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As filed with the Securities and Exchange Commission on July 30, 2024
UNITED STATESSECURITIES AND EXCHANGE COMMISSIONWASHINGTON, D.C. 20549
FORM 20-F☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF
THE SECURITIES EXCHANGE ACT OF 1934
OR
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended March 31, 2024
OR
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
OR☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of event requiring this shell company report
Commission file number 000-54189
KABUSHIKI KAISHA MITSUBISHI UFJ FINANCIAL GROUP(Exact name of Registrant as specified in its charter)
MITSUBISHI UFJ FINANCIAL GROUP, INC.
(Translation of Registrant’s name into English)
Japan(Jurisdiction of incorporation or organization)
4-5, Marunouchi 1-chome
Chiyoda-ku, Tokyo 100-8330
Japan(Address of principal executive offices)
Masahisa Takahashi, +81-3-3240-8111, usgaap_reporting@mufg.jp, 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212,
Japan(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Title of each class

Tradingsymbol(s)Name of each exchange on which registered

MUFG

New York Stock Exchange

Common stock, without par value ................................................................................................................................................
American depositary shares, each of which represents one share of common stock ...................................................................

New York Stock Exchange (1)(1) The listing of the registrant’s common stock on the New York Stock Exchange is for technical purposes only and without trading
privileges.
Securities registered or to be registered pursuant to Section 12(g) of the Act: None
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None
Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period
covered by the annual report:
As of March 31, 2024, 12,337,710,920 shares of common stock (including 610,482,347 shares of common stock held by theregistrant and its consolidated subsidiaries as treasury stock)
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes ☒ No ☐If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to
Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes ☐ No ☒Note—Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 from their obligations under those Sections.
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),and (2) has been subject to such filing requirements for the past 90 days.

Table of ContentsYes ☒ No ☐Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that theregistrant was required to submit such files).
Yes ☒ No ☐Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an
emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule12b-2 of the Exchange Act.
Large accelerated filer☒

Accelerated filer☐ Non-accelerated filer☐

Emerging growth company☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if
the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards† provided pursuant to Section 13(a) of the Exchange Act. ☐† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards
Board to its Accounting Standards Codification after April 5, 2012.
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of theeffectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by
the registered public accounting firm that prepared or issued its audit report.
Yes ☒ No ☐If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of theregistrant included in the filing reflect the correction of an error to previously issued financial statements. ☒Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentivebased compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to§240.10D-1(b). ☒Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in thisfiling:U.S. GAAP☒ International Financial Reporting Standards as issued by theInternational Accounting Standards Board

☐

Other

☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item theregistrant has elected to follow.
Item 17 ☐ Item 18 ☐If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the
Exchange Act).
Yes ☐ No ☒

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EXPLANATORY NOTEThis annual report includes a restatement of our consolidated financial statements for the fiscal year ended March 31, 2023,
which were included in our annual report on Form 20-F for the fiscal year ended March 31, 2023, filed with the U.S. Securities andExchange Commission, or the SEC, on July 24, 2023. The restatement relates to a correction of an error related to the accounting
treatment for the elimination of the three-month reporting lag in connection with our sale of MUFG Union Bank, N.A. that wascompleted on December 1, 2022.
Investors and other readers should rely only on the financial information and other related disclosures regarding the fiscal year
ended March 31, 2023 in this annual report and in any other future filings with the SEC (as applicable) and should not rely on any
previously issued or filed reports, press releases, presentations or similar communications containing financial information and otherrelated disclosures regarding the same reporting period.
More specifically, prior to the sale of MUFG Union Bank, we treated the December 31 fiscal year end of MUFG Union Bank ascoterminous with MUFG’s fiscal year end of March 31 and consolidated the subsidiary on a three-month lag pursuant to ASC
810-10-45-12. Upon deconsolidation of MUFG Union Bank, the profit, loss and other comprehensive income for the three-month
period preceding the sale date were not reflected on our consolidated statements of operations and comprehensive income but instead
were recognized as direct adjustments to the retained earnings and accumulated other comprehensive income, respectively, as a
reduction of the carrying value of MUFG Union Bank, as previously reported in our consolidated financial statements for the fiscal
year ended March 31, 2023.
Subsequent to the issuance of our March 2023 financial statements, we received comments on the financial statements from thestaff of the SEC. In response to these comments, we concluded that the carrying basis of MUFG Union Bank used in thedeconsolidation, and resulting measurement of the gain on sale, should have been based on the amounts as of the date three months
prior to the sale date. Correction of this error results in amounts previously recognized as direct adjustments to equity, including
retained earnings of ¥223,273 million, net of tax, being recognized as reductions of the gain on sale.
This restatement does not affect our financial statements prepared in accordance with accounting principles generally acceptedin Japan, or Japanese GAAP, and thus does not affect our regulatory capital and other ratios calculated based on Japanese GAAP
information.
Management concluded that our internal control over financial reporting was not effective as of March 31, 2024, due to amaterial weakness which management identified relating to a deficiency in the design of an existing internal control over the review
and approval of non-routine U.S. GAAP accounting treatment considerations, which led to the restatement. The error resulting in therestatement of our March 31, 2023 financial statements was identified after March 31, 2024 and, therefore, management concluded
that our internal control over financial reporting was also not effective as of March 31, 2023 and that the material weakness remained
unremediated as of March 31, 2024. In addition, due to the material weakness, our Chief Executive Officer, or CEO, and Chief
Financial Officer, or CFO, concluded that our disclosure controls and procedures were not effective as of March 31, 2024 and 2023.
See Note 1A to our consolidated financial statements included in this annual report for details of the nature of the identified
accounting error and “Item 15 Controls and Procedures” for the identified material weakness and our remediation measures to address
the material weakness.

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TABLE OF CONTENTS
Page

Forward-Looking Statements .........................................................................................................................................................
Item 1.
Identity of Directors, Senior Management and Advisers ............................................................................................
Item 2.
Offer Statistics and Expected Timetable .....................................................................................................................
Item 3.
Key Information...........................................................................................................................................................
Item 4.
Information on the Company .......................................................................................................................................
Item 4A. Unresolved Staff Comments ........................................................................................................................................
Item 5.
Operating and Financial Review and Prospects ..........................................................................................................
Item 6.
Directors, Senior Management and Employees...........................................................................................................
Item 7.
Major Shareholders and Related Party Transactions ...................................................................................................
Item 8.
Financial Information ..................................................................................................................................................
Item 9.
The Offer and Listing ..................................................................................................................................................
Item 10.
Additional Information ................................................................................................................................................
Item 11.
Quantitative and Qualitative Disclosures about Credit, Market and Other Risk .........................................................
Item 12.
Description of Securities Other than Equity Securities ...............................................................................................

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5
5
5
18
50
50
96
118
119
120
121
130
149

Item 13.
Defaults, Dividend Arrearages and Delinquencies ......................................................................................................
Item 14.
Material Modifications to the Rights of Security Holders and Use of Proceeds .........................................................
Item 15.
Controls and Procedures ..............................................................................................................................................
Item 16A. Audit Committee Financial Expert ..............................................................................................................................
Item 16B. Code of Ethics..............................................................................................................................................................
Item 16C. Principal Accountant Fees and Services ......................................................................................................................
Item 16D. Exemptions from the Listing Standards for Audit Committees ..................................................................................
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers......................................................................
Item 16F. Change in Registrant’s Certifying Accountant ............................................................................................................
Item 16G. Corporate Governance .................................................................................................................................................
Item 16H. Mine Safety Disclosure................................................................................................................................................
Item 16I
Disclosure Regarding Foreign Jurisdictions That Prevent Inspections .......................................................................
Item 16J
Insider Trading Policies ...............................................................................................................................................
Item 16K Cybersecurity ...............................................................................................................................................................
Item 17.
Financial Statements ....................................................................................................................................................
Item 18.
Financial Statements ....................................................................................................................................................
Item 19.
Exhibits ........................................................................................................................................................................
Selected Statistical Data ..................................................................................................................................................................
Consolidated Financial Statements .................................................................................................................................................

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154
154
155
155
156
156
158
158
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158
160
160
160
A-1
F-1

For purposes of this Annual Report, we have presented our consolidated financial statements in accordance with accounting
principles generally accepted in the United States, or U.S. GAAP, except for risk-adjusted capital ratios, capital components, riskweighted assets, business segment financial information and some other specifically identified information.
In this Annual Report, unless otherwise indicated or the context otherwise requires, all figures are rounded to the figures shown
except for the capital ratios, capital components, risk-weighted assets, leverage ratios, liquidity coverage ratios and net stable funding
ratios of MUFG and its domestic subsidiaries, which are rounded down and truncated to the figures shown. In some cases, figures
presented in tables are adjusted to match the sum of the figures with the total amount, and such figures are also referred to in therelated text.
When we refer in this Annual Report to “MUFG,” “we,” “us,” “our” and the “Group,” we generally mean Mitsubishi UFJ
Financial Group, Inc. and its consolidated subsidiaries, but from time to time as the context requires, we mean Mitsubishi UFJ
Financial Group, Inc. as an individual legal entity. In addition, our “commercial banking subsidiaries” refers to MUFG Bank, Ltd. and,as the context requires, its consolidated subsidiaries engaged in the commercial banking business. Our “trust banking subsidiaries”
refers to Mitsubishi UFJ Trust and Banking Corporation and, as the context requires, its consolidated subsidiaries engaged in the trust1

Table of Contentsbanking business. Our “banking subsidiaries” refers to MUFG Bank and Mitsubishi UFJ Trust and Banking and, as the context
requires, their respective consolidated subsidiaries engaged in the banking business. Our “securities subsidiaries” refers to Mitsubishi
UFJ Securities Holdings Co., Ltd., and, as the context requires, its consolidated subsidiaries engaged in the securities business.
References to “MUAH” are to MUFG Americas Holdings Corporation, as a single entity, as well as to MUFG Americas
Holdings and its consolidated subsidiaries, as the context requires.
References to “Krungsri” are to Bank of Ayudhya Public Company Limited, as a single entity, as well as to Bank of Ayudhya
Public Company Limited and its consolidated subsidiaries, as the context requires.
References to “Bank Danamon” are to PT Bank Danamon Indonesia, Tbk., as a single entity, as well as to PT Bank Danamon
Indonesia, Tbk. and its consolidated subsidiaries, as the context requires.
References to “First Sentier Investors” are to First Sentier Investors Holdings Pty Ltd., as a single entity, as well as to First
Sentier Investors Holdings Pty Ltd. and its consolidated subsidiaries, as the context requires.
References to the “FSA” are to the Financial Services Agency, an agency of the Cabinet Office of Japan.
Our fiscal year ends on March 31 of each year. References to years not specified as being fiscal years are to calendar years.

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Forward-Looking Statements
We may from time to time make written or oral forward-looking statements. Written forward-looking statements may appear in
documents filed with, or submitted to, the U.S. Securities and Exchange Commission, or SEC, including this Annual Report, and otherreports to shareholders and other communications.
The U.S. Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking information to
encourage companies to provide prospective information about themselves. We rely on this safe harbor in making these forwardlooking statements.
Forward-looking statements appear in a number of places in this Annual Report and include statements regarding our current
intent, business plan, targets (including, but not limited to, our sustainability-related targets), belief or expectations or the current
belief or current expectations of our management with respect to our results of operations and financial condition, including, among
other matters, our problem loans and loan losses. In many, but not all cases, we use words such as “anticipate,” “aim,” “believe,”“estimate,” “expect,” “intend,” “plan,” “probability,” “risk,” “will,” “may” and similar expressions, as they relate to us or ourmanagement, to identify forward-looking statements. These statements reflect our current views with respect to future events and are
subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying
assumptions prove incorrect, actual results may vary materially from those which are aimed, anticipated, believed, estimated,
expected, intended or planned, or otherwise stated.
Our forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may
differ from those in the forward-looking statements as a result of various factors. Important factors that could cause such differences
include, without limitation,•

deterioration in economic conditions in Japan and around the world,•

external events, such as natural disasters and other health pandemics or epidemics, terrorism, and geopolitical and social
conflicts,•

climate change and resulting physical damages and changes in the business environment,•competitive pressures resulting from regulatory and market changes,•

failure to implement our business expansion strategy as planned and to manage new or expanded risks that entail suchstrategy, as well as incurrence of impairment or valuation losses on our acquired assets,•

negative developments relating to our strategic alliance with Morgan Stanley,•

failure to maintain our capital ratios and other regulatory ratios above minimum required levels,•

significant unexpected increases in credit costs,•

financial difficulties of other financial institutions that affect the overall banking environment and their borrowers,•

fluctuations in interest rates, foreign currency exchange rates and stock prices,•

reduction in our ability to access or maintain liquidity,•

inability to effectively remediate the identified material weakness in our internal control over financial reporting orotherwise maintain effective internal controls in the future,•

failure to address regulatory or public concerns or to meet market or industry rules or standards, customer protection
requirements, or corporate behavior expectations,•cyber-attacks and other information security threats,•

problems with the proper functioning and development of information, communications and transaction management
systems,•transactions with counterparties in countries designated by the U.S. Department of State as state sponsors of terrorism,•

changes in laws, regulations, rules, policies, accounting standards or methods, voluntary codes of practices, andinterpretations,•changes in the business and regulatory environment for consumer finance companies,•

damage to our reputation resulting from our failure to prevent or properly address negative perceptions held by customers,
investors, regulators and the general public regarding us and our operations, and•other risks and uncertainties discussed in “Item 3.D. Key Information—Risk Factors,” “Item 4.B. Information on the
Company—Business Overview,” “Item 5. Operating and Financial Review and Prospects,” “Item 11. Quantitative andQualitative Disclosures about Credit, Market and Other Risk” and elsewhere in this Annual Report.
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Given these and other risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements,
which speak only as of the date of the filing of this Annual Report. We are under no obligation, and disclaim any obligation, to updateor alter our forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.

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Table of Contents
PART I
Item 1.

Identity of Directors, Senior Management and Advisers.

Not applicable.
Item 2.

Offer Statistics and Expected Timetable.

Not applicable.
Item 3.

Key Information.

A.

[Reserved]

B.

Capitalization and Indebtedness
Not applicable.

C.

Reasons for the Offer and Use of Proceeds
Not applicable.

D.

Risk Factors

Investing in our securities involves a high degree of risk. You should carefully consider the risks described in this section, whichis intended to disclose all of the risks that we consider material based on the information currently available to us, as well as all theother information in this Annual Report, including our consolidated financial statements and related notes, “Item 5. Operating and
Financial Review and Prospects,” “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk” and“Selected Statistical Data.”
Our business, operating results and financial condition could be materially and adversely affected by any of the factors
discussed below. The trading price of our securities could decline due to any of these factors. This Annual Report also contains
forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated inthese forward-looking statements as a result of various factors, including those described in this section and elsewhere in this Annual
Report. See “Forward-Looking Statements.”
Risks Related to Our Business Environment
Because a large portion of our assets as well as our business operations are in Japan, we may incur losses if economic
conditions in Japan worsen.
Our performance is particularly affected by the general economic conditions of Japan where we are headquartered and conduct a
significant amount of our business. As of March 31, 2024, 64.8% of our total assets were related to Japanese domestic assets,
including Japanese national government and Japanese government agency bonds, which accounted for 61.5% of our total investment
securities portfolio and 9.7% of our total assets, respectively. Interest and non-interest income in Japan represented 38.3% of our totalinterest and non-interest income for the fiscal year ended March 31, 2024. Furthermore, as of March 31, 2024, our loans in Japanaccounted for 55.1% of our total loans outstanding.
There is significant uncertainty surrounding Japan’s economy. For example, Japan’s fiscal health and sovereign creditworthiness
may deteriorate if the Japanese government’s economic measures and the Bank of Japan’s monetary policies prove ineffective or
result in negative consequences. If the prices of Japanese government bonds decline rapidly, resulting in an unexpectedly sudden
increase in interest rates, our investment securities portfolio as well as our lending, borrowing, deposit-taking, trading and otheroperations may be negatively impacted. In addition, interest rates may suddenly increase if the Bank of Japan decides to further tighten
its monetary policy, or if there is a change in market expectations relating to any such decision.
Instability in the Japanese stock market and foreign currency exchange rates, particularly between the Japanese yen and othermajor currencies, may also have an adverse impact on our asset and liability management as well as our results of operations. Various
other factors, including international geopolitical conflicts, significant or prolonged inflationary or deflationary price trends, thedecreasing and aging demographics in Japan, stagnation or deterioration of economic and market conditions in other countries,
growing global competition and trade conflicts, may also have a material negative impact on the Japanese economy. For a detailed
5Table of Contents
discussion on the business environment in Japan and abroad, see “Item 5. Operating and Financial Review and Prospects—Business
Environment.”
Since our domestic loans in Japan accounted for a significant portion of our loan portfolio, deteriorating or stagnant economic
conditions in Japan may cause adverse effects on our financial results, such as increases in credit costs, as the credit quality of ourborrowers could deteriorate. Borrowers in particular industries may be adversely affected by disruptions in commodity supply chains,changes in economic behavior, trade restrictions and other consequences of geopolitical and geoeconomic conflicts, and other events
that are beyond the control of those that are affected. Our domestic loan portfolio may also be adversely affected by interest rate
fluctuations in Japan. For example, following the decision to end its negative interest rate policy in March 2024, the Bank of Japan
may further tighten its monetary policy, resulting in higher interest rates in Japan. As a result, our borrowers may experience
deterioration in their debt service capacity, and our credit costs may significantly increase. On the other hand, as the Bank of Japan has
set its policy rate at 0% to 0.1% and continues to purchase Japanese government bonds in the market, the yield on many financial
instruments and other market interest rates in Japan remains at low levels. If the Bank of Japan’s policy and measures are maintained
for an extended period, or if the Bank of Japan’s policy rate is lowered from the current level, market interest rates may decline, andour interest rate spread on our domestic loan portfolio may narrow, reducing our net interest income.
Our results of operations may be materially affected by deterioration of economic conditions in Japan and around the world.
Economic conditions in Japan and around the world may deteriorate due to various factors such as changes in the monetary andfiscal policies in major jurisdictions and the fiscal condition of major countries, rapid and significant fluctuations in foreign exchange
rates, global inflation and real estate market trends, and concerns and developments affecting financial institutions. Uncertainty over
the Japanese and global economies still remains because of such other factors as concerns over political developments in the UnitedStates, concerns over the U.S.-China conflict, geopolitical instabilities and conflicts, interruptions in international supply chains andtrade, and political turmoil in various regions around the world. As of March 31, 2024, based principally on the domicile of theobligors, assets related to the United States accounted for approximately 15.4% of our total assets, assets related to Asia and Oceania
excluding Japan accounted for approximately 9.8% of our total assets, and assets related to Europe accounted for approximately 5.9%of our total assets.
Worsening economic conditions in Japan and around the world may result in, among other things, impairment or valuation
losses on securities and other assets that we hold due to declines in the market value of such assets, an increase in our non-performing
loans and credit costs due to deterioration in borrowers’ business performance, a decrease in our profits due to deterioration in thecreditworthiness of counterparties in market transactions, a reduction in foreign currency funding liquidity, an increase in our foreign
currency funding costs, and an increase in the level of risk in the risk assets that we hold. Our profitability may be adversely affectedby various other factors, including a decline in our net interest income caused by such factors as changes in the monetary policies ofcentral banks in various jurisdictions. In addition, an economic downturn may result in a decline in new investments and business
transactions by customers due to stagnation in economic activity, weak consumer spending, diminished investor appetite for making
investments in uncertain financial markets, and a decrease in our assets under custody or management.
Our business operations are exposed to risks of natural disasters, terrorism, geopolitical conflicts and other disruptions
caused by external events.
As a major financial institution incorporated in Japan and operating in major international financial markets, our business
operations, ATMs and other information technology systems, personnel, and facilities and other physical assets are subject to the risksof earthquakes, typhoons, floods and other natural disasters, terrorism, geopolitical, political and social conflicts, health pandemics or
epidemics, and other disruptions caused by external events, which are beyond our control. Such external events may result in loss offacility and human and other resources, suspension or delay in all or part of our operations, inability to implement business strategic
measures or respond to changes in the market or regulatory environment as planned, and other disruptions to our operations. We may
also be required to incur significant costs and expenses, including those incurred for preventive or remedial measures, to deal with theconsequences of such external events. In addition, such external events may negatively impact the economic conditions in the markets
we or our customers operate. As a result, our business, operating results and financial condition may be materially and adversely
affected.
For example, geopolitical conflicts often lead to the imposition of economic and financial sanctions against certain banks,
companies and individuals by the governments of Japan, the United States, the European Union and other jurisdictions, resulting inincreased complexity in our compliance and control environment. Geopolitical tensions also often lead to increased risk of cyberattacks or other threats to the global financial systems. Geopolitical conflicts and tensions may hamper our ability to manage suchcomplexity or risk and may result in significant financial, reputational and other losses.
As with other Japanese companies, we are exposed to heightened risks of large-scale natural disasters, particularly earthquakes.
If a large-scale earthquake occurs in areas where our business function is concentrated, such as the Tokyo metropolitan area, or where6Table of Contents
the facilities, systems, networks and other infrastructure critical to our operations are located, our financial position and businessresults could be adversely affected.
Our risk management policies and procedures may be insufficient to address the consequences of these external events, resulting
in our inability to continue to operate a part or the whole of our business. In addition, our redundancy and backup measures and othermeasures to strengthen our operational resilience may not be sufficient to avoid a material disruption in our operations, and ourbusiness continuity framework and contingency plans may not address all eventualities that may occur in the event of a material
disruption caused by a large-scale natural disaster.
Climate change could have a material adverse impact on us and our clients.
We are exposed to risks of physical impacts of climate change and risks arising from the process of transitioning to a lesscarbon-dependent economy. Climate change-related physical risks include increased severity and frequency of adverse weather events,
such as extreme storms and flooding, and longer-term shifts in climate patterns, such as rising temperatures and sea levels and changes
in precipitation amount and distribution. Such physical risks may have adverse impacts on us, both directly on our business operations
and as a result of impacts on our borrowers and counterparties, such as declines in the value of loans, investments, real estate and otherassets, disruptions in business operations and economic activity, including supply chains, changes in prices of raw materials,
commodities and energy, and market volatility.
Transition risks include changes in regulations, market preferences and technologies toward a less carbon-dependent economy.
The possible adverse impacts of transition risks include asset devaluations, increased operational and compliance costs, and an
inability to meet regulatory or market expectations. For example, various jurisdictions in which we operate, including Japan, theUnited States including several states, and the European Union, have adopted or are considering adoption of disclosure and financial
reporting requirements, which vary in scope and other respects. Such regulatory requirements and stakeholder expectations may resultin increased regulatory compliance and litigation risks and costs. We and our borrowers and counterparties may also be unable toadapt product and service offerings, loan and investment portfolio management approaches, governance frameworks and practices, orother ways in which we conduct our business and manage our capital and risk profile to changes occurring in the course oftransitioning to a less carbon-dependent economy. These adverse impacts or perceptions or expectations of such impacts may result in
deterioration in the profitability, financial health, creditworthiness or capital adequacy of affected businesses, including us.
Because the timing and nature of climate change events and regulatory and market changes in reaction to them may be difficult
or impossible to predict, our risk management strategies may not be effective in mitigating climate change-related risk exposure.
Regulatory and market expectations regarding climate change continue to evolve rapidly and generate conflicting views andapproaches and may further develop in ways that diverge from our expectations or vary from market to market. The methodologies
and data used to monitor and manage climate change-related risks also continue to evolve and currently utilize information andestimates derived from information or factors that are currently available which may be revised or replaced. In light of these and otherdevelopments and uncertainties, we expect that climate change-related risks will increase over time.
We have defined and disclosed our aspirational goals and other information relating to climate change based on the standards
that have been adopted by us or are applicable to us. Such goals may prove to be considerably more costly or difficult than currently
expected, or even impossible, to achieve, particularly given the high degree of uncertainties surrounding climate change. Uncertainties
may further increase depending on the nature and extent of the involvement, cooperation or reaction of our borrowers, counterparties
and business partners as well as industry groups, governmental organizations and other stakeholders in or to our efforts to achieve
such goals. In addition, if our risk assessment and disclosure relating to climate change that we make and plan to enhance with theintent to be aligned with the recommendations of the Task Force on Climate-related Financial Disclosures, or TCFD, and otherstandards are deemed insufficient, if our measures designed to combat climate change or facilitate the transition to a less carbondependent economy do not proceed as planned, if our climate change-related risk management proves not to be as effective as
expected, if we fail, or are deemed to have failed, to comply with regulatory requirements relating to climate change, including risk
management, capital adequacy and disclosure requirements and standards, or if, as a result of any of the foregoing, we are considered
to be failing to fulfill our responsibility to society, then our corporate value may be impaired and our business, financial condition andresults of operations may be adversely affected.
Risks Related to Our Strategies and Our Major Investees
Our business may be adversely affected by competitive pressures, which have partly increased due to regulatory changes andrecent market changes in the financial industry domestically and globally.
Competition in the financial services industry may further intensify due to the increase in the number of non-financial
institutions entering the financial services industry with alternative services such as electronic settlement services as a result ofdevelopment of new technologies as well as significant changes in regulatory barriers. Competition may also further increase as other7

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global financial institutions enhance their competitive strength through development or adoption of such new technologies as well as
mergers, acquisitions, strategic alliances, and profit enhancement and other measures.
Under such circumstances, although we have been implementing various business strategies on a global basis designed tostrengthen our competitive position and profitability, our business, financial condition and results of operations may be adversely
affected if these strategies fail to produce the results we expect or if we are required to delay or otherwise change these strategies. Ourcompetitiveness may decline because of various factors, including where:•

the volume of loans made to borrowers cannot be maintained or does not increase as anticipated;•

our income from interest spreads on loans does not improve as anticipated;•the fair value of our financial assets fluctuate to a larger extent than anticipated;•

our fee income does not increase as much or quickly as we aim to do;•

our strategy to build a business infrastructure for new services and products through digital transformation, use of newtechnologies or otherwise does not proceed as planned;•clients and business opportunities are lost, or costs and expenses significantly exceed our expectations, as a result of theongoing or planned strategies to streamline our business portfolio, to integrate our systems, or to improve financial andoperational efficiency not being achieved as expected;•

we are unable to hire or retain sufficient human resources;•

our foreign currency funding becomes limited or unavailable;•

we are restricted in agility or flexibility in investing in non-financial institutions under applicable laws and regulations inand outside of Japan; and•rapid and significant deposit outflows caused by deteriorated customer confidence in our financial health or market
confidence in the financial industry result in a lack of liquidity.

Our strategy to expand the range of our financial products and services and the geographic scope of our business globally
may fail if we are unable to anticipate or manage new or expanded risks that entail such global expansion.
As we expand our business operations and operate our business as a global financial institution, we may become exposed to new
and increasingly complex risks associated therewith. We may not be able to establish appropriate internal controls or risk management
systems or to hire or retain necessary human resources to effectively deal with compliance, regulatory, market and other risks entailingthe expanded scope of our operations, products and services, including adoption or integration of new technologies, in all cases and, asa consequence, our financial condition and results of operations may be adversely affected.
As a strategic measure implemented in an effort to become the world’s most trusted financial group, we acquire businesses,
make investments and enter into capital alliances globally. We may continue to pursue opportunities to acquire businesses, makeinvestments and enter into capital alliances. Our major overseas subsidiaries include Krungsri, a subsidiary in Thailand, and Bank
Danamon, a subsidiary in Indonesia. Our acquisition, investments and capital alliances may not proceed as planned or may be changed
or dissolved, we may not achieve the synergies or other results that we expected, or we may incur impairment or valuation losses on
securities acquired or intangible assets, including goodwill, recorded in connection with such business acquisitions, investments orbusiness alliances, because of, among other things, political and social instability, stagnation of the economy, fluctuations of thefinancial market, inability to obtain regulatory approvals, changes in the laws, regulations or accounting standards, changes in thestrategies or financial condition of our acquirees, investees or alliance partners that are inconsistent with our interests, andunanticipated changes in the local market, industry or business environment affecting our acquirees, investees or alliance partners.
These and other similar circumstances may adversely affect our business strategies, financial condition and results of operations. In
addition, we may be unable to achieve the benefits expected from our efforts to expand business operations if our expansion strategy
does not proceed as planned.
If the goodwill recorded in connection with our acquisitions becomes impaired, we may be required to record impairment losses,
which may adversely affect our financial results. We record the excess of the purchase price over the fair value of the assets andliabilities of the acquired companies as goodwill. As of March 31, 2024, the total balance of goodwill was ¥490.3 billion. U.S. GAAP
requires us to test goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that
goodwill may be impaired. For further information, see Note 6 to our consolidated financial statements.
Our efforts to offer new products and services or penetrate new markets may not succeed due to any of the foregoing reasons orother reasons, including if product or market opportunities develop more slowly than expected, if our new products and services are
not well accepted among customers, if the profitability of opportunities is undermined by competitive pressures, regulatory limitations
or changes in our business environment, if our planned acquisitions, investments or capital alliances are not approved by regulators or
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do not proceed as planned, or if our acquisitions, investments or capital alliances fail to achieve the synergies or other results that we
expect.
If our strategic alliance with Morgan Stanley fails, we could suffer financial or reputational loss.
We have a global strategic alliance with Morgan Stanley, under which we operate two joint venture securities companies inJapan, engage in joint corporate finance operations in the United States and pursue other cooperative opportunities. We holdapproximately 23.2% of the voting rights in Morgan Stanley as of March 31, 2024 and continue to hold approximately $521.4 millionof perpetual non-cumulative non-convertible preferred stock with a 10% dividend. In addition, we currently have two representatives
on Morgan Stanley’s board of directors. We maintain this strategic alliance with a view towards long-term cooperation with Morgan
Stanley, and plan to deepen the strategic alliance. However, due to any unexpected changes in social, economic, market or financial
conditions, changes in the regulatory environment, or any failure to integrate or share staff, products or services, or to operate, manage
or implement the business strategy of the joint venture securities companies or other cooperative opportunities as planned, we may beunable to achieve the expected synergies from this alliance.
If our strategic alliance with Morgan Stanley is terminated, it could have a material negative impact on our business strategy,
financial condition and results of operations. For example, because we conduct our securities operations in Japan through the joint
venture companies we have with Morgan Stanley, such termination may result in our inability to attain the planned growth in this lineof business.
In addition, with our current investment in Morgan Stanley, we have neither a controlling interest in, nor control over thebusiness operations of, Morgan Stanley. If Morgan Stanley makes any business decisions that are inconsistent with our interests, wemay be unable to achieve the goals set out for the strategic alliance. Furthermore, although we do not control Morgan Stanley, given
the magnitude of our investment, if Morgan Stanley encounters financial or other business difficulties due to adverse changes in theeconomy, regulatory environment or other factors, we may suffer a financial loss on our investment or damage to our reputation.
We apply equity method accounting to our investment in Morgan Stanley in our consolidated financial statements. As a result,
Morgan Stanley’s performance affects our results of operations, and Morgan Stanley has contributed to a significant portion of our net
income and revenue in recent periods. Rule 3-09 of Regulation S-X requires Morgan Stanley’s financial statements to be included inthis Annual Report. In addition, fluctuations in Morgan Stanley’s stock price or in our equity ownership interest in Morgan Stanley
may cause us to recognize losses on our investment in Morgan Stanley.
Risks Related to Our Ability to Meet Regulatory Capital Requirements
We may not be able to maintain our capital ratios and other regulatory ratios above minimum required levels, which could
result in various regulatory actions, including the suspension of some or all of our operations.
We, as a holding company, and our Japanese banking subsidiaries are required to maintain risk-weighted capital ratios andleverage ratios above the levels specified in the guidelines adopted by the FSA to implement the Basel III framework. As of March 31,
2024, our total risk-adjusted capital ratio was 17.82% compared to the minimum risk-adjusted capital ratio required of 12.16%, ourTier 1 capital ratio was 15.72% compared to the minimum Tier 1 capital ratio required of 10.16%, and our Common Equity Tier 1
capital ratio was 13.53% compared to the minimum Common Equity Tier 1 capital ratio required of 8.66%, each including a capitalconservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.16%. As of the same date, our leverage ratio
was 5.19% compared to the minimum leverage ratio required of 3.75%, which is the sum of a minimum leverage ratio requirement at
3.00% plus a leverage ratio buffer set at 50% of the G-SIB surcharge. From April 1, 2024, the applicable minimum leverage ratio
requirement is 3.15%, and the applicable leverage ratio buffer requirement is set at 50% of a G-SIB surcharge plus an additional
0.05%, while deposits with the Bank of Japan currently remain excluded from the leverage exposure for the purpose of the calculationof the leverage ratio in light of exceptional macroeconomic conditions and other circumstances. Basel III risk measurement reforms
became applicable to us on, and are being phased in from, March 31, 2024. Our capital and leverage ratios are calculated inaccordance with Japanese banking regulations based on information derived from our financial statements prepared in accordance withJapanese GAAP.
The Financial Stability Board has identified us as one of G-SIBs. The banks that are included in the list of G-SIBs are subject toa capital surcharge to varying degrees depending on the bucket to which each bank is allocated. As the list of G-SIBs is expected to be
updated annually, we may be required to meet stricter capital ratio requirements.
If our or our Japanese banking subsidiaries’ capital ratios or leverage ratios fall below the required levels, including various
capital buffers or a leverage buffer, the FSA may require us to take a variety of corrective actions, including abstention from making
capital distributions, such as dividends, share buybacks, interest payments on, and redemption and repurchase of, Additional Tier 1
capital instruments and bonus payments, and suspension of our business operations. In addition, some of our banking subsidiaries are
subject to the local capital adequacy ratio and other regulatory ratio requirements of various foreign countries, and if their ratios fall
below the required levels, the local regulators will require them to take a variety of corrective actions.
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Factors that will affect our and our bank subsidiaries’ capital ratios or leverage ratios include:•

fluctuations in our or our banking subsidiaries’ portfolios due to deterioration in the creditworthiness of borrowers and theissuers of equity and debt securities;•difficulty in refinancing or issuing instruments upon redemption or at maturity of such instruments to raise capital underterms and conditions similar to prior financings or issuances;•declines in the value of our or our banking subsidiaries’ securities portfolios;•

adverse changes in foreign currency exchange rates;•

adverse revisions to the capital ratio and other regulatory ratio requirements;•

reductions in the value of our or our banking subsidiaries’ deferred tax assets; and•other adverse developments.

