MITSUBISHI UFJ FINANCIAL GROUP INC (Form: 6-K, Received: 08/04/2020 06:14:43)

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 August 2020

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. 333-229697) 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FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.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: August 4, 2020


Mitsubishi UFJ Financial Group, Inc.

By:		/s/ Zenta Morokawa
Name:		Zenta Morokawa
Title:		Managing Director, Deputy Head of Corporate Administration Division

LOGO

Consolidated Summary Report

<under Japanese GAAP>

for the three months ended June 30, 2020

August 4, 2020


Company name:		Mitsubishi UFJ Financial Group, Inc.
Stock exchange listings:		Tokyo, Nagoya, New York
Code number:		8306
URL		https://www.mufg.jp/
Representative:		Hironori Kamezawa, President & Group CEO
For inquiry:		Masahisa Takahashi, Managing Director, Head of Financial Accounting Office, Financial Planning Division
		TEL (03) 5218-8890
Quarterly securities report issuing date:		August 14, 2020
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 Three Months ended June 30, 2020

(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
	million yen		%			million yen		%			million yen		%
For the three months ended
June 30, 2020		1,697,631		(5.8	)		277,753		(38.4	)		183,492		(52.9	)
June 30, 2019		1,801,365		9.7			450,847		7.4			389,193		23.6

(*)	Comprehensive income

June 30, 2020: 355,401 million yen, (30.1) % ; June 30, 2019: 508,310 million yen, - %


	Basic earnings per share		Diluted earnings per share
	yen		yen
For the three months ended
June 30, 2020		14.29		14.25
June 30, 2019		30.12		30.06

(2)	Financial Conditions


	Total Assets		Total Net Assets		Equity-to-asset ratio (*)
	million yen		million yen		%
As of
June 30, 2020		341,904,921		16,898,093		4.7
March 31, 2020		336,571,379		16,855,738		4.8

(Reference) Shareholders’ equity as of June 30, 2020: 16,070,349 million yen; March 31, 2020: 15,990,834 million 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
	yen		yen		yen		yen		yen
For the fiscal year
ended March 31, 2020		—		12.50		—		12.50		25.00
ending March 31, 2021		—
ending March 31, 2021 (Forecast)				12.50		—		12.50		25.00

(*)	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, 2021 (Consolidated)

MUFG has the target of 550.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2021. (There is no change to our earnings target released on May 15, 2020.)

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

(D) Restatements: No

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


(A) Total stocks outstanding including treasury stocks:	June 30, 2020	13,581,995,120 shares
	March 31, 2020	13,581,995,120 shares
(B) Treasury stocks:	June 30, 2020	740,979,908 shares
	March 31, 2020	741,363,277 shares
(C) Average outstanding stocks:	Three months ended June 30, 2020	12,840,897,893 shares
	Three months ended June 30, 2019	12,922,469,920 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.

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.

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
(5) Changes in Accounting Policies			6
(6) Additional Information			6

Supplemental Information:

“Selected Financial Information under Japanese GAAP For the Three Months Ended June 30, 2020”

Mitsubishi UFJ Financial Group, Inc.

1. Consolidated Financial Statements and Notes

(1) Consolidated Balance Sheets


(in millions of yen)	As of March 31, 2020			As of June 30, 2020
Assets:
Cash and due from banks		78,335,634			87,858,478
Call loans and bills bought		727,598			504,083
Receivables under resale agreements		24,104,564			14,922,902
Receivables under securities borrowing transactions		3,464,533			2,804,655
Monetary claims bought		6,583,403			6,295,837
Trading assets		20,250,172			22,608,011
Money held in trust		1,046,323			1,093,050
Securities		65,555,127			66,715,618
Loans and bills discounted		109,114,612			112,155,499
Foreign exchanges		1,741,290			1,883,030
Other assets		13,900,403			13,896,524
Tangible fixed assets		1,319,789			1,313,196
Intangible fixed assets		1,498,407			1,402,512
Net defined benefit assets		712,206			735,396
Deferred tax assets		127,516			131,822
Customers’ liabilities for acceptances and guarantees		8,830,436			8,537,302
Allowance for credit losses		(740,641	)		(952,998	)

