Docoh
Loading...

MUFG Mitsubishi UFJ Financial

Filed: 13 Nov 20, 6:05am

 

 

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 November 2020

Commission File No. 000-54189

 

 

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

 

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

Tokyo 100-8330, Japan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or

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

Form 20-F          X                Form 40-F              

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

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

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

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

 

 

 


THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-242048) OF MITSUBISHI UFJ FINANCIAL GROUP, INC. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.


SIGNATURES

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

Date: November 13, 2020

 

Mitsubishi UFJ Financial Group, Inc.
By: 

/s/ Zenta Morokawa

Name: Zenta Morokawa
Title: Managing Director, Deputy Head of Corporate Administration Division


LOGO

Consolidated Summary Report

<under Japanese GAAP>

for the six months ended September 30, 2020

November 13, 2020

 

Company name:

  Mitsubishi UFJ Financial Group, Inc.

Stock exchange listings:

  Tokyo, Nagoya, New York

Code number:

  8306

URL

  https://www.mufg.jp/

Representative:

  Hironori Kamezawa, President & Group CEO

For inquiry:

  

Masahisa Takahashi, Managing Director, Head of Financial Accounting Office, Financial Planning Division

  TEL (03) 5218-8890

Quarterly securities report issuing date:

  November 30, 2020

Dividend payment date:

  December 7, 2020

Trading accounts:

  Established

Supplemental information for quarterly financial statements:

  Available

Quarterly investor meeting presentation:

  Scheduled (for investors and analysts)

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

1. Consolidated Financial Data for the Six Months ended September 30, 2020

(1) Results of Operations

 

   (% represents the change from the same period in the previous fiscal year) 
         Ordinary Income              Ordinary Profits              Profits Attributable to      
Owners of Parent
 
For the six months ended  million yen   %  million yen   %  million yen   % 

September 30, 2020

   3,139,256    (12.3  590,254    (25.4  400,826    (34.0

September 30, 2019

   3,581,216    6.1   791,072    (10.7  606,964    (6.7

 

 (*)

Comprehensive income

     

September 30, 2020: 777,388 million yen, (4.6) %    ;    September 30, 2019: 814,782 million yen, 63.7 %

 

   Basic earnings
per share
   Diluted earnings
per share
 
For the six months ended  yen   yen 

September 30, 2020

   31.21    31.11 

September 30, 2019

   46.96    46.86 

(2) Financial Conditions

 

   Total Assets  Total Net Assets  Equity-to-asset ratio (*) 
As of  million yen  million yen  % 

September 30, 2020

   348,428,258   17,322,460   4.7 

March 31, 2020

   336,571,379   16,855,738   4.8 

(Reference) Shareholders’ equity as of       September 30, 2020: 16,456,873 million yen;       March 31, 2020: 15,990,834 million yen

 

 (*)

“Equity-to-asset ratio” is computed under the formula shown below

     

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

2. Dividends on Common Stock

 

   Dividends per Share 
   1st quarter-end   2nd quarter-end   3rd quarter-end   Fiscal year-end     Total   
For the fiscal year  yen   yen   yen   yen   yen 

ended March 31, 2020

   —      12.50    —      12.50    25.00 

ending March 31, 2021

   —      12.50       

ending March 31, 2021 (Forecast)

       —      12.50    25.00 

 

 (*)

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

3. Earnings Target for the Fiscal Year ending March 31, 2021 (Consolidated)

MUFG has the target of 600.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2021.

(There is a change to our earnings target released on May 15, 2020.)

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.


ø Notes

 

(1)

Changes in significant subsidiaries during the period: No

 

(2)

Changes in accounting policies, changes in accounting estimates and restatements

 

 (A)

Changes in accounting policies due to revision of accounting standards: No

 

 (B)

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

 

 (C)

Changes in accounting estimates: No

 

 (D)

Restatements: No

 

(3)

Number of common stocks outstanding at the end of the period

 

(A)   Total stocks outstanding including treasury stocks:  September 30, 2020   13,581,995,120 shares
   March 31, 2020   13,581,995,120 shares 
(B)   

Treasury stocks:

  September 30, 2020   737,339,532 shares 
   March 31, 2020   741,363,277 shares 
(C)   

Average outstanding of total stocks:

  Six months ended September 30, 2020   12,842,231,893 shares 
   Six months ended September 30, 2019   12,923,836,635 shares 

* This “Consolidated Summary Report” (Quarterly “Tanshin”) is outside the scope of the external auditor’s interim audit procedure.

* 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.    Consolidated Financial Statements and Notes

   2 

(1) Consolidated Balance Sheets

   2 

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

   4 

(3) Consolidated Statements of Changes in Net Assets

   6 

(4) Notes on Going-Concern Assumption

   8 

(5) Changes in Accounting Policies

   8 

(6) Additional Information

   9 

Supplemental Information:

“Selected Financial Information under Japanese GAAP For the Six Months Ended September 30, 2020”

 

(*)

The following is the schedule of internet conference and explanation for investors and analysts. You can confirm those contents over the internet.

 

Internet Conference: November 13, 2020 (Friday)  
Explanation for investors and analysts: November 18, 2020 (Wednesday) 

 

1


Mitsubishi UFJ Financial Group, Inc.

 

1. Consolidated Financial Statements and Notes

 

(1)

Consolidated Balance Sheets

 

(in millions of yen)  As of
        March 31, 2020        
  As of
    September 30, 2020    
 

Assets:

   

Cash and due from banks

   78,335,634   93,517,405 

Call loans and bills bought

   727,598   549,019 

Receivables under resale agreements

   24,104,564   14,341,294 

Receivables under securities borrowing transactions

   3,464,533   3,203,108 

Monetary claims bought

   6,583,403   5,985,254 

Trading assets

   20,250,172   21,358,210 

Money held in trust

   1,046,323   1,088,807 

Securities

   65,555,127   75,005,468 

Loans and bills discounted

   109,114,612   108,477,009 

Foreign exchanges

   1,741,290   1,715,315 

Other assets

   13,900,403   12,157,305 

Tangible fixed assets

   1,319,789   1,308,784 

Intangible fixed assets

   1,498,407   1,446,397 

Net defined benefit assets

   712,206   746,240 

Deferred tax assets

   127,516   131,684 

Customers’ liabilities for acceptances and guarantees

   8,830,436   8,404,079 

Allowance for credit losses

   (740,641  (1,007,128
  

 

 

  

 

 

 

Total assets

   336,571,379   348,428,258 
  

 

 

  

 

 

 

Liabilities:

   

Deposits

   187,623,551   201,704,284 

Negotiable certificates of deposit

   7,787,524   8,068,010 

Call money and bills sold

   3,671,100   3,825,353 

Payables under repurchase agreements

   31,692,711   26,277,329 

Payables under securities lending transactions

   1,058,042   851,295 

Commercial papers

   2,162,329   1,884,069 

Trading liabilities

   14,067,826   14,088,658 

Borrowed money

   24,651,574   29,338,276 

Foreign exchanges

   2,223,010   1,896,002 

Short-term bonds payable

   962,295   738,299 

Bonds payable

   13,464,472   13,625,854 

Due to trust accounts

   9,798,688   9,716,185 

Other liabilities

   10,407,459   9,279,701 

Reserve for bonuses

   110,964   86,531 

Reserve for bonuses to directors

   1,446   912 

Reserve for stocks payment

   11,298   9,379 

Net defined benefit liabilities

   86,547   87,003 

Reserve for retirement benefits to directors

   1,058   792 

Reserve for loyalty award credits

   31,247   32,596 

Reserve for contingent losses

   206,029   197,957 

Reserves under special laws

   4,269   4,367 

Deferred tax liabilities

   754,111   884,744 

Deferred tax liabilities for land revaluation

   107,641   104,109 

Acceptances and guarantees

   8,830,436   8,404,079 
  

 

 

  

 

 

 

Total liabilities

   319,715,640   331,105,798 
  

 

 

  

 

 

 

 

2


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)  As of
        March 31, 2020        
  As of
    September 30, 2020    
 

Net assets:

   

Capital stock

   2,141,513   2,141,513 

Capital surplus

   980,102   977,294 

Retained earnings

   10,855,798   10,982,157 

Treasury stock

   (505,518  (502,946
  

 

 

  

 

 

 

Total shareholders’ equity

   13,471,894   13,598,019 
  

 

 

  

 

 

 

Net unrealized gains (losses) on available-for-sale securities

   2,066,363   2,522,928 

Net deferred gains (losses) on hedging instruments

   189,342   227,888 

Land revaluation excess

   158,633   151,840 

Foreign currency translation adjustments

   300,838   107,633 

Remeasurements of defined benefit plans

   (159,766  (148,681

Debt value adjustments of foreign subsidiaries and affiliates

   (36,470  (2,755
  

 

 

  

 

 

 

Total accumulated other comprehensive income

   2,518,940   2,858,854 
  

 

 

  

 

 

 

Subscription rights to shares

   59   —   

Non-controlling interests

   864,844   865,586 
  

 

 

  

 

 

 

Total net assets

   16,855,738   17,322,460 
  

 

 

  

 

 

 

Total liabilities and net assets

   336,571,379   348,428,258 
  

 

 

  

 

 

 

 

3


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 six months
ended
      September 30, 2019       
  For the six months
ended
      September 30, 2020       
 

Ordinary income

   3,581,216   3,139,256 

Interest income

   1,961,292   1,438,090 

Interest on loans and bills discounted

   1,209,195   961,639 

Interest and dividends on securities

   348,956   237,729 

Trust fees

   65,013   71,386 

Fees and commissions

   731,230   726,752 

Trading income

   119,394   195,183 

Other operating income

   367,680   432,637 

Other ordinary income

   336,604   275,205 

Ordinary expenses

   2,790,144   2,549,001 

Interest expenses

   1,027,255   471,680 

Interest on deposits

   362,252   163,963 

Fees and commissions

   111,577   107,688 

Other operating expenses

   136,716   191,782 

General and administrative expenses

   1,338,911   1,374,768 

Other ordinary expenses

   175,682     403,082   
  

 

 

  

 

 

 

Ordinary profits

   791,072   590,254 
  

 

 

  

 

 

 

Extraordinary gains

   37,372   20,897 

Gains on disposition of fixed assets

   4,928   13,553 

Gains on sales of shares of affiliates

   —     7,344 

Reversal of reserve for contingent liabilities from financial instruments transactions

   1   —   

Gains on sales of shares of subsidiaries

   30,336   —   

Gains on step acquisitions

   2,105   —   

Extraordinary losses

   46,537   38,533 

Losses on disposition of fixed assets

   5,284   4,365 

Losses on impairment of fixed assets

   16,609   17,489 

Provision for reserve for contingent liabilities from financial instruments transactions

   —     97 

Losses on change in equity

   21,311   16,580 

Losses on sales of shares of affiliates

   3,332   —   
  

 

 

  

 

 

 

Profits before income taxes

   781,906   572,619 
  

 

 

  

 

 

 

Income taxes-current

   106,322   171,042 

Income taxes-deferred

   19,224   (38,663
  

 

 

  

 

 

 

Total taxes

   125,546   132,378 
  

 

 

  

 

 

 

Profits

   656,359   440,240 
  

 

 

  

 

 

 

Profits attributable to non-controlling interests

   49,395   39,413 
  

 

 

  

 

 

 

Profits attributable to owners of parent

   606,964   400,826 
  

 

 

  

 

 

 

 

4


Mitsubishi UFJ Financial Group, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in millions of yen)  For the six months
ended
      September 30, 2019       
  For the six months
ended
      September 30, 2020       
 

Profits

      656,359        440,240   

Other comprehensive income

   

Net unrealized gains (losses) on available-for-sale securities

   245,078   415,417 

Net deferred gains (losses) on hedging instruments

   66,646   40,733 

Land revaluation excess

   36   —   

Foreign currency translation adjustments

   (112,523  (167,272

Remeasurements of defined benefit plans

   (10,082  10,425 

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

   (30,732  37,843 
  

 

 

  

 

 

 

Total other comprehensive income

   158,422   337,147 
  

 

 

  

 

 

 

Comprehensive income

   814,782   777,388 
  

 

 

  

 

 

 

(Comprehensive income attributable to)

   

Comprehensive income attributable to owners of parent

   759,266   748,486 

Comprehensive income attributable to non-controlling interests

   55,516   28,901 

 

5


Mitsubishi UFJ Financial Group, Inc.

 

(3)

Consolidated Statements of Changes in Net Assets

For the six months ended September 30, 2019

 

      (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  available-

for-sale securities
  Net deferred gains
(losses) on hedging
instruments
 

Balance at the beginning of the period

  2,141,513     1,034,641     10,640,655   (516,649  13,300,160      2,249,231     122,516 

Cumulative effects of changes in accounting policies

    (17,550   (17,550   

Restated balance

  2,141,513   1,034,641   10,623,105   (516,649  13,282,610    2,249,231   122,516 

Changes during the period

       

Cash dividends

    (142,552   (142,552  

Profits attributable to owners of parent

    606,964    606,964   

Repurchase of treasury stock

     (10  (10  

Disposal of treasury stock

   (752   2,452   1,700   

Reversal of land revaluation excess

    2,743    2,743   

Changes in subsidiaries’ equity

   (428    (428  

Net changes of items other than shareholders’ equity

        286,055   64,348 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total changes during the period

  —     (1,180  467,156   2,442   468,417    286,055   64,348 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Balance at the end of the period

  2,141,513   1,033,460   11,090,261   (514,207  13,751,027    2,535,286   186,864 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
  Accumulated other comprehensive income          
  Land
revaluation
excess
  Foreign currency
translation
adjustments
  Remeasurements
of defined

benefit plans
  Debt value
adjustments of
foreign

subsidiaries and
affiliates
  Total
accumulated
other
comprehensive
income
  Subscription
rights to
shares
  Non-
controlling
interests
  Total net assets 

Balance at the beginning of the period

  167,681   339,713   (4,729  4,702   2,879,115   217   1,082,184   17,261,677 

Cumulative effects of changes in accounting policies

         (17,550

Restated balance

  167,681   339,713   (4,729  4,702   2,879,115   217   1,082,184   17,244,127 

Changes during the period

        

Cash dividends

         (142,552

Profits attributable to owners of parent

         606,964 

Repurchase of treasury stock

         (10

Disposal of treasury stock

         1,700 

Reversal of land revaluation excess

         2,743 

Changes in subsidiaries’ equity

         (428

Net changes of items other than shareholders’ equity

  (2,707  (166,645  (9,996  (21,556  149,497   (157  (2,949  146,390 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total changes during the period

  (2,707  (166,645  (9,996  (21,556  149,497   (157  (2,949  614,808 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Balance at the end of the period

  164,974   173,067   (14,726  (16,853  3,028,613   59   1,079,235   17,858,936 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

6


Mitsubishi UFJ Financial Group, Inc.

