

    1,582,064        3,197,740        4,265,657        1,805,117        1,743,698        6,670,035        1,986,860        1,189,493   

Other

    299,994        604,385        1,291,857        743,186        318,506        418,057        1,343,724        486,993   

Total

    14,208,298        14,018,074        10,756,005        5,875,988        16,025,397        23,160,654        7,889,820        3,256,970   

 

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, 2015      As of March 31, 2014  
     Amount on
balance sheet
     Differences      Gains      Losses      Amount on
balance sheet
     Differences      Gains      Losses  

Debt securities being held to maturity

     24,978         54         54         —           220,090         876         876         —     

Stocks of subsidiaries and affiliates

     57,771         133,960         134,064         104         57,771         100,140         100,395         255   
     (in millions of yen)  
     As of March 31, 2015      As of March 31, 2014  
     Amount on
balance sheet
     Differences      Gains      Losses      Amount on
balance sheet
     Differences      Gains      Losses  

Other securities

     16,903,411         966,807         988,212         21,404         14,521,222         452,388         497,868         45,480   

Domestic equity securities

     1,081,815         556,050         563,430         7,380         856,844         322,464         343,759         21,295   

Domestic bonds

     6,479,441         50,320         52,709         2,389         6,717,762         42,635         42,851         215   

Other

     9,342,154         360,436         372,071         11,634         6,946,615         87,288         111,257         23,969   

Foreign equity securities

     36         24         24         —           380         129         129         —     

Foreign bonds

     8,455,745         243,361         244,759         1,397         6,469,332         52,605         74,001         21,395   

Other

     886,372         117,050         127,287         10,236         476,901         34,553         37,127         2,573   

 

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

 

  

  
     (in millions of yen)  
     As of March 31, 2015      As of March 31, 2014  
     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

     690,184         4,813,751         981,359         19,123         1,258,404         4,370,126         1,288,276         15,901   

Government bonds

     646,795         4,617,073         910,789         16,089         1,222,738         4,153,846         1,216,558         —     

Municipal bonds

     —           123         —           40         —           159         —           42   

Corporate bonds

     43,389         196,555         70,570         2,994         35,665         216,120         71,717         15,858   

Other

     633,296         4,060,046         2,863,534         1,276,777         377,295         4,068,415         1,401,156         851,471   

Foreign bonds

     632,681         3,739,713         2,822,844         1,260,506         376,462         3,898,013         1,361,704         838,298   

Other

     615         320,333         40,689         16,271         832         170,402         39,451         13,173   

Total

     1,323,481         8,873,798         3,844,893         1,295,900         1,635,699         8,438,541         2,689,432         867,372   

 

11


Mitsubishi UFJ Financial Group, Inc.

 

5. ROE

MUFG Consolidated

 

     (%)  
     For the fiscal year
ended
March 31, 2015
(A)
     Increase
(Decrease)
(A) - (B)
    For the fiscal year
ended
March 31, 2014
(B)
 

ROE

     8.74         (0.31     9.05   

Note:

ROE is computed as follows:

 

Net income - 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, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
    As of
September 30, 2014
 

(1)    Total capital ratio (4)/(7)

     15.68     0.14     15.53     15.39

(2)    Tier 1 capital ratio (5)/(7)

     12.62     0.17     12.45     12.21

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

     11.14     (0.11 )%      11.25     10.97

(4)    Total capital

     17,552.3        2,157.9        15,394.3        16,039.1   

(5)    Tier 1 capital

     14,130.3        1,788.4        12,341.8        12,726.1   

(6)    Common Equity Tier 1 capital

     12,466.6        1,313.5        11,153.0        11,435.8   

(7)    Risk weighted assets

     111,901.5        12,817.2        99,084.3        104,160.1   

(8)    Required Capital (7)×8%

     8,952.1        1,025.3        7,926.7        8,332.8   
BTMU Consolidated    (in billions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
    As of
September 30, 2014
 

(1)    Total capital ratio (4)/(7)

     15.61     0.03     15.57     15.41

(2)    Tier 1 capital ratio (5)/(7)

     12.33     0.12     12.21     11.95

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

     10.88     (0.16 )%      11.05     10.72

(4)    Total capital

     13,730.7        1,474.5        12,256.1        12,696.9   

(5)    Tier 1 capital

     10,848.8        1,237.3        9,611.5        9,843.7   

(6)    Common Equity Tier 1 capital

     9,571.8        875.2        8,696.5        8,836.2   

(7)    Risk weighted assets

     87,932.1        9,254.0        78,678.0        82,367.0   

(8)    Required Capital (7)×8%

     7,034.5        740.3        6,294.2        6,589.3   
MUTB Consolidated    (in billions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
    As of
September 30, 2014
 

(1)    Total capital ratio (4)/(7)

     19.15     0.76     18.38     19.72

(2)    Tier 1 capital ratio (5)/(7)

     15.26     0.49     14.76     15.54

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

     14.70     0.48     14.21     14.98

(4)    Total capital

     2,336.7        279.4        2,057.3        2,181.7   

(5)    Tier 1 capital

     1,861.4        209.0        1,652.4        1,719.0   

(6)    Common Equity Tier 1 capital

     1,793.5        202.8        1,590.6        1,657.2   

(7)    Risk weighted assets

     12,197.0        1,008.8        11,188.1        11,061.9   

(8)    Required Capital (7)×8%

     975.7        80.7        895.0        884.9   
BTMU Non-consolidated    (in billions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
    As of
September 30, 2014
 

(1)    Total capital ratio (4)/(7)

     17.23     (0.28 )%      17.52     17.12

(2)    Tier 1 capital ratio (5)/(7)

     13.54     (0.20 )%      13.74     13.30

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

     11.90     0.02     11.88     11.57

(4)    Total capital

     12,466.9        884.7        11,582.1        11,993.8   

(5)    Tier 1 capital

     9,791.8        704.5        9,087.3        9,321.8   

(6)    Common Equity Tier 1 capital

     8,611.2        756.5        7,854.6        8,105.3   

(7)    Risk weighted assets

     72,316.7        6,225.8        66,090.9        70,039.3   

(8)    Required Capital (7)×8%

     5,785.3        498.0        5,287.2        5,603.1   
MUTB Non-consolidated    (in billions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) -  (B)
    As of
March 31, 2014
(B)
    As of
September 30, 2014
 

(1)    Total capital ratio (4)/(7)

     19.16     0.64     18.51     19.61

(2)    Tier 1 capital ratio (5)/(7)

     14.90     0.52     14.37     14.95

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

     14.35     0.62     13.72     14.29

(4)    Total capital

     2,318.9        249.9        2,068.9        2,175.5   

(5)    Tier 1 capital

     1,803.5        196.8        1,606.6        1,658.0   

(6)    Common Equity Tier 1 capital

     1,736.4        202.6        1,533.7        1,585.2   

(7)    Risk weighted assets

     12,099.1        925.3        11,173.8        11,089.6   

(8)    Required Capital (7)×8%

     967.9        74.0        893.9        887.1   

 

Note: 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.

 

13


Mitsubishi UFJ Financial Group, Inc.