Total assets		336,571,379			341,904,921

Liabilities:
Deposits		187,623,551			198,366,737
Negotiable certificates of deposit		7,787,524			8,046,789
Call money and bills sold		3,671,100			3,556,760
Payables under repurchase agreements		31,692,711			27,902,474
Payables under securities lending transactions		1,058,042			866,198
Commercial papers		2,162,329			1,886,107
Trading liabilities		14,067,826			14,699,982
Borrowed money		24,651,574			24,650,092
Foreign exchanges		2,223,010			1,810,454
Short-term bonds payable		962,295			1,029,296
Bonds payable		13,464,472			13,319,323
Due to trust accounts		9,798,688			9,381,982
Other liabilities		10,407,459			9,650,291
Reserve for bonuses		110,964			44,158
Reserve for bonuses to directors		1,446			780
Reserve for stocks payment		11,298			11,071
Net defined benefit liabilities		86,547			83,103
Reserve for retirement benefits to directors		1,058			793
Reserve for loyalty award credits		31,247			34,388
Reserve for contingent losses		206,029			208,715
Reserves under special laws		4,269			4,378
Deferred tax liabilities		754,111			809,912
Deferred tax liabilities for land revaluation		107,641			105,731
Acceptances and guarantees		8,830,436			8,537,302

Total liabilities		319,715,640			325,006,828

Mitsubishi UFJ Financial Group, Inc.


(in millions of yen)	As of March 31, 2020			As of June 30, 2020
Net assets:
Capital stock		2,141,513			2,141,513
Capital surplus		980,102			977,298
Retained earnings		10,855,798			10,762,262
Treasury stock		(505,518	)		(505,280	)

Total shareholders’ equity		13,471,894			13,375,793

Net unrealized gains (losses) on available-for-sale securities		2,066,363			2,378,163
Net deferred gains (losses) on hedging instruments		189,342			205,654
Land revaluation excess		158,633			154,401
Foreign currency translation adjustments		300,838			50,057
Remeasurements of defined benefit plans		(159,766	)		(153,646	)
Debt value adjustments of foreign subsidiaries and affiliates		(36,470	)		59,924

Total accumulated other comprehensive income		2,518,940			2,694,555

Subscription rights to shares		59			—
Non-controlling interests		864,844			827,743

Total net assets		16,855,738			16,898,093

Total liabilities and net assets		336,571,379			341,904,921

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 three months ended June 30, 2019			For the three months ended June 30, 2020
Ordinary income		1,801,365			1,697,631
Interest income		976,834			764,995
Interest on loans and bills discounted		597,670			508,898
Interest and dividends on securities		159,904			113,704
Trust fees		31,378			36,796
Fees and commissions		361,812			348,711
Trading income		59,565			115,423
Other operating income		146,378			330,146
Other ordinary income		225,395			101,558
Ordinary expenses		1,350,518			1,419,877
Interest expenses		532,575			295,994
Interest on deposits		175,927			93,811
Fees and commissions		57,917			55,757
Other operating expenses		29,770			166,480
General and administrative expenses		667,701			688,686
Other ordinary expenses		62,553			212,958

Ordinary profits		450,847			277,753

Extraordinary gains		34,278			8,927
Gains on disposition of fixed assets		1,921			8,927
Reversal of reserve for contingent liabilities from financial instruments transactions		1			—
Gains on sales of shares of subsidiaries		30,249			—
Gains on step acquisitions		2,105			—
Extraordinary losses		26,694			22,845
Losses on disposition of fixed assets		1,567			1,643
Losses on impairment of fixed assets		2,536			4,512
Provision for reserve for contingent liabilities from financial intruments transactions		—			108
Losses on change in equity		21,311			16,580
Losses on sales of shares of affiliates		1,279			—

Profits before income taxes		458,431			263,836

Income taxes-current		56,635			95,641
Income taxes-deferred		(11,918	)		(32,760	)

Total taxes		44,716			62,881

Profits		413,714			200,954

Profits attributable to non-controlling interests		24,521			17,462

Profits attributable to owners of parent		389,193			183,492

Mitsubishi UFJ Financial Group, Inc.

Consolidated Statements of Comprehensive Income


(in millions of yen)	For the three months ended June 30, 2019			For the three months ended June 30, 2020
Profits		413,714			200,954
Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities		61,211			278,183
Net deferred gains (losses) on hedging instruments		50,922			16,602
Land revaluation excess		36			—
Foreign currency translation adjustments		(13,943	)		(252,646	)
Remeasurements of defined benefit plans		(7,819	)		5,443
Share of other comprehensive income of associates accounted for using equity method		4,190			106,863

Total other comprehensive income		94,596			154,446

Comprehensive income		508,310			355,401

(Comprehensive income attributable to)
Comprehensive income attributable to owners of parent		478,465			364,293
Comprehensive income attributable to non-controlling interests		29,845			(8,891	)

Mitsubishi UFJ Financial Group, Inc.

(3) Notes on Going-Concern Assumption

None.

(4) Notes for Material Changes in Shareholders’ Equity

None.