We are also subject to the FSA’s regulations requiring G-SIBs in Japan to maintain certain minimum levels of capital andliabilities that are deemed to have loss-absorbing and recapitalization capacity, or External TLAC, and allocate a certain minimum
level of External TLAC to any material subsidiary within their respective groups of companies, or Internal TLAC. As of March 31,
2024, we maintained 25.06% of External TLAC on a risk-weighted assets basis compared to the required minimum ratio of 18.00%
and 9.65% of External TLAC on a total exposure basis compared to the required minimum ratio of 6.75%. The required minimum
ratio of External TLAC on a total exposure basis is 7.10% from April 1, 2024, while deposits with the Bank of Japan currently remain
excluded from the total exposure for the purpose of the calculation of the External TLAC ratio in light of exceptional macroeconomic
conditions and other circumstances. Within the MUFG Group, MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ
Morgan Stanley Securities Co., Ltd. are designated as our material subsidiaries. We may become subject to various regulatory actions,
including restrictions on capital distributions, if we are unable to maintain our External TLAC ratios or the amount of Internal TLAC
allocated to any of our material subsidiaries in Japan above the minimum levels required by the standards imposed by the FSA, or if
the capital buffers are used and reduced below the required level to make up for our required External TLAC ratio on a risk-weighted
assets basis. Our External TLAC ratios and the amount of our Internal TLAC are affected by various factors that affect our capitalratios and leverage ratios described above. Although we plan to issue TLAC-qualified debt in an effort to meet the minimum required
levels of External TLAC ratios and Internal TLAC amounts, we may fail to do so if we are unable to issue or refinance TLACqualified debt as planned.
For a discussion of the applicable regulatory guidelines and our capital ratios, see “Item 4.B. Information on the Company—
Business Overview—Supervision and Regulation” and “Item 5.B. Operating and Financial Review and Prospects—Liquidity andCapital Resources—Capital Adequacy.”
Fluctuations in foreign currency exchange rates may result in transaction losses on translation of monetary assets andliabilities denominated in foreign currencies as well as foreign currency translation losses with respect to our foreign subsidiaries
and equity method investees.
Fluctuations in foreign currency exchange rates against the Japanese yen create transaction gains or losses on the translation into
Japanese yen of monetary assets and liabilities denominated in foreign currencies. To the extent that our foreign currency-denominatedassets and liabilities are not matched in the same currency or appropriately hedged, we could incur losses due to future foreignexchange rate fluctuations. During the fiscal year ended March 31, 2024, the average balance of our foreign interest-earning assets was¥115,100.9 billion and the average balance of our foreign interest-bearing liabilities was ¥78,344.3 billion, representing 39.2% of ouraverage total interest-earning assets and 26.1% of our average total interest-bearing liabilities during the same period. Due to foreign
currency exchange rate fluctuations, we may incur losses attributable to net transaction losses on the translation into Japanese yen ofmonetary assets and liabilities denominated in foreign currencies, net losses on currency derivative instruments entered into for trading
purposes, and net losses on translation into Japanese yen of securities accounted for under the fair value option. In addition, we may
incur foreign currency translation losses with respect to our foreign subsidiaries and equity method investees due to fluctuations inforeign currency exchange rates. For a discussion on foreign currency translation impacts on our financial statements, see “Item 5.A.
Operating and Financial Review and Prospects—Operating Results—Effect of Change in Exchange Rates on Foreign Currency
Translation.”
Credit Risk
We may suffer additional credit-related losses in the future if our borrowers are unable to repay their loans as expected or if
the measures we take in reaction to, or in anticipation of, our borrowers’ deteriorating repayment abilities prove inappropriate or
insufficient.
If the economic conditions in Japan or other parts of the world, including emerging countries, or in particular industries, including thereal estate industry, to which we have significant credit risk exposure, worsen, or if climate change, geopolitical conflicts, fluctuations
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in commodity, real estate or stock prices or in interest or foreign exchange rates, changes in the competitive environment or otherdevelopments adversely affect global or local economic conditions or particular industries or borrowers, our problem loans and creditrelated expenses and losses may increase. An increase in problem loans and credit-related expenses and losses would adversely affectour results of operations, weaken our financial condition and erode our capital base.
We may provide additional loans, equity capital or other forms of support to troubled borrowers in order to facilitate theirrestructuring and revitalization efforts. We may also forbear from exercising some or all of our rights as a creditor against them, andwe may forgive loans to them in conjunction with their debt restructurings. We may take these steps even when such steps might not
be warranted from the perspective of our short-term or narrow economic interests or a technical analysis of our legal rights against
those borrowers, in light of other factors such as our longer-term economic interests and our commitment to supporting the Japanese
economy. These practices may substantially increase our exposure to troubled borrowers and increase our losses. Credit losses may
also increase if we elect, or are forced by economic or other considerations, to sell or write off our problem loans at a larger discount,in a larger amount or in a different time or manner, than we may otherwise want.
Our loan losses could prove to be materially different from our estimates and could materially exceed our current allowance for
credit losses, in which case we may need to provide for additional allowance for credit losses and may also record credit losses beyond
our allowance. Our allowance for credit losses in our loan portfolio is based on evaluations of customers’ creditworthiness and thevalue of collateral we hold as well as macroeconomic trends. While we closely observe conditions of our individual borrowers andindustry and macroeconomic trends, if we need to provide for additional allowance for credit losses, or the value or liquidity ofcollateral declines, due to deterioration in domestic and global economic conditions, commodity price fluctuations or other conditions
specific to certain borrowers, we may incur significant credit losses.
Also, the regulatory standards or guidance on establishing allowances may also change, causing us to change some of theevaluations used in determining the allowances. As a result, we may need to provide for additional allowance for credit losses.
Our efforts to diversify our portfolio to avoid any concentration of credit risk exposures to particular industries or counterparties
may prove insufficient. For example, our credit exposures to the real estate industry are relatively high in comparison to otherindustries. The credit quality of borrowers in such industry does not necessarily correspond to general economic conditions in Japan orother parts of the world, and adverse developments in the real estate market may disproportionately increase our credit losses.
We may incur further losses as a result of financial difficulties relating to other financial institutions, both directly andthrough the effect they may have on the overall banking environment and on their borrowers.
Declining asset quality and other financial problems may exist, arise or worsen at some domestic and foreign financial
institutions, including banks, non-bank lending and credit institutions, securities companies and insurance companies. Such problems
recently manifested in a series of high-profile failures of financial institutions in the United States and Europe. Financial difficulties
relating to financial institutions may not only lead to liquidity and insolvency problems for such financial institutions but also result insystemic problems adversely affecting the financial market and the wider economy. Financial difficulties relating to financial
institutions could adversely affect us because we have extended loans, some of which may need to be classified as impaired loans, tobanks, securities companies, insurance companies and other financial institutions that are not our consolidated subsidiaries. Our loans
to banks and other financial institutions have been more than 10% of our total loans as of each year-end in the three fiscal years ended
March 31, 2024, with the percentage being 20.4% as of March 31, 2024. We may also be adversely affected because we enter intotransactions, such as derivative transactions, in the ordinary course of business, with other banks and financial institutions as
counterparties. For example, we enter into credit derivatives with banks, broker-dealers, insurance companies and other financial
institutions for managing credit risk exposures, for facilitating client transactions, and for proprietary trading purposes. In addition, we
may be adversely affected because:•

we are shareholders of financial institutions;•financial institutions that face difficulties may terminate or reduce financial support to borrowers, putting such borrowers
under financial stress and causing our loans to such borrowers to be impaired;•

we may be requested to participate in providing support to distressed financial institutions;•the government may elect to provide regulatory, tax, funding or other benefits to financial institutions under its supervisionor control to strengthen their capital or increase their profitability or for other purposes, causing our competitivenessagainst such financial institutions to weaken;••

our deposit insurance premiums may rise if deposit insurance funds prove to be inadequate;
bankruptcies or government control or other intervention of financial institutions may generally undermine the confidence
of depositors and investors in, or adversely affect the overall business environment for, financial institutions; and•negative media coverage of the financial industry or system, regardless of its accuracy and applicability to us, may harm
our reputation as well as market confidence in the financial industry and system.
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Risk Relating to Our Strategic Equity Portfolio
If the Japanese stock market or other global markets decline in the future, we may incur losses on our securities portfolio
and our capital ratios will be adversely affected.
Our strategic equity investments in Japan, which account for a vast majority of our total domestic marketable equity securities,
were approximately ¥5.0 trillion as of March 31, 2024. A decline in stock prices adversely affects the value of our equity portfolio andmay also reduce our regulatory capital ratios because unrealized gains and losses on the equity securities we hold are reflected in thecalculation of such ratios. Weakening or stagnant economic conditions in Japan, the United States, China, the Eurozone and Asian
countries may have a significant negative impact on Japanese companies, which in turn will cause their stock prices to decline.
Japanese stock prices may fluctuate significantly and negatively in future periods, as the global economy remains volatile andinvestors continue to observe the changes in economic, monetary and trade policies mainly in these countries and regions. Concerns
over the impact of geopolitical tensions and conflicts in various parts of the world on Japanese companies may also adversely affectstock prices in Japan. In addition, the global trend towards further reduction in risk assets could result in lower stock prices.
Market Risk
Fluctuations in interest rates, foreign currency exchange rates and stock prices could adversely affect the value or the yieldof our portfolio.
We undertake extensive financial market operations involving a variety of financial instruments, including derivatives, and holdlarge volumes of such financial instruments. As a result, our financial condition and results of operations are subject to the risks
relating to these operations and holdings. The primary risks are fluctuations in interest rates, foreign currency exchange rates and stock
prices in and outside of Japan. As of March 31, 2024, approximately 22.4% of our total assets were financial instruments which wemeasure at fair value. The aggregate carrying amount of the Japanese government and corporate bonds and foreign bonds, including
U.S. Treasury bonds, that we held as of March 31, 2024 was 10.8% of our total assets. In particular, the Japanese national government
and Japanese government agency bonds accounted for 9.7% of our total assets as of March 31, 2024. If market interest rates decline
due to such factors as changes in the monetary policies of central banks in various jurisdictions, the yield on the Japanese government
bonds and foreign government bonds that we hold may also decline. Furthermore, if short-term interest rates rise to a larger extent
than long-term interest rates, our net interest income may be adversely affected as banks, including us, generally pay interest on
deposits based on short-term interest rates and earn income on loans based on long-term interest rates. In March 2024, the Bank ofJapan ended its negative interest rate policy and set its policy rate around 0% to 0.1%, while the central banks in the United States andother major jurisdictions have maintained high interest rates in response to the ongoing inflation or have begun to reduce interest rates.
If interest rates in and outside of Japan rise, we may incur significant losses on sales of, and valuation losses on, our bond portfolio,
and our debt funding costs may also increase significantly.
Appreciation of the Japanese yen against the U.S. dollar and other major currencies causes the yen-converted value of ourforeign currency-denominated investments to decline and may cause us to recognize significant losses on sales of, or valuation losses
on, such investments in our financial statements. Furthermore, if stock prices decline, and the value of marketable equity securities andtrading account securities that we hold also declines, we may incur significant losses on sales of, and valuation losses on, our equity
securities and trading account securities portfolios. In addition, the derivative financial instruments in our trading portfolio may cause
us to record significant gains or losses, when sold or marked to market, and may fluctuate from period to period due to numerous
factors that are beyond our control, including interest rate levels, foreign currency exchange rates, stock price fluctuations, the credit
risk of our counterparties, and general market volatility. Our assessment and management of market risks, including those related tofluctuations in interest rates, foreign currency exchange rates and securities prices, may prove insufficient and, as a result, our actual
losses in the future may exceed our estimated market risk exposure.
Funding Liquidity Risk
Deterioration in market liquidity or other external circumstances or an actual or perceived decline in our creditworthinesscould negatively affect our ability to access and maintain liquidity.
Our liquidity may be impaired by factors such as an inability to raise funding in financial markets, an increase in our funding
costs, unexpected increases in cash or collateral requirements, an inability to sell assets or enter into or settle other transactions asplanned or needed, and an inability to attract or retain deposits. These situations may arise due to circumstances which we may beunable to control but which have occurred in the past, including market or economic disruptions, financial system instability, and adowngrade in our credit ratings, or circumstances specific to us, including an actual or perceived decline in our creditworthiness.
Insufficient liquidity may have a material adverse impact on our business, operating results and financial condition.
Assuming all of the relevant credit rating agencies downgraded the credit ratings of MUFG, MUFG Bank, Mitsubishi UFJ Trustand Banking and Mitsubishi UFJ Securities Holdings as of March 31, 2024 by one-notch on the same date, we estimate that MUFG
and its three main subsidiaries would have been required to provide approximately ¥47.2 billion of additional collateral postings under12

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their derivative contracts. Assuming a two-notch downgrade by all of the same credit rating agencies occurring on the same date, weestimate that the additional collateral postings for the same MUFG group companies under their derivative contracts would have been
approximately ¥97.4 billion.
Rating agencies regularly evaluate us and our major subsidiaries as well as our and their respective debt securities. Their ratings
are based on a number of factors, including their assessment of the relative financial strength of MUFG or of the relevant subsidiary,
as well as conditions generally affecting the financial services industry in Japan or on a global basis, some of which are not entirely
within our control. As a result of changes in their evaluation of these factors or in their rating methodologies, rating agencies may
downgrade our ratings or our subsidiaries’ ratings.
Operational Risk
We have identified a material weakness in our internal control over financial reporting and our CEO and CFO concluded
that our disclosure controls and procedures were not effective, in each case as of the end of the reporting period covered by thisreport. We may not be able to effectively remediate the material weakness or otherwise maintain effective internal controls or
disclosure controls in the future.
This annual report includes a restatement of our consolidated financial statements for the fiscal year ended March 31, 2023 tocorrect an error related to the accounting of the elimination of the three-month reporting lag applied to MUFG Union Bank, N.A. inconnection with our sale of MUFG Union Bank. In connection with this restatement, our management concluded that our internal
control over financial reporting was not effective as of March 31, 2024, due to a material weakness which management identified
relating to a deficiency in the design of an existing internal control over the review and approval of non-routine U.S. GAAP
accounting treatment considerations, which led to the restatement. The error resulting in the restatement of our March 31, 2023
financial statements was identified after March 31, 2024 and, therefore, management concluded that our internal control over financial
reporting was also not effective as of March 31, 2023 and that the material weakness remained unremediated as of March 31, 2024. In
addition, due to the material weakness, our CEO and CFO concluded that our disclosure controls and procedures were not effective asof March 31, 2024 and 2023.
Although we are in the process of developing and implementing remediation measures to address our material weakness, thesemeasures may not be sufficient to remediate the control deficiencies that led to the material weakness in our internal control overfinancial reporting or prevent future control deficiencies or material weaknesses from occurring. Moreover, additional deficiencies
and material weaknesses in our internal control over financial reporting may arise in the future. We may also not be able to identify
all deficiencies and material weaknesses in our internal control over financial reporting. As a consequence, we may be unable toprovide financial information in our consolidated financial statements and elsewhere in an accurate, timely and reliable manner andmay need to restate our consolidated financial statements or other aspects of our periodic reporting. These consequences may
undermine the confidence placed in our published financial information and other reported information by users of our consolidated
financial statements, including holders of our securities, resulting in reductions in the price of our securities, and may also limit ouraccess to financial markets, weaken client or counterparty appetite to enter into transactions with us and subject us to potential
regulatory or legal actions. Any of these impacts may materially and adversely affect our business, corporate value, results ofoperations and financial condition.
See Note 1A to our consolidated financial statements included in this annual report for details of the nature of the identified
accounting error and “Item 15 Controls and Procedures” for the identified material weakness and our remediation measures to address
the material weakness.
We may become subject to regulatory actions or other legal proceedings relating to our transactions or other aspects of ouroperations, which could result in significant financial losses, restrictions on our operations and damage to our reputation.
We conduct our business subject to ongoing regulation and associated regulatory and legal risks. Global financial institutions,
including us, currently face heightened regulatory scrutiny as a result of the concerns developing in the global financial sector, andgrowing public pressure to demand even greater regulatory surveillance following several high-profile scandals and risk management
failures in the financial industry. In the current regulatory environment, we are subject to various regulatory inquiries or investigations
from time to time in connection with various aspects of our business and operations. In addition, multiple government authorities withoverlapping jurisdiction more frequently conduct investigations and take other regulatory actions in coordination with one another orseparately on the same or related matters. Our controls may be found insufficient in addressing regulatory or public concerns relating
to money laundering, economic sanctions, bribery, corruption, financial crimes, or unfair or inappropriate business practices, or inmeeting market or industry rules or standards, customer protection requirements, or corporate behavior expectations.
For example, we have received requests and subpoenas for information from government agencies in some jurisdictions inconnection with their investigations into past submissions made by panel members, including us, to the bodies that set various
interbank benchmark rates as well as investigations into foreign exchange related practices of global financial institutions. Some of theinvestigations into foreign exchange related practices resulted in our payment of monetary penalties to the relevant government
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agencies. We are cooperating with those investigations and have been conducting an internal investigation. In connection with thesematters, we and other financial institutions are involved as defendants in a number of civil lawsuits.
These developments or other similar matters may result in additional regulatory actions against us or agreements to makesignificant additional settlement payments. These developments or other matters to which we are subject from time to time may also
expose us to substantial monetary damages, legal defense costs, criminal and civil liability, and restrictions on our business operations
as well as damage to our reputation. Our ability to obtain regulatory approvals for future strategic initiatives may also be adversely
affected. The outcome of such matters, including the extent of the potential impact of any unfavorable outcome on our financial
results, however, is inherently uncertain and difficult to predict. The extent of financial, human and other resources required to
conduct any investigations or to implement any corrective or preventive measures is similarly uncertain and could be significant. Such
resources may also be difficult for us to secure in a timely manner.
Additionally, on June 14, 2024, the Securities and Exchange Surveillance Commission of Japan (“SESC”) issued and announced
a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency (“FSA”) take administrative action
against our subsidiaries MUFG Bank and Mitsubishi UFJ Morgan Stanley Securities and our securities affiliate. The recommendation
was based on the SESC’s findings of, among other things, inappropriate sharing of customer information as well as impropersolicitation of business in contravention of the prohibition on engagement by Registered Financial Institutions in securities-related
business activities. The SESC’s findings concerned, among other things, the business collaboration among the bank and securities
companies and the management of non-public corporate information by the bank and securities companies.
In response to the SESC’s recommendation, on June 24, 2024, the FSA issued business improvement orders to MUFG Bank,
Mitsubishi UFJ Morgan Stanley Securities and our securities affiliate under Articles 51-2 and 51 of the Financial Instruments andExchange Act of Japan. Additionally, the FSA has required MUFG and MUFG Bank to submit reports under Articles 52-31 and 24 of
the Banking Act of Japan. In response, on July 19, 2024, MUFG, MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities and our
securities affiliate submitted documents including business improvement plans to the FSA.
Failure to safeguard personal and other confidential information may result in liability, reputational damage or financial
losses.
As our operations expand in volume, complexity and geographic scope, we are exposed to increased risk of confidential
information in our possession being lost, leaked, altered or falsified as a result of human or system error, misconduct, unlawful
behavior or scheme, unauthorized access or natural or human-caused disasters. Our information systems and information management
policies and procedures may not be sufficient to safeguard confidential information against such risks. As a financial institution inpossession of customer information, we are obligated to treat personal and other confidential information as required by the Act on theProtection of Personal Information, the Act on the Use of Personal Identification Numbers in the Administration of Government
Affairs, the Banking Act and the Financial Instruments and Exchange Act of Japan, as well as other similar laws and regulations ofother jurisdictions in which we operate. In the event that personal information in our possession about our customers or employees isleaked or improperly accessed and subsequently misused, we may be subject to liability and regulatory action. We may have toprovide compensation for economic loss and emotional distress arising out of a failure to protect such information. In addition, such
incidents could create a negative public perception of our operations, systems or brand, which may in turn decrease customer andmarket confidence and materially and adversely affect our business, operating results and financial condition. Moreover, any loss,
leakage, alteration or falsification of confidential information, or any malfunction or failure of our information systems, may result insignificant disruptions to our business operations or plans or may require us to incur significant financial, human and other resources
to implement corrective measures or enhance our information systems and information management policies and procedures.
Our operations are highly dependent on our information, communications and transaction management systems and are
subject to an increasing risk of cyber-attacks and other information security threats and to changes in the business and regulatoryenvironment.
Our information, communications and transaction management systems, which include not only our own proprietary systems
but also those third-party systems that are provided for our use or to which our systems are connected, constitute a core infrastructure
for our operations. The proper functioning of our information, communications and transaction management systems is critical to ourability to efficiently and accurately process a large volume of transactions, ensure adequate internal controls, appropriately manage
various risks, and otherwise service our clients and customers, particularly in the current business environment with increasing
dependence on remote or online networks and our strategy to promote digitization.
Cyber-attacks, unauthorized access and computer viruses are becoming increasingly more sophisticated and more difficult topredict, detect and prevent. For instance, bank internal financial transaction systems or automatic teller machines may become thetarget of cyber-attacks for monetary gain, and bank internal information systems may become the target of confidential information
theft. In addition, banks’ websites or customer internet banking systems may become the target of cyber-attacks for political,
geopolitical and other purposes. These cyber threats, as well as our failure to appropriately and timely anticipate and deal with changes
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associated with technological advances and new systems and tools introduced in response to industry, regulatory and otherdevelopments, could cause disruptions to, and malfunctions of, information, communications and transaction management systems
and result in fraud or other misconduct, unintended releases of confidential and proprietary information stored in or transmitted
through the systems, interruptions in the operations of our clients, customers, counterparties and service providers, and deterioration in
our ability to service our clients and customers. In addition, our banking and other transaction management systems may not meet all
applicable business and regulatory requirements in an environment where such requirements are becoming increasingly sophisticatedand complicated. Furthermore, our system development or improvement projects, many of which are critical to our ability to operatein accordance with market and regulatory standards, may not be completed as planned due to the complexity and other difficulty
relating to such projects. Moreover, our cybersecurity risk management framework and practices may be found inadequate,
particularly in light of expanding regulatory requirements and growing market expectations, including those relating to incident
reporting and risks associated with our use of third-party services and systems. These consequences could result in financial losses,
including costs and expenses incurred in connection with countermeasures and improvements as well as compensation to affectedparties, lead to regulatory actions, diminish our clients’ and customers’ satisfaction with and confidence in us, and harm our reputationin the market, which could in turn adversely affect our business, financial condition and results of operations. Moreover, significant
financial, human and other resources may be required to design, implement and enhance measures to manage cyber and information
security risks and comply with regulatory requirements.
Transactions with counterparties in countries designated by the U.S. Department of State as state sponsors of terrorism maylead some potential customers and investors in the United States and other countries to avoid doing business with us or investing in
our shares.
We, through our subsidiaries, engage in limited business activities with entities in or affiliated with Iran, including transactions
with counterparties owned or controlled by the Iranian government, and our commercial banking subsidiary has a representative officein Iran for information gathering purposes only. The U.S. Department of State has designated Iran and other countries as “state
sponsors of terrorism,” and U.S. law generally prohibits U.S. persons from doing business with such countries. We currently have
limited business activities conducted with entities in or affiliated with such countries. Such business activities are conducted inaccordance with our policies and procedures designed to ensure compliance with regulations applicable in the jurisdictions in which
we operate and with exemptions and general licenses available under U.S. law. We have transactions with counterparties in oraffiliated with countries designated as state sponsors of terrorism which consist of receiving deposits or holding assets on behalf ofindividuals residing in Japan who are citizens of countries designated as state sponsors of terrorism and processing payments to orfrom entities in or affiliated with these countries on behalf of our customers. These transactions do not have a material impact on ourbusiness or financial condition. For a further discussion of transactions required to be disclosed under the U.S. Iran Threat Reductionand Syria Human Rights Act of 2012, see “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—United States—Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934.”
We are aware of initiatives by U.S. governmental entities and non-government entities, including institutional investors such aspension funds, to adopt or consider adopting laws, regulations or policies prohibiting transactions with or investment in, or requiring
divestment from, entities doing business with Iran and other countries identified as state sponsors of terrorism. It is possible that suchinitiatives may result in our being unable to gain or retain entities subject to such prohibitions as customers, counter-parties orinvestors in our shares. In addition, depending on socio-political developments, our reputation may suffer due to our transactions withcounterparties in or affiliated with these countries. The above circumstances could have an adverse effect on our business and financial
condition.
Global financial institutions, including us, have become subject to an increasingly complex set of sanctions laws and regulations
in recent years, and this regulatory environment is expected to continue. Moreover, the measures proposed or adopted vary across the
major jurisdictions, increasing the cost and resources necessary to design and implement an appropriate global compliance program.
The U.S. federal government and some state governments in the United States have enacted legislation designed to limit economic andfinancial transactions with Iran by limiting the ability of financial institutions that may have engaged in any one of a broad range ofactivities related to Iran to conduct various transactions in the relevant jurisdictions. In addition, in May 2018, the United States
withdrew from participation in the Joint Comprehensive Plan of Action. Under subsequently issued executive orders, the United States
may impose secondary sanctions against non-U.S. persons who engage in or facilitate a broad range of transactions and activities
involving Iran. The Japanese government has also implemented a series of measures under the Foreign Exchange and Foreign Trade
Act, such as freezing the assets of persons involved in Iran’s sensitive nuclear activities and development of nuclear weapon delivery
systems, and our most recently modified policies and procedures take into account the current Japanese regulatory requirements. We
continue to implement measures to enhance our policies and procedures to comply with such legislative and regulatory requirements.
There remains a risk of potential regulatory action against us, however, if regulators perceive the modified policies and procedures not
to be in compliance with applicable legislation and regulations.
Legal and regulatory changes could have a negative impact on our business, financial condition and results of operations.

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As a global financial services provider, our business is subject to ongoing changes in laws, regulations, rules, policies,
accounting standards or methods, voluntary codes of practice and interpretations in Japan and other markets where we operate. Major
global financial institutions currently face an increasingly stricter set of laws, regulations and standards as a result of emerging or new
technologies, political and geopolitical developments, environmental, social and governance concerns, efforts to combat increasingly
sophisticated criminal activity, and other concerns enveloping the global financial sector. There is also growing political pressure to
demand even greater capital and liquidity requirements and internal compliance and risk management systems following several highprofile scandals and risk management failures in the financial industry. See “Item 4.B. Information on the Company—Business
Overview—Supervision and Regulation.” The laws, regulations and standards that apply to us are often complex and, in many cases,
we must make interpretive decisions regarding the application of such laws, regulations and standards to our business activities. Future
developments or changes in laws, regulations, rules, policies, accounting standards or methods, voluntary codes of practice,interpretations and their effects are expected to require greater capital, human and technological resources as well as significant
management attention, and may require us to modify our business strategies and plans. We may be unable to enhance our compliancemanagement programs and systems, which, in some cases, are supported by third-party service providers, as required or planned. Ourfailure or inability to comply fully with applicable laws and regulations may lead to penalties, fines, public reprimands, damage to
reputation, issuance of business improvement and other administrative orders, enforced suspension of operations, our inability toobtain regulatory approvals for future strategic initiatives or, in extreme cases, withdrawal of authorization to operate, adversely
affecting our business and results of operations.
Because of our loans to consumers and our shareholdings in companies engaged in consumer lending, changes in thebusiness or regulatory environment for consumer finance companies in Japan may further adversely affect our financial results.
We have a large loan portfolio in the consumer lending industry as well as large shareholdings in subsidiaries and equity method
investees in the consumer finance industry. Our domestic loans to consumers amount to approximately one-ninth of our total
outstanding loans. Of this amount, the consumer loans provided by Mitsubishi UFJ NICOS, Co., Ltd., which is our primary consumer
financing subsidiary, were ¥484.9 billion as of March 31, 2024, compared to ¥472.8 billion as of March 31, 2023.
Mitsubishi UFJ NICOS’s consumer loan portfolio has been adversely affected by a series of legislative reforms and judicial decisions
that were put in place in Japan through 2010, which have negatively affected the domestic consumer lending industry. These legal
developments effectively reduced the maximum rate of interest that may be charged on consumer loans from 29.2% per annum to 15
to 20% per annum depending on the amount of loan principal, while leaving interest payments previously made in excess of the
reduced maximum permissible interest rate, which is commonly referred to as “gray-zone interest,” generally recoverable. Following
these legal developments and other industry developments, Mitsubishi UFJ NICOS revises its estimate of allowance for repayment ofexcess interest by updating management’s future forecast semi-annually to reflect updated reimbursement claims information andother data. As of March 31, 2022, 2023 and 2024, we had ¥21.1 billion, ¥12.1 billion and ¥7.1 billion of allowance for repayment ofexcess interest, respectively.
These developments have adversely affected, and these and any future developments may further adversely affect, theoperations and financial condition of our subsidiaries, equity method investees and borrowers which are engaged in consumer lending,which in turn may affect the value of our related shareholdings and loan portfolio. For further information, See “Item 4.B. Informationon the Company—Business Overview—Supervision and Regulation—Japan.”
Damage to our reputation could harm our businesses.
We are one of the leading financial institutions in Japan and one of the handful G-SIBs in the world, and we aim to be theworld’s most trusted financial group. Our ability to conduct business is indispensably dependent on the trust and confidence of ourcustomers as well as local and international communities. Our reputation is critical in maintaining our relationships with stakeholders,
including customers, investors, regulators, workforce and the general public. Our reputation may be damaged by their negative
perceptions of us and our operations in light of their concerns over human rights, the environment, public health and safety, or othercorporate social responsibilities, or by our transactions if they are deemed adverse to the intent and policy underlying applicable laws
and regulations such as anti-money laundering, economic sanctions and competition laws as well as the prohibition on dealing with
anti-social forces. Failure to prevent or properly address these issues may result in impairment of our corporate brand, loss of ourexisting or prospective customers or investors, or increased public or regulatory scrutiny, and may adversely affect our business,financial condition and results of operations.
Risks Related to Owning Our Shares
It may not be possible for investors to effect service of process within the United States upon us or our directors or
management members, or to enforce against us or those persons judgments obtained in U.S. courts predicated upon the civil
liability provisions of the U.S. federal or state securities laws.