 

For the six months ended September 30, 2020

 

  (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 available-

for-sale securities
  Net deferred gains
(losses) on hedging
instruments
 

Balance at the beginning of the period

  2,141,513   980,102   10,855,798   (505,518  13,471,894   2,066,363   189,342 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Cumulative effects due to revision of accounting standards for foreign subsidiaries and affiliates

    (120,236   (120,236  

Restated balance

  2,141,513   980,102   10,735,561   (505,518  13,351,657   2,066,363   189,342 

Changes during the period

       

Cash dividends

    (160,918   (160,918  

Profits attributable to owners of parent

    400,826    400,826   

Repurchase of treasury stock

     (4  (4  

Disposal of treasury stock

   (0   2,577   2,577   

Reversal of land revaluation excess

    6,792    6,792   

Changes of application of equity method

    (104   (104  

Changes in subsidiaries’ equity

   (2,807    (2,807  

Net changes of items other than shareholders’ equity

       456,565   38,546 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total changes during the period

  —     (2,807  246,596   2,572   246,361   456,565   38,546 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Balance at the end of the period

  2,141,513   977,294   10,982,157   (502,946  13,598,019   2,522,928   227,888 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 
  Accumulated other comprehensive income          
  Land
revaluation
excess
  Foreign currency
translation
adjustments
  Remeasurements
of defined
benefit plans
  Debt value
adjustments of
foreign

subsidiaries and
affiliates
  Total
accumulated
other
comprehensive
income
  Subscription
rights to
shares
  Non-
controlling

interests
  Total net assets 

Balance at the beginning of the period

  158,633   300,838   (159,766  (36,470  2,518,940   59   864,844   16,855,738 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Cumulative effects due to revision of accounting standards for foreign subsidiaries and affiliates

        (24,806  (145,043

Restated balance

  158,633   300,838   (159,766  (36,470  2,518,940   59   840,037   16,710,695 

Changes during the period

        

Cash dividends

         (160,918

Profits attributable to owners of parent

         400,826 

Repurchase of treasury stock

         (4

Disposal of treasury stock

         2,577 

Reversal of land revaluation excess

         6,792 

Changes of application of equity method

         (104

Changes in subsidiaries’ equity

         (2,807

Net changes of items other than shareholders’ equity

  (6,792  (193,205  11,084   33,714   339,913   (59  25,548   365,403 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Total changes during the period

  (6,792  (193,205  11,084   33,714   339,913   (59  25,548   611,764 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

Balance at the end of the period

  151,840   107,633   (148,681  (2,755  2,858,854   —     865,586         17,322,460 
 

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

  

 

 

 

 

7


Mitsubishi UFJ Financial Group, Inc.

 

(4)

Notes on Going-Concern Assumption

None.

 

(5)

Changes in Accounting Policies

(Additional Information)

(Adoption of Accounting Standard for Fair Value Measurement)

Accounting Standard Board of Japan (“ASBJ”) Statement No. 30, “Accounting Standard for Fair Value Measurement”(ASBJ, July 4, 2019; hereinafter referred to as “Accounting Standard for Fair Value Measurement”) and ASBJ Guidance No. 31, “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ, July 4, 2019), have been applied since the end of the previous fiscal year. In accordance with Paragraph 8 of the Accounting Standard for Fair Value Measurement, the risk adjustment method applied to determine the fair value of derivatives was modified to use as much as possible observable inputs estimated by reference to derivatives and other instruments traded in the market. This modification was made due to the application of the Accounting Standard for Fair Value Measurement. In accordance with the transitional measures set forth in Paragraph 20 of the Accounting Standard for Fair Value Measurement, the cumulative effect of retroactively applying the new accounting policy prior to the beginning of the previous fiscal year was recognized as adjustments to retained earnings at the beginning of the previous fiscal year, and the new accounting policy was applied as of the beginning of the previous fiscal year as a change in MUFG’s accounting policies.

Accordingly, the consolidated financial statements as of and for the six months ended September 30, 2019 reflect the retroactive application of the new accounting policy.

The retroactive application of the new accounting policy resulted in a decrease of ¥4,198 million in each of ordinary profits and profits before income taxes and a decrease of ¥0.23 in each of basic earnings per share and diluted earnings per share for the six months ended September 30, 2019. In addition, due to the cumulative effect of the retroactive application of the new accounting policy on net assets as of the beginning of the previous fiscal year, the balance of retained earnings as of the beginning of the previous fiscal year decreased by ¥20,533 million, and net assets per share as of the beginning of the previous fiscal year decreased by ¥1.58.

(Adoption of U.S. Accounting Standards Update (“ASU”) 2016-13, “Measurement of Credit Losses on Financial Instruments”)

Certain overseas subsidiaries which apply Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) adopted ASU2016-13, “Measurement of Credit Losses on Financial Instruments” from the beginning of the six months ended September 30, 2020. This update replaces the incurred loss impairment methodology in previous U.S. GAAP with a methodology that reflects expected credit losses, and full lifetime expected credit losses will be recognized upon initial recognition of a financial asset measured on an amortized cost basis by taking into account certain forecasted information such as macroeconomic indicators. In adopting the accounting standard, retained earnings were adjusted for the cumulative effect at the beginning of the six months ended September 30, 2020.

As a result, at the beginning of the six months ended September 30, 2020, allowance for credit losses increased by ¥172,363 million, retained earnings decreased by ¥118,374 million, and net assets per share decreased by ¥9.21.

 

8


Mitsubishi UFJ Financial Group, Inc.

 

(6)

Additional Information

(Estimated impact of the COVID-19 pandemic relating to provision for credit losses)

MUFG Bank, Ltd. (“the Bank”), a major consolidated subsidiary of MUFG recorded a provision for credit losses of ¥35,461 million for the six months ended September 30, 2020 (¥45,347 million for the fiscal year ended March 31, 2020) by estimating the impact of the COVID-19 pandemic on credit risk, to the extent that such impact was considered not to have been reflected in the borrowers’ financial information as of September 30, 2020, considering the expected impact of the pandemic on the borrowers’ financial performance and on the overall economic environment.

The process for preparing the recorded provision amount involved, among other things, determining the scope of borrowers (in terms of industry, geographical region, etc.) that were expected to be significantly affected, making certain assumptions relating to economic factors based on certain scenarios, and collectively estimating the degree to which the internal credit ratings assigned to borrowers in particular industries or geographic regions would be downgraded.

Since there was no precedent or established market view regarding the extent of the pandemic or the timing of containment of the pandemic available for reference in considering the expected impact of the pandemic on economic conditions, the Bank made certain assumptions and estimated the amount, as best as it could under the circumstances, based on, among other things, such assumptions and information available from external sources and through an approval process in accordance with prescribed internal rules.

As of March 31, 2020 and June 30, 2020, one of our assumptions was that economic conditions would recover to the calendar 2019 level by around the end of calendar 2020 globally. As of September 30, 2020, we updated this assumption and assumed that such economic recovery would still take some time. As a result, although the global economy has begun to recover, our assumptions included, among other things, that the pace of recovery in economic activity would be slow and that economic recovery to pre-pandemic levels, particularly in developed countries, would thus be gradual. These assumptions, however, are highly uncertain, and, depending on future developments, significant additional provision for credit losses may be recognized for the nine-month period ending December 31, 2020 and subsequent reporting periods due to such developments affecting the impact of the COVID-19 pandemic on the financial performance of borrowers and other transaction counterparties or on the economic environment.

(Major overseas subsidiaries’ total credit costs which are expected to be reflected in MUFG’s consolidated financial statements as of and for the third quarter of the fiscal year ending March 31, 2021)

Major overseas subsidiaries which were consolidated based on their financial statements as of and for the quarter ended June 30, 2020 adopted ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” the new guidance that introduced the concept of current expected credit loss, as of the beginning of the first quarter of the fiscal year ending December 31, 2020. As a result, these subsidiaries record provision for allowance for credit losses by taking into account certain forecasted information such as macroeconomic indicators.

Under the new guidance, it is currently estimated that the subsidiaries’ total credit costs for the quarter ended September 30, 2020 will be approximately ¥40 billion in total. The subsidiaries’ total credit costs will be reflected in MUFG’s consolidated financial statements as of and for the quarter ending December 31, 2020.

The definition of total credit costs is described in “1. Financial Results” of “Selected Financial Information under Japanese GAAP For the Six Months Ended September 30, 2020”.

 

9


 

 

Selected Financial Information

under Japanese GAAP

For the Six Months Ended September 30, 2020

 

 

 

 

 

 

 

 

 

 

Mitsubishi UFJ Financial Group, Inc.

   LOGO          


Mitsubishi UFJ Financial Group, Inc.

[Contents]

 

1. Financial Results

  

[ MUFG Consolidated ]*1

[ BK and TB Combined ]*2*3*4

    ——     1 
  [ BK Consolidated ][ BK Non-consolidated ]    
  [ TB Consolidated ][ TB Non-consolidated ]    

2. Average Interest Rate Spread

  

[ BK Non-consolidated ] [ TB Non-consolidated ]

[ BK and TB Combined ]

    ——     7 

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

  

[ MUFG Consolidated ][ BK Consolidated ]

[ TB Consolidated ]

    ——     8 

4. Securities

  

[ MUFG Consolidated ] [ BK Non-consolidated ]

[ TB Non-consolidated ]

    ——     9 

5. ROE

  [ MUFG Consolidated ]    ——     12 

6. Risk-Adjusted Capital Ratio

  

[ MUFG Consolidated ][ BK Consolidated ]

[ TB Consolidated ]

[ BK Non-consolidated ][ TB Non-consolidated ]

    ——     13 

7. Risk-Monitored Loans

  

[ MUFG Consolidated ] [ BK Non-consolidated ]

[ TB Non-consolidated ]

[ TB Non-consolidated : Trust Account ]

    ——     14 

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

  

[ BK and TB Combined including Trust Account ]

[ BK Non-consolidated ][ TB Non-consolidated ]

[ TB Non-consolidated : Trust Account ]

    ——     18 

9. Progress in Disposition of Problem Assets

  

[ BK Non-consolidated ]

[ TB 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

  

[ BK and TB Combined including Trust Accounts ]

[ BK Non-consolidated ][ TB Non-consolidated ]

[ TB Non-consolidated : Trust Accounts ]

    ——     25 

11. Overseas Loans

  [ BK Consolidated excl. MUAH, KS, BDI ]*5*6*7    ——     29 

12. Loans and Deposits

  

[ BK and TB Combined ]

[ BK Non-consolidated ][ TB Non-consolidated ]

    ——     30 

13. Domestic Deposits

  

[ BK and TB Combined ]

[ BK Non-consolidated ][ TB Non-consolidated ]

    ——     31 

14. Status of Deferred Tax Assets

  [ BK Non-consolidated ][ TB Non-consolidated ]    ——     32 

(Reference)

      

1. Impact of the COVID-19 pandemic on MUFG business

      ——     34 

2. Financial Statements

  [ BK Non-consolidated ][ TB Non-consolidated ]    ——     35 

 

(*1)

“MUFG” means Mitsubishi UFJ Financial Group, Inc.

(*2)

“BK” means MUFG Bank, Ltd.

(*3)

“TB” means Mitsubishi UFJ Trust and Banking Corporation.

(*4)

“BK and TB Combined” means simple sum of “BK” and “TB” without consolidation processes.

(*5)

“MUAH” means MUFG Americas Holdings Corporation.

(*6)

“KS” means Bank of Ayudhya Public Company Limited.

(*7)

“BDI” means PT Bank Danamon Indonesia, Tbk.

Note:

Accounting Standard Board of Japan (“ASBJ”) Statement No. 30, “Accounting Standard for Fair Value Measurement” and ASBJ Guidance No. 31, “Implementation Guidance on Accounting Standard for Fair Value Measurement” have been applied since the end of the previous fiscal year.

Accordingly, the financial information of “MUFG”, “BK and TB Combined” and “BK (Consolidated and Non-consolidated) ”, for the six months ended September 30, 2019 reflect the retroactive application of the new accounting standard, etc.


Mitsubishi UFJ Financial Group, Inc.

 

1. Financial Results

MUFG Consolidated

 

                                                                                          
  (in millions of yen) 
  For the six months ended  Increase 
 September 30, 2020
(A)
  September 30, 2019
(B)
  (Decrease)
(A) - (B)
 

Gross profits

           2,093,005            1,969,139   123,866 

Gross profits before credit costs for trust accounts

  2,093,005   1,969,138          123,866 

Net interest income

  966,516   934,114   32,401 

Trust fees

  71,386   65,013   6,372 

Credit costs for trust accounts (1)

  (0  0   (0

Net fees and commissions

  619,063   619,652   (588

Net trading profits

  195,183   119,394   75,788 

Net other operating profits

  240,854   230,963   9,891 

Net gains (losses) on debt securities

  201,910   179,502   22,408 

General and administrative expenses

  1,352,549   1,342,022   10,527 

Amortization of goodwill

  8,209   11,596   (3,387

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

  748,664   638,712   109,952 

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

  740,455   627,115   113,339 

Provision for general allowance for credit losses (2)

  (78,662  (24,067  (54,594

Net operating profits*

  661,792   603,048   58,743 

Net non-recurring gains (losses)

  (71,538  188,023   (259,561

Credit costs (3)

  (210,658  (43,362  (167,295

Losses on loan write-offs

  (87,852  (68,027  (19,824

Provision for specific allowance for credit losses

  (122,640  23,277   (145,917

Other credit costs

  (166  1,387   (1,553

Reversal of allowance for credit losses (4)

  —     —     —   

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

  —     5,232   (5,232

Gains on loans written-off (6)

  30,894   44,103   (13,208

Net gains (losses) on equity securities

  24,281   17,722   6,559 

Gains on sales of equity securities

  67,191   78,519   (11,327

Losses on sales of equity securities

  (27,395  (29,844  2,448 

Losses on write-down of equity securities

  (15,514  (30,952  15,438 

Equity in earnings of equity method investees

  153,190   149,612   3,577 

Other non-recurring gains (losses)

  (69,246  14,715   (83,961
 

 

 

  

 

 

  

 

 

 

Ordinary profits

  590,254   791,072   (200,817
 

 

 

  

 

 

  

 

 

 

Net extraordinary gains (losses)

  (17,635  (9,165  (8,470

Net gains (losses) on disposition of fixed assets

  9,188   (356  9,544 

Losses on impairment of fixed assets

  (17,489  (16,609  (880

Losses on change in equity

  (16,580  (21,311  4,730 

Gains on sales of shares of affiliates

  7,344   —     7,344 

Gains on sales of shares of subsidiaries

  —     30,336   (30,336

Profits before income taxes

  572,619   781,906   (209,287

Income taxes-current

  171,042   106,322   64,719 

Income taxes-deferred

  (38,663  19,224   (57,887

Total taxes

  132,378   125,546   6,831 

Profits

  440,240   656,359   (216,119

Profits attributable to non-controlling interests

  39,413   49,395   (9,981
 

 

 

  

 

 

  

 

 

 

Profits attributable to owners of parent

  400,826   606,964   (206,137
 

 

 

  

 

 

  

 

 

 

 

Note:

   

*  Net operating profits = Banking subsidiaries’ net operating 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)

  (258,426  (18,093  (240,332

Number of consolidated subsidiaries

  254   248   6 

Number of affiliated companies accounted for under the equity method

  50   54   (4

 

1


Mitsubishi UFJ Financial Group, Inc.

