Message from Management
Thank you for visiting MUFG’s website. I would like to outline MUFG’s business results in the six months ended September 30, 2015, and explain how we will pursue sustainable growth going forward.
Business Results in the Six Months Ended September 30, 2015
In the six months ended September 30, 2015, profits attributable to owners of parent amounted to ¥599.3 billion, a figure that equates to 63% of our full-year forecast. In Japan, the shift from savings to investments continued to advance steadily, and we were thus able to achieve a favorable level of transactions from individual customers by proposing asset management products and other offerings. Performance in sales and trading operations, which entail foreign exchange, bond and stock transactions, was also strong. In addition, overseas businesses grew smoothly centered on operations in the Americas.
The risk-adjusted capital ratio remained at a level that can be deemed sufficient when considering current financial regulations. Also, the non-performing loan ratio (the ratio of risk monitored loans to total loans and bills discounted) stayed at the low level of 1.32%. In consideration of this performance, we have decided to go forward with our original plans of issuing an interim dividend of ¥9 per share and acquiring an amount of our own stock with an upper limit of ¥100.0 billion.
Pursuit of Sustainable Growth
In April 2015, MUFG launched its new medium-term business plan. This plan puts forth the basic policy of pursing sustainable growth and improved productivity by reforming the Company’s business model centered on the shared focuses of “customer perspective,” “group-driven approach,” and “productivity improvements.” During the six months ended September 30, 2015, we pushed forward with various strategies and measures based on this policy to build the foundations that will enable us to achieve the goals of the plan.
In the second half of the fiscal year, we will continue to advance these measures and strategies quickly and steadily. In the retail banking business, for example, we will strengthen systems for coordination between bank and securities operations to enhance asset management product proposals and support individual customers in developing their asset portfolio. At the same, we will support the growth of corporate customers by providing loans suitable for their long-term business plans and offering solutions related to business succession and business matching as well as to asset management. We will also progressively reform business models in order to achieve higher levels of capital efficiency, particularly in overseas banking businesses. In the trust assets business, meanwhile, we will enhance and reinforce revenue bases through strategic investments.
As for the financial measures that will underpin these business strategies, we will continue to maintain a strong capital base and improve return on equity by utilizing ever-more sophisticated financial and capital management. Aiming for both a strong capital base and high capital efficiency, we will build a balanced capital structure through the issuance of subordinated debt and other means of procuring regulatory capital, while accurately responding to changes in market and economic conditions as well as to the implementation of more stringent international financial regulations.
The business environment is currently undergoing uncertainties as seen in the economic slowdown in China and other emerging countries as well as changes in the global economy. Nevertheless, MUFG remains firmly committed to pushing forward with reformations to improve corporate value.
I hope we can look forward to your continued support.
November 13, 2015
President & Group CEO