 

7. Risk-Monitored Loans

MUFG Consolidated

(1) Risk-Monitored Loans

 

    (in millions of yen)  
    As of
March 31, 2015
(A)
    % to total loans
and bills discounted
    As of
March 31, 2014
(B)
    % to total loans
and bills discounted
    Increase
(Decrease)
(A) - (B)
    % to total loans
and bills discounted
 

Loans to bankrupt borrowers

    23,586        0.02     27,479        0.02     (3,892     (0.00 )% 

Non-accrual delinquent loans

    811,478        0.74     1,046,663        1.02     (235,185     (0.28 )% 

Accruing loans contractually past due 3 months or more

    51,034        0.04     50,076        0.04     958        (0.00 )% 

Restructured loans

    653,839        0.59     581,309        0.57     72,530        0.02

Total risk monitored loans

    1,539,939        1.40     1,705,529        1.67     (165,589     (0.26 )% 

Total loans and bills discounted

    109,368,340          101,938,907          7,429,432     

Written-off

    478,168          521,879          (43,711  
(2) Allowance for Credit Losses            
    (in millions of yen)  
    As of
March 31, 2015
(A)
    % to total risk
monitored loans
    As of
March 31, 2014
(B)
    % to total risk
monitored loans
    Increase
(Decrease)
(A) - (B)
    % to total risk
monitored loans
 

Allowance for credit losses

    995,784        64.66     938,483        55.02     57,301        9.63

General allowance for credit losses

    766,272          629,209          137,062     

Specific allowance for credit losses

    228,297          307,883          (79,585  

Allowance for credit to specific foreign borrowers

    1,214          1,390          (175  

(3) Classification of Risk-Monitored Loans

Classified by Geographic Area    (in millions of yen)  
     As of
March 31, 2015
(A)
     As of
March 31, 2014
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     1,242,070         1,375,201         (133,130

Overseas

     297,868         330,327         (32,458

Asia

     108,805         89,008         19,796   

Indonesia

     4,348         3,102         1,245   

Singapore

     1,082         27         1,055   

Thailand

     88,049         66,812         21,236   

Hong Kong

     —           781         (781

China

     110         126         (15

Other

     15,214         18,158         (2,944

Americas

     100,784         114,988         (14,204

Europe, Middle East and Other

     88,279         126,330         (38,050
  

 

 

    

 

 

    

 

 

 

Total

     1,539,939         1,705,529         (165,589
  

 

 

    

 

 

    

 

 

 

 

Classified by Industry    (in millions of yen)  
     As of
March 31, 2015
(A)
     As of
March 31, 2014
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     1,242,070         1,375,201         (133,130

Manufacturing

     346,306         263,319         82,986   

Construction

     26,871         37,945         (11,074

Wholesale and retail

     211,910         246,120         (34,209

Finance and insurance

     5,681         8,106         (2,424

Real estate, goods rental and leasing

     121,771         197,128         (75,356

Services

     82,905         107,142         (24,236

Other industries

     44,908         65,548         (20,640

Consumer

     401,716         449,891         (48,175

Overseas

     297,868         330,327         (32,458

Financial institutions

     8,496         24,238         (15,742

Commercial and industrial

     120,954         137,049         (16,094

Other

     168,418         169,039         (621
  

 

 

    

 

 

    

 

 

 

Total

     1,539,939         1,705,529         (165,589
  

 

 

    

 

 

    

 

 

 

 

14


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

(1) Risk-Monitored Loans

 

    (in millions of yen)  
    As of
March 31, 2015
(A)
    % to total loans
and bills discounted
    As of
March 31, 2014
(B)
    % to total loans
and bills discounted
    Increase
(Decrease)
(A) - (B)
    % to total loans
and bills discounted
 

Loans to bankrupt borrowers

    14,913        0.01     20,637        0.02     (5,723     (0.00 )% 

Non-accrual delinquent loans

    606,554        0.73     863,900        1.08     (257,345     (0.35 )% 

Accruing loans contractually past due 3 months or more

    55,538        0.06     57,177        0.07     (1,639     (0.00 )% 

Restructured loans

    483,795        0.58     401,102        0.50     82,693        0.08

Total risk monitored loans

    1,160,802        1.40     1,342,818        1.68     (182,015     (0.28 )% 

Total loans and bills discounted

    82,740,384          79,495,010          3,245,373     

Written-off

    340,284          353,636          (13,352  

(2) Allowance for Credit Losses

 

  

    (in millions of yen)  
    As of
March 31, 2015
(A)
    % to total risk
monitored loans
    As of
March 31, 2014
(B)
    % to total risk
monitored loans
    Increase
(Decrease)
(A) - (B)
    % to total risk
monitored loans
 

Allowance for credit losses

    644,579        55.52     651,662        48.52     (7,082     6.99

General allowance for credit losses

    492,721          401,533          91,187     

Specific allowance for credit losses

    150,643          248,738          (98,095  

Allowance for credit to specific foreign borrowers

    1,214          1,390          (175  
(3) Classification of Risk-Monitored Loans             
Classified by Geographic Area    (in millions of yen)  
     As of
March 31, 2015
(A)
     As of
March 31, 2014
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     1,034,888         1,168,147         (133,258

Overseas

     125,913         174,670         (48,757

Asia

     16,510         21,592         (5,082

Indonesia

     1,397         1,312         84   

Singapore

     —           27         (27

Thailand

     —           1,401         (1,401

Hong Kong

     —           781         (781

China

     —           —           —     

Other

     15,113         18,069         (2,956

Americas

     21,123         29,489         (8,365

Europe, Middle East and Other

     88,279         123,588         (35,309
  

 

 

    

 

 

    

 

 

 

Total

     1,160,802         1,342,818         (182,015
  

 

 

    

 

 

    

 

 

 

Classified by Industry

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
     As of
March 31, 2014
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     1,034,888         1,168,147         (133,258

Manufacturing

     326,239         250,801         75,438   

Construction

     26,136         37,171         (11,035

Wholesale and retail

     207,464         243,723         (36,259

Finance and insurance

     5,374         6,451         (1,077

Real estate

     106,276         178,365         (72,088

Goods rental and leasing

     4,914         3,744         1,169   

Services

     82,495         106,210         (23,715

Other industries

     44,024         64,513         (20,489

Consumer

     231,963         277,163         (45,199

Overseas

     125,913         174,670         (48,757

Financial institutions

     7,298         24,140         (16,842

Commercial and industrial

     40,586         56,056         (15,470

Other

     78,029         94,473         (16,444
  

 

 

    

 

 

    

 

 

 

Total

     1,160,802         1,342,818         (182,015
  

 

 

    

 

 

    

 

 

 

 

15


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Risk-Monitored Loans

 

    (in millions of yen)  
    As of
March 31, 2015
(A)
    % to total loans
and bills discounted
    As of
March 31, 2014
(B)
    % to total loans
and bills discounted
    Increase
(Decrease)
(A) - (B)
    % to total loans
and bills discounted
 

Loans to bankrupt borrowers

    476        0.00     491        0.00     (15     (0.00 )% 

Non-accrual delinquent loans

    23,093        0.18     27,099        0.22     (4,006     (0.04 )% 

Accruing loans contractually past due 3 months or more

    405        0.00     866        0.00     (461     (0.00 )% 

Restructured loans

    21,460        0.17     15,808        0.13     5,651        0.03

Total risk monitored loans

    45,434        0.36     44,266        0.37     1,168        (0.01 )% 

Total loans and bills discounted

    12,609,827          11,909,155          700,671     

Written-off

    11,918          14,136          (2,218  

(2) Allowance for Credit Losses

 

  

    (in millions of yen)  
    As of
March 31, 2015
(A)
    % to total risk
monitored loans
    As of
March 31, 2014
(B)
    % to total risk
monitored loans
    Increase
(Decrease)
(A) - (B)
    % to total risk
monitored loans
 

Allowance for credit losses

    38,549        84.84     36,821        83.18     1,727        1.66

General allowance for credit losses

    32,000          28,013          3,987     

Specific allowance for credit losses

    6,548          8,807          (2,259  

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, 2015
(A)
     As of
March 31, 2014
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     44,340         41,512         2,828   

Overseas

     1,094         2,754         (1,660

Asia

     1,082         —           1,082   

Indonesia

     —           —           —     

Singapore

     1,082         —           1,082   

Thailand

     —           —           —     

Hong Kong

     —           —           —     

China

     —           —           —     

Other

     —           —           —     

Americas

     12         13         (0

Europe, Middle East and Other

     —           2,741         (2,741
  

 

 

    

 

 

    

 

 

 

Total

     45,434         44,266         1,168   
  

 

 

    

 

 

    

 

 

 
Classified by Industry    (in millions of yen)  
     As of
March 31, 2015
(A)
     As of
March 31, 2014
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     44,340         41,512         2,828   

Manufacturing

     20,036         12,487         7,548   

Construction

     714         744         (30

Wholesale and retail

     4,254         2,172         2,082   

Finance and insurance

     282         1,628         (1,345

Real estate

     10,480         14,815         (4,335

Goods rental and leasing

     —           —           —     

Services

     385         900         (515

Other industries

     878         1,029         (151

Consumer

     7,308         7,733         (425

Overseas

     1,094         2,754         (1,660

Financial institutions

     1,082         —           1,082   

Commercial and industrial

     —           2,741         (2,741

Other

     12         13         (0
  

 

 

    

 

 

    

 

 

 

Total

     45,434         44,266         1,168   
  

 

 

    

 

 

    

 

 

 

 

16


Mitsubishi UFJ Financial Group, Inc.