 

BK and TB Combined

 

                                                                                          
  (in millions of yen) 
  For the six months ended  Increase 
 September 30, 2020
(A)
  September 30, 2019
(B)
  (Decrease)
(A) - (B)
 

Gross profits

           1,049,580            1,011,628   37,951 

Gross profits before credit costs for trust accounts

  1,049,580   1,011,628   37,951 

Domestic gross profits

  449,349   582,576   (133,226

Net interest income

  276,853   330,316   (53,463

Trust fees

  57,740   51,740   5,999 

Credit costs for trust accounts (1)

  (0  0   (0

Net fees and commissions

  143,343   156,335   (12,991

Net trading profits

  2,929   7,382   (4,453

Net other operating profits

  (31,517  36,800   (68,318

Net gains (losses) on debt securities

  (27,999  30,649   (58,649

Non-domestic gross profits

  600,230   429,052          171,177 

Net interest income

  214,369   160,326   54,042 

Net fees and commissions

  71,654   83,237   (11,582

Net trading profits

  59,866   20,420   39,446 

Net other operating profits

  254,340   165,068   89,271 

Net gains (losses) on debt securities

  214,265   146,281   67,983 

General and administrative expenses

  664,640   661,550   3,090 

Personnel expenses

  219,372   223,265   (3,892

Non-personnel expenses

  404,760   402,460   2,300 

Taxes

  40,507   35,824   4,683 

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

  384,939   350,078   34,861 

Provision for general allowance for credit losses (2)

  13,548   —     13,548 

Net operating profits

  398,488   350,078   48,409 

Net non-recurring gains (losses)

  (79,207  132,068   (211,275

Credit costs (3)

  (68,301  (4,447  (63,854

Losses on loan write-offs

  (10,885  (6,029  (4,855

Provision for specific allowance for credit losses

  (57,703  —     (57,703

Other credit costs

  287   1,582   (1,295

Reversal of allowance for credit losses (4)

  38   64,322   (64,284

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

  2,625   1,938   687 

Gains on loans written-off (6)

  3,290   15,413   (12,123

Net gains (losses) on equity securities

  19,166   20,101   (935

Gains on sales of equity securities

  61,700   83,033   (21,333

Losses on sales of equity securities

  (27,580  (30,721  3,140 

Losses on write-down of equity securities

  (14,953  (32,210  17,257 

Other non-recurring gains (losses)

  (36,026  34,739   (70,765
 

 

 

  

 

 

  

 

 

 

Ordinary profits

  319,281   482,147   (162,866
 

 

 

  

 

 

  

 

 

 

Net extraordinary gains (losses)

  (2,582  (13,315  10,732 

Net gains (losses) on disposition of fixed assets

  9,058   9   9,049 

Losses on impairment of fixed assets

  (12,034  (13,410  1,376 

Gains on sales of shares of subsidiaries

  2,372   —     2,372 

Losses on sales of shares of affiliates

  (1,978  —     (1,978

Income before income taxes

  316,698   468,831   (152,133

Income taxes-current

  97,399   54,225   43,173 

Income taxes-deferred

  (15,705  66,860   (82,566

Total taxes

  81,694   121,086   (39,392
 

 

 

  

 

 

  

 

 

 

Net income

  235,004   347,744   (112,740
 

 

 

  

 

 

  

 

 

 

(Reference)

   

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

  (48,798  77,227   (126,026

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities

  198,674   173,146   25,527 

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities and investment trusts cancellation

  205,942   182,375   23,567 

 

2


Mitsubishi UFJ Financial Group, Inc.

 

BK Consolidated

 

                                                                                          
  (in millions of yen) 
  For the six months ended  Increase 
 September 30, 2020
(A)
  September 30, 2019
(B)
  (Decrease)
(A) - (B)
 

Gross profits

          1,477,478   1,391,260   86,218 

Net interest income

  811,596   795,836            15,760 

Trust fees

  6,289   6,248   40 

Net fees and commissions

  308,772   325,744   (16,971

Net trading profits

  99,202   29,791   69,410 

Net other operating profits

  251,617   233,639   17,977 

Net gains (losses) on debt securities

  205,602   168,505   37,097 

General and administrative expenses

  917,816   927,971   (10,155

Amortization of goodwill

  3,112   11,267   (8,154

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

  562,774   474,556   88,218 

Net operating profits before provision for general allowance for credit losses

  559,662   463,288   96,373 

Provision for general allowance for credit losses (1)

  (86,514  —     (86,514

Net operating profits*

  473,148   463,288   9,859 

Net non-recurring gains (losses)

  (156,447  75,244   (231,692

Credit costs (2)

  (158,401  (27,306  (131,094

Losses on loan write-offs

  (48,714  (28,638  (20,075

Provision for specific allowance for credit losses

  (109,521  —     (109,521

Other credit costs

  (165  1,332   (1,497

Reversal of allowance for credit losses (3)

  —     11,873   (11,873

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

  —     5,283   (5,283

Gains on loans written-off (5)

  20,033   33,171   (13,138

Net gains (losses) on equity securities

  24,392   21,594   2,798 

Gains on sales of equity securities

  52,994   72,041   (19,047

Losses on sales of equity securities

  (20,149  (18,037  (2,112

Losses on write-down of equity securities

  (8,451  (32,410  23,958 

Equity in earnings of equity method investees

  9,646   9,650   (3

Other non-recurring gains (losses)

  (52,119  20,977   (73,097
 

 

 

  

 

 

  

 

 

 

Ordinary profits

  316,700   538,532   (221,832
 

 

 

  

 

 

  

 

 

 

Net extraordinary gains (losses)

  (7,299  18,128   (25,427

Net gains (losses) on disposition of fixed assets

  9,179   (1,422  10,601 

Losses on impairment of fixed assets

  (16,478  (12,891  (3,587

Gains on sales of shares of subsidiaries

  —     30,336   (30,336

Profits before income taxes

  309,400   556,660   (247,260

Income taxes-current

  145,457   91,158   54,299 

Income taxes-deferred

  (52,807  64,885   (117,692

Total taxes

  92,650   156,043   (63,393

Profits

  216,749   400,617   (183,867

Profits attributable to non-controlling interests

  7,308   26,318   (19,010
 

 

 

  

 

 

  

 

 

 

Profits attributable to owners of parent

  209,441   374,298   (164,857
 

 

 

  

 

 

  

 

 

 
Note:   

* Net operating profits = Net operating profits of BK + 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)

  (224,882)   23,022   (247,904

Number of consolidated subsidiaries

  123                      123   —   

Number of affiliated companies accounted for under the equity method

  41   43   (2

 

3


Mitsubishi UFJ Financial Group, Inc.

 

BK Non-consolidated

 

                                                                                          
  (in millions of yen) 
  For the six months ended  Increase 
 September 30, 2020
(A)
  September 30, 2019
(B)
  (Decrease)
(A) - (B)
 

Gross profits

              888,620               843,828   44,791 

Domestic gross profits

  334,796   449,466   (114,669

Net interest income

  258,016   296,727   (38,711

Net fees and commissions

  104,838   114,224   (9,386

Net trading profits

  2,218   1,540   678 

Net other operating profits

  (30,276  36,972   (67,249

Net gains (losses) on debt securities

  (27,072  24,890   (51,963

Non-domestic gross profits

  553,823   394,362   159,460 

Net interest income

  166,329   134,726   31,602 

Net fees and commissions

  70,242   81,896   (11,654

Net trading profits

  58,504   19,173   39,330 

Net other operating profits

  258,747   158,565   100,181 

Net gains (losses) on debt securities

  219,755   140,769   78,985 

General and administrative expenses

  567,008   567,282   (273

Personnel expenses

  186,818   193,112   (6,293

Non-personnel expenses

  343,989   343,535   454 

Amortization of goodwill

  763   174   589 

Taxes

  36,200   30,634              5,565 

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

  322,375   276,720   45,654 

Net operating profits before provision for general allowance for credit losses

  321,611   276,546   45,065 

Provision for general allowance for credit losses (1)

  13,548   —     13,548 

Net operating profits

  335,160   276,546   58,614 

Net non-recurring gains (losses)

  (71,347  133,022   (204,369

Credit costs (2)

  (68,295  (4,436  (63,859

Reversal of allowance for credit losses (3)

  —     63,645   (63,645

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

  2,479   1,898   580 

Gains on loans written-off (5)

  3,290   15,413   (12,122

Net gains (losses) on equity securities

  21,000   19,796   1,204 

Gains on sales of equity securities

  49,407   69,412   (20,004

Losses on sales of equity securities

  (19,983  (17,947  (2,035

Losses on write-down of equity securities

  (8,423  (31,668  23,244 

Other non-recurring gains (losses)

  (29,822  36,704   (66,527
 

 

 

  

 

 

  

 

 

 

Ordinary profits

  263,812   409,568   (145,755
 

 

 

  

 

 

  

 

 

 

Net extraordinary gains (losses)

  334   (13,768  14,103 

Net gains (losses) on disposition of fixed assets

  9,264   (1,360  10,624 

Losses on impairment of fixed assets

  (11,300  (12,408  1,107 

Gains on sales of shares of subsidiaries

  2,372   —     2,372 

Income before income taxes

  264,147   395,799   (131,651

Income taxes-current

  88,424   48,902   39,521 

Income taxes-deferred

  (18,005  58,351   (76,357

Total taxes

  70,418   107,254   (36,835
 

 

 

  

 

 

  

 

 

 

Net income

  193,728   288,545   (94,816
 

 

 

  

 

 

  

 

 

 

(Reference)

   

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

  (48,977  76,520   (125,498

Provision for general allowance for credit losses

  13,548   (1,768  15,316 

Provision for special allowance for credit losses

  (57,703  65,358   (123,062

Allowance for credit to specific foreign borrowers

  29   54   (24

Losses on loans write-off

  (10,879  (6,018  (4,860

Provision for contingent losses included in credit costs

  2,479   1,898   580 

Gains on loans written-off

  3,290   15,413   (12,122

Losses on sales of other loans, etc.

  257   1,582   (1,324

Net operating profits before provision for general allowance for credit losses, excluding net gains (losses) on debt securities

  128,929   110,886   18,042 

Net operating profits before provision for general allowance for credit losses, excluding net gains (losses) on debt securities and investment trusts cancellation

  130,664   113,919   16,744 

 

4


Mitsubishi UFJ Financial Group, Inc.

 

TB Consolidated

 

                                                                                          
  (in millions of yen) 
  For the six months ended�� Increase 
 September 30, 2020
(A)
  September 30, 2019
(B)
  (Decrease)
(A) - (B)
 

Gross profits

              242,050               212,723   29,327 

Gross profits before credit costs for trust accounts

  242,050   212,722   29,328 

Trust fees

  65,310   58,907   6,402 

Trust fees before credit costs for trust accounts

  65,310   58,906   6,403 

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

  13,190   8,285   4,904 

Other trust fees

  52,119   50,621   1,498 

Credit costs for trust accounts (1)

  (0  0   (0

Net interest income

  54,448   43,862            10,586 

Net fees and commissions

  116,011   88,317   27,693 

Net trading profits

  5,711   9,443   (3,731

Net other operating profits

  569   12,192   (11,622

Net gains (losses) on debt securities

  (6,416  10,896   (17,313

General and administrative expenses

  178,142   141,116   37,026 

Amortization of goodwill

  5,094   528   4,565 

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

  69,003   72,135   (3,132

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

  63,908   71,606   (7,697

Provision for general allowance for credit losses (2)

  —     —     —   

Net operating profits*

  63,908   71,606   (7,698

Net non-recurring gains (losses)

  (5,801  94   (5,896

Credit costs (3)

  (20  (61  40 

Losses on loan write-offs

  (20  (19  (0

Provision for specific allowance for credit losses

  —     —     —   

Other credit costs

  —     (41  41 

Reversal of allowance for credit losses (4)

  102   634   (532

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

  1   —     1 

Gains on loans written-off (6)

  6   34   (27

Net gains (losses) on equity securities

  (1,820  323   (2,143

Gains on sales of equity securities

  12,293   13,621   (1,328

Losses on sales of equity securities

  (7,597  (12,773  5,175 

Losses on write-down of equity securities

  (6,515  (525  (5,990

Profits (losses) from investments in affiliates

  2,480   790   1,690 

Other non-recurring gains (losses)

  (6,550  (1,626  (4,924
 

 

 

  

 

 

  

 

 

 

Ordinary profits

  58,106   71,701   (13,594
 

 

 

  

 

 

  

 

 

 

Net extraordinary gains (losses)

  6,887   675   6,212 

Net gains (losses) on disposition of fixed assets

  276   1,686   (1,410

Losses on impairment of fixed assets

  (733  (1,011  278 

Gains on sales of shares of affiliates

  7,344   —     7,344 

Profits before income taxes

  64,994   72,376   (7,382

Income taxes-current

  15,165   9,943   5,222 

Income taxes-deferred

  238   8,456   (8,218

Total taxes

  15,404   18,400   (2,995

Profits

  49,590   53,976   (4,386

Profits attributable to non-controlling interests

  190   315   (125
 

 

 

  

 

 

  

 

 

 

Profits attributable to owners of parent

  49,399   53,660   (4,261
 

 

 

  

 

 

  

 

 

 

 

Note:

   

* Net operating profits = Net operating profits of TB + 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)

  89                       608                 (519

Number of consolidated subsidiaries

                      100   88   12 

Number of affiliated companies accounted for under the equity method

  5   7   (2

TB Consolidated(combined operating results of TB and transferred entities to Intermediate Holding Company in the United States)

To comply with the financial regulations in the United States, TB transferred the interests in its subsidiaries in the United States to the Intermediate Holding Company(“IHC”) in United States which are owned by BK and MUFG.

