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 2, 2022

 

 

Consolidated Summary Report

<under Japanese GAAP>

for the three months ended June 30, 2022

August 2, 2022

 

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 and Reporting, Financial Accounting Office, Financial Planning Division
		TEL 050-3613-1179
Quarterly securities report issuing date:		August 12, 2022
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, 2022

 

(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, 2022			2,163,890				43.9				262,961				(42.9	)			113,685				(70.3	)
June 30, 2021			1,503,727				(11.4	)			460,323				65.7				383,082				108.8

 

(*)	Comprehensive income

                                 June 30, 2022: (80,407) million yen, -   % ;                     June 30, 2021: 770,361 million yen, 116.8%

 

		Basic earnings per share				Diluted earnings per share
		yen				yen
For the three months ended
June 30, 2022			9.03				8.94
June 30, 2021			29.84				29.75

 

(2)	Financial Conditions

 

		Total Assets				Total Net Assets				Equity-to-asset ratio (*)
		million yen				million yen				%
As of
June 30, 2022			386,909,204				17,632,812				4.3
March 31, 2022			373,731,910				17,988,245				4.6

(Reference) Shareholders’ equity as of    June 30, 2022: 16,637,623 million yen;    March 31, 2022: 17,023,773 million yen

 

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

                        (Total net assets - 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, 2022			—				13.50				—				14.50				28.00
ending March 31, 2023			—
ending March 31, 2023 (Forecast)							16.00				—				16.00				32.00

 

(*)	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, 2023 (Consolidated)

MUFG has the target of 1,000.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2023. (There is no change to our earnings target released on May 16, 2022.)

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: Yes

(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:		June 30, 2022			13,281,995,120 shares
		March 31, 2022			13,281,995,120 shares
(B) Treasury stocks:		June 30, 2022			772,573,182 shares
		March 31, 2022			667,296,084 shares
(C) Average outstanding stocks:		Three months ended June 30, 2022			12,586,897,926 shares
		Three months ended June 30, 2021			12,839,240,666 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
(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, 2022”

 

1

Mitsubishi UFJ Financial Group, Inc.

 

1. Consolidated Financial Statements and Notes

(1) Consolidated Balance Sheets

 

(in millions of yen)		As of        March 31, 2022				As of        June 30, 2022
Assets:
Cash and due from banks			110,763,205				110,101,177
Call loans and bills bought			872,268				656,436
Receivables under resale agreements			12,308,310				14,507,321
Receivables under securities borrowing transactions			4,517,952				3,952,255
Monetary claims bought			6,466,822				7,435,299
Trading assets			17,704,455				18,461,510
Money held in trust			1,332,492				1,306,609
Securities			79,560,579				82,452,916
Loans and bills discounted			110,426,224				114,489,785
Foreign exchanges			2,300,859				2,500,532
Other assets			14,050,293				16,477,203
Tangible fixed assets			1,236,012				1,242,818
Intangible fixed assets			1,344,225				1,408,091
Net defined benefit assets			1,374,607				1,418,614
Deferred tax assets			213,922				244,088
Customers’ liabilities for acceptances and guarantees			10,481,838				11,381,831
Allowance for credit losses			(1,222,162	)			(1,127,285	)
Total assets			373,731,910				386,909,204
Liabilities:
Deposits			215,427,299				220,140,251
Negotiable certificates of deposit			10,938,831				12,477,801
Call money and bills sold			2,429,791				2,727,985
Payables under repurchase agreements			27,619,262				32,437,853
Payables under securities lending transactions			1,072,578				428,999
Commercial papers			2,108,531				2,875,866
Trading liabilities			12,397,702				15,086,597
Borrowed money			31,763,332				29,042,090
Foreign exchanges			2,182,400				2,831,869
Short-term bonds payable			1,316,803				1,473,999
Bonds payable			13,257,347				14,531,600
Due to trust accounts			12,811,123				10,340,769
Other liabilities			10,861,695				12,750,353
Reserve for bonuses			136,724				122,805
Reserve for bonuses to directors			1,866				1,184
Reserve for stocks payment			8,437				9,611
Net defined benefit liabilities			86,355				89,881
Reserve for retirement benefits to directors			812				669
Reserve for loyalty award credits			17,113				18,342
Reserve for contingent losses			232,291				202,541
Reserves under special laws			4,656				4,680
Deferred tax liabilities			492,451				205,861
Deferred tax liabilities for land revaluation			94,414				92,943
Acceptances and guarantees			10,481,838				11,381,831
Total liabilities			355,743,665				369,276,392

