Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of February 2018

Commission File No. 000-54189

 

 

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

 

7-1, Marunouchi 2-chome, Chiyoda-ku

Tokyo 100-8330, Japan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or

will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F      X                Form 40-F              

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

 

 

 


THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-209455) OF MITSUBISHI UFJ FINANCIAL GROUP, INC. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 2, 2018

 

Mitsubishi UFJ Financial Group, Inc.
By:  

/s/ Zenta Morokawa

Name:   Zenta Morokawa
Title:   Chief Manager, Documentation & Corporate Secretary Department, Corporate Administration Division


LOGO

Consolidated Summary Report

<under Japanese GAAP>

for the nine months ended December 31, 2017

February 2, 2018

 

Company name:

  Mitsubishi UFJ Financial Group, Inc.    Stock exchange listings:    Tokyo, Nagoya, New York

Code number:

  8306    URL    http://www.mufg.jp/   

Representative:

  Nobuyuki Hirano, President & Group CEO      

For inquiry:

  Kazutaka Yoneda, General Manager - Financial Planning Division / Financial Accounting Office
  TEL (03) 3240-3110      

Quarterly securities report issuing date:

   February 14, 2018    Dividend payment date:        -

Trading accounts:

   Established      

Supplemental information for quarterly financial statements:

   Available   

Quarterly investor meeting presentation:

   None   

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Data for the Nine Months ended December 31, 2017

(1) Results of Operations

 

     (% represents the change from the same period in the previous fiscal year)  
     Ordinary Income      Ordinary Profits     Profits Attributable to
Owners of Parent
 
Nine months ended    million yen      %      million yen      %     million yen      %  

December 31, 2017

     4,577,331        6.0        1,206,031        (0.5     863,427        9.7  

December 31, 2016

     4,319,070        0.7        1,212,200        (9.6     786,938        (7.7

 

(*) Comprehensive income     December 31, 2017:    1,470,500 million yen,    -    %;     December 31, 2016: (273,349) million yen,     -    %

 

     Basic earnings
per share
     Diluted earnings
per share
 
Nine months ended    yen      yen  

December 31, 2017

     64.86        64.63  

December 31, 2016

     57.80        57.60  

(2) Financial Conditions

 

     Total Assets      Total Net Assets      Equity-to-asset ratio (*)  
As of    million yen      million yen      %  

December 31, 2017

     312,515,743        17,601,906        5.2  

March 31, 2017

     303,297,433        16,658,394        5.0  

(Reference) Shareholders’ equity as of       December 31, 2017: 16,194,993million yen;       March 31, 2017: 15,280,268million yen

 

(*) “Equity-to-asset ratio” is computed under the formula shown below

(Total net assets - Subscription rights to shares - Non-controlling interests) / Total assets

2. Dividends on Common Stock

 

     Dividends per Share  
     1st quarter-end      2nd quarter-end      3rd quarter-end      Fiscal year-end      Total  
Fiscal year    yen      yen      yen      yen      yen  

ended March 31, 2017

          9.00             9.00        18.00  

ending March 31, 2018

          9.00             

ending March 31, 2018 (Forecast)

              9.00        18.00  

 

(*) Revision of forecasts for dividends on the presentation date of this Consolidated Summary Report : None

3. Earnings Target for the Fiscal Year ending March 31, 2018 (Consolidated)

MUFG has the target of 950.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2018. (There is no change to our earnings target released on May 15, 2017.)

MUFG is engaged in financial service businesses such as banking business, trust banking business, securities business and credit card/loan businesses. Because there are various uncertainties caused by economic situation, market environments and other factors in these businesses, MUFG discloses a target of its profits attributable to owners of parent instead of a forecast of its performance.


ø Notes

 

(1) Changes in significant subsidiaries during the period: No

 

(2) Adoption of any particular accounting methods for quarterly consolidated financial statements: No

 

(3) Changes in accounting policies, changes in accounting estimates and restatements

(A)   Changes in accounting policies due to revision of accounting standards: No

(B)   Changes in accounting policies due to reasons other than (A): No

(C)   Changes in accounting estimates: No

(D)   Restatements: No

 

(4) Number of common stocks outstanding at the end of the period

 

(A)  Total stocks outstanding including treasury stocks:    December 31, 2017    14,027,694,920 shares   
   March 31, 2017    14,168,853,820 shares   
(B)  Treasury stocks:    December 31, 2017    864,860,290 shares   
   March 31, 2017    738,910,028 shares   
(C)  Average outstanding stocks:    Nine months ended December 31, 2017    13,311,369,048 shares   
   Nine months ended December 31, 2016    13,614,152,099 shares   

ø This “Consolidated Summary Report” (Quarterly “Tanshin”) is outside the scope of the external auditor’s quarterly review procedure.

ø Notes for using forecasted information etc.