 

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, 2015
(A)
     % to total loans
and bills discounted
    As of
March 31, 2014
(B)
     % to total loans
and bills discounted
    Increase
(Decrease)
(A) - (B)
    % to total loans
and bills discounted
 

Loans to bankrupt borrowers

     3         0.01     70         0.22     (66     (0.20 )% 

Non-accrual delinquent loans

     0         0.00     0         0.00     (0     (0.00 )% 

Accruing loans contractually past due 3 months or more

     165         0.61     163         0.51     2        0.09

Restructured loans

     751         2.78     1,371         4.31     (620     (1.53 )% 

Total risk monitored loans

     921         3.41     1,606         5.05     (684     (1.64 )% 

Total loans and bills discounted

     27,008           31,782           (4,774  

(2) Allowance for Credit Losses

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
     As of
March 31, 2014
(B)
     Increase
(Decrease)
(A) - (B)
 

Allowance for bad debts

     81         95         (14
(3) Classification of Risk-Monitored Loans   

Classified by Industry

 

        
     (in millions of yen)  
     As of
March 31, 2015
(A)
     As of
March 31, 2014
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     921         1,606         (684

Manufacturing

     —           —           —     

Construction

     —           —           —     

Wholesale and retail

     —           —           —     

Finance and insurance

     —           —           —     

Real estate

     688         814         (126

Goods rental and leasing

     —           —           —     

Services

     —           —           —     

Other industries

     —           —           —     

Consumer

     232         791         (558
  

 

 

    

 

 

    

 

 

 

Total

     921         1,606         (684
  

 

 

    

 

 

    

 

 

 

 

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, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

         89,866        94,054        (4,188

Doubtful

         571,436        848,304        (276,867

Special Attention

         561,985        475,767        86,218   

Non Performing Loans (1)

         1,223,289        1,418,127        (194,837

Normal

         104,112,357        99,058,578        5,053,779   

Total

         105,335,646        100,476,705        4,858,941   

Non Performing Loans / Total

         1.16     1.41     (0.25 )% 

(2) Status of Coverage of Non Performing Loans

 

  

 
                 (in millions of yen)  
                 As of
March 31, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

         940,856        1,108,904        (168,048

Allowance for credit losses

         321,940        378,600        (56,660

Collateral, guarantees, etc.

         618,916        730,304        (111,388

Coverage ratio (2) / (1)

         76.91 %      78.19     (1.28 )% 

(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

     89,866        1,191        88,674          100.00
     [94,054     [1,151     [92,903       [100.00 %] 

Doubtful

     571,436        153,008        300,448          79.35
     [848,304     [252,773     [402,251       [77.21 %] 

Special Attention

     561,985        167,740        229,792          70.73
     [475,767     [124,675     [235,149       [75.63 %] 

Total

     1,223,289        321,940        618,916          76.91
     [1,418,127     [378,600     [730,304       [78.19 %] 

Note:  The upper figures are as of March 31, 2015. The lower figures with brackets are as of March 31, 2014.

 

(4) Classified by Industry

 

     

  

 
                 (in millions of yen)  
                 As of
March 31, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Domestic

         1,091,554        1,235,131        (143,577

Manufacturing

         347,914        267,151        80,762   

Construction

         26,937        38,178        (11,241

Wholesale and retail

         216,734        256,769        (40,034

Finance and insurance

         7,279        9,822        (2,543

Real estate

         118,470        196,572        (78,101

Goods rental and leasing

         4,922        3,744        1,177   

Services

         83,500        108,214        (24,714

Other industries

         45,901        68,620        (22,718

Consumer

         239,892        286,056        (46,163

Overseas

         131,735        182,995        (51,260

Financial institutions

         8,380        24,140        (15,759

Commercial and industrial

         45,312        64,368        (19,055

Other

         78,041        94,486        (16,445

Total

         1,223,289        1,418,127        (194,837

 

18


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

(1) Non Performing Loans

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

     87,955        91,524        (3,568

Doubtful

     549,635        822,431        (272,796

Special Attention

     539,334        458,280        81,053   

Non Performing Loans (1)

     1,176,925        1,372,236        (195,311

Normal

     91,117,065        86,906,340        4,210,725   

Total

     92,293,991        88,278,576        4,015,414   

Non Performing Loans / Total

     1.27     1.55     (0.27 )% 

(2) Status of Coverage of Non Performing Loans

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

     905,598        1,069,080        (163,481

Allowance for credit losses

     308,487        365,749        (57,262

Collateral, guarantees, etc.

     597,111        703,330        (106,219

Coverage ratio (2) / (1)

     76.94     77.90     (0.96 )% 

(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

     87,955        1,176        86,778        100.00     100.00
     [91,524     [1,136     [90,388     [100.00 %]      [100.00 %] 

Doubtful

     549,635        147,035        288,723        56.35     79.28
     [822,431     [244,560     [389,674     [56.51 %]      [77.11 %] 

Special Attention

     539,334        160,274        221,609        50.44     70.80
     [458,280     [120,052     [223,268     [51.08 %]      [74.91 %] 

Total

     1,176,925        308,487        597,111        53.20     76.94
     [1,372,236     [365,749     [703,330     [54.67 %]      [77.90 %] 

Note:  The upper figures are as of March 31, 2015. The lower figures with brackets are as of March 31, 2014.

     

 

(4) Classified by Industry

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
     As of
March 31, 2014
(B)
     Increase
(Decrease)
(A) - (B)
 

Domestic

     1,046,284         1,191,996         (145,711

Manufacturing

     327,878         254,664         73,214   

Construction

     26,223         37,434         (11,211

Wholesale and retail

     212,480         254,596         (42,116

Finance and insurance

     6,996         8,194         (1,198

Real estate

     107,302         180,941         (73,639

Goods rental and leasing

     4,922         3,744         1,177   

Services

     83,115         107,314         (24,199

Other industries

     45,023         67,590         (22,567

Consumer

     232,343         277,514         (45,170

Overseas

     130,640         180,240         (49,599

Financial institutions

     7,298         24,140         (16,842

Commercial and industrial

     45,312         61,626         (16,313

Other

     78,029         94,473         (16,444

Total

     1,176,925         1,372,236         (195,311

 

19


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Non Performing Loans

 

                 (in millions of yen)  
                 As of
March 31, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

         1,898        2,459        (560

Doubtful

         21,678        25,149        (3,470

Special Attention

         21,865        16,675        5,189   

Non Performing Loans (1)

         45,442        44,284        1,158   

Normal

         12,969,204        12,122,061        847,143   

Total

         13,014,647        12,166,345        848,301   

Non Performing Loans / Total

         0.34     0.36     (0.01 )% 
(2) Status of Coverage of Non Performing Loans           
                 (in millions of yen)  
                 As of
March 31, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

         34,572        38,522        (3,950

Allowance for credit losses

         13,453        12,851        602   

Collateral, guarantees, etc.

         21,118        25,671        (4,552

Coverage ratio (2) / (1)

         76.07     86.98     (10.91 )% 
(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

     1,898        14        1,883        100.00     100.00
     [2,459     [15     [2,444     [100.00 %]      [100.00 %] 

Doubtful

     21,678        5,972        11,623        59.40     81.16
     [25,149     [8,213     [11,922     [62.09 %]      [80.06 %] 

Special Attention

     21,865        7,465        7,611        52.37     68.95
     [16,675     [4,622     [11,305     [86.07 %]      [95.51 %] 

Total

     45,442        13,453        21,118        55.30     76.07
     [44,284     [12,851     [25,671     [69.04 %]      [86.98 %] 

Note:  The upper figures are as of March 31, 2015. The lower figures with brackets are as of March 31, 2014.