 

2

Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)		As of        March 31, 2022				As of        June 30, 2022
Net assets:
Capital stock			2,141,513				2,141,513
Capital surplus			770,277				770,718
Retained earnings			11,998,157				11,930,296
Treasury stock			(451,288	)			(528,915	)
Total shareholders’ equity			14,458,659				14,313,612
Net unrealized gains (losses) on available-for-sale securities			1,615,060				819,897
Net deferred gains (losses) on hedging instruments			(81,145	)			(233,047	)
Land revaluation excess			140,628				138,778
Foreign currency translation adjustments			734,588				1,437,182
Remeasurements of defined benefit plans			193,865				184,612
Debt value adjustments of foreign subsidiaries and affiliates			(37,883	)			(23,413	)
Total accumulated other comprehensive income			2,565,114				2,324,010
Non-controlling interests			964,471				995,189
Total net assets			17,988,245				17,632,812
Total liabilities and net assets			373,731,910				386,909,204

 

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 three months ended     June 30, 2021				For the three months ended        June 30, 2022
Ordinary income			1,503,727				2,163,890
Interest income			632,043				1,205,351
Interest on loans and bills discounted			406,219				492,571
Interest and dividends on securities			135,153				593,771
Trust fees			35,508				35,524
Fees and commissions			406,998				412,122
Trading income			93,724				29,574
Other operating income			90,667				228,979
Other ordinary income			244,785				252,339
Ordinary expenses			1,043,403				1,900,929
Interest expense			135,143				218,827
Interest on deposits			49,095				84,304
Fees and commissions			77,203				78,495
Trading expenses			39,386				1,129
Other operating expenses			50,126				705,372
General and administrative expenses			671,518				700,110
Other ordinary expenses			70,025				196,992
Ordinary profits			460,323				262,961
Extraordinary gains			65,997				5,222
Gains on disposition of fixed assets			9,473				5,222
Gains on change in equity			56,524				—
Extraordinary losses			29,550				27,140
Losses on disposition of fixed assets			2,410				2,672
Losses on impairment of fixed assets			7,482				732
Provision for reserve for contingent liabilities from financial instruments transactions			—				24
Losses on change in equity			19,657				23,711
Profits before income taxes			496,770				241,043
Income taxes-current			62,948				102,529
Income taxes-deferred			30,830				4,589
Total taxes			93,779				107,119
Profits			402,991				133,924
Profits attributable to non-controlling interests			19,909				20,238
Profits attributable to owners of parent			383,082				113,685

 

4

Mitsubishi UFJ Financial Group, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in millions of yen)		For the three months ended     June 30, 2021				For the three months ended        June 30, 2022
Profits			402,991				133,924
Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities			(18,698	)			(730,211	)
Net deferred gains (losses) on hedging instruments			37,094				(155,595	)
Foreign currency translation adjustments			251,347				558,197
Remeasurements of defined benefit plans			(8,812	)			(9,635	)
Share of other comprehensive income of associates accounted for using equity method			106,439				122,913
Total other comprehensive income			367,369				(214,331	)
Comprehensive income			770,361				(80,407	)
(Comprehensive income attributable to)
Comprehensive income attributable to owners of parent			740,089				(125,568	)
Comprehensive income attributable to non-controlling interests			30,271				45,160

 

5

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

(Implementation Guidance on Accounting Standard for Fair Value Measurement)

“Implementation Guidance on Accounting Standard for Fair Value Measurement” (Accounting Standards Board of Japan Guidance No. 31, June 17, 2021) (the “Implementation Guidance for Fair Value Measurement”) has been applied from the beginning of the quarter ended June 30, 2022. In accordance with the transitional treatment set forth in paragraph 27-2 of the Implementation Guidance for Fair Value Measurement, MUFG has applied new accounting policies based on the Implementation Guidance for Fair Value Measurement prospectively.