 

1. This financial summary report contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overall management of the company and/or the group as a whole (the “forward-looking statements”). The forward-looking statements are made based upon, among other things, the company’s current estimations, perceptions and evaluations. In addition, in order for the company to adopt such estimations, forecasts, targets and plans regarding future events, certain assumptions have been made. Accordingly, due to various risks and uncertainties, the statements and assumptions are inherently not guarantees of future performance, may be considered differently from alternative perspectives and may result in material differences from the actual result. For the main factors that may affect the current forecasts, please see Consolidated Summary Report, Annual Securities Report, Disclosure Book, Annual Report, and other current disclosures that the company has announced.

 

2. The financial information included in this financial summary report is prepared and presented in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”). Differences exist between Japanese GAAP and the accounting principles generally accepted in the United States (“U.S. GAAP”) in certain material respects. Such differences have resulted in the past, and are expected to continue to result for this period and future periods, in amounts for certain financial statement line items under U.S. GAAP to differ significantly from the amounts under Japanese GAAP. For example, differences in consolidation basis or accounting for business combinations, including but not limited to amortization and impairment of goodwill, could result in significant differences in our reported financial results between Japanese GAAP and U.S. GAAP. Readers should consult their own professional advisors for an understanding of the differences between Japanese GAAP and U.S. GAAP and how those differences might affect our reported financial results. To date, we have published U.S. GAAP financial results only on a semiannual and annual basis, and currently do not expect to publish U.S. GAAP financial results for the period reported in this financial summary report.


Mitsubishi UFJ Financial Group, Inc.

 

(Appendix)

Contents of Appendix

 

1. Consolidated Financial Statements and Notes

     2  

(1) Consolidated Balance Sheets

     2  

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

     4  

(3) Notes on Going-Concern Assumption

     6  

(4) Notes for Material Changes in Shareholders’ Equity

     6  

 

Supplemental Information:

 

“Selected Financial Information under Japanese GAAP For the Nine Months Ended December 31, 2017”

 

 

1


Mitsubishi UFJ Financial Group, Inc.

 

1. Consolidated Financial Statements and Notes

(1) Consolidated Balance Sheets

 

(in millions of yen)    As of
March 31, 2017
    As of
December 31, 2017
 

Assets:

    

Cash and due from banks

     63,525,940       73,677,388  

Call loans and bills bought

     649,147       456,367  

Receivables under resale agreements

     8,066,973       6,946,198  

Receivables under securities borrowing transactions

     11,002,723       8,499,109  

Monetary claims bought

     4,707,868       5,833,344  

Trading assets

     21,046,367       19,289,929  

Money held in trust

     806,881       1,029,577  

Securities

     59,438,897       60,316,869  

Loans and bills discounted

     109,005,231       109,914,663  

Foreign exchanges

     2,083,530       2,500,449  

Other assets

     11,554,699       11,703,183  

Tangible fixed assets

     1,358,905       1,378,938  

Intangible fixed assets

     1,257,876       1,237,548  

Net defined benefit assets

     601,377       702,052  

Deferred tax assets

     126,231       88,660  

Customers’ liabilities for acceptances and guarantees

     9,022,130       9,790,198  

Allowance for credit losses

     (957,350     (848,737
  

 

 

   

 

 

 

Total assets

     303,297,433       312,515,743  
  

 

 

   

 

 

 

Liabilities:

    

Deposits

     170,730,221       174,759,893  

Negotiable certificates of deposit

     11,341,571       11,201,936  

Call money and bills sold

     1,973,569       2,356,611  

Payables under repurchase agreements

     17,636,962       19,954,050  

Payables under securities lending transactions

     5,538,739       6,425,729  

Commercial papers

     2,307,222       2,478,753  

Trading liabilities

     17,700,617       13,833,413  

Borrowed money

     16,971,085       18,992,165  

Foreign exchanges

     1,970,980       2,108,978  

Short-term bonds payable

     847,999       1,925,399  

Bonds payable

     9,893,687       10,667,235  

Due to trust accounts

     9,893,881       9,652,915  

Other liabilities

     9,382,992       9,187,776  

Reserve for bonuses

     81,012       47,918  

Reserve for bonuses to directors

     598       429  

Reserve for stocks payment

     10,400       11,068  

Net defined benefit liabilities

     59,045       60,936  

Reserve for retirement benefits to directors

     1,128       1,024  

Reserve for loyalty award credits

     16,689       19,636  

Reserve for contingent losses

     384,868       337,710  

Reserves under special laws

     4,075       4,016  

Deferred tax liabilities

     745,073       972,929  

Deferred tax liabilities for land revaluation

     124,483       123,109  

Acceptances and guarantees

     9,022,130       9,790,198  
  

 

 

   

 

 

 

Total liabilities

     286,639,039       294,913,836  
  

 

 

   

 

 

 

 

2


Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)    As of
March 31, 2017
    As of
December 31, 2017
 

Net assets:

    

