Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

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

the Securities Exchange Act of 1934

For the month of February 2015

Commission File No. 000-54189

 

 

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

 

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

Tokyo 100-8330, Japan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or

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

Form 20-F      X                Form 40-F              

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

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

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

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

 

 

 


SIGNATURES

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

Date: February 3, 2015

 

Mitsubishi UFJ Financial Group, Inc.
By:  

/s/ Akira Takeda

Name:   Akira Takeda
Title:   Chief Manager, General Affairs
  Corporate Administration Division


 

LOGO

Consolidated Summary Report

<under Japanese GAAP>

for the nine months ended December 31, 2014

February 3, 2015

 

Company name:

   Mitsubishi UFJ Financial Group, Inc.    Stock exchange listings:    Tokyo, Nagoya, New York

Code number:

   8306    URL    http://www.mufg.jp/   

Representative:

   Nobuyuki Hirano, President & CEO      

For inquiry:

   Hiroshi Fukunaga, General Manager - Financial Planning Division / Financial Accounting Office
   TEL (03) 3240-3110      

Quarterly securities report issuing date:

   February 16, 2015    Dividend payment date:        -

Trading accounts:

   Established      

Supplemental information for quarterly financial statements:

   Available   

Quarterly investor meeting presentation:

   None   

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

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

(1) Results of Operations

 

     (% represents the change from the same period in the previous fiscal year)  
     Ordinary Income      Ordinary Profits      Net Income  
Nine months ended    million yen      %      million yen      %      million yen      %  

December 31, 2014

     4,260,328         11.7        1,484,363         17.8        926,971         18.0  

December 31, 2013

     3,812,880        10.9        1,259,669        34.5        785,422         47.5  

 

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

 

     Net Income
per Common Stock
     Diluted Net Income
per Common Stock
 
Nine months ended    yen      yen  

December 31, 2014

     65.50        65.20  

December 31, 2013

     54.84        54.66  

(2) Financial Conditions

 

     Total Assets      Total Net Assets      Net Assets Attributable to
MUFG Shareholders to
Total Assets (*)
 
As of    million yen      million yen      %  

December 31, 2014

     279,178,212        16,317,295        5.1  

March 31, 2014

     258,131,946        15,112,895        5.1  

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

 

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

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

2. Dividends on Common Stock

 

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

ended March 31, 2014

            7.00                9.00         16.00   

ending March 31, 2015

            9.00                ——           ——     

ending March 31, 2015 (Forecast)

     ——         ——           ——         9.00         18.00   

 

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

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

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

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


LOGO Notes

 

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

 

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

 

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

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

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

(C)  Changes in accounting estimates: No

(D)  Restatements: No

 

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

 

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

 

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

*Disclosure regarding the execution of the quarterly review process

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

*Notes for using forecasted information etc.

 

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

 

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


Mitsubishi UFJ Financial Group, Inc.

(Appendix)

Contents of Appendix

 

1. Information Regarding “Notes” in Consolidated Summary Report

   2

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

   2

 

2. Consolidated Financial Statements

   4

(1) Consolidated Balance Sheets

   4

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

   6

(3) Notes on Going-Concern Assumption

   8

(4) Notes for Material Changes in Shareholders’ Equity

   8

(5) Additional Information

   8

 

Supplemental Information:

“Selected Financial Information under Japanese GAAP for the Nine Months Ended December 31, 2014”

 

1


Mitsubishi UFJ Financial Group, Inc.

 

1. Information Regarding “Notes” in Consolidated Summary Report

 

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

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

(Accounting Standards regarding Retirement Benefits)

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

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

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

 

2


Mitsubishi UFJ Financial Group, Inc.

 

(Accounting Standards regarding Business Combinations)

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

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

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

 

3


Mitsubishi UFJ Financial Group, Inc.

 

2. Consolidated Financial Statements

(1) Consolidated Balance Sheets

 

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

Assets:

    

Cash and due from banks

     23,969,883        33,535,999   

Call loans and bills bought

     826,851        644,792   

Receivables under resale agreements

     7,237,125        6,766,288   

Receivables under securities borrowing transactions

     4,181,660        4,439,634   

Monetary claims bought

     3,972,145        4,681,560   

Trading assets

     19,055,354        21,076,374   

Money held in trust

     583,692        724,285   

Securities

     74,515,573        73,638,301   

Loans and bills discounted

     101,938,907        107,848,676   

Foreign exchanges

     2,040,406        2,296,527   

Other assets

     8,809,286        11,557,401   

Tangible fixed assets

     1,540,031        1,593,456   

Intangible fixed assets

     1,483,352        1,247,537   

Net defined benefit assets

     460,836        450,607   

Deferred tax assets

     130,654        86,188   

Customers’ liabilities for acceptances and guarantees

     8,324,668        9,445,303   

Allowance for credit losses

     (938,483     (854,723
  

 