There is no impact on our consolidated financial statements due to the application of this Guidelines.

(6) Additional Information

(Estimated impact of the COVID-19 pandemic and the Russia-Ukraine situation relating to allowance for credit losses)

The process of calculating allowance for credit losses in our principal consolidated domestic banking subsidiaries involves various estimates such as determination of counterparty credit ratings which are based on evaluation and classification of counterparties’ debt-service capacity, assessment of the value of collateral provided by borrowers, and adjustments for future loss projections and other factors to the loss rates calculated based on historical credit loss experience.

Among these, internal credit ratings are assigned to counterparties based on qualitative factors such as the current and expected future business environment of the industry to which they belong as well as their management and funding risks in addition to quantitative financial evaluations through an analysis of their financial results. In particular, the prolonged COVID- 19 pandemic and the uncertainty in the business environment caused by the Russia-Ukraine situation have had a significant impact on the financial position and operating results of certain counterparties. Determination of internal credit ratings for these counterparties may be highly dependent on our assessment of the prospects of improvements in their operating results and their ability to continue as going concerns.

When calculating allowance for credit losses, MUFG Bank, Ltd., our principal consolidated domestic banking subsidiary, determines expected loss rates primarily by calculating a rate of loss based on a historical average of the credit loss rate or a historical average of the default probability derived from actual credit loss experience or actual bankruptcy experience and making necessary adjustments based on future projections and other factors. The subsidiary makes such adjustments based on future loss projections and other factors to loss rates calculated based on historical loss experience, when and to the extent such adjustments are deemed appropriate, by taking into account the rate of increase in the credit loss rate or the default probability in a more recent period, additional expected losses and other factors, especially in light of the prolonged COVID-19 pandemic and the Russia-Ukraine situation. The amount of impact of these adjustments was ¥67,028 million as of June 30, 2022 (¥77,572 million as of March 31, 2022).

In addition, certain overseas subsidiaries which apply Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) have adopted Accounting Standards Codification (“ASC”) Topic 326, “Financial Instruments—Credit losses,” issued by the Financial Accounting Standards Board and provide for allowance for credit losses by estimating credit losses currently expected for the remaining term of the relevant contracts. Expected credit losses are calculated using a quantitative model that reflects economic forecast scenarios based on macroeconomic variables. The calculation process includes determination of macroeconomic variables used in multiple economic forecast scenarios and the weightings applied to each economic forecast scenario. Expected credit losses are adjusted for qualitative factors to compensate for expected credit losses that are not reflected in a quantitative model. No allowance for credit losses was recorded for the loans reclassified as loans held for sale in connection with the execution of the Share Purchase Agreement pursuant to which all of the shares of MUFG Union Bank, N.A. (“MUB”) held by MUFG Americas Holdings Corporation (“MUAH”) will be sold to U.S. Bancorp because these loans are measured at fair value in accordance with ASC Topic 310, “Receivables”.

Significant assumptions used in our calculation of allowance for credit losses, including those described above, are subject to uncertainty. In particular, certain counterparties’ prospects of improvements in their operating results and expectations as to their ability to continue as going concerns, and adjustments to the rate of loss calculated based on actual experience for future projections and other factors, as well as determination of the macroeconomic variables used in, and the weightings applied to, multiple economic forecast scenarios, and adjustments thereto for qualitative factors, by certain subsidiaries which apply U.S. GAAP, are based on estimation relating to the economic environment with respect to which objective data are not readily available.

 

6

Mitsubishi UFJ Financial Group, Inc.

 

The outlook relating to the COVID-19 pandemic and the Russia-Ukraine situation, which are expected to further impact our counterparties’ operating environment and the economic environment, remains subject to significant uncertainty. Accordingly, we make certain assumptions, including that, although the impact of the COVID-19 pandemic will continue, economic conditions will be on a gradually improving trend, with economic activity resuming while infection control measures are implemented, and that the uncertainty in the business environment caused by the Russia-Ukraine situation will remain. The recorded allowance for credit losses represents our best estimation made in a manner designed to ensure objectivity and rationality.