 

(4) Classified by Industry

 

  

  

                 (in millions of yen)  
                 As of
March 31, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Domestic

         44,348        41,529        2,818   

Manufacturing

         20,036        12,487        7,548   

Construction

         714        744        (30

Wholesale and retail

         4,254        2,172        2,082   

Finance and insurance

         282        1,628        (1,345

Real estate

         10,480        14,815        (4,335

Goods rental and leasing

         —          —          —     

Services

         385        900        (515

Other industries

         878        1,029        (151

Consumer

         7,316        7,750        (434

Overseas

         1,094        2,755        (1,660

Financial institutions

         1,082        —          1,082   

Commercial and industrial

         —          2,741        (2,741

Other

         12        13        (0

Total

         45,442        44,284        1,158   

 

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, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

         12        70        (58

Doubtful

         122        723        (601

Special Attention

         786        811        (25

Non Performing Loans (1)

         921        1,606        (684

Normal

         26,086        30,176        (4,089

Total

         27,008        31,782        (4,774

Non Performing Loans / Total

         3.41     5.05     (1.64 )% 

(2) Status of Coverage of Non Performing Loans

 

  

 
                 (in millions of yen)  
                 As of
March 31, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

         686        1,301        (615

Allowance for credit losses

         —          —          —     

Collateral, guarantees, etc.

         686        1,301        (615

Coverage ratio (2) / (1)

         74.50     81.04     (6.54 )% 

(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

     12               12          100.00
     [70     [—     [70       [100.00 %] 

Doubtful

     122               101          83.05
     [723     [—     [654       [90.48 %] 

Special Attention

     786               572          72.76
     [811     [—     [576       [70.98 %] 

Total

     921               686          74.50
     [1,606     [—     [1,301       [81.04 %] 

Note:  The upper figures are as of March 31, 2015. The lower figures with brackets are as of March 31, 2014.

     

 

(4) Classified by Industry

 

          
                 (in millions of yen)  
                 As of
March 31, 2015
(A)
    As of
March 31, 2014
(B)
    Increase
(Decrease)
(A) - (B)
 

Domestic

         921        1,606        (684

Manufacturing

         —          —          —     

Construction

         —          —          —     

Wholesale and retail

         —          —          —     

Finance and insurance

         —          —          —     

Real estate

         688        814        (126

Goods rental and leasing

         —          —          —     

Services

         —          —          —     

Other industries

         —          —          —     

Consumer

         232        791        (558

Total

         921        1,606        (684

 

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

 

  [88.6]   [0.4]  

 

[0.7]

 

(*1)

     

 

100.00%

     

i) Bankrupt or

De facto Bankrupt

 

[89.8]

     

Loans to bankrupt borrowers

 

[15.3]

 

 

Substantially
Bankrupt
Borrowers

 

                   

Non-accrual

delinquent loans

 

[629.6]

 

Potentially
Bankrupt
Borrowers

 

  [301.5]   [269.7]           56.46%      

ii) Doubtful

 

[571.3]

     
               

Borrowers
Requiring
Caution
(Special
Attention
Borrowers)

 

  [561.1]           50.52%      

iii) Special Attention

 

[561.1]

     

Accruing loans contractually past due

3 months or more

 

[55.9]

 

                         

 

Restructured loans

 

[505.2]

 

           
                             
           

Borrowers
Requiring
Caution
(Other
Borrowers)

 

                 

iv) Normal

 

[104,086.2]

 

 

         

 

Normal
Borrowers

 

                         
   
                Non-Performing Loans Based on the “FRL”       Risk-Monitored Loans
                i) + ii) + iii)      
                1,222.3       1,206.2
                Total      
                i) + ii) + iii) + iv)      
                105,308.6      

 

(*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, 2012
     As of
March 31, 2013
     As of
March 31, 2014
(A)
     As of
March 31, 2015
(B)
     (B) - (A)  

Assets newly categorized during fiscal 2011

     393,988         281,203         164,748         105,408         (59,340

Assets newly categorized during fiscal 2012

        340,637         204,404         94,261         (110,143

Assets newly categorized during fiscal 2013

           195,312         121,427         (73,884

Assets newly categorized during fiscal 2014

              98,674      

(2) Progress in Disposition of Problem Assets

 

     (in millions of yen)  
     For the fiscal year ended March 31, 2015  
            Bankrupt or
De facto Bankrupt
     Doubtful  

Liquidation

     11,368         

Reconstructive treatment

     13,553         

Upgrade due to reconstructive treatment

     4,703         

Loan sold to secondary market

     4,415         

Write-offs

     45,740         

Others

     295,258         

Collection / Repayment

     118,629         

Upgrade

     176,628         
  

 

 

    

 

 

    

 

 

 

Total

     375,039         35,340         339,698   
  

 

 

    

 

 

    

 

 

 

Amount in process for disposition

     81,844         

 

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, 2012
     As of
March 31, 2013
     As of
March 31, 2014
(A)
     As of
March 31, 2015
(B)
     (B) - (A)  

Assets newly categorized during fiscal 2011

     27,155         17,759         2,252         2,157         (94

Assets newly categorized during fiscal 2012

        15,711         8,784         1,845         (6,938

Assets newly categorized during fiscal 2013

           6,315         3,069         (3,246

Assets newly categorized during fiscal 2014

              7,495      

(2) Progress in Disposition of Problem Assets

 

     (in millions of yen)  
     For the fiscal year ended March 31, 2015  
            Bankrupt or
De facto Bankrupt
     Doubtful  

Liquidation

     —           

Reconstructive treatment

     —           

Upgrade due to reconstructive treatment

     —           

Loan sold to secondary market

     358         

Write-offs

     183         

Others

     12,256         

Collection / Repayment

     6,611         

Upgrade

     5,645         
  

 

 

    

 

 

    

 

 

 

Total

     12,798         907         11,891   
  

 

 

    

 

 

    

 

 

 

Amount in process for disposition

     1,992         

 

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, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Domestic offices (excluding loans booked at offshore markets)

     69,435,019        496,674        68,938,344   

Manufacturing

     10,156,808        564,697        9,592,111   

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

     164,103        7,517        156,586   

Construction

     835,063        (1,662     836,725   

Utilities

     1,699,548        2,024        1,697,524   

Communication and information services

     1,281,929        23,275        1,258,654   

Transport and postal activities

     2,170,341        (68,319     2,238,660   

Wholesale and retail

     6,630,773        (61,647     6,692,420   

Finance and insurance

     8,100,925        46,847        8,054,078   

Real estate

     8,526,443        (377,415     8,903,858   

Goods rental and leasing

     1,799,424        252,977        1,546,447   

Services

     2,656,321        (31,392     2,687,713   

Municipal government

     657,416        (135,815     793,231   

Other industries (including loans to the Japanese government)

     24,755,909        275,585        24,480,324   

Overseas offices and loans booked at offshore markets

     26,027,568        3,462,069        22,565,499   
  

 

 

   

 

 

   

 

 

 

Total

     95,462,588        3,958,744        91,503,844   
  

 

 

   

 

 

   

 

 

 

 

(2) Domestic Consumer Loans

 

      
     (in millions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Total domestic consumer loans

     16,648,906        (448,090     17,096,997   

Housing loans

     15,879,119        (468,583     16,347,702   

Residential purpose

     13,486,267        (62,184     13,548,451   

Other

     769,786        20,492        749,294   

 

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

 

      
     (in millions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Outstanding amount

     38,778,180        27,293        38,750,887   

% to total domestic loans

     55.84     (0.36 )%      56.21

 

25


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

(1) Loans Classified by Type of Industry

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Domestic offices (excluding loans booked at offshore markets)

     58,862,955        283,764        58,579,191   

Manufacturing

     8,055,533        566,086        7,489,447   

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

     159,724        7,973        151,751   

Construction

     727,686        (2,389     730,075   

Utilities

     1,276,512        5,587        1,270,925   

Communication and information services

     1,056,906        82,770        974,136   

Transport and postal activities

     1,538,458        (42,871     1,581,329   

Wholesale and retail

     5,663,432        1,486        5,661,946   

Finance and insurance

     5,997,672        (219,259     6,216,931   

Real estate

     6,717,045        (344,832     7,061,877   

Goods rental and leasing

     1,180,502        202,503        977,999   

Services

     2,481,575        (18,333     2,499,908   

Municipal government

     645,826        (132,939     778,765   

Other industries (including loans to the Japanese government)