 

   

 

 

 

Total assets

     258,131,946        279,178,212   
  

 

 

   

 

 

 

Liabilities:

    

Deposits

     144,760,294        148,616,087   

Negotiable certificates of deposit

     15,548,170        16,951,752   

Call money and bills sold

     3,465,414        4,745,448   

Payables under repurchase agreements

     21,626,590        21,244,521   

Payables under securities lending transactions

     5,534,643        8,559,930   

Commercial papers

     1,473,631        2,047,779   

Trading liabilities

     13,964,961        14,350,755   

Borrowed money

     10,828,601        13,164,312   

Foreign exchanges

     1,109,198        1,913,502   

Short-term bonds payable

     435,808        807,311   

Bonds payable

     7,165,577        7,833,208   

Due to trust accounts

     1,945,151        2,078,348   

Other liabilities

     5,965,086        9,712,352   

Reserve for bonuses

     78,987        41,934   

Reserve for bonuses to directors

     627        310   

Net defined benefit liabilities

     51,651        52,056   

Reserve for retirement benefits to directors

     1,201        1,011   

Reserve for loyalty award credits

     13,541        15,905   

Reserve for contingent losses

     247,351        179,381   

Reserves under special laws

     2,853        3,523   

Deferred tax liabilities

     320,014        942,325   

Deferred tax liabilities for land revaluation

     155,026        153,852   

Acceptances and guarantees

     8,324,668        9,445,303   
  

 

 

   

 

 

 

Total liabilities

     243,019,051        262,860,916   
  

 

 

   

 

 

 

 

4


Mitsubishi UFJ Financial Group, Inc.

 

 

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

Net assets:

    

Capital stock

     2,140,488        2,141,485   

Capital surplus

     2,174,384        1,439,513   

Retained earnings

     7,033,125        7,752,490   

Treasury stock

     (1,699     (101,727
  

 

 

   

 

 

 

Total shareholders’ equity

     11,346,299        11,231,761   
  

 

 

   

 

 

 

Net unrealized gains (losses) on other securities

     1,218,397        2,298,281   

Net deferred gains (losses) on hedging instruments

     8,295        118,764   

Land revaluation excess

     157,776        159,333   

Foreign currency translation adjustments

     407,229        537,178   

Remeasurements of defined benefit plans

     (81,937     (73,974
  

 

 

   

 

 

 

Total accumulated other comprehensive income

     1,709,760        3,039,583   
  

 

 

   

 

 

 

Subscription rights to shares

     8,732        8,082   

Minority interests

     2,048,101        2,037,868   
  

 

 

   

 

 

 

Total net assets

     15,112,895        16,317,295   
  

 

 

   

 

 

 

Total liabilities and net assets

     258,131,946        279,178,212   
  

 

 

   

 

 

 

 

5


Mitsubishi UFJ Financial Group, Inc.

 

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

Consolidated Statements of Income

 

(in millions of yen)    For the nine months
ended
December 31, 2013
     For the nine months
ended
December 31, 2014
 

Ordinary income

     3,812,880         4,260,328   

Interest income

     1,748,169         2,047,164   

Interest on loans and bills discounted

     1,180,721         1,342,778   

Interest and dividends on securities

     425,687         458,696   

Trust fees

     78,464         80,331   

Fees and commissions

     981,726         1,080,952   

Trading income

     252,236         252,093   

Other business income

     385,244         354,015   

Other ordinary income

     367,038         445,770   

Ordinary expenses

     2,553,211         2,775,965   

Interest expenses

     354,323         458,565   

Interest on deposits

     143,779         214,760   

Fees and commissions

     138,772         146,756   

Trading expenses

     1,665         —     

Other business expenses

     176,951         96,253   

General and administrative expenses

     1,712,771         1,917,061   

Other ordinary expenses

     168,726         157,329   
  

 

 

    

 

 

 

Ordinary profits

     1,259,669         1,484,363   
  

 

 

    

 

 

 

Extraordinary gains

     8,464         12,514   

Gains on disposition of fixed assets

     8,464         2,871   

Gains on change in equity

     —           9,643   

Extraordinary losses

     36,032         86,095   

Losses on disposition of fixed assets

     5,476         5,496   

Losses on impairment of fixed assets

     3,173         5,997   

Provision for reserve for contingent liabilities from financial instruments transactions

     673         669   

Settlement package

     24,537         37,097   

Losses on change in equity

     —           33,291   

Losses on sales of equity securities of subsidiaries

     2,170         3,542   
  

 