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We are a joint stock company incorporated under the laws of Japan. Almost all of our directors or management members resideoutside the United States. Many of our assets and the assets of these persons are located in Japan and elsewhere outside the UnitedStates. It may not be possible, therefore, for U.S. investors to effect service of process within the United States upon us or these
persons or to enforce, against us or these persons, judgments obtained in the U.S. courts predicated upon the civil liability provisionsof the U.S. federal or state securities laws. We believe there is doubt as to the enforceability in Japan, in original actions or in actions
brought in Japanese courts to enforce judgments of U.S. courts, of claims predicated solely upon the U.S. federal or state securities
laws mainly because the Civil Execution Act of Japan requires Japanese courts to deny requests for the enforcement of judgments offoreign courts if foreign judgments fail to satisfy the requirements prescribed by the Civil Execution Act, including:•the jurisdiction of the foreign court be recognized under laws, regulations, treaties or conventions;•

proper service of process be made on relevant defendants, or relevant defendants be given appropriate protection if suchservice is not received;•

the judgment and proceedings of the foreign court not be repugnant to public policy as applied in Japan; and•there exist reciprocity as to the recognition by a court of the relevant foreign jurisdiction of a final judgment of a Japanesecourt.

Judgments obtained in the U.S. courts predicated upon the civil liability provisions of the U.S. federal or state securities laws
may not satisfy these requirements.
Risks Related to Owning Our American Depositary Shares
As a holder of American Depositary Shares, you have fewer rights than a shareholder of record in our shareholder register
since you must act through the depositary to exercise these rights.
The rights of our shareholders under Japanese law to take actions such as voting, receiving dividends and distributions, bringing
derivative actions, examining our accounting books and records and exercising appraisal rights are available only to shareholders ofrecord. Because the depositary, through its custodian, is the record holder of the shares underlying the American Depositary Shares, or
ADSs, only the depositary can exercise shareholder rights relating to the deposited shares. ADS holders, in their capacity, will not beable to directly bring a derivative action, examine our accounting books and records and exercise appraisal rights. We have appointed
The Bank of New York Mellon as depositary, and we have the authority to replace the depositary.
Pursuant to the deposit agreement among us, the depositary and a holder of ADSs, the depositary will make efforts to exercise
voting or any other rights associated with shares underlying ADSs in accordance with the instructions given by ADS holders, and to
pay to ADS holders dividends and distributions collected from us. However, the depositary can exercise reasonable discretion incarrying out the instructions or making distributions, and is not liable for failure to do so as long as it has acted in good faith.
Therefore, ADS holders may not be able to exercise voting or any other rights in the manner that they had intended, or may lose someor all of the value of the dividends or the distributions. Moreover, the depositary agreement that governs the obligations of thedepositary may be amended or terminated by us and the depositary without ADS holders’ consent, notice, or any reason. As a result,
ADS holders may be prevented from having the rights in connection with the deposited shares exercised in the way ADS holders had
wished or at all.
ADS holders are dependent on the depositary to receive our communications. We send to the depositary all of ourcommunications to ADS holders, including annual reports, notices and voting materials, in Japanese. ADS holders may not receive allof our communications with shareholders of record in our shareholder register in the same manner or on an equal basis. In addition,
ADS holders may not be able to exercise their rights as ADS holders due to delays in the depositary transmitting our shareholder
communications to ADS holders. For a detailed discussion of the rights of ADS holders and the terms of the deposit agreement, see
Exhibit 2(c) to this Annual Report.

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Item 4.
A.

Information on the Company.

History and Development of the Company

MUFG is a bank holding company incorporated as a joint stock company (kabushiki kaisha) under the Companies Act of Japan. We
are the holding company for MUFG Bank, Ltd. (formerly, The Bank of Tokyo-Mitsubishi UFJ, Ltd.), Mitsubishi UFJ Trust andBanking Corporation, Mitsubishi UFJ Securities Holdings Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Mitsubishi
UFJ NICOS Co., Ltd., Mitsubishi UFJ Asset Management Co., Ltd., and other companies engaged in a wide range of financial
businesses.
On April 2, 2001, The Bank of Tokyo-Mitsubishi, Ltd., Mitsubishi Trust and Banking Corporation, or Mitsubishi Trust Bank,and Nippon Trust and Banking Co., Ltd. established Mitsubishi Tokyo Financial Group, Inc., or MTFG, to be a holding company forthe three entities. Before that, each of the banks had been a publicly traded company. On April 2, 2001, through a stock-for-stock
exchange, they became wholly-owned subsidiaries of MTFG, and the former shareholders of the three banks became shareholders of
MTFG. Nippon Trust and Banking was later merged into Mitsubishi Trust Bank.
On June 29, 2005, the merger agreement between MTFG and UFJ Holdings, Inc. was approved at the general shareholders
meetings of MTFG and UFJ Holdings. As the surviving entity, MTFG was renamed “Mitsubishi UFJ Financial Group, Inc.” Themerger of the two bank holding companies was completed on October 1, 2005.
On September 30, 2007, Mitsubishi UFJ Securities Holdings, which was then called “Mitsubishi UFJ Securities Co., Ltd.,” orMUS, became our wholly-owned subsidiary through a share exchange transaction.
On October 13, 2008, we formed a global strategic alliance with Morgan Stanley and, as part of the alliance, made an equity
investment in Morgan Stanley in the form of convertible and non-convertible preferred stock, and subsequently appointed a
representative to Morgan Stanley’s board of directors.
On October 21, 2008, we completed a tender offer for outstanding shares of ACOM CO., LTD. common stock, raising ourownership in ACOM to approximately 40%.
On November 4, 2008, Bank of Tokyo-Mitsubishi UFJ completed the acquisition of all of the shares of common stock ofUnionBanCal Corporation, or UNBC, not previously owned by Bank of Tokyo-Mitsubishi UFJ and, as a result, UNBC became awholly-owned indirect subsidiary of MUFG.
On May 1, 2010, we and Morgan Stanley integrated our securities and investment banking businesses in Japan into two joint
venture securities companies, one of which is Mitsubishi UFJ Morgan Stanley Securities. Mitsubishi UFJ Morgan Stanley Securities
was created by spinning off the wholesale and retail securities businesses conducted in Japan from Mitsubishi UFJ Securities Holdings
and subsequently assuming certain operations in Japan from a subsidiary of Morgan Stanley.
On June 30, 2011, we converted all of our Morgan Stanley’s convertible preferred stock into Morgan Stanley’s common stock,
resulting in our holding approximately 22.4% of the voting rights in Morgan Stanley. Further, we appointed a second representative toMorgan Stanley’s board of directors on July 20, 2011. Following the conversion on June 30, 2011, Morgan Stanley became ourequity-method affiliate. As of March 31, 2024, we held approximately 23.2% of the voting rights in Morgan Stanley and had two
representatives appointed to Morgan Stanley’s board of directors. We and Morgan Stanley continue to pursue a variety of business
opportunities in Japan and abroad in accordance with the global strategic alliance.
On December 18, 2013, we acquired approximately 72.0% of the total outstanding shares of Krungsri through Bank of TokyoMitsubishi UFJ. As a result of the transaction, Krungsri has become a consolidated subsidiary of Bank of Tokyo-Mitsubishi UFJ.
On July 1, 2014, we integrated Bank of Tokyo-Mitsubishi UFJ’s operations in the Americas region with UNBC’s operations andchanged UNBC’s corporate name to “MUFG Americas Holdings Corporation.” On the same day, Union Bank, N.A., which was
MUFG Americas Holdings’ principal subsidiary and our primary operating subsidiary in the United States, was also renamed “MUFG
Union Bank, N.A.” On July 1, 2016, MUFG Americas Holdings was designated as our U.S. intermediate holding company to comply
with the FRB’s enhanced prudential standards.
On January 5, 2015, Bank of Tokyo-Mitsubishi UFJ integrated its Bangkok branch with Krungsri through a contribution in kindof the Bank of Tokyo-Mitsubishi UFJ Bangkok branch business to Krungsri, and Bank of Tokyo-Mitsubishi UFJ received newly
issued shares of Krungsri common stock. As a result of this transaction, Bank of Tokyo-Mitsubishi UFJ’s ownership interest in
Krungsri increased to 76.9%.
On October 1, 2017, we acquired all of the shares of common stock of Mitsubishi UFJ NICOS which we did not previously own
and, as a result, Mitsubishi UFJ NICOS became a wholly-owned subsidiary of MUFG.
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On December 29, 2017, Bank of Tokyo-Mitsubishi UFJ initially acquired 19.9% of the shares of common stock of PT Bank
Danamon Indonesia, Tbk. On May 1, 2019, MUFG Bank, Ltd. completed a series of transactions to increase its ownership interest in
Bank Danamon to 94.1%, as a result of which Bank Danamon became MUFG Bank’s consolidated subsidiary.
On April 1, 2018, we changed Bank of Tokyo-Mitsubishi UFJ’s corporate name to “MUFG Bank, Ltd.”On August 2, 2019, Mitsubishi UFJ Trust and Banking completed its acquisition of 100% of the shares in each of ninesubsidiaries of Colonial First State Group Limited which collectively represent the global asset management business known as
Colonial First State Global Asset Management, or CFSGAM, from Australian financial group Commonwealth Bank of Australia andits wholly-owned subsidiary Colonial First State Group Limited. As a result of the acquisition, the nine subsidiaries became ourconsolidated subsidiaries. In September 2019, CFSGAM was rebranded as First Sentier Investors.
On April 2, 2021, Mitsubishi UFJ NICOS announced a plan to integrate its credit card settlement systems that have been
maintained separately for various credit card brands. Specifically, Mitsubishi UFJ NICOS plans to integrate the systems currently used
for the DC credit card brand and the NICOS credit card brand into the system currently used for the MUFG card brand. The plan has
an estimated budget of approximately ¥140 billion through the end of calendar year 2030. The plan may be modified to flexibly
respond to changes in the business environment.
On December 1, 2022, MUFG Americas Holding completed the transfer of all of the shares in MUFG Union Bank to U.S.
Bancorp.
On April 1, 2024, Mitsubishi UFJ Trust and Banking transferred 100% of the shares in Mitsubishi UFJ Asset Management Co.,
Ltd. to MUFG as a dividend. As a result of the transaction, Mitsubishi UFJ Asset Management has become a directly held, wholly
owned subsidiary of MUFG. Mitsubishi UFJ Asset Management was formed through the merger between Mitsubishi UFJ Kokusai
Asset Management Co., Ltd. and MU Investments Co., Ltd. on October 1, 2023.
Our registered address is 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8330, Japan, and our telephone number is81-3-3240-8111. Our registered address was changed on July 16, 2024 from 7-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8330,
Japan, in connection with our new headquarters building construction project.

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B.

Business Overview

We are one of the world’s largest and most diversified financial groups with total assets of ¥397.44 trillion as of March 31,
2024. The Group is comprised of MUFG Bank, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Morgan Stanley Securities(through Mitsubishi UFJ Securities Holdings), Mitsubishi UFJ NICOS, Mitsubishi UFJ Asset Management Co., Ltd., and othersubsidiaries and affiliates, for which we are the holding company. As a bank holding company, we are regulated under the Banking
Act of Japan. Our services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management,
leasing and many more fields of financial services. As of March 31, 2024, the Group had the largest overseas network among Japanesebanks, consisting of approximately 2,000 business locations in more than 40 countries, including Krungsri in Thailand and Bank
Danamon in Indonesia. MUFG’s role as the holding company is to strategically manage and coordinate the activities of our businessgroups. Group-wide strategies are determined by the holding company and executed by our subsidiaries.
Medium-Term Business Plan
On April 1, 2024, we announced our new Medium-term Business Plan for the three-year period ending March 31, 2027 torespond to structural challenges in Japan as well as the changing global business environment.
Japan faces structural challenges such as a declining birth rate, an aging society and a shrinking population, while the global
economy continues to be affected by changes in society. Through and after roughly three years of the COVID-19 pandemic, thebusiness environment has been changing at an unforeseen pace. Artificial intelligence, or AI, and other digital technologies have been
rapidly developing and penetrating our daily lives, the social and economic structures are shifting towards sustainable energy
solutions, and work styles and values are becoming more diverse. Meanwhile, division and disconnect are becoming apparent throughheightened geopolitical tensions and risks and reversing trends in globalization.
We seek to meet these changes through effective utilization of our ability to facilitate “connections,” leveraging our extensive
network and diverse solutions. By seizing the opportunity presented by changes surrounding MUFG’s business through the new
Medium-term Business Plan, we seek to pursue and achieve growth. Through this Plan, we will continue to strive to meet expectationsof all of our stakeholders—including customers, shareholders and employees—by achieving higher profitability and improved returnon equity, while remaining “committed to empowering a brighter future.”
The descriptions of our Medium-term Business Plan below contain forward-looking statements reflecting our current intent,plans, targets, beliefs or expectations and are subject to risks, uncertainties and assumptions. See “Forward-Looking Statements” and“Item 3.D. Key Information—Risk Factors.”
Fundamental Direction
In our new Medium-term Business Plan, building on the strategic initiatives launched in accordance with our previous Mediumterm Business Plan, we intend to focus on both growth strategies and efforts to facilitate social and environmental solutions throughtransformation and innovation. Accordingly, the new Medium-term Business Plan is built on three strategic pillars—(1) expand andrefine growth strategies, (2) accelerate transformation and innovation, and (3) drive social and environmental progress.
In this era of accelerating changes and increasing division and disconnect, we aspire to maximize our ability to innovate andconnect, to produce economic and social value as we continue to strive to fulfill our commitment to empowering a brighter future. We
consider this commitment to be the most fundamental purpose of our existence, defining our values and vision, to be shared among allof us as "MUFG Way."

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Promoting Key Strategies
In order to pursue and achieve growth under the new Medium-term Business Plan, we have formulated seven key strategies to“Expand & Refine Growth Strategies” and four key strategies to “Accelerate Transformation & Innovation.”
To “Expand & Refine Growth Strategies,” in Japan, we will aim to maximize customer life-time value by strengthening our
retail customer base, while enhancing the succession business through a “corporate x wealth management” business model. Overseas,
we will strive for higher profitability by evolving our Global Corporate & Investment Banking (GCIB) and Global Markets (GM)integrated business model, and seek to seize opportunities arising from Asia’s economic growth by strengthening our collaboration
with subsidiary and partner banks. In addition, we will seek to produce both economic and social value through initiatives tocontribute to making Japan a leading asset management center and through value chain support in green transformation, while also
taking on the challenge of building a new business portfolio for medium- to long-term growth.
To “Accelerate Transformation & Innovation,” we will strive to accelerate transformation of our corporate culture, including
increasing agility, expand our human capital investment, increase our system development capacity, and enhance our AI/data
infrastructure.
For a description of the “Drive Social & Environmental Progress” pillar of the Medium-term Business Plan, see “—MUFG’s
Approach to Sustainability—Strategy—(1) Sustainability.”

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A. Expand & Refine Growth Strategies
Key strategies

Key initiatives

Strengthen domestic retail customer base•Strengthen corporate x wealthmanagement (WM) business
Evolve Global Corporate & Investment
Banking-Global Markets integrated
business model•

Strengthen APAC business and platform
resilience•

Contribute to making Japan a leading
asset management center•

Support value chain in green
transformation•

Promote green transformation, or GX, investment among customers byproposing solutions to customers’ issues that go beyond financing, such as cocreation of GX projects and support for transitions.

Challenge to build a new businessportfolio•

Cultivate a business portfolio characterized by both high growth and highprofitability through the development of new business areas and innovative
business models incorporating customer and societal issues and advances in
new technologies.

•

Improve customer satisfaction by enhancing customer experience. By building
long-term business relationships, maximize customer life-time value.
Offer diverse solutions through both corporate and individual customer-based
approaches.
Pursue higher capital efficiency through GCIB-GM integrated business modelthrough, e.g., collaboration between the primary market functions and the sales& trading functions, cross-selling, and strengthening distribution.
Construct resilient platforms in Asia by strengthening collaboration withsubsidiary and partner banks and expanding initiatives on “cultivate Asia x
digital” aimed at seizing opportunities arising from Asia’s expanding financial
needs through investment in digital financial business.
Assist customers in building more prosperous lives by promoting investment
and supporting asset formation throughout the investment chain, contributing
to making Japan a leading asset management center.

B. Accelerate Transformation & Innovation
Key strategies

Key initiatives

Accelerate transformation to be moreagile
Expand human capital investment•

Increase system development capacity•

Enhance AI/data infrastructure

•

•

•

Facilitate transformation to instill a corporate culture in which people think,decide, and act independently, and do so swiftly.
Accelerate synchronization of human capital strategies with business strategies,
with each employee working actively and vigorously with a high degree ofprofessionalism, to become a global financial group that contributes to customers
and society.
Strive to increase system development capacity in preparation for the planned
increase in system investment, and aim to increase the amount and ratio ofinvestment in strategic projects.
Promote data utilization by enhancing AI promotion functions and businessintelligence.
Enhance technological research capacity through the use of new technologies
such as generative AI and improved intelligence.

Reorganization of the Business Groups
Effective April 1, 2024, we reorganized the Digital Service Business Group and the Retail & Commercial Banking BusinessGroup into the Retail & Digital Business Group, which is responsible for individual customers (excluding wealth management), andthe Commercial Banking & Wealth Management Business Group, which is responsible for corporate and wealth management clients,
while the group-wide digital transformation functions previously managed by the Digital Service Business Group have beentransferred to the Corporate Center. We intend to implement our new Medium-term Business Plan under a seven-business-groupstructure consisting of the Japanese Corporate & Investment Banking Business Group, the Asset Management & Investor Services
Business Group, the Global Corporate & Investment Banking Business Group, the Global Commercial Banking Business Group, and
the Global Markets Business Group, in addition to the two newly reorganized business groups.
This reorganization took effect after the fiscal year ended March 31, 2024 and, accordingly, is not reflected in the businesssegment information in “Item 5.A. Operating and Financial Review and Prospects—Operating Results—Business Segment Analysis”
and in Note 29 to our consolidated financial statements.

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MUFG’s Approach to Sustainability
Governance(1) Sustainability
Sustainability-related issues are managed by the Executive Committee with various management sub-committees, subject tothe oversight of the Board of Directors.
For more information on our governance structure, see “Item 6.C. Directors, Senior Management and Employees—Board
Practices.”
The Sustainability Committee, which is a sub-committee formed under the Executive Committee and is chaired by the Chief
Sustainability Officer, regularly deliberates policies on addressing sustainability-related matters, including risks and opportunities
arising from such matters, and monitors the progress on the MUFG Group’s measures designed to address such matters. The
committee reports to the Executive Committee and, as necessary, reports to the Board of Directors.
The Executive Committee is established as a decision-making body for business execution and discusses and decides onimportant matters related to management of the operations of the MUFG Group based on the basic policies determined by the Boardof Directors. The Executive Committee reports to the Board of Directors from time to time as necessary.
The Board of Directors oversees management of sustainability-related matters in line with its business strategy, risk
management and financial oversight. Such oversight is performed based on, among other things, a plan-do-check-act, or PDCA, cycle.
The Board of Directors deems sustainability-related matters including climate change to be of high-priority importance andaccordingly discusses and deliberates them regularly based on an annual schedule or as appropriate.
From the perspective of objectively evaluating the effectiveness of our wide-ranging sustainability initiatives, we haveincorporated “ESG assessments” as a metric in the performance factor for determining stock compensation for qualified directors,
corporate executives and others. This includes the degree of improvement in external evaluations by major ESG rating agencies. Other
ESG-related performance evaluation metrics include the level of reduction in the global greenhouse gas, or GHG, emissions from the
MUFG Group's own operations, improvement in employee survey scores, and enhancement of gender representation in managerial
positions.
(2) Climate Change
In order to contribute to the achievement of a sustainable society, we have identified contributing to the “achievement of acarbon neutral society” as one of our priority environmental and social issues. As an essential part of sustainability, climate changerelated matters are managed by the Executive Committee with various management sub-groups, subject to the oversight of the Boardof Directors.
We have established a Carbon Neutral Project Team, which is a project team on a group-wide and global basis and is tasked
with ensuring progress on initiatives. Each initiative is reported to and discussed by the Steering Committee, which includes the GroupCEO and other key management members, and by the Sustainability Committee. These committees report to the Executive
Committee.
In addition, since we consider climate change-related risks to be our top risks requiring close attention, such risks arereviewed by the Credit & Investment Management Committee, the Credit Committee and the Risk Management Committee, which arealso sub-committees formed under the Executive Committee, based on their respective expertise. The deliberations of these subcommittees are reported to the Executive Committee.
In addition, the Risk Committee, which is a sub-committee of the Board of Directors, deliberates and reports on mattersregarding group-wide risk management, including climate change, and top risk matters.
(3) Human Capital
Basic policies and key strategies related to human resources are discussed at the Human Resources Management Conference
and the Sustainability Committee, in which the Group CEO, Group Chief Human Resources Officer (CHRO), and other key
management members participate, under the oversight of the Board of Directors. Each MUFG subsidiary considers specific personnel
measures and initiatives under the oversight of the director in charge of human resources at each subsidiary based on the basic policies
and key strategies determined by MUFG.
The progress on each strategy is reported to, and deliberated and evaluated by, the Personnel Management Committee, theSustainability Committee, and the Executive Committee, and shared with the Board of Directors as appropriate.
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Strategy(1) Sustainability
We seek to integrate our efforts to contribute to solving social issues into our business strategy where and to the extent
appropriate. This integrated approach to solving social issues constitutes one of the three strategic pillars of our Medium-term
Business Plan based on which we aim to further strengthen our efforts. In pursuit of a sustainable environment and society, we intend
to work on addressing the following priority issues:

Sustainable
societyVibrantsociety

Resilientsociety

Priority issues
Achievement of carbon neutral society
Natural capital and biodiversity restoration

Main initiatives
Accelerating engagement and support for energy transition
Providing solutions for reducing dependency and impact onnaturePromoting of circular economy

Supporting technology and investment for transition to
circular economy

Industry development and innovation support Providing funding for growth and expand scope of asset
management
Response to aging population and low
birthrate

Supporting asset and business succession, promoting
investment and asset building

Increasing access to financial services

Providing services to linked to everyday needs andcontributing to financial inclusion

Management focusing on human capital

Creating a workplace focused on holistic well-being where
employees are empowered to thrive

Respect for human rights

Strengthening human rights due diligence throughout supply
chain

Ensuring secure and safe services

Strengthening cybersecurity measures and operational
resilience

Demonstration of robust corporate
governanceBusiness operations that make every effort to serve
customers’ best interests

These priority issues have been identified based on our consideration of what we believe to be highly relevant to ourstakeholders, including sustainability disclosure standards and investor expectations, as well as priorities for our business in terms ofopportunities and risks, while incorporating opinions from external advisors, investors, employees, and others. The main initiatives aremonitored by the Sustainability Committee.
(2) Climate Change
MUFG recognizes that contributing to the “achievement of a carbon neutral society” is one of the most importantmanagement issues. We seek to address it by regarding it as presenting business opportunities and requiring careful risk management.
We participate in various initiatives to address climate change, including the Partnership for Carbon Accounting Financials,
the Net-Zero Banking Alliance and the Glasgow Financial Alliance for Net Zero, and support the recommendations formulated by the
TCFD, a special taskforce established by the Financial Stability Board.
Based on the TCFD recommendations, we have identified, and are working to address, two categories of climate changerelated risks for financial institution. The first category includes risks arising from physical damage due to increased severity andfrequency of adverse weather events, such as extreme storms and flooding, and longer-term shifts in climate patterns, such as risingtemperatures and sea levels and changes in precipitation amount and distribution, and is often referred to as “physical risks.” Thesecond category includes risks associated with the transition to a decarbonized society arising from changes in regulations, market
preferences, and technology, and is often referred to as “transition risks.”
Cognizant of our share of responsibilities as a global financial institution in combatting climate change, we are committed tosupporting efforts to transition to a decarbonized society through products and services we provide to clients and measures designed toreduce the adverse impact of our operational activities on the environment.
(3) Human Capital

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We believe it is necessary to strengthen our human capital, one of our most important capital and sources of value creation, inorder to realize our vision of becoming a global financial group in which each and every employee can be active and better positioned
to contribute to society and customers. We are committed to human capital management with a goal to foster professional
development and enhance the well-being of our employees in order to support their individual and organizational sustainable growthand better enable them to contribute to our effort to become the world’s most trusted financial group.
(a) Human Resource Development
MUFG has formulated MUFG Human Resources Principles as its basic approach to realizing human-capital management
based on MUFG Way. Our basic philosophy regarding human resource development is “to provide educational opportunities where
each employee can enhance his or her insight and ethical standards as well as his or her knowledge and expertise, and to support theautonomous career development of employees while at the same time developing diverse professional human resources who canembody MUFG Way.” In order to provide value that exceeds the expectations of society and customers, we intend to accelerate oureffort to further synchronize business strategies with human capital management and promote the enhancement of skills and expertiseof each employee.
(b) Internal Environmental Improvement
In order to realize MUFG Way, we are promoting “human capital-oriented management” as a priority issue in oursustainability management. As one of the largest and most diversified global financial groups, we aim to foster our diverse talents andprovide a work environment in which each and every employee can thrive. We also seek to help our employees demonstrate their fullpotential through implementation of measures designed to promote mental and physical health and DEI (diversity, equity andinclusion). At the same time, we seek to provide a work environment in which employees worldwide can grow and thrive as
professionals. In this way, we endeavor to assist our employees in realizing and sustaining their well-being in the medium- and longterm.
We have established a personnel system designed to attract and retain necessary human resources and maximize the abilitiesof our employees. At the same time, we aim to provide compensation that is competitive compared to other companies. For example,
in July 2024, we introduced a share-based compensation plan for qualified domestic employees holding managerial positions at
Mitsubishi UFJ Bank, Mitsubishi UFJ Trust and Banking, and Mitsubishi UFJ Morgan Stanley Securities. Our personnel system isalso designed to ensure compliance with laws and regulations in each country and region in which we operate through, for example,
regular monitoring and measures to improve working hours. We provide various employee benefits, including asset-building savings
schemes, corporate pensions, and stock ownership associations to help our employees with their asset building and financial wellness.
Risk Management(1) Sustainability
Based on the MUFG Environmental Policy Statement and the MUFG Human Rights Policy Statement, in an effort topromote environmentally and socially responsible financing, we have implemented the MUFG Environmental and Social Policy
Framework to manage environmental and social risks associated with finance operations (which mainly consist of credit, bond andequity underwriting for corporate clients of MUFG Bank, Mitsubishi UFJ Trust and Banking, and Mitsubishi UFJ Securities
Holdings). We have established a finance policy and introduced a due diligence process to identify and assess the environmental andsocial risks or impacts associated with such transactions.
Standard due diligence is conducted by departments that have a direct contact with customers to identify and assess theenvironmental and social risks of the business that is to be financed by us. If it is determined that the business needs to be examined
more carefully, we conduct enhanced due diligence and decide whether or not to finance the business.
As for businesses that are considered to have significant environmental and social risks and could potentially damage ourcorporate value or develop into a reputational risk, we hold discussions on how to handle it within a framework participated in bysenior management. In addition, MUFG Bank adopted the Equator Principles, a framework for identifying, assessing and controllingthe environmental and social risks of large-scale projects, and conducts risk assessments in accordance with its Guidelines.
The status of policies and initiatives relating to environmental and social risks are reviewed and discussed by the Credit &Investment Management Committee, the Credit Committee and the Risk Management Committee depending on the areas of theirrespective expertise. Conclusions reached by these committees are reported to the Executive Committee, and important matters
discussed by the Executive Committee are reported to and, in turn, discussed by the Board of Directors, which oversees the
management of risks related to environmental and social issues.
Process for identifying and assessing the environmental and social risks or impacts of a business to be financed25

Table of Contents(2) Climate Change
In order to strengthen our response to risks related to climate change, climate change-related risk management is currently being
integrated into our overall risk management framework based on our governance structure described above with an aim to better
enable identification, measurement and reduction of climate change-related risks and their potential portfolio, business and financial
impact from a comprehensive group-wide perspective. Our risk management framework is intended to address physical risks andtransition risks.
In the MUFG Environmental and Social Policy Framework mentioned above, with respect to the coal-fired power generation,mining (coal), oil and gas, and other specific sectors in which concerns are raised over environmental and social impacts, including
climate change, we have established our finance policy and a due diligence process to identify and assess the environmental and social
risks or impacts associated with transactions involving such sectors.
For a discussion of our climate change-related risks, see “Item 3.D. Key Information—Risk Factors—Risks Related to Our
Business Environment—Climate change could have a material adverse impact on us and our clients.” For more information on ourrisk management framework, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk.”(3) Human Capital
MUFG manages human resource risk by defining it as one of the operational risks. Human resource risk includes, among otherthings, human capital retention risk and employee morale deterioration risk. These risks are reported to, and evaluated and deliberated
by, the Risk Committee, the Risk Management Committee, and the Executive Committee, and shared with the Board of Directors as
appropriate.
Metrics & Targets(1) Sustainability
MUFG sets and monitors specific metrics and targets aimed at solving environmental and social issues. In light of the progress
made so far and the increasing demand for funds, we have raised our cumulative sustainable finance target for the fiscal year ending
March 31, 2031 from ¥35 trillion to ¥100 trillion. Our sustainable finance currently consists of the provision of financing, includingloans, equity investments in funds, arrangements of project finance and syndicated loans, underwriting of equities and bonds, andfinancial advisory service, with reference to the relevant external standards, such as the Green Loan Principles, the Green Bond
Principles and the Social Bond Principles, to businesses that are considered to contribute to the adaptation to and moderation ofclimate change, to the development of startups, job creation, and poverty alleviation and to the energization of local communities and26

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regional revitalization, as well as fundamental service businesses including those involved in basic infrastructure and essential public
services.
(2) Climate Change
In May 2021, we announced our intent to achieve net zero greenhouse gas, or GHG, emissions from our financed portfolio by
the end of 2050 and net zero GHG emissions from our operations by the end of the fiscal year ending March 31, 2031 in the MUFG
Carbon Neutrality Declaration. These goals demonstrate our support for the goals of the Paris Agreement on Climate Change and ourrecognition of climate change-related risks and opportunities as a top strategic priority for the MUFG Group.
In order to achieve net zero GHG emissions from our financed portfolio, so far we have set an interim target for the fiscal year
ending March 31, 2031 for each of the power, oil and gas, real estate, steel, shipping, automotive, aviation and coal sectors. For eachinterim target, we have considered and reflected, among other factors, the relevant characteristics of decarbonization pathways as wellas the uniqueness of our financed portfolio for each sector.
(3) Human Capital(a) Diversity, Equity & Inclusion
We are working to create a workplace where diverse employees can make the most of their abilities. For example, recognizingthat raising gender representation in managerial, i.e., line manager (jicho or kacho) or higher, positions in Japan is an urgent issue, wehave set medium- to long-term targets and are working on the development and promotion of female representation. We had a joint
target for our three major subsidiaries, Mitsubishi UFJ Bank, Mitsubishi UFJ Trust and Banking, and Mitsubishi UFJ Morgan Stanley
Securities, set at 22.0% of such managerial positions in Japan represented by women by the end of the fiscal year ended March 31,
2024, and achieved the target with a result of 22.3%, including promotion decisions and transfer instructions finalized on or before
March 31, 2024 and implemented thereafter. Under our Medium-term Business Plan, we aim to attain a target of 27.0% for female
representation on the same basis by the end of the fiscal year ending March 31, 2027.
(b) Employee Well Being
Recognizing that enhancing engagement is essential for sustained increases in corporate value, we take annual employee surveys
as a means to gauge employee engagement (engagement score) and utilize the results to consider and implement various measures.
Under our new Medium-term Business Plan, we have set a target engagement score on a group-wide basis and intend to make aconcerted effort to improve engagement.
(4) Uncertainties and Risks
Our ability to achieve any one or more of the foregoing targets is subject to various uncertainties and risks, which may bebeyond our control. If any such uncertainty or risk materializes, we may be unable to achieve our targets. See “Item 3.D. Key
Information—Risk Factors—Risks Related to Our Business Environment—Climate change could have a material adverse impact on
us and our clients.” and “Item 3.D. Key Information—Risk Factors—Operational Risk—Damage to our reputation could harm ourbusinesses.”
Business Groups
Under the new Medium-term Business Plan for the three-year period beginning on April 1, 2024, our business groups have beenreorganized as follows in an effort to further integrate the expertise and capabilities of our subsidiaries to respond to the needs of ourcustomers more effectively and efficiently. For information on the previous business groups, see “Item 5.A. Operating and Financial
Review and Prospects—Operating Results—Business Segment Analysis.”
Retail & Digital Business GroupThe Retail & Digital Business Group focuses on serving retail customers, excluding wealth management customers, in Japan.
This business group was formed on April 1, 2024 through the strategic reorganization of the Digital Service Business Group and the
Retail & Commercial Banking Business Group. This reorganization is a response to the evolving and diversifying retail customer
needs, including the demand for asset management solutions, driven by shifts in the economic and financial landscape. This businessgroup seeks to enable a wider range of retail customers to flexibly utilize MUFG’s diverse service channels.
One of the strategic missions of this business group is to expand its touchpoints by optimally mixing the three service channels
under the concept of “Real (Face-to-Face) × Remote × Digital” and deliver customer experience that makes its customers think “I’mglad I chose MUFG.” We aim to further strengthen our retail business by maximizing customer life-time value (LTV).
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Commercial Banking & Wealth Management Business GroupThe Commercial Banking & Wealth Management Business Group was established on April 1, 2024 as part of the strategic
reorganization of the Digital Service Business Group and the Retail & Commercial Banking Business Group in order to enhance theability of our employees to provide financial solutions and further strengthen business models that contribute to social solutions. Thisbusiness group provides solutions to small and medium-sized enterprise clients and wealth management clients in Japan.
In addition to strategies designed to capture opportunities arising from changes in the business environment in the small andmedium sized enterprise segment and in the wealth management segment, we seek to strengthen our business models by expanding
our business succession and asset succession businesses by targeting both corporate clients and wealth management clients.
Japanese Corporate & Investment Banking Business GroupThe Japanese Corporate & Investment Banking Business Group provides services to help large Japanese corporate customers
seeking global expansion achieve growth in their corporate value. We are engaged in the lending, fund settlement, and foreignexchange businesses and also provide comprehensive investment banking solutions and real estate-related services, fully employing
the expertise of each group entity.
We seek to improve profitability and balance sheet soundness through strategic pricing focused on achieving appropriate returns
and fine-tuning our balance sheet management policy in response to changes in the interest rate environment. Furthermore, we
continue with our effort to reduce our equity holdings for portfolio risk management purposes.
Our customers are expanding their business domains to address social issues. Through engagement with customers, we intend tocollaborate to cultivate new industries and businesses. In this process, we seek to create new financing opportunities and provide
financing to our customers, thereby contributing to the resolution of social issues.
Asset Management & Investor Services Business GroupThe Asset Management & Investor Services Business Group covers the asset management and investor services businesses ofMitsubishi UFJ Trust and Banking, MUFG Bank and Mitsubishi UFJ Asset Management. The business group offers a full range ofasset management and investor services for corporations and pension funds, including pension fund management and administration,
advice on pension structures, and payments to beneficiaries, and also offers investment trusts for retail customers.
We aim to expand our asset management and investor services business by enhancing the quality of our products and services,
effectively utilizing the broad customer base of the MUFG Group and improving our operational efficiency through IT technology.
Global Corporate & Investment Banking Business GroupThe Global Corporate & Investment Banking Business Group covers the corporate, investment and transaction banking
businesses of MUFG Bank and Mitsubishi UFJ Securities Holdings. Through a global network of offices and branches, we provide
non-Japanese large corporate and financial institution customers with a comprehensive set of solutions that meet their increasingly
diverse and sophisticated financing needs.
Through the integrated business management structure between the Global Corporate & Investment Banking Business Groupand the Global Markets Business Group, we aim to offer a wide range of financial services to meet the diverse needs of both corporate
and institutional investor customers.
The expansion of the global corporate and investment banking and global markets businesses has been an important pillar of the
MUFG Group’s growth strategy. We continue to work to strengthen the strategic alignment and collaboration among our groupcompanies and across global geographies in order to best deploy our comprehensive expertise to provide our customers with valueadded solutions and services.
Corporate Banking
Through our global network of offices and branches, we provide a full range of corporate banking solutions, such as project
finance, export credit agency finance, and financing through asset-backed commercial paper. Our primary customers include large
corporations, financial institutions, sovereign and multinational organizations, and institutional investors that are headquarteredoutside of Japan.