For the three-month period ended June 30, 2022, the assumptions for making estimates relating to allowance 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 sufficiently significant 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, 2022 and subsequent reporting periods due to developments affecting the impact of the COVID-19 pandemic and the Russia-Ukraine situation on the financial performance of counterparties or on the economic environment.

(Valuation losses of a foreign subsidiary which are reflected in MUFG’s consolidated financial statements as of the end of and for the first quarter of the fiscal year ending March 31, 2023, and which are expected to be reflected in MUFG’s consolidated financial statements as of the end of and for the first half of the fiscal year ending March 31, 2023)

In connection with the planned sale of the shares in MUB, MUAH recognized an aggregate of ¥271,288 million of losses for the quarter ended March 31, 2022, primarily in accordance with ASC Topic 326, “Financial Instruments—Credit losses,” and ASC Topic 310, “Receivables,” issued by the FASB. Of the aggregate losses, MUAH recorded ¥217,761 million of valuation losses related to securities held for sale as Other operating expenses and ¥44,472 million of valuation losses related to loans held for sale as Other ordinary expenses. All of the losses recognized by MUAH are reflected in MUFG’s consolidated financial statements as of the end of and for the first quarter of the fiscal year ending March 31, 2023.

In connection with the same transaction, it is currently estimated that MUAH will recognize an aggregate of approximately ¥360 billion of losses for the quarter ended June 30, 2022. It is also currently estimated that, of the aggregate estimated losses, MUAH will record approximately ¥170 billion of valuation losses related to securities held for sale as Other operating expenses and approximately ¥190 billion of valuation losses related to loans held for sale as Other ordinary expenses. All of the losses recognized by MUAH are expected to be reflected in MUFG’s consolidated financial statements as of the end of and for the first half of the fiscal year ending March 31, 2023.

 

7

 

 

 

 

Selected Financial Information

under Japanese GAAP

For the Three Months Ended June 30, 2022

 

 

 

 

 

 

 

Mitsubishi UFJ Financial Group, Inc.

Mitsubishi UFJ Financial Group, Inc.

[Contents]               

 

1. Financial Results		[MUFG Consolidated]*1[BK and TB Combined ]*2*3*4 [BK Non-consolidated][TB Non-consolidated]			1
2. Loans to Be Disclosed under the Banking Act and the Financial Reconstruction Act (the “FRA”)		[MUFG Consolidated] [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.

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, 2022   (A)				June 30, 2021   (B)
Gross profits			1,124,813				957,131				167,682
Gross profits before credit costs for trust accounts			1,124,813				957,131				167,682
Net interest income			986,884				496,949				489,934
Trust fees			35,524				35,508				16
Credit costs for trust accounts (1)			—				—				—
Net fees and commissions			333,626				329,795				3,830
Net trading profits			35,510				54,337				(18,826	)
Net other operating profits			(266,731	)			40,540				(307,272	)
Net gains (losses) on debt securities			(406,103	)			38,777				(444,880	)
General and administrative expenses			699,628				673,678				25,949
Amortization of goodwill			4,873				4,486				387
Net operating profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill			430,059				287,938				142,120
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses			425,185				283,452				141,732
Provision for general allowance for credit losses (2)			11,235				—				11,235
Net operating profits*1			436,420				283,452				152,968
Net non-recurring gains (losses)			(173,458	)			176,871				(350,330	)
Credit costs (3)			(125,189	)			(34,696	)			(90,492	)
Losses on loan write-offs*2			(82,599	)			(32,323	)			(50,276	)
Provision for specific allowance for credit losses			(44,787	)			—				(44,787	)
Other credit costs			2,197				(2,373	)			4,570
Reversal of allowance for credit losses (4)			—				8,339				(8,339	)
Reversal of reserve for contingent losses included in credit costs (5)			19,016				—				19,016
Gains on loans written-off (6)			20,962				21,213				(250	)
Net gains (losses) on equity securities			19,020				66,049				(47,029	)
Gains on sales of equity securities			73,709				76,049				(2,339	)
Losses on sales of equity securities			(8,215	)			(6,836	)			(1,379	)
Losses on write-down of equity securities			(46,473	)			(3,163	)			(43,309	)
Equity in earnings of equity method investees			123,039				119,475				3,563
Other non-recurring gains (losses)*2			(230,307	)			(3,509	)			(226,797	)
Ordinary profits			262,961				460,323				(197,362	)
Net extraordinary gains (losses)			(21,918	)			36,446				(58,365	)
Net gains (losses) on disposition of fixed assets			2,550				7,062				(4,511	)
Losses on impairment of fixed assets			(732	)			(7,482	)			6,749
Net gains (losses) on change in equity			(23,711	)			36,867				(60,578	)
Profits before income taxes			241,043				496,770				(255,727	)
Income taxes-current			102,529				62,948				39,580
Income taxes-deferred			4,589				30,830				(26,240	)
Total taxes			107,119				93,779				13,340
Profits			133,924				402,991				(269,067	)
Profits attributable to non-controlling interests			20,238				19,909				329
Profits attributable to owners of parent			113,685				383,082				(269,396	)
Note:
*1. 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   *2. In connection with the planned sale of the shares in MUFG Union Bank, N.A. (“MUB”), an aggregate of ¥271,288 million of losses were recognized primarily in accordance with Accounting Standards Codification (“ASC”) Topic 326, “Financial Instruments—Credit losses,” and ASC Topic 310, “Receivables.” These losses consist mainly of ¥217,761 million of valuation losses related to securities held for sale, which are included in Other non-recurring gains (losses), and ¥44,472 million of valuation losses related to loans held for sale, which are included in Write-offs of loans.
(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)			(73,975	)			(5,143	)			(68,831	)