 

    

 

 

 

Income before income taxes and others

     1,232,100         1,410,782   
  

 

 

    

 

 

 

Income taxes—current

     275,476         306,759   

Income taxes—deferred

     52,224         76,465   
  

 

 

    

 

 

 

Total taxes

     327,700         383,225   
  

 

 

    

 

 

 

Income before minority interests

     904,400         1,027,556   
  

 

 

    

 

 

 

Minority interests

     118,977         100,585   
  

 

 

    

 

 

 

Net income

     785,422         926,971   
  

 

 

    

 

 

 

 

6


Mitsubishi UFJ Financial Group, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in millions of yen)    For the nine months
ended
December 31, 2013
    For the nine months
ended
December 31, 2014
 

Income before minority interests

     904,400        1,027,556   

Other comprehensive income

    

Net unrealized gains (losses) on other securities

     69,812        1,062,871   

Net deferred gains (losses) on hedging instruments

     (74,548     112,099   

Land revaluation excess

     (141     —     

Foreign currency translation adjustments

     234,210        163,705   

Pension liability adjustments of subsidiaries preparing financial statements under US GAAP

     (3,031     —     

Remeasurements of defined benefit plans

     —          7,480   

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

     92,590        (8,093
  

 

 

   

 

 

 

Total other comprehensive income

     318,892        1,338,062   
  

 

 

   

 

 

 

Comprehensive income

     1,223,293        2,365,619   
  

 

 

   

 

 

 

(Comprehensive income attributable to)

    

Comprehensive income attributable to owners of the parent

     1,102,669        2,255,609   

Comprehensive income attributable to minority interests

     120,623        110,010   

 

7


Mitsubishi UFJ Financial Group, Inc.

 

 

(3) Notes on Going-Concern Assumption

Not applicable

 

(4) Notes for Material Changes in Shareholders’ Equity

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

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

 

(5) Additional Information

(Adoption of Consolidated Taxation System)

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

 

8


 

 

Selected Financial Information

under Japanese GAAP

For the Nine Months Ended December 31, 2014

 

 

 

 

 

 

 

 

 

 

Mitsubishi UFJ Financial Group, Inc.

      LOGO         


Mitsubishi UFJ Financial Group, Inc.

[Contents]

 

1. Financial Results

  [ MUFG Consolidated ]*1[ BTMU and MUTB Combined ]*2*3*4       ——           1   
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     

2. Non Performing Loans Based on the Financial Reconstruction Law

  [ BTMU and MUTB Combined including Trust Account ]       ——           5   
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     
  [ MUTB Non-consolidated : Trust Account ]     

3. Securities

  [ MUFG Consolidated ]       ——           6   
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     

4. ROE

  [ MUFG Consolidated ]       ——           9   

5. Average Interest Rate Spread

  [ BTMU and MUTB Combined ]       ——           10   
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     

6. Loans and Deposits

  [ BTMU and MUTB Combined ]       ——           11   
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     

7. Statements of Trust Assets and Liabilities

  [ MUTB Non-consolidated ]       ——           12   

(Reference)

      

Exposure to “Securitized Products and Related Investments”

      ——           13   

 

(*1) “MUFG” means Mitsubishi UFJ Financial Group, Inc.
(*2) “BTMU” means The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(*3) “MUTB” means Mitsubishi UFJ Trust and Banking Corporation.
(*4) “BTMU and MUTB Combined” means simple sum of “BTMU” and “MUTB” without consolidation processes.


Mitsubishi UFJ Financial Group, Inc.

1. Financial Results

MUFG Consolidated

 

     (in billions of yen)  
     For the nine months ended     Increase
(Decrease)
(A) - (B)
 
     December 31, 2014
(A)
    December 31, 2013
(B)
   

Gross profits

     3,113.0        2,774.2        338.8   

Gross profits before credit costs for trust accounts

     3,112.6        2,774.6        337.9   

Net interest income

     1,588.7        1,393.9        194.7   

Trust fees

     80.3        78.4        1.8   

Credit costs for trust accounts (1)

     0.4        (0.4     0.9   

Net fees and commissions

     934.1        842.9        91.2   

Net trading profits

     252.0        250.5        1.5   

Net other business profits

     257.7        208.2        49.4   

Net gains (losses) on debt securities

     129.8        124.7        5.1   

General and administrative expenses

     1,894.2        1,686.0        208.2   

Amortization of goodwill

     12.2        26.0        (13.8

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

     1,230.6        1,114.7        115.8   

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

     1,218.3        1,088.6        129.7   

Provision for general allowance for credit losses (2)