Capital stock

     2,141,513       2,141,513  

Capital surplus

     1,412,087       1,287,931  

Retained earnings

     9,278,546       9,902,124  

Treasury stock

     (513,260     (613,285
  

 

 

   

 

 

 

Total shareholders’ equity

     12,318,885       12,718,283  
  

 

 

   

 

 

 

Net unrealized gains (losses) on available-for-sale securities

     2,184,597       2,777,213  

Net deferred gains (losses) on hedging instruments

     125,684       76,119  

Land revaluation excess

     173,723       172,511  

Foreign currency translation adjustments

     558,339       505,079  

Remeasurements of defined benefit plans

     (65,098     (30,665

Debt value adjustments of foreign subsidiaries and affiliates

     (15,863     (23,548
  

 

 

   

 

 

 

Total accumulated other comprehensive income

     2,961,382       3,476,709  
  

 

 

   

 

 

 

Subscription rights to shares

     407       274  

Non-controlling interests

     1,377,719       1,406,639  
  

 

 

   

 

 

 

Total net assets

     16,658,394       17,601,906  
  

 

 

   

 

 

 

Total liabilities and net assets

     303,297,433       312,515,743  
  

 

 

   

 

 

 

 

3


Mitsubishi UFJ Financial Group, Inc.

 

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Consolidated Statements of Income

 

(in millions of yen)    For the nine months
ended

December 31, 2016
    For the nine months
ended

December 31, 2017
 

Ordinary income

     4,319,070        4,577,331   

Interest income

     2,085,669       2,307,859  

Interest on loans and bills discounted

     1,344,856       1,526,438  

Interest and dividends on securities

     499,007       430,039  

Trust fees

     91,592       90,029  

Fees and commissions

     1,067,262       1,132,120  

Trading income

     182,047       228,406  

Other operating income

     437,861       322,276  

Other ordinary income

     454,636       496,639  

Ordinary expenses

     3,106,869       3,371,299  

Interest expenses

     615,425       874,180  

Interest on deposits

     207,517       307,245  

Fees and commissions

     150,957       160,921  

Trading expenses

     3,033       549  

Other operating expenses

     167,057       116,587  

General and administrative expenses

     1,920,298       2,022,285  

Other ordinary expenses

     250,097       196,774  
  

 

 

   

 

 

 

Ordinary profits

     1,212,200       1,206,031  
  

 

 

   

 

 

 

Extraordinary gains

     9,311       53,590  

Gains on disposition of fixed assets

     9,117       4,835  

Reversal of reserve for contingent liabilities from financial instruments transactions

     194       59  

Gains on exchange of shares of affiliates

     —         48,695  

Extraordinary losses

     68,859       48,792  

Losses on disposition of fixed assets

     6,627       6,382  

Losses on impairment of fixed assets

     6,551       22,839  

Losses on change in equity

     45,654       19,569  

Losses on liquidation of equity securities of subsidiaries

     5,260       —    

Losses on exchange of shares of affiliates

     4,538       —    

Losses on sales of equity securities of subsidiaries

     226       —    
  

 

 

   

 

 

 

Profits before income taxes

     1,152,653       1,210,829  
  

 

 

   

 

 

 

Income taxes-current

     219,514       250,249  

Income taxes-deferred

     60,150       17,683  
  

 

 

   

 

 

 

Total taxes

     279,664       267,933  
  

 

 

   

 

 

 

Profits

     872,988       942,896  
  

 

 

   

 

 

 

Profits attributable to non-controlling interests

     86,050       79,469  
  

 

 

   

 

 

 

Profits attributable to owners of parent

     786,938       863,427  
  

 

 

   

 

 

 

 

4


Mitsubishi UFJ Financial Group, Inc.

Consolidated Statements of Comprehensive Income

 

(in millions of yen)    For the nine months
ended

December 31, 2016
    For the nine months
ended

December 31, 2017
 

Profits

     872,988       942,896  

Other comprehensive income

    

Net unrealized gains (losses) on available-for-sale securities

     (256,391     582,868  

Net deferred gains (losses) on hedging instruments

     (81,723     (51,023

Land revaluation excess

     (19     (9

Foreign currency translation adjustments

     (504,111     9,737  

Remeasurements of defined benefit plans

     34,773       32,251  

Share of other comprehensive income of associates accounted for using equity method

     (338,864     (46,220
  

 

 

   

 

 

 

Total other comprehensive income

     (1,146,337     527,603  
  

 

 

   

 

 

 

Comprehensive income

     (273,349     1,470,500  
  

 

 

   

 

 

 

(Comprehensive income attributable to)

    

Comprehensive income attributable to owners of parent

     (331,787     1,379,956  

Comprehensive income attributable to non-controlling interests

     58,438       90,543  

 

5


Mitsubishi UFJ Financial Group, Inc.

 

(3) Notes on Going-Concern Assumption

None.

 

(4) Notes for Material Changes in Shareholders’ Equity

None.