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Investment Banking
We provide investment banking services such as debt and equity issuance and M&A-related services to help our customers
develop their financial strategies and realize their business goals. In order to meet customers’ various financing needs, we haveestablished a customer-oriented coverage model through which our product experts coordinate with one another to offer innovative
financing services globally. We have further integrated the management of the operations of our commercial banking and securities
subsidiaries to enhance collaboration. We are one of the world’s top providers of project finance, one of the core businesses of the
Global Corporate & Investment Banking Business Group. We provide sophisticated professional services in arranging limitedrecourse finance and secured finance, and offering financial advice in various sectors, including natural resources, power, andinfrastructure, backed by our experience, expertise, knowledge, and global network.
Transaction Banking
We provide commercial banking products and services for large corporations and financial institutions in managing andprocessing domestic and cross-border payments, mitigating risks in international trade, and providing working capital optimization.
We provide customers with support for their domestic, regional and global trade finance and cash management programs through our
extensive global network.
Global Commercial Banking Business GroupThe Global Commercial Banking Business Group provides a comprehensive array of financial products and services such asloans, deposits, fund transfers, investments and asset management services for local retail customers, small and medium-sizedenterprises, and corporate customers across the Asia-Pacific region through our major local commercial banking subsidiaries andaffiliates outside of Japan referred to as “Partner Banks.” Our Partner Banks include Krungsri in Thailand, Bank Danamon inIndonesia, VietinBank in Vietnam and Security Bank in the Philippines.
The network among the Partner Banks covers a vast market, consisting of four countries with population totaling approximately
566 million. The market is expected to expand further in the medium to long term as the GDP growth rates are relatively high in thesecountries and financial needs are expected to increase as average income rise in the ASEAN countries. We believe that our network,
which combines the global reach of the MUFG Group companies with strong regional presence of the Partner Banks each carrying anestablished brand, provides us with unique competitive advantages. We aim to further strengthen the network by promoting businesscollaboration and enhancing governance. In addition, through continuous strategic investments in business areas such as digitalfinancial services, we seek to contribute to financial inclusion in Asia and capture the business opportunities arising from theeconomic growth of the region.
Bank of Ayudhya Public Company Limited (Krungsri)
Krungsri is a strategic subsidiary of MUFG Bank in Thailand. Krungsri provides a comprehensive range of banking, consumer
finance, investment, asset management, and other financial products and services to retail consumers, small and medium-sizedenterprises, and large corporations mainly in Thailand through 591 branches (consisting of 550 banking branches, 40 automobile
finance business branches and one overseas branch) and other service outlets nationwide. In addition, Krungsri’s consolidated
subsidiaries include the largest credit card issuer in Thailand with a market share of 18%, sales finance and personal loan accounts in
its portfolio, a major auto finance provider, a fast-growing asset management company and a leading microfinance service provider inThailand.
MUFG owns a 76.88% ownership interest in Krungsri through MUFG Bank as of March 31, 2024. By combining Krungsri’s
local franchise with competitive presence in the retail and small and medium-sized enterprise banking markets in Thailand with
MUFG Bank’s global financial expertise, we seek to offer a wider range of high-value financial products and services to a morediverse and larger customer base.
PT Bank Danamon Indonesia, Tbk. (Bank Danamon)
Bank Danamon is a strategic subsidiary of MUFG Bank in Indonesia. Bank Danamon provides a comprehensive range ofbanking and other financial products and services to retail consumers, small and medium-sized enterprises, and large corporations inIndonesia. It operates an extensive distribution network spread out from Aceh to Papua, with more than 863 branches and service
outlets.
In addition, Bank Danamon provides financing for automotive and consumer goods through PT Adira Dinamika Multi Finance
Tbk (ADMF), a subsidiary of Bank Danamon. In March 2024, we completed the acquisition of 80.6% of the shares of PT Mandala29

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Multifinance Tbk, a multi-finance company in Indonesia, through MUFG Bank and ADMF. We intend to further reinforce and expand
our auto loan business in Indonesia.
MUFG made an initial investment in December 2017 and owns a 92.47% ownership interest in Bank Danamon through MUFG
Bank as of March 31, 2024. This investment in Bank Danamon represents another milestone for our growth strategy in Indonesia andSoutheast Asia. We aim to offer a unique and unparalleled retail and small and medium-sized enterprise banking business model basedon the established local networks of our Partner Banks and MUFG’s global network to provide holistic financial services to a wider
range of customers.
Other Activities in Southeast Asia
We have been expanding our operations in Southeast Asia with an effort to further develop our businesses abroad. In addition to
Krungsri and Bank Danamon, we have strategic business and capital alliances with other banks in Southeast Asia, including
VietinBank in Vietnam and Security Bank in the Philippines, as our Partner Banks.
VietinBank provides a wide range of financial services to consumers, small businesses, middle-market and large companies
through its branch network predominantly in Vietnam. We own a 19.73% equity interest in VietinBank.
Security Bank provides a wide range of financial services to consumers, small businesses, middle-market and large companies
through its branch network in the Philippines. We own a 20% equity interest in Security Bank.
As part of our strategic investments to capture growth opportunities in the digital finance area, following the investments in
Silvrr Technology Co., Ltd. (known as “Akulaku”), a fintech company providing digital financial services primarily in Indonesia, andin DMI Finance Private Ltd., a fintech company providing digital financial services primarily in India, we completed the acquisition of
HC Consumer Finance Philippines, Inc. and PT Home Credit Indonesia, both of which were subsidiaries of a consumer financecompany headquartered in the Netherlands, in 2023. Further, we completed an investment in Ascend Money Company Limited, aprovider of digital financial services in Thailand, in June 2024.
Through strategic acquisitions and investments in Asia, we aim to further strengthen and enhance our business platform and willcontinue striving to contribute to the economic growth of the region.
See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Strategies and Our Major Investees—Our strategy to
expand the range of our financial products and services and the geographic scope of our business globally may fail if we are unable toanticipate or manage new or expanded risks that entail such global expansion.”
Global Markets Business GroupThe Global Markets Business Group covers the customer business and the treasury operations of MUFG Bank, Mitsubishi UFJ
Trust and Banking and Mitsubishi UFJ Securities Holdings. The customer business includes sales and trading in fixed income
instruments, currencies and equities as well as other investment products, and origination and distribution of financial products. The
treasury operations include asset and liability management as well as global investments for the MUFG Group. In the fiscal year ended
March 31, 2022, we started a new investment business in the Global Markets Business Group involving long-term diversified
investments as a new sustainable revenue source.
Customer Business
Sales and Trading in Fixed Income Instruments, Currencies and Equities. We provide financing, hedging, and investment
solutions to our retail, corporate, institutional, and governmental customers through sales and trading in financial market products suchas fixed income instruments, currencies, and equities.
Investment Products for Non-Institutional Customers in Japan. We provide investment products such as mutual funds, andstructured bonds, notes and deposits to non-institutional customers in Japan. We offer solutions using these investment products to
help customers better manage their assets and liabilities. This business is conducted through the integrated operations management
structure among the Global Markets Business Group, the Asset Management & Investor Service Business Group, the Commercial
Banking & Wealth Management Business Group, and the Japanese Corporate & Investment Banking Business Group.
Origination and Distribution. We provide financing solutions to institutional customers through origination and distribution offinancial products such as syndicated loans and securities issuances. This business is conducted through the integrated operations
management structure between the Global Markets Business Group and the Global Corporate & Investment Banking Business Group.

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Treasury Operations
Asset and Liability Management. We seek to manage interest rate and liquidity risks residing in our balance sheets through,among other things, transactions designed to manage the profit and loss impact attributable to market movements based on our balance
sheet analyses and forecasts. Such transactions include investments in high quality liquid securities such as Japanese government
bonds and U.S. Treasury bonds and trading in other financial products such as interest rate swaps and cross currency swaps.
Global Investment. Through our treasury operations, we also seek to enhance our profitability by diversifying our portfolio andstrategically investing in financial products including corporate bonds and funds.
Global Strategic Alliance with Morgan Stanley
As of March 31, 2024, we held approximately 377 million shares of Morgan Stanley’s common stock representing
approximately 23.2% of the voting rights in Morgan Stanley and Series C Preferred Stock with a face value of approximately $521.4
million and 10% dividend. As of the same date, we had two representatives appointed to Morgan Stanley’s board of directors. We
adopted the equity method of accounting for our investment in Morgan Stanley beginning with the fiscal year ended March 31, 2012.
In conjunction with Morgan Stanley, we formed two securities joint venture companies in May 2010 to integrate our respective
Japanese securities companies. We converted the wholesale and retail securities businesses conducted in Japan by Mitsubishi UFJ
Securities into Mitsubishi UFJ Morgan Stanley Securities. Morgan Stanley contributed the investment banking operations conductedin Japan by its former wholly-owned subsidiary, Morgan Stanley Japan, to Mitsubishi UFJ Morgan Stanley Securities, and converted
the sales and trading and capital markets businesses conducted in Japan by Morgan Stanley Japan into an entity called Morgan Stanley
MUFG Securities, Co., Ltd. We hold a 60% economic interest in Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley
MUFG Securities, and Morgan Stanley holds a 40% economic interest in Mitsubishi UFJ Morgan Stanley Securities and Morgan
Stanley MUFG Securities. We hold a 60% voting interest and Morgan Stanley holds a 40% voting interest in Mitsubishi UFJ Morgan
Stanley Securities, and we hold a 49% voting interest and Morgan Stanley holds a 51% voting interest in Morgan Stanley MUFG
Securities. Morgan Stanley’s and our economic and voting interests in the securities joint venture companies are held throughintermediate holding companies. We have retained control of Mitsubishi UFJ Morgan Stanley Securities and we account for ourinterest in Morgan Stanley MUFG Securities under the equity method due to our significant influence over Morgan Stanley MUFG
Securities. The board of directors of Mitsubishi UFJ Morgan Stanley Securities has fifteen members, nine of whom are designated by
us and six of whom are designated by Morgan Stanley. The board of directors of Morgan Stanley MUFG Securities has ten members,
six of whom are designated by Morgan Stanley and four of whom are designated by us. The CEO of Mitsubishi UFJ Morgan Stanley
Securities is designated by us and the CEO of Morgan Stanley MUFG Securities is designated by Morgan Stanley.
We have also expanded the scope of our global strategic alliance with Morgan Stanley into other geographies and businesses,
including (1) a loan marketing joint venture that provides clients in the United States with access to the world-class lending and capital
markets services from both companies, (2) business referral arrangements in Asia, Europe, the Middle East and Africa, covering
capital markets, loans, fixed income sales and other businesses, (3) global commodities referral arrangements whereby MUFG Bankand its affiliates refer clients in need of commodities-related hedging solutions to certain affiliates of Morgan Stanley, and (4) an
employee secondment program to share best practices and expertise in a wide range of business areas.
In July 2023, we jointly announced with Morgan Stanley the launch of “Alliance 2.0”, an enhanced Global Strategic Alliancefor further collaboration between both companies for the next decade and beyond. As part of this alliance, we and Morgan Stanley
began to collaborate in the Japanese stock market research and equity businesses for institutional clients in January 2024 and tocollaborate in foreign currency exchange trading in April 2024.
See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Strategies and Our Major Investees—If our strategic
alliance with Morgan Stanley fails, we could suffer financial or reputational loss.”
Competition
We face strong competition in all of our principal areas of operation. The structural reforms in financial industry regulations andrecent developments in financial markets have resulted in some significant changes in the Japanese financial system and promptedbanks to merge or reorganize their operations. In addition, development of new technologies such as artificial intelligence andblockchain has also allowed non-financial institutions to enter the financial services industry with alternative services, thus changing
the nature of competition from other financial institutions as well as from other types of businesses. See “Item 3.D. Key Information—
Risk Factors—Risks Related to Our Strategies and Our Major Investees—Our business may be adversely affected by competitive
pressures, which have partly increased due to regulatory changes and recent market changes in the financial industry domestically andglobally.”31

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Our major competitors in Japan include:•

Japan’s other major banking groups: Mizuho Financial Group and Sumitomo Mitsui Financial Group;•

Government financial institutions: Japan Finance Corporation, Japan Post Bank, Development Bank of Japan and Japan
Bank for International Cooperation;•

Other commercial banking institutions: Resona Bank, SBI Shinsei Bank, regional banks, and credit associations (shinkinbanks);•

Securities companies and investment banks: Nomura group and Daiwa group; and•Asset management companies.

Foreign
In foreign markets, we face competition from local and global commercial banks, money center banks, regional banks, thrift
institutions, asset management companies, investment advisory companies, credit unions, fintech companies and other similar
financial institutions.
The Japanese Financial System
Japanese financial institutions may be categorized into three types:•

the central bank, namely the Bank of Japan;•

private banking institutions; and•government financial institutions.

The Bank of JapanThe Bank of Japan’s role is to maintain price stability and the stability of the financial system to ensure a solid foundation forsound economic development.
Private Banking Institutions
Private banking institutions in Japan are commonly classified into two categories (the following numbers are based on
information published by the FSA available as of June 1, 2024):•

ordinary banks (121 ordinary banks and 54 foreign commercial banks with ordinary banking operations); and•trust banks (13 trust banks, including two Japanese subsidiaries of foreign financial institutions).

Ordinary banks in turn are classified as city banks, of which there are four, including MUFG Bank, and regional banks, of which
there are 99 and other banks, of which there are 18. In general, the operations of ordinary banks correspond to commercial banking
operations in the United States. City banks and regional banks are distinguished based on head office location as well as the size andscope of their operations.
The city banks are generally considered to constitute the largest and most influential group of banks in Japan. Generally, thesebanks are based in large cities, such as Tokyo and Osaka, and operate nationally through networks of branch offices. The city banks
provide a wide variety of banking and other financial products and services to large corporate customers, including the majorindustrial companies in Japan, as well as small and medium-sized companies and retail customers.
With some exceptions, the regional banks tend to be much smaller in terms of total assets than the city banks. Historically, eachof the regional banks has been based in one of the Japanese prefectures and has extended its operations into neighboring prefectures.
Their customers are mostly regional enterprises and local public utilities. Trust banks, including Mitsubishi UFJ Trust and Banking,provide various trust services relating to money trusts, pension trusts and investment trusts and offer other services relating to realestate, stock transfer agency and testamentary services, as well as banking services.
Government Financial Institutions

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There are a number of government financial institutions in Japan, which are corporations wholly owned or majority-owned by
the government and operate under the government’s supervision. Their funds are provided mainly from government sources. Certain
types of operations undertaken by these institutions have been or are planned to be assumed by, or integrated with the operations of,private corporations through privatizations and other measures.
Among them are the following:•

The Development Bank of Japan, which was established for the purpose of contributing to the economic development ofJapan by extending long-term loans, mainly to primary and secondary sector industries, and which was reorganized as a
joint stock company in October 2008 as part of its ongoing privatization process, with the government being required bylaw to continue to hold 50% or more of the shares in the bank until the completion of certain specified investment
operations, which the bank is required to endeavor to achieve by March 2026, and more than one-third for an unspecified
period thereafter;•

Japan Finance Corporation, which was formed in October 2008, through the merger of the international financial
operations of the former Japan Bank for International Cooperation, National Life Finance Corporation, Agriculture,
Forestry and Fisheries Finance Corporation, and Japan Finance Corporation for Small and Medium Enterprise, for the
primary purposes of supplementing and encouraging the private financing of exports, imports, overseas investments andoverseas economic cooperation, and supplementing private financing to the general public, small and medium-sizedenterprises and those engaged in agriculture, forestry and fishery. In April 2012, Japan Finance Corporation spun off its
international operations to create Japan Bank for International Cooperation as a separate government-owned entity;•

Japan Housing Finance Agency, which was originally established in June 1950 as the Government Housing Loan
Corporation for the purpose of providing housing loans to the general public, and which was reorganized as anincorporated administrative agency and started to specialize in securitization of housing loans in April 2007; and•The Japan Post Group companies, a group of joint stock companies including Japan Post Bank, which were formed in
October 2007 as part of the Japanese government’s privatization plan for the former Japan Post, a government-run public
services corporation, which had been the Postal Service Agency until March 2003. In November 2015, approximately 11%of the outstanding shares of each of Japan Post Bank, Japan Post Insurance and Japan Post Holdings were sold to the
public, and these companies are currently listed on the Tokyo Stock Exchange. As of March 31, 2024, Japan Post Holdings
held 61.50% of the outstanding shares of Japan Post Bank, with a publicly announced target to reduce its shareholding inJapan Post Bank to 50% or below by the end of March 2026. As of March 31, 2024, Japan Post Holdings held 49.84% of
the outstanding shares of Japan Post Insurance.

Supervision and Regulation
Japan
Supervision. The FSA is responsible for supervising and overseeing financial institutions, making policy for the overall Japanesefinancial system and conducting insolvency proceedings with respect to financial institutions. The Bank of Japan, as the central bankfor financial institutions, also has supervisory authority over banks in Japan, based primarily on its contractual agreements andtransactions with the banks.
The Banking Act. Among the various laws that regulate financial institutions, the Banking Act and its subordinated orders andordinances are regarded as the fundamental law for ordinary banks and other private financial institutions. The Banking Act addresses
capital adequacy, inspections and reporting of banks and bank holding companies, as well as the scope of business activities,
disclosure, accounting, limitation on granting credit and standards for arm’s length transactions for them. Bank holding companies,
banks and other financial institutions are required to establish an appropriate system to cope with conflicts of interest that may arise
from their business operations.
The Banking Act and various other financial regulation related laws have recently been amended, including certain
deregulations on restrictions for shareholdings by banks. For example, although a bank is generally prohibited from holding more than
5% of the outstanding shares of another domestic company (other than certain financial businesses) under the Banking Act, anamendment to the Banking Act which took effect in April 2017 allows banks to acquire and hold more than 5% of the voting rights incertain financial technology companies if approved by the FSA. An additional amendment to the Banking Act which took effect inJune 2018 introduced a framework for affiliation and cooperation between financial institutions and financial technology companies
while adding measures designed to ensure customer protection. A further amendment to the Banking Act which took effect in May
2020 allows banks to engage in certain information provision services relating to customer and other information. In addition, an
amendment to the Banking Act which took effect in November 2021 allows banks to engage in certain services contributory to theconstruction of a sustainable society such as regional revitalization or productivity enhancement and allows banks, with the FSA’s
approval, to acquire and hold more than 5% of the voting rights in companies which engage in certain services contributory to theconstruction of a sustainable society such as regional revitalization or productivity enhancement.
Bank holding company regulations. A bank holding company is prohibited from carrying out any business other than the
management of its subsidiaries and other incidental businesses. A bank holding company may have any of the following as a33

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subsidiary: a bank, a securities company, an insurance company, a foreign subsidiary that is engaged in the banking, securities orinsurance business and any company that is engaged in a finance-related business, such as a credit card company, a leasing company,
investment advisory company, or financial technology company as permitted by the April 1, 2017 amendments to the Banking Act.
Certain companies that are designated by a ministerial ordinance as those that cultivate new business fields may also become thesubsidiaries of a bank holding company.
In addition, under the April 1, 2017 amendments to the Banking Act, a bank holding company (i) is required to perform certain
specified functions as a bank holding company to ensure effective management of its subsidiaries and (ii) is allowed to engage incertain specified common operations of its subsidiaries so as to improve the efficiency of the operations of its group companies.
Capital adequacy. The capital adequacy guidelines adopted by the FSA that are applicable to Japanese bank holding companies
and banks with international operations closely follow the risk-weighted approach introduced by the Basel Committee on Banking
Supervision of the Bank for International Settlements.
Basel II, as adopted by the FSA, has been applied to Japanese banks since March 31, 2007. Basel III, as adopted by the FSA, hasbeen applied to Japanese banking institutions with international operations conducted through their foreign offices since March 31,
2013. Basel III is built on “three pillars”: (1) minimum capital requirements, (2) the self-regulation of financial institutions based onsupervisory review process, and (3) market discipline through the disclosure of information.
The Group of Central Bank Governors and Heads of Supervision reached an agreement on the new global regulatory
framework, which has been referred to as “Basel III,” in July and September 2010. In December 2010, the Basel Committee agreed on
the details of the Basel III rules. The agreement on Basel III includes the following: (1) raising the quality of capital to ensure banks
are able to better absorb losses both on a going concern basis and on a gone concern basis, (2) increasing the risk coverage of thecapital framework, in particular for trading activities, securitizations, exposures to off-balance sheet vehicles and counterparty credit
exposures arising from derivatives, (3) raising the level of minimum capital requirements, including an increase in the minimum
common equity requirement from 2% to 4.5%, which was phased in between January 1, 2013 and the end of the calendar year 2014,
and a capital conservation buffer of 2.5%, which was phased in between January 1, 2016 and the end of the calendar year 2018,bringing the total common equity requirement to 7%, (4) introducing an internationally harmonized leverage ratio to serve as abackstop to the risk-based capital measure and to contain the build-up of excessive leverage in the system, (5) raising standards for thesupervisory review process (Pillar 2) and public disclosures (Pillar 3), together with additional guidance in the areas of valuation
practices, stress testing, liquidity risk management, corporate governance and compensation, (6) introducing minimum global liquidity
standards consisting of both a short term liquidity coverage ratio, or LCR, and a longer term structural net stable funding ratio, or
NSFR, and (7) promoting the build-up of capital buffers that can be drawn down in periods of stress, including both a capitalconservation buffer and a countercyclical buffer to protect the banking sector from periods of excess credit growth.
Under Basel III, Common Equity Tier 1, Tier 1 and total capital ratios are used to assess capital adequacy, which ratios are
determined by dividing applicable capital components by risk-weighted assets. Total capital is defined as the sum of Tier 1 and Tier 2
capital.
Under Basel III, Tier 1 capital is defined to include Common Equity Tier 1 and Additional Tier 1 capital. Common Equity Tier 1
capital is a new category of capital primarily consisting of:•common stock,•capital surplus,•

retained earnings, and•accumulated other comprehensive income.

Regulatory adjustments including certain intangible fixed assets, such as goodwill, and defined benefit pension fund net assets(prepaid pension costs) will be deducted from Common Equity Tier 1 capital.
Additional Tier 1 capital generally consists of Basel III compliant preferred shares and perpetual subordinated obligations, net of
regulatory adjustments.
Tier 2 capital generally consists of:•Basel III compliant subordinated obligations,•allowances for credit losses, and•non-controlling interests in subsidiaries’ Tier 2 capital instruments.

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In order to qualify as Tier 1 or Tier 2 capital under Basel III, applicable instruments such as preferred shares and subordinateddebt must have a clause in their terms and conditions that requires them to be written-off or forced to be converted into common stock
upon the occurrence of certain trigger events.
Risk-weighted assets are the sum of risk-weighted assets compiled for credit risk purposes, quotient of dividing the amountequivalent to market risk by 8%, and quotient of dividing the amount equivalent to operational risk by 8%, and also include any
amount to be added due to transitional measures as well as floor adjustments, if necessary. Risk-weighted assets include the capitalcharge of the credit valuation adjustment, or CVA, the credit risk related to asset value correlation multiplier for large financial
institutions, the 250% risk-weighted threshold items not deducted from Common Equity Tier 1 capital, and certain Basel II capital
deductions that were converted to risk-weighted assets under Basel III, such as securitizations and significant investments incommercial entities. Certain Basel III provisions were adopted by the FSA with transitional measures and became effective March 31,
2013.
The capital ratio standards applicable to us are as follows:•a minimum total capital ratio of 8.0%,•

a minimum Tier 1 capital ratio of 6.0%, and•a minimum Common Equity Tier 1 capital ratio of 4.5%.

These minimum capital ratios are applicable to MUFG on a consolidated basis and to MUFG Bank and Mitsubishi UFJ Trustand Banking on a consolidated as well as stand-alone basis.
The approval granted to us by the FSA to exclude the majority of our investment in Morgan Stanley from being subject todouble gearing adjustments, which had been phased out over a ten-year period, expired on March 30, 2023.
The Financial Stability Board identified us as a global systemically important bank, or G-SIB, in its most recent annual reportpublished in November 2023, and is expected to update the list of G-SIB annually. In December 2015, the FSA also designated us as a
G-SIB as well as a domestic systemically important bank generally referred to as a “D-SIB.”
Effective March 31, 2016, the FSA’s capital conservation buffer, countercyclical buffer and G-SIB surcharge requirements
became applicable to Japanese banking institutions with international operations conducted through foreign offices, including us. The
requirements as of March 31, 2024 consist of a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclicalbuffer of 0.16% in addition to the 4.5% minimum Common Equity Tier 1 capital ratio.
In December 2017, the Group of Central Bank Governors and Heads of Supervision released final Basel III reforms. The
reforms are designed, among other things, to help reduce excessive variability in risk-weighted assets among banks and improve thecomparability and transparency of banks’ risk-based capital ratios. The reforms endorsed by the Group of Central Bank Governors andHeads of Supervision include the following elements:•

a revised standardized approach for credit risk, which is designed to improve the robustness and risk sensitivity of theexisting approach;•revisions to the internal ratings-based approach for credit risk, where the use of the most advanced internally modelledapproaches for low-default portfolios are limited;•

revisions to CVA framework, including the removal of the internally modelled approach and the introduction of a revised
standardized approach;•a revised standardized approach for operational risk, which replaces the previous standardized approaches and theadvanced measurement approaches;•

revisions to the measurement of the leverage ratio and a leverage ratio buffer for G-SIBs, which takes the form of a Tier 1
capital buffer set at 50% of a G-SIB’s risk-weighted capital buffer; and•an aggregate output floor, which is designed to ensure that banks’ risk-weighted assets generated by internal models are nolower than 72.5% of risk-weighted assets as calculated by the Basel III framework’s standardized approaches. Banks will
also be required to disclose their risk-weighted assets based on these standardized approaches.

These reforms, as adopted by the FSA, became generally applicable to Japanese banking institutions with international
operations conducted through foreign offices, including us, on March 31, 2024. Transitional measures, including revisions to theaggregate output floor, are being phased in from March 31, 2024, with the initial capital floor of 50%, and are scheduled to be fully
implemented at 72.5% from March 31, 2029.