     —          —          —     

Net business profits*

     1,218.8        1,088.2        130.6   

Net non-recurring gains (losses)

     265.5        171.4        94.0   

Credit costs (3)

     (101.8     (100.1     (1.6

Losses on loan write-offs

     (87.1     (92.5     5.3   

Provision for specific allowance for credit losses

     —          —          —     

Other credit costs

     (14.7     (7.6     (7.0

Reversal of allowance for credit losses (4)

     84.4        91.7        (7.2

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

     2.1        2.6        (0.4

Gains on loans written-off (6)

     45.6        47.0        (1.4

Net gains (losses) on equity securities

     78.9        62.7        16.2   

Gains on sales of equity securities

     93.2        82.7        10.4   

Losses on sales of equity securities

     (10.6     (9.6     (0.9

Losses on write-down of equity securities

     (3.6     (10.3     6.7   

Profits (losses) from investments in affiliates

     161.5        86.5        75.0   

Other non-recurring gains (losses)

     (5.4     (19.0     13.5   
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     1,484.3        1,259.6        224.6   
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (73.5     (27.5     (46.0

Net gains (losses) on change in equity

     (23.6     —          (23.6

Settlement package

     (37.0     (24.5     (12.5

Income before income taxes and others

     1,410.7        1,232.1        178.6   

Income taxes-current

     306.7        275.4        31.2   

Income taxes-deferred

     76.4        52.2        24.2   

Total taxes

     383.2        327.7        55.5   

Income before minority interests

     1,027.5        904.4        123.1   

Minority interests

     100.5        118.9        (18.3
  

 

 

   

 

 

   

 

 

 

Net income

     926.9        785.4        141.5   
  

 

 

   

 

 

   

 

 

 

 

Note:

*   Net business profits = Banking subsidiaries’ net business profits + Other consolidated entities’ gross profits - Other consolidated entities’ general and administrative expenses - Other consolidated entities’ provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions

      

 

(Reference)

      

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

     30.9        40.7        (9.8

 

1


Mitsubishi UFJ Financial Group, Inc.

BTMU and MUTB Combined

 

     (in billions of yen)  
     For the nine months ended    

 

Increase
(Decrease)
(A) - (B)

 
     December 31, 2014
(A)
    December 31, 2013
(B)
   

Gross profits

     1,871.7        1,699.1        172.5   

Gross profits before credit costs for trust accounts

     1,871.2        1,699.6        171.6   

Net interest income

     1,064.5        981.3        83.2   

Trust fees

     62.0        57.6        4.3   

Credit costs for trust accounts (1)

     0.4        (0.4     0.9   

Net fees and commissions

     434.4        407.2        27.2   

Net trading profits

     112.1        65.4        46.6   

Net other business profits

     198.4        187.5        10.9   

Net gains (losses) on debt securities

     127.6        114.0        13.5   

General and administrative expenses

     1,024.4        962.0        62.3   

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

     846.7        737.5        109.2   

Provision for general allowance for credit losses (2)

     —          —          —     

Net business profits

     847.2        737.0        110.1   

Net non-recurring gains (losses)

     135.1        86.6        48.4   

Credit costs (3)

     (36.1     (47.6     11.4   

Losses on loan write-offs

     (20.6     (40.2     19.5   

Provision for specific allowance for credit losses

     —          —          —     

Other credit costs

     (15.5     (7.4     (8.1

Reversal of allowance for credit losses (4)

     109.3        83.0        26.2   

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

     5.7        4.9        0.8   

Gains on loans written-off (6)

     13.4        25.9        (12.4

Net gains (losses) on equity securities

     52.3        37.4        14.8   

Gains on sales of equity securities

     67.3        70.9        (3.5

Losses on sales of equity securities

     (9.2     (7.5     (1.7

Losses on write-down of equity securities

     (5.7     (25.9     20.2   

Other non-recurring gains (losses)

     (9.5     (17.0     7.5   
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     982.4        823.7        158.6   
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (44.8     (22.3     (22.4

Net gains (losses) on disposition of fixed assets

     (2.5     0.2        (2.8

Losses on impairment of fixed assets

     (5.2     (2.1     (3.0

Settlement package

     (37.0     (24.5     (12.5

Income before income taxes

     937.5        801.3        136.1   

Income taxes-current

     258.1        229.9        28.1   

Income taxes-deferred

     31.3        51.7        (20.4

Total taxes

     289.4        281.7        7.7   
  

 

 

   

 

 

   

 

 

 

Net income

     648.0        519.6        128.4   
  

 

 

   

 

 

   

 

 

 

(Reference)

      

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

     92.8        65.8        26.9   

 

2


Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

 