 

6


 

Selected Financial Information

under Japanese GAAP

For the Nine Months Ended December 31, 2017

 

 

 

 

 

 

 

 

 

 

Mitsubishi UFJ Financial Group, Inc.

      LOGO   


Mitsubishi UFJ Financial Group, Inc.

[Contents]

 

1. Financial Results

  [ MUFG Consolidated ]*1[ BTMU and MUTB Combined ]*2*3*4       ——          1  
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     

2. Non Performing Loans Based on the Financial Reconstruction Law

  [ BTMU and MUTB Combined including Trust Account ]       ——          5  
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     
  [ MUTB Non-consolidated : Trust Account ]     

3. Securities

  [ MUFG Consolidated ]       ——          6  
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     

4. ROE

  [ MUFG Consolidated ]       ——          9  

5. Average Interest Rate Spread

  [ BTMU and MUTB Combined ]       ——          10  
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     

6. Loans and Deposits

  [ BTMU and MUTB Combined ]       ——          11  
  [ BTMU Non-consolidated ][ MUTB Non-consolidated ]     

7. Statements of Trust Assets and Liabilities

  [ MUTB Non-consolidated ]       ——          12  

 

(*1) “MUFG” means Mitsubishi UFJ Financial Group, Inc.
(*2) “BTMU” means The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(*3) “MUTB” means Mitsubishi UFJ Trust and Banking Corporation.
(*4) “BTMU and MUTB Combined” means simple sum of “BTMU” and “MUTB” without consolidation processes.


Mitsubishi UFJ Financial Group, Inc.

1. Financial Results

MUFG Consolidated

 

     (in millions of yen)  
     For the nine months ended     Increase  
     December 31, 2017
(A)
    December 31, 2016
(B)
    (Decrease)
(A) - (B)
 

Gross profits

     2,928,474       2,927,986       488  

Gross profits before credit costs for trust accounts

     2,928,474       2,927,985       488  

Net interest income

     1,433,700       1,470,270       (36,569

Trust fees

     90,029       91,592       (1,563

Credit costs for trust accounts (1)

     —         0       (0

Net fees and commissions

     971,199       916,304       54,894  

Net trading profits

     227,856       179,014       48,841  

Net other operating profits

     205,688       270,803       (65,114

Net gains (losses) on debt securities

     53,549       127,662       (74,112

General and administrative expenses

     1,971,339       1,867,316       104,023  

Amortization of goodwill

     13,033       11,020       2,012  

Net operating profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill

     970,167       1,071,689       (101,521

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses

     957,134       1,060,668       (103,534

Provision for general allowance for credit losses (2)

     —         —         —    

Net operating profits*

     957,134       1,060,669       (103,534

Net non-recurring gains (losses)

     248,897       151,531       97,365  

Credit costs (3)

     (129,320     (146,095     16,774  

Losses on loan write-offs

     (106,150     (93,384     (12,766

Provision for specific allowance for credit losses

     —         —         —    

Other credit costs

     (23,170     (52,711     29,541  

Reversal of allowance for credit losses (4)

     35,561       49,281       (13,720

Reversal of reserve for contingent losses included in credit costs (5)

     —         —         —    

Gains on loans written-off (6)

     59,589       45,866       13,722  

Net gains (losses) on equity securities

     134,952       96,160       38,791  

Gains on sales of equity securities

     149,471       134,687       14,784  

Losses on sales of equity securities

     (13,253     (36,575     23,322  

Losses on write-down of equity securities

     (1,266     (1,950     684  

Profits (losses) from investments in affiliates

     202,242       171,199       31,042  

Other non-recurring gains (losses)

     (54,126     (64,880     10,753  
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     1,206,031       1,212,200       (6,169
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     4,798       (59,547     64,346  

Losses on impairment of fixed assets

     (22,839     (6,551     (16,288

Losses on change in equity

     (19,569     (45,654     26,084  

Gains on exchange of shares of affiliates

     48,695       —         48,695  

Profits before income taxes

     1,210,829       1,152,653       58,176  

Income taxes-current

     250,249       219,514       30,735  

Income taxes-deferred

     17,683       60,150       (42,466

Total taxes

     267,933       279,664       (11,731

Profits

     942,896       872,988       69,907  

Profits attributable to non-controlling interests

     79,469       86,050       (6,580
  

 

 

   

 

 

   

 

 

 

Profits attributable to owners of parent

     863,427       786,938       76,488  
  

 

 

   

 

 

   

 

 

 

Note:

      

*   Net operating profits = Banking subsidiaries’ net operating profits + Other consolidated entities’ gross profits - Other consolidated entities’ general and administrative expenses - Other consolidated entities’ provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions

      

 

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)+(5)+(6)

     (34,170     (50,947     16,777  

 

1


Mitsubishi UFJ Financial Group, Inc.

