Domestic Corporate Banking Business

We provide lending, settlement, forex, and asset management services to meet the diverse needs of our clients, through our domestic and overseas networks. We also utilize our Group-wide expertise to propose solutions for client’s business strategies and challenges.

Hidekazu Fukumoto Senior Managing Executive Officer Group Head, Corporate Banking Business Group

We contribute to our clients’ growth through providing the best solutions to their diverse needs ranging from management issues to business strategies.

Hidekazu Fukumoto

Senior Managing Executive Officer

Group Head, Corporate Banking Business Group

Fiscal 2014 Earnings Summary

Gross Profits ¥965.2 billion up 4% Net Operating Profits ¥517.1 billion up 7%

Gross profits rose 4% year on year (¥41.2 billion) to ¥965.2 billion. Net operating profits were up 7% year on year (¥31.6 billion) to ¥517.1 billion. Net interest income fell on a contraction in lending spreads as well as a decrease in deposit revenues on lower interest rates. However, this was covered by an increase in revenue from fees and commissions, and overall profits rose.

Gross Profits and Net Operating Profits

Earnings Highlights

Loan Balance Up and Investment Banking Revenue also Increasing

The domestic corporate average loan balance (excluding government) rose 5% year on year (¥2.1 trillion). This reflected our initiatives such as fund demand creation and responding to event finance including M&A finance. Investment banking revenues (note) rose as we provided our customers with high-value-added proposals to meet their challenges, and forex revenue also grew as we met transaction needs in a rapidly changing market.

(note)Revenue from structured finance, syndicated loans, derivatives.

  • Breakdown of Change in Gross Profits
  • Domestic Corporate Average Loan Balance

Large Corporate Business

Maintaining Our Leading Presence in the M&A Advisory and Project Finance League Tables

As we make various proposals to our clients for further enhancement of corporate value, MUFG ranks second among Japanese financial institutions in cross border M&A advisory business. Continuing from 2013, MUFG is ranked number one globally in project finance (origination volumes) on strong performance in electric power, resource and infrastructure projects.

  • M&A Advisory (cross-border projects/transaction value base)
  • Project Finance (global ranking, based on funds raised)

SME Business

Promoting a “Solution Providing Approach”

Our SME customers’ needs are diversifying from fund raising and business succession to sales channel expansion. We respond with order-made support and meticulously planned proposals, resulting in growth for both loan balances and fee and commission revenue in a tough competitive environment.
Details on "Supporting SME Growth, Regional Economies" on this>page.

Our Long-Term Vision

Supporting Growth and Providing Value Beyond Expectations: We Aim to Be Our Customers’ First-Choice Financial Institution

  • Business Environment
  • MUFG Strategy

Projected Business Environment and Management Strategy

The globalization of Japanese companies is proceeding apace and we expect overseas expansion to extend to an increasing number of SMEs. We project the number of corporate M&A deals to increase in certain sectors as companies attempt to become more globally competitive. The aging trend among Japanese management is accelerating and as the economy improves, we forecast that some companies will expand internal reserves.
MUFG perceives these changes as an opportunity and through the strengthening of our domestic business and establishment of a new business model, we intend to contribute to our clients’ growth and deliver new value beyond their expectations, becoming their first choice as a financial institution.

Japanese Company Business Expansion Overseas No. of Japanese Companies with Local Affiliates by Region

Medium-Term Business Plan (Fiscal 2015-2017)

We aim for sustained growth based on the basic policies set out below and in line with the direction of strengthening our domestic business base and establishing a new business model.

1.Contributing to Japan’s economic revitalization 2.Supporting companies’ overseas growth 3.Providing new valueadded service
Net Operating Profit Plan Average Loan Balance for SMEs

Strategy Focus

Large Corporations
Promoting sector-by-sector approach
Higher level of overseas business
SMEs
Strengthening base transactions (loans, settlement)
Promoting support for growth companies
Enhanced support on business succession
Establishing corporate asset management business

FOCUS

Supporting the Development of Next-Generation Core Industries

The Industry Design Office is a new strategic team formed by Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Capital, designed to support the creation of nextgeneration core industries. The objective is to support the growth of key sectors and industries that will form the core of the future Japanese economy, enlisting not only MUFG Group companies but also outside experts. The intention is to make this an MUFG business pillar in the long term.

Main Initiatives

Discovering the seeds of innovative technology
Analyzing industry prospects as technology seeds are applied in business
Developing CEO talent to continue innovation and supporting commercialization on a global basis

Industry Development Value Chain

Details on "Rise Up Festa" on this>page.

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