The combined operating results of TB and transferred entities are as follows (the operating results of transferred entities are prepared for managerial accounting purpose):

 

                                                                                          

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

                  63,599                    71,971             (8,371

Profits attributable to owners of parent

  49,118   53,873   (4,755

Number of the entities transferred to IHC

  4   4   —   

 

5


Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated

 

                                                                                          
  (in millions of yen) 
  For the six months ended  Increase 
  September 30, 2020
(A)
  September 30, 2019
(B)
  (Decrease)
(A) - (B)
 

Gross profits

              160,960               167,800   (6,840

Gross profits before credit costs for trust accounts

  160,960   167,799   (6,839

Domestic gross profits

  114,553   133,110   (18,556

Trust fees

  57,740   51,740   5,999 

Trust fees before credit costs for trust accounts

  57,740   51,740   6,000 

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

  13,190   8,285   4,904 

Other trust fees

  44,550   43,454   1,095 

Credit costs for trust accounts (1)

  (0  0   (0

Net interest income

  18,837   33,589   (14,751

Net fees and commissions

  38,505   42,110   (3,605

Net trading profits

  710   5,841   (5,131

Net other operating profits

  (1,240  (171  (1,068

Net gains (losses) on debt securities

  (927  5,759   (6,686

Non-domestic gross profits

  46,406   34,689   11,716 

Net interest income

  48,040   25,599            22,440 

Net fees and commissions

  1,412   1,340   71 

Net trading profits

  1,362   1,246   115 

Net other operating profits

  (4,407  6,502   (10,910

Net gains (losses) on debt securities

  (5,489  5,512   (11,002

General and administrative expenses

  97,632   94,267   3,364 

Personnel expenses

  32,554   30,153   2,401 

Non-personnel expenses

  60,770   58,925   1,845 

Taxes

  4,307   5,189   (882

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

  63,327   73,531   (10,204

Provision for general allowance for credit losses (2)

  —     —     —   

Net operating profits

  63,327   73,532   (10,204

Net non-recurring gains (losses)

  (7,859  (953  (6,905

Credit costs (3)

  (6  (11  4 

Reversal of allowance for credit losses (4)

  38   677   (639

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

  146   39   106 

Gains on loans written-off (6)

  —     0   (0

Net gains (losses) on equity securities

  (1,834  305   (2,139

Gains on sales of equity securities

  12,293   13,621   (1,328

Losses on sales of equity securities

  (7,597  (12,773  5,175 

Losses on write-down of equity securities

  (6,529  (542  (5,986

Other non-recurring gains (losses)

  (6,203  (1,965  (4,238
 

 

 

  

 

 

  

 

 

 

Ordinary profits

  55,468   72,578   (17,110
 

 

 

  

 

 

  

 

 

 

Net extraordinary gains (losses)

  (2,917  453   (3,370

Net gains (losses) on disposition of fixed assets

  (205  1,369   (1,575

Losses on impairment of fixed assets

  (733  (1,001  268 

Losses on sales of shares of affiliates

  (1,978  —     (1,978

Income before income taxes

  52,550   73,031   (20,481

Income taxes-current

  8,975   5,322   3,652 

Income taxes-deferred

  2,300   8,509   (6,209

Total taxes

  11,275   13,832   (2,556
 

 

 

  

 

 

  

 

 

 

Net income

  41,275   59,199   (17,924
 

 

 

  

 

 

  

 

 

 

(Reference)

   

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

  178   706   (528

Credit costs for trust accounts

  (0  0   (0

Provision for general allowance for credit losses

  206   658   (451

Provision for special allowance for credit losses

  (168  18   (187

Allowance for credit to specific foreign borrowers

  —     —     —   

Losses on loans write-offs

  (6  (11  4 

Provision for contingent losses included in credit costs

  146   39   106 

Gains on loans written-off

  —     0   (0

Losses on sales of other loans, etc.

  —     —     —   

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities

  69,744   62,259   7,484 

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities and investment trusts cancellation

  75,278   68,455   6,823 

 

6


Mitsubishi UFJ Financial Group, Inc.

 

2. Average Interest Rate Spread

BK Non-consolidated

 

  (percentage per annum) 
(Domestic business segment) For the six months
ended

September 30, 2020
(A)
  Increase
(Decrease)
(A) - (B)
  For the six months
ended

September 30, 2019
(B)
 

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

  0.40   (0.11  0.51 

Average interest rate on loans and bills discounted (b)

  0.72   (0.05  0.78 

Average interest rate on securities

  0.26   (0.35  0.61 

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

<including general and administrative expenses>

  0.41   (0.08  0.49 

Average interest rate on deposits and NCD (d)

  0.00   (0.00  0.00 

Average interest rate on other liabilities

  0.14   (0.06  0.20 

Overall interest rate spread (a)-(c)

  (0.01  (0.03  0.01 

Interest rate spread (b)-(d)

  0.72   (0.05  0.77 

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

   

Average interest rate on loans and bills discounted (e)

  0.74   (0.05  0.80 

Interest rate spread (e)-(d)

  0.74   (0.05  0.80 

TB Non-consolidated

   
  (percentage per annum) 
(Domestic business segment) For the six months
ended

September 30, 2020
(A)
  Increase
(Decrease)
(A) - (B)
  For the six months
ended

September 30, 2019
(B)
 

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

  0.38   (0.24  0.62 

Average interest rate on loans and bills discounted (b)

  0.32   (0.03  0.35 

Average interest rate on securities

  1.48   (0.20  1.68 

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

  0.13   (0.00  0.13 

Average interest rate on deposits and NCD (d)

  0.02   (0.01  0.04 

Overall interest rate spread (a)-(c)

  0.25   (0.23  0.48 

Interest rate spread (b)-(d)

  0.29   (0.02  0.31 

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

   

Average interest rate on loans and bills discounted (e)

  0.63   (0.03  0.67 

Interest rate spread (e)-(d)

  0.60   (0.02  0.62 
BK and TB Combined   
  (percentage per annum) 
(Domestic business segment) For the six months
ended

September 30, 2020
(A)
  Increase
(Decrease)
(A) - (B)
  For the six months
ended

September 30, 2019
(B)
 

Average interest rate on loans and bills discounted (a)

  0.70   (0.05  0.75 

Average interest rate on deposits and NCD (b)

  0.00   (0.00  0.00 

Interest rate spread (a)-(b)

  0.69   (0.05  0.74 

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

   

Average interest rate on loans and bills discounted (c)

  0.74   (0.05  0.80 

Interest rate spread (c)-(b)

  0.74   (0.05  0.79 

 

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 September 30, 2020 
   within 1 year   1 year to 5 years   over 5 years   Total 

Receive-fix/pay-floater

   2,732.5    5,839.3    7,446.7    16,018.6 

Receive-floater/pay-fix

   1,183.2    1,492.2    1,871.9    4,547.4 

Receive-floater/pay-floater

   —      —      —      —   

Receive-fix/pay-fix

   —      —      —      —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   3,915.7    7,331.6    9,318.6    20,566.0 
  

 

 

   

 

 

   

 

 

   

 

 

 

 

BK Consolidated

 

        
   (in billions of yen) 
   As of September 30, 2020 
   within 1 year   1 year to 5 years   over 5 years   Total 

Receive-fix/pay-floater

   2,474.0    5,419.1    7,319.9    15,213.1 

Receive-floater/pay-fix

   859.9    285.8    536.9    1,682.6 

Receive-floater/pay-floater

   —      —      —      —   

Receive-fix/pay-fix

   —      —      —      —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   3,333.9    5,704.9    7,856.8    16,895.7 
  

 

 

   

 

 

   

 

 

   

 

 

 

 

TB Consolidated

 

        
   (in billions of yen) 
   As of September 30, 2020 
   within 1 year   1 year to 5 years   over 5 years   Total 

Receive-fix/pay-floater

   258.5    336.5    103.1    698.2 

Receive-floater/pay-fix

   299.4    1,123.6    1,293.4    2,716.5 

Receive-floater/pay-floater

   —      —      —      —   

Receive-fix/pay-fix

   —      —      —      —   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total

   557.9    1,460.2    1,396.5    3,414.8 
  

 

 

   

 

 

   

 

 

   

 

 

 

 

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 September 30, 2020   As of March 31, 2020 
   Amount on
consolidated
balance sheet
   Unrealized
gains (losses)
  Gains   Losses   Amount on
consolidated
balance sheet
   Unrealized
gains (losses)
  Gains   Losses 

Debt securities being held to maturity

   3,930,249    41,805   60,631    18,825    4,165,781    12,113   43,847    31,734 

Domestic bonds

   1,100,510    26,629   26,629    —      1,100,574    29,855   29,855    —   

Government bonds

   1,100,510    26,629   26,629    —      1,100,574    29,855   29,855    —   

Municipal bonds

   —      —     —      —      —      —     —      —   

Short-term corporate bonds

   —      —     —      —      —      —     —      —   

Corporate bonds

   —      —     —      —      —      —     —      —   

Other

   2,829,738    15,176   34,001    18,825    3,065,206    (17,742  13,991    31,734 

Foreign bonds

   873,214    33,805   33,849    43    1,034,835    9,696   13,715    4,018 

Other

   1,956,524    (18,629  152    18,782    2,030,371    (27,439  276    27,715 
   (in millions of yen) 
   As of September 30, 2020   As of March 31, 2020 
   Amount on
consolidated
balance sheet
   Unrealized
gains (losses)
  Gains   Losses   Amount on
consolidated
balance sheet
   Unrealized
gains (losses)
  Gains   Losses 

Available-for-sale securities

   71,724,908    3,552,516   3,806,716       254,199    62,151,189    2,888,631   3,361,658    473,026 

Domestic equity securities

   4,686,125    2,747,258     2,815,865    68,607    4,141,355    2,139,981   2,222,330    82,349 

Domestic bonds

   38,647,767    182,932   202,714    19,782    27,473,106    171,378   206,512    35,134 

Government bonds

   30,936,329    135,291   149,583    14,292    20,643,048    123,911   152,196    28,284 

Municipal bonds

   3,343,505    15,067   16,585    1,517    2,952,820    14,076   16,279    2,202 

Short-term corporate bonds

   440,057    48   48    —      —      —     —      —   

Corporate bonds

   3,927,874    32,524   36,498    3,973    3,877,238    33,389   38,036    4,647 

Other

   28,391,015    622,325   788,135    165,810    30,536,727    577,271   932,815    355,543 

Foreign equity securities

   71,065    6,596   10,560    3,963    79,521    12,671   12,690    19 

Foreign bonds

   22,556,051    624,832   634,516    9,684    24,502,462    738,144   798,956    60,811 

Other

   5,763,898    (9,103  143,057    152,161    5,954,743    (173,544  121,168         294,712 

 

9


Mitsubishi UFJ Financial Group, Inc.

 

BK 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 September 30, 2020   As of March 31, 2020 
   Amount on
balance sheet
   Unrealized
gains (losses)
  Gains   Losses   Amount on
balance sheet
   Unrealized
gains (losses)
  Gains   Losses 

Debt securities being held to maturity

   1,906,717    17,816   26,686    8,869    1,944,533    18,785   30,046    11,260 

Stocks of subsidiaries and affiliates

   625,594    32,710   36,989    4,278    627,818    (17,184  4,344    21,529 
   (in millions of yen) 
   As of September 30, 2020   As of March 31, 2020 
   Amount on
balance sheet
   Unrealized
gains (losses)
  Gains   Losses   Amount on
balance sheet
   Unrealized
gains (losses)
  Gains   Losses 

Available-for-sale securities

   55,184,964    2,407,236     2,571,945       164,708    46,321,585    1,991,487    2,347,728       356,240 

Domestic equity securities

   3,830,208    2,154,598   2,217,413    62,815    3,374,636    1,651,395   1,725,564    74,169 

Domestic bonds

   36,692,769    171,081   187,186    16,105    25,770,967    154,064   186,191    32,127 

Other

   14,661,985    81,556   167,344    85,787    17,175,981    186,027   435,971    249,943 

Foreign equity securities

   46,237    (67  3,895    3,963    53,695    6,530   6,549    19 

Foreign bonds

   11,974,328    123,557   124,936    1,378    13,997,325    370,202   401,257    31,055 

Other

   2,641,420    (41,933  38,512    80,445    3,124,961    (190,704  28,164    218,868 

 

Redemption schedule of Available-for-sale securities with maturities and debt securities being held to maturity    

 

 

   (in millions of yen) 
   As of September 30, 2020   As of March 31, 2020 
  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

   18,940,577    9,852,180    5,175,325    3,825,196    10,106,478    9,245,170   4,078,218    3,441,674 

Government bonds

   18,667,365    7,489,254   2,138,702    2,484,940    9,902,705    7,188,369   1,106,011    2,096,962 

Municipal bonds

   34,263    1,018,623   2,265,332    —      11,351    759,253   2,156,905    —   

Short-term corporate bonds

   —      —     —      —      —      —     —      —   

Corporate bonds

   238,948    1,344,302   771,290    1,340,255    192,421    1,297,547   815,301    1,344,712 

Other

   2,683,269    4,003,724   4,813,820    3,367,727    2,600,654    2,410,872   3,474,229    8,298,085 

Foreign bonds

   2,302,403    2,825,626   4,360,835    2,485,463    2,257,468    1,269,228   3,078,456    7,392,171 

Other

   380,866    1,178,098   452,984    882,263    343,186    1,141,643   395,772    905,914 
  

 

 

   

 

 

  

 

 

   

 

 

   

 

 

   

 

 

  

 

 

   

 

 

 

Total

   21,623,847    13,855,905   9,989,145    7,192,923    12,707,132    11,656,042   7,552,448    11,739,760 
  

 

 

   

 

 

  

 

 

   

 

 

   

 

 

   

 

 

  

 

 

   

 

 

 

 

10


Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated

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

Fair Value Information on Securities

 

   (in millions of yen) 
   As of September 30, 2020   As of March 31, 2020 
   Amount on
balance sheet
   Unrealized
gains (losses)
  Gains   Losses   Amount on
balance sheet
   Unrealized
gains (losses)
  Gains   Losses 

Debt securities being held to maturity

   1,040,467    (9,109  —      9,109    1,059,871    (15,289  —      15,289 

Stocks of subsidiaries and affiliates

   70,366    (783  485    1,268    28,482    (1,873  23    1,896 
   (in millions of yen) 
   As of September 30, 2020   As of March 31, 2020 
   Amount on
balance sheet
   Unrealized
gains (losses)
  Gains   Losses   Amount on
balance sheet
   Unrealized
gains (losses)
  Gains   Losses 

Available-for-sale securities

   11,496,721    908,744    992,618    83,873    10,698,869    727,878    834,142    106,263 

Domestic equity securities

   892,218       530,268   540,709    10,440    807,271    432,023        447,382    15,359 

Domestic bonds

   1,929,265    11,719   15,524    3,804    1,710,778    16,171   19,308    3,136 

Other

   8,675,238    366,755   436,383    69,628    8,180,820    279,683   367,451    87,767 

Foreign equity securities

   48    39   39    —      44    35   35    —   

Foreign bonds

   6,876,732    334,700   339,276    4,576    6,616,153    262,471   280,229    17,757 

Other

   1,798,457    32,016   97,068    65,052    1,564,622    17,176   87,186    70,009 

 

Redemption schedule of Available-for-sale securities with maturities and debt securities being held to maturity    

 

 

   (in millions of yen) 
   As of September 30, 2020   As of March 31, 2020 
   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

   828,275    297,851   135,429    667,709    511,354    462,237    148,843    588,343 

Government bonds

   372,168    227,575   50,594    570,599    492,702    400,279   50,562    504,756 

Municipal bonds

   —      5,829   19,456    —      —      4,097   21,212    —   

Short-term corporate bonds

   440,057    —     —      —      —      —     —      —   

Corporate bonds

   16,049    64,446   65,378    97,110    18,652    57,861   77,068    83,587 

Other

   291,920    1,683,191     2,988,414    3,600,759    343,946    1,834,493     2,519,427      3,586,770 

Foreign bonds

   203,884    1,501,108   2,856,136    3,356,070    248,629    1,634,668   2,359,975    3,432,751 

Other

   88,035    182,083   132,277    244,689    95,317    199,825   159,451    154,018 
  

 

 

   

 

 

  

 

 

   

 

 

   

 

 

   

 

 

  

 

 

   

 

 

 

Total

   1,120,195    1,981,043   3,123,843    4,268,468    855,300    2,296,731   2,668,270    4,175,113 
  

 

 

   

 

 

  

 

 

   

 

 

   

 

 

   

 

 

  

 

 

   

 

 

 

 

11


Mitsubishi UFJ Financial Group, Inc.