     23,362,084        177,982        23,184,102   

Overseas offices and loans booked at offshore markets

     23,877,428        2,961,608        20,915,819   
  

 

 

   

 

 

   

 

 

 

Total

     82,740,384        3,245,373        79,495,010   
  

 

 

   

 

 

   

 

 

 

 

(2) Domestic Consumer Loans

 

  

     (in millions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Total domestic consumer loans

     15,318,592        (518,517     15,837,110   

Housing loans

     14,555,405        (540,226     15,095,632   

Residential purpose

     12,353,090        (161,146     12,514,237   

Other

     763,187        21,709        741,477   

 

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

 

  

     (in millions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Outstanding amount

     33,487,119        (304,103     33,791,222   

% to total domestic loans

     56.88     (0.79 )%      57.68

 

26


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Loans Classified by Type of Industry

 

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

(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Domestic offices (excluding loans booked at offshore markets)

     10,459,686        200,211        10,259,475   

Manufacturing

     2,101,275        (1,389     2,102,664   

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

     4,379        (456     4,835   

Construction

     107,377        727        106,650   

Utilities

     423,036        (3,563     426,599   

Communication and information services

     225,023        (59,495     284,518   

Transport and postal activities

     628,325        (25,911     654,236   

Wholesale and retail

     967,341        (63,133     1,030,474   

Finance and insurance

     2,103,253        266,106        1,837,147   

Real estate

     1,799,485        (30,518     1,830,003   

Goods rental and leasing

     618,922        50,474        568,448   

Services

     174,740        (13,055     187,795   

Municipal government

     6,185        (2,758     8,943   

Other industries (including loans to the Japanese government)

     1,300,334        83,181        1,217,153   

Overseas offices and loans booked at offshore markets

     2,150,140        500,460        1,649,679   
  

 

 

   

 

 

   

 

 

 

Total

     12,609,827        700,671        11,909,155   
  

 

 

   

 

 

   

 

 

 

(2) Domestic Consumer Loans

 

      
     (in millions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Total domestic consumer loans

     1,318,897        72,595        1,246,302   

Housing loans

     1,312,423        73,762        1,238,661   

Residential purpose

     1,122,847        100,696        1,022,150   

Other

     6,474        (1,167     7,641   

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

 

      
     (in millions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Outstanding amount

     5,187,649        319,043        4,868,606   

% to total domestic loans

     49.59     2.14     47.45

 

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, 2015
(A)
    Increase
(Decrease)

(A) - (B)
    As of
March 31, 2014
(B)
 

Domestic offices (excluding loans booked at offshore markets)

     112,376        12,699        99,677   

Manufacturing

     —          —          —     

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

     —          —          —     

Construction

     —          —          —     

Utilities

     —          —          —     

Communication and information services

     —          —          —     

Transport and postal activities

     3,558        463        3,095   

Wholesale and retail

     —          —          —     

Finance and insurance

     —          —          —     

Real estate

     9,913        (2,065     11,978   

Goods rental and leasing

     —          —          —     

Services

     6        (4     10   

Municipal government

     5,405        (118     5,523   

Other industries (including loans to the Japanese government)

     93,491        14,422        79,069   

Overseas offices and loans booked at offshore markets

     —          —          —     
  

 

 

   

 

 

   

 

 

 

Total

     112,376        12,699        99,677   
  

 

 

   

 

 

   

 

 

 

 

(2) Domestic Consumer Loans

 

      
     (in millions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Total domestic consumer loans

     11,415        (2,168     13,584   

Housing loans

     11,290        (2,118     13,409   

Residential purpose

     10,329        (1,734     12,064   

Other

     125        (49     175   

 

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

 

      
     (in millions of yen)  
     As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Outstanding amount

     103,412        12,353        91,059   

% to total domestic loans

     92.02     0.66     91.35

 

28


Mitsubishi UFJ Financial Group, Inc.

 

11. Overseas Loans

BTMU and MUTB Combined

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
     Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Asia

     7,541,312         442,095        7,099,216   

Thailand

     244,432         (709,450     953,883   

Indonesia

     929,135         165,549        763,586   

Malaysia

     474,067         91,974        382,093   

Philippines

     215,453         49,581        165,872   

South Korea

     528,505         57,562        470,942   

Singapore

     1,420,775         222,035        1,198,740   

Hong Kong

     2,108,563         339,861        1,768,701   

China

     182,688         28,671        154,017   

Taiwan

     351,926         80,232        271,693   

Others

     1,085,763         116,078        969,684   

Latin America

     3,876,193         962,686        2,913,506   

Argentina

     4,000         (6,712     10,712   

Brazil

     632,381         214,012        418,369   

Mexico

     413,427         218,574        194,853   

Caribbean countries

     2,331,856         424,472        1,907,384   

Others

     494,528         112,339        382,188   

North America

     7,230,466         1,820,557        5,409,909   

United States of America

     6,906,459         1,764,707        5,141,751   

Canada

     324,007         55,849        268,158   

Western Europe

     4,924,962         521,022        4,403,939   

United Kingdom

     1,990,590         440,214        1,550,376   

Germany

     457,174         36,615        420,559   

France

     332,359         (49,619     381,979   

Netherlands

     712,586         58,543        654,042   

Spain

     153,363         (119,055     272,419   

Italy

     207,639         (41,078     248,718   

Others

     1,071,247         195,403        875,844   

Eastern Europe

     349,311         (186,344     535,655   

Others

     3,875,726         405,540        3,470,186   
  

 

 

    

 

 

   

 

 

 

Total

     27,797,972         3,965,558        23,832,414   
  

 

 

    

 

 

   

 

 

 

 

Note: In addition to the (non-consolidated basis) loan balance stated above, four major overseas subsidiaries have the following loan balances in the consolidated financial statements.
     MUFG Americas Holdings Corporation: ¥9,150,190 million (a 2,043,355 million yen increase as compared with March 31, 2014.)
     Bank of Ayudhya Public Company Limited: ¥3,572,237 million (a 1,504,994 million yen increase as compared with March 31, 2014.)
     Bank of Tokyo-Mitsubishi UFJ (China), Ltd.: ¥1,619,319 million (a 201,454 million yen increase as compared with March 31, 2014.)
     Bank of Tokyo-Mitsubishi UFJ (Holland) N.V.: ¥674,193 million (a 75,374 million yen decrease as compared with March 31, 2014.)

 

29


Mitsubishi UFJ Financial Group, Inc.

 

12. Loans and Deposits

BTMU and MUTB Combined

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
     Increase
(Decrease)
(A) - (B)
     As of
March 31, 2014
(B)
 

Deposits (ending balance)

     137,332,320         5,210,655         132,121,665   

Deposits (average balance)

     132,006,899         5,737,238         126,269,660   

Loans (ending balance)

     95,350,211         3,946,045         91,404,166   

Loans (average balance)

     94,794,286         5,804,646         88,989,640   

BTMU Non-consolidated

     (in millions of yen)  
     As of
March 31, 2015
(A)
     Increase
(Decrease)
(A) - (B)
     As of
March 31, 2014
(B)
 

Deposits (ending balance)

     124,590,909         4,954,387         119,636,522   

Deposits (average balance)

     119,381,226         5,488,451         113,892,775   

Loans (ending balance)

     82,740,384         3,245,373         79,495,010   

Loans (average balance)

     82,699,437         5,096,745         77,602,691   

MUTB Non-consolidated

     (in millions of yen)  
     As of
March 31, 2015
(A)
     Increase
(Decrease)
(A) - (B)
     As of
March 31, 2014
(B)
 

Deposits (ending balance)

     12,741,410         256,268         12,485,142   

Deposits (average balance)

     12,625,672         248,787         12,376,884   

Loans (ending balance)

     12,609,827         700,671         11,909,155   

Loans (average balance)

     12,094,849         707,900         11,386,949   

 

30


Mitsubishi UFJ Financial Group, Inc.

