Investor Relations > FAQs:Mitsubishi UFJ Financial Group

Consolidated gross profits increased by 327.5 billion yen from the previous fiscal year to 3,600.4 billion yen, mainly due to consolidation of ACOM, which became a consolidated subsidiary at the end of December 2008, as well as increase in trading  income and domestic and overseas lending income. General and administrative expenses were flat, but excluding effect of the consolidation of ACOM, they decreased by 68.6 billion yen from the previous fiscal year due to an intensive corporate-wide cost reduction as well as the effect of the system integration. As a result, consolidated net business profits were 1,515.5 billion yen, up by 326.3 billion yen from the previous fiscal year.
Total credit costs for the fiscal year ended March 31, 2010 increased by 216.7 billion yen from the previous fiscal year to 825.2 billion yen, mainly due to an increase in credit costs from our subsidiaries other than BTMU and MUTB, as well as the consolidation of ACOM. Combined credit costs of BTMU and MUTB were virtually unchanged from the previous fiscal year.
Net gains on equity securities, on the other hand, improved significantly by 441.2 billion yen due to higher stock prices. As a result, consolidated net income was 388.7 billion yen, up by 645.6 billion yen compared to the previous fiscal year.

Loans at the end of March 2010 were 84.8 trillion yen, 3.1 trillion yen lower than at the end of September 2009, mainly due to exclusion of The Senshu Bank from consolidation and decrease in overseas loans as capital markets for corporate bonds and equities normalized. Deposits increased by 1.8 trillion yen compared to the end of September 2009 to 123.8 trillion yen, due to a large increase in deposits at domestic branches.

The total balance of FRL (Financial Reconstruction Law) disclosed loans (the sum of BTMU and MUTB) were 1,348.7 billion yen at the end of March 2010, up 102.8 billion yen from the end of September 2009. The NPL ratio edged up by 0.12 percentage points to 1.50% from the end of September 2009, but it still remained at a low level.

MUFG's consolidated BIS capital ratio increased to 14.87%, up by 1.57 percentage points, compared to the end of September 2009. The Tier 1 ratio also rose by 1.50 percentage points to 10.63%. The main reasons for the increase were the issuance of new shares, and decrease in risk-adjusted assets due to decrease in loans and deconsolidation of The Senshu Bank.
The "Core Tier 1" ratio, calculated by dividing "Core Tier 1" capital (Tier 1 capital after deducting preferred stock and preferred securities) by risk-adjusted assets, was 8.28%, a 1.45 percentage points improvement from the end of September 2009.

We are targeting consolidated net income of 400 billion yen for the year to March 2011. Regarding the dividend on common shares, we forecast to pay a 12 yen annual dividend (6 yen interim dividend, 6 yen year-end dividend) in fiscal 2010.