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Message from Management Message from Management

Message from Management

On behalf of my management team, I want to express our gratitude for your ongoing support of operations at MUFG, and to share our recent financial results.

 

For the interim period of the fiscal year ending March 31, 2023 (“fiscal 2022”), net operating profits – an indicator of the earnings power of our mainstay operations – grew by 257.7 billion yen year-on-year, to 895.2 billion yen, registering the best first-half operating performance since MUFG’s founding. This was mainly due to an increase in net interest income from non-JPY deposits and loans, and a rise in income from forex and trading, areas in which we took advantage of market fluctuations.

 

Profits attributable to owners of parent were 231.0 billion yen, a year-on-year decrease of 550.3 billion yen, due to accounting deviations included in financial statements for the interim period. These deviations are associated with the accounting treatment of valuation losses recorded on assets held by MUFG Union Bank (MUB) in connection with our decision to sell this U.S.-based subsidiary. However, a certain portion of these losses will be reversed in the form of extraordinary gains when the ownership transfer of MUB is complete, which is scheduled for December 1, 2022. Had these extraordinary gains been included, profits attributable to owners of parent would have effectively stood at 679.2 billion yen. This represents our good progress of around 68% against our full-year target of 1 trillion yen.

 

We will pay interim dividends of 16 yen per share in line with our forecast at the beginning of the fiscal year. Meanwhile, our forecast for fiscal 2022 annual dividends is set at 32 yen per share, an increase of 4 yen per share from fiscal 2021. Moreover, our Board of Directors has resolved to execute the repurchase of our own shares up to 150.0 billion yen upon confirmation of the sale of MUB.

 

Considering the outcomes thus far of our Medium-Term Business Plan, we have made steady progress on Strategies for Growth and Structural Reforms, two of the three pillars of this plan. For example, customer-segment net operating profits contributed to overall growth in net operating profits, while expenses for the second consecutive year showed a decline when the impact of the depreciation of the yen is excluded.

 

In terms of Corporate Transformation, we are taking on challenges in new fields as we transform into a financial and digital platform operator capable of delivering digital-driven convenience and innovation, as well as safe and secure services. In August 2022, we invested in Animoca Brands KK, which provides blockchain and NFT(note)-based services in the area of WEB3.0. To create new business opportunities, we are currently combining this investee’s insights, networks, and other functions with our own.

 

To support efforts toward carbon neutrality, we engage and dialogue with customers while providing new services and developing new financing methods to help them in their decarbonization efforts. As a financial institution representing Japan, we are also taking a proactive approach to participating in rule-making aligned with, and sharing insights regarding, circumstances of Japan and Asia as a whole.

 

Currently, the outlook for the business environment remains unclear due to steep and ongoing inflation around the world, interest rate hikes, foreign exchange fluctuations and other factors. However, we will do our utmost to embody our Purpose, Committed to empowering a brighter future., especially in these uncertain times. To that end, we will sincerely address issues our customers and society are confronting. We will rally the Group’s entire strength to tackle Challenges and Transformation and thereby empower our stakeholders to take a step forward. We ask for your continued support.

 

(note) Non-Fungible Token: A collective term for non-fungible data that can be transferred via the use of such technologies as blockchain

November 2022

 

Hironori Kamezawa
President & Group CEO
 

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