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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.

 

In the fiscal year ended March 31, 2022 (“fiscal 2021”), MUFG’s customer-segment net operating profits grew significantly from the previous fiscal year, while expenses declined year-on-year when excluding the impact of foreign exchange rates. These results demonstrate the steady progress in our Strategies for Growth and Structural Reforms, two of the three strategic pillars defined in our current Medium-Term Business Plan (MTBP). In addition, profits attributable to owners of parent were 1,130.8 billion yen, surpassing our target of 1,050.0 billion yen and recording the highest profit in MUFG’s history. Moreover, ROE, our largest commitment under the MTBP, was 7.79%, 2.16 points higher than the previous fiscal year. The Common Equity Tier 1 (CET1) capital ratio, which represents financial soundness, was 10.4% (finalized Basel III reforms basis, excluding net unrealized gains on available-for-sale securities).

 

As for dividends per share, we will pay year-end dividends of 14.5 yen per share as announced. This, combined with interim dividends, will bring annual dividends up to 28.0 yen per share, 3 yen per share higher than the previous fiscal year. Furthermore, our forecast for fiscal 2022 annual dividends is set at 32 yen per share, an increase of 4 yen per share from fiscal 2021, in accordance with our pursuit of the progressive increase of dividends per share and a target dividend payout ratio of 40%. We have also announced the repurchase of our own shares worth 300.0 billion yen, in light of our CET1 capital ratio status, which currently remains above the target range of 9.5%–10.0%.

 

We have similarly made steady progress in terms of Corporate Transformation, the remaining strategic pillar of the MTBP. Regarding digital transformation, we released several new services in collaboration with external partners. Moreover, we have seen significant results from corporate culture reforms, with a growing number of employees stepping forward to take on new challenges. For example, we received 650 applications from 20 Group companies after initiating a program aimed at creating new businesses.

 

Our achievements also include the pursuit of carbon neutrality. We established interim targets to show our progress toward achieving net zero greenhouse gas (GHG) emissions from our financed portfolio. We are also engaged in a variety of other initiatives, such as providing diverse solutions to aid customers in their decarbonization efforts, by taking a groupwide, integrated approach that transcends regional boundaries. In April 2022, we issued the MUFG Progress Report, outlining the improvements we achieved under the initiatives mentioned above.

 

In September 2021, we announced the sale of MUFG Union Bank in the United States. This decision was made to optimize our allocation of management resources. Although procedures for obtaining the approval of relevant authorities are still underway, the transfer process has been progressing steadily, with its completion scheduled for the second half of 2022.

 

In fiscal 2022, the economic environment will likely be affected by a sense of caution due to the lingering COVID-19 pandemic. In addition, the outlook for international affairs and monetary market conditions is expected to remain volatile. However, we view changes in the business environment as opportunities. Therefore, we will explore and cultivate new avenues of profit, and take on the challenge of achieving 1 trillion yen in profits attributable to owners of parent.

 

We are determined to address issues that customers and society are grappling with in these uncertain times. In this way, we at MUFG as a whole will embody our Purpose, Committed to empowering a brighter future. We ask for your continued support.

May 2022

 

Hironori Kamezawa
President & Group CEO
 

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