(5) Changes in Accounting Policies

(Additional Information)

(Adoption of Accounting Standard for Fair Value Measurement)

Accounting Standard Board of Japan (“ASBJ”) Statement No. 30, “Accounting Standard for Fair Value Measurement” (ASBJ, July 4, 2019; hereinafter referred to as “Accounting Standard for Fair Value Measurement”) and ASBJ Guidance No. 31, “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ, July 4, 2019), have been applied since the end of the previous fiscal year. In accordance with Paragraph 8 of the Accounting Standard for Fair Value Measurement, the risk adjustment method applied to determine the fair value of derivatives was modified to use as much as possible observable inputs estimated by reference to derivatives and other instruments traded in the market. This modification was made due to the application of the Accounting Standard for Fair Value Measurement. In accordance with the transitional measures set forth in Paragraph 20 of the Accounting Standard for Fair Value Measurement, the cumulative effect of retroactively applying the new accounting policy prior to the beginning of the previous fiscal year was recognized as adjustments to retained earnings at the beginning of the previous fiscal year, and the new accounting policy was applied as of the beginning of the previous fiscal year as a change in MUFG’s accounting policies.

Accordingly, the consolidated financial statements as of and for the quarter ended June 30, 2019 reflect the retroactive application of the new accounting policy.

The retroactive application of the new accounting policy resulted in a decrease of ¥2,652 million in each of ordinary profits and profits before income taxes for the first quarter of the previous fiscal year. In addition, the balance of retained earnings as of the beginning of the previous fiscal year decreased by ¥20,533 million due to the cumulative effect of the retroactive application of the new accounting policy on net assets as of the beginning of the previous fiscal year.

(Adoption of U.S. Accounting Standards Update (“ASU”) 2016-13, “Measurement of Credit Losses on Financial Instruments”)

Certain overseas subsidiaries which apply Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) adopted ASU2016-13, “Measurement of Credit Losses on Financial Instruments” from the beginning of the three months ended June 30, 2020. This update replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses, and full lifetime expected credit losses will be recognized upon initial recognition of a financial asset measured on an amortized cost basis by taking into account certain forecasted information such as macroeconomic indicators. In adopting the accounting standard, retained earnings were adjusted for the cumulative effect at the beginning of the three months ended June 30, 2020.

As a result, at the beginning of the three months ended June 30, 2020, allowance for credit losses increased by ¥172,363 million and retained earnings decreased by ¥118,374 million.

(6) Additional Information

(Estimated impact of the COVID-19 pandemic relating to provision for credit losses)

MUFG Bank, Ltd. (“the Bank”), a major consolidated subsidiary of MUFG, and some of the Bank’s consolidated subsidiaries, recorded a provision for credit losses of ¥39,428 million by estimating the impact of the COVID-19 pandemic on credit risk, to the extent that such impact was considered not to have been reflected in the borrowers’ financial information, considering the expected impact of the pandemic on the borrowers’ financial performance and on the overall economic environment.

The process for preparing the recorded provision amount involved, among other things, determining the scope of borrowers (in terms of industry, geographical region, etc.) that were expected to be significantly affected, making certain assumptions relating to economic factors based on certain scenarios, and collectively estimating the degree to which the internal credit ratings assigned to borrowers in particular industries or geographic regions would be downgraded.

Since there was no precedent or established market view regarding the extent of the pandemic or the timing of containment of the pandemic available for reference, the Bank and some of its consolidated subsidiaries made certain assumptions, including that economic conditions recovering to the calendar 2019 level by some time around the end of calendar 2020 globally, and estimated the amount, as best as they could under the circumstances, based on, among other things, such assumptions, information available from external sources, and the approval of the appropriate management decision-making body given in accordance with prescribed internal rules.

Mitsubishi UFJ Financial Group, Inc.

For the three-month period ended June 30, 2020, the assumptions for making estimates relating to provision for credit losses remained substantially unchanged because the observable changes subsequent to the end of the previous fiscal year in the factors and circumstances underlying the assumptions were not sufficient to cause such change in the assumptions. However, these assumptions are highly uncertain, and significant additional provision for credit losses may be recognized for the six- month period ending September 30, 2020 and subsequent reporting periods due to developments affecting the impact of the COVID-19 pandemic on the financial performance of borrowers and other transaction counterparties or on the economic environment.

(Major overseas subsidiaries’ credit costs which are expected to be reflected in MUFG’s consolidated financial statements as of and for the second quarter of the fiscal year ending March 31, 2021)

Major overseas subsidiaries which were consolidated based on their financial statements as of and for the quarter ended March 31, 2020 adopted ASU 2016-13, “Measurement of Credit Losses on Financial Instruments,” the new guidance that introduced the concept of current expected credit loss, as of the beginning of the first quarter of the fiscal year ending December 31, 2020. As a result, these subsidiaries record provision for allowance for credit losses by taking into account certain forecasted information such as macroeconomic indicators.

