Investor Relations > FAQs:Mitsubishi UFJ Financial Group

Consolidated gross profits were 3,522.5 billion yen, down 77.8 billion yen from the previous fiscal year. Markets-related income increased, including net gains on debt securities, but this was offset by lower interest income as interest rates declined and lower income from consumer finance businesses stemming from revisions to the Money Lending Control Act. General and administrative expenses declined by 63.9 billion yen as a result of our continuing group-wide initiative to reduce costs. As a result, consolidated net business profits were 1,501.6 billion yen, broadly level with the previous fiscal year. 
With a decrease in the number of corporate bankruptcies, total credit costs improved significantly to 354.1 billion yen, a decline of 406.0 billion yen, mainly due to declines in provisions for credit losses and losses on loan write-offs. On the other hand, net gains (losses) on equity securities declined by 89.6 billion yen recording a loss of 57.1 billion yen, primarily due to reduced gains on sales of equity securities. Other non-recurring gains and losses worsened by 205.3 billion yen to a loss of 385.1 billion yen, mainly as a result of additional expenses recorded at consumer finance subsidiaries due to a large increase in provisions for interest repayments.
As a result, compared to the previous fiscal year, consolidated ordinary profits increased by 100.7 billion yen to 646.4 billion yen and consolidated net income increased by 194.3 billion yen to 583.0 billion yen.

Loans at the end of March 2011 were 79.9 trillion yen, 0.7 trillion yen higher than at the end of September 2010, mainly due to an increase in overseas lending. Deposits increased 1.8 trillion yen from the end of September 2010 to 124.1 trillion yen due to increases in domestic individuals' deposits and domestic corporate deposits.

The balance of NPLs (the sum of figures for Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Trust & Banking) at the end of March 2011 increased by 14.7 billion yen from the end of September 2010 to 1,430.7 billion yen. The NPL ratio remained at a low level of 1.68%, down by 0.01 percentage points from the end of September 2010.

As of the end of March 2011 the consolidated BIS capital ratio decreased 0.34 percentage points to 14.89%, and the Tier 1 ratio decreased 0.24 percentage points to 11.33%, from the end of September 2010. While retained earnings increased due to the accumulation of profits, the redemption of preferred securities and other factors led to a decline in capital and this was the main reason for the decline in capital ratios.

The target for fiscal 2011 consolidated net income is 600.0 billion yen, and our forecast dividend for fiscal 2011 is 12 yen per share, comprising a 6 yen interim dividend and a 6 yen final dividend.