 

5. ROE

MUFG Consolidated

 

   (%) 
   For the six months
ended

September 30, 2020
(A)
   Increase
(Decrease)
(A) - (B)
  For the six months
ended

September 30, 2019
(B)
 

ROE

   5.83    (2.97  8.80 

Note:

ROE is computed as follows:

 

Profits attributable to owners of parent × 2

  ×100

 

{(Total shareholders’ equity at the beginning of the period + Foreign currency translation adjustments at the beginning of the period) + (Total shareholders’ equity at the end of the period + 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
September 30, 2020
Preliminary (A)
  Increase
(Decrease)
(A) - (B)
  As of
March 31, 2020
(B)
 

(1) Total capital ratio (4)/(7)

   16.55  0.68  15.87

(2) Tier 1 capital ratio (5)/(7)

   14.11  0.54  13.56

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

   12.52  0.61  11.90

(4) Total capital

   18,764.4   484.8   18,279.5 

(5) Tier 1 capital

   15,998.0   374.6   15,623.3 

(6) Common Equity Tier 1 capital

   14,188.1   479.8   13,708.3 

(7) Risk weighted assets

   113,312.5   (1,823.0  115,135.6 

(8) Required Capital (7)×8%

   9,065.0   (145.8  9,210.8 
BK Consolidated    
   (in billions of yen) 
   As of
September 30, 2020
Preliminary (A)
  Increase
(Decrease)
(A) - (B)
  As of
March 31, 2020
(B)
 

(1) Total capital ratio (4)/(7)

   15.00  0.56  14.43

(2) Tier 1 capital ratio (5)/(7)

   12.66  0.36  12.29

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

   11.13  0.42  10.70

(4) Total capital

   14,488.1   202.5   14,285.6 

(5) Tier 1 capital

   12,229.4   59.4   12,170.0 

(6) Common Equity Tier 1 capital

   10,754.0   156.9   10,597.1 

(7) Risk weighted assets

   96,568.9   (2,404.7  98,973.6 

(8) Required Capital (7)×8%

   7,725.5   (192.3  7,917.8 
TB Consolidated    
   (in billions of yen) 
   As of
September 30, 2020
Preliminary (A)
  Increase
(Decrease)
(A) - (B)
  As of
March 31, 2020
(B)
 

(1) Total capital ratio (4)/(7)

   25.30  (0.16)%   25.46

(2) Tier 1 capital ratio (5)/(7)

   22.10  0.19  21.90

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

   19.86  0.40  19.46

(4) Total capital

   2,048.1   158.1   1,889.9 

(5) Tier 1 capital

   1,789.4   163.7   1,625.7 

(6) Common Equity Tier 1 capital

   1,608.0   163.7   1,444.3 

(7) Risk weighted assets

   8,095.3   674.6   7,420.6 

(8) Required Capital (7)×8%

   647.6   53.9   593.6 
BK Non-consolidated    
   (in billions of yen) 
   As of
September 30, 2020
Preliminary (A)
  Increase
(Decrease)
(A) - (B)
  As of
March 31, 2020
(B)
 

(1) Total capital ratio (4)/(7)

   15.22  0.46  14.76

(2) Tier 1 capital ratio (5)/(7)

   12.90  0.38  12.52

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

   11.15  0.48  10.67

(4) Total capital

   12,344.3   252.0   12,092.2 

(5) Tier 1 capital

   10,460.0   205.4   10,254.6 

(6) Common Equity Tier 1 capital

   9,044.4   305.4   8,738.9 

(7) Risk weighted assets

   81,055.3   (831.7  81,887.1 

(8) Required Capital (7)×8%

   6,484.4   (66.5  6,550.9 

 

TB Non-consolidated

    
   (in billions of yen) 
   As of
September 30, 2020
Preliminary (A)
  Increase
(Decrease)
(A) - (B)
  As of
March 31, 2020
(B)
 

(1) Total capital ratio (4)/(7)

   24.87  (0.54)%   25.42

(2) Tier 1 capital ratio (5)/(7)

   22.04  (0.23)%   22.27

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

   20.05  (0.06)%   20.11

(4) Total capital

   2,262.9   131.4   2,131.5 

(5) Tier 1 capital

   2,004.7   137.0   1,867.7 

(6) Common Equity Tier 1 capital

   1,823.7   137.0   1,686.7 

(7) Risk weighted assets

   9,095.7   711.8   8,383.9 

(8) Required Capital (7)×8%

   727.6   56.9   670.7 

 

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 BK and TB 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
September 30, 2020
(A)
   % to total
loans
and bills
discounted
  As of
March 31, 2020
(B)
   % to total
loans
and bills
discounted
  Increase
(Decrease)
(A) - (B)
  % to total
loans
and bills
discounted
 

Loans to bankrupt borrowers

   41,034    0.03  39,125    0.03  1,908   0.00

Non-accrual delinquent loans

   800,786    0.73  650,698    0.59  150,088   0.14

Accruing loans contractually past due 3 months or more

   26,608    0.02  17,238    0.01  9,370   0.00

Restructured loans

   389,287    0.35  382,772    0.35  6,515   0.00
  

 

 

   

 

 

  

 

 

   

 

 

  

 

 

  

 

 

 

Total risk monitored loans

   1,257,717    1.15  1,089,835    0.99  167,882   0.16
  

 

 

   

 

 

  

 

 

   

 

 

  

 

 

  

 

 

 

Total loans and bills discounted

   108,477,009     109,114,612     (637,603 

Written-off

   301,379     296,288     5,091  

(2)   Allowance for Credit Losses

 

    

   (in millions of yen) 
   As of
September 30, 2020
(A)
   % to total
risk
monitored
loans
  As of
March 31, 2020
(B)
   % to total
risk
monitored
loans
  Increase
(Decrease)
(A) - (B)
  % to total
risk
monitored
loans
 

Allowance for credit losses

   1,007,128    80.07  740,641    67.95  266,487   12.11

General allowance for credit losses

   706,834     532,830     174,004  

Specific allowance for credit losses

   300,148     207,636     92,512  

Allowance for credit to specific foreign borrowers

   145     174     (29 

(3)   Classification of Risk-Monitored Loans

 

    

Classified by Geographic Area

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

   675,837    621,344    54,492 

Overseas

   581,880    468,490    113,390 

Asia

   279,337    259,181    20,156 

Indonesia

   57,565    44,179    13,386 

Singapore

   50,327    51,358    (1,030

Thailand

   157,833    150,728    7,105 

Hong Kong

   779    1,806    (1,026

Other

   12,830    11,108    1,722 

Americas

   188,122    145,574    42,548 

Europe, Middle East and Other

   114,420    63,735    50,685 
  

 

 

   

 

 

   

 

 

 

Total

   1,257,717    1,089,835    167,882 
  

 

 

   

 

 

   

 

 

 

 

Classified by Industry

      
   (in millions of yen) 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

   675,837    621,344    54,492 

Manufacturing

   109,739    109,416    322 

Construction

   8,503    8,823    (319

Wholesale and retail

   108,193    107,574    618 

Finance and insurance

   4,338    1,157    3,180 

Real estate, goods rental and leasing

   55,128    39,365    15,762 

Services

   63,735    57,950    5,784 

Other industries

   18,493    15,104    3,389 

Consumer

   307,705    281,951    25,754 

Overseas

   581,880    468,490    113,390 

Financial institutions

   10,712    1,209    9,503 

Commercial and industrial

   446,636    362,389    84,246 

Other

   124,532    104,892    19,640 
  

 

 

   

 

 

   

 

 

 

Total

   1,257,717    1,089,835    167,882 
  

 

 

   

 

 

   

 

 

 

 

14


Mitsubishi UFJ Financial Group, Inc.

 

BK Non-consolidated

 

(1)   Risk-Monitored Loans

    

 
   (in millions of yen) 
   As of
September 30, 2020
(A)
   % to total
loans
and bills
discounted
  As of
March 31, 2020
(B)
   % to total
loans
and bills
discounted
  Increase
(Decrease)
(A) - (B)
  % to total
loans
and bills
discounted
 

Loans to bankrupt borrowers

   31,643    0.03  27,350    0.03  4,292   0.00

Non-accrual delinquent loans

   447,077    0.50  366,444    0.41  80,632   0.09

Accruing loans contractually past due 3 months or more

   15,980    0.01  9,083    0.01  6,897   0.00

Restructured loans

   244,042    0.27  212,187    0.24  31,855   0.03
  

 

 

   

 

 

  

 

 

   

 

 

  

 

 

  

 

 

 

Total risk monitored loans

   738,744    0.83  615,067    0.69  123,676   0.13
  

 

 

   

 

 

  

 

 

   

 

 

  

 

 

  

 

 

 

Total loans and bills discounted

   88,346,810     88,258,295     88,514  

Written-off

   248,962     244,600     4,361  

(2)   Allowance for Credit Losses

    

 
   (in millions of yen) 
   As of
September 30, 2020
(A)
   % to total
risk
monitored
loans
  As of
March 31, 2020
(B)
   % to total
risk
monitored
loans
  Increase
(Decrease)
(A) - (B)
  % to total
risk
monitored
loans
 

Allowance for credit losses

   341,162    46.18  308,908    50.22  32,254   (4.04)% 

General allowance for credit losses

   218,920     232,468     (13,548 

Specific allowance for credit losses

   122,097     76,264     45,832  

Allowance for credit to specific foreign borrowers

   145     174     (29 

(3)   Classification of Risk-Monitored Loans

    

 

Classified by Geographic Area

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

   494,438    432,954    61,484 

Overseas

   244,305    182,113    62,192 

Asia

   63,991    64,386    (395

Indonesia

   168    171    (3

Singapore

   50,327    51,358    (1,030

Thailand

   —      —      —   

Hong Kong

   779    1,806    (1,026

Other

   12,715    11,050    1,665 

Americas

   80,400    65,863    14,536 

Europe, Middle East and Other

   99,913    51,863    48,050 
  

 

 

   

 

 

   

 

 

 

Total

   738,744    615,067    123,676 
  

 

 

   

 

 

   

 

 

 
Classified by Industry      
   (in millions of yen) 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

   494,438    432,954    61,484 

Manufacturing

   109,726    109,403    322 

Construction

   8,494    8,813    (318

Wholesale and retail

   108,073    107,446    627 

Finance and insurance

   4,334    1,154    3,180 

Real estate

   30,443    30,012    430 

Goods rental and leasing

   24,672    9,335    15,336 

Services

   63,726    57,940    5,785 

Other industries

   18,486    15,096    3,389 

Consumer

   126,481    93,751    32,730 

Overseas

   244,305    182,113    62,192 

Financial institutions

   —      —      —   

Commercial and industrial

   244,027    181,870    62,156 

Other

   278    242    35 
  

 

 

   

 

 

   

 

 

 

Total

   738,744    615,067    123,676 
  

 

 

   

 

 

   

 

 

 

 

15


Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated

(1)    Risk-Monitored Loans

   (in millions of yen) 
   As of
September 30, 2020
(A)
   % to total
loans
and bills
discounted
  As of
March 31, 2020
(B)
   % to total
loans
and bills
discounted
  Increase
(Decrease)
(A) - (B)
  % to total
loans
and bills
discounted
 

Loans to bankrupt borrowers

   —      —     —      —     —     —   

Non-accrual delinquent loans

   2,162    0.05  2,319    0.05  (156  0.00

Accruing loans contractually past due 3 months or more

   —      —     —      —     —     —   

Restructured loans

   —      —     —      —     —     —   
  

 

 

   

 

 

  

 

 

   

 

 

  

 

 

  

 

 

 

Total risk monitored loans

   2,162    0.05  2,319    0.05  (156  0.00
  

 

 

   

 

 

  

 

 

   

 

 

  

 

 

  

 

 

 

Total loans and bills discounted

   3,698,967     4,081,093     (382,125 

Written-off

   54     48     6  

(2)    Allowance for Credit Losses

 

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
   % to total
risk
monitored
loans
  As of
March 31, 2020
(B)
   % to total
risk
monitored
loans
  Increase
(Decrease)
(A) - (B)
  % to total
risk
monitored
loans
 

Allowance for credit losses

   1,424    65.85  1,462    63.04  (37  2.81

General allowance for credit losses

   793     999     (206 

Specific allowance for credit losses

   631     462     168  

Allowance for credit to specific foreign borrowers

   —       —       —    

(3)    Classification of Risk-Monitored Loans

Classified by Geographic Area

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

   2,162    2,319    (156

Overseas

   —      —      —   

Asia

   —      —      —   

Indonesia

   —      —      —   

Singapore

   —      —      —   

Thailand

   —      —      —   

Hong Kong

   —      —      —   

Other

   —      —      —   

Americas

   —      —      —   

Europe, Middle East and Other

   —      —      —   
  

 

 

   

 

 

   

 

 

 

Total

   2,162    2,319    (156
  

 

 

   

 

 

   

 

 

 

Classified by Industry

 

   (in millions of yen 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

   2,162    2,319    (156

Manufacturing

   —      —      —   

Construction

   —      —      —   

Wholesale and retail

   —      —      —   

Finance and insurance

   —      —      —   

Real estate

   11    16    (4

Goods rental and leasing

   —      —      —   

Services

   —      —      —   

Other industries

   —      —      —   

Consumer

   2,150    2,302    (152

Overseas

   —      —      —   

Financial institutions

   —      —      —   

Commercial and industrial

   —      —      —   

Other

   —      —      —   
  

 

 

   

 

 

   

 

 

 

Total

   2,162    2,319    (156
  

 

 

   

 

 

   

 

 

 

 

16


Mitsubishi UFJ Financial Group, Inc.