Under the new guidance, mainly due to the deterioration in forecasted economic indicators and the credit quality of borrowers and other transaction counterparties due to the COVID-19 pandemic, it is currently estimated that the subsidiaries’ credit costs (provision for allowance for credit losses, write-offs of loans and provision for reserve for contingent losses) increased for the quarter ended June 30, 2020 and will be expected approximately ¥100 billion in total based on the current estimate. The subsidiaries’ credit costs for the quarter ended June 30, 2020 will be reflected in MUFG’s consolidated financial statements as of and for the quarter ending September 30, 2020.

Selected Financial Information

under Japanese GAAP

For the Three Months Ended June 30, 2020


Mitsubishi UFJ Financial Group, Inc.

Mitsubishi UFJ Financial Group, Inc.

[Contents]


1. Financial Results	[MUFG Consolidated]1 [BK and TB Combined]234 [BK Non-consolidated][TB Non-consolidated]	1

2. Non Performing Loans Based on the Financial Reconstruction Law	[BK and TB Combined including Trust Account] [BK Non-consolidated][TB Non-consolidated] [TB Non-consolidated : Trust Account]	5

3. Securities	[MUFG Consolidated] [BK Non-consolidated][TB Non-consolidated]	6

4. ROE	[MUFG Consolidated]	9

5. Average Interest Rate Spread	[BK and TB Combined] [BK Non-consolidated ][TB Non-consolidated]	10

6. Loans and Deposits	[BK and TB Combined] [BK Non-consolidated][TB Non-consolidated]	11

7. Statements of Trust Assets and Liabilities	[TB Non-consolidated]	12

(*1)	“MUFG” means Mitsubishi UFJ Financial Group, Inc.

(*2)	“BK” means MUFG Bank, Ltd.

(*3)	“TB” means Mitsubishi UFJ Trust and Banking Corporation.

(*4)	“BK and TB Combined” means simple sum of “BK” and “TB” without consolidation processes.

Note:

Accounting Standard Board of Japan (“ASBJ”) Statement No. 30, “Accounting Standard for Fair Value Measurement” and ASBJ Guidance No. 31, “Implementation Guidance on Accounting Standard for Fair Value Measurement” have been applied since the end of the previous fiscal year.

Accordingly, the financial information of “MUFG”, “BK and TB Combined” and “BK”, for the three months ended June 30, 2019 reflect the retroactive application of the new accounting standard, etc.

Mitsubishi UFJ Financial Group, Inc.

1. Financial Results

MUFG Consolidated


	(in millions of yen)
	For the three months ended						Increase (Decrease) (A) - (B)
	June 30, 2020 (A)			June 30, 2019 (B)			Increase (Decrease) (A) - (B)
Gross profits		1,077,890			955,751			122,139
Gross profits before credit costs for trust accounts		1,077,890			955,751			122,139
Net interest income		469,051			444,303			24,747
Trust fees		36,796			31,378			5,417
Credit costs for trust accounts (1)		—			—			—
Net fees and commissions		292,953			303,895			(10,941	)
Net trading profits		115,423			59,565			55,857
Net other operating profits		163,665			116,608			47,056
Net gains (losses) on debt securities		165,925			85,205			80,719
General and administrative expenses		678,784			670,067			8,716
Amortization of goodwill		3,864			4,495			(630	)
Net operating profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill		402,971			290,179			112,791
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses		399,106			285,684			113,422
Provision for general allowance for credit losses (2)		(53,060	)		—			(53,060	)
Net operating profits*		346,046			285,684			60,361
Net non-recurring gains (losses)		(68,292	)		165,162			(233,455	)
Credit costs (3)		(106,616	)		(25,857	)		(80,758	)
Losses on loan write-offs		(40,372	)		(26,207	)		(14,165	)
Provision for specific allowance for credit losses		(60,501	)		—			(60,501	)
Other credit costs		(5,742	)		349			(6,091	)
Reversal of allowance for credit losses (4)		—			39,366			(39,366	)
Reversal of reserve for contingent losses included in credit costs (5)		—			4,225			(4,225	)
Gains on loans written-off (6)		14,632			16,394			(1,761	)
Net gains (losses) on equity securities		6,001			23,928			(17,927	)
Gains on sales of equity securities		17,523			36,872			(19,348	)
Losses on sales of equity securities		(8,028	)		(8,788	)		759
Losses on write-down of equity securities		(3,493	)		(4,155	)		662
Equity in earnings of equity method investees		56,652			79,299			(22,646	)
Other non-recurring gains (losses)		(38,963	)		27,805			(66,768	)

Ordinary profits		277,753			450,847			(173,093	)