BTMU and MUTB Combined

 

     (in millions of yen)  
     For the nine months ended     Increase
(Decrease)

(A) - (B)
 
     December 31, 2017
(A)
    December 31, 2016
(B)
   

Gross profits

     1,586,812       1,714,385       (127,573

Gross profits before credit costs for trust accounts

     1,586,812       1,714,385       (127,573

Net interest income

     873,824       939,711       (65,887

Trust fees

     70,221       72,103       (1,882

Credit costs for trust accounts (1)

     —         0       (0

Net fees and commissions

     416,525       414,648       1,877  

Net trading profits

     61,769       69,721       (7,951

Net other operating profits

     164,470       218,200       (53,729

Net gains (losses) on debt securities

     52,113       118,420       (66,307

General and administrative expenses

     1,003,748       1,011,099       (7,350

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses

     583,063       703,286       (120,223

Provision for general allowance for credit losses (2)

     —         —         —    

Net operating profits

     583,063       703,286       (120,223

Net non-recurring gains (losses)

     146,639       44,630       102,009  

Credit costs (3)

     (51,587     (78,711     27,123  

Losses on loan write-offs

     (28,290     (26,715     (1,574

Provision for specific allowance for credit losses

     —         —         —    

Other credit costs

     (23,297     (51,996     28,698  

Reversal of allowance for credit losses (4)

     93,489       88,636       4,853  

Reversal of reserve for contingent losses included in credit costs (5)

     —         189       (189

Gains on loans written-off (6)

     20,669       15,716       4,953  

Net gains (losses) on equity securities

     127,620       86,242       41,377  

Gains on sales of equity securities

     143,493       126,211       17,282  

Losses on sales of equity securities

     (15,262     (38,378     23,116  

Losses on write-down of equity securities

     (610     (1,589     979  

Other non-recurring gains (losses)

     (43,552     (67,443     23,890  
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     729,702       747,916       (18,214
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     39,164       (4,489     43,654  

Income before income taxes

     768,867       743,427       25,440  

Income taxes-current

     183,134       170,186       12,948  

Income taxes-deferred

     8,951       12,510       (3,558

Total taxes

     192,086       182,697       9,389  
  

 

 

   

 

 

   

 

 

 

Net income

     576,780       560,729       16,050  
  

 

 

   

 

 

   

 

 

 

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)+(5)+(6)

     62,571       25,830       36,740  

 

2


Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

 

     (in millions of yen)  
     For the nine months ended     Increase
(Decrease)

(A) - (B)
 
     December 31, 2017
(A)
    December 31, 2016
(B)
   

Gross profits

     1,318,245       1,418,982       (100,737

Net interest income

     757,701       816,497       (58,796

Net fees and commissions

     338,379       340,895       (2,515

Net trading profits

     48,881       68,570       (19,689

Net other operating profits

     173,283       193,019       (19,735

Net gains (losses) on debt securities

     53,105       100,133       (47,028

General and administrative expenses

     856,198       860,307       (4,109

Amortization of goodwill

     275       275       (0

Net operating profits before provision for general allowance for credit losses
and amortization of goodwill

     462,322       558,950       (96,628

Net operating profits before provision for general allowance for credit losses

     462,047       558,675       (96,627

Provision for general allowance for credit losses (1)

     —         —         —    

Net operating profits

     462,047       558,675       (96,627

Net non-recurring gains (losses)

     112,419       35,337       77,081  

Credit costs (2)

     (47,583     (78,443     30,859  

Reversal of allowance for credit losses (3)

     80,011       87,869       (7,857

Reversal of reserve for contingent losses included in credit costs (4)

     —         —         —    

Gains on loans written-off (5)

     20,118       15,269       4,848  

Net gains (losses) on equity securities

     98,122       71,820       26,302  

Gains on sales of equity securities

     111,877       110,382       1,495  

Losses on sales of equity securities

     (13,484     (37,201     23,716  

Losses on write-down of equity securities

     (271     (1,361     1,090  

Other non-recurring gains (losses)

     (38,249     (61,177     22,927  
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     574,466       594,013       (19,546
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     (9,879     1,165       (11,044

Income before income taxes

     564,587       595,178       (30,590

Income taxes-current

     135,359       134,317       1,041  

Income taxes-deferred

     4,030       10,268       (6,238

Total taxes

     139,389       144,585       (5,196
  

 

 

   

 

 

   

 

 

 

Net income

     425,198       450,592       (25,394
  

 

 

   

 

 

   

 

 

 

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)+(5)

     52,546       24,695       27,851  

Provision for general allowance for credit losses

     88,287       (106,686     194,973  

Provision for special allowance for credit losses

     (7,994     194,729       (202,723

Allowance for credit to specific foreign borrowers

     (280     (173     (106

Losses on loans write-off

     (28,289     (26,375     (1,914

Provision for contingent losses included in credit costs

     (12,086     (50,642     38,555  

Gains on loans written-off

     20,118       15,269       4,848  

Losses on sales of other loans, etc.

