Message from Management
Thank you for visiting MUFG's website. I would like to outline MUFG's business results for fiscal 2014 and explain our new medium-term business plan.
A Look Back at Fiscal 2014
In fiscal 2014, consolidated net income amounted to ¥1,033.7 billion, higher than our full-year target of ¥950.0 billion. The domestic operating environment proved to be difficult during the year due to stagnant economic conditions resulted from the consumption tax hike and the lower interest rates that relate to the additional monetary easing measures instituted by the Bank of Japan. Nevertheless, continued our efforts to develop an understanding of and address customer needs to the highest satisfaction of our customers, and these efforts increased fee income, which led to improvements in performance. Overseas, business conditions were unstable in certain regions due to factors such as increasing geopolitical risks and the sluggish European economy. However, businesses in the growing markets of the United States and Asia performed favorably. This fact, combined with the earnings contributions from the consolidation of Ayudhya Public Company Limited (Krungsri), led to strong growth in performance.
Fiscal 2014 was the final year of the medium-term business plan launched in 2012. For the most part, we were able to meet our targets related to earnings growth and financial soundness in fiscal 2014. As for our business foundation, we continued to reinforce risk management systems and strengthen corporate governance. We also pursued improvements in this area through the conversion of MUFG into a company with three committees. In regard to shareholder returns, full-year dividends per share were increased by ¥2 year on year, making for a total of ¥18 per share in fiscal 2014. In addition, we repurchased approximately ¥100.0 billion worth of treasury stock after completing the first half of the fiscal year, and approved plans to acquire an additional ¥100.0 billion. Going forward, we will continue to pursue improvements in shareholder returns and capital efficiency.
Start of the New Medium-Term Business Plan
April 2015 marked the start of a new medium-term business plan. This plan focuses on the changes in the business environment expected to occur over the next decade, such as the aging of the Japanese population, the decline of Japan's birthrate, the acceleration of global business development by Japanese companies, and the evolution of information and communications technologies (ICT). Based on these changes, the plan outlines management strategies for the first three years of this period. Each of these strategies incorporates three strategic focuses: "Customer perspective," "Group-driven approach," and "Productivity improvements." "Customer perspective" calls on us to develop businesses based on changing customer needs. "Group-driven approach" inspires us to optimize our business on a Group-wide basis. "Productivity improvements" encapsulates our commitment to boosting competitiveness by pursuing higher levels of efficiency.
As we progress into the future, MUFG will remain rooted in the domestic market while, at the same time, continuing to grow on a global basis. Properly responding to changes in the operating environment, we will evolve and reform our business model to live up to the expectations of our stakeholders. Thank you for your continued support and goodwill.
President & CEO