     (in billions of yen)  
     For the nine months ended     Increase
(Decrease)
(A) - (B)
 
     December 31, 2014
(A)
    December 31, 2013
(B)
   

Gross profits

     1,601.2        1,444.7        156.4   

Net interest income

     932.7        862.4        70.2   

Net fees and commissions

     368.4        341.4        27.0   

Net trading profits

     85.4        64.7        20.6   

Net other business profits

     214.6        176.0        38.5   

Net gains (losses) on debt securities

     131.7        108.3        23.3   

General and administrative expenses

     886.2        827.4        58.8   

Amortization of goodwill

     0.2        0.2        0.0   

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

     715.2        617.5        97.7   

Net business profits before provision for general allowance for credit losses

     715.0        617.3        97.6   

Provision for general allowance for credit losses (1)

     —          —          —     

Net business profits

     715.0        617.3        97.6   

Net non-recurring gains (losses)

     104.4        68.9        35.4   

Credit costs (2)

     (35.8     (46.6     10.8   

Losses on loan write-offs

     (20.6     (39.2     18.5   

Provision for specific allowance for credit losses

     —          —          —     

Other credit costs

     (15.1     (7.4     (7.7

Reversal of allowance for credit losses (3)

     96.1        64.8        31.3   

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

     5.1        3.7        1.3   

Gains on loans written-off (5)

     12.8        25.5        (12.6

Net gains (losses) on equity securities

     41.7        34.6        7.0   

Gains on sales of equity securities

     54.4        64.5        (10.0

Losses on sales of equity securities

     (7.3     (4.3     (3.0

Losses on write-down of equity securities

     (5.3     (25.5     20.1   

Other non-recurring gains (losses)

     (15.6     (13.2     (2.4
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     819.5        686.3        133.1   
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (38.6     (21.5     (17.0

Net gains (losses) on disposition of fixed assets

     (0.9     0.6        (1.5

Losses on impairment of fixed assets

     (0.6     (1.7     1.1   

Settlement package

     (37.0     (24.5     (12.5

Income before income taxes

     780.8        664.7        116.1   

Income taxes-current

     214.3        203.4        10.9   

Income taxes-deferred

     27.0        37.2        (10.1

Total taxes

     241.4        240.6        0.7   
  

 

 

   

 

 

   

 

 

 

Net income

     539.4        424.0        115.3   
  

 

 

   

 

 

   

 

 

 

(Reference)

      

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

     78.3        47.4        30.8   

 

3


Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

 

     (in billions of yen)  
     For the nine months ended     Increase
(Decrease)
(A) - (B)
 
     December 31, 2014
(A)
    December 31, 2013
(B)
   

Gross profits

     270.4        254.3        16.0   

Gross profits before credit costs for trust accounts

     269.9        254.8        15.1   

Trust fees

     62.0        57.6        4.3   

Credit costs for trust accounts (1)

     0.4        (0.4     0.9   

Net interest income

     131.8        118.8        13.0   

Net fees and commissions

     66.0        65.8        0.2   

Net trading profits

     26.6        0.6        26.0   

Net other business profits

     (16.1     11.4        (27.5

Net gains (losses) on debt securities

     (4.0     5.6        (9.7

General and administrative expenses

     138.2        134.6        3.5   

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

     131.7        120.1        11.5   

Provision for general allowance for credit losses (2)

     —          —          —     

Net business profits

     132.2        119.7        12.4   

Net non-recurring gains (losses)

     30.6        17.7        12.9   

Credit costs (3)

     (0.3     (0.9     0.6   

Losses on loan write-offs

     (0.0     (0.9     0.9   

Provision for specific allowance for credit losses

     —          —          —     

Other credit costs

     (0.3     0.0        (0.3

Reversal of allowance for credit losses (4)

     13.1        18.2        (5.0

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

     0.5        1.1        (0.5

Gains on loans written-off (6)

     0.5        0.3        0.2   

Net gains (losses) on equity securities

     10.6        2.8        7.8   

Gains on sales of equity securities

     12.9        6.4        6.5   

Losses on sales of equity securities

     (1.8     (3.1     1.2   

Losses on write-down of equity securities

     (0.4     (0.4     0.0   

Other non-recurring gains (losses)

     6.0        (3.8     9.9   
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     162.9        137.4        25.4   
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (6.2     (0.7     (5.4

Net gains (losses) on disposition of fixed assets

     (1.6     (0.4     (1.2

Losses on impairment of fixed assets

     (4.5     (0.3     (4.2

Income before income taxes

     156.6        136.6        20.0   

Income taxes-current

     43.7        26.5        17.1   

Income taxes-deferred

     4.3        14.5        (10.2

Total taxes

     48.0        41.0        6.9   
  

 

 

   

 

 

   

 

 

 

Net income

     108.6        95.5        13.0   
  

 

 

   

 

 

   

 

 

 
(Reference)       

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

     14.4        18.3        (3.8

 

4


Mitsubishi UFJ Financial Group, Inc.