Net extraordinary gains (losses)		(13,917	)		7,584			(21,501	)
Losses on change in equity		(16,580	)		(21,311	)		4,730
Gains on sales of shares of subsidiaries		—			30,249			(30,249	)
Profits before income taxes		263,836			458,431			(194,595	)
Income taxes-current		95,641			56,635			39,006
Income taxes-deferred		(32,760	)		(11,918	)		(20,841	)
Total taxes		62,881			44,716			18,164
Profits		200,954			413,714			(212,759	)
Profits attributable to non-controlling interests		17,462			24,521			(7,059	)

Profits attributable to owners of parent		183,492			389,193			(205,700	)

Note:
* Netoperating 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)		(145,044)			34,128			(179,173	)

Mitsubishi UFJ Financial Group, Inc.

BK and TB Combined


	(in millions of yen)
	For the three months ended						Increase (Decrease) (A) - (B)
	June 30, 2020 (A)			June 30, 2019 (B)			Increase (Decrease) (A) - (B)
Gross profits		594,891			508,120			86,771
Gross profits before credit costs for trust accounts		594,891			508,120			86,771
Net interest income		249,486			246,885			2,600
Trust fees		30,048			24,780			5,268
Credit costs for trust accounts (1)		—			—			—
Net fees and commissions		102,745			116,003			(13,258	)
Net trading profits		45,570			14,764			30,806
Net other operating profits		167,041			105,686			61,355
Net gains (losses) on debt securities		158,051			84,752			73,298
General and administrative expenses		336,480			336,876			(396	)
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses		258,411			171,243			87,168
Provision for general allowance for credit losses (2)		(6,298	)		—			(6,298	)
Net operating profits		252,112			171,243			80,869
Net non-recurring gains (losses)		(55,079	)		131,715			(186,794	)
Credit costs (3)		(33,451	)		(1,589	)		(31,862	)
Losses on loan write-offs		(7,143	)		(2,079	)		(5,064	)
Provision for specific allowance for credit losses		(23,686	)		—			(23,686	)
Other credit costs		(2,621	)		489			(3,110	)
Reversal of allowance for credit losses (4)		—			65,411			(65,411	)
Reversal of reserve for contingent losses included in credit costs (5)		85			1,935			(1,849	)
Gains on loans written-off (6)		1,210			3,630			(2,419	)
Net gains (losses) on equity securities		3,225			30,579			(27,354	)
Gains on sales of equity securities		16,028			43,623			(27,594	)
Losses on sales of equity securities		(7,922	)		(8,914	)		991
Losses on write-down of equity securities		(4,880	)		(4,129	)		(751	)
Other non-recurring gains (losses)		(26,149	)		31,747			(57,897	)

Ordinary profits		197,033			302,958			(105,924	)

Net extraordinary gains (losses)		9,221			(1,372	)		10,593
Income before income taxes		206,255			301,586			(95,331	)
Income taxes-current		55,062			28,492			26,570
Income taxes-deferred		(7,746	)		43,823			(51,569	)
Total taxes		47,316			72,315			(24,998	)

Net income		158,938			229,270			(70,332	)


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		(38,453	)		69,387			(107,841	)

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities		100,359			86,490			13,869
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities and investment trusts cancellation		104,019			87,086			16,933

Mitsubishi UFJ Financial Group, Inc.

BK Non-consolidated


	(in millions of yen)
	For the three months ended						Increase (Decrease) (A) - (B)
	June 30, 2020 (A)			June 30, 2019 (B)			Increase (Decrease) (A) - (B)
Gross profits		513,714			421,624			92,089
Net interest income		211,955			214,230			(2,275	)
Net fees and commissions		83,936			96,175			(12,239	)
Net trading profits		44,628			9,686			34,942
Net other operating profits		173,194			101,531			71,662
Net gains (losses) on debt securities		164,587			75,230			89,357
General and administrative expenses		287,061			289,204			(2,142	)
Amortization of goodwill		386			87			299
Net operating profits before provision for general allowance for credit losses and amortization of goodwill		227,038			132,507			94,531
Net operating profits before provision for general allowance for credit losses		226,652			132,420			94,232
Provision for general allowance for credit losses (1)		(6,264	)		—			(6,264	)
Net operating profits		220,387			132,420			87,967
Net non-recurring gains (losses)		(52,983	)		133,413			(186,397	)
Credit costs (2)		(33,451	)		(1,581	)		(31,870	)
Reversal of allowance for credit losses (3)		—			65,357			(65,357	)
Reversal of reserve for contingent losses included in credit costs (4)		—			1,911			(1,911	)
Gains on loans written-off (5)		1,210			3,629			(2,419	)
Net gains (losses) on equity securities		1,848			30,936			(29,088	)
Gains on sales of equity securities		12,792			36,694			(23,901	)
Losses on sales of equity securities		(7,844	)		(2,240	)		(5,604	)
Losses on write-down of equity securities		(3,099	)		(3,517	)		417
Other non-recurring gains (losses)		(22,590	)		33,158			(55,749	)