 

TB 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
September 30, 2020
(A)
   % to total
loans

and bills
discounted
  As of
March 31, 2020
(B)
   % to total
loans
and bills

discounted
  Increase
(Decrease)
(A) - (B)
  % to total
loans
and bills

discounted
 

Loans to bankrupt borrowers

   —      —     —      —     —     —   

Non-accrual delinquent loans

   —      —     0    0.00  (0  (0.00)% 

Accruing loans contractually past due 3 months or more

   10    0.14  —      —     10   0.14

Restructured loans

   0    0.00  3    0.02  (3  (0.02)% 
  

 

 

   

 

 

  

 

 

   

 

 

  

 

 

  

 

 

 

Total risk monitored loans

   11    0.14  3    0.03  7   0.11
  

 

 

   

 

 

  

 

 

   

 

 

  

 

 

  

 

 

 

Total loans and bills discounted

   7,390     12,285     (4,895 

 

(2)   Allowance for Credit Losses

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Allowance for bad debts

   22    36    (14

 

(3)

Classification of Risk-Monitored Loans

Classified by Industry

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

   11    3    7 

Manufacturing

   —      — ��    —   

Construction

   —      —      —   

Wholesale and retail

   —      —      —   

Finance and insurance

   —      —      —   

Real estate

   —      —      —   

Goods rental and leasing

   —      —      —   

Services

   —      —      —   

Other industries

   —      —      —   

Consumer

   11    3    7 
  

 

 

   

 

 

   

 

 

 

Total

   11    3    7 
  

 

 

   

 

 

   

 

 

 

 

17


Mitsubishi UFJ Financial Group, Inc.

 

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

BK and TB 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
September 30, 2020
(A)
  As of
March 31, 2020
(B)
  Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

   157,833   121,990   35,843 

Doubtful

   347,355   310,975   36,379 

Special Attention

   260,023   221,271   38,752 

Non Performing Loans (1)

   765,212   654,237   110,975 
  

 

 

  

 

 

  

 

 

 

Normal

   99,151,369   99,954,031   (802,662
  

 

 

  

 

 

  

 

 

 

Total

   99,916,581   100,608,268   (691,687
  

 

 

  

 

 

  

 

 

 

Non Performing Loans / Total

   0.76  0.65  0.11

(2)   Status of Coverage of Non Performing Loans

    
   (in millions of yen) 
   As of
September 30, 2020
(A)
  As of
March 31, 2020
(B)
  Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

   612,180   515,289   96,891 

Allowance for credit losses

   186,759   140,511   46,247 

Collateral, guarantees, etc.

   425,420   374,777   50,643 

Coverage ratio (2) / (1)

   80.00  78.76  1.23

 

(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

   157,833    15,700    142,133    ——      100.00
   [121,990   [2,772   [119,217   [100.00%] 

Doubtful

   347,355    106,027    169,109    ——      79.20
   [310,975   [72,607   [170,444   [78.15%] 

Special Attention

   260,023    65,031    114,177    ——      68.92
   [221,271   [65,131   [85,115   [67.90%] 

Total

   765,212    186,759    425,420    ——      80.00
   [654,237   [140,511   [374,777   [78.76%] 

Note: The upper figures are as of September 30, 2020. The lower figures with brackets are as of March 31, 2020.

 

(4)

Classified by Industry

 

                                                                                    
   (in millions of yen) 
   As of
September 30,
2020 (A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

        503,712        442,033    61,679 

Manufacturing

   111,985    111,393    591 

Construction

   8,494    8,813    (318

Wholesale and retail

   111,099    110,391    707 

Finance and insurance

   4,628    1,459    3,169 

Real estate

   30,612    30,188    424 

Goods rental and leasing

   24,672    9,335    15,336 

Services

   64,263    58,405    5,857 

Other industries

   19,289    15,899    3,389 

Consumer

   128,666    96,146    32,520 

Overseas

   261,499    212,203          49,295 

Financial institutions

   —      —      —   

Commercial and industrial

   261,115    211,851    49,263 

Other

   384    351    32 
  

 

 

   

 

 

   

 

 

 

Total

            765,212             654,237        110,975 
  

 

 

   

 

 

   

 

 

 

 

18


Mitsubishi UFJ Financial Group, Inc.

 

BK Non-consolidated

(1) Non Performing Loans

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
  As of
March 31, 2020
(B)
  Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

     157,789   121,940   35,849 

Doubtful

   345,217   308,695   36,521 

Special Attention

   260,023   221,271   38,752 

Non Performing Loans (1)

   763,031   651,907   111,123 
  

 

 

  

 

 

  

 

 

 

Normal

   95,345,236   95,754,905   (409,668
  

 

 

  

 

 

  

 

 

 

Total

     96,108,268   96,406,813   (298,545
  

 

 

  

 

 

  

 

 

 

Non Performing Loans / Total

   0.79  0.67  0.11

(2)   Status of Coverage of Non Performing Loans

    

   (in millions of yen) 
   As of
September 30, 2020
(A)
  As of
March 31, 2020
(B)
  Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

   609,999   512,960   97,038 

Allowance for credit losses

   186,759   140,511   46,247 

Collateral, guarantees, etc.

   423,239   372,448   50,790 

Coverage ratio (2) / (1)

   79.94  78.68  1.25

 

(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

   157,789   15,700   142,089   100.00  100.00
   [121,940  [2,772  [119,167  [100.00%]   [100.00%] 

Doubtful

   345,217   106,027   166,972   59.48  79.08
   [308,695  [72,607  [168,165  [51.66%]   [77.99%] 

Special Attention

   260,023   65,031   114,177   44.58  68.92
   [221,271  [65,131  [85,115  [47.83%]   [67.90%] 

Total

   763,031   186,759   423,239   54.96  79.94
   [651,907  [140,511  [372,448  [50.27%]   [78.68%] 

 

Note:

The upper figures are as of September 30, 2020. The lower figures with brackets are as of March 31, 2020.

 

(4)

Classified by Industry

 

                                                                        
   (in millions of yen) 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

   501,531    439,704    61,827 

Manufacturing

   111,985    111,393    591 

Construction

   8,494    8,813    (318

Wholesale and retail

          111,099           110,391    707 

Finance and insurance

   4,628    1,459    3,169 

Real estate

   30,600    30,171    429 

Goods rental and leasing

   24,672    9,335    15,336 

Services

   64,263    58,405    5,857 

Other industries

   19,289    15,899    3,389 

Consumer

   126,497    93,833    32,664 

Overseas

   261,499    212,203    49,295 

Financial institutions

   —      —      —   

Commercial and industrial

   261,115    211,851        49,263 

Other

   384    351    32 
  

 

 

   

 

 

   

 

 

 

Total

   763,031    651,907    111,123 
  

 

 

   

 

 

   

 

 

 

 

19


Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated

 

(1)

Non Performing Loans

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
  As of
March 31, 2020
(B)
  Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

   43   49   (6

Doubtful

   2,126   2,275   (149

Special Attention

   —     —     —   

Non Performing Loans (1)

   2,170   2,325   (155
  

 

 

  

 

 

  

 

 

 

Normal

   3,798,752   4,186,844   (388,091
  

 

 

  

 

 

  

 

 

 

Total

   3,800,922   4,189,169   (388,247
  

 

 

  

 

 

  

 

 

 

Non Performing Loans / Total

   0.05  0.05  0.00

(2)   Status of Coverage of Non Performing Loans

    

   (in millions of yen) 
   As of
September 30, 2020
(A)
  As of
March 31, 2020
(B)
  Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

   2,170   2,325   (155

Allowance for credit losses

   —     —     —   

Collateral, guarantees, etc.

   2,170   2,325   (155

Coverage ratio (2) / (1)

   100.00  100.00  —   

(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

   43   —     43   —     100.00
   [ 49  [—    [ 49  [—    [100.00%] 

Doubtful

   2,126   —     2,126   —     100.00
   [2,275  [—    [2,275  [—    [100.00%] 

Special Attention

   —     —     —     —     —   
   [—    [—    [—    [—    [—  

Total

   2,170   —     2,170   —     100.00
   [2,325  [—    [2,325  [—   ��[100.00%] 

 

Note:

The upper figures are as of September 30, 2020. The lower figures with brackets are as of March 31, 2020.

 

(4)

Classified by Industry

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

   2,170    2,325    (155) 

Manufacturing

   —      —      —   

Construction

   —      —      —   

Wholesale and retail

   —      —      —   

Finance and insurance

   —      —      —   

Real estate

   11    16    (4

Goods rental and leasing

   —      —      —   

Services

   —      —      —   

Other industries

   —      —      —   

Consumer

                    2,158                      2,309    (151

Overseas

   —      —      —   

Financial institutions

   —      —      —   

Commercial and industrial

   —      —      —   

Other

   —      —      —   
  

 

 

   

 

 

   

 

 

 

Total

   2,170    2,325    (155) 
  

 

 

   

 

 

   

 

 

 

 

20


Mitsubishi UFJ Financial Group, Inc.

 

TB 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
September 30, 2020
(A)
  As of
March 31, 2020
(B)
  Increase
(Decrease)
(A) - (B)
 

Bankrupt or De facto Bankrupt

   —     0   (0

Doubtful

   11   3   7 

Special Attention

   —     —     —   

Non Performing Loans (1)

   11   3   7 
  

 

 

  

 

 

  

 

 

 

Normal

                  7,379                  12,281   (4,902
  

 

 

  

 

 

  

 

 

 

Total

   7,390   12,285   (4,895
  

 

 

  

 

 

  

 

 

 

Non Performing Loans / Total

   0.14  0.03  0.11

(2)   Status of Coverage of Non Performing Loans

    
   (in millions of yen) 
   As of
September 30, 2020
(A)
  As of
March 31, 2020
(B)
  Increase
(Decrease)
(A) - (B)
 

Covered amount (2)

   10   2   7 

Allowance for credit losses

   —     —     —   

Collateral, guarantees, etc.

   10   2   7 

Coverage ratio (2) / (1)

   99.25  79.42              19.83

 

(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

   

—  

[0

 

  

—  

[—  

 

  

—  

[0

 

  ——      

—  

[100.00

 

%] 

Doubtful

   

11

[3

 

  

—  

[—  

 

  

10

[2

 

  ——      

99.25

[79.00


%] 

Special Attention

   

—  

[—  

 

  

—  

[—  

 

  

—  

[—  

 

  ——      

—  

[—  

 

]

Total

   

11

[3

 

  

—  

[—  

 

  

10

[2

 

  ——      

99.25

[79.42


%] 

Note:  The upper figures are as of September 30, 2020. The lower figures with brackets are as of March 31, 2020.

 

(4)   Classified by Industry

   

    

 

                                                                        
   (in millions of yen) 
   As of
September 30, 2020
(A)
   As of
March 31, 2020
(B)
   Increase
(Decrease)
(A) - (B)
 

Domestic

                         11    3    7 

Manufacturing

   —      —      —       

Construction

   —      —      —   

Wholesale and retail

   —      —      —   

Finance and insurance

   —      —      —   

Real estate

   —      —      —   

Goods rental and leasing

   —      —      —   

Services

   —      —      —   

Other industries

   —      —      —   

Consumer

   11    3    7 
  

 

 

   

 

 

   

 

 

 

Total

   11    3    7 
  

 

 

   

 

 

   

 

 

 

 

21


Mitsubishi UFJ Financial Group, Inc.

 

Overview of Non-Performing Loans

BK and TB 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    

 

 [142.1] [12.0] 

 

[3.6]

 

(*1)

  

 

100.00%  

  

i) Bankrupt or

De facto Bankrupt

 

[157.8]

  

Loans to bankrupt borrowers

 

[31.6]

 

 

Substantially    
Bankrupt    
Borrowers    

 

     

Non-accrual

delinquent loans

 

[449.2]

 

Potentially    
Bankrupt    
Borrowers    

 

 [169.1] [178.2]     59.48%     

ii) Doubtful

 

[347.3]

 
     

Borrowers    
Requiring    
Caution    
(Special    
Attention    
Borrowers)    

 

 [260.0]    44.58%    

iii) Special Attention

 

[260.0]

  

Accruing loans contractually past due

3 months or more

 

[15.9]

 

          

 

Restructured loans

 

[244.0]

 

    
              
    

Borrowers    
Requiring    
Caution    
(Other    
Borrowers)    

 

          

iv) Normal

 

[99,143.9]

 

 

   

 

Normal    
Borrowers    

 

           
  
        Non-Performing Loans Based on the “FRL”  Risk-Monitored Loans
        i) + ii) + iii)  
        765.2  740.9
        Total  
        i) + ii) + iii) + iv)  
        99,909.1  

(*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

BK Non-consolidated

 

(1)

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

 

   (in millions of yen) 
   As of
March 31, 2018
   As of
March 31, 2019
   As of
March 31, 2020
(A)
   As of
September 30, 2020
(B)
   (B) - (A) 

Assets newly categorized during fiscal 2017

   125,207    33,393    22,912    21,217    (1,694

Assets newly categorized during fiscal 2018

     178,183    27,831    23,939    (3,891

Assets newly categorized during fiscal 2019

     196,249    139,414    (56,835

Assets newly categorized during fiscal 2020

     150,161   

 

(2)   Progress in Disposition of Problem Assets

    

 

   (in millions of yen) 
   For the first half of the fiscal year ended September 30, 2020 
      Bankrupt or
De facto Bankrupt
   Doubtful 

Liquidation

   899     

Reconstructive treatment

   17,843     

Upgrade due to reconstructive treatment

   —       

Loan sold to secondary market

   3,849     

Write-offs

   12,252     

Others

   42,945     

Collection / Repayment

   28,065     

Upgrade

   14,880     
  

 

 

   

 

 

   

 

 

 

Total

   77,790          30,808          46,982 
  

 

 

   

 

 

   

 

 

 

Amount in process for disposition

         136,030     

 

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.

 

TB 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, 2018
   As of
March 31, 2019
   As of
March 31, 2020
(A)
   As of
September 30, 2020
(B)
   (B) - (A) 

Assets newly categorized during fiscal 2017

        1,319    491    267    252    (14

Assets newly categorized during fiscal 2018

         1,067    381    167    (214

Assets newly categorized during fiscal 2019

           841           470    (371

Assets newly categorized during fiscal 2020

         542                   

 

(2)   Progress in Disposition of Problem Assets

    

 

   (in millions of yen) 
   For the first half of the fiscal year ended September 30, 2020 
       Bankrupt or
De facto Bankrupt
   Doubtful 

Liquidation

   —       

Reconstructive treatment

   —       

Upgrade due to reconstructive treatment

   —       

Loan sold to secondary market

   —       

Write-offs

   6     

Others

   684     

Collection / Repayment

   195     

Upgrade

   489     
  

 

 

   

 

 

   

 

 

 

Total

   691               7              684 
  

 

 

   

 

 

   

 

 

 

Amount in process for disposition

              103     

 

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

BK and TB Combined including Trust Accounts

 

(1)

Loans Classified by Type of Industry

 

                                                                                                
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)
(A) - (B)
  As of
March 31, 2020
(B)
 

Domestic offices (excluding loans booked at offshore markets)

     69,471,936            2,896,261          66,575,675      

Manufacturing

   12,644,372   2,412,961   10,231,411 

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

   176,809   (8,787  185,596 

Construction

   714,801   26,532   688,269 

Utilities

   2,074,756   156,971   1,917,785 

Communication and information services

   1,274,080   (57,254  1,331,334 

Transport and postal activities

   2,466,456   259,555   2,206,901 

Wholesale and retail

   6,813,629   360,954   6,452,675 

Finance and insurance

   7,757,483   (669,116  8,426,599 

Real estate

   8,797,718   69,401   8,728,317 

Goods rental and leasing

   2,562,872   111,151   2,451,721 

Services

   3,118,739   361,866   2,756,873 

Municipal government

   1,013,342   97,981   915,361 

Other industries (including loans to the Japanese government)

   20,056,876   (225,951  20,282,827 

Overseas offices and loans booked at offshore markets

   22,896,246   (3,227,299  26,123,546 
  

 

 

  

 

 

  

 

 

 

Total

   92,368,182   (331,038  92,699,221 

(2)   Domestic Consumer Loans

    
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Total domestic consumer loans

   15,400,212   (201,821  15,602,034 

Housing loans

   14,667,706   (152,450  14,820,157 

Residential purpose

   12,820,440   (120,844  12,941,284 

Other

   732,506   (49,371  781,877 

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

    
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Outstanding amount

   38,817,589   (156,697  38,974,286 

% to total domestic loans

   55.87  (2.66)%   58.54

 

25


Mitsubishi UFJ Financial Group, Inc.