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In January 2019, the Group of Central Bank Governors and Heads of Supervision approved the Basel Committee on Banking
Supervision’s finalized market risk capital framework. The approved market risk framework includes the revision of the standardized
approach and the internal model approach and the introduction of simplified standardized approach. The framework became generally
applicable to Japanese banking institutions with international operations conducted through foreign offices, including us, on March 31,2024.
For a discussion on our capital ratios, see “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital
Resources—Capital Adequacy.”
Leverage ratio. Japanese banks and bank holding companies with international operations, including us, are required to maintaina minimum leverage ratio and disclose their leverage ratios calculated in accordance with the methodology prescribed in the FSA
guidelines that have been adopted to implement the relevant Basel III standard. The leverage ratio is designed for monitoring andpreventing the build-up of excessive leverage in the banking sector and is expressed as the ratio of Tier 1 capital to total balance sheet
assets adjusted in accordance with the FSA guidelines. In December 2017, the Group of Central Bank Governors and Heads ofSupervision announced final Basel III reforms. The announced reforms include the revisions to the measurement of the leverage ratio
and a 3.00% minimum leverage ratio requirement, plus a G-SIB leverage ratio buffer equal to 50% of the applicable G-SIB capitalsurcharge. In Japan, the FSA adopted a minimum leverage ratio requirement at 3.00%, effective March 31, 2019, and the minimum
leverage ratio requirement applied to us as of March 31, 2024 was 3.75%, including a leverage ratio buffer set at 50% of a G-SIB
surcharge which, as applied to us, equals 0.75%. From June 30, 2020 to March 31, 2024, deposits with the Bank of Japan were
temporarily excluded from the calculation of the leverage ratio. On and after April 1, 2024, the applicable minimum leverage ratio
requirement including the applicable minimum leverage ratio buffer requirement is raised from 3.00% plus a G-SIB leverage ratio
buffer set at 50% of a G-SIB surcharge to 3.15% plus a G-SIB leverage ratio buffer set at 50% of a G-SIB surcharge plus 0.05%,
while deposits with the Bank of Japan remain excluded from the leverage exposure for the purpose of the calculation of the leverage
ratio in light of exceptional macroeconomic conditions and other circumstances.
Total loss-absorbing capacity. In November 2015, the Financial Stability Board issued the final Total Loss-Absorbing Capacity,
or TLAC, standard for G-SIBs, including us. The Financial Stability Board’s TLAC standard is designed to ensure that if a G-SIB
fails, it has sufficient loss-absorbing and recapitalization capacity available in resolution to implement an orderly resolution thatminimizes impacts on financial stability, ensures the continuity of critical functions, and avoids exposing public funds to loss. The
Financial Stability Board’s TLAC standard defines a minimum requirement for the instruments and liabilities that should be readily
available to absorb losses in resolution.
The TLAC standard which was set forth in the regulatory notices and related materials for the implementation of the Financial
Stability Board’s TLAC standard in Japan published by the FSA in March 2019 and which became fully applicable to (i) G-SIBs in
Japan on March 31, 2022, and (ii) a domestic systemically important bank designated by the FSA, or D-SIB, in Japan deemed to be inparticular need for a cross-border resolution arrangement and of particular systemic significance to the Japanese financial system if it
fails (such G-SIBs and D-SIB, collectively, “Covered SIBs”) on March 31, 2024, respectively, or the Japanese TLAC Standard,requires entities designated by the FSA as Domestic Resolution Entities for Covered-SIBs to meet certain minimum external total lossabsorbing capacity, or External TLAC, requirements. The Japanese TLAC Standard and the Financial Stability Board’s TLAC
standard also require the Domestic Resolution Entities to cause any of their material subsidiaries in Japan designated as systemicallyimportant by the FSA or their foreign subsidiaries subject to TLAC or similar requirements in the relevant jurisdictions to maintaincertain minimum level of capital and debt having internal total loss-absorbing and recapitalization capacity, or Internal TLAC.
In the Japanese TLAC Standard, the FSA has designated the relevant ultimate holding companies in Japan as Domestic
Resolution Entities for the Covered SIBs and, in our case, MUFG as the Domestic Resolution Entity for our Group, making MUFG
subject to the External TLAC requirements in Japan. The FSA has also designated MUFG Bank, Mitsubishi UFJ Trust and Banking
and Mitsubishi UFJ Morgan Stanley Securities as MUFG’s material subsidiaries in Japan, which are subject to the Internal TLAC
requirements applicable to MUFG.
External TLAC debt generally consists of Basel III compliant regulatory capital and the Japanese TLAC Standard compliant
obligations, net of regulatory adjustments. Internal TLAC debt generally consists of Basel III compliant regulatory capital and theJapanese TLAC Standard compliant subordinated obligations, net of regulatory adjustments. The Japanese TLAC Standard does not
require that, in order for unsecured senior debt issued by the Domestic Resolution Entity of a Japanese G-SIB to qualify as External
TLAC debt, such debt be subject to any contractual write-down, write-off or conversion provisions or to any subordination provisions
so long as its creditors are recognized as structurally subordinated to the creditors of its subsidiaries and affiliates by the FSA on the
ground that the amount of excluded liabilities of such Domestic Resolution Entity ranking pari passu with, or junior to, its unsecured
senior liabilities does not, in principle, exceed 5% of the aggregate amount of its External TLAC. In contrast, Internal TLAC debt
incurred by a material subsidiary of a Japanese G-SIB is required to be subject to contractual loss absorption provisions and to besubordinated to such subsidiary’s excluded liabilities.
The Japanese TLAC Standard requires a Japanese G-SIB, such as us, to issue and maintain External TLAC debt in an amount
not less than 18% of its consolidated risk-weighted assets and 7.10% (6.75% from March 31, 2022 until March 31, 2024) of the36

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applicable Basel III leverage ratio denominator. In addition, under the Japanese TLAC Standard, Japanese G-SIBs are allowed tocount as External TLAC the Japanese Deposit Insurance Fund Reserves in an amount equivalent to 3.5% of their consolidated riskweighted assets.
Deposits with the Bank of Japan were temporarily excluded from the calculation of External TLAC ratio and Internal TLAC
amounts on a total exposure basis (also referred to as a leverage exposure basis) as well as the leverage ratio from June 30, 2020 until
March 31, 2024. On and after April 1, 2024, the applicable External TLAC ratio on a total exposure basis is raised from 6.75% to7.10%, while deposits with the Bank of Japan remain excluded from the total exposure for the purpose of the calculation of External
TLAC ratio and Internal TLAC amounts in light of exceptional macroeconomic conditions and other circumstances.
Under the Japanese TLAC Standard, the FSA may order the Domestic Resolution Entity of a Covered SIB to submit a reportoutlining an improvement plan if the External TLAC ratio of the Domestic Resolution Entity or the Internal TLAC of its material
subsidiaries in Japan falls below the minimum requirements. If the FSA further deems it necessary to ensure improvement, the FSA
may issue a business improvement order to such Domestic Resolution Entity.
The Domestic Resolution Entity may also be subject to a capital distribution constraints plan if the capital buffers are used andreduced below the required level to make up for its required External TLAC on a risk-weighted assets basis.
See “Item 3.D Key Information—Risk Factors—Risks Related to Our Ability to Meet Regulatory Capital Requirements—We
may not be able to maintain our capital ratios and other regulatory ratios above minimum required levels, which could result in various
regulatory actions, including the suspension of some or all of our operations.”
Prompt corrective action system. Under the prompt corrective action system, the FSA may take corrective action, if a bank or abank holding company fails to meet the minimum capital adequacy ratio or leverage ratio. These actions include requiring such bankor bank holding company to formulate and implement capital improvement measures, requiring it to reduce assets or the bank’sbusiness operations or take other specific actions, and issuing an order to dispose of shares of its subsidiaries or suspend all or part ofthe bank’s business operations.
Capital distribution constraints system. Under the capital distribution constraints system, the FSA may order a bank or a bankholding company to submit and carry out a capital distribution constraints plan, if the bank or the bank holding company fails tomaintain Common Equity Tier 1 capital required as applicable capital buffers, or if the bank or the bank holding company is aJapanese G-SIB, such as us, and fails to maintain Tier 1 capital required as applicable leverage buffers. A capital distribution
constraints plan must be determined to be reasonably designed to restore the required capital buffers or leverage buffers by restricting
capital distributions, such as dividends, share buybacks, interest payments on, and redemption and repurchase of, Additional Tier 1
capital instruments, and bonus payments, up to a certain amount depending on the level of the deficit in the required capital buffers orleverage buffers of the bank or the bank holding company.
Prompt warning system. Under the prompt warning system, the FSA may take precautionary measures to maintain and promote
the sound operations of financial institutions, even before those financial institutions become subject to prompt corrective actions.
These measures require a financial institution to enhance profitability, credit risk management, stability and cash flows.
Deposit insurance system and government measures for troubled financial institutions. The Deposit Insurance Act is intended toprotect depositors if a financial institution fails to meet its obligations. The Deposit Insurance Corporation was established inaccordance with the Deposit Insurance Act.
City banks, including MUFG Bank, regional banks, trust banks, including Mitsubishi UFJ Trust and Banking, and various othercredit institutions participate in the deposit insurance system on a compulsory basis.
Under the Deposit Insurance Act, the maximum amount of protection is ¥10 million per customer within one bank. The ¥10
million maximum applies to all deposits except for non-interest-bearing deposits, which are non-interest-bearing deposits redeemableon demand and maintained by depositors primarily in settlement accounts for payment and settlement purposes. Deposits in settlement
accounts are fully protected without a maximum amount limitation. Certain types of deposits are not covered by the deposit insurance
system, such as foreign currency deposits and negotiable certificates of deposit. As of April 1, 2024, the Deposit Insurance
Corporation charged an insurance premium equal to 0.021% per year on the deposits in the settlement accounts, and a premium equal
to 0.014% per year on the deposits in other accounts.
Under the Deposit Insurance Act, a Financial Reorganization Administrator can be appointed by the Prime Minister if a bank’s
liabilities exceed its assets or a bank has suspended, or is likely to suspend, repayment of deposits. The Financial Reorganization
Administrator will take control of the assets of the troubled bank, dispose of the assets and search for another institution willing to takeover the troubled bank’s business. The troubled bank’s business may also be transferred to a “bridge bank” established by the Deposit
Insurance Corporation to enable the troubled bank’s operations to be maintained and continue temporarily, and the bridge bank willseek to transfer the troubled bank’s assets to another financial institution or dissolve the troubled bank. The Deposit Insurance
Corporation protects deposits, as described above, either by providing financial aid for costs incurred by the financial institution
succeeding the insolvent bank or by paying insurance money directly to depositors. The financial aid provided by the Deposit37

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Insurance Corporation may take the form of a monetary grant, loan or deposit of funds, purchase of assets, guarantee or assumption ofdebt, subscription for preferred stock, or loss sharing.
The Deposit Insurance Act also provides for exceptional measures to cope with systemic risk in the financial industry. Where
the Prime Minister recognizes that the failure of a bank which falls into any of (i) through (iii) below may cause an extremely grave
problem to the maintenance of the financial order in Japan or the region where such bank is operating, or systemic risk, if none of themeasures described in (i) through (iii) below is implemented, the Prime Minister may, following deliberation by the Financial Crisis
Response Council, confirm (nintei) the need to take any of the following measures: (i) if the bank does not fall into either of thecategories described in (ii) or (iii) below, the Deposit Insurance Corporation may subscribe for shares or subordinated bonds of, or
extend subordinated loans to the bank, or subscribe for shares of the bank holding company of the bank, in order to enhance the bank’s
regulatory capital (“Item 1 measures” (dai ichigo sochi)); (ii) if the bank has suspended, or is likely to suspend, repayment of deposits,
or its liabilities exceed its assets, financial aid exceeding the pay-off cost may be made available to such bank (“Item 2 measures” (dainigo sochi)); and (iii) if the bank has suspended, or is likely suspend, repayment of deposits, and its liabilities exceed its assets, and thesystemic risk cannot be avoided by the measures mentioned in (ii) above, the Deposit Insurance Corporation may acquire all of thebank’s shares (“Item 3 measures” (dai sango sochi)). The expenses for the implementation of the above measures will be borne by thebanking industry, with an exception under which the Japanese government may provide partial subsidies for such expenses.
Under the new orderly resolution regime established by amendments to the Deposit Insurance Act that were promulgated inJune 2013 and became effective on March 6, 2014, financial institutions, including banks, insurance companies and securities
companies and their holding companies, are subject to the regime. Further, where the Prime Minister recognizes that the failure of afinancial institution which falls into either of (a) or (b) below may cause a significant disruption to the Japanese financial market or
system in Japan if measures described in (a) or measures described in (b) are not taken, the Prime Minister may, following deliberationby the Financial Response Crisis Council, confirm (nintei) that any of the following measures need to be applied to the financial
institution:(a)if the financial institution is not a financial institution whose liabilities exceed its assets, the financial institution shall beplaced under the special supervision by the Deposit Insurance Corporation over the financial institution’s business
operations and management and the disposal of the financial institution’s assets, and the Deposit Insurance Corporation
may provide the financial institution with loans or guarantees necessary to avoid the risk of significant disruption to thefinancial system in Japan, or subscribe for shares or subordinated bonds of, or extend subordinated loans to, the financial
institution, taking into consideration the financial condition of the financial institution (“Specified Item 1
measures” (tokutei dai ichigo sochi) under Article 126-2, Paragraph 1, Item 1 of the Deposit Insurance Act); or(b)

if the financial institution is a financial institution whose liabilities exceed, or are likely to exceed, its assets or which hassuspended, or is likely to suspend, payments on its obligations, the financial institution shall be placed under the special
supervision by the Deposit Insurance Corporation over the financial institution’s business operations and management andthe disposal of the financial institution’s assets, and the Deposit Insurance Corporation may provide financial aid necessary
to assist a merger, business transfer, corporate split or other reorganization in respect of such failed financial institution(“Specified Item 2 measures” (tokutei dai nigo sochi) under Article 126-2, Paragraph 1, Item 2 of the Deposit InsuranceAct).

If the Prime Minister confirms that any of the measures set out in (b) above needs to be applied to a failed financial institution,
the Prime Minister may order that the failed financial institution’s business operations and management and the disposal of the failed
financial institution’s assets be placed under the special control of the Deposit Insurance Corporation. The business or liabilities of thefinancial institution subject to the special supervision or the special control of the Deposit Insurance Corporation as set forth above
may also be transferred to a “bridge financial institution” established by the Deposit Insurance Corporation to enable the financial
institution’s operations to be maintained and continue temporarily, or the financial institution’s liabilities to be repaid, and the bridgefinancial institution will seek to transfer the financial institution’s business or liabilities to another financial institution or dissolve thefinancial institution. The financial aid provided by the Deposit Insurance Corporation to assist a merger, business transfer, corporate
split or other reorganization in respect of the failed financial institution set out in (b) above may take the form of a monetary grant,
loan or deposit of funds, purchase of assets, guarantee or assumption of debts, subscription for preferred stock or subordinated bonds,
subordinated loan, or loss sharing. If the Deposit Insurance Corporation has provided such financial assistance, the Prime Ministermay designate the movable assets and claims of the failed financial institution as not subject to attachment, and such merger, business
transfer, corporate split or other reorganization may be conducted outside of the court-administrated insolvency proceedings. If thefinancial institution subject to the special supervision or the special control by the Deposit Insurance Corporation as set forth above
has liabilities that exceed, or are likely to exceed, its assets, or has suspended, or is likely to suspend, payments on its obligations, thefinancial institution may transfer all or a material portion of its business or all or a material portion of shares of its subsidiaries orimplement corporate split or certain other corporate actions with court permission in lieu of any shareholder resolutions. In addition,
the Deposit Insurance Corporation must request other financial institution creditors of the failed financial institution to refrain fromexercising their rights against the failed financial institution until measures necessary to avoid the risk of significant disruption to thefinancial system in Japan have been taken, if it is recognized that such exercise of their rights is likely to make the orderly resolutionof the failed financial institution difficult.

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The expenses for implementation of the measures under this regime will be borne by the financial industry, with an exception
under which the Japanese government may provide partial subsidies for such expenses within the limit to be specified in thegovernment budget in cases where it is likely to cause extremely serious hindrance to the maintenance of the credit system in Japan orsignificant turmoil in the Japanese financial market or system if such expenses are to be borne only by the financial industry.
According to the announcement made by the FSA in March 2014, (i) Additional Tier 1 instruments and Tier 2 instruments under
Basel III issued by a bank must be written down or converted into common shares when the Prime Minister confirms (nintei) that Item
2 measures (dai nigo sochi), Item 3 measures (dai sango sochi), or Specified Item 2 measures (tokutei dai nigo sochi) need to be
applied to the bank and (ii) Additional Tier 1 instruments and Tier 2 instruments under Basel III issued by a bank holding company
must be written down or converted into common shares when the Prime Minister confirms (nintei) that Specified Item 2 measures(tokutei dai nigo sochi) need to be applied to the bank holding company.
Further, in an explanatory paper outlining the FSA’s approach for the introduction of the TLAC framework in Japan publishedby the FSA in April 2016 and revisions to the paper published by the FSA in April 2018, collectively the FSA TLAC Approach, aswell as in the Japanese TLAC Standard, the FSA expressed its view that single point of entry, or SPE, resolution, in which a single
national resolution authority applies its resolution tools to the ultimate holding company in Japan of a financial group, would be thepreferred strategy for resolution of the Covered SIBs. However, it is uncertain which measure is to be taken in a given case, including
whether or not the SPE resolution strategy will actually be elected and implemented in a given case, and the actual measures to betaken will be determined on a case-by-case basis considering the actual condition of the relevant Japanese G-SIB in distress. Under apossible model of resolution of a Japanese G-SIB based on the SPE resolution strategy as described in the Japanese TLAC Standard, if
the FSA determines that a material subsidiary in Japan of a financial institution that is a Japanese G-SIB is non-viable due to material
deterioration in its financial condition and issues an order concerning restoration of financial soundness, including recapitalization andrestoration of liquidity of such material subsidiary, to the ultimate holding company in Japan designated by the FSA as Domestic
Resolution Entity for the financial institution under the Banking Act of Japan (Act No. 59 of 1981), the material subsidiary’s Internal
TLAC instruments will be written off or, if applicable, converted into equity in accordance with the applicable contractual loss
absorption provisions of such Internal TLAC instruments. Following the write-off or conversion of Internal TLAC instruments, if thePrime Minister recognizes that the financial institution’s liabilities exceed, or are likely to exceed, its assets, or that it has suspended,or is likely to suspend, payments on its obligations, as a result of the financial institution’s loans to, or other investment in, the material
subsidiary becoming subject to loss absorption or otherwise, and further recognizes that the failure of such financial institution is
likely to cause a significant disruption to the Japanese financial market or system, the Prime Minister may, following deliberation by
the Financial Crisis Response Council, confirm that Specified Item 2 Measures (tokutei dai nigo sochi) need to be applied to thefinancial institution for its orderly resolution. Any such confirmation by the Prime Minister also triggers the point of non-viability
clauses of Additional Tier 1 and Tier 2 instruments issued by the financial institution, causing such instruments to be written off or, if
applicable, converted into equity, as described above.
Upon the application of Specified Item 2 Measures (tokutei dai nigo sochi), a financial institution will be placed under the
special supervision by, or if the Prime Minister so orders, under the special control of, the Deposit Insurance Corporation. In an
orderly resolution, the Deposit Insurance Corporation would control the operation and management of a financial institution’s
business, assets and liabilities, including the potential transfer to a bridge financial institution established by the Deposit Insurance
Corporation as its subsidiary, or such other financial institution as the Deposit Insurance Corporation may determine, of the financial
institution’s systemically important assets and liabilities, which we expect in the case of MUFG would include the shares of ourmaterial subsidiaries based on the Japanese TLAC Standard. The Prime Minister may prohibit creditors of the financial institution
from attaching any of our assets and claims which are to be transferred to a bridge financial institution or another financial institution.
Based on the Japanese TLAC Standard, it is currently expected that the External TLAC eligible senior notes issued by the financial
institution will not be transferred to a bridge financial institution or other transferee in the orderly resolution process but will remain as
such financial institution’s liabilities subject to court-administered insolvency proceedings. On the other hand, in an orderly resolution
process, the shares of material subsidiaries of such financial institution may be transferred to a bridge financial institution or othertransferee, and such financial institution would only be entitled to receive consideration representing the fair value of such shares,
which could be significantly less than the book value of such shares. Following such business transfer, the recoverable value of suchfinancial institution’s residual assets in court-administered insolvency proceedings may not be sufficient to fully satisfy any payment
obligations that such financial institution may have under its liabilities, including the External TLAC eligible senior notes.
Recovery and resolution plan. In November 2023, the Financial Stability Board published the latest list of G-SIBs, which
includes us. The list is annually updated by the Financial Stability Board. A recovery and resolution plan must be put in place for each
G-SIB, and the plans must be regularly reviewed and updated. In Japan, under the Banking Act and the Comprehensive Guidelines forSupervision of Major Banks, etc., financial institutions identified as G-SIBs must, as part of their crisis management, prepare andsubmit a recovery plan, including triggers for the recovery plan and an analysis of recovery options, to the FSA. The Comprehensive
Guidelines also provide that resolution plans for such financial institutions are prepared by the FSA. We have submitted our mostrecent recovery plan to the FSA in a timely manner.
Liquidity Coverage Ratio. Japanese banks and bank holding companies with international operations conducted through foreign
offices are required to maintain a minimum LCR and disclose their LCRs calculated in accordance with the methodology prescribed in
the FSA guidelines that have been adopted to implement the relevant Basel III standard. The LCR is a measure to determine whether a39

Table of Contentsbank has a sufficient amount of high-quality liquid assets, which are assets that can be converted easily and immediately into cash inprivate markets in order to meet the bank’s liquidity needs, to survive in a 30-day financial stress scenario, including sizable deposit
outflows, inability to issue new bonds or access the interbank market, stoppage of the collateralized funding market, need for
additional collateral in connection with derivative transactions, and significant outflows of cash under commitment lines to customers.
Once a bank or bank holding company fails to meet the minimum LCR of 100%, it is required to immediately report such failure to
the FSA. If the FSA deems the financial condition of the bank or bank holding company to be serious, the FSA may issue a business
improvement order. A minimum LCR of 100% is currently required.
Net Stable Funding Ratio. Japanese banks and bank holding companies with international operations conducted through foreign
offices are also required to maintain a minimum NSFR and disclose their NSFRs calculated in accordance with the methodology
prescribed in the FSA guidelines that have been adopted to implement the relevant Basel III standard. The NSFR is a measure to
determine whether a bank has sustainable and long-term liabilities and capital for its assets and activities. The Basel Committee on
Banking Supervision issued the final standard of NSFR in October 2014. In Japan, the FSA promulgated its NSFR guidelines on
March 31, 2021, and the NSFR requirements became applicable on September 30, 2021, requiring a minimum NSFR of 100%. Once abank or bank holding company fails to meet the minimum NSFR of 100%, it is required to immediately report such failure to the FSA.
If the FSA deems the financial condition of the bank or bank holding company to be serious, the FSA may issue a business
improvement order.
Inspection and reporting. The FSA has the authority to order reporting from, and inspect, banks and banking holding companies
in Japan. Based on its “Principles and Approaches of Inspection and Supervision,” the FSA seeks to evaluate the effectiveness of theoperations and functions of financial institutions, supervise financial institutions based on proactive and forward-looking analyses,
facilitate best practices among financial institutions, focus monitoring on high-priority issues, and integrate on- and off-sitemonitoring.
Furthermore, the Securities and Exchange Surveillance Commission of Japan, or SESC, inspects banks in connection with theirsecurities business as well as financial instruments business operators, such as securities firms. The Bank of Japan also conducts
inspections of banks. The Bank of Japan Law provides that the Bank of Japan and financial institutions may agree as to the form ofinspection to be conducted by the Bank of Japan.
Laws limiting shareholdings of banks. The provisions of the Antimonopoly Act that generally prohibit a bank from holding
more than 5% of another domestic company’s voting rights do not apply to a bank holding company.
However, the Banking Act prohibits a bank holding company and its subsidiaries from holding, on an aggregated basis, morethan 15% of the voting rights of domestic companies other than those which can legally become subsidiaries of bank holding
companies. There have recently been amendments to various financial regulation related laws, including the Banking Act, which
include certain deregulations of restrictions on shareholdings by banks, as described in “— Bank holding company regulations” above.
In addition, a bank is prohibited from holding shares in other companies exceeding the aggregate of its Common Equity Tier 1
capital amount and Additional Tier 1 capital amount.
Restrictions on exposures to single large counterparties. The Banking Act prohibits banks and bank holding companies withinternational operations (on a consolidated basis with their subsidiaries and affiliates) from having large exposure exceeding 25% of
their Tier 1 capital to a single counterparty and also prohibits a G-SIB’s exposure to another G-SIB exceeding 15% of its Tier 1
capital.
Financial Instruments and Exchange Act. The Financial Instruments and Exchange Act provides protection for investors andalso regulates sales of a wide range of financial instruments and services, requiring financial institutions to improve their sales rules
and strengthen compliance frameworks and procedures. Among the instruments that the Japanese banks deal in, derivatives, foreign
currency-denominated deposits, and variable insurance and annuity products are subject to regulations covered by the sales-related
rules of conduct under the law.
Article 33 of the Financial Instruments and Exchange Act generally prohibits banks from engaging in securities transactions.
However, bank holding companies and banks may, through a domestic or overseas securities subsidiary, conduct all types of securities
businesses, with appropriate approval from the FSA. Similarly, registered banks are permitted to provide securities intermediation
services and engage in certain other similar types of securities related transactions, including retail sales of investment funds andgovernment and municipal bonds. In June 2021, certain amendments to the Cabinet Office Ordinance under the Act became effective,
which allowed non-public and other information of foreign company customers to be shared within a financial group. In addition, on
June 22, 2022, certain amendments to the Cabinet Office Ordinance under the Act became effective, which allowed non-public andother information of certain subject companies such as listed companies to be shared within a financial group without consent of suchcompanies, but required financial institutions to establish measures to respond to a request from relevant companies for suspension of
sharing of such information. At the same time, financial institutions are required to strengthen the effectiveness of measures to prevent
market abuse.
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Subsidiaries of bank holding companies engaging in the securities business are subject to the supervision of the FSA as financial
instruments business operators. The Prime Minister has the authority to regulate the securities industry and securities companies,
which authority is delegated to the Commissioner of the FSA under the Financial Instruments and Exchange Act. In addition, the
SESC, an external agency of the FSA, is independent from the FSA’s other bureaus and is vested with the authority to conduct day-today monitoring of the securities markets and to investigate irregular activities that hinder fair trading of securities, including
inspections of securities companies as well as banks in connection with their securities business. Furthermore, the Commissioner of
the FSA delegates certain authority to the Director General of the Local Finance Bureau to inspect local securities companies and theirbranches. A violation of applicable laws and ordinances may result in various administrative sanctions, including revocation ofregistration, suspension of business, administrative monetary penalty or an order to discharge any director or executive officer who has
failed to comply with applicable laws and ordinances. Securities companies are also subject to the rules and regulations of theJapanese stock exchanges and the Japan Securities Dealers Association, a self-regulatory organization of securities companies.
Act on Provision of Financial Services and the Development of the Accessibility Environment Thereto. Under the Act on
Provision of Financial Services and the Development of the Accessibility Environment Thereto, sellers of financial instruments have aduty to their potential customers to explain important matters such as the nature and magnitude of risks involved regarding thefinancial instruments that they intend to sell. If a seller fails to comply with the duty, there is a rebuttable presumption that the loss
suffered by the customer due to the seller’s failure to explain is equal to the amount of decrease in the value of the purchased financial
instruments.
In addition, under a single registration for financial services intermediary business, registrants are permitted to provide
intermediary services of each of banking, securities and insurance. The Act does not require any provider of financial services
intermediary business to belong to a specific financial institution, but imposes certain regulations on such provider to protect
customers, including limitations on the type of services that they may provide, prohibitions on the acceptance of assets of customers
and the lodging of a security deposit.
Anti-money laundering laws. Under the Act on Prevention of Transfer of Criminal Proceeds, specified business operators,
including financial institutions, are required to verify customer identification data, preserve transaction records, and file suspicioustransaction reports with the FSA or other regulatory authorities in cases where any asset received through their business operations issuspected of being criminal proceeds.
Based on “Guidelines on Anti-Money Laundering and Terrorist Financing”, the FSA requires financial institutions to strengthen
their management of anti-money laundering and terrorist financing functions and their risk-based approach used in such functions.
Recent amendments to the Enforcement Ordinance of the Act introduced requirements relating to online KYC processes in
November 2018 and strengthened the requirements for KYC processes for customers residing in remote areas in April 2020.
Acts concerning trust business conducted by financial institutions. Under the Trust Business Act, joint stock companies that arelicensed by the Prime Minister as trust companies, including non-financial companies, are allowed to conduct trust business. In
addition, under the Act on Provision, etc. of Trust Business by Financial Institutions, banks and other financial institutions, as
permitted by the Prime Minister, are able to conduct trust business. The Trust Business Act provides for a separate type of registration
for trustees who conduct only administration type trust business. The Trust Business Act also provides for various duties imposed on
the trustee in accordance with and in addition to the Trust Act.
Act on the Protection of Personal Information. With regard to protection of personal information, the Act on the Protection of
Personal Information requires, among other things, Japanese banking institutions to limit the use of personal information to the statedpurposes and to properly manage the personal information in their possession, and forbids them from providing personal information
to third parties without consent. If a bank violates certain provisions of the Act, the Personal Information Protection Commission ofJapan may advise or order the bank to take proper action. In addition, the Banking Act and the Financial Instruments and Exchange
Act contain certain provisions with respect to appropriate handling of customer information.
Act on the Use of Personal Identification Numbers in the Administration of Government Affairs. Pursuant to the Act on the Useof Personal Identification Numbers in the Administration of Government Affairs, which became effective in October 2015, theJapanese government has adopted a Social Security and Tax Number System, which is designed to (1) improve social security
services, (2) enhance public convenience in obtaining government services, and (3) increase the efficiency of the administration of
government affairs. Under this system, a 12-digit unique number is assigned to each resident of Japan to identify and manage
information relating to the resident for government service and tax purposes. Financial institutions are required to implement measures
to ensure that such customer information will be protected from inappropriate disclosure and other unauthorized use.
Act on the Promotion of Ensuring National Security through Integrated Implementation of Economic Measures. Specified
essential infrastructure service providers designated by the competent regulator are required to submit to the competent regulator aplan for review before they introduce specified critical facilities or outsource certain critical maintenance, management or control of
specified critical facilities to third parties. Based on its review, the regulator may issue a recommendation or order to take necessary
measures. MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Morgan Stanley Securities were designated as
specified essential infrastructure service providers by the FSA on November 16, 2023.

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Act Concerning Protection of Depositors from Illegal Withdrawals Made by Counterfeit or Stolen Cards. The Act on Protection,etc. of Depositors and Postal Saving Holders from Unauthorized Automated Withdrawal, etc. Using Counterfeit Cards, etc. and Stolen
Cards, etc. requires financial institutions to establish internal systems to prevent illegal withdrawals of deposits made using counterfeit
or stolen bank cards. The Act also requires a financial institution to compensate depositors for any amount illegally withdrawn using
stolen bank cards except in certain cases, including those where the financial institution can verify that it acted in good faith without
negligence and there was gross negligence on the part of the relevant depositor. In addition, the Act provides that illegal withdrawals
with counterfeit bank cards are invalid unless the financial institution acted in good faith without negligence and there was grossnegligence on the part of the relevant account holder.
Government reforms to restrict maximum interest rates on consumer lending business. In December 2006, the Diet passed
legislation to reform the regulations relating to the consumer lending business, including amendments to the Act Regulating theReceipt of Contributions, Receipt of Deposits and Interest Rates which, effective June 18, 2010, reduced the maximum permissible
interest rate from 29.2% per annum to 20% per annum. The regulatory reforms also included amendments to the Money Lending
Business Act which, effective June 18, 2010, abolished the so-called “gray-zone interest.” Gray-zone interest refers to interest rates
exceeding the limits stipulated by the Interest Rate Restriction Act (between 15% per annum and 20% per annum depending on theamount of principal). Prior to June 18, 2010, gray-zone interests were permitted under certain conditions set forth in the Money
Lending Business Act. As a result of the regulatory reforms, all interest rates are now subject to the lower limits imposed by theInterest Rate Restriction Act, compelling lending institutions, including our consumer finance subsidiaries and equity method
investees, to lower the interest rates they charge borrowers. Furthermore, the new regulations, which became effective on June 18,
2010, require, among other things, consumer finance companies to limit their lending to a single customer to a maximum of one thirdof the customer’s annual income regardless of the customer’s repayment capability.
In addition, as a result of decisions made by the Supreme Court of Japan prior to June 18, 2010, imposing stringent requirements
for charging such gray-zone interest rates, consumer finance companies have been responding to borrowers’ claims for reimbursementof previously collected interest payments in excess of the limits stipulated by the Interest Rate Restriction Act. See “Item 3.D. Key
Information—Risk Factors—Operational Risk—Because of our loans to consumers and our shareholdings in companies engaged inconsumer lending, changes in the business or regulatory environment for consumer finance companies in Japan may further adversely
affect our financial results.”
Act on Special Provisions of the Income Tax Act, the Corporation Tax Act and the Local Tax Act Incidental to Enforcement of
Tax Treaties. Pursuant to the Amendments to the Act on Special Provisions of the Income Tax Act, the Corporation Tax Act and the
Local Tax Act Incidental to Enforcement of Tax Treaties, which became effective in January 2017, financial institutions are required
to collect certain information from their accountholders, including jurisdictions of tax residence, and report such information to the
National Tax Agency in accordance with the Common Reporting Standard as developed by the Organization for Economic Cooperation and Development.
United States
As a result of our operations in the United States, we are subject to extensive U.S. federal and state supervision and regulation.
Overall supervision and regulation. The MUFG Group is subject to supervision, regulation and examination with respect to our
U.S. operations by the Board of Governors of the Federal Reserve System (“FRB”) pursuant to the U.S. Bank Holding Company Act
of 1956, as amended, or the BHCA, and the International Banking Act of 1978, as amended, or the IBA, because we and MUFG Bank
are bank holding companies and foreign banking organizations, as defined pursuant to those statutes. The FRB functions as our“umbrella” supervisor under amendments to the BHCA effected by the Gramm-Leach-Bliley Act of 1999, which among other things:•

authorized qualifying bank holding companies to opt to become “financial holding companies,” and thereby obtain theauthority to engage in an expanded list of activities; and•modified the role of the FRB by redefining the relationships between the FRB and the functional regulators of non-banksubsidiaries of both bank holding companies and financial holding companies.

The BHCA generally prohibits each of a bank holding company and a foreign banking organization that maintains branches oragencies in the United States from, directly or indirectly, acquiring more than 5% of the voting shares of any company engaged in
non-banking activities in the United States unless the bank holding company or foreign banking organization has elected to become afinancial holding company, as discussed above, or the FRB has determined, by order or regulation, that such activities are so closely
related to banking as to be a proper incident thereto and has granted its approval to the bank holding company or foreign banking
organization for such an acquisition. The BHCA also requires a bank holding company or foreign banking organization that maintains
branches or agencies in the United States to obtain the prior approval of an appropriate federal banking authority before acquiring,
directly or indirectly, the ownership of more than 5% of the voting shares or control of any U.S. bank or bank holding company. In
addition, under the BHCA, a U.S. bank or a U.S. branch or agency of a foreign banking organization is prohibited from engaging invarious tying arrangements involving it or its affiliates in connection with any extension of credit, taking of deposits, sale or lease ofany property or provision of most services.

