About MUFG > Message from Management : Mitsubishi UFJ Financial Group

Consolidated net income for fiscal year 2009 improved by 645.6 billion yen to 388.7 billion yen over last fiscal year's net losses. This can be primarily attributed to such factors as the followings: gross profits increased driven by the domestic and overseas lending and trading business, general and administrative expenses were slashed in real terms owing to our group wide cost cutting efforts as well as cost synergies of the system integration, and net gains on equity securities improved significantly as the stock market recovered.

While there was a decline in loans compared to the end of September 2009 mainly due to a decrease in overseas loans associated with the normalization of capital markets and deconsolidation of The Senshu Bank, deposits increased steadily because of the significant growth in domestic deposits.

In term of our financial soundness, our capital base was further strengthened mainly by one trillion yen common share offering, and our consolidated BIS capital ratio and Tier 1 ratio improved significantly to 14.87% and 10.63%, respectively, over the end of the previous fiscal year. In addition, our non-performing loan ratio remained low at 1.50%.

With respect to dividends paid to common shareholders, we decided, as initially forecasted at the beginning of the fiscal year, to distribute a fiscal year end dividend of 6 yen per share and total dividends, inclusive of an interim dividend, of 12 yen per share for the year.

We launched our three-year medium-term business plan last year in which we devoted the first half to the enhancement of core business fundamentals. In addition to fulfilling social and economic responsibility by facilitating smooth flows of funds, we have streamlined our operation by reducing costs, re-allocating personnel, and reducing equity holdings. Furthermore, in anticipation of new regulatory capital requirements, we shored up our capital base in December of last year and worked to further fortify our financial positions.

With respect to our growth strategies, we further reinforced our network in Asia, a region that continues to enjoy high rates of growth, and otherwise worked to lay the foundation for future growth. In addition to promoting global collaboration through a strategic alliance with Morgan Stanley, we launched a joint venture securities business in Japan this May, with the aim of becoming a leading company in the Japanese securities industry.

Despite a difficult business environment after the global financial crisis, we managed to post earnings that surpassed our initial targets and implemented strategic initiatives with an eye towards securing future growth. Fiscal year 2010 will be a very important year for MUFG. This year will be the turning point in our medium-term business plan, a shifting of gears from the phase of "enhancement of core business fundamentals" with an emphasis on risk management to the new phase of "accelerating growth". We will further promote efficiency, strive to offer products and services that meet the needs of our clients, and proactively allocate resources to priority business area such as our CIB business, inclusive of our strategic alliance with Morgan Stanley, and our Asian business in order to dynamically drive forward our growth strategies.

With a commitment to strong profitability and integrity which are the cornerstones of trust and credibility, MUFG aims to become a globally respected leading financial group, and all of our executives and employees will join forces towards the attainment of this goal.

I respectfully ask for your continued support and patronage.