Japanese Corporate Banking Business
We provide lending, settlement, forex, and asset management services through our domestic and overseas networks to meet the diverse needs of our clients. We also utilize our Groupwide expertise to propose solutions for client’s business strategies and challenges.
Medium- to Long-Term Strategy
Saburo Araki
Senior Managing Executive Officer
Group Head, Corporate Banking Business Group
•Secure sustainable growth by strengthening our domestic business foundation and establishing a new business model for corporate customers
•Boost corporate customer transactions through such key services as loans and settlement while stepping up services aimed at supporting business succession and continuation with an eye to changes in economic and social structures in Japan
Establish an asset management business model targeting corporate customers; and adopt a more sophisticated approach for the overseas business
Key Operating Companies
•The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) is a core bank supporting MUFG’s corporate banking business. BTMU boasts more than 400,000 corporate customers, providing them with such commercial banking services as loans and settlement. Moreover, BTMU offers a variety of other services through collaboration with Group companies.
•Mitsubishi UFJ Trust and Banking Corporation (MUTB) provides commercial banking services while handling real estate, pension and asset management.
•Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (MUMSS) provides bond and stock underwriting as well as M&A advisory services. MUMSS leverages a strategic alliance with Morgan Stanley.
•Mitsubishi UFJ Lease & Finance Company Limited provides a finance scheme employing leasing.
•The Mitsubishi UFJ Factors Limited provides customers with factoring services to meet their need for commercial financing solutions.
•In addition, Mitsubishi UFJ Research and Consulting Co., Ltd. (MURC) provides consulting services to help resolve various management issues, while Mitsubishi UFJ Capital Co., Ltd. assists start-up businesses with their fund-raising needs.
Fiscal 2015 Review
Fiscal 2015 Earnings Summary
Gross profits decreased 4.0% (¥38.1 billion) year on year to ¥911.2 billion. Net operating profits fell 7.0% (¥34.5 billion) to ¥460.3 billion. Amid intensifying market competition, net interest income attributable to loans and deposits decreased year on year, reflecting a prolonged trend toward lower market interest rates. However, the average loan balance rose 3.9% compared with the previous fiscal year, enjoying firm growth.
Large Corporate Business
Leveraging know-how accumulated by the commercial bank, trust bank and securities company, MUFG offers a range of solutions capable of enhancing corporate value of customers. As a result, MUFG ranked top in the league table in terms of M&A advisory and bond underwriting. Moreover, MUFG ranked second in stock underwriting, thanks to the success of a major listing project.
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SME Business
Our proposals are meticulously designed to meet customers’ fund raising needs and help them pursue management strategies for business growth and sales channel expansion. In fiscal 2015, we succeeded in making a number of effective proposals aimed at assisting the smooth succession of business as well as proposals related to capital strategies, resulting in growth in the loan balance. We are continuously striving to help customers achieve business growth by, for example, holding large-scale business matching meetings and hosting the “Rise Up Festa” business support program aimed at nurturing up-and-coming businesses.
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Creating a Financing Platform Supporting the Infrastructure Sector
In May 2016, MUFG announced a capital and business alliance with Hitachi, Ltd. and Hitachi Capital Corporation, which, working together, have created a specialized business serving the social infrastructure industry. This alliance aims to create a financing platform for supporting Japan’s infrastructure sector and to help domestic players achieve global expansion.
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FOCUS: Nurturing CEO Candidates Capable of Supporting Future Key Industries
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Looking to realize a next-generation business, we are striving to create a value chain encompassing all aspects of the business development process, including discovering up-and-coming businesses, devising optimal financial solutions to assist commercialization, offering business growth opportunities, and closing IPO and M&A deals.
In November 2015, BTMU and MURC launched “M-EIR,” a human resource development program aimed at nurturing CEO candidates capable of taking up the reins of industry leadership. Two participants who demonstrated unique business concepts during the selection process are learning corporate management expertise and know how for commercializing new technologies at MURC.