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In October 2008, we, MUFG Bank, Mitsubishi UFJ Trust and Banking and MUFG Americas Holdings initially attained
financial holding company status. In August 2016, Mitsubishi UFJ Trust and Banking relinquished its financial holding company
status. A financial holding company is authorized to engage in an expanded list of activities deemed to be financial in nature orincidental to such financial activity as well as certain specified non-banking activities deemed to be closely related to banking. In orderto maintain the status as a financial holding company, a bank holding company must continue to meet certain standards established by
the FRB. Those standards require that a financial holding company exceed the minimum standards applicable to bank holding
companies that have not elected to become financial holding companies. These higher standards include meeting the “well capitalized”
and “well managed” standards for financial holding companies as defined in regulations of the FRB. Failure to meet these standards,
due to inadequate capital management or shortcomings in operations, results in restrictions on the ability to engage in expanded
activities, including making acquisitions, as a financial holding company. In addition, a financial holding company must ensure that its
U.S. insured banking subsidiaries meet certain minimum standards under the Community Reinvestment Act of 1977.
U.S. branches and agencies of subsidiary Japanese banks. Under the authority of the IBA, our banking subsidiaries, MUFG
Bank and Mitsubishi UFJ Trust and Banking, operate five branches, two agencies, 15 representative offices and one loan production
office in the United States. MUFG Bank operates branches in Los Angeles, California; Chicago, Illinois; and two branches in New
York, New York; agencies in Houston and Dallas, Texas; and representative offices in Washington, D.C.; Tempe, Arizona; Menlo
Park, Monterey Park, Redwood City, San Diego, Century City, and San Francisco, California; Danbury, Connecticut; Atlanta,
Georgia; Florence, Kentucky; Boston, Massachusetts; Jersey City, New Jersey; Charlotte, North Carolina; Irving, Texas; and Seattle,
Washington, and an OCC-licensed loan production office in Tampa, Florida. Mitsubishi UFJ Trust and Banking operates a branch in
New York, New York.
The IBA provides, among other things, that the FRB may examine U.S. branches and agencies of foreign banks, and eachbranch and agency shall also be subject to on-site examination by the appropriate federal or state bank licensing supervisor as
frequently as would a U.S. bank. The IBA also provides that if the FRB determines that a foreign bank is not subject to comprehensive
supervision or regulation on a consolidated basis by the appropriate authorities in its home country, or if there is reasonable cause tobelieve that the foreign bank or its affiliates have committed a violation of law or engaged in an unsafe or unsound banking practice inthe United States, the FRB may order the foreign bank to terminate activities conducted at a branch or agency in the United States.
U.S. branches and agencies of foreign banks must be licensed, and are also supervised and regulated, by a state or by the Officeof the Comptroller of the Currency (the “OCC”), the federal regulator of U.S. national banks. The OCC is an independent bureau of
the U.S. Department of the Treasury. Effective November 7, 2017, all of the branches and agencies of MUFG Bank and Mitsubishi
UFJ Trust and Banking in the United States converted from state-licensed branches and agencies to federally-licensed branches andagencies supervised and regulated by the OCC.
When opening a federal branch or agency, a foreign bank must establish and maintain a deposit account with an FRB memberbank at least (1) in the amount of capital that would be required of a national bank being organized at the same location or (2) equal to
five percent of the total liabilities of the federal branch or agency, including acceptances but excluding (i) accrued expenses and (ii)amounts due and other liabilities to offices, branches, and subsidiaries of the foreign bank, whichever is greater. Federally-licensed
branches and agencies must also submit written reports concerning their assets and liabilities and other matters, to the extent requiredby the OCC or the FRB.
U.S. banking subsidiaries. We previously owned and controlled one U.S. national bank, MUFG Union Bank, N.A. (known prior
to July 1, 2014, as Union Bank, N.A.), through MUFG Bank and its U.S. subsidiary, MUFG Americas Holdings, a bank holding
company. Effective December 1, 2022, MUFG Union Bank was sold to U.S. Bancorp, and MUFG Americas Holdings subsequently
ceased to be a bank holding company. MUFG Americas Holdings also ceased to be a U.S. Intermediate Holding Company (“IHC”) as
further described below.
Bank capital requirements and capital distributions. MUFG Bank and Mitsubishi UFJ Trust and Banking, as foreign banking
organizations that have U.S. branches and agencies and are controlled by us, are subject to the FRB’s requirements that they be “wellcapitalized” under Japanese risk-based capital standards. MUFG Bank and Mitsubishi UFJ Trust and Banking are all “wellcapitalized,” and otherwise comply with, all applicable U.S. regulatory capital requirements.
Other regulated U.S. subsidiaries. Our non-bank subsidiaries that engage in securities-related activities in the United States are
regulated by appropriate functional regulators, such as the SEC, any self-regulatory organizations of which they are members, and theappropriate state regulatory agencies. These non-bank subsidiaries are required to meet separate minimum capital standards as
imposed by those regulatory authorities.
Anti-Money Laundering Initiatives, the Bank Secrecy Act, the USA PATRIOT Act. A major focus of U.S. governmental policy
relating to financial institutions in recent years has been, and continues to be, aimed at preventing money laundering and terrorist
financing. The USA PATRIOT Act of 2001, as incorporated into the Bank Secrecy Act, substantially broadened the scope of U.S.
anti-money laundering laws and regulations by imposing significant new compliance and due diligence obligations, creating newcrimes and penalties, and expanding the extra-territorial jurisdiction of the United States. The U.S. Department of the Treasury has
issued a number of regulations that impose obligations on financial institutions to maintain appropriate policies, procedures, andcontrols to detect, prevent and report potential money laundering and terrorist financing, including the collection of beneficial
ownership information. The bank regulatory agencies carefully scrutinize the adequacy of an institution’s compliance with theseregulations and, as a result, there have been an increased number of regulatory enforcement actions. A financial institution’s failure to43

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maintain and implement adequate policies, procedures, and controls to prevent and detect money laundering and terrorist financing
could have serious legal and reputational consequences for the institution, including the incurrence of expenses to enhance the relevant
programs, the imposition of limitations on the scope of its operations and the imposition of fines and other monetary penalties.
Foreign Corrupt Practices Act. In recent years, U.S. regulatory and enforcement agencies including the SEC and the U.S.
Department of Justice have significantly increased their enforcement efforts of the Foreign Corrupt Practices Act, or the FCPA. The
FCPA prohibits U.S. securities issuers, U.S. domestic entities, and parties doing substantial business within the United States(including their shareholders, directors, agents, officers, and employees) from giving, offering, or promising anything of value toforeign public officials in order to obtain or retain any business advantage. The FCPA also requires U.S. securities issuers to maintainadequate books and records in such a way that they fairly reflect all transactions and dispositions of assets. Enforcement efforts havetargeted a wide range of U.S. and foreign-based entities and have been based on a broad variety of alleged fact patterns, and in a
number of cases have resulted in the imposition of substantial criminal and civil penalties or in agreed payments in settlement ofalleged violations. Failure to maintain adequate anti-bribery policies, procedures, internal controls, and books and records globally
could have serious legal and reputational consequences for the institution, including the incurrence of expenses to enhance the relevant
programs, as well as the imposition of civil and criminal penalties.
Regulatory Reform Legislation —2010 Foundational Reform of the U.S. Financial System. In response to the global financial
crisis of 2007-2008 and the perception that lax supervision of the financial industry in the United States may have been a contributing
cause to the crisis, legislation designed to reform the system for supervision and regulation of financial firms doing business in the
United States, the so-called Dodd-Frank Act, was signed into law on July 21, 2010. The Dodd-Frank Act is complex and extensive inits coverage and contains a wide range of provisions that affect financial institutions operating in the United States, including our U.S.
operations. Included among these provisions are sweeping reforms designed to reduce systemic risk presented by largest financial
firms, promote enhanced supervision, regulation, and prudential standards for financial firms, establish comprehensive supervision offinancial markets, impose new limitations on permissible financial institution activities and investments, expand regulation of thederivatives markets, protect consumers and investors from financial abuse, and provide the government with the tools needed to
manage a financial crisis. Key provisions that impact our operations are summarized below.
Among the components of the Dodd-Frank Act that have impacted or may impact our operations are the provisions relating toenhanced prudential standards ("EPS"), including capital, liquidity and structural requirements, the “Volcker Rule,” derivatives
regulation, credit reporting, resolution plans, and incentive-based compensation. Based on information currently available to us, otherthan the Volcker Rule and derivatives regulations as discussed below, the impact of these components is expected to be mainly limited
to our U.S. operations and not to be material to us on a consolidated basis. We monitor developments that relate to the Dodd-FrankAct and the potential impact of its implementing regulations on our activities inside and outside of the United States.
With respect to the Dodd-Frank Act provisions related to EPS, in February 2014 the FRB issued final rules that established EPS("EPS Rules") for the U.S. operations of foreign banking organizations such as MUFG. These rules required us to organize by July 1,2016 all of our U.S. bank and non-bank subsidiaries, with certain limited exceptions, under an IHC subject to U.S. capitalrequirements and other EPS comparable to those applicable to top-tier U.S. bank holding companies of the same size. Under theserules, we were required to change the legal entity structure of our U.S. operations, including the manner in which we oversee andmanage those operations, and could be required to inject additional capital into our U.S. operations.
As of July 1, 2016, as required under EPS, we designated MUFG Americas Holdings, which was our bank holding company, tobe also our IHC. We were required to maintain an IHC for as long as the average sum of the consolidated assets of MUFG Americas
Holdings, our top-tier U.S. subsidiary, for a period of four consecutive calendar quarters equaled $50 billion or more. After the sale of
MUFG Union Bank, MUFG Americas Holdings’ consolidated assets remained under $50 billion, and MUFG Americas Holdings
ceased being an IHC on November 21, 2023.
As an IHC, MUFG Americas Holdings was previously subject to various U.S. stand-alone EPS requirements, including: riskbased and leverage capital requirements, capital planning and stress testing, liquidity requirements, including liquidity stress testing,enhanced risk management and leverage requirements.
Under the EPS Rules, as amended in 2019, our combined U.S. operations, or CUSO, including MUFG Bank’s branches,
agencies, and other offices, Mitsubishi UFJ Trust and Banking’s New York Branch, and all of MUFG’s U.S. subsidiaries, are subject
to certain requirements, including liquidity, risk management, regulatory reporting, and single counterparty credit limits, as further
noted below.
On October 10, 2019, the FRB issued (1) by itself, a final rule that establishes a tailored framework for application of EPS to
U.S. and foreign banking organizations (the “FRB Tailoring Rule”) and (2) jointly with the OCC and the Federal Deposit Insurance
Corporation (“FDIC”), a second final rule that modifies the application of capital and liquidity requirements to the operations of U.S.
banking organizations and the U.S. operations of foreign banking organizations based on the framework established by the FRB’s
Tailoring Rule (together, the rules are hereinafter referred to as the “Tailoring Rules”). These Tailoring Rules apply the same
framework to the U.S. and foreign bank holding companies but use a differing calibration for foreign bank holding companies. The
Tailoring Rules became effective on December 31, 2019.
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The FRB’s Tailoring Rule established a framework to tailor the applicability of certain EPS requirements, including liquidity
stress testing and management, capital planning and stress testing, single counterparty credit limits requirements, and related
regulatory reporting by categorizing all foreign banking organizations with $100 billion or more in combined U.S. assets into one offour categories; other U.S. and non-U.S. firms with total assets under $100 and above $50 billion were subject to a significantly
reduced level of EPS requirements. This categorization framework was based on the calculation of aggregate U.S. assets and fourother risk-based indicators, including weighted short-term wholesale funding, cross-jurisdictional activity, nonbank assets, and offbalance sheet exposure. The joint agency final rule, similarly categorized foreign banking organizations and tailored the application of
the agencies’ regulatory capital and standardized liquidity requirements on that basis.
Under the framework of the FRB Tailoring Rule, MUFG’s U.S. operations were previously subject to a split-category treatment:(i) our CUSO has been classified as Category II, subject to the most stringent requirements other than those applicable to U.S. G-SIBs
and (ii) MUFG Americas Holdings, while it maintained the status of U.S. IHC, was classified as a Category IV company, aclassification that provided certain capital and liquidity relief from the prior original EPS requirements by taking into account the sizeand other risk-based characteristics of MUFG Americas Holdings’ subsidiary operations. After exiting IHC status, MUFG Americas
Holdings ceased to be subject to the categorization framework and EPS requirements on a stand-alone basis. As a Category Ⅱ entity,
our CUSO is subject to the most stringent forms of liquidity stress tests, and liquidity risk management.
The FRB’s Tailoring Rule did not alter the risk management requirements previously applicable to MUFG’s CUSO under EPS.
Thus, our CUSO continues to be subject to the oversight of the U.S. Risk Committee, the composition and role of which are further
discussed in “Item 6.C. Directors, Senior Management and Employees—Board Practices.” Our U.S. Chief Risk Officer, as also
mandated under EPS, is responsible for implementing and maintaining the CUSO’s risk management framework and practices,
including its liquidity management standards. The U.S. Chief Risk Officer is employed by, and located in, the MUFG Bank, NewYork Branch, and reports directly to the U.S. Risk Committee.
The Volcker Rule was issued in final form by the FRB originally in December 2013, and substantive portions were subsequently
amended in November 2019. The Volcker Rule restricts the ability of banking entities to conduct certain proprietary trading activities,
which means trading in securities and financial instruments for their own account, subject to certain exceptions, including marketmaking, hedging, and underwriting if such activities are conducted within a rigorous compliance framework. The Volcker Rule also
restricts banking entities from engaging in certain activities regarding hedge funds and private equity funds known as covered funds.
The Volcker Rule excludes restrictions on such activities if they are conducted solely outside of the United States. The Volcker Rulerequires banking entities to implement a number of policies, procedures, and quantitative metrics reporting that are reasonably
designed to ensure and monitor compliance with the restrictions under the Rule. Our proprietary trading and covered funds activities
are generally executed outside of the United States, but certain activities are conducted within the United States, and, therefore, wehave undertaken steps that we believe are appropriate to bring our activities and investments into compliance with the Rule. Given its
complexity, the Rule may be subject to further rule-making and regulatory interpretation in the future.
U.S. regulators continue to issue final regulations and regulatory determinations governing swaps and derivatives markets ascontemplated by the Dodd-Frank Act. To date, MUFG Bank and MUFG Securities EMEA plc have registered as swap dealers with
the U.S. Commodity Futures Trading Commission, or CFTC. In addition, MUFG Securities EMEA plc registered with the SEC as asecurities-based swap dealer during the fiscal year ended March 31, 2022. Depending on the finalization of regulations and regulatory
determinations governing swaps and derivatives markets under the Dodd-Frank Act, as well as the activities of our other subsidiaries
located inside and outside of the United States, our other subsidiaries may have to register as swap dealers with, or be subject to theregulations of, the CFTC and/or SEC. Regulation of swap dealers by the CFTC and security-based swap dealers by the SEC imposes
numerous corporate governance, business conduct, capital, margin, reporting, clearing, execution, and other regulatory requirementson our operations, which may adversely impact our derivatives businesses and make us less competitive than those competitors thatare not subject to the same regulations. On July 23, 2020, the CFTC voted to approve final rules that modify and codify the crossborder application of certain of its Title VII swap rules to both U.S. and non-U.S. registered swap dealers. Similarly, the SEC has
adopted a package of rule amendments, guidance, and a related order designed to expand and clarify the framework for regulating
cross-border security-based swaps, including single-name credit default swaps. We have implemented measures designed to comply
with the relevant rules and regulations by the prescribed compliance dates while continuing to consider the effects of other proposed
rules and final regulatory changes.
On June 14, 2018, the FRB approved a final rule regarding single counterparty credit limits, or SCCL, for large banking
organizations. The SCCL final rule was considered the last major piece of regulatory action needed to implement Section 165(e) of the
Dodd-Frank Act. Section 165(e) was a response to the concern that failure or financial distress of one large, interconnected financial
institution could cascade through the U.S. financial system and impair the financial condition of that firm’s counterparties, including
other large, interconnected firms. Section 165(e) generally, and the SCCL final rule specifically, seek to mitigate this risk by limiting
the aggregate exposure among such financial institutions and their counterparties.
The final rule establishes separate SCCLs, one applicable to our CUSO and another to MUFG Americas Holdings while it was
designated MUFG’s IHC. In July 2021, MUFG CUSO began complying with its CUSO-level requirements by certifying as to homecountry compliance with Basel Committee standards in lieu of complying with the final U.S. SCCL rule.
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Based on the categorization of MUFG Americas Holdings as a Category IV entity under the final rules tailoring prudential
standards for large banking organization (“Tailoring Final Rules”), SCCL ceased applying to MUFG Americas Holdings.
On October 10, 2019, the FRB issued jointly with the FDIC a final rule amending their prior joint rule, which implemented theresolution planning requirements of Section 165(d) of the Dodd-Frank Act. Resolution plans, also known as living wills, describe afirm’s strategy for orderly resolution under appropriate insolvency regimes. Such resolution would be caused by a material financial
distress or failure of the firm. As informed by the framework set forth under the FRB’s tailoring rule, the resolution plan final rule
tailors the resolution planning requirements for firms that do not pose the same systemic risk as the largest institutions. The
classification of MUFG’s CUSO as a triennial full filer applies to large foreign and U.S. banks classified within Category II and
Category III of the FRB’s tailoring rule, and is subject to alternating submissions of full and targeted resolution plans. MUFG
submitted on December 17, 2021, its Targeted 165(d) Resolution Plan together with a required Targeted Information Request imposedby the agencies, which focused on the filers’ actions in response to COVID-19.
On August 29, 2023, the FRB and FDIC issued proposed guidance to enhance resolution planning at large U.S. and non-U.S.
banking organizations with more than $250 billion in total assets, which are classified as triennial full filers. The full resolution planrequired of triennial filers was scheduled to be filed on July 1, 2024, and this submission would have been expected to reflect the final
guidance. On January 16, 2024, the agencies provided an extension of the submission date of the full resolution plans to March 31,
2025, taking into consideration that the agencies anticipated issuing final guidance by March 2024. The proposed guidance has notbeen finalized, and additional extensions of the submission date are currently expected.
On January 30, 2020, the FRB adopted a final rule revising the “controlling influence” prong of its “control” rules under the
Bank Holding Company Act of 1956, as amended. The final rule largely adopts the proposed rule issued by the FRB in April 2019,
reaffirms the FRB's conceptual framework for analyzing “controlling influence,” and rejects a number of banking industry
recommendations for liberalization of the proposal, and of elements of the prior control regulatory framework, including certain
interpretation. The issue of “control” is a central concept under the Bank Holding Company Act. Among other things, control
determines whether an investor in a banking organization is subject to the requirements and restrictions of the Bank Holding Company
Act, whether a bank holding company’s investment in a company is permissible and/or subjects the investee company to therequirements and restrictions of the Bank Holding Company Act, and whether an investor in a banking organization is subject to theVolcker Rule. As a result, a determination of whether or not an investment constitutes “control” of, or even a non-passive holding in,
an investee is often determinative of whether an investment can be made (or, at least, must be restructured to avoid control or reduced
to a passive holding). The final rule was effective as of September 30, 2020, and applies to MUFG’s investments globally.
Foreign Account Tax Compliance Act. The Hiring Incentives to Restore Employment Act was enacted in March 2010 andcontains provisions commonly referred to as the Foreign Account Tax Compliance Act, or FATCA. The U.S. Treasury, acting throughthe Internal Revenue Service, or the IRS, issued final FATCA regulations in January 2013, which have been updated along withrelated guidance issued from February 2014 through December 2019. FATCA created a new reporting and withholding regime for
U.S. and foreign financial institutions, or FFIs, and certain non-financial foreign entities, or NFFEs.
In addition, the FATCA framework has been augmented with the introduction of Intergovernmental Agreements between the
U.S. Treasury and various foreign governments, which are intended to support intergovernmental cooperation to facilitate theimplementation of FATCA. The United States has entered into various Intergovernmental Agreements with non-U.S. jurisdictions
including Japan, some of which became effective as of July 1, 2014.
Consistent with FATCA, we have assessed and determined if our group entities are U.S. withholding agents, FFIs, or NFFEs.
Each identified U.S. withholding agent and FFI has also evaluated pre-existing and new entity accounts to the extent required todetermine their respective FATCA classifications. We have continuously developed internal procedures and processes that we believecomply with the regulatory requirements under FATCA.
However, FATCA compliance has required us to develop extensive systems capabilities and internal processes to identify andreport U.S. account holders who are subject to FATCA requirements, which has been a complex and costly process requiring
significant internal resources. If our procedures and processes are determined not to comply with the requirements of FATCA, we
could potentially be subject to serious legal and reputational consequences, including the imposition of withholding taxes on certain
amounts payable to us from U.S. sources, and could be required to expend additional resources to enhance our systems, proceduresand processes and take other measures in response to such consequences.
Capital Adequacy. Once MUFG Americas Holdings ceased to be an IHC, U.S. capital adequacy as applicable to MUFG
Americas Holdings under FRB Regulation YY is measured at the MUFG parent company level. MUFG Americas Holdings complies
with capital adequacy standards applicable on a consolidated group basis under rules established by MUFG’s home country
supervisor.
Total loss absorbing capacity. As an IHC, MUFG Americas Holdings was previously subject to the FRB’s long-term debt and
TLAC requirements applicable to U.S. globally systemically important bank holding companies and U.S. IHCs of non-U.S. globally
systemically important banks. MUFG Americas Holdings is no longer subject to these requirements after having ceased to be an IHC.

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Disclosure pursuant to Section 13(r) of the US Securities Exchange Act of 1934
We are disclosing the following information pursuant to Section 13(r) of the Securities Exchange Act of 1934 (Exchange Act),
which requires an issuer to disclose whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings
relating to Iran or with natural persons or entities designated by the U.S. government under specified Executive Orders. The scope ofactivities that must be reported includes activities not prohibited by U.S. law and conducted outside the United States in compliancewith applicable local law.
During the fiscal year ended March 31, 2024, our non-U.S. subsidiary, MUFG Bank, engaged in certain limited businessactivities with entities in, or affiliated with, Iran, including counterparties owned or controlled by the Iranian government. Specifically,
our non-U.S. banking subsidiary, MUFG Bank, has previously issued guarantees outstanding mainly in connection with priorpetroleum-related transactions with Iran by its customers that were permissible under applicable sanctions regulations. Thesetransactions did not involve U.S. dollars or clearing services of U.S. banks for the settlement of payments. For the fiscal year ended
March 31, 2024, the aggregate fee income relating to these transactions was less than ¥5 million, representing less than 0.0005 percent
of our total fee income. In addition, some Iranian financial institutions and other entities in, or affiliated with, Iran maintained nonU.S. dollar correspondent accounts and other similar settlement accounts with MUFG Bank outside the United States. In addition tosuch accounts, MUFG Bank received deposits in Japan from, and provided settlement services in Japan to, fewer than 10 Iranian
government-related entities, and MUFG Bank and a non-U.S. affiliate of MUFG provided credit and/or settlement services to fewer
than 100 Iranian government-related individuals including Iranian diplomats. MUFG Bank also maintains settlement accounts outside
the United States for certain other entities specified in Executive Order 13224 or 13382, which settlement accounts were frozen inaccordance with applicable laws and regulations. For the fiscal year ended March 31, 2024, the average aggregate balance of deposits
held in these accounts represented less than 0.05 percent of the average balance of our total deposits. The interest and fee income fromthe transactions attributable to these account holders was less than ¥50 million, representing less than 0.001 percent of our totalinterest and fee income.
We recognize that following the withdrawal in May 2018 by the United States from the Joint Comprehensive Plan of Action, theUnited States has imposed secondary sanctions against non-U.S. persons who engage in or facilitate a broad range of transactions andactivities involving Iran. We have taken the recent sanctions related developments into account and will continue to monitor
transactions relating to Iran in order to comply with applicable U.S. and Japanese regulations as well as U.S., Japanese and otherinternational sanctions.

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C.

Organizational StructureNote:(1) On April 1, 2024, Mitsubishi UFJ Trust and Banking Corporation transferred 100% of the shares in Mitsubishi UFJ Asset Management Co., Ltd. to MUFG as adividend. As a result of the transfer, Mitsubishi UFJ Asset Management became a directly and wholly owned subsidiary of MUFG.

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Set forth below is a list of our principal consolidated subsidiaries as of March 31, 2024
Proportion of
Ownership
Interest(%)

Proportion of
VotingInterest
(%)

Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan
Japan

100.00%77.83%
100.00%100.00%100.00%46.50%
100.00%100.00%100.00%100.00%100.00%60.00%

100.00%68.86%
100.00%100.00%100.00%46.50%
100.00%100.00%100.00%100.00%100.00%60.00%

Japan
Japan
Japan
Japan
USA
ThailandIndonesia
Indonesia
UK
Luxembourg
Luxembourg
UK
BermudaAustralia
UK
UK
China
Canada51.00%
100.00%94.19%
100.00%100.00%76.88%
92.47%
80.61%
51.00%
100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%51.00%
100.00%94.19%
100.00%100.00%76.88%
92.47%
80.61%
51.00%
100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%100.00%Country ofIncorporationName

MUFG Bank, Ltd.
Kanmu, Inc.
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Real Estate Services Co., Ltd.
Japan Shareholder Services Ltd.
The Master Trust Bank of Japan, Ltd.
Mitsubishi UFJ Real Estate Asset Management Co., Ltd.
Mitsubishi UFJ Asset Management Co., Ltd.
Mitsubishi UFJ Alternative Investments Co., Ltd.
Human Resources Governance Leaders Co., Ltd.
Mitsubishi UFJ Securities Holdings Co., Ltd.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
au Kabucom Securities Co., Ltd.
Mitsubishi UFJ NICOS Co., Ltd.
Japan Digital Design, Inc
MUFG Innovation Partners Co., Ltd.
MUFG Americas Holdings Corporation
Bank of Ayudhya Public Company Limited
PT Bank Danamon Indonesia, Tbk.
PT Mandala Multifinance Tbk
Mitsubishi UFJ Baillie Gifford Asset Management Limited
Mitsubishi UFJ Investor Services & Banking (Luxembourg) S.A.
MUFG Lux Management Company S.A.
Mitsubishi UFJ Asset Management (UK) Ltd.
MUFG Investor Services Holdings Limited
First Sentier Investors Holdings Pty Ltd
Mitsubishi UFJ Trust International Limited
MUFG Securities EMEA plc
MUFG Securities Asia Limited
MUFG Securities (Canada), Ltd.

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Table of Contents
D.

Property, Plant and Equipment
As of March 31,
2023

2024
(in millions)

Land
Buildings
Equipment and furniture
Leasehold improvements
Construction in progress
Total
Less accumulated depreciation
Premises and equipment—net¥¥

393,932
800,821509,828
255,71234,6791,994,972
1,134,394
860,578¥¥

389,349
798,542556,956
267,614
29,5952,042,056
1,169,029
873,027

Our registered address is 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8330, Japan. As of March 31, 2024, we and our
subsidiaries conducted our operations either in premises we owned or in properties we leased.
We decided to build a new MUFG headquarters building at the location where the current MUFG and MUFG Bank head officebuilding stands. In conjunction with the construction of the new building, the head offices for MUFG and MUFG Bank have been
temporarily relocated from 7-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo, Japan. Details of the construction project, including theconstruction period and the total expenditure, are yet to be determined. For the fiscal year ended March 31, 2024, ¥2,038 million wasinvested in the project.
The following table presents the book values of our material offices and other properties as of March 31, 2024:
Book Value(in millions)

Owned land
Owned buildings¥¥

389,349
241,884

The buildings and land we own are primarily used by us and our subsidiaries as offices and branches. Most of the buildings andland we own are free from material encumbrances.
During the fiscal year ended March 31, 2024, we invested approximately ¥113,716 million in premises and equipment, primarily
for office renovations and the office relocation in connection with the MUFG headquarters building construction project including theinvestment in the construction project described above.
Item 4A.

Unresolved Staff Comments.

None.
Item 5.

Operating and Financial Review and Prospects.

The following discussion and analysis should be read in conjunction with “Selected Statistical Data” and our consolidated
financial statements and related notes.

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Table of Contents
Page

Summary of Financial Data
Business Environment
Recent Developments

52
54
56

A.

Operating Results
Results of Operations
Business Segment Analysis
Geographic Segment Analysis
Effect of Change in Exchange Rates on Foreign Currency Translation

59
59
71
75
76

B.

Liquidity and Capital Resources
Financial Condition
Capital Adequacy
Non-exchange Traded Contracts Accounted for at Fair Value

77
77
88
92

C.

Research and Development, Patents and Licenses, etc.

92

D.

Trend Information

92

E.

Critical Accounting Estimates

92

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Restatement of Previously Filed Consolidated Financial Statements for the Fiscal Year Ended March 31, 2023
The following discussion and analysis reflect the restatement of our consolidated financial statements for the fiscal year ended
March 31, 2023. The March 31, 2023 column headings in the tabular presentation of financial information containing restatedamounts are labeled as "Restated” in this Item 5. For additional information and a detailed discussion of the restatement, see“Explanatory Note” above and Note 1A to our consolidated financial statements. See also “Item 15. Controls and Procedures” for a
discussion of the material weakness identified with respect to our internal controls over financial reporting and the ineffectiveness of
our internal control over financial reporting and our disclosure controls and procedures as of March 31, 2024 and 2023.
Summary of Financial Data
The selected statement of operations data and selected balance sheet data set forth below have been derived from ourconsolidated financial statements.
Except for risk-adjusted capital ratios, which are calculated in accordance with Japanese banking regulations based on
information derived from our consolidated financial statements prepared in accordance with accounting principles generally acceptedin Japan, or Japanese GAAP, the summary of financial data set forth below are derived from our consolidated financial statements
prepared in accordance with U.S. GAAP.
You should read the summary of financial data set forth below in conjunction with the remainder of this Item 5, “Selected
Statistical Data” and our consolidated financial statements and related notes and other financial data included elsewhere in this Annual
Report. These data are qualified in their entirety by reference to all of that information.

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2023(Restated)

2022

2024

(in millions, except per share data and number of shares)
Statement of operations data:
Interest income¥

2,530,938¥

4,611,410¥

7,107,074

Interest expense

560,357

2,221,996

4,513,124

Net interest income

1,970,581

2,389,414

2,593,950

277,995

8,148

237,990

Net interest income after provision for credit losses

1,692,586

2,381,266

2,355,960

Non-interest income

1,394,789

1,486,910

2,867,583

Non-interest expense

3,146,102

3,419,954

3,340,949

Income (loss) before income tax expense (benefit)(58,727)

448,222

1,882,594

Income tax expense (benefit)(14,511)

41,174

501,567

Net income (loss) before attribution of noncontrolling interests(44,216)

407,048

1,381,027

Net income attributable to noncontrolling interests

39,10430,41352,906

Provision for credit losses

Net income (loss) attributable to Mitsubishi UFJ Financial Group¥(83,320) ¥376,635¥

1,328,121

Earnings (loss) applicable to common shareholders of Mitsubishi UFJ Financial Group¥(83,320) ¥376,635¥

1,328,121¥(6.51) ¥30.58¥

110.87

Amounts per share:
Basic earnings (loss) per common share—Earnings (loss) applicable to commonshareholders of Mitsubishi UFJ Financial Group
Diluted earnings (loss) per common share—Earnings (loss) applicable to commonshareholders of Mitsubishi UFJ Financial Group

(6.93)

30.26

110.58

Number of shares used to calculate basic earnings per common share (in thousands)

12,798,060

12,317,723

11,978,725

Number of shares used to calculate diluted earnings per common share (in thousands)(1)12,798,060

12,318,855

11,980,601

Cash dividends per share paid during the fiscal year:—Common stock

¥

26.00

¥

30.50

¥

36.50

$

0.23

$

0.23

$

0.25

2022

2023

2024

(in millions)
Balance sheet data:
Total assets¥

367,650,018¥

381,735,733¥

397,436,461

Loans, net of allowance for credit losses

111,678,692

118,682,562

126,570,274

Total liabilities

351,353,496

365,269,566

378,959,248

Deposits

224,589,943

235,276,781

246,417,384

Long-term debt

34,696,599

39,071,755

39,922,322

Total equity

16,296,522

16,466,167

18,477,213

Capital stock

2,090,270

2,090,270

2,090,270

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Table of Contents
2023(Restated)

2022

2024

(in millions, except percentages)
Other financial data:
Average balances:
Interest-earning assets¥

276,179,049¥

291,018,346¥

293,458,342

Interest-bearing liabilities

279,759,500

294,877,689

300,412,643

Total assets

370,588,337

396,151,869

402,894,818

Total equity

16,269,224

16,300,493

19,306,449

Return on equity and assets:
Earnings (loss) applicable to common shareholders as a percentage of average total assets(0.02%)

0.10 %

Earnings (loss) applicable to common shareholders as a percentage of average total equity(0.51%)

2.31 %

6.88%

99.74 %

32.92%

Dividends per common share as a percentage of basic earnings per common share

—

(3)

0.33%

Average total equity as a percentage of average
total assets

4.39%

4.11%

4.79%

Net interest income as a percentage of average total interest-earning assets

0.71%

0.82%

0.88%

Credit quality data:
Allowance for credit losses¥

Allowance for credit losses as a percentage of loans

1,470,701

¥

1.30%

Net loan charge-offs¥

179,297

1,272,898

¥

1.06%
¥

259,608

1,366,221
1.07%¥

217,304

Net loan charge-offs as a percentage of average loans

0.16%

0.21%

Average interest rate spread

0.72%

0.83%

0.18%
0.92%

Risk-adjusted capital ratio calculated under Japanese GAAP(2)14.29%

13.91%

17.82%

Notes:(1) Includes the common shares held by the trusts under the Board Incentive Plan. See “Item 6.B. Directors, Senior Management and Employees—Compensation.”(2) Risk-adjusted capital ratios have been calculated in accordance with Japanese banking regulations as applicable on the relevant calculation date based on
information derived from our consolidated financial statements prepared in accordance with Japanese GAAP. For a description of the applicable capital ratio
calculation and other requirements applicable, see “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Capital
adequacy” and “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Capital Adequacy.”(3) Dividends per common share have not been presented because such information is not meaningful.