     (7,207     (1,425     (5,781

 

3


Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

 

     (in millions of yen)  
     For the nine months ended     Increase
(Decrease)

(A) - (B)
 
     December 31, 2017
(A)
    December 31, 2016
(B)
   

Gross profits

     268,566       295,402         (26,836

Gross profits before credit costs for trust accounts

     268,566       295,402       (26,836

Trust fees

     70,221       72,103       (1,882

Credit costs for trust accounts (1)

     —         0       (0

Net interest income

     116,122       123,213       (7,090

Net fees and commissions

     78,146       73,753       4,392  

Net trading profits

     12,888       1,150       11,737  

Net other operating profits

     (8,812     25,180       (33,993

Net gains (losses) on debt securities

     (991     18,287       (19,278

General and administrative expenses

     147,550       150,791       (3,240

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses

     121,015       144,611       (23,595

Provision for general allowance for credit losses (2)

     —         —         —    

Net operating profits

     121,015       144,611       (23,595

Net non-recurring gains (losses)

     34,220       9,292       24,928  

Credit costs (3)

     (4,004     (268     (3,735

Reversal of allowance for credit losses (4)

     13,477       767       12,710  

Reversal of reserve for contingent losses included in credit costs (5)

     —         189       (189

Gains on loans written-off (6)

     551       447       104  

Net gains (losses) on equity securities

     29,498       14,422       15,075  

Gains on sales of equity securities

     31,615       15,828       15,787  

Losses on sales of equity securities

     (1,777     (1,177     (600

Losses on write-down of equity securities

     (339     (228     (111

Other non-recurring gains (losses)

     (5,303     (6,265     962  
  

 

 

   

 

 

   

 

 

 

Ordinary profits

     155,236       153,903       1,332  
  

 

 

   

 

 

   

 

 

 

Net extraordinary gains (losses)

     49,043       (5,655     54,698  

Income before income taxes

     204,279       148,248       56,031  

Income taxes-current

     47,775       35,869       11,906  

Income taxes-deferred

     4,921       2,241       2,679  

Total taxes

     52,697       38,111       14,586  
  

 

 

   

 

 

   

 

 

 

Net income

     151,582       110,137       41,444  
  

 

 

   

 

 

   

 

 

 

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)+(5)+(6)

     10,025       1,135       8,889  

Credit costs for trust accounts

     —         0       (0

Provision for general allowance for credit losses

     16,975       (7,645     24,620  

Provision for special allowance for credit losses

     (3,497     8,414       (11,912

Allowance for credit to specific foreign borrowers

     0       (1     2  

Losses on loans write-offs

     (0     (339     339  

Provision for contingent losses included in credit costs

     (4,396     189       (4,585

Gains on loans written-off

     551       447       104  

Losses on sales of other loans, etc.

     392       71       321  

 

4


Mitsubishi UFJ Financial Group, Inc.

2. Non Performing Loans Based on the Financial Reconstruction Law

BTMU and MUTB Combined including Trust Account

 

     (in millions of yen)  
     As of
December 31, 2017
    As of
March 31, 2017
 

Bankrupt or De facto Bankrupt

     161,099       119,803  

Doubtful

     332,372       426,284  

Special Attention

     531,448       627,162  
  

 

 

   

 

 

 

Non Performing Loans

     1,024,920       1,173,249  
  

 

 

   

 

 

 

Total loans

     106,981,068       105,413,893  
  

 

 

   

 

 

 

Non Performing Loans / Total loans

     0.95     1.11

BTMU Non-consolidated

 

    
     (in millions of yen)  
     As of
December 31, 2017
    As of
March 31, 2017
 

Bankrupt or De facto Bankrupt

     159,492       117,714  

Doubtful

     321,614       418,034  

Special Attention

     492,077       571,405  
  

 

 

   

 

 

 

Non Performing Loans

     973,184       1,107,154  
  

 

 

   

 

 

 

Total loans

     92,049,555       90,743,260  
  

 

 

   

 

 

 

Non Performing Loans / Total loans

     1.05     1.22

MUTB Non-consolidated

 

    
     (in millions of yen)  
     As of
December 31, 2017
    As of
March 31, 2017
 

Bankrupt or De facto Bankrupt

     1,603       2,085  

Doubtful

     10,673       8,159  

Special Attention

     39,223       55,603  
  

 

 

   

 

 

 

Non Performing Loans

     51,500       65,848  
  

 

 

   

 

 

 

Total loans

     14,914,810       14,652,339  
  

 

 

   

 

 

 

Non Performing Loans / Total loans

     0.34     0.44

MUTB Non-consolidated: Trust Account

 

    
     (in millions of yen)  
     As of
December 31, 2017
    As of
March 31, 2017
 

Bankrupt or De facto Bankrupt

     3       3  

Doubtful

     84       90  

Special Attention

     147       153  
  

 

 

   

 

 

 

Non Performing Loans

     235       247  
  

 

 

   

 

 

 

Total loans

     16,702       18,293  
  

 

 

   

 

 

 

Non Performing Loans / Total loans

     1.41     1.35

 

5


Mitsubishi UFJ Financial Group, Inc.