 

BK Non-consolidated

 

(1)

Loans Classified by Type of Industry

 

                                                                                                
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Domestic offices (excluding loans booked at offshore markets)

     65,769,350            3,327,295          62,442,054      

Manufacturing

   12,642,972   2,411,572   10,231,400 

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

   176,809   (8,787  185,596 

Construction

   714,801   26,532   688,269 

Utilities

   2,029,756   156,971   1,872,785 

Communication and information services

   1,264,070   (57,836  1,321,906 

Transport and postal activities

   2,446,329   260,265   2,186,064 

Wholesale and retail

   6,813,629   360,954   6,452,675 

Finance and insurance

   6,524,926   (462,280  6,987,206 

Real estate

   8,793,616   69,997   8,723,619 

Goods rental and leasing

   2,562,872   111,151   2,451,721 

Services

   3,078,919   361,886   2,717,033 

Municipal government

   1,012,977   102,132   910,845 

Other industries (including loans to the Japanese government)

   17,707,674   (5,261  17,712,935 

Overseas offices and loans booked at offshore markets

   22,577,459   (3,238,780  25,816,240 
  

 

 

  

 

 

  

 

 

 

Total

     88,346,810   88,514     88,258,295 
  

 

 

  

 

 

  

 

 

 

 

(2)   Domestic Consumer Loans

 

    
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Total domestic consumer loans

   14,456,928   (154,872  14,611,801 

Housing loans

   13,726,406   (105,830  13,832,237 

Residential purpose

   11,880,065   (74,442  11,954,507 

Other

   730,521   (49,042  779,563 

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

    
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Outstanding amount

   37,254,106   (45,214  37,299,320 

% to total domestic loans

   56.64  (3.09)%   59.73

 

26


Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated

 

(1)

Loans Classified by Type of Industry

 

                                                                                                
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)
(A) - (B)
  As of
March 31, 2020
(B)
 

Domestic offices (excluding loans booked at offshore markets)

       3,380,181        (393,606  3,773,787 

Manufacturing

   —     (11  11 

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

   —     —     —   

Construction

   —     —     —   

Utilities

   —     —     —   

Communication and information services

   10,010   582   9,428 

Transport and postal activities

   127   (710  837 

Wholesale and retail

   —     —     —   

Finance and insurance

   1,203,805   (160,809  1,364,614 

Real estate

   2,162   (238  2,400 

Goods rental and leasing

   —     —     —   

Services

   39,820   (20  39,840 

Municipal government

   —     —     —   

Other industries (including loans to the Japanese government)

   2,124,256   (232,399      2,356,655      

Overseas offices and loans booked at offshore markets

   318,786            11,480        307,305 
  

 

 

  

 

 

  

 

 

 

Total

   3,698,967   (382,125  4,081,093 
  

 

 

  

 

 

  

 

 

 

(2)   Domestic Consumer Loans

    
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Total domestic consumer loans

   938,247   (46,540  984,787 

Housing loans

   936,266   (46,214  982,480 

Residential purpose

   935,572   (46,054  981,626 

Other

   1,980   (325  2,306 

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

    
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Outstanding amount

   1,316,596   (122,835  1,439,431 

% to total domestic loans

   38.95  0.80  38.14

 

27


Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated: Trust Accounts

 

(1)

Loans Classified by Type of Industry

 

                                                                                                
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Domestic offices (excluding loans booked at offshore markets)

          322,404        (37,427         359,832      

Manufacturing

   1,400              1,400        —   

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

   —     —     —   

Construction

   —     —     —   

Utilities

   45,000   —     45,000 

Communication and information services

   —     —     —   

Transport and postal activities

   20,000   —     20,000 

Wholesale and retail

   —     —     —   

Finance and insurance

   28,752   (46,027  74,779 

Real estate

   1,940   (358  2,298 

Goods rental and leasing

   —     —     —   

Services

   —     —     —   

Municipal government

   365   (4,151  4,516 

Other industries (including loans to the Japanese government)

   224,946   11,709   213,237 

Overseas offices and loans booked at offshore markets

   —     —     —   
  

 

 

  

 

 

  

 

 

 

Total

   322,404   (37,427  359,832 
  

 

 

  

 

 

  

 

 

 

(2)   Domestic Consumer Loans

 

    

   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Total domestic consumer loans

   5,036   (409  5,445 

Housing loans

   5,032   (406  5,438 

Residential purpose

   4,802   (347  5,150 

Other

   4   (2  7 

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

    
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Outstanding amount

   246,887   11,352   235,535 

% to total domestic loans

   76.57  11.12  65.45

 

28


Mitsubishi UFJ Financial Group, Inc.

 

11. Overseas Loans    

BK Consolidated excl. MUAH, KS, BDI    

 

                                                                                                
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)
(A) - (B)
  As of
March 31, 2020
(B)
 

Americas

   8,313,328        (1,409,253  9,722,581      

United States of America

   6,648,216   (1,259,298  7,907,514 

Canada

          625,551   24,347        601,204 

Brazil

   430,671   (140,625         571,297 

Mexico

   333,821   (37,452  371,273 

Others

   275,066              3,775   271,290 

Asia/Oceania

   9,775,319   (911,985  10,687,305 

Hong Kong

   2,077,307   (206,221  2,283,528 

China

   1,358,778   (202,785  1,561,564 

Singapore

   1,227,276   (115,142  1,342,418 

Australia

   1,126,786   (104,131  1,230,918 

Indonesia

   871,943   17,422   854,520 

India

   676,193   (135,041  811,235 

Malaysia

   604,912   (104,828  709,741 

Taiwan

   566,144   60,251   505,892 

South Korea

   375,482   (22,689  398,172 

New Zealand

   275,672   (60,708  336,380 

Vietnam

   225,188   (11,803  236,991 

Others

   389,633   (26,308  415,941 

EMEA

   7,192,092   (748,704  7,940,797 

United Kingdom

   1,835,593   (172,688  2,008,282 

Netherlands

   737,936   (149,180  887,116 

Germany

   555,639   17,856   537,783 

Saudi Arabia

   502,134   (100,234  602,368 

France

   388,754   (26,663  415,418 

Ireland

   320,219   (20,984  341,204 

UAE

   228,322   (20,620  248,943 

Qatar

   226,055   27,700   198,355 

Switzerland

   211,370   (82,431  293,801 

Luxembourg

   200,168   (61,671  261,839 

Italy

   188,755   16,167   172,588 

Belgium

   185,211   (59,453  244,664 

Turkey

   181,469   (27,998  209,468 

Russia

   165,775   (6,177  171,953 

Poland

   135,332   (16,215  151,547 

South Africa

   134,111   (841  134,953 

Oman

   102,937   895   102,042 

Others

   892,302   (66,162  958,464 
  

 

 

  

 

 

  

 

 

 

Total

     25,280,740   (3,069,944    28,350,684 
  

 

 

  

 

 

  

 

 

 

Note: MUAH (MUFG Americas Holdings Corporation), KS (Bank of Ayudhya Public Company Limited) and BDI (PT Bank Danamon Indonesia, Tbk.) have the following loan balances in the consolidated financial statements.

  

   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

MUAH

       9,182,509     (332,930      9,515,440   

KS

   4,826,548        (29,795  4,856,343 

BDI

   962,006   (54,940  1,016,947 

 

29


Mitsubishi UFJ Financial Group, Inc.

 

12. Loans and Deposits    

BK and TB Combined    

 

                                                                                                
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Deposits (ending balance)

   182,249,733          12,865,685        169,384,048      

Deposits (average balance)

   179,875,345   13,619,459   166,255,886 

Loans (ending balance)

   92,045,778   (293,610  92,339,389 

Loans (average balance)

   95,671,638   4,139,842   91,531,796 

 

BK Non-consolidated

 

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Deposits (ending balance)

   171,272,582      13,024,018    158,248,564  

Deposits (average balance)

   168,757,649   14,289,339   154,468,309 

Loans (ending balance)

   88,346,810   88,514   88,258,295 

Loans (average balance)

   91,770,869   4,563,761   87,207,107 

 

TB Non-consolidated

 

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Deposits (ending balance)

     10,977,150    (158,333    11,135,484  

Deposits (average balance)

   11,117,696     (669,880  11,787,576 

Loans (ending balance)

   3,698,967   (382,125  4,081,093 

Loans (average balance)

   3,900,769   (423,919  4,324,689 

 

30


Mitsubishi UFJ Financial Group, Inc.

 

13. Domestic Deposits    

BK and TB Combined    

 

                                                                                                
   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Individuals

     82,471,560        3,153,905        79,317,655      

Corporations and others

   74,431,604   7,846,050   66,585,553 

Domestic deposits

   156,903,165     10,999,956   145,903,208 

 

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

  

 

BK Non-consolidated

 

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Individuals

     75,706,554    3,291,939   72,414,615  

Corporations and others

   71,458,043   7,716,958   63,741,084 

Domestic deposits

   147,164,597     11,008,897   136,155,699 

 

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

  

 

TB Non-consolidated

 

 

   (in millions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Individuals

       6,765,006    (138,033      6,903,040 

Corporations and others

   2,973,560          129,091   2,844,468 

Domestic deposits

   9,738,567   (8,941  9,747,508 

 

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

  

 

31


Mitsubishi UFJ Financial Group, Inc.

 

14. Status of Deferred Tax Assets

BK Non-consolidated

 

(1)

Tax Effects of the Items Comprising Net Deferred Tax Assets    

 

                                                                                                
   (in billions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Deferred tax assets

              493.3        (1.0  494.4 

Allowance for credit losses

   160.9                  1.4                   159.4      

Write-down on investment securities

   396.7   (6.6  403.3 

Unrealized losses on Available-for-sale securities

   7.2   (0.9  8.1 

Reserve for retirement benefits

   92.2   0.6   91.5 

Reserve for contingent losses

   15.7   (1.7  17.4 

Depreciation and Impairment losses

   45.8   1.4   44.3 

Devaluation on land upon merger

   25.9   (0.2  26.1 

Other

   174.2   1.7   172.4 

Valuation allowance

   (425.5  3.0   (428.5

Deferred tax liabilities

   986.9   94.9   891.9 

Unrealized gains on Available-for-sale securities

   697.4   114.5   582.9 

Net deferred gains on hedging instruments

   140.8   (4.8  145.7 

Revaluation gains on securities upon merger

   52.9   (0.3  53.3 

Gains on securities contributed to employees’ retirement benefits trust

   45.4   0.2   45.2 

Other

   50.1   (14.5  64.7 

Net deferred tax assets

   (493.5  (96.0  (397.5

 

(2)

Net operating profits before provision for general allowance for credit losses and Taxable Income    

 

   (in billions of yen) 
   FY2015  FY2016  FY2017  FY2018  FY2019  Interim FY2020 

Net operating profits before provision for general allowance for credit losses

   888.1   666.9   554.3   388.4   395.2   321.6 

Total credit costs

   (103.4  (25.4  56.0   128.5   11.8   (48.9

Income before income taxes

   884.7   632.2   580.0   767.2   (535.9  264.1 

Reconciliation to taxable income

   (113.3  (86.2  (156.0  (500.2  844.6   (12.7

Taxable income

   771.3   546.0   424.0   267.0   308.7   251.4 

 

(3)

Classification Based on Prior Year Operating Results as Provided in the ASBJ Guidance No. 26    

 

    

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

 

32


Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated    

 

(1)

Tax Effects of the Items Comprising Net Deferred Tax Assets    

 

                                                                                                
   (in billions of yen) 
   As of
September 30, 2020
(A)
  Increase
(Decrease)

(A) - (B)
  As of
March 31, 2020
(B)
 

Deferred tax assets

                90.9        (3.6  94.5 

Net deferred losses on hedging instruments

   44.0   (4.7  48.8 

Gains on securities related to employees’ retirement benefits trust

   32.2                  1.0                     31.2      

Write-down on investment securities

   11.7   0.5   11.1 

Depreciation and Impairment losses

   9.1   (0.1  9.3 

Reserve for contingent losses

   4.5   (0.1  4.7 

Other

   18.7   (0.3  19.1 

Valuation allowance

   (29.6  0.1   (29.8

Deferred tax liabilities

   359.6   50.4   309.1 

Unrealized gains on Available-for-sale securities

   268.7   46.7   221.9 

Reserve for retirement benefits

   81.5   3.5   77.9 

Other

   9.3   0.1   9.2 

Net deferred tax assets

   (268.7  (54.1  (214.6

 

(2)

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses and Taxable Income

 

   (in billions of yen) 
   FY2015  FY2016  FY2017  FY2018  FY2019  Interim FY2020 

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

   193.0   181.4   162.1   144.5   142.3   63.3 

Total credit costs

   (0.2  (22.5  23.4   1.3   0.8   0.1 

Income before income taxes

   218.6   156.3   249.7   127.9   148.6   52.5 

Reconciliation to taxable income

   (68.1  1.8   (69.5  (79.2  (39.3  (26.6

Taxable income

   150.4   158.1   180.2   48.7   109.3   25.8 

 

(3)

Classification Based on Prior Year Operating Results as Provided in the ASBJ Guidance No.26    

 

    

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

 

33


Mitsubishi UFJ Financial Group, Inc.

 

(Reference)

1. Impact of the COVID-19 pandemic on MUFG business

In this fiscal year, at present, it is assumed that the COVID-19 pandemic will not be contained early, and the economy under “Coexist with COVID-19” will continue. Although the world economy is recovering from the worst period of April to June, it is expected that the pace of economic recovery will slow down under seeking to balance between the prevention of the COVID-19 pandemic and the maintenance of economic activity, and that it will take considerable time to recover before the pandemic. Based on our financial results for the first half of FY2020, we revised earnings target of profits attributable to the owners of parent for the fiscal year ending March 31, 2021 (Consolidated) to 600.0 billion yen. However, if actual timing of containment of the virus and the degree of the impact on the real economy are different from our assumptions, FY2020 target may be revised or differ from the actual results significantly.