Business Environment
Through our subsidiaries and affiliated companies, we engage in a broad range of financial businesses and services, includingcommercial banking, investment banking, trust assets and asset management services, securities businesses and credit card businesses,
and provide related services to individuals primarily in Japan, Thailand and Indonesia and to corporate customers around the world.
Our results of operations and financial condition are exposed to changes in various external economic factors, including:•

general economic conditions,•interest rates,•

foreign currency exchange rates, and•stock prices.

General Economic Conditions
The global economy remained vulnerable to external events during the fiscal year ended March 31, 2024. The global economy
faced a sharp rise in energy prices triggered by the conflict in Ukraine and the Middle East. This led to a rise in inflation globally,followed by considerable monetary tightening in major markets, which put downward pressure on economies during the fiscal year
ended March 31, 2024. Nevertheless, economic activities continued to normalize as the effects of COVID-19 on people's daily lives
lessened. Uncertainty remains, however, in the global and regional economic environment. For example, the full effect of monetary
policy tightening is still yet to pass through to the real economy, with possible vulnerabilities in the commercial real estate sector andin the broader credit market. Meanwhile, global trade flows are still relatively stagnant, while the trade conflicts between the UnitedStates and Europe, on the one hand, and China, on the other, continue to pose risks. The situations in Ukraine and the Middle East also
continue to contribute to heightened geopolitical risks. In addition, the central banks in several developed economies have recently
changed course, or are expected soon to change course, on their monetary policies, with the European Central Bank, for example,
having started to reduce its policy rate. The impact of such and other monetary policy changes remain to be seen and may lead toincreased volatility in global and regional economies and markets.

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Japan’s economy generally followed the global economic trends, showing a mixture of negative and positive trends, during the
fiscal year ended March 31, 2024. Japan’s real gross domestic product, or GDP, grew by 1.0% for the quarter ended June 30, 2023,
contracted by 0.9% for the quarter ended September 30, 2023, grew by 0.1% for the quarter ended December 31, 2023, and contracted
by 0.5% for the quarter ended March 31, 2024 on a quarter-on-quarter basis. These fluctuations reflected both positive factors, such as
wage increases, and negative factors, such as inflationary pressures. On a year-on-year basis, Japan’s real GDP grew by 2.2% for thequarter ended June 30, 2023, 1.5% for the quarter ended September 30, 2023, and 1.1% for the quarter ended December 31, 2023,
while contracting by 0.1% for the quarter ended March 31, 2024. Japan’s Consumer Price Index, or CPI, fluctuated between 0% and0.7% on a month-on-month basis and between 2.2% and 3.5% on a year-over-year basis during the fiscal year ended March 31, 2024.
The unemployment rate in Japan remained low with a slight decrease from 2.7% in March 2023 to 2.6% in March 2024. According to
Teikoku Databank, a Japanese research institution, the number of companies that filed for legal bankruptcy in Japan between April
2023 and March 2024 was 8,881, a 30.6% increase from the same period of the previous year. The total liabilities of companies that
filed for legal bankruptcy during the fiscal year ended March 31, 2024 were ¥2,434 billion, an increase of 4.1% from the previous
fiscal year. The Japanese economy remains subject to instabilities resulting from geopolitical developments, increasing public debt,
intensifying trade conflicts and global competition, declining domestic population, inflationary trends, downward pressure on private
consumption, changes in the Bank of Japan's monetary policy, and various other factors that could adversely affect economic
conditions in Japan.
The U.S. economy generally underwent upward trends during the fiscal year ended March 31, 2024, with U.S. real GDP
growing by 2.1% for the quarter ended June 30, 2023, 4.9% for the quarter ended September 30, 2023, 3.4% for the quarter ended
December 31, 2023, and 1.4% for the quarter ended March 31, 2024, on a quarter-on-quarter annualized basis. On a year-on-yearbasis, U.S. real GDP grew by 2.4% for the quarter ended June 30, 2023, 2.9% for the quarter ended September 30, 2023, 3.1% for thequarter ended December 31, 2023, and 3.0% for the quarter ended March 31, 2024. The unemployment rate increased to 3.8% in
March 2024 from 3.5% in March 2023. The long-term prospects of the U.S. economy remain uncertain in light of the impact ofinflationary trends, geopolitical developments, changes in the political environment, instabilities in the real estate and banking sectors,
the government’s economic, monetary, trade and foreign relations policies, and various other factors.
The Eurozone economy also grew modestly during the fiscal year ended March 31, 2024, with Eurozone real GDP growing by
0.1% for the quarter ended June 30, 2023, was unchanged at 0.0% for the quarter ended September 30, 2023, contracting by 0.1% for
the quarter ended December 31, 2023, and growing by 0.3% for the quarter ended March 31, 2024, on a quarter-on-quarter basis. On a
year-over-year basis, Eurozone real GDP grew by 0.6% for the quarter ended June 30, 2023, 0.2% for the quarter ended September 30,
2023, 0.2% for the quarter ended December 31, 2023, and 0.4% for the quarter ended March 31, 2024. The unemployment rate in theEurozone remained unchanged at 6.5% in March 2024 from March 2023. The Eurozone economy remains subject to various
uncertainties, including instabilities resulting from inflationary trends, geopolitical developments, concerns over the financial systemand other factors.
In Asia excluding Japan, economic conditions in ASEAN (Association of Southeast Asian Nations) and NIEs (Newly
Industrializing Economies) generally improved and, overall, the economic growth continued during the fiscal year ended March 31,
2024. Meanwhile, in the Chinese economy, there remain concerns surrounding the real estate sector. The economic conditions of theseregions remain subject to various uncertainties, including the fluctuations in the global and local economies as well as geopoliticaldevelopments.
Interest Rates
Interest rates remained at historical low levels in Japan under the Bank of Japan’s monetary policy. Until recently, the Bank of Japan
maintained its quantitative and qualitative monetary easing policy with yield curve control applying a negative interest rate of minus
0.1% to the “Policy-Rate Balances,” which are a part of current account amounts held by financial institutions at the Bank of Japan,
and aiming to keep the yield on 10-year Japanese government bonds around zero percent, and with exchange-traded fund, bond andcommercial paper purchase programs. In October 2023, the Bank of Japan announced that it would purchase 10-year Japanese
government bonds in amounts necessary to maintain the yield of such bonds around zero percent without setting an upper limit while
regarding one percent as its reference upper bound. In March 2024, while keeping the price stability target at 2 percent, the Bank ofJapan modified its monetary policy to encourage the uncollateralized overnight call rate to remain at around 0 to 0.1 percent, abolish
Japanese government bond purchase operations for the purposes of maintaining the yield on 10-year Japanese government bonds
below target upper limits while continuing with JGB purchases in similar volumes, and discontinue the exchange-traded fund purchaseprogram while gradually reducing the amount of commercial paper and corporate bond purchases to nil in about one year. As a resultof these monetary policy changes, the yield on 10-year Japanese government bonds fluctuated between 0.351% and 0.961% during the
fiscal year ended March 31, 2024. In June 2024, the Bank of Japan decided it would reduce its purchase amount of Japanese
government bonds after the next monetary policy meeting scheduled on July 30 and 31, 2024 and would decide at the July meeting on
a detailed plan for the reduction of its purchase amount during the next one to two years or so to ensure that long-term interest rates
would be formed more freely in financial markets.
In the United States, the Federal Open Market Committee raised the target for the federal funds rate to 5.25% to 5.50% in July
2023 from 4.75% to 5.00% set in March 2023. In its meeting in June 2024, the Committee decided to maintain the target range for the55Table of Contents
federal funds rate at 5.25% to 5.5% to support its goals of achieving maximum employment and inflation at 2 percent over the longer
run. In addition, the Committee announced its plan to continue reducing its holdings of Treasury securities and agency debt andagency mortgage-backed securities. The 10-year U.S. Treasury bond yield increased from 3.470% at the end of March 2023 to 4.201%
at the end of March 2024, while fluctuating between 3.308% and 4.991% during the period.
Foreign Currency Exchange Rates
The Japanese yen depreciated against the U.S. dollar from ¥133.53 to the U.S. dollar as of March 31, 2023 to ¥151.41 to the
U.S. dollar as of March 31, 2024. The Japanese yen has been fluctuating between around ¥151 and ¥162 to the U.S. dollar since April
2024.
The Japanese yen was on a generally depreciating trend against the euro during the fiscal year ended March 31, 2024, with theexchange rate being ¥163.24 to the euro as of March 31, 2024 compared to ¥145.72 to the euro as of March 31, 2023. The Japanese
yen has been fluctuating between around ¥163 and ¥175 to the euro since April 2024.
The Japanese yen was on a generally depreciating trend against the Thai baht during the fiscal year ended March 31, 2024, withthe exchange rate being ¥4.16 to the Thai baht as of March 31, 2024 compared to ¥3.91 to the Thai baht as of March 31, 2023. The
Japanese yen has been fluctuating between ¥4.12 and ¥4.45 to the Thai baht since April 2024.
Stock Prices
The closing price of the Nikkei Stock Average, which is the average of 225 blue chip stocks listed on the Tokyo Stock
Exchange, increased from ¥28,041.48 on March 31, 2023 to ¥40,369.44 on March 31, 2024. The closing price of the Nikkei Stock
Average has since risen and has been fluctuating between around ¥37,000 and ¥42,200 since April 2024, reaching record high levels
in July 2024.
Recent Developments
During the fiscal year ended March 31, 2024, we engaged in transactions to ensure adequate capital base and structure, whilepursuing strategies to improve our capital management and seek opportunities to grow our business. Japan faces some challenges suchas a declining birth rate, an aging society and a shrinking population, while low growth has become normalized throughout the world.
The environment we operate in has been affected by issues including significant inflationary price trends, instability in the financial
system, geographical conflicts, growing awareness of environmental and social issues, and advances in digital technologies that enable
the entry of new competitors in the financial sector. These developments are changing the business environment in significant ways
and with unprecedented speed. MUFG seeks to meet these changes with clear visions and to make the most of these challenges asopportunities for growth. Under our new medium-term business plan for the three years ending in the fiscal year ending March 31,
2027, we aim to leverage our extensive network and diverse solutions to provide value to our stakeholders around the world.
Implementation of Share Repurchase Programs and Cancellation of Treasury Shares
During November 2023 and March 2024, we repurchased 300,646,400 shares of our common stock for ¥399,999,861,554 undera share repurchase program that was adopted in November 2023. Under the program, we were authorized by the Board of Directors torepurchase up to the lesser of 400,000,000 shares of our common stock and ¥400.0 billion between November 15, 2023 and March 31,
2024. In addition, we canceled 350,000,000 shares of our common stock held in treasury on November 30, 2023.
During May and June 2024, we repurchased 62,666,100 shares of our common stock for ¥99,999,986,737 under a share
repurchase program that was adopted in May 2024. Under the program, we were authorized by the Board of Directors to repurchase
up to the lesser of 80,000,000 shares of our common stock and ¥100.0 billion between May 16, 2024 and June 30, 2024. Based on
information used to calculate our capital ratios under applicable Japanese regulations as of March 31, 2024, we estimate that the share
repurchase pursuant to this program would have resulted in a decline in each of our Common Equity Tier 1 capital ratio, our Tier 1
capital ratio and our total capital ratio as of March 31, 2024 by approximately 0.1 percentage point.
We intend to agilely engage in repurchases of shares of our own stock as a means to return profits to shareholders and improve
capital efficiency, taking into account our business performance and capital position, opportunities for growth investments, and market
conditions including stock prices. As a general policy, we intend to cancel treasury shares to the extent that such shares exceed
approximately 5% of our total issued shares (including treasury shares).
Issuances of TLAC Eligible Senior Debt

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Table of Contents
During the fiscal year ended March 31, 2024, we obtained $2.5 billion, or ¥378.5 billion, ¥255.0 billion, and €0.5 billion, or¥81.6 billion, aggregate principal amount of external TLAC eligible senior debt financing in the form of securities and borrowings. In
April 2024, we issued $2.5 billion, or ¥387.0 billion, aggregate principal amount of external TLAC eligible senior debt in the form of
securities.
As of March 31, 2024, our External TLAC ratios were 25.06% on a risk-weighted assets basis and 9.65% on a leverage
exposure basis. As of the same date, we were required to maintain External TLAC ratios above 18% on a risk-weighted assets basis
and 6.75% on a leverage exposure basis. See “—B. Liquidity and Capital Resources—Capital Adequacy” below and “Item 4.B.
Information on the Company—Business Overview—Supervision and Regulation—Japan—Total loss-absorbing capacity.”
Issuances of Basel III-Compliant Subordinated Debt
During the fiscal year ended March 31, 2024, we obtained $0.75 billion, or ¥113.6 billion, and ¥796.0 billion aggregate
principal amount of perpetual subordinated Additional Tier 1 debt financing in the form of securities and borrowings in and outside
Japan. These securities and borrowings are subject to our discretion to cease interest payments and a write-down of the principal upon
the occurrence of certain events, including when our Common Equity Tier 1 capital ratio declines below 5.125% (but, following any
such write-down, the principal may be reinstated if the ratio improves and to the extent permitted by the Japanese banking regulator),
when we are deemed to have reached the point of non-viability (“PONV”) or when we become subject to bankruptcy proceedings.
During the fiscal year ended March 31, 2024, we obtained ¥210.0 billion aggregate principal amount of subordinated term Tier
2 debt financing in the form of securities issued in Japan. We can be exempted from the obligation to pay principal of and interest on
the securities when we are deemed to have reached the PONV.
According to the FSA’s approach, PONV will be deemed to have been reached when the Prime Minister of Japan, following
deliberation by Japan’s Financial Response Crisis Council pursuant to the Deposit Insurance Act of Japan (“DIA”), confirms thatSpecified Item 2 Measures need to be applied to MUFG under circumstances where its liabilities exceed or are likely to exceed its
assets, or it has suspended or is likely to suspend payment of its obligations.
Acquisition of HC Consumer Finance Philippines, Inc & PT Home Credit Indonesia
In June 2023, MUFG Bank and its subsidiary Krungsri acquired HC Consumer Finance Philippines, Inc. (“HC Philippines”) for
approximately €467.9 million, or ¥69,841 million, subject to price adjustments after the acquisition date. In October 2023, Krungsri
and PT. Adira Dinamika Multi Finance “ADMF”), an Indonesia-based finance company and also a subsidiary of MUFG Bank,acquired HC Home Credit Indonesia (“HC Indonesia”) for €202.0 million, or ¥31,812 million. Each of HC Philippines and HC
Indonesia is a leading point-of-sale lender in its respective market.
As a result of the acquisition, Krungsri holds 75% of the shares of HC Philippines and 75% of the shares of HC Indonesia,
MUFG Bank holds 25% of the shares of HC Philippines, and ADMF holds 9.83% of the shares of HC Indonesia.
In March 2024, Krungsri completed a capital injection of approximately IDR 510 billion, or ¥4,869 million, into HC Indonesia.
Following this capital injection, Krungsri’s total shareholding in HC Indonesia increased to 80% and ADMF’s total shareholding in
HC Indonesia decreased to 4.92%.
See Note 2 to our audited consolidated financial statements for additional information.
Acquisition of Additional Shares of U.S. Bancorp Common Stock
In August 2023, MUFG Bank acquired 24,000,000 shares of the common stock of U.S. Bancorp (“USB”), which constituted an
additional investment in USB, for a purchase price of approximately $936 million, or ¥136.8 billion, based on a per share price of$39.00 (the “Investment”). Following this Investment, MUFG Bank’s total shareholding in USB increased to 4.39%.
The proceeds received by USB for the Investment were paid to MUFG’s subsidiary, MUFG Americas Holdings Corporation, toreduce USB’s $3.5 billion outstanding obligation due within five years of the closing date of the sale of MUFG Union Bank, N.A.
(“Union Bank”), which was December 1, 2022, under the Share Purchase Agreement, dated September 21, 2021, with respect to thesale of Union Bank.
In addition, for purposes of strengthening sustainable non-Japanese yen funding capacity, MUFG Bank has entered into anagreement, which is contractually available for complementary U.S. dollar liquidity support, with U.S. Bank National Association, abank subsidiary of USB.

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Table of Contents
Acquisition of AlbaCore Capital GroupIn November 2023, Mitsubishi UFJ Trust and Banking and its consolidated subsidiary First Sentier Investors acquired a 75%
interest in Albacore Capital Group (“AlbaCore”) for cash consideration paid in the amount of ¥49,266 million. In connection with thistransaction, ¥17,979 million of contingent consideration was recognized at discounted fair value. The value of the contingent
consideration is calculated with reference to certain future earnings metrics and targets of AlbaCore, discounted to net present value.
The deferred payment of the contingent consideration is subject to AlbaCore’s earnings for certain future fiscal periods exceeding athreshold. If the future earnings exceed the threshold, a variable payment depending on the value of the future earnings will be made.
AlbaCore is headquartered in London with a presence in Dublin, and has capabilities spanning various parts of the corporate
credit spectrum including private credit, CLOs, liquid credit and structured credit in Europe. Through the acquisition of AlbaCore, we
aim to offer new products in the highly demanded alternative sector and expand our touchpoints with new customers, thereby further
strengthening our global asset management business.
Acquisition of PT Mandala Multifinance Tbk
In March 2024, MUFG Bank and its consolidated subsidiary ADMF acquired 80.6% of the shares in PT Mandala Multifinance
Tbk (“MFIN”) for approximately IDR 7,042 billion, or ¥67,385 million, pursuant to the share purchase agreement with PT
Jayamandiri Gemasejati and certain other shareholders in June 2023. As a result of this acquisition, MUFG Bank holds 70.6% of the
MFIN shares, while ADMF holds 10% of the shares.
MFIN is an Indonesian company which mainly provides auto loans for new motorbikes and multi-purpose loans secured by
motorbikes in the domestic market, with strong presence especially in eastern Indonesia. MUFG Bank and ADMF intend to leverage
MFIN’s strengths, in both products and geography, to further reinforce and expand our auto loan business in Indonesia.
See Note 2 to our audited consolidated financial statements for additional information.
Acquisition of Shares of WealthNavi
In March 2024, MUFG Bank acquired 9,110,000 newly issued shares of common stock of WealthNavi Inc. through a third party
allotment transaction, resulting in MUFG Bank holding 15.55% of the shares of the company. This transaction was consummatedpursuant to a capital and business alliance agreement between MUFG Bank and WealthNavi in February 2024. As part of the alliance,
MUFG Bank has one director appointed and currently serving on the WealthNavi’s board of directors. As a result, WealthNavi
became an equity method affiliate of MUFG Bank.
WealthNavi is a leading provider of automated online wealth management services in Japan in terms of assets undermanagement and number of users. MUFG Bank and WealthNavi seek to provide solutions to long-term financial needs of customers
by combining MUFG Bank’s wide-ranging customer base and product line-up and WealthNavi’s capabilities in agile planning andproduct development.
Acquisition of Link Administration Holdings Limited
On May 16, 2024, Mitsubishi UFJ Trust and Banking acquired all of the issued shares of Link Administration Holdings Limited,
an Australian pension and stock administration company, as originally announced on December 18, 2023. The company's corporatename has been changed to MUFG Pension & Market Services Holdings Limited.
The acquisition of the global pension and stock administration functions of MUFG Pension & Market Services Holdings
Limited is expected to further enable MUFG to accelerate its global business expansion, with access to Australian pension funds andglobal corporate clients for the Global Investor Services Business to offer a broad range of financial solutions, allowing it tostrengthen its global reach, develop growth opportunities and expand the business scale.

58

Table of Contents
A.

Operating Results

Results of Operations
Fiscal years ended March 31,
2023(Restated)2022% Change
2024

2023

2024

(in billions, except percentages)

Interest income¥
Interest expense
Net interest income
Provision for credit losses
Non-interest income
Non-interest expense
Income (loss) before income tax expense (benefit)
Income tax expense (benefit)
Net income (loss) before attribution of noncontrollinginterests¥
Net income attributable to noncontrolling interests
Net income (loss) attributable to Mitsubishi UFJ
Financial Group
¥2,531.0 ¥
560.4
1,970.6
278.0
1,394.8
3,146.1(58.7)(14.5)

4,611.4
2,222.0
2,389.4
8.1
1,486.9
3,420.0
448.2
41.2

¥

7,107.1
4,513.1
2,594.0
238.0
2,867.6
3,341.0
1,882.6
501.6

82.2 %
296.5
21.3(97.1)
6.6
8.7
N/M
383.7

54.1 %
103.1
8.6
N/M
92.9
(2.3)
320.0
N/M

(44.2) ¥407.0¥

1,381.0

N/M

239.3 %

39.1

30.4

(83.3) ¥

376.6

52.9
¥

1,328.1(22.2)
N/M

74.0
252.6 %

Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
We recorded net income attributable to Mitsubishi UFJ Financial Group of ¥1,328.1 billion, compared to net income of ¥376.6
billion for the same period of the previous fiscal year, primarily due to an increase in non-interest income resulting from net gains
from marketable equity securities reflecting higher stock prices and an increase in interest income particularly from foreign loans.
Net interest income increased 8.6% mainly because of an increase in net foreign interest income. U.S. and Japanese interest rates
were higher and the Japanese yen depreciated against the U.S. dollar during the fiscal year ended March 31, 2024, compared to theprevious fiscal year. Our average interest rate spread (which is the average interest rate on interest-earning assets less the averageinterest rate on interest-bearing liabilities) increased 0.09 percentage points to 0.92%. The average interest rate on total interestearning assets increased 0.84 percentage points. On foreign interest-earning assets, the average interest rate increased 1.98 percentage
points. On the domestic side, while domestic interest income increased 21.3% to ¥1,209.0 billion, domestic interest expense increased
65.1% to ¥1,275.0 billion.
Provision for credit losses increased mainly due to the absence of significant reversal of credit losses for the fiscal year ended
March 31, 2024, particularly compared to the reversal of credit losses related to a large domestic commercial borrower for the fiscal
year ended March 31, 2023, and the provision for credit losses related to a large borrower in the domestic manufacturing industry forthe fiscal year ended March 31, 2024. In addition, provision for the Krungsri segment increased mainly due to the acquisition of
consumer finance companies, including HC Philippines which we acquired in June 2023.
Non-interest income increased 92.9% primarily resulting from net gains from marketable equity securities reflecting higher
stock prices, partially offset by the impact of the absence of the gain on the sale of MUFG Union Bank recorded in the previous fiscal
year.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
We recorded net income attributable to Mitsubishi UFJ Financial Group of ¥376.6 billion primarily due to an increase in net
interest income mainly as a result of an increase in foreign interest income and the gain on sale of MUFG Union Bank as well as adecrease in provision for credit losses.
Net interest income increased 21.3% mainly due to an increase in foreign interest income, particularly on foreign loans,reflecting the higher average interest rate on the larger average asset balance. Our average interest rate spread (which is the averageinterest rate on interest-earning assets less the average interest rate on interest-bearing liabilities) increased 0.11 percentage points to
0.83%.

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Table of Contents
Provision for credit losses decreased 97.1% mainly due to changes in our assessment of the impact of the COVID-19 pandemic
on our loan portfolio and the qualitative reserve which, for the previous fiscal year, reflected our assessment of the rapidly changing
Russia-Ukraine situation.
Non-interest income increased 6.6% primarily due to the gain on sale of MUFG Union Bank and financing-related fees inforeign branches of MUFG Bank, while non-interest expense increased 8.7% due to loss on valuation adjustment for loans held forsale held by MUFG Union Bank and an increase in salaries and employee benefits.
Net Interest Income
Fiscal years ended March 31,
2022

Averagebalance(1)% Change2023

Interest
income(expense)

Avera
ge
rate

Averagebalance(1)2024Interest
income(expense)

Avera
ge
rate

Interest
income(expense)

Averagebalance(1)Change% Change

2023

Avera
ge
rate

Averagebalance

Change2024

Interest
income(expense)

Averagerate 2023
minus
2022
(percenta
gepoints)Averagebalance

Interest
income(expense)

Averagerate 2024
minus
2023
(percenta
gepoints)(in billions, except percentages)
Interest-earning
assets:Domestic¥175,474.0

825.6

0.47%

¥175,859.2

997.1

0.57%

¥178,357.5¥ 1,209.0

0.68%

0.2%

20.8%

0.10

1.4%

21.3%

0.11

Foreign

100,705.1

1,705.4

1.69

115,159.2

3,614.3

3.14

115,100.9

5,898.1

5.12

14.4

111.9

1.45

(0.1)

63.2

1.98

¥276,179.1¥ 2,531.0

0.92%¥291,018.4¥ 4,611.4

1.58%¥293,458.4¥ 7,107.1

2.42%

5.4%

82.2%

0.66

0.8%

54.1%

0.84

Domestic¥211,839.0¥(277.1)

0.13%¥218,582.7¥(772.2)0.35%¥222,068.4¥ (1,275.0)

0.57%

3.2%

178.7%

0.22

1.6%

65.1%

0.22

Foreign

67,920.5(283.3)0.42

76,295.0(1,449.8)

1.90

78,344.3(3,238.1)

4.13

12.3

N/M

1.48

2.7

123.3

2.23

279,759.5(560.4)0.20

294,877.7(2,222.0)

0.75

300,412.7(4,513.1)

1.50

5.4

296.5

0.55

1.9

103.1

0.75

—

7.8

—

80.2

—

1.54%

5.4%

0.56

0.8%

0.77

Total

¥

¥

Financed by:Interest-bearing
liabilities:

Total
Non-interest-bearing
liabilities (assets)
Total
Net interest income
and interest rate
spread(3,580.4)—¥276,179.1(3,859.3)

0.20%¥ 1,970.6

Net interest income asa percentage of
total interestearning assets—¥291,018.4

0.72%

0.76%

¥ 2,389.4

0.71%(6,954.3)¥293,458.4

0.83%¥ 2,594.0

0.82%

0.92%

21.3%

0.88%

0.11

8.6%

0.11

0.09

0.06

Effect of Volume and Rate Changes on Net Interest Income
Fiscal Year Ended March 31, 2022
versusFiscal Year Ended March 31, 2023

Fiscal Year Ended March 31, 2023
versusFiscal Year Ended March 31, 2024

Increase (decrease)
due to changes inVolume(2)Rate(2)

Increase (decrease)
due to changes in
Net change

Volume(2)(in millions)

Domestic
Foreign
Total

¥
¥

250 ¥
306,410306,660 ¥(323,933) ¥436,106
112,173 ¥Rate(2)

Net change(in millions)(323,683) ¥742,516
418,833 ¥9,666 ¥
(85,860)(76,194) ¥(300,517) ¥581,247
280,730 ¥(290,851)
495,387
204,536

Notes:(1) Average balances are generally based on a daily average while a month-end average is used for certain average balances when it is not practicable to obtain
applicable daily averages.
(2) Volume/rate variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total “net change.”

Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Net interest income for the fiscal year ended March 31, 2024 increased 8.6% compared to the previous fiscal year primarily due
to a significant increase in net foreign interest income, reflecting the impact of higher average interest rates on foreign interest-earning
assets, particularly foreign loans. In contrast, while domestic interest income increased 21.3% to ¥1,209.0 billion, domestic interest
60

Table of Contents
expense increased 65.1% to ¥1,275.0 billion mainly as a result of higher average interest rates on deposits and payables under
repurchase agreements. Our total average interest rate spread (which is the average interest rate on interest-earning assets less theaverage interest rate on interest-bearing liabilities) increased 0.09 percentage points.
During the fiscal year ended March 31, 2024, U.S. interest rates were higher compared to the previous fiscal year and theJapanese yen depreciated against the U.S. dollar. As a result, the average interest rate on foreign interest-earning assets increased 1.98
percentage points to 5.12%, and foreign interest income increased 63.2%. Foreign interest expense increased 123.3% as a result of a
2.23 percentage point increase in the average interest rate on foreign interest-bearing liabilities to 4.13%. However, the impact of theinterest rate increase on foreign interest income was larger than the impact of the interest rate increase on foreign interest expense
because the average balance of foreign interest-earning assets was approximately 1.5 times the average balance of foreign interestbearing liabilities. The average balance of foreign interest-earning assets was ¥115,100.9 billion as of March 31, 2024, remaining at
the same level compared to March 31, 2023, while the average balance of foreign interest-bearing liabilities increased 2.7% to¥78,344.3 billion as of March 31, 2024.
Domestic interest income increased 21.3% due to the higher average interest rate on domestic interest-earning assets,
particularly loans. Domestic interest expense increased 65.1% due to increases in the average interest rates on most domestic interestbearing liabilities. Our average domestic interest rate spread decreased to 0.11% for the fiscal year ended March 31, 2024 from 0.22%
for the previous fiscal year. In recent years, our average balance of domestic interest-bearing liabilities has been greater than our
average balance of domestic interest-earning assets. Between March 31, 2023 and 2024, the average balance of domestic interestearning assets increased 1.4%, while the average balance of domestic interest-bearing liabilities increased 1.6%.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Net interest income for the fiscal year ended March 31, 2023 increased 21.3% compared to the previous fiscal year primarily
due to a significant increase in net foreign interest income, particularly on foreign loans. Foreign interest income increased due to thehigher average rate in overseas branches and subsidiaries of our commercial banking subsidiaries. The average interest rate on foreigninterest-earning assets increased to 3.14% from 1.69%, while the average interest rate on interest-bearing liabilities increased to 1.90%
from 0.42%, resulting in a decrease in the average foreign interest rate spread to 1.24% for the fiscal year ended March 31, 2023 from
1.27% for the previous fiscal year. However, the impact of the interest rate increase on foreign interest income was larger than theimpact of the interest rate increase on foreign interest expense because the average balance of foreign interest-earning assets wasapproximately 1.5 times the average balance of foreign interest-bearing liabilities.
Domestic interest expense increased 178.7% due to an increase in the average interest rate on domestic interest-bearing
liabilities and increases in the average balances of payables under repurchase agreements and long-term debt. Domestic interest
income increased 20.8% due to the higher average interest rate on domestic interest-bearing assets. Our average domestic interest rate
spread decreased to 0.22% for the fiscal year ended March 31, 2023 from 0.34% for the previous fiscal year. As a result, net domestic
interest income significantly decreased.
Provision for credit losses
Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
We recorded ¥238.0 billion of provision for credit losses for the fiscal year ended March 31, 2024, compared to ¥8.1 billion ofprovision for credit losses for the previous fiscal year. Provision for credit losses increased ¥229.9 billion mainly due to the absence ofsignificant reversal of credit losses for the fiscal year ended March 31, 2024, particularly compared to the reversal of credit losses
related to a large domestic commercial borrower for the fiscal year ended March 31, 2023, and the provision for credit losses related toa large borrower in the domestic manufacturing industry for the fiscal year ended March 31, 2024. In addition, provision for the
Krungsri segment increased mainly due to the acquisition of consumer finance companies, including HC Philippines which we
acquired in June 2023.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
We recorded ¥8.1 billion of provision for credit losses for the fiscal year ended March 31, 2023, compared to ¥278.0 billion ofprovision for credit losses for the previous fiscal year. Provision for credit losses decreased ¥269.9 billion mainly due to a decrease inprovision for credit losses for the Commercial segment, primarily reflecting improvements in the business performance of some large
domestic borrowers and a decrease in qualitative reserve recorded for the Russia-Ukraine situation.