 

13. Domestic Deposits

BTMU and MUTB Combined

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
     Increase
(Decrease)
(A) - (B)
     As of
March 31, 2014
(B)
 

Individuals

     70,415,191         1,547,897         68,867,293   

Corporations and others

     47,449,145         1,724,573         45,724,572   

Domestic deposits

     117,864,337         3,272,471         114,591,866   

 

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

BTMU Non-consolidated

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
     Increase
(Decrease)
(A) - (B)
     As of
March 31, 2014
(B)
 

Individuals

     62,194,037         1,625,616         60,568,421   

Corporations and others

     44,264,741         1,581,927         42,682,813   

Domestic deposits

     106,458,778         3,207,543         103,251,234   

 

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

MUTB Non-consolidated

 

     (in millions of yen)  
     As of
March 31, 2015
(A)
     Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Individuals

     8,221,154         (77,718     8,298,872   

Corporations and others

     3,184,404         142,645        3,041,758   

Domestic deposits

     11,405,559         64,927        11,340,631   

 

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, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Deferred tax assets

     571.1        (16.5     587.6  

Allowance for credit losses

     281.1        (12.9     294.1  

Write-down on investment securities

     96.0        (33.1     129.2  

Unrealized losses on other securities

     13.3        (13.9     27.2  

Reserve for retirement benefits

     105.3        10.8        94.4  

Other

     205.8        (20.0     225.9  

Valuation allowance

     (130.5     52.7        (183.3 )

Deferred tax liabilities

     1,156.5        499.4        657.0  

Unrealized gains on other securities

     925.2        454.5        470.7  

Net deferred gains on hedges

     74.5        50.4        24.1  

Revaluation gains on securities upon merger

     69.6        (1.0     70.6  

Gains on securities contributed to employees’ retirement benefits trust

     52.6        (5.3     58.0  

Other

     34.3        0.8        33.4  

Net deferred tax assets

     (585.3     (515.9     (69.3 )

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

 

     (in billions of yen)  
     FY2009       FY2010         FY2011         FY2012         FY2013         FY2014    

Net business profits before provision for general allowance for credit losses

     863.1        1,006.5        1,022.8        1,001.5        855.9        931.4   

Total credit costs

     (337.8     (166.1     (125.3     (56.6     17.0        (70.7

Income before income taxes

     460.1        674.4        739.5        877.4        984.7        860.2   

Reconciliation to taxable income

     (3.7     (24.0     (305.1     (561.4     (336.2     (15.0

Taxable income

     456.3        650.3        434.3        316.0        648.5        845.2   

(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, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Deferred tax assets

     63.5        21.3        42.2  

Deferred losses on hedging instruments

     27.2        17.0        10.2  

Allowance for credit losses

     14.5        (0.0     14.5  

Gain on securities related to employees’ retirement benefits trust

     14.3        (0.1     14.5  

Write-down on investment securities

     10.4        (3.2     13.7  

Other

     34.7        (0.2     34.9  

Valuation allowance

     (37.7     8.0        (45.8 )

Deferred tax liabilities

     353.1        149.5        203.6  

Unrealized gains on other securities

     301.4        147.9        153.4  

Reserve for retirement benefits

     38.9        1.3        37.6  

Other

     12.7        0.2        12.5  

Net deferred tax assets

     (289.6 )     (128.2 )     (161.4 )

(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)  
       FY2009         FY2010         FY2011         FY2012         FY2013         FY2014    

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

     110.2        150.4        148.1        162.2        162.9        190.4   

Total credit costs

     (23.7     (8.0     (9.2     (8.6     18.0        (0.4

Income before income taxes

     52.0        101.9        113.5        173.5        184.4        201.4   

Reconciliation to taxable income

     23.3        (80.1     (30.2     (84.9     (94.3     (42.3

Taxable income

     75.3       21.7       83.3       88.6       90.1       159.0  

(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, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Projected benefit obligation (reserve type)

   (A)     2,319,665        348,717        1,970,947   

Projected benefit obligation (non-reserve type)

   (B)     49,120        10,811        38,308   

Fair value of plan assets

   (C)     (2,811,425     (392,984     (2,418,441

Net amount recorded on the Consolidated Balance Sheet

   (A) + (B) - (C)     (442,640     (33,454     (409,185

Net defined benefit liability

       62,121        10,469        51,651   

Net defined benefit asset

       (504,761     (43,924     (460,836

 

(2) Net periodic cost of retirement benefits

 

        
         (in millions of yen)  
         For the fiscal year
ended
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    For the fiscal year
ended
March 31, 2014
(B)
 

Net periodic cost of retirement benefits regarding defined benefit pension plans

       47,925        (10,150     58,076   

Service cost

       55,476        1,261        54,214   

Interest cost

       40,110        2,976        37,133   

Expected return on plan assets

       (85,879     (8,115     (77,764

Amortization of unrecognized prior service cost

       (8,827     (2,182     (6,644

Amortization of unrecognized net actuarial loss

       36,844        (6,359     43,203   

Other

       10,202        2,268        7,934   

(3) Assumptions used in calculation of projected benefit obligation

 

     As of March 31, 2015  

Discount rates

     Domestic consolidated subsidiaries         0.00% ~ 1.60%   
     Overseas consolidated subsidiaries         3.30% ~ 10.77%   

Expected return

     Domestic consolidated subsidiaries         0.59% ~ 4.20%   
     Overseas consolidated subsidiaries         3.60% ~ 10.77%   

 

34


Mitsubishi UFJ Financial Group, Inc.

 

BTMU Non-consolidated

(1) Benefit obligation

 

         (in millions of yen)  
         As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Projected benefit obligation

 

(A)

     1,486,447        194,338        1,292,108   

Discount rates

       0.6% ~ 1.0       1.1% ~ 1.5

Fair value of plan assets

 

(B)

     1,683,730        229,627        1,454,102   

Prepaid pension cost

 

(C)

     225,683        (48,128     273,812   

Reserve for retirement benefits

 

(D)

     6,953        (284     7,238   

Total amount unrecognized

 

(A) - (B) + (C) - (D)

     21,447        (83,132     104,580   

Unrecognized net actuarial loss

       35,653        (85,551     121,205   

Unrecognized prior service cost

       (14,205     2,418        (16,624
(2) Net periodic cost         
         (in millions of yen)  
         For the fiscal year
ended
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    For the fiscal year
ended
March 31, 2014
(B)
 

Net periodic cost of retirement benefits

       41,529        1,326        40,203   

Service cost

       29,731        160        29,571   

Interest cost

       18,134        203        17,931   

Expected return on plan assets

       (33,751     2,069        (35,821

Amortization of unrecognized prior service cost

       (4,220     11        (4,231

Amortization of unrecognized net actuarial loss

       21,282        (3,052     24,334   

Other

       10,354        1,934        8,419   

 

35


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Benefit obligation

 

          (in millions of yen)  
          As of
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    As of
March 31, 2014
(B)
 

Projected benefit obligation

   (A)      319,864        35,598        284,265   

Discount rates

        0.8% ~ 1.1       1.4

Fair value of plan assets

   (B)      592,631        72,585        520,045   

Prepaid pension cost

   (C)      239,117        14,535        224,581   

Reserve for retirement benefits

   (D)      —          —          —     

Total amount unrecognized

   (A) - (B) + (C) - (D)      (33,649     (22,451     (11,197

Unrecognized net actuarial loss

        (28,220     (26,360     (1,860

Unrecognized prior service cost

        (5,428     3,908        (9,337

(2) Net periodic cost

         
          (in millions of yen)  
          For the fiscal year
ended
March 31, 2015
(A)
    Increase
(Decrease)
(A) - (B)
    For the fiscal year
ended
March 31, 2014
(B)
 

Net periodic cost of retirement benefits

        (8,434     (6,497     (1,936

Service cost

        5,597        (431     6,029   

Interest cost

        4,053        (380     4,434   

Expected return on plan assets

        (21,683     (2,181     (19,501

Amortization of unrecognized prior service cost

        (3,908     (0     (3,908

Amortization of unrecognized net actuarial loss

        6,757        (3,594     10,352   

Other

        748        91        657   

 

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 2015 is outlined below. (Figures are on a managerial basis and rounded off to billion yen or to the second decimal point of trillion yen)

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

 

   

The balance as of the end of March 2015 was ¥3.39 trillion in total, an increase of ¥0.46 trillion from the balance as of the end of March 2014, mainly due to increases in CLOs and Other securitized products.

 

   

Net unrealized losses were ¥4 billion, improved by ¥25 billion compared to the end of March 2014.