3. Securities

MUFG Consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

 

     (in millions of yen)  
     As of December 31, 2017     As of March 31, 2017  
     Amount on
consolidated
balance sheet
     Differences     Amount on
consolidated
balance sheet
     Differences  

Debt securities being held to maturity

     3,481,739        48,852       3,560,825        50,325  
     (in millions of yen)  
     As of December 31, 2017     As of March 31, 2017  
     Amount on
consolidated
balance sheet
     Differences     Amount on
consolidated
balance sheet
     Differences  

Available-for-sale securities

     56,487,464        4,080,754       54,813,148        3,139,063  

Domestic equity securities

     5,948,431        3,572,917       5,164,653        2,635,191  

Domestic bonds

     25,916,671        296,757       27,688,842        399,130  

Other

     24,622,361        211,078       21,959,652        104,742  

Foreign equity securities

     354,746        53,381       182,802        49,875  

Foreign bonds

     19,845,275        (19,926     17,917,306        (8,487

Other

     4,422,338        177,624       3,859,542        63,353  

 

6


Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

 

     (in millions of yen)  
     As of December 31, 2017     As of March 31, 2017  
     Amount on
balance sheet
     Differences     Amount on
balance sheet
     Differences  

Debt securities being held to maturity

     2,003,505        46,575       2,348,504        52,045  

Stocks of subsidiaries and affiliates

     932,607        93,805       932,607        (8,940
     (in millions of yen)  
     As of December 31, 2017     As of March 31, 2017  
     Amount on
balance sheet
     Differences     Amount on
balance sheet
     Differences  

Available-for-sale securities

     38,035,676        3,107,902       37,723,034        2,347,803  

Domestic equity securities

     4,832,055        2,797,443       4,173,471        2,016,280  

Domestic bonds

     22,246,322        265,104       23,390,925        354,591  

Other

     10,957,297        45,355       10,158,637        (23,069

Foreign equity securities

     227,059        35,733       170,335        44,257  

Foreign bonds

     8,881,426        (17,500     7,853,982        (35,584

Other

     1,848,811        27,121       2,134,319        (31,742

 

7


Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

The tables include beneficiary rights to the trust in “Monetary claims bought” in addition to “Securities”.

 

     (in millions of yen)  
     As of December 31, 2017      As of March 31, 2017  
     Amount on
balance sheet
     Differences      Amount on
balance sheet
     Differences  

Debt securities being held to maturity

     241,307        1,241        —          —    

Stocks of subsidiaries and affiliates

     8,504        404        52,328        33,443  
     (in millions of yen)  
     As of December 31, 2017      As of March 31, 2017  
     Amount on
balance sheet
     Differences      Amount on
balance sheet
     Differences  

Available-for-sale securities

     14,540,180        930,571        13,508,608        752,569  

Domestic equity securities

     1,165,936        711,675        1,036,997        551,360  

Domestic bonds

     3,738,589        30,938        4,369,116        43,958  

Other

     9,635,654        187,957        8,102,494        157,250  

Foreign equity securities

     112,796        10,341        61        36  

Foreign bonds

     8,186,140        41,995        6,792,918        64,280  

Other

     1,336,718        135,620        1,309,514        92,933  

 

8


Mitsubishi UFJ Financial Group, Inc.

4. ROE

MUFG Consolidated

 

      (%)  
      For the nine months
ended
December 31, 2017
     For the nine months
ended
December 31, 2016
 

ROE

     8.82        8.45  

 

Note:

     

ROE is computed as follows:

  
profits attributable to owners of parent × 4/3      ×100  

{(Total shareholders’ equity at the beginning of the period + Foreign currency translation adjustments at the beginning of the period) + (Total shareholders’ equity at the end of the period + Foreign currency translation adjustments at the end of the period)} / 2

  

 

9


Mitsubishi UFJ Financial Group, Inc.