We intend to continue to monitor developments relating to the pandemic and, as necessary, revise the earnings target.

 

   Major impact that may arise or be anticipated  

Estimated impact on

pre-tax profit*

      

Announced

on May 15, 2020

  

Announced on

November 13, 2020

Impact on net operating profits  

•   Decline in foreign currency interest income due to interest rate reductions in various markets and decline in long-term interest rates

  Approx. (300.0) billion yen      Approx. (200.0) billion yen    
  

 

•   Decrease in assets under custody or management due to falling stock prices in various markets

    
  

 

•   Decline in new investments and business transactions by customers due to deteriorating economic activity

    
  

 

•   Change in consumer spending and decreased investor appetite for investment in uncertain financial markets

    
  

 

•   Restrictions on our business activities, etc.

    
Impact on credit costs and net gains (losses) on equity securities etc.  

•   Increase in credit costs due to deterioration in the business performance of borrowers

 

•   Decline in gains (or increase in losses) on sales of securities

 

•   Decrease in equity earnings in equity method investees and deterioration in other non-recurring gains (losses), etc.

  

Approx.

(300.0) billion yen

  

Approx.

(330.0) billion yen

 

*

The above figures illustrate some of the major items that we expect to affect pre-tax profit as a result of the COVID-19 pandemic. These effects as well as other COVID-19 pandemic related issues currently being considered by us have been taken into account in our earnings target for the Fiscal Year ending March 31, 2021 (Consolidated). Including the positive effects of response to environmental changes due to the COVID-19.

 

34


Mitsubishi UFJ Financial Group, Inc.

 

2. Financial Statements

BK Non-consolidated

 

(1)

Non-consolidated Balance Sheets

 

(in millions of yen)  As of
March 31, 2020
  As of
September 30, 2020
 

Assets:

   

Cash and due from banks

   62,272,588   76,025,613 

Call loans

   593,434   352,499 

Receivables under resale agreements

   9,870,103   2,734,972 

Monetary claims bought

   3,824,545   3,288,993 

Trading assets

   6,834,573   5,367,988 

Money held in trust

   50,987   16,077 

Securities

   50,781,265   59,619,399 

Loans and bills discounted

   88,258,295   88,346,810 

Foreign exchanges

   1,438,965   1,433,901 

Other assets

   8,319,339   7,099,348 

Tangible fixed assets

   792,725   778,416 

Intangible fixed assets

   461,508   462,978 

Prepaid pension costs

   362,724   376,198 

Customers’ liabilities for acceptances and guarantees

   6,236,398   5,915,540 

Allowance for credit losses

   (308,908  (341,162
  

 

 

  

 

 

 

Total assets

         239,788,548         251,477,574 
  

 

 

  

 

 

 

 

35


Mitsubishi UFJ Financial Group, Inc.

 

   As of  As of 
(in millions of yen)  March 31, 2020  September 30, 2020 

Liabilities:

   

Deposits

   158,248,564   171,272,582 

Negotiable certificates of deposit

   5,301,960   6,012,604 

Call money

   1,206,809   1,815,674 

Payables under repurchase agreements

   13,847,974   9,353,737 

Payables under securities lending transactions

   19,429   —   

Commercial papers

   1,524,439   1,119,229 

Trading liabilities

   2,948,964   2,512,431 

Borrowed money

   28,952,597   34,282,925 

Foreign exchanges

   3,059,394   2,398,133 

Bonds payable

   1,854,358   1,775,988 

Other liabilities

   6,185,088   4,233,820 

Reserve for bonuses

   30,424   22,269 

Reserve for bonuses to directors

   144   51 

Reserve for stocks payment

   5,014   4,308 

Reserve for retirement benefits

   5,664   6,127 

Reserve for loyalty award credits

   1,412   1,544 

Reserve for contingent losses

   57,015   51,377 

Deferred tax liabilities

   397,510   493,572 

Deferred tax liabilities for land revaluation

   103,409   100,004 

Acceptances and guarantees

   6,236,398   5,915,540 
  

 

 

  

 

 

 

Total liabilities

   229,986,579   241,371,927 
  

 

 

  

 

 

 

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

   2,932,893   2,994,658 

Revenue reserve

   190,044   190,044 

Other retained earnings

   2,742,849   2,804,613 

Funds for retirement benefits

   2,432   2,432 

Other reserve

   718,196   718,196 

Earned surplus brought forward

   2,022,220   2,083,984 

Treasury stock

   (645,700  (645,700
  

 

 

  

 

 

 

Total shareholders’ equity

   7,877,427   7,939,191 
  

 

 

  

 

 

 

Net unrealized gains (losses) on available-for-sale securities

   1,391,751   1,652,138 

Net deferred gains (losses) on hedging instruments

   329,943   319,185 

Land revaluation excess

   202,845   195,131 
  

 

 

  

 

 

 

Total valuation and translation adjustments

   1,924,541   2,166,455 
  

 

 

  

 

 

 

Total net assets

   9,801,968   10,105,647 
  

 

 

  

 

 

 

Total liabilities and net assets

         239,788,548         251,477,574 
  

 

 

  

 

 

 

 

36


Mitsubishi UFJ Financial Group, Inc.

 

BK Non-consolidated

 

(2)

Non-consolidated Statements of Income

 

(in millions of yen)  For the six months
ended
September 30, 2019
   For the six months
ended
September 30, 2020
 

Ordinary income

             1,921,410              1,457,575 

Interest income

   1,114,938    684,339 

Interest on loans and bills discounted

   727,238    479,583 

Interest and dividends on securities

   228,343    150,244 

Fees and commissions

   288,120    253,508 

Trading income

   20,714    60,723 

Other operating income

   300,275    387,732 

Other ordinary income

   197,361    71,271 

Ordinary expenses

   1,511,842    1,193,762 

Interest expenses

   683,487    259,998 

Interest on deposits

   256,245    76,443 

Fees and commissions

   91,999    78,427 

Other operating expenses

   104,736    159,261 

General and administrative expenses

   559,479    576,428 

Other ordinary expenses

   72,139    119,646 
  

 

 

   

 

 

 

Ordinary profits

   409,568    263,812 
  

 

 

   

 

 

 

Extraordinary gains

   2,473    14,979 

Extraordinary losses

   16,242    14,644 
  

 

 

   

 

 

 

Income before income taxes

   395,799    264,147 
  

 

 

   

 

 

 

Income taxes - current

   48,902    88,424 

Income taxes - deferred

   58,351    (18,005
  

 

 

   

 

 

 

Total taxes

   107,254    70,418 
  

 

 

   

 

 

 

Net income

   288,545    193,728 
  

 

 

   

 

 

 

 

37


Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated

 

(1)

Non-consolidated Balance Sheets

 

(in millions of yen)  As of
March 31, 2020
  As of
September 30, 2020
 

Assets:

   

Cash and due from banks

   11,162,691   11,778,533 

Call loans

   90,970   28,000 

Receivables under resale agreements

   700,967   —   

Receivables under securities borrowing transactions

   118,575   108,676 

Monetary claims bought

   143,684   229,341 

Trading assets

   587,323   290,889 

Money held in trust

   130,360   150,092 

Securities

   12,369,912   13,068,016 

Loans and bills discounted

   4,081,093   3,698,967 

Foreign exchanges

   87,154   81,370 

Other assets

   963,619   736,229 

Tangible fixed assets

   128,874   128,708 

Intangible fixed assets

   77,920   80,402 

Prepaid pension costs

   374,419   385,950 

Customers’ liabilities for acceptances and guarantees

   18,812   19,344 

Allowance for credit losses

   (1,462  (1,424
  

 

 

  

 

 

 

Total assets

           31,034,919           30,783,099 
  

 

 

  

 

 

 

 

38


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)  As of
March 31, 2020
  As of
September 30, 2020
 

Liabilities:

   

Deposits

           11,135,484           10,977,150 

Negotiable certificates of deposit

   2,203,473   1,938,063 

Call money

   —     1,276 

Payables under repurchase agreements

   5,511,235   5,286,293 

Commercial papers

   456,924   633,429 

Trading liabilities

   42,670   39,922 

Borrowed money

   1,664,830   1,693,580 

Foreign exchanges

   44,956   41,290 

Bonds payable

   418,160   366,670 

Due to trust accounts

   6,703,133   6,873,342 

Other liabilities

   549,934   433,294 

Reserve for bonuses

   4,763   4,581 

Reserve for bonuses to directors

   104   34 

Reserve for stocks payment

   3,765   2,982 

Reserve for retirement benefits

   757   615 

Reserve for contingent losses

   15,470   15,004 

Deferred tax liabilities

   214,601   268,717 

Deferred tax liabilities for land revaluation

   4,232   4,104 

Acceptances and guarantees

   18,812   19,344 
  

 

 

  

 

 

 

Total liabilities

   28,993,311   28,599,698 
  

 

 

  

 

 

 

Net assets:

   

Capital stock

   324,279   324,279 

Capital surplus

   455,970   455,970 

Capital reserve

   250,619   250,619 

Other capital surplus

   205,351   205,351 

Retained earnings

   1,152,423   1,174,554 

Revenue reserve

   73,714   73,714 

Other retained earnings

   1,078,709   1,100,840 

Funds for retirement benefits

   710   710 

Other reserve

   138,495   138,495 

Earned surplus brought forward

   939,504   961,635 

Treasury stock

   (299,999  (299,999
  

 

 

  

 

 

 

Total shareholders’ equity

   1,632,673   1,654,804 
  

 

 

  

 

 

 

Net unrealized gains (losses) on available-for-sale securities

   519,790   628,918 

Net deferred gains (losses) on hedging instruments

   (110,579  (99,756

Land revaluation excess

   (276  (565
  

 

 

  

 

 

 

Total valuation and translation adjustments

   408,934   528,597 
  

 

 

  

 

 

 

Total net assets

   2,041,608   2,183,401 
  

 

 

  

 

 

 

Total liabilities and net assets

   31,034,919   30,783,099 
  

 

 

  

 

 

 

 

39


Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated

 

(2)

Non-consolidated Statements of Income

 

(in millions of yen)  For the six months
ended
September 30, 2019
   For the six months
ended
September 30, 2020
 

Ordinary income

                345,515                 254,262 

Trust fees

   51,740    57,740 

Interest income

   187,669    106,399 

Interest on loans and bills discounted

   22,168    11,567 

Interest and dividends on securities

   129,849    84,335 

Fees and commissions

   60,948    58,465 

Trading income

   7,088    2,072 

Other operating income

   21,025    14,206 

Other ordinary income

   17,044    15,377 

Ordinary expenses

   272,937    198,794 

Interest expenses

   128,554    39,624 

Interest on deposits

   16,179    3,856 

Fees and commissions

   17,496    18,547 

Other operating expenses

   14,695    19,854 

General and administrative expenses

   93,804    102,743 

Other ordinary expenses

   18,386    18,024 
  

 

 

   

 

 

 

Ordinary profits

   72,578    55,468 
  

 

 

   

 

 

 

Extraordinary gains

   2,500    416 

Extraordinary losses

   2,047    3,333 
  

 

 

   

 

 

 

Income before income taxes

   73,031    52,550 
  

 

 

   

 

 

 

Income taxes - current

   5,322    8,975 

Income taxes - deferred

   8,509    2,300 
  

 

 

   

 

 

 

Total taxes

   13,832    11,275 
  

 

 

   

 

 

 

Net income

   59,199    41,275 
  

 

 

   

 

 

 

 

40


Mitsubishi UFJ Financial Group, Inc.

 

TB 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, 2020
  As of
September 30, 2020
 

Assets:

   

Loans and bills discounted

   359,832   322,404 

Securities

           57,931,822           56,881,832 

Beneficiary rights to the trust

   87,938,640   89,622,247 

Securities held in custody accounts

   3,798,591   4,327,773 

Monetary claims

   22,272,297   27,067,276 

Tangible fixed assets

   15,875,747   16,433,769 

Intangible fixed assets

   135,543   136,464 

Other claims

   3,759,125   3,234,237 

Call loans

   1,147,427   737,565 

Due from banking account

   8,980,934   8,964,556 

Cash and due from banks

   5,284,528   5,661,007 
  

 

 

  

 

 

 

Total

   207,484,491   213,389,134 
  

 

 

  

 

 

 

Liabilities:

   

Money trusts

   25,711,403   25,355,249 

Pension trusts

   11,700,334   11,658,805 

Property formation benefit trusts

   6,842   6,758 

Investment trusts

   92,086,729   93,918,176 

Money entrusted other than money trusts

   4,939,720   5,080,745 

Securities trusts

   6,631,349   6,621,081 

Monetary claim trusts

   20,301,045   25,220,448 

Equipment trusts

   90,563   125,558 

Land and fixtures trusts

   42,300    42,237  

Composite trusts

   45,974,200   45,360,074 
  

 

 

  

 

 

 

Total

   207,484,491   213,389,134 
  

 

 

  

 

 

 

 

Note:

 1. The table shown above includes master trust assets under the service-shared co-trusteeship between TB and The Master Trust Bank of Japan, Ltd.
 2. Trust assets and liabilities under a declaration of trust excluded from above table are 850,748 millions of yen as of March 31, 2020 and 488,048 millions of yen as of September 30, 2020.

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, 2020
  As of
September 30, 2020
 

Assets:

   

Loans and bills discounted

   12,285   7,390 

Securities

   59,190   —   

Other

             6,673,143              6,955,179  
  

 

 

  

 

 

 

Total

   6,744,620   6,962,570 
  

 

 

  

 

 

 

Liabilities:

   

Principal

   6,744,156   6,962,362 

Allowance for bad debts

   36   22 

Other

   426   185 
  

 

 

  

 

 

 

Total

   6,744,620   6,962,570 
  

 

 

  

 

 

 

 

41


Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated

 

(4)

Major Items

 

(in millions of yen)  As of
March 31, 2020
  As of
September 30, 2020
 

Total funds

   50,757,539   49,936,028 
  

 

 

  

 

 

 

Deposits

   11,135,484   10,977,150 

Negotiable certificates of deposit

   2,203,473   1,938,063 

Money trusts

           25,711,403            25,355,249  

Pension trusts

   11,700,334   11,658,805 

Property formation benefit trusts

   6,842   6,758 
  

 

 

  

 

 

 

Loans and bills discounted

   4,440,926   4,021,372 
  

 

 

  

 

 

 

Banking account

   4,081,093   3,698,967 

Trust account

   359,832   322,404 
  

 

 

  

 

 

 

Investment securities

   70,301,735   69,949,849 
  

 

 

  

 

 

 

 

Note:

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

 

42