 

   

P/L impact for the fiscal year ended March 31, 2015 was ¥1 billion.

 

         (¥bn)  
                                   of which securities being
held to maturity2
 
         Balance1      Change from
end of March 2014
    Net unrealized
gains (losses)
    Change from
end of March 2014
     Balance      Net unrealized
gains (losses)
 
1   RMBS      21         (3     4        1         0         0   
2  

Sub-prime RMBS

     0         0        0        0         0         0   
3   CMBS      405         23        3        16         216         (1
4   CLOs      2,878         406        (13     8         1,987         (6
5   Other securitized products (card, etc.)      86         34        2        1         20         0   
6   CDOs      0         0        0        0         0         0   
7  

Sub-prime ABS CDOs

     0         0        0        0         0         0   
8   SIV      0         0        0        0         0         0   
    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 
9   Total      3,390         460        (4     25         2,224         (7
    

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

1. Balance is the amount after impairment and before deducting net unrealized gains (losses). The above table does not include mortgage-backed securities arranged and guaranteed by U.S. government sponsored enterprises, etc., Japanese RMBS such as Japanese Housing Finance Agency securities, and products held by funds such as investment trusts. These are also applicable to the tables in this document.
2. Following the publication of “Tentative Solution on Reclassification of Debt Securities” (Practical Issue Task Force No.26, The Accounting Standards Board of Japan, December 5, 2008), some of our securitized products were reclassified into “securities being held to maturity” from “securities available for sale” at and after the end of January 2009. The balance and net unrealized gains (losses) of the securities being held to maturity in the above table are based on book value before reclassification.

[Distribution by rating]

 

   

AAA-rated products accounted for 87% of our investments in securitized products as of the end of March 2015, an increase of 7 percentage points compared with the end of March 2014, mainly due to an increase in highly rated CLOs.

 

   

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

 

         (¥bn)  
         AAA     AA     A     BBB     BB or
lower
    Unrated     Total  
10   RMBS      2        3        0        11        5        0        21   
11  

Sub-prime RMBS

     0        0        0        0        0        0        0   
12   CMBS      169        237        0        0        0        0        405   
13   CLOs      2,747        79        49        2        0        0        2,878   
14   Other securitized products (card, etc.)      28        24        1        0        0        34        86   
15   CDOs      0        0        0        0        0        0        0   
16  

Sub-prime ABS CDOs

     0        0        0        0        0        0        0   
17   SIV      0        0        0        0        0        0        0   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
18   Total      2,946        342        50        13        6        34        3,390   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
19   Percentage of total      87     10     1     0     0     1     100
20   Percentage of total (End of March 2014)      80     18     1     1     0     0     100

 

37


Mitsubishi UFJ Financial Group, Inc.

 

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

 

   

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

 

   

The following table shows the balances of LBO loans as of the end of March 2015.

 

          (¥bn)  
          Americas      Europe      Asia      Japan      Total      Change from
end of March 2014
 
21    LBO Loan3 (Balance on a commitment basis)      22         113         0         339         474         138   
22   

Balance on a booking basis

     9         92         0         305         406         130   

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

[Special Purpose Entities (SPEs)]

 

   

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

 

   

The balance of assets purchased by ABCP conduits (special purpose companies for issuing ABCP) as of the end of March 2015 was ¥4.80 trillion (including ¥2.33 trillion in overseas).

 

   

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

End

 

 

<Terminology>

 

RMBS

     :       Asset-backed securities collateralized by residential mortgages

CMBS

     :       Asset-backed securities collateralized by commercial mortgages

CLOs

     :       Collateralized loan obligations backed by whole commercial loans, revolving credit facilities, or letters of credit

CDOs

     :       Structured credit securities backed by a pool of securities, loans, or credit default swaps

ABS CDOs

     :       Collateralized debt obligations backed by asset backed securities

SIVs

     :       Investment companies established mainly for gaining profit margin by raising funds through subordinated notes and short-term CPs, etc. and investing in relatively long-term securitized products and bonds, etc.

LBO Loans

     :       Loans collateralized by assets and/or future cash flows of an acquired company

ABCP

     :       Commercial papers issued by a Special Purposed Company (SPC) collateralized by receivables

 

 

 

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, 2014
    As of
March 31, 2015
 

Assets:

    

Cash and due from banks

     20,351,570        33,122,906   

Call loans

     250,480        274,077   

Receivables under resale agreements

     408,020        29,243   

Receivables under securities borrowing transactions

     2,692,329        341,200   

Monetary claims bought

     3,167,447        3,727,386   

Trading assets

     4,820,098        5,764,317   

Money held in trust

     61,589        31,132   

Securities

     56,790,753        52,873,408   

Loans and bills discounted

     79,495,010        82,740,384   

Foreign exchanges

     1,969,809        2,013,104   

Other assets

     4,954,602        6,224,547   

Tangible fixed assets

     863,197        873,973   

Intangible fixed assets

     390,164        398,550   

Prepaid pension costs

     273,812        225,683   

Customers’ liabilities for acceptances and guarantees

     5,854,841        6,657,095   

Allowance for credit losses

     (651,662     (644,579
  

 

 

   

 

 

 

Total assets

     181,692,063        194,652,431   
  

 

 

   

 

 

 

 

39


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    As of
March 31, 2014
    As of
March 31, 2015
 

Liabilities:

    

Deposits

     119,636,522        124,590,909   

Negotiable certificates of deposit

     10,507,938        10,985,081   

Call money

     1,774,023        1,084,494   

Payables under repurchase agreements

     10,273,695        8,957,252   

Payables under securities lending transactions

     2,048,950        2,369,378   

Commercial papers

     940,728        1,265,562   

Trading liabilities

     3,323,941        4,344,146   

Borrowed money

     9,505,089        11,724,531   

Foreign exchanges

     1,070,165        1,694,556   

Bonds payable

     4,202,748        4,791,846   

Other liabilities

     2,867,300        4,902,001   

Reserve for bonuses

     17,704        28,161   

Reserve for bonuses to directors

     147        143   

Reserve for retirement benefits

     7,238        6,953   

Reserve for loyalty award credits

     1,121        1,217   

Reserve for contingent losses

     42,057        41,195   

Deferred tax liabilities

     69,390        585,351   

Deferred tax liabilities for land revaluation

     149,763        133,940   

Acceptances and guarantees

     5,854,841        6,657,095   
  

 

 

   

 

 

 

Total liabilities

     172,293,369        184,163,819   
  

 

 

   

 

 

 

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

     2,907,680        3,066,001   

Revenue reserve

     190,044        190,044   

Other retained earnings

     2,717,635        2,875,957   

Funds for retirement benefits

     2,432        2,432   

Other reserve

     718,196        718,196   

Earned surplus brought forward

     1,997,006        2,155,328   

Treasury stock

     (255,700     (645,700
  

 

 

   

 

 

 

Total shareholders’ equity

     8,242,213        8,010,535   
  

 

 

   

 

 

 

Net unrealized gains (losses) on other securities

     889,003        2,086,911   

Net deferred gains (losses) on hedging instruments

     42,858        155,143   

Land revaluation excess

     224,619        236,022   
  

 

 

   

 

 

 

Total valuation and translation adjustments

     1,156,480        2,478,076   
  

 

 

   

 

 

 

Total net assets

     9,398,694        10,488,611   
  

 

 

   

 

 

 

Total liabilities and net assets

     181,692,063        194,652,431   
  

 

 

   

 

 

 

 

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, 2014
    For the fiscal year
ended
March 31, 2015
 

Ordinary income

     2,921,537        2,856,450   

Interest income

     1,506,973        1,600,411   

Interest on loans and bills discounted

     977,439        986,729   

Interest and dividends on securities

     415,873        472,622   

Fees and commissions

     617,805        676,444   

Trading income

     109,734        127,622   

Other business income

     375,561        330,096   

Other ordinary income

     311,462        121,876   

Ordinary expenses

     1,919,428        1,953,818   

Interest expenses

     350,920        364,034   

Interest on deposits

     98,616        112,059   

Fees and commissions

     145,162        163,039   

Trading expenses

     1,321        —     

Other business expenses

     161,152        100,188   

General and administrative expenses

     1,123,952        1,202,730   

Other ordinary expenses

     136,918        123,825   
  

 