2. Non Performing Loans Based on the Financial Reconstruction Law

BTMU and MUTB Combined including Trust Account

 

     (in billions of yen)  
     As of
December 31, 2014
    As of
March 31, 2014
 

Bankrupt or De facto Bankrupt

     85.4        94.0   

Doubtful

     630.8        848.3   

Special Attention

     456.6        475.7   
  

 

 

   

 

 

 

Non Performing Loans

     1,173.0        1,418.1   
  

 

 

   

 

 

 

Total loans

     106,006.0        100,476.7   
  

 

 

   

 

 

 

Non Performing Loans / Total loans

     1.10     1.41

BTMU Non-consolidated

 

    
     (in billions of yen)  
     As of
December 31, 2014
    As of
March 31, 2014
 

Bankrupt or De facto Bankrupt

     83.5        91.5   

Doubtful

     611.8        822.4   

Special Attention

     442.7        458.2   
  

 

 

   

 

 

 

Non Performing Loans

     1,138.1        1,372.2   
  

 

 

   

 

 

 

Total loans

     93,131.4        88,278.5   
  

 

 

   

 

 

 

Non Performing Loans / Total loans

     1.22     1.55

MUTB Non-consolidated

 

    
     (in billions of yen)  
     As of
December 31, 2014
    As of
March 31, 2014
 

Bankrupt or De facto Bankrupt

     1.8        2.4   

Doubtful

     18.9        25.1   

Special Attention

     13.1        16.6   
  

 

 

   

 

 

 

Non Performing Loans

     33.9        44.2   
  

 

 

   

 

 

 

Total loans

     12,846.6        12,166.3   
  

 

 

   

 

 

 

Non Performing Loans / Total loans

     0.26     0.36

MUTB Non-consolidated: Trust Account

 

    
     (in billions of yen)  
     As of
December 31, 2014
    As of
March 31, 2014
 

Bankrupt or De facto Bankrupt

     0.0        0.0   

Doubtful

     0.1        0.7   

Special Attention

     0.7        0.8   
  

 

 

   

 

 

 

Non Performing Loans

     0.9        1.6   
  

 

 

   

 

 

 

Total loans

     27.9        31.7   
  

 

 

   

 

 

 

Non Performing Loans / Total loans

     3.30     5.05

 

5


Mitsubishi UFJ Financial Group, Inc.

3. Securities

MUFG Consolidated

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

 

     (in billions of yen)  
     As of December 31, 2014      As of March 31, 2014  
     Amount on
consolidated
balance sheet
     Differences      Amount on
consolidated
balance sheet
     Differences  

Debt securities being held to maturity

     3,982.8         53.4         2,778.6         27.0   
     (in billions of yen)  
     As of December 31, 2014      As of March 31, 2014  
     Amount on
consolidated
balance sheet
     Differences      Amount on
consolidated
balance sheet
     Differences  

Other securities

     69,690.1         3,487.7         71,722.0         1,869.9   

Domestic equity securities

     5,244.1         2,441.3         4,384.1         1,559.6   

Domestic bonds

     39,792.4         431.6         43,123.6         222.8   

Other

     24,653.6         614.7         24,214.1         87.3   

Foreign equity securities

     213.4         78.0         217.5         81.6   

Foreign bonds

     20,931.4         375.5         20,599.8         (53.0

Other

     3,508.7         161.1         3,396.7         58.7   

 

6


Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

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

 

     (in billions of yen)  
     As of December 31, 2014      As of March 31, 2014  
     Amount on
balance sheet
     Differences      Amount on
balance sheet
     Differences  

Debt securities being held to maturity

     2,895.6         48.6         1,750.7         33.5   

Stocks of subsidiaries and affiliates

     678.5         218.6         676.7         (6.2
     (in billions of yen)  
     As of December 31, 2014      As of March 31, 2014  
     Amount on
balance sheet
     Differences      Amount on
balance sheet
     Differences  

Other securities

     50,060.7         2,598.2         54,117.0         1,367.1   

Domestic equity securities

     4,294.8         1,903.8         3,548.4         1,144.0   

Domestic bonds

     33,083.1         356.1         36,175.4         171.2   

Other

     12,682.6         338.1         14,393.1         51.7   

Foreign equity securities

     195.3         70.2         197.4         77.2   

Foreign bonds

     10,087.2         206.4         11,594.0         (50.0

Other

     2,400.0         61.4         2,601.6         24.6   

 