5. Average Interest Rate Spread

BTMU and MUTB Combined

(Domestic business segment)

 

     (percentage per annum)  
     For the nine months
ended

December 31, 2017
     For the nine months
ended

December 31, 2016
 

Average interest rate on loans and bills discounted

     0.80        0.81  

Average interest rate on deposits and NCD

     0.01        0.01  

Interest rate spread

     0.79        0.79  

(After excluding loans to the Japanese government and governmental organizations)

   (percentage per annum)  

Average interest rate on loans and bills discounted

     0.86        0.91  

Interest rate spread

     0.85        0.89  

 

BTMU Non-consolidated

(Domestic business segment)

 

     
     (percentage per annum)  
     For the nine months
ended

December 31, 2017
     For the nine months
ended

December 31, 2016
 

Average interest rate on loans and bills discounted

     0.88        0.87  

Average interest rate on deposits and NCD

     0.00        0.00  

Interest rate spread

     0.88        0.86  

(After excluding loans to the Japanese government and governmental organizations)

   (percentage per annum)  

Average interest rate on loans and bills discounted

     0.94        0.98  

Interest rate spread

     0.94        0.97  

 

MUTB Non-consolidated

(Domestic business segment)

     
     (percentage per annum)  
     For the nine months
ended

December 31, 2017
     For the nine months
ended

December 31, 2016
 

Average interest rate on loans and bills discounted

     0.45        0.51  

Average interest rate on deposits and NCD

     0.07        0.08  

Interest rate spread

     0.38        0.42  

(After excluding loans to the Japanese government and governmental organizations)

   (percentage per annum)  

Average interest rate on loans and bills discounted

     0.50        0.54  

Interest rate spread

     0.42        0.46  

 

10


Mitsubishi UFJ Financial Group, Inc.

6. Loans and Deposits

BTMU and MUTB Combined

 

      (in millions of yen)  
      As of
December 31, 2017
     As of
March 31, 2017
 

Deposits (ending balance)

     159,026,155        155,498,777  

Deposits (average balance)

     158,522,271        149,718,788  

Loans (ending balance)

     96,080,771        95,677,312  

Loans (average balance)

     96,859,456        97,494,781  
     (in millions of yen)  
      As of
December 31, 2017
     As of
March 31, 2017
 

Domestic deposits (ending balance)*

     136,081,089        134,143,669  

Individuals

     76,037,960        73,093,302  

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

BTMU Non-consolidated

 

      (in millions of yen)  
      As of
December 31, 2017
     As of
March 31, 2017
 

Deposits (ending balance)

     144,496,298        139,164,104  

Deposits (average balance)

     143,532,386        135,613,401  

Loans (ending balance)

     81,528,466        81,394,063  

Loans (average balance)

     82,533,382        83,916,295  
      (in millions of yen)  
      As of
December 31, 2017
     As of
March 31, 2017
 

Domestic deposits (ending balance)*

     123,224,627        119,499,507  

Individuals

     68,142,440        65,352,462  

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

MUTB Non-consolidated

 

      (in millions of yen)  
      As of
December 31, 2017
     As of
March 31, 2017
 

Deposits (ending balance)

       14,529,857          16,334,673  

Deposits (average balance)

     14,989,884        14,105,387  

Loans (ending balance)

     14,552,305        14,283,249  

Loans (average balance)

     14,326,073        13,578,485  
     (in millions of yen)  
      As of
December 31, 2017
     As of
March 31, 2017
 

Domestic deposits (ending balance)*

     12,856,462        14,644,161  

Individuals

     7,895,520        7,740,840  

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

 

11


Mitsubishi UFJ Financial Group, Inc.

7. Statements of Trust Assets and Liabilities

MUTB Non-consolidated

Including trust assets under service-shared co-trusteeship

 

(in millions of yen)    As of
March 31, 2017
     As of
December 31, 2017
 

Assets:

     

Loans and bills discounted

     204,237        293,188  

Securities

     53,054,465        52,555,280  

Beneficiary rights to the trust

     58,907,613        67,158,474  

Securities held in custody accounts

     3,259,572        3,690,956  

Monetary claims

     13,051,405        16,982,212  

Tangible fixed assets

     12,493,551        13,281,611  

Intangible fixed assets

     207,803        131,974  

Other claims

     3,950,126        3,360,521  

Call loans

     705,784        453,082  

Due from banking account

     9,100,260        8,776,650  

Cash and due from banks

     5,731,968        6,563,126  
  

 

 

    

 

 

 

Total

     160,666,790        173,247,078  
  

 

 

    

 

 

 

Liabilities:

     

Money trusts

     21,817,433        23,468,920  

Pension trusts

     12,741,687        11,927,635  

Property formation benefit trusts

     7,549        7,282  

Investment trusts

     63,323,815        71,442,069  

Money entrusted other than money trusts

     3,372,911        3,725,094  

Securities trusts

     5,399,262        5,687,890  

Monetary claim trusts

     12,195,074        16,058,241  

Equipment trusts

     66,298        72,261  

Land and fixtures trusts

     44,291        43,960  

Composite trusts

     41,698,466        40,813,722  
  

 

 

    

 

 

 

Total

     160,666,790        173,247,078  
  

 

 

    

 

 

 

 

Note:

  

1. The table shown above includes master trust assets under the service-shared co-trusteeship between MUTB and The Master Trust Bank of Japan, Ltd.

  

2. Trust assets and liabilities under a declaration of trust excluded from above table are 1,507 millions of yen as of March 31, 2017 and 1,505 millions of yen as of December 31, 2017, respectively.

 

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