Message from Management

On behalf of my colleagues at MUFG, I wish to express our sincere gratitude for your ongoing support of our operations.

 

In 2024, Japan’s economy made significant strides toward a complete departure from deflation, marked by the Bank of Japan’s first interest-rate hike in 17 years and driven by a virtuous cycle of inflation and wage growth. 

 

Internationally, we are witnessing pivotal shifts as governing parties in major nations face electoral challenges. The geopolitical environment reflects heightened risks, intensified by the new U.S. administration’s tariff policies and rising nationalism. Given these factors, it is crucial to judiciously assess changes in our macroeconomic landscape and financial markets.

 

Despite challenging circumstances during fiscal year 2024, profits attributable to owners of parent increased by 372.1 billion yen to 1,862.9 billion yen, making a record high for the second consecutive year. ROE stood at 9.9%, ahead of schedule in meeting our medium-term business plan (MTBP) target of approximately 9%, and reaching our mid-to-long-term target of 9-10%.

 

Net operating profit decreased by 252.5 billion yen year-on-year to 1,591.1 billion yen, due to losses from rebalancing our bond portfolio to optimize future profitability. These were offset by one-time profits such as the sale of equity holdings and reversal of large credit costs overseas, which are not included in net operating profit. In any case, performance of our customer segments drove significant increases in profits, demonstrating robust growth.

 

The annual dividend per share will be 64 yen, with a year-end dividend of 39 yen combined with the interim dividend. This represents an increase of 23 yen compared to the previous fiscal year. In addition, we have executed a share buyback of 400 billion yen. The dividend forecast for fiscal year 2025 is 70 yen, an increase of 6 yen compared to the previous fiscal year. The dividend payout ratio will be approximately 40%. Furthermore, we have resolved to repurchase our own shares up to 250 billion yen in the first half of the fiscal year.

 

Our current MTBP is positioned as “Three years to pursue and produce growth.” Activities supporting its three strategic pillars—Expand & Refine Growth Strategies, Drive Social & Environmental Progress, and Accelerate Transformation & Innovation—are driving steady progress.

 

Regarding Expand & Refine Growth Strategies, the strong performance of seven specific growth strategies has delivered approximately 200 billion yen over the past year. Our earning power has steadily improved as we diversified our business portfolio while flexibly responding to changes both in Japan and abroad. Each of the seven strategies continues to progress smoothly.

 

In terms of Drive Social & Environmental Progress, we have released a report outlining the path toward a carbon-neutral society, the impact of MUFG’s initiatives, and quantitative targets. We also continue to expand our portfolio of solutions, support startups and further industrial development, and provide financial and economic education as a unified group.

 

The third pillar, Accelerate Transformation & Innovation, involves continuing cultural reforms, investing in human capital, and strengthening foundations such as AI and data. In terms of cultural reform, we are implementing measures to promote speed, including establishing a team to lead agile operations and enable swift responses to environmental changes. By expanding and accelerating application areas, we intend to drive transformation throughout the organization.

 

Regarding incidents of misconduct that occurred in fiscal year 2024, I wish to extend my sincere apologies once again for the concern and inconvenience caused to our customers and other stakeholders. We are thoroughly implementing corrective measures to prevent recurrence, and will continuously strive to fortify governance as we aim to restore and reinforce the precious trust and confidence of our customers and society. 

 

We at MUFG are undeterred by an unpredictable environment, and remain committed as a unified group to empowering a brighter future for all our stakeholders. In fiscal year 2025, we aim to achieve profits attributable to owners of parent of 2.0 trillion yen, another new milestone aspiration since MUFG was established. 

 

We sincerely appreciate your continued understanding and support as we work to achieve our objectives.