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 fiscal year ended March 31, 2024 (FY2023), economic activities continued to normalize after COVID-19 was downgraded to Class 5 infectious disease status. However, uncertainties – from worsening geopolitical risks, continued high interest rates in Europe and the United States, and ongoing yen depreciation – drastically reshaped our business environment, even as the Bank of Japan lifted its negative interest rate policy. 

 

Despite these forces and the negative impact of divesting MUFG Union Bank, the Group’s earning power increased, particularly in customer-segment operations. Profits attributable to owners of parent rose to 1,490.7 billion yen, up 374.2 billion yen from the previous fiscal year. This was due largely to a year-on-year 249.4 billion yen increase in net operating profits, reflecting the earning power of our mainstay operations.

 

This profit marks an all-time high for MUFG, and for the third consecutive year we have met our target of “stably earning 1 trillion yen or more in profits attributable to owners of parent” set forth in our previous Medium-Term Business Plan (MTBP). We have also achieved ROE of 8.5 %, notably exceeding our target of 7.5%. Improving ROE was our foremost commitment under the plan, and our performance has been driven by keen management focus on profit, expenses, and risk-weighted assets.

 

Regarding fiscal 2023 dividends, we will pay year-end dividends of 20.5 yen per share, as announced. Combined with interim dividends, this will bring annual dividends to 41 yen per share, up 9 yen per share from the previous fiscal year. We have also expended 400 billion yen for repurchase of our own shares. Our forecast for fiscal 2024 annual dividends is set at 50 yen per share, up 9 yen per share for the second consecutive year, with an expected dividend payout ratio around 40%. And our Board of Directors has resolved to expend up to an additional 100 billion yen for fresh repurchase of our own shares.

 

With Fiscal Year 2024, we now enter a new MTBP cycle. We have framed this cycle as Three years to pursue and produce growth from opportunities presented by dramatic changes in our business environment. In line with these changes, we will update our growth strategies while repositioning the work we do to address social issues as an additional business focus. We will also accelerate corporate transformation to support these activities.

 

Thus our new MTBP has three pillars: Expand & Refine Growth Strategies, Drive Social & Environmental Progress, and Accelerate Transformation & Innovation.

 

As we developed the first pillar, Expand & Refine Growth Strategies, we began by considering our conventional strategies, which are built on four portfolio categories of products and channels. We then formulated seven strategies built on these categories to pursue opportunistic growth. Specifically, we intend to fortify the resilience of our existing business models; and produce growth with fresh products, services, and customer touchpoints via new channels.

 

Our second pillar, Drive Social & Environmental Progress, reflects an awareness that ultimately our growth can be sustainable only if we willfully serve as a constructive force in society. We will place new emphasis on initiatives to reflect this awareness while remaining committed to strong financials.

 

And third, to Accelerate Transformation & Innovation, we will continue transforming our corporate culture. To help drive this, we have formally incorporated Agility into our statement of shared Values; we will strengthen human capital, system-development capacity, AI, and other management foundations; and we will place even more emphasis on speed.

 

These three pillars support our ultimate aim: to remain a trustworthy financial group of choice for our customers. We will keep sharp focus on improving ROE, with a fiscal 2026 target set at around 9%. Also for FY2026, we aim for net operating profits of 2.1 trillion yen or more – a 30% increase from fiscal 2023 – and profit attributable to owners of parent of 1.6 trillion yen or more.

 

In an era of growing polarization manifested throughout the world, we at MUFG pledge to fulfill our unique potential to build bridges across divisions as we serve our purpose of being “Committed to empowering a brighter future.” Fundamental to that commitment is to live up to your stakeholder expectations, and we ask for your continued support.