Retail Banking Business
We provide a wide range of products and services to meet the needs of individual customers from housing loans to asset management, inheritance and consumer finance.
Our Group companies are working as a unified whole to deliver the best for customers.
Takahiro Yanai
Managing Executive Officer
Group Head, Retail Banking Business Group
Fiscal 2014 Earnings Summary
Retail Banking Business Group gross profits rose 1% (¥15.0 billion) over the previous fiscal year to reach ¥1,311.3 billion. Net operating profits rose 4% year on year (¥12.7 billion) to reach ¥347.1 billion. Revenue from loans and deposits declined, but this was covered by investment product sales and consumer finance.
Investment Product Sales
Customer Base, Asset Scale and Revenue all Growing
In aiming for sustained growth in its investment product sales business, MUFG seeks a balance between its base (number of accounts, etc.); asset scale (assets under management from customers) and revenue. In fiscal 2014, we saw growth in the base (number of Nippon Individual Savings Account [NISA] accounts opened); as well as the amount of assets under management (Asset Scale) along with revenue.
Consumer Finance and Card Business
Revenue Growth as Card Loan Balance and Card Transaction Volume Increases
In consumer finance business, both balances and revenues are growing in ACOM card loan business and BANQUIC business (the consumer finance products provided by Bank of Tokyo-Mitsubishi UFJ). Card business transaction volume is growing and revenue is up on an increased use of revolving and installment payments.
Inheritance and Real Estate
Inheritance Trust Balance Rising Steadily
We focused on the development and sale of various products which can take advantage of legal changes related to inheritance and donations. Our real estate brokerage business performed well.
Our Long-Term Vision
The Top Financial Group Chosen by a Wide Variety of Customers Spanning the Generations
Projected Business Environment and Management Strategy
In Japan, the trend toward a decreasing birthrate and aging population is deepening, and it is predicted that in ten years’ time 30% of the population will be over 65. We are also seeing a polarization of income and assets while the spread of information and communications technology (ICT) is bringing a diversification of settlement methods.
In this environment, we see MUFG contributing to sustained economic growth in Japan in two ways. Firstly, by promoting a move to investments from savings through the asset management business, and promoting
the circulation of funds in the economy. Secondly, by revitalizing personal consumption through our settlement and consumer finance business. We aim to become the top financial group in the retail business segment, chosen by a wide variety of customers with our business spanning the generations.
Medium-Term Business Plan (Fiscal 2015-2017)
By promoting the shift to investments from savings and revitalizing personal consumption, we aim to expand our customer base, strengthen our stock business (increase our assets under management) and ultimately grow our revenues in a balanced drive for growth.
Strategy Focus
- Asset Management
- NISA promotion
- Investment products that support medium- to long-term asset formation
- Reconfigure investment product sales structure
- Asset Succession
- Expand new product lineup
- Group-wide total asset consulting approach from the perspective of asset succession
- Settlement (cards)
- Provide multiple settlement formats
- Strengthen transactions with corporations
- Consumer Finance
- Expand customer base
FOCUS
Meeting Total Asset Needs Not Limited to Financial Assets
Customer asset needs are becoming more sophisticated and diverse, from asset formation through to effective utilization and smooth arrangements for succession. To meet these needs, “total asset consulting”, which includes non-financial assets like real estate, is becoming more important. MUFG is able to leverage the knowhow and expertise of its Group companies in banking, trust, securities and real estate brokerage to deliver a total asset approach based on its comprehensive financial group power.
