Questions regarding the earnings results for the fiscal year ended March 31, 2019
Q. Please outline the earnings results for the fiscal year ended March 31, 2019.
- Consolidated gross profits
Consolidated gross profits decreased 128.5 bn yen from the previous year to 3,725.7 bn yen.
The decrease in gross profits was mainly due to decreases in net profits associated with global markets business, while net interest income from foreign currency-denominated loans and deposits increased.
- General and administrative expenses
General and administrative expenses increased 25.7 bn yen from the previous year to 2,647.1 bn yen, mainly due to an increase in expenses for overseas operations caused by the expansion of overseas business and for global financial regulatory compliance.
- Total credit costs
Total credit costs decreased 40.2 bn yen from the previous year to 5.8 bn yen on a consolidated basis, mainly due to an increase in the reversal of allowance.
- Profits (losses) from investments in affiliates
Profits from investments in affiliates increased 41.5 bn yen from the previous year to 284.3 bn yen, due to an increase in profits from investments in Morgan Stanley.
- Net extraordinary gains (losses)
Net extraordinary losses increased 149.6 bn yen from the previous year to 202.7 bn yen, mainly due to increase in impairment losses of fixed assets from system integration of NICOS.
- Profits attributable to owners of parent
Profits attributable to owners of parent decreased by 116.9 bn yen from the previous year to 872.6 bn yen.
- Consolidated gross profits
Q. Please outline the status of loans and deposits.
The loan balance decreased by 0.67 tn yen to 107.4 tn yen from the end of March 2018 mainly due to a decrease in housing loans as well as loans to government and governmental institutions.
The deposits increased by 2.8 tn yen to 180.1 tn yen from the end of March 2018 mainly due to an increase in individual deposits as well as overseas deposits.
Q. What is the situation regarding risk-monitored loans?
Risk-monitored loans(note1) decreased 304.6 bn yen to 967.0 bn yen and the risk-monitored loans ratio(note2) decreased by 0.27 percentage points from the end of March 2018 to 0.90%.
- Risk-monitored loans based on Banking Act
- Total risk-monitored loans / Total loans and bills discounted
Q. Please tell us about the capital ratio.
The Common Equity Tier 1 ratio(note1) was at a sufficient level of 12.23%.
Furthermore, the Common Equity Tier 1 ratio excluding impact of net unrealized gains (losses) on available-for-sales securities was 10.0%.
- Common Equity Tier 1 ratio = core equity capital (capital and surplus) / risk weighted assets
Questions regarding Medium-term Business Plan
Q. Please discuss your Medium-term Business Plan.
Please see "About MUFG > Strategy".
Questions about the business strategy
Q. What are the MUFG Group's strengths?
MUFG Group is a comprehensive, highly competitive financial group with a high presence in the core financial business areas: commercial banking, trust banking, securities, asset management, credit cards, consumer finance, leasing and others. In addition to the comprehensive group strength, our strong points are the geographically well balanced domestic network of branches, No.1 global network among Japanese financial groups, excellent customer base ranging from individual to large companies, sound asset quality and solid capital base.
Q. What is your retail business strategy?
We have a preeminent retail customer base of approximately 40 million deposit accounts and approximately 70 trillion yen in individual deposits (simple sum of the Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ Trust and Banking). We will aim to increase income by developing and selling attractive asset management products through strategic alliances with the world's top-level companies and by offering housing loan products taking advantage of our expertise accumulated over the years and our advanced analytical capacity, as well as by expanding our convenient consumer finance service.
Q. What is your domestic corporate business strategy?
We have the excellent customer base and a comprehensive operational base, including commercial banking, trust banking and securities businesses. We will strive to respond to the needs of all our corporate customers, ranging from listed large companies to small- and medium-sized companies. We will attain an overwhelming "No. 1" position in business transactions with Japanese companies, both domestically and abroad, through the enhancement of transactions with small- and medium-sized companies, settlement services, investment banking operations, and business in Asia in particular.
Q. What is your overseas corporate business strategy?
We have the No. 1 global network among Japanese financial groups, consisting of more than 1,150 sites in about 50 countries (as of the end of September 2015). Through this broad network, we will satisfy customer needs by providing funding scheme such as syndicated loans and project finance, as well as advice on M&A deals and cash management services, in addition to ordinary loans service.
Q. What is your trust assets business strategy?
In the trust assets business, we will respond to customers' diversifying and increasingly advanced needs with a combination of advanced expertise and capabilities. In the pensions business, we position speciality fund management as a strategic domain, and aim to further strengthen profitability by enhancing our product lineup and other measures. In the high growth sector of investment trust business, we will further increase the size of assets under management through business with the Group's broad retail customer base.
Questions on Capital policy
Q. Please explain your policies with regard to shareholder returns.
Please refer to our news release titled "Notice regarding Repurchase and Cancellation of Own Shares (PDF / 20KB)"dated May 15, 2018. This includes the descriptions of our "Basic Policies for Shareholder Returns."
Q. When will you achieve dividend payout ratio target of 40%?
MUFG aim to improve shareholder returns by mainly focusing on dividends in the pursuit of an optimal balance between solid equity capital and strategic investment for growth. MUFG will aim for a stable and sustainable increase in dividends per share through profit growth, with a dividend payout ratio target of 40%. As for the timeline, we will make effort to achieve this target over the course of the next medium-term business plan, that is, by the end of fiscal 2023.
Q. Please give me an outline of Mitsubishi UFJ Financial Group, Inc.
Mitsubishi UFJ Financial Group, Inc. is established on October 1, 2005 after management integration of Mitsubishi Tokyo Financial Group, Inc. and UFJ Holdings, Inc. Please see "About MUFG > Company Overview" for an outline of the company.
Q. Please tell me about your management message and corporate vision.
Q. What is your corporate governance system for enhancing transparency of management?
Based on a system that combines directors and corporate auditors, Mitsubishi UFJ Financial Group, Inc. (the holding company) is establishing a stable and effective corporate governance structure that will include the voluntary introduction of a committee system as well as incorporating external viewpoints. Please see "About MUFG > Governance" for details.
Q. What does your corporate symbol stand for?
Please see "About MUFG > Corporate Vision".
Operating Results and Financial Position
Q. When does Mitsubishi UFJ Financial Group report its earnings?
In accordance with Japan's banking laws, MUFG's financial year ends on March 31. Our full year and half year earnings reports are normally released towards the end of May and November respectively. From fiscal 2004, we have been releasing a "Consolidated Financial Information for the first / third quarter." in accordance with the disclosure requirements of the Tokyo Stock Exchange. For our full-year, half-year and quarterly reports, please see "Investor Relations > Financial Information".
Q. What are the credit ratings for the companies belonging to MUFG?
Q. Which analysts cover MUFG?
Please see "Investor Relations > Analyst Coverage".
Information for Shareholders
Q. Where are MUFG's shares listed? What is the stock code number for the shares?
In Japan, our shares are listed on the Tokyo Stock Exchange and the Nagoya Stock Exchange. Overseas, we are listed on the New York Stock Exchange (Delisted from the London Stock Exchange on June 2, 2006). The stock code number is 8306 (Tokyo Stock Exchange).