Ordinary profits		167,403			265,833			(98,429	)

Net extraordinary gains (losses)		8,844			(1,665	)		10,510
Income before income taxes		176,248			264,168			(87,919	)
Income taxes-current		55,746			29,247			26,499
Income taxes-deferred		(12,307	)		37,600			(49,907	)
Total taxes		43,439			66,847			(23,408	)

Net income		132,809			197,320			(64,511	)


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)		(38,505	)		69,318			(107,824	)
Provision for general allowance for credit losses		(6,264	)		(1,105	)		(5,159	)
Provision for special allowance for credit losses		(23,686	)		66,425			(90,112	)
Allowance for credit to specific foreign borrowers		37			37			(0	)
Losses on loans write-off		(7,143	)		(2,070	)		(5,073	)
Provision for contingent losses included in credit costs		(2,676	)		1,911			(4,588	)
Gains on loans written-off		1,210			3,629			(2,419	)
Losses on sales of other loans, etc.		17			489			(471	)

Net operating profits before provision for general allowance for credit losses, excluding net gains (losses) on debt securities		62,064			57,189			4,874
Net operating profits before provision for general allowance for credit losses, excluding net gains (losses) on debt securities and investment trusts cancellation		62,168			56,367			5,800

Mitsubishi UFJ Financial Group, Inc.

TB Non-consolidated


	(in millions of yen)
	For the three months ended						Increase (Decrease) (A) - (B)
	June 30, 2020 (A)			June 30, 2019 (B)			Increase (Decrease) (A) - (B)
Gross profits		81,177			86,495			(5,317	)
Gross profits before credit costs for trust accounts		81,177			86,495			(5,317	)
Trust fees		30,048			24,780			5,268
Credit costs for trust accounts (1)		—			—			—
Net interest income		37,530			32,655			4,875
Net fees and commissions		18,809			19,827			(1,018	)
Net trading profits		941			5,077			(4,136	)
Net other operating profits		(6,152	)		4,154			(10,307	)
Net gains (losses) on debt securities		(6,536	)		9,522			(16,058	)
General and administrative expenses		49,418			47,672			1,746
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses		31,758			38,822			(7,063	)
Provision for general allowance for credit losses (2)		(33	)		—			(33	)
Net operating profits		31,725			38,822			(7,097	)
Net non-recurring gains (losses)		(2,095	)		(1,698	)		(397	)
Credit costs (3)		—			(8	)		8
Reversal of allowance for credit losses (4)		—			53			(53	)
Reversal of reserve for contingent losses included in credit costs (5)		85			23			62
Gains on loans written-off (6)		—			0			(0	)
Net gains (losses) on equity securities		1,377			(356	)		1,734
Gains on sales of equity securities		3,236			6,929			(3,693	)
Losses on sales of equity securities		(78	)		(6,674	)		6,596
Losses on write-down of equity securities		(1,780	)		(611	)		(1,169	)
Other non-recurring gains (losses)		(3,558	)		(1,410	)		(2,147	)

Ordinary profits		29,629			37,124			(7,495	)

Net extraordinary gains (losses)		376			292			83
Income before income taxes		30,006			37,417			(7,411	)
Income taxes-current		(683	)		(755	)		71
Income taxes-deferred		4,561			6,223			(1,662	)
Total taxes		3,877			5,467			(1,590	)

Net income		26,128			31,949			(5,820	)


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		52			69			(17	)
Credit costs for trust accounts		—			—			—
Provision for general allowance for credit losses		(33	)		52			(86	)
Provision for special allowance for credit losses		—			1			(1	)
Allowance for credit to specific foreign borrowers		—			—			—
Losses on loans write-offs		—			(8	)		8
Provision for contingent losses included in credit costs		85			23			62
Gains on loans written-off		—			0			(0	)
Losses on sales of other loans, etc.		—			—			—

Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities		38,295			29,300			8,994
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities and investment trusts cancellation		41,851			30,719			11,132

Mitsubishi UFJ Financial Group, Inc.