7


Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

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

 

     (in billions of yen)  
         As of December 31, 2014          As of March 31, 2014  
     Amount on
balance sheet
     Differences      Amount on
balance sheet
     Differences  

Debt securities being held to maturity

     154.9         0.2         220.0         0.8   

Stocks of subsidiaries and affiliates

     57.7         131.6         57.7         100.1   
     (in billions of yen)  
         As of December 31, 2014          As of March 31, 2014  
     Amount on
balance sheet
     Differences      Amount on
balance sheet
     Differences  

Other securities

     16,453.0         819.6         14,521.2         452.3   

Domestic equity securities

     987.9         460.0         856.8         322.4   

Domestic bonds

     6,579.7         74.4         6,717.7         42.6   

Other

     8,885.4         285.1         6,946.6         87.2   

Foreign equity securities

     0.0         0.0         0.3         0.1   

Foreign bonds

     8,101.7         189.3         6,469.3         52.6   

Other

     783.6         95.7         476.9         34.5   

 

8


Mitsubishi UFJ Financial Group, Inc.

4. ROE

MUFG Consolidated

 

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

ROE

     10.68         9.85   

 

Note:

     
ROE is computed as follows:   
(Net income × 4/3) - Equivalent of annual dividends on nonconvertible preferred stocks      ×100   

{(Total shareholders’ equity at the beginning of the period - Number of nonconvertible preferred stocks at the beginning of the period × Issue price + Foreign currency translation adjustments at the beginning of the period) + (Total shareholders’ equity at the end of the period - Number of nonconvertible preferred stocks at the end of the period × Issue price + Foreign currency translation adjustments at the end of the period)} / 2

  
  
  
  
  
  

 

9


Mitsubishi UFJ Financial Group, Inc.

5. Average Interest Rate Spread

BTMU and MUTB Combined

(Domestic business segment)

 

     (percentage per annum)  
      For the nine months
ended

December 31, 2014
     For the nine months
ended

December 31, 2013
 

Average interest rate on loans and bills discounted

     0.99         1.08   

Average interest rate on deposits and NCD

     0.04         0.05   

Interest rate spread

     0.94         1.02   

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

   (percentage per annum)  

Average interest rate on loans and bills discounted

     1.13         1.23   

Interest rate spread

     1.08         1.17   

BTMU Non-consolidated

(Domestic business segment)

 

     (percentage per annum)  
      For the nine months
ended

December 31, 2014
     For the nine months
ended

December 31, 2013
 

Average interest rate on loans and bills discounted

     1.03         1.12   

Average interest rate on deposits and NCD

     0.03         0.04   

Interest rate spread

     1.00         1.08   

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

   (percentage per annum)  

Average interest rate on loans and bills discounted

     1.21         1.31   

Interest rate spread

     1.17         1.26   

MUTB Non-consolidated

(Domestic business segment)

 

     (percentage per annum)  
      For the nine months
ended

December 31, 2014
     For the nine months
ended

December 31, 2013
 

Average interest rate on loans and bills discounted

     0.76         0.85   

Average interest rate on deposits and NCD

     0.13         0.16   

Interest rate spread

     0.62         0.69   

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

   (percentage per annum)  

Average interest rate on loans and bills discounted

     0.76         0.85   

Interest rate spread

     0.62         0.69   

 

10


Mitsubishi UFJ Financial Group, Inc.

6. Loans and Deposits

BTMU and MUTB Combined

 

      (in billions of yen)  
      As of
December 31, 2014
     As of
March 31, 2014
 

Deposits (ending balance)

     134,684.3         132,121.6   

Deposits (average balance)

     131,856.3         126,269.6   

Loans (ending balance)

     95,716.9         91,404.1   

Loans (average balance)

     95,259.5         88,989.6   
     (in billions of yen)  
      As of
December 31, 2014
     As of
March 31, 2014
 

Domestic deposits (ending balance)*

     115,704.5         114,591.8   

Individuals

     70,918.1         68,867.2   

Note:

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

BTMU Non-consolidated

 

      (in billions of yen)  
      As of
December 31, 2014
     As of
March 31, 2014
 

Deposits (ending balance)

     122,101.6         119,636.5   

Deposits (average balance)

     119,246.6         113,892.7   

Loans (ending balance)

     83,203.0         79,495.0   

Loans (average balance)

     83,210.9         77,602.6   
     (in billions of yen)  
      As of
December 31, 2014
     As of
March 31, 2014
 

Domestic deposits (ending balance)*

     104,324.8         103,251.2   

Individuals

     62,630.5         60,568.4   

Note:

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

MUTB Non-consolidated

 

      (in billions of yen)  
      As of
December 31, 2014
     As of
March 31, 2014
 

Deposits (ending balance)

     12,582.7         12,485.1   

Deposits (average balance)

     12,609.6         12,376.8   

Loans (ending balance)

     12,513.8         11,909.1   

Loans (average balance)

     12,048.5         11,386.9   
     (in billions of yen)  
      As of
December 31, 2014
     As of
March 31, 2014
 

Domestic deposits (ending balance)*

     11,379.6         11,340.6   

Individuals

     8,287.5         8,298.8   

 

Note:

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

 

11


Mitsubishi UFJ Financial Group, Inc.