 

1

Mitsubishi UFJ Financial Group, Inc.

 

BK and TB Combined

 

		(in millions of yen)
		For the three months ended								Increase         (Decrease) (A) - (B)
		June 30, 2022   (A)				June 30, 2021   (B)
Gross profits			615,704				498,226				117,477
Gross profits before credit costs for trust accounts			615,704				498,226				117,477
Net interest income			767,859				306,538				461,321
Trust fees			28,247				28,893				(646	)
Credit costs for trust accounts (1)			—				—				—
Net fees and commissions			122,347				112,839				9,508
Net trading profits			(2,353	)			16,237				(18,591	)
Net other operating profits			(300,396	)			33,717				(334,114	)
Net gains (losses) on debt securities			(406,512	)			36,099				(442,612	)
General and administrative expenses			330,337				326,406				3,931
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses			285,366				171,820				113,546
Provision for general allowance for credit losses (2)			—				—				—
Net operating profits			285,366				171,820				113,546
Net non-recurring gains (losses)			52,443				87,890				(35,446	)
Credit costs (3)			(19,235	)			(6,557	)			(12,677	)
Reversal of allowance for credit losses (4)			19,546				21,806				(2,259	)
Reversal of reserve for contingent losses included in credit costs (5)			18,624				—				18,624
Gains on loans written-off (6)			2,310				3,909				(1,598	)
Net gains (losses) on equity securities			17,192				63,740				(46,547	)
Gains on sales of equity securities			72,650				73,935				(1,285	)
Losses on sales of equity securities			(8,385	)			(6,924	)			(1,461	)
Losses on write-down of equity securities			(47,072	)			(3,271	)			(43,801	)
Other non-recurring gains (losses)			14,004				4,991				9,012
Ordinary profits			337,810				259,710				78,099
Net extraordinary gains (losses)			1,682				1,810				(128	)
Income before income taxes			339,493				261,521				77,971
Income taxes-current			72,894				41,721				31,172
Income taxes-deferred			17,531				16,080				1,450
Total taxes			90,426				57,802				32,623
Net income			249,066				203,719				45,347
(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)			21,246				19,158				2,088
Credit costs for trust accounts			—				—				—
Provision for general allowance for credit losses			28,254				16,162				12,092
Provision for special allowance for credit losses			(13,511	)			7,993				(21,504	)
Allowance for credit to specific foreign borrowers			4,802				(2,349	)			7,152
Losses on loans write-offs			(15,799	)			(5,374	)			(10,424	)
Provision for contingent losses included in credit costs			18,607				(724	)			19,332
Gains on loans written-off			2,310				3,909				(1,598	)
Losses on sales of other loans, etc.			(3,417	)			(457	)			(2,960	)
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses, excluding net gains (losses) on debt securities			691,879				135,720				556,158
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			247,659				107,813				139,846

 

2

Mitsubishi UFJ Financial Group, Inc.

