Global Business
We respond to the funding needs of corporate customers around the world as well as providing cash management and advisory services. We also provide retail service in the United States and Thailand.
By establishing a strong presence in every region of the world, we aim to be the First Call Bank for clients.
Takashi Morimura
Senior Managing Executive Officer
Group Head, Global Business Group
Fiscal 2014 Earnings Summary
Gross profits rose 43% year on year (¥407.5 billion) to ¥1,351.3 billion due to the consolidation of Bank of Ayudhya (Krungsri) as well as forex impact and rises in net interest income and fee income. Net operating profits were up 56% year on year (¥211.6 billion) to ¥588.6 billion. The average loan balance increased 33% (¥10 trillion) to ¥40.8 trillion, with the average deposit balance up 38% (¥7.3 trillion) to ¥26.5 trillion.
Regional Highlights
Asia (Asia, Oceania, East Asia)
With the economic growth of Asia, profits steadily increased on expanding lending business with global corporates (non-Japanese companies).
Americas
Profits were strong, helped by the recovering United States economy.
Europe, Middle East, Africa
Our revenues have grown, mainly in corporate & investment banking despite the following negative factors: the stagnating European economy and economic situation in Russia. Net operating profits were broadly flat.
Bank of Ayudhya (Krungsri)
Bank of Ayudhya was consolidated on the P/L statement from fiscal 2014 and has had a positive net operating profit impact of ¥116.6 billion.
TOPICS
Aiming for the United States Top Ten
Integrating Americas Business
In July 2014, Bank of Tokyo-Mitsubishi UFJ and MUFG Union Bank integrated operations for Americas business. MUFG Union Bank offers a wide range of financial services from retail to corporate banking mainly on the West Coast. As of September 2014, our total deposit volume ranked 13th overall in the United States. We plan to introduce more advanced services, strengthen our US dollar funding capabilities and improve governance with a view to be in the top ten banks in the United States in terms of scale and earnings.
Our Long-Term Vision
Be the First Call Bank for Customers around the World
Projected Business Environment and Management Strategy
We foresee continued growth of the United States as the world’s biggest economic power. We also expect relatively high growth to continue in Asia. In this environment, MUFG aims to leverage its strengths to achieve growth. These include Bank of Tokyo-Mitsubishi UFJ’s extensive global network and the strong local commercial banking operations of MUFG Union Bank in the United States and Bank of Ayudhya (Krungsri) in Thailand. We will exploit our unique strengths in each region as well as offering enhanced products and services across regions to deliver high-quality services globally.
Medium-Term Business Plan (Fiscal 2015-2017)
We implement business strategies for sustained growth and strengthen our business foundation in line with the basic policies set out below.
Strategy Focus
- Strengthening business based on trade flows between Japanese and global corporates
- Expanding retail and SME business in North America and Thailand
- Strengthening products from a groupdriven perspective
- Enhancing transaction banking (note1)
- Strengthening O&D business (note2)
- Enhancing administration practice and establishing robust operational systems
- Promote non-organic strategy (note3)
(note1) Business, such as deposits, settlements and trade finance, that works through trade flows.
(note2) Origination and distribution business (loans, etc.) based on investor demands.
(note3) Growth strategy based on acquisition of assets and business through M&A, etc.
FOCUS
Transaction Banking for Global Cash Management and Trade Finance Needs
The global cash management and trade finance needs of companies are growing as globalization of company activities takes hold, ICT progresses, and world trade volumes increase. MUFG considers this transaction banking business (cash management, trade finance, etc.) as an important business strategy which can lead to the capture of non-interest income and foreign currency deposits.
In May 2015, Bank of Tokyo-Mitsubishi UFJ established a Transaction Banking Group to effectively coordinate related regional divisions and the related divisions of MUFG Union Bank and Bank of Ayudhya. We plan to develop products with the most advanced systems and to enhance marketing.