2. Non Performing Loans Based on the Financial Reconstruction Law

BK and TB Combined including Trust Account


	(in millions of yen)
	As of June 30, 2020			As of March 31, 2020
Bankrupt or De facto Bankrupt		160,587			121,990
Doubtful		329,580			310,975
Special Attention		221,966			221,271
Non Performing Loans		712,134			654,237
Total loans		103,467,187			100,608,268
Non Performing Loans / Total loans		0.68	%		0.65	%
BK Non-consolidated
	(in millions of yen)
	As of June 30, 2020			As of March 31, 2020
Bankrupt or De facto Bankrupt		160,538			121,940
Doubtful		327,300			308,695
Special Attention		221,966			221,271
Non Performing Loans		709,805			651,907
Total loans		99,390,300			96,406,813
Non Performing Loans / Total loans		0.71	%		0.67	%
TB Non-consolidated
	(in millions of yen)
	As of June 30, 2020			As of March 31, 2020
Bankrupt or De facto Bankrupt		49			49
Doubtful		2,275			2,275
Special Attention		—			—
Non Performing Loans		2,325			2,325
Total loans		4,069,164			4,189,169
Non Performing Loans / Total loans		0.05	%		0.05	%
TB Non-consolidated: Trust Account
	(in millions of yen)
	As of June 30, 2020			As of March 31, 2020
Bankrupt or De facto Bankrupt		0			0
Doubtful		3			3
Special Attention		—			—
Non Performing Loans		3			3
Total loans		7,723			12,285
Non Performing Loans / Total loans		0.04	%		0.03	%

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 June 30, 2020

As of March 31, 2020

Amount on
consolidated
balance sheet

Unrealized
gains (losses)

Amount on
consolidated
balance sheet

Unrealized
gains (losses)

Debt securities being held to maturity

4,060,434

46,595

4,165,781

12,113

(in millions of yen)

As of June 30, 2020

As of March 31, 2020

Amount on
consolidated
balance sheet

Unrealized
gains (losses)

Amount on
consolidated
balance sheet

Unrealized
gains (losses)

Available-for-sale securities

63,189,465

3,337,855

62,151,189

2,888,631

Domestic equity securities

4,523,119

2,537,699

4,141,355

2,139,981

Domestic bonds

31,373,885

170,758

27,473,106

171,378

Other

27,292,461

629,397

30,536,727

577,271

Foreign equity securities

76,468

13,936

79,521

12,671

Foreign bonds

21,791,924

659,130

24,502,462

738,144

Other

5,424,068

(43,669

)

5,954,743

(173,544

)

Mitsubishi UFJ Financial Group, Inc.

BK 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 June 30, 2020

As of March 31, 2020

Amount on
balance sheet

Unrealized
gains (losses)

Amount on
balance sheet

Unrealized
gains (losses)

Debt securities being held to maturity

1,926,621

20,810

1,944,533

18,785

Stocks of subsidiaries and affiliates

625,594

144,493

627,818

(17,184

)

(in millions of yen)

As of June 30, 2020

As of March 31, 2020

Amount on
balance sheet

Unrealized
gains (losses)

Amount on
balance sheet

Unrealized
gains (losses)

Available-for-sale securities

47,270,441

2,239,669

46,321,585

1,991,487

Domestic equity securities

3,692,648

1,978,180

3,374,636

1,651,395

Domestic bonds

29,463,521

159,532

25,770,967

154,064

Other

14,114,271

101,955

17,175,981

186,027

Foreign equity securities

53,759

6,894

53,695

6,530

Foreign bonds

11,526,830

154,886

13,997,325

370,202

Other

2,533,681

(59,825

)

3,124,961

(190,704

)

Mitsubishi UFJ Financial Group, Inc.

TB Non-consolidated

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

(in millions of yen)

As of June 30, 2020

As of March 31, 2020

Amount on
balance sheet

Unrealized
gains (losses)

Amount on
balance sheet

Unrealized
gains (losses)

Debt securities being held to maturity

1,053,089

(8,055

)

1,059,871

(15,289

)

Stocks of subsidiaries and affiliates

50,383

(795

)

28,482

(1,873

)

(in millions of yen)

As of June 30, 2020

As of March 31, 2020

Amount on
balance sheet

Unrealized
gains (losses)

Amount on
balance sheet

Unrealized
gains (losses)

Available-for-sale securities

11,123,690

878,832

10,698,869

727,878

Domestic equity securities

868,846

498,031

807,271

432,023

Domestic bonds

1,889,182

10,221

1,710,778

16,171

Other

8,365,662

370,578

8,180,820

279,683

Foreign equity securities

Foreign bonds

6,723,286

347,258

6,616,153

262,471

Other

1,642,328

23,281

1,564,622

17,176

Mitsubishi UFJ Financial Group, Inc.

4. ROE

MUFG Consolidated


	(%)
	For the three months ended June 30, 2020		For the three months ended June 30, 2019
ROE		5.39		11.32

Note:

ROE is computed as follows:

Profits attributable to owners of parent × 4

×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

Mitsubishi UFJ Financial Group, Inc.