 

BK Non-consolidated

 

		(in millions of yen)
		For the three months ended								Increase         (Decrease) (A) - (B)
		June 30, 2022   (A)				June 30, 2021   (B)
Gross profits			485,208				384,460				100,748
Net interest income			502,371				241,443				260,927
Net fees and commissions			100,590				89,770				10,819
Net trading profits			19,630				11,021				8,608
Net other operating profits			(137,383	)			42,223				(179,607	)
Net gains (losses) on debt securities			(220,855	)			39,708				(260,563	)
General and administrative expenses			280,150				278,185				1,965
Amortization of goodwill			404				387				16
Net operating profits before provision for general allowance for credit losses and amortization of goodwill			205,462				106,662				98,799
Net operating profits before provision for general allowance for credit losses			205,057				106,274				98,783
Provision for general allowance for credit losses (1)			—				—				—
Net operating profits			205,057				106,274				98,783
Net non-recurring gains (losses)			47,048				78,581				(31,533	)
Credit costs (2)			(19,217	)			(6,458	)			(12,758	)
Reversal of allowance for credit losses (3)			19,413				21,748				(2,335	)
Reversal of reserve for contingent losses included in credit costs (4)			18,624				—				18,624
Gains on loans written-off (5)			2,310				3,909				(1,598	)
Net gains (losses) on equity securities			12,923				54,238				(41,315	)
Gains on sales of equity securities			67,520				64,018				3,502
Losses on sales of equity securities			(7,882	)			(6,903	)			(978	)
Losses on write-down of equity securities			(46,714	)			(2,875	)			(43,838	)
Other non-recurring gains (losses)			12,993				5,142				7,850
Ordinary profits			252,105				184,855				67,249
Net extraordinary gains (losses)			1,414				1,957				(542	)
Income before income taxes			253,520				186,813				66,707
Income taxes-current			53,874				34,764				19,110
Income taxes-deferred			18,667				11,154				7,513
Total taxes			72,542				45,918				26,623
Net income			180,977				140,894				40,083
(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)			21,131				19,199				1,931
Provision for general allowance for credit losses			28,121				16,161				11,960
Provision for special allowance for credit losses			(13,511	)			7,937				(21,448	)
Allowance for credit to specific foreign borrowers			4,802				(2,349	)			7,152
Losses on loans write-off			(15,799	)			(5,374	)			(10,424	)
Provision for contingent losses included in credit costs			18,624				(626	)			19,251
Gains on loans written-off			2,310				3,909				(1,598	)
Losses on sales of other loans, etc.			(3,417	)			(457	)			(2,960	)
Net operating profits before provision for general allowance for credit losses, excluding net gains (losses) on debt securities			425,912				66,566				359,346
Net operating profits before provision for general allowance for credit losses, excluding net gains (losses) on debt securities and investment trusts cancellation			187,050				40,417				146,633

 

3

Mitsubishi UFJ Financial Group, Inc.

 

TB Non-consolidated

 