7. Statements of Trust Assets and Liabilities

MUTB Non-consolidated

Including trust assets under service-shared co-trusteeship

 

(in billions of yen)    As of
March 31, 2014
     As of
December 31, 2014
 

Assets:

     

Loans and bills discounted

     99.6         108.9   

Securities

     55,572.6         55,827.5   

Beneficiary rights to the trust

     43,107.5         46,222.6   

Securities held in custody accounts

     2,979.9         3,384.2   

Monetary claims

     11,307.5         10,798.6   

Tangible fixed assets

     9,804.3         10,621.1   

Intangible fixed assets

     206.9         188.5   

Other claims

     5,202.5         5,012.6   

Call loans

     1,988.3         2,416.1   

Due from banking account

     1,945.1         2,078.3   

Cash and due from banks

     2,402.5         3,039.8   
  

 

 

    

 

 

 

Total

     134,617.1         139,698.7   
  

 

 

    

 

 

 

Liabilities:

     

Money trusts

     21,176.2         20,451.6   

Pension trusts

     13,945.1         15,088.7   

Property formation benefit trusts

     9.8         8.3   

Investment trusts

     42,523.2         45,678.8   

Money entrusted other than money trusts

     2,770.5         3,422.6   

Securities trusts

     5,070.0         5,074.5   

Monetary claim trusts

     11,298.1         10,548.5   

Equipment trusts

     34.9         40.4   

Land and fixtures trusts

     83.0         83.1   

Composite trusts

     37,705.9         39,301.8   
  

 

 

    

 

 

 

Total

     134,617.1         139,698.7   
  

 

 

    

 

 

 

 

Note:

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

 

12


Mitsubishi UFJ Financial Group, Inc.

(Reference)

Exposure to “Securitized Products and Related Investments”

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

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

 

   

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

 

   

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

 

   

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

 

            (¥bn)  
                                    of which securities being
held to maturity2
 
          Balance1      Change from
end of
March 2014
    Net unrealized
gains (losses)
    Change from
end of
March 2014
     Balance      Net unrealized
gains (losses)
 

1

  

RMBS

     23         (1     4        1         0         0   

2

  

Sub-prime RMBS

     0         0        0        0         0         0   

3

  

CMBS

     423         40        (4     9         219         (4

4

  

CLOs

     2,889         418        (14     6         1,991         (6

5

  

Other securitized products (card, etc.)

     51         (2     2        1         21         0   

6

  

CDOs

     0         0        0        0         0         0   

7

  

Sub-prime ABS CDOs

     0         0        0        0         0         0   

8

  

SIV

     0         0        0        0         0         0   
     

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

9

  

Total

     3,385         455        (12     17         2,231         (11
     

 

 

    

 

 

   

 

 

   

 

 

    

 

 

    

 

 

 

 

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

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

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

[Distribution by rating]

 

   

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

 

   

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

 

          (¥bn)  
          AAA     AA     A     BBB     BB or
lower
    Unrated     Total  

10

   RMBS      2        3        1        12        6        0        23   

11

  

Sub-prime RMBS

     0        0        0        0        0        0        0   

12

   CMBS      173        250        0        0        0        0        423   

13

   CLOs      2,723        110        54        2        0        0        2,889   

14

   Other securitized products (card, etc.)      22        24        2        0        0        1        51   

15

   CDOs      0        0        0        0        0        0        0   

16

  

Sub-prime ABS CDOs

     0        0        0        0        0        0        0   

17

   SIV      0        0        0        0        0        0        0   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

18

   Total      2,920        387        57        14        6        1        3,385   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

19

   Percentage of total      86     11     2     0     0     0     100

20

   Percentage of total (End of March 2014)      80     18     1     1     0     0     100

 

13


Mitsubishi UFJ Financial Group, Inc.

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

 

   

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

 

   

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

 

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

Balance on a booking basis

     9         104         0         258         372         95   

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

[Special Purpose Entities (SPEs)]

 

   

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

 

   

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

 

   

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

End

 

 

<Terminology>

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

 

 

 

 

14