Message from Management
Thank you very much for visiting MUFG's website.
On May 14, MUFG announced its fiscal 2013 results. Consolidated net income for the period was 984.8 billion yen, exceeding our revised target of 910 billion yen and showing a year-on-year increase of 132.2 billion yen.
In Japan, encouraging changes, including the effects of Abenomics and the reenergized stock market, as well as a distinct recovery in corporate funding demand, brought us strong earnings, particularly in the Retail and Corporate Banking Business segments. Overseas, MUFG's proactive response to customers' overseas financial needs generated strong earnings in the Global Business segment, despite elements of instability such as slowing growth in emerging economies, the start of Fed tapering in the US, and an increase in political tension in certain regions. This earnings growth in customer-facing business segments was the result of numerous initiatives we have pursued to provide integrated financial services, and these segments' earnings comprised over 80% of operating profit for the year.
From the perspective of financial health, we maintained a common equity Tier 1 ratio of 11.25% which fulfills current financial regulations. Our non-performing loan ratio also remained at a low level of 1.41%.
Fiscal 2013 was the second year of our three-year medium-term business plan, and MUFG made progress in laying a foundation for sustainable future growth through the implementation of both offensive and defensive measures. In Japan, we contributed to the recovery of the domestic economy from a financial perspective by supporting retail customers' asset formation through NISA and other measures, and by supporting our corporate customers through meeting their financing needs related to M&A, capital investment, etc. Looking towards medium-long-term growth, MUFG made Thailand's Bank of Ayudhya a subsidiary, expanding our business base in Asia where further economic growth can be expected. With regards to business management, we strengthened our governance approach through the establishment of a Risk Committee and a Global Advisory Board.
In fiscal 2014, the final year of our medium-term business plan, MUFG will work towards realizing the plan's goals by continuing to build our business base for continuous growth and by contributing to Japanese economic recovery. In Japan, where there are expectations for the government to provide concrete direction for its growth strategy, we will contribute to the economic recovery from a financial perspective by proactively utilizing our financial intermediary functions to support retail customers in shifting from savings to investment, and through the active creation of corporate customers' funding demands.
Overseas, in addition to the solid implementation of two important organizational integrations—those of the Bank of Ayudhya with BTMU's Bangkok Branch, and of Union Bank with BTMU's Americas banking operation—we will deepen collaboration within the Group and provide services with even greater added-value.
In governance, we plan to establish a Governance Committee (reporting to the Board of Directors) and increase the number of outside directors. We will continue to conduct our management in a manner that responds to increasingly complex global financial regulations and the rapidly changing global economy.
MUFG will continue to actively endeavour to meet the expectations of its stakeholders and reward their trust by aiming to be the world's most trusted financial group. Thank you for your continued support and goodwill.
President & CEO