		(in millions of yen)
		For the three months ended								Increase         (Decrease) (A) - (B)
		June 30, 2022   (A)				June 30, 2021   (B)
Gross profits			130,495				113,766				16,729
Gross profits before credit costs for trust accounts			130,495				113,766				16,729
Trust fees			28,247				28,893				(646	)
Credit costs for trust accounts (1)			—				—				—
Net interest income			265,488				65,094				200,393
Net fees and commissions			21,757				23,068				(1,311	)
Net trading profits			(21,983	)			5,216				(27,199	)
Net other operating profits			(163,013	)			(8,506	)			(154,506	)
Net gains (losses) on debt securities			(185,657	)			(3,608	)			(182,049	)
General and administrative expenses			50,186				48,220				1,965
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses			80,309				65,546				14,763
Provision for general allowance for credit losses (2)			—				—				—
Net operating profits			80,309				65,546				14,763
Net non-recurring gains (losses)			5,395				9,308				(3,913	)
Credit costs (3)			(17	)			(98	)			81
Reversal of allowance for credit losses (4)			133				57				76
Reversal of reserve for contingent losses included in credit costs (5)			—				—				—
Gains on loans written-off (6)			0				0				0
Net gains (losses) on equity securities			4,268				9,501				(5,232	)
Gains on sales of equity securities			5,129				9,917				(4,788	)
Losses on sales of equity securities			(502	)			(20	)			(482	)
Losses on write-down of equity securities			(358	)			(395	)			37
Other non-recurring gains (losses)			1,010				(151	)			1,162
Ordinary profits			85,704				74,854				10,849
Net extraordinary gains (losses)			267				(146	)			414
Income before income taxes			85,972				74,708				11,264
Income taxes-current			19,019				6,957				12,062
Income taxes-deferred			(1,136	)			4,926				(6,062	)
Total taxes			17,883				11,883				5,999
Net income			68,088				62,824				5,264
(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)			115				(41	)			157
Credit costs for trust accounts			—				—				—
Provision for general allowance for credit losses			133				1				132
Provision for special allowance for credit losses			—				56				(56	)
Allowance for credit to specific foreign borrowers			—				—				—
Losses on loans write-offs			—				—				—
Provision for contingent losses included in credit costs			(17	)			(98	)			81
Gains on loans written-off			0				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			265,966				69,154				196,812
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			60,608				67,395				(6,786	)

 

4

Mitsubishi UFJ Financial Group, Inc.

 

2. Loans to Be Disclosed under the Banking Act and the Financial Reconstruction Act (the “FRA”)

MUFG Consolidated

(after write-offs)

 

		(in millions of yen)
		As of June 30, 2022				As of March 31, 2022
Bankrupt or De facto Bankrupt			265,841				252,148
Doubtful			694,009				799,214
Special Attention			464,387				420,453
Accruing loans contractually past due 3 months or more			22,423				12,104
Restructured loans			441,963				408,348
Subtotal (A)			1,424,238				1,471,816
Normal(B)			127,567,448				122,326,614
Total loans (C=A+B)			128,991,686				123,798,430
Non-performing loans ratio (A)/(C)			1.10	%			1.18	%

BK and TB Combined including Trust Account

(after write-offs)

 

		(in millions of yen)
		As of June 30, 2022				As of March 31, 2022
Bankrupt or De facto Bankrupt			114,916				105,939
Doubtful			495,441				602,884
Special Attention			314,630				282,145
Accruing loans contractually past due 3 months or more			12,607				5,601
Restructured loans			302,023				276,544
Subtotal (A)			924,988				990,968
Normal(B)			106,313,922				102,429,934
Total loans (C=A+B)			107,238,910				103,420,902
Non-performing loans ratio (A)/(C)			0.86	%			0.95	%

BK Non-consolidated

(after write-offs)

 

		(in millions of yen)
		As of June 30, 2022				As of March 31, 2022
Bankrupt or De facto Bankrupt			114,773				105,796
Doubtful			493,821				601,264
Special Attention			314,630				282,145
Accruing loans contractually past due 3 months or more			12,607				5,601
Restructured loans			302,023				276,544
Subtotal (A)			923,225				989,206
Normal(B)			103,229,286				99,472,730
Total loans (C=A+B)			104,152,512				100,461,936
Non-performing loans ratio (A)/(C)			0.88	%			0.98	%

TB Non-consolidated

(after write-offs)

 

		(in millions of yen)
		As of June 30, 2022				As of March 31, 2022
Bankrupt or De facto Bankrupt			142				142
Doubtful			1,618				1,618
Special Attention			—				—
Accruing loans contractually past due 3 months or more			—				—
Restructured loans			—				—
Subtotal (A)			1,761				1,761
Normal(B)			3,080,159				2,952,474
Total loans (C=A+B)			3,081,920				2,954,236
Non-performing loans ratio (A)/(C)			0.05	%			0.05	%

TB Non-consolidated: Trust Account

(after write-offs)

 

		(in millions of yen)
		As of June 30, 2022				As of March 31, 2022
Bankrupt or De facto Bankrupt			—				—
Doubtful			1				1
Special Attention			—				—
Accruing loans contractually past due 3 months or more			—				—
Restructured loans			—				—
Subtotal (A)			1				1
Normal(B)			4,475				4,728
Total loans (C=A+B)			4,477				4,730
Non-performing loans ratio (A)/(C)			0.03	%			0.03	%

 

5

Mitsubishi UFJ Financial Group, Inc.