 

   

 

 

 

Ordinary profits

     1,002,109        902,632   
  

 

 

   

 

 

 

Extraordinary gains

     16,299        3,376   

Extraordinary losses

     33,618        45,745   
  

 

 

   

 

 

 

Income before income taxes

     984,789        860,263   
  

 

 

   

 

 

 

Income taxes - current

     250,648        299,349   

Refund of income taxes

     (2,563     (29,639

Income taxes - deferred

     86,446        18,775   
  

 

 

   

 

 

 

Total taxes

     334,531        288,485   
  

 

 

   

 

 

 

Net income

     650,257        571,778   
  

 

 

   

 

 

 

 

41


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(1) Non-consolidated Balance Sheets

 

(in millions of yen)    As of
March 31, 2014
    As of
March 31, 2015
 

Assets:

    

Cash and due from banks

     1,480,594        4,445,069   

Call loans

     326,754        129,117   

Monetary claims bought

     15,603        1,383   

Trading assets

     316,744        438,754   

Money held in trust

     13,799        13,256   

Securities

     14,974,915        17,186,742   

Loans and bills discounted

     11,909,155        12,609,827   

Foreign exchanges

     7,742        24,891   

Other assets

     632,798        654,237   

Tangible fixed assets

     152,478        148,449   

Intangible fixed assets

     52,025        53,216   

Prepaid pension costs

     224,581        239,117   

Customers’ liabilities for acceptances and guarantees

     223,905        365,822   

Allowance for credit losses

     (36,821     (38,549
  

 

 

   

 

 

 

Total assets

     30,294,278        36,271,336   
  

 

 

   

 

 

 

 

42


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    As of
March 31, 2014
    As of
March 31, 2015
 

Liabilities:

    

Deposits

     12,485,142        12,741,410   

Negotiable certificates of deposit

     4,904,701        4,837,879   

Call money

     720,541        1,354,566   

Payables under repurchase agreements

     4,756,689        5,849,069   

Payables under securities lending transactions

     1,344,692        2,558,657   

Commercial papers

     266,840        516,964   

Trading liabilities

     78,403        160,122   

Borrowed money

     1,235,202        1,851,860   

Foreign exchanges

     291        3,439   

Short-term bonds payable

     —          79,995   

Bonds payable

     430,292        687,935   

Due to trust accounts

     1,401,922        1,796,031   

Other liabilities

     446,504        961,027   

Reserve for bonuses

     4,415        4,319   

Reserve for bonuses to directors

     77        67   

Reserve for contingent losses

     12,641        7,146   

Deferred tax liabilities

     161,438        289,642   

Deferred tax liabilities for land revaluation

     5,262        4,728   

Acceptances and guarantees

     223,905        365,822   
  

 

 

   

 

 

 

Total liabilities

     28,478,966        34,070,687   
  

 

 

   

 

 

 

Net assets:

    

Capital stock

     324,279        324,279   

Capital surplus

     412,315        412,315   

Capital reserve

     250,619        250,619   

Other capital surplus

     161,695        161,695   

Retained earnings

     802,540        858,520   

Revenue reserve

     73,714        73,714   

Other retained earnings

     728,826        784,806   

Funds for retirement benefits

     710        710   

Other reserve

     138,495        138,495   

Earned surplus brought forward

     589,621        645,601   
  

 

 

   

 

 

 

Total shareholders’ equity

     1,539,134        1,595,114   
  

 

 

   

 

 

 

Net unrealized gains (losses) on other securities

     301,487        665,776   

Net deferred gains (losses) on hedging instruments

     (18,503     (57,003

Land revaluation excess

     (6,806     (3,237
  

 

 

   

 

 

 

Total valuation and translation adjustments

     276,177        605,534   
  

 

 

   

 

 

 

Total net assets

     1,815,312        2,200,649   
  

 

 

   

 

 

 

Total liabilities and net assets

     30,294,278        36,271,336   
  

 

 

   

 

 

 

 

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, 2014
     For the fiscal year
ended
March 31, 2015
 

Ordinary income

     538,198         531,226   

Trust fees

     79,991         86,728   

Interest income

     218,455         237,600   

Interest on loans and bills discounted

     94,032         91,429   

Interest and dividends on securities

     119,338         139,435   

Fees and commissions

     120,206         127,346   

Trading income

     11,984         25,373   

Other business income

     54,840         19,170   

Other ordinary income

     52,720         35,006   

Ordinary expenses

     343,120         321,147   

Interest expenses

     59,125         65,559   

Interest on deposits

     23,345         22,291   

Fees and commissions

     27,227         29,067   

Trading expenses

     500         —     

Other business expenses

     56,321         26,485   

General and administrative expenses

     187,340         188,518   

Other ordinary expenses

     12,605         11,516   
  

 

 

    

 

 

 

Ordinary profits

     195,077         210,078   
  

 

 

    

 

 

 

Extraordinary gains

     650         204   

Extraordinary losses

     11,280         8,874   
  

 

 

    

 

 

 

Income before income taxes

     184,448         201,408   
  

 

 

    

 

 

 

Income taxes - current

     33,477         62,411   

Income taxes - deferred

     14,644         (1,760
  

 

 

    

 

 

 

Total taxes

     48,122         60,651   
  

 

 

    

 

 

 

Net income

     136,326         140,757   
  

 

 

    

 

 

 

 

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, 2014
     As of
March 31, 2015
 

Assets:

     

Loans and bills discounted

     99,677         112,376   

Securities

     55,572,673         58,086,929   

Beneficiary rights to the trust

     43,107,562         49,353,240   

Securities held in custody accounts

     2,979,912         3,172,363   

Monetary claims

     11,307,556         10,619,079   

Tangible fixed assets

     9,804,352         10,805,072   

Intangible fixed assets

     206,970         192,554   

Other claims

     5,202,507         5,040,404   

Call loans

     1,988,311         2,307,474   

Due from banking account

     1,945,120         3,184,730   

Cash and due from banks

     2,402,507         3,449,102   
  

 

 

    

 

 

 

Total

     134,617,151         146,323,327   
  

 

 

    

 

 

 

Liabilities:

     

Money trusts

     21,176,266         23,452,525   

Pension trusts

     13,945,101         15,360,655   

Property formation benefit trusts

     9,871         8,340   

Investment trusts

     42,523,279         48,930,372   

Money entrusted other than money trusts

     2,770,558         3,218,827   

Securities trusts

     5,070,063         5,066,024   

Monetary claim trusts

     11,298,129         10,266,613   

Equipment trusts

     34,924         44,498   

Land and fixtures trusts

     83,043         82,369   

Composite trusts

     37,705,915         39,893,100   
  

 

 

    

 

 

 

Total

     134,617,151         146,323,327   
  

 

 

    

 

 

 

 

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, 2014
     As of
March 31, 2015
 

Assets:

     

Loans and bills discounted

     31,782         27,008   

Securities

     68,484         104,557   

Other

     1,226,192         1,624,592   
  

 

 

    

 

 

 

Total

     1,326,459         1,756,157   
  

 

 

    

 

 

 

Liabilities:

     

Principal

     1,324,411         1,738,140   

Allowance for bad debts

     95         81   

Other

     1,953         17,936   
  

 

 

    

 

 

 

Total

     1,326,459         1,756,157   
  

 

 

    

 

 

 

 

45


Mitsubishi UFJ Financial Group, Inc.

 

MUTB Non-consolidated

(4) Major Items

 

(in millions of yen)    As of
March 31, 2014
     As of
March 31, 2015
 

Total funds

     52,521,082         56,400,812   
  

 

 

    

 

 

 

Deposits

     12,485,142         12,741,410   

Negotiable certificates of deposit

     4,904,701         4,837,879   

Money trusts

     21,176,266         23,452,525   

Pension trusts

     13,945,101         15,360,655   

Property formation benefit trusts

     9,871         8,340   
  

 

 

    

 

 

 

Loans and bills discounted

     12,008,833         12,722,204   
  

 

 

    

 

 

 

Banking account

     11,909,155         12,609,827   

Trust account

     99,677         112,376   
  

 

 

    

 

 

 

Investment securities

     70,547,588         75,273,672   
  

 

 

    

 

 

 

 

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