5. Average Interest Rate Spread

BK and TB Combined


(Domestic business segment)	(percentage per annum)
(Domestic business segment)	For the three months ended June 30, 2020		For the three months ended June 30, 2019
Average interest rate on loans and bills discounted		0.71		0.75
Average interest rate on deposits and NCD		0.00		0.00
Interest rate spread		0.70		0.74

(After excluding loans to the Japanese government and governmental organizations)
Average interest rate on loans and bills discounted		0.75		0.80
Interest rate spread		0.74		0.79

BK Non-consolidated

(Domestic business segment)	(percentage per annum)
(Domestic business segment)	For the three months ended June 30, 2020		For the three months ended June 30, 2019
Average interest rate on loans and bills discounted		0.73		0.78
Average interest rate on deposits and NCD		0.00		0.00
Interest rate spread		0.72		0.77

(After excluding loans to the Japanese government and governmental organizations)
Average interest rate on loans and bills discounted		0.75		0.80
Interest rate spread		0.75		0.80

TB Non-consolidated

(Domestic business segment)	(percentage per annum)
(Domestic business segment)	For the three months ended June 30, 2020		For the three months ended June 30, 2019
Average interest rate on loans and bills discounted		0.31		0.35
Average interest rate on deposits and NCD		0.03		0.03
Interest rate spread		0.28		0.31

(After excluding loans to the Japanese government and governmental organizations)
Average interest rate on loans and bills discounted		0.63		0.66
Interest rate spread		0.60		0.62

Mitsubishi UFJ Financial Group, Inc.

6. Loans and Deposits

BK and TB Combined


	(in millions of yen)
	As of June 30, 2020		As of March 31, 2020
Deposits (ending balance)		179,731,159		169,384,048
Deposits (average balance)		177,525,768		166,255,886
Loans (ending balance)		95,615,269		92,339,389
Loans (average balance)		96,577,475		91,531,796

	(in millions of yen)
	As of June 30, 2020		As of March 31, 2020
Domestic deposits (ending balance)*		155,013,512		145,903,208
Individuals		81,905,255		79,317,655

Note:

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

BK Non-consolidated


	(in millions of yen)
	As of June 30, 2020		As of March 31, 2020
Deposits (ending balance)		168,819,529		158,248,564
Deposits (average balance)		166,457,570		154,468,309
Loans (ending balance)		91,643,928		88,258,295
Loans (average balance)		92,564,219		87,207,107

	(in millions of yen)
	As of June 30, 2020		As of March 31, 2020
Domestic deposits (ending balance)*		145,438,741		136,155,699
Individuals		75,004,141		72,414,615

Note:

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

TB Non-consolidated


	(in millions of yen)
	As of June 30, 2020		As of March 31, 2020
Deposits (ending balance)		10,911,629		11,135,484
Deposits (average balance)		11,068,197		11,787,576
Loans (ending balance)		3,971,341		4,081,093
Loans (average balance)		4,013,255		4,324,689

	(in millions of yen)
	As of June 30, 2020		As of March 31, 2020
Domestic deposits (ending balance)*		9,574,770		9,747,508
Individuals		6,901,114		6,903,040

Note:

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

Mitsubishi UFJ Financial Group, Inc.

7. Statements of Trust Assets and Liabilities

TB Non-consolidated

Including trust assets under service-shared co-trusteeship


(in millions of yen)	As of March 31, 2020		As of June 30, 2020
Assets:
Loans and bills discounted		359,832		333,146
Securities		57,931,822		57,641,089
Beneficiary rights to the trust		87,938,640		89,700,220
Securities held in custody accounts		3,798,591		4,319,643
Monetary claims		22,272,297		22,730,205
Tangible fixed assets		15,875,747		16,181,581
Intangible fixed assets		135,543		135,729
Other claims		3,759,125		3,344,639
Call loans		1,147,427		696,538
Due from banking account		8,980,934		8,524,078
Cash and due from banks		5,284,528		5,688,660

Total		207,484,491		209,295,533

Liabilities:
Money trusts		25,711,403		25,317,922
Pension trusts		11,700,334		11,541,566
Property formation benefit trusts		6,842		6,825
Investment trusts		92,086,729		93,619,208
Money entrusted other than money trusts		4,939,720		4,972,203
Securities trusts		6,631,349		6,858,615
Monetary claim trusts		20,301,045		20,849,557
Equipment trusts		90,563		104,569
Land and fixtures trusts		42,300		42,255
Composite trusts		45,974,200		45,982,810

Total		207,484,491		209,295,533


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

	2.	Trust assets and liabilities under a declaration of trust excluded from above table are 850,748 millions of yen as of March 31, 2020 and 884,746 millions of yen as of June 30, 2020, respectively.