 

3. Securities

MUFG Consolidated

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

 

		(in millions of yen)
		As of June 30, 2022								As of March 31, 2022
		Amount on consolidated balance sheet				Unrealized gains (losses)				Amount on consolidated balance sheet				Unrealized gains (losses)
Debt securities being held to maturity			10,418,240				(43,107	)			4,595,108				14,236
		(in millions of yen)
		As of June 30, 2022								As of March 31, 2022
		Amount on consolidated balance sheet				Unrealized gains (losses)				Amount on consolidated balance sheet				Unrealized gains (losses)
Available-for-sale securities			72,252,183				1,395,349				74,909,679				2,391,884
Domestic equity securities			4,376,347				2,700,600				4,613,704				2,914,100
Domestic bonds			39,228,416				(123,745	)			40,433,641				(61,811	)
Other			28,647,419				(1,181,504	)			29,862,332				(460,404	)
Foreign equity securities			201,978				28,415				218,599				27,791
Foreign bonds			20,567,250				(1,218,159	)			22,030,527				(852,866	)
Other			7,878,191				8,239				7,613,205				364,670

Note:

*

In connection with the planned sale of the shares in MUB, unrealized losses on such securities which are reported at fair value on the consolidated balance sheet are reported as valuation losses in accordance with ASC Topic 326, “Financial Instruments—Credit losses.” Therefore, Unrealized gains (losses) as of June 30, 2022 in the above table do not include ¥217,761 million of such valuation losses.

 

6

Mitsubishi UFJ Financial Group, Inc.

 

BK Non-consolidated

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

 

		(in millions of yen)
		As of June 30, 2022								As of March 31, 2022
		Amount on balance sheet				Unrealized gains (losses)				Amount on balance sheet				Unrealized gains (losses)
Debt securities being held to maturity			7,984,748				(32,491	)			2,728,406				297
Stocks of subsidiaries and affiliates			625,594				488,533				625,594				535,950
		(in millions of yen)
		As of June 30, 2022								As of March 31, 2022
		Amount on balance sheet				Unrealized gains (losses)				Amount on balance sheet				Unrealized gains (losses)
Available-for-sale securities			53,914,292				1,222,203				55,874,928				1,904,848
Domestic equity securities			3,655,687				2,201,413				3,855,125				2,380,640
Domestic bonds			37,222,265				(91,499	)			37,547,364				(42,152	)
Other			13,036,340				(887,710	)			14,472,439				(433,638	)
Foreign equity securities			163,847				20,231				165,955				18,877
Foreign bonds			8,087,539				(813,143	)			9,852,226				(581,375	)
Other			4,784,953				(94,798	)			4,454,257				128,859

 

7

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, 2022								As of March 31, 2022
		Amount on balance sheet				Unrealized gains (losses)				Amount on balance sheet				Unrealized gains (losses)
Debt securities being held to maturity			2,329,468				(10,244	)			1,770,646				10,587
Stocks of subsidiaries and affiliates			80,048				4,622				68,203				4,512
		(in millions of yen)
		As of June 30, 2022								As of March 31, 2022
		Amount on balance sheet				Unrealized gains (losses)				Amount on balance sheet				Unrealized gains (losses)
Available-for-sale securities			11,527,252				199,324				12,685,391				471,160
Domestic equity securities			758,378				449,654				790,399				477,909
Domestic bonds			1,964,316				(32,372	)			2,852,749				(19,783	)
Other			8,804,557				(217,957	)			9,042,242				13,035
Foreign equity securities			79				62				63				46
Foreign bonds			6,551,207				(315,405	)			6,631,313				(211,307	)
Other			2,253,270				97,385				2,410,865				224,295

 

8