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Table of Contents
Non-Interest Income
Fiscal years ended March 31,
2022

2023
(Restated)2024% Change
2023

2024

(in billions, except percentages)

Fees and commissions income:Fees and commissions on deposits
Fees and commissions on remittances and transfers
Fees and commissions on foreign trading business
Fees and commissions on credit card business
Fees and commissions on security-related services
Fees and commissions on administration and management
services for investment funds
Trust fees
Guarantee fees
Insurance commissions
Fees and commissions on real estate business¥51.0 ¥
157.2
56.3
207.1
264.5

49.8 ¥
147.6
69.0
230.4
224.9

36.7
151.7
74.5
251.0
278.5

(2.4)%
(6.1)
22.5
11.3
(15.0)(26.3)%
2.8
7.9
9.0
23.8

286.6
133.3
45.9
42.4
65.6

282.3
131.0
48.0
49.4
68.4

317.3
129.4
51.2
64.7
68.4

(1.5)
(1.7)
4.7
16.7
4.3

12.4
(1.3)
6.6
30.8
—

Other fees and commissions
349.0
400.8
475.6
Total
1,658.9
1,701.6
1,899.0
Foreign exchange gains (losses)—net
106.9
25.2
(294.2)
Trading account losses—net:
Net profits (losses) on interest rate and other derivative contracts(102.1)238.2(947.0)Net profits (losses) on trading account securities, excluding
derivatives(722.3) (1,030.3)
248.0
Total
(824.4)(792.1)(699.0)Investment securities gains (losses)—net:
Net gains (losses) on sales of available-for-sale debt securities
48.8(62.4)(149.5)
Reversal of impairment losses (impairment losses) on
available-for-sale debt securities(47.3)(359.3)
0.5
Net gains (losses) from marketable equity securities(131.7)89.0
1,528.0
Other
11.2
78.5
0.6
Total
(119.0)(254.2) 1,379.6
Equity in earnings of equity method investees—net
436.6
398.1
463.8
Gains (losses) on sales of loans including valuation adjustment forloans held for sale
16.6
(34.0)(45.1)
Gain on sale of MUFG Union Bank
—
349.4
—
Other non-interest income
119.2
92.9
163.6
Total non-interest income¥ 1,394.8 ¥ 1,486.9 ¥ 2,867.6

14.9
2.6
(76.4)

18.7
11.6
N/M

333.2

N/M

(42.6)
3.9

124.1
11.7

(227.9)(139.4)

N/M
167.7
N/M
(113.5)
(8.8)

100.1
N/M
(99.2)
N/M
16.5(305.1)
N/M(22.2)
6.6 %(32.4)
N/M
76.2
92.9 %

Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Non-interest income for the fiscal year ended March 31,2024 increased 92.9% compared to the previous fiscal year mainly due
to increases in net gains from marketable equity securities and net profits on trading account securities, excluding derivatives, partially
offset by net losses on interest rate and other derivative contracts and by the absence of the gain on the sale of MUFG Union Bank
recorded in the previous fiscal year.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Non-interest income for the fiscal year ended March 31, 2023 increased 6.6% compared to the previous fiscal year mainly due
to the gain on the sale of MUFG Union Bank, partially offset by an increase in net investment securities losses.

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Table of Contents
Fees and commissions income
Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Fees and commissions income for the fiscal year ended March 31, 2024 increased 11.6% compared to the previous fiscal year
primarily due to an increase in financing-related fees in foreign branches of MUFG Bank, which were included in Other fees andcommissions, and an increase in fees and commissions on security-related services in our securities subsidiaries.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Fees and commissions income for the fiscal year ended March 31, 2023 increased 2.6% compared to the previous fiscal year
primarily due to an increase in financing-related fees in foreign branches of MUFG Bank, which are included in Other fees andcommissions, an increase in credit card business volumes, and an increase in fees and commissions on foreign trading businessreflecting larger volumes of money transfers and foreign exchange trading activities. These increases were partially offset by adecrease in fees and commissions security-related services due to decreases in commissions on underwriting, secondary distributionof, and offering to sell to and solicitation of offers to buy from professional investors, securities in our securities and banking
subsidiaries.
Net foreign exchange gains (losses)
Fiscal years ended March 31,
2022

2023

2024

% Change
2023

2024

(in billions, except percentages)

Foreign exchange gains (losses)—net:
Net foreign exchange gains (losses) on derivative contracts
Net foreign exchange losses on other than derivative contracts
Net foreign exchange gains related to the fair value option
Total

¥

(44.7) ¥57.9 ¥ (406.7)(1,601.4)(1,401.8)(2,063.9)
1,753.0
1,369.1
2,176.4¥
106.9 ¥
25.2 ¥ (294.2)

229.6 %
12.5
(21.9)(76.4)%

N/M(47.2)
59.0
N/M

Net foreign exchange gains (losses) consist of the following:•

Net foreign exchange gains (losses) on derivative contracts are net gains (losses) primarily on currency derivative
instruments entered into for trading purposes.

•

Net foreign exchange gains (losses) on other than derivative contracts include foreign exchange trading gains (losses) as wellas transaction gains (losses) on the translation into Japanese yen of monetary assets and liabilities denominated in foreign
currencies. The transaction gains (losses) on the translation into Japanese yen fluctuate from period to period depending upon
the spot rates at the end of each fiscal year. In principle, all transaction gains (losses) on translation of monetary assets andliabilities denominated in foreign currencies are included in current earnings.

•

Net foreign exchange gains (losses) related to the fair value option include transaction gains (losses) on the translation into
Japanese yen of securities under the fair value option. See Note 31 to our consolidated financial statements.

Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Net foreign exchange losses for the fiscal year ended March 31, 2024 mainly reflected net foreign exchange losses on other thanderivative contracts resulting from higher foreign exchange translation losses on monetary liabilities denominated in foreign
currencies in our commercial banking subsidiaries as the Japanese yen depreciated against other major currencies on a spot rate basis
between March 31, 2023 and March 31, 2024. In addition, net foreign exchange losses on derivative contracts increased. These losses
were partially mitigated by net foreign exchange gains related to the fair value option applied to foreign currency-denominated trading
account securities such as U.S. Treasury bonds as the Japanese yen depreciated against the U.S. dollar from ¥133.53 to the U.S. dollar
as of March 31, 2023 to ¥151.41 to the U.S. dollar as of March 31, 2024.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Net foreign exchange gains for the fiscal year ended March 31, 2023 mainly reflected net foreign exchange gains related to thefair value option applied to foreign currency-denominated trading account securities such as U.S. Treasury bonds as the Japanese yen
depreciated against the U.S. dollar from ¥122.39 to the U.S. dollar as of March 31, 2022 to ¥133.53 to the U.S. dollar as of March 31,
2023, which represented a slightly smaller exchange rate fluctuation compared to the previous fiscal year when the Japanese yen
depreciated against the U.S. dollar from ¥110.71 to the U.S. dollar as of March 31, 2021 to ¥122.39 to the U.S. dollar as of March 31,
63

Table of Contents
2022. The net foreign exchange gains related to the fair value option for the fiscal year ended March 31, 2023 were offset by net
foreign exchange losses on other than derivative contracts reflecting the negative impact of fluctuations in the foreign currency
exchange rates on the Japanese yen translated amounts of assets and liabilities of our commercial banking subsidiaries as the Japanese
yen depreciated against other major currencies on a spot rate basis between March 31, 2022 and March 31, 2023.
Net trading account profits (losses)
Fiscal years ended March 31,
2022

2023

2024

% Change
2023

2024

(in billions, except percentages)

Trading account losses—net:
Net profits (losses) on interest rate and other derivative contracts
Interest rate contracts
Equity contracts
Commodity contracts
Credit derivatives
Other
Total
Net profits (losses) on trading account securities, excluding
derivatives
Trading account securities
Trading account securities under the fair value option
Total
Total

¥

¥

¥
¥
¥

50.9 ¥(98.1)—(33.8)(21.1)(102.1) ¥262.8 ¥
(12.7)—(19.9)
8.0
238.2 ¥

(215.6)(618.2)(0.7)(27.4)(85.1)(947.0)

N/M
87.1
N/M
41.1
138.1
333.2 %

(182.1)%
N/M
N/M(37.7)
N/M
N/M

262.3 ¥
150.0 ¥
(984.6)(1,180.3)(722.3) ¥ (1,030.3) ¥(824.4) ¥ (792.1) ¥421.3(173.3)248.0(699.0)(42.8)%(19.9)(42.6)%
3.9 %

180.8 %
85.3
124.1 %
11.7 %

Trading account assets and liabilities are carried at fair value and changes in the value of trading account assets and liabilities
are recorded in net trading account profits (losses). Activities reported in our net trading account profits (losses) can generally beclassified into two categories:•

trading purpose activities, which are conducted mainly for the purpose of generating profits either through transaction feesor arbitrage gains and involve frequent and short-term selling and buying of securities, commodities or others; and•trading account assets relating to the application of certain accounting rules, which are generally not related to trading
purpose activities, but simply classified as trading accounts due to the application of certain accounting rules.

Of the two categories, trading account assets relating to the application of certain accounting rules represent a larger portion of
our trading account losses for each of the fiscal years ended March 31, 2023 and 2024.
We generally do not separate, for financial reporting purposes, customer originated trading activities from non-customer related,
proprietary trading activities. When an order for a financial product is placed by a customer, a dealer offers a price which includes
certain transaction fees, often referred to as the “margin” to the market price. The margin is determined by considering factors such asadministrative costs, transaction amount and liquidity of the applicable financial product. Once the customer agrees to the offeredprice, the deal is completed, and the position is recorded in our ledger as a single entry without any separation of components. To
manage the risk relating to the customer side position, we often enter into an offsetting transaction with the market. Unrealized gains
and losses as of the period-end for both the customer side position and the market side position are recorded within the same trading
account profits and losses.
Net trading account profits (losses) consist of net profits (losses) on interest rate and other derivative contracts and net profits(losses) on trading account securities, excluding derivatives.
Net profits (losses) on interest rate and other derivative contracts are reported for net profits (losses) on derivative instruments
which primarily relate to trading purpose activities and include:•

Interest rate contracts: Interest rate contracts are mainly utilized to manage interest rate risks which could arise frommismatches between assets and liabilities resulting from customer originated trading activities;•

Equity contracts: Equity contracts are mainly utilized to manage the risk that would arise from price fluctuations of stocks
held in connection with customer transactions;64

Table of Contents•

Commodity contracts: Commodity contracts are mainly utilized to meet customers’ demand for hedging the risks relating
to commodity price fluctuations in their transactions, and to diversify our portfolio of derivative instruments held for
trading purposes; and•Credit derivatives: Credit derivatives are mainly utilized as a part of our credit portfolio risk management.

Derivative instruments for trading purposes also include those used as hedges of net exposures rather than for specifically
identified assets or liabilities, which do not meet the specific criteria for hedge accounting.
Net profits (losses) on trading account securities, excluding derivatives, consist of:•

Net profits (losses) on trading account securities, which primarily consist of gains and losses on trading and valuation of
trading securities which relate to trading purpose activities. Net profits (losses) on investment securities held by certain
consolidated variable interest entities, or VIEs, are included in accordance with the applicable accounting rules.

•

Net profits (losses) on trading account securities under the fair value option, which are classified into trading accounts
profits (losses) in accordance with certain accounting rules.

Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Net trading account losses for the fiscal year ended March 31, 2024 mainly reflected net losses on equity contracts and interest
rate contracts. The net losses on equity contracts mainly reflected the increase in losses on equity swaps for hedging purposes in ourbanking subsidiaries due to rising stock prices. The net losses on interest rate contracts primarily reflected interest rate swap losses inour banking subsidiaries, compared to net profits on interest rate contracts for the previous fiscal year in the significantly risinginterest rates environment. These losses were partially offset by the increase in net profits on trading account securities primarily
resulting from an increase in net profits on domestic trading account securities in our banking subsidiaries as stock prices generallyrose during the fiscal year ended March 31, 2024.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Net trading account losses for the fiscal year ended March 31, 2023 mainly reflected net losses on trading account securities
under the fair value option. During the fiscal year ended March 31, 2023, long-term U.S. interest rates gradually increased, and the fairvalue of trading account securities under the fair value option decreased at the end of March 2023. Net losses on credit derivatives
resulted from losses on such derivatives for hedging purposes at our commercial banking subsidiaries. These losses were partially
offset by net profits on interest rate contracts which reflected interest rate swap gains in our trust banking subsidiary.
Net investment securities gains (losses)
Net investment securities gains (losses) include net gains (losses) on sales of available-for-sale debt securities, impairment
losses on available-for-sale debt securities, and net gains (losses) from marketable equity securities. Impairment loss on an availablefor-sale debt security is recognized as part of investment securities losses if the fair value of such security is below its amortized costbasis and (1) such debt security is held by us with the intent to sell or (2) it is more likely than not that we will be required to sell suchdebt security before recovering its amortized cost basis. In other circumstances where the fair value of available-for-sale debt
securities is less than the amortized cost basis, we recognize the credit component of the impairment loss as part of investment
securities losses, and record an allowance for credit losses to the same extent, while recording the noncredit component of theimpairment loss in accumulated other comprehensive losses. Net gains (losses) from marketable equity securities include net gains(losses) on sales of marketable equity securities as well as unrealized gains (losses) on such securities.
Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Net investment securities gains for the fiscal year ended March 31, 2024 were ¥1,379.6 billion, compared to net losses of ¥254.2
billion for the fiscal year ended March 31, 2023, reflecting net gains from marketable equity securities of ¥1,528.0 billion compared to¥89.0 billion for the previous year. This was due to increases in net unrealized gains on marketable equity securities and net realized
gains on sales of marketable equity securities reflecting higher stock prices.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Net investment securities losses for the fiscal year ended March 31, 2023 were ¥254.2 billion, compared to net losses of ¥119.0
billion for the fiscal year ended March 31, 2022. This was mainly due to larger impairment losses on the available-for-sale debt
securities held for sale related to the transferred business of MUFG Union Bank. These losses were partially offset by net gains frommarketable equity securities which reflected slightly higher stock prices in Japan as of March 31, 2023 compared to the end of theprevious fiscal year, with an upward trend towards the end of March 2023.

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Table of Contents
Net equity in earnings of equity method investees
Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Net equity in earnings of equity method investees for the fiscal year ended March 31, 2024 was ¥463.8 billion, compared to¥398.1 billion for the previous fiscal year, primarily reflecting the absence of the impairment losses of our equity method investees
recognized in the previous fiscal year.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Net equity in earnings of equity method investees for the fiscal year ended March 31, 2023 was ¥398.1 billion, compared to¥436.6 billion for the previous fiscal year, reflecting lower earnings of our equity method investees, including Morgan Stanley, andimpairment losses of our equity method investees.
Gain on sale of MUFG Union Bank
We completed the sale of MUFG Union Bank in December in December 2022. We recorded a pre-tax gain on the sale of
MUFG Union Bank in the amount of ¥349.4 billion for the fiscal year ended March 31, 2023. For information on the accounting
treatment applied to the sale of MUFG Union Bank, as restated, and information on the transaction, see Notes 1A and 2 to ourconsolidated financial statements.
Non-Interest Expense
Fiscal years ended March 31,
2022

2023

% Change
2024

2023

2024

(in billions, except percentages)

Salaries and employee benefits¥
Occupancy expenses—net
Fees and commissions expenses
Outsourcing expenses, including data processing
Depreciation of premises and equipment
Amortization of intangible assets
Impairment of intangible assets
Insurance premiums, including deposit insurance
Communications
Taxes and public charges
Impairment of goodwill
Provision for off-balance sheet credit instruments
Impairment (reversal of impairment) of assets held for
sale
Loss on valuation adjustment for loans held for sale
held by MUFG Union Bank
Other non-interest expenses
Total non-interest expense¥

1,277.4 ¥
165.3
310.9
318.0
82.7
261.0
33.3
95.6
57.4
99.7
—
46.3

1,343.6
162.2
340.1
351.3
73.8
274.4
5.2
74.3
58.4
100.3
33.6
20.7

¥

134.1

(134.1)

—

3.2
261.2
3,146.1 ¥

282.5
433.7
3,420.0—
409.8
3,341.0¥

1,398.0
156.0
385.2
320.9
79.6
288.6
15.0
91.0
58.6
105.4
—
32.9

5.2 %
(1.9)
9.4
10.5
(10.7)
5.1(84.5)(22.2)
1.8
0.6
N/M(55.2)

4.0%
(3.8)
13.2
(8.7)
7.9
5.2
192.0
22.4
0.4
5.1
(100.0)58.6(200.0)

100.0

N/M
65.9
8.7 %

(100.0)(5.5)(2.3)%

Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Non-interest expense for the fiscal year ended March 31, 2024 decreased 2.3% mainly due to the absence of the previously
recorded loss on valuation adjustment for loans held for sale held by MUFG Union Bank and the previously recorded impairment of
goodwill, partially offset by the absence of the previously recorded reversal of impairment of assets held for sale related to the sale of
MUFG Union Bank and increases in salaries and employee benefits and in fees and commission expenses.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Non-interest expense for the fiscal year ended March 31, 2023 increased 8.7% compared to the previous fiscal year mainly due
to loss on valuation adjustment for loans held for sale related to the sale of MUFG Union Bank and increases in salaries and employee
66

Table of Contents
benefits, as well as impairment of goodwill relating to First Sentier Investors, partially offset by reversal of impairment of assets held
for sale related to the sale of MUFG Union Bank.
Salaries and employee benefits
Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Salaries and employee benefits for the fiscal year ended March 31, 2024 increased ¥54.4 billion compared to the previous fiscal
year mainly due to higher labor costs in growing business sectors and the impact of the depreciation of the Japanese yen against othermajor currencies, despite a decrease due to the sale of MUFG Union Bank.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Salaries and employee benefits for the fiscal year ended March 31, 2023 increased ¥66.2 billion compared to the previous fiscal
year mainly due to the foreign exchange translation impact of the depreciation of the Japanese yen against other major currencies andan increase in employee retention costs abroad in the tighter labor market especially in North America.
Fees and commissions expenses
Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Fees and commissions expenses for the fiscal year ended March 31, 2024 increased 13.2% compared to the previous fiscal year
mainly due to increases in fees and commissions expenses related to the loan business, the credit card business and the businessalliance arrangements at our securities subsidiaries.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Fees and commissions expenses for the fiscal year ended March 31, 2023 increased 9.4% compared to the previous fiscal year
mainly due to increases in fees and commissions expenses related to the credit card business and the business alliance arrangements at
our securities subsidiaries.
Loss on valuation adjustment for loans held for sale held by MUFG Union BankIn December 2022, MUFG and MUFG Bank completed the sale of all shares of MUFG Union Bank to U.S. Bancorp pursuant toa Share Purchase Agreement, dated as of September 21, 2021, by and among MUFG, MUFG Americas Holdings and U.S. Bancorp.
In connection with that transaction, we recorded loss on valuation adjustment for loans held for sale held by MUFG Union Bank forthe fiscal years ended March 31, 2023 and 2022. Specifically, loss on valuation adjustment for loans held for sale held by MUFG
Union Bank of ¥282.5 billion was recorded for the fiscal year ended March 31, 2023 due to the valuation losses on the loans held forsale related to the transferred business of MUFG Union Bank. These valuation losses were reflected in the carrying value of net assets
transferred. Since these valuation losses had no impact on the consideration for the sale of shares of MUFG Union Bank, to the extent
of the decrease in the carrying amount of the loans held for sale resulting from these valuation losses, the gains on the sale of shares of
MUFG Union Bank increased. For more information on fair value valuation, see Notes 2 and 31 to our consolidated financial
statements.
Impairment (reversal of impairment) of assets held for sale
We recorded impairment (reversal of impairment) of assets held for sale in the fiscal years ended March 31, 2023 and 2022
mainly attributable to the sale of MUFG Union Bank which was completed in December 2022. Specifically, reversal of impairment ofassets held for sale of ¥134.1 billion was recorded for the fiscal year ended March 31, 2023. During the second half of the fiscal year
ended March 31, 2022, ¥134.1 billion of impairment of assets held for sale was recognized through the application of the lower of costor market method to the disposal group related to the sale of MUFG Union Bank. However, during the first half of the fiscal year
ended March 31, 2023, the fair value less cost to sell exceeded the carrying value and the reversal was recognized. For more
information, see Notes 2 and 31 to our consolidated financial statements.
Impairment of goodwill
Impairment of goodwill of ¥33.6 billion was recorded relating to the First Sentier Investors reporting unit within the AssetManagement & Investor Services Business Group segment for the fiscal year ended March 31, 2023 since the cash flow forecast for
the reporting unit was revised downwards due to a decrease in the balance of assets under management, which reflected a decline inequity markets. See Note 6 to our consolidated financial statements.

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Table of Contents
Given the three-month difference between our consolidated reporting period and the reporting period of some of our
subsidiaries, including First Sentier Investors, our fair value assessment with respect to such subsidiaries after December 31 of eachyear is reflected in our consolidated financial statements for a period ending after March 31 of each year. See Note 1 to ourconsolidated financial statements.
Income Tax Expense (Benefit)
Fiscal years ended March 31,
2023(Restated)2022% Change
2024

2023

2024

N/M
383.7 %
N/A
N/A

320.0 %
N/M
N/A
N/A

(in billions, except percentages)

Income (loss) before income tax expense (benefit)
Income tax expense (benefit)
Effective income tax rate
Combined normal effective statutory tax rate¥

(58.7) ¥(14.5)
24.7 %
30.6 %

68448.2¥ 1,882.6
41.2
501.6
9.2 %
26.6 %
30.6 %
30.6 %

Table of Contents
Reconciliation of Combined Normal Effective Statutory Tax Rate to Effective Income Tax Rate
Net Change(percentage points)

Fiscal years ended March 31,
2023(Restated)

2022

Combined normal effective statutory tax rate
Increase (decrease) in taxes resulting from:
Nondeductible expenses
Impairment of goodwill
Foreign tax credit and payments
Lower tax rates applicable to income of subsidiaries
Change in valuation allowance
Taxation for gain on sale of shares in subsidiary
Nontaxable dividends received
Undistributed earnings of subsidiaries
Tax and interest expense for uncertainty in income
taxes
Noncontrolling interest income
Effect of changes in tax laws
Expiration of loss carryforward
Other—net
Effective income tax rate

2024

2023

2024

30.6 %

30.6 %

30.6 %——(12.0)—
28.7
30.8(90.1)—
85.1(25.6)

1.1
2.2
(6.9)
(4.1)
(1.3)
5.0
(21.7)
(0.4)

0.4
—
0.9
(1.5)
(1.4)
—
(4.1)
0.9

13.1
2.2
(35.6)(34.9)
88.8
5.0(106.8)
25.2

(0.7)
(2.2)
7.8
2.6
(0.1)
(5.0)
17.6
1.3

(10.8)

—

—

10.8

(0.7)
(2.4)
(7.0)
(1.9)
24.7 %

0.4
0.9
0.2
3.2
9.2 %

0.6
—
0.1
0.1
26.6 %

1.1
3.3
7.2
5.1
(15.5)

(1)

N/M
0.2
(0.9)
(0.1)
(3.1)
17.4

Note:
(1) In March 2023, MUAH repurchased a portion of the MUAH shares held by other consolidated MUFG group companies. MUAH remains a wholly owned
subsidiary of the MUFG Group. The repurchase transaction resulted in the realization of a difference between the book value of the repurchased shares foraccounting and tax purposes, resulting in a ¥22.3 billion increase in income tax expense and a 5.0 percentage point increase in the effective tax rate for the fiscal
year ended March 31, 2023 for MUFG on a consolidated basis. The gain and cost for the transaction was eliminated as an intercompany transaction.

Income taxes applicable to us in Japan are imposed by the national, prefectural and municipal governments, and the aggregate ofthese taxes resulted in a combined normal effective statutory tax rate of 30.6% for each of the fiscal years ended March 31, 2023 and2024. Foreign subsidiaries are subject to income taxes of the jurisdictions in which they operate. These taxes are reflected in theeffective income tax rate.
Fiscal Year Ended March 31, 2024
The effective income tax rate for the fiscal year ended March 31, 2024 was 26.6%, which was 4.0 percentage points lower thanthe combined normal effective statutory rate of 30.6%.
This lower effective income tax rate primarily reflected our receipt of nontaxable dividends, which resulted in a decrease of¥76.9 billion in income tax expense and a decrease of 4.1 percentage points in the effective income tax rate for the fiscal year ended
March 31, 2024. Under Japanese tax law, a certain percentage of dividends received is considered nontaxable and excluded from grossrevenue in computing taxable income. This creates a permanent difference between our taxable income for Japanese tax purposes andour income before income tax expense reported under U.S. GAAP.
Another factor contributing to the lower effective income tax rate was the lower tax rates applicable to income of subsidiaries,
which resulted in a decrease of ¥28.6 billion in income tax expense and a decrease of 1.5 percentage points in the effective income tax
rate for the fiscal year ended March 31, 2024.
Fiscal Year Ended March 31, 2023
The effective income tax rate for the fiscal year ended March 31, 2023 was 9.2%, which was 21.4 percentage points lower thanthe combined normal effective statutory rate of 30.6%.

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Table of Contents
This lower effective income tax rate primarily reflected our receipt of nontaxable dividends, which resulted in a decrease of¥97.2 billion in income tax expense and a decrease of 21.7 percentage points in the effective income tax rate for the fiscal year ended
March 31, 2023. Under Japanese tax law, a certain percentage of dividends received is considered nontaxable and excluded from grossrevenue in computing taxable income. This creates a permanent difference between our taxable income for Japanese tax purposes andour income before income tax expense reported under U.S. GAAP.
Another factor contributing to the lower effective income tax rate was the foreign tax credit, which resulted in a decrease of¥30.7 billion in income tax expense and a decrease of 6.9 percentage points in the effective income tax rate for the fiscal year ended
March 31, 2023.
Fiscal Year Ended March 31, 2022
The effective income tax rate for the fiscal year ended March 31, 2022 was 24.7%, which was 5.9 percentage points lower thanthe combined normal effective statutory rate of 30.6%. This lower effective income tax rate primarily reflected an addition of ¥47.4
billion of valuation allowance against deferred tax assets for certain subsidiaries, which resulted in an increase of ¥52.9 billion inincome tax expense and a decrease of 90.1 percentage points in the effective income tax rate for the fiscal year ended March 31, 2022.
The increase in valuation allowance includes recognition of valuation allowance related to the loss which is expected on the sale of theshares in MUFG Union Bank to U.S. Bancorp. This impact was partially offset by an increase of 85.1 percentage points in theeffective income tax rate resulting from our receipt of nontaxable dividends, which resulted in a decrease of ¥50.0 billion in income
tax expense for the fiscal year ended March 31, 2022. Under Japanese tax law, a certain percentage of dividends received is considered
nontaxable and excluded from gross revenue in computing taxable income. This creates a permanent difference between our taxable
income for Japanese tax purposes and our income before income tax expense reported under U.S. GAAP.
Net income attributable to noncontrolling interests
Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
We recorded ¥52.9 billion of net income attributable to noncontrolling interests for the fiscal year ended March 31, 2024,
compared to ¥30.4 billion of net income attributable to noncontrolling interests for the previous fiscal year. This mainly reflected anincrease in net income of certain consolidated VIEs.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
We recorded ¥30.4 billion of net income attributable to noncontrolling interests for the fiscal year ended March 31, 2023,
compared to ¥39.1 billion of net income attributable to noncontrolling interests for the previous fiscal year. This mainly reflected adecrease in net income of certain consolidated VIEs.

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Business Segment Analysis
We measure the performance of each of our business segments primarily in terms of “operating profit.” Operating profit andother segment information in this Annual Report are based on the financial information prepared in accordance with Japanese GAAP
as adjusted in accordance with internal management accounting rules and practices. Accordingly, the format and information are notconsistent with our consolidated financial statements prepared in accordance with U.S. GAAP. For example, operating profit does notreflect items such as a component of the provision for credit losses (primarily equivalent to the formula allowance under U.S. GAAP),
foreign exchange gains (losses) and investment securities gains (losses). For a reconciliation of operating profit under the internalmanagement reporting system to income (loss) before income tax expense (benefit) shown on the consolidated statements ofoperations, see Note 29 to our consolidated financial statements. We do not use information on the segments’ total assets to allocate
our resources and assess performance. Accordingly, business segment information on total assets is not presented. However, in orderto ensure more efficient management of resources, and to strengthen controls on profits and losses in each business group, we allocate
fixed assets of both MUFG Bank on a stand-alone basis and Mitsubishi UFJ Trust and Banking on a stand-alone basis to each business
unit. Accordingly, such fixed assets allocated to business groups are presented below.
We made modifications to our internal management accounting rules and practices, effective April 1, 2023, including
reallocation of indirect expenses to the Retail & Commercial Banking Business Group from the Digital Service Business Group as
well as updates to internal booking rules relating to net revenue in the customer business groups. Corresponding adjustments werebooked in Other. There was no impact of these modifications on the Global Commercial Banking Business Group and the AssetManagement & Investor Services Business Group.
These changes had the following impact on our previously reported business segment information for the fiscal year ended
March 31, 2023:••

increasing the operating profits of the Digital Service Business Group and the Global Corporate & Investment Banking
Business Group by ¥6.3 billion and ¥1.8 billion, respectively, andreducing the operating profits of the Japanese Corporate & Investment Banking Business Group, the Global Markets
Business Group and the Retail & Commercial Banking Business Group by ¥4.4 billion, ¥2.0 billion and ¥1.7 billion
respectively.

Prior period business segment information has been restated to enable comparison between the relevant amounts for the fiscal
years ended March 31, 2022, 2023 and 2024.
For further information, see Note 29 to our consolidated financial statements.
Effective April 1, 2024, we reorganized our business groups as described in “Item 4.B. Information on the Company—Business
Overview—Medium-Term Business Plan—Reorganization of the Business Groups.” The business segment information shown below
is based on the previous business segmentation not reflecting such reorganization.

71

Table of Contents
Customer Business

DigitalServiceBusinessGroup

Retail &Commercial
Banking
Business
Group

Japanese
Corporate &Investment
Banking
BusinessGroup

GlobalCommercial
Banking
Business
Group

Asset
Management& Investor
Services
BusinessGroup

GlobalCorporate &Investment
Banking
Business
Group

Total

GlobalMarkets
Business
Group

Other

Total

(in billions)Fiscal year ended
March 31, 2022:
Net revenue¥

BK and TB(1):

741.6

¥

584.6

¥

623.2

¥

771.7

540.1

¥ 3,610.1

11.3¥ 4,048.4

106.3

362.2

1,614.7

203.4

53.2

1,871.3

2.1

9.3

171.6

772.5

231.5

148.6

1,152.6

—

97.0

174.0

722.7

(8.7)

(57.4)

656.6

73.4

(0.2)

—

16.6

119.5

(19.4)(38.0)

62.1

194.3

126.4

769.8

242.6

177.9

1,995.4

223.6(41.9)

2,177.1

490.9

320.9

528.0

241.4

295.3

2,435.4

253.0

127.6

2,816.0

257.2

390.3

496.8

1.9

Net interest
income

218.0

160.8

210.7

Net fees

36.0

203.0

212.7

Other

3.2

26.5

Other than BK
and TB

484.4

Operating expenses

558.9

¥

348.9

¥

¥

427.0

¥

Operating profit(loss)

¥

182.7

¥

93.7

¥

302.3

¥

243.7

¥

107.5

¥

244.8

¥ 1,174.7

¥

174.0

¥ (116.3) ¥ 1,232.4

Fixed assets(2)

¥

140.6

¥

191.7

¥

155.8

¥

1.0

¥

13.3

¥

133.0

¥ 635.4¥

108.4¥ 550.3

Fiscal year ended
March 31, 2023:
Net revenue

¥

748.1

¥

614.5

¥

800.9

¥

870.6

¥

360.8

¥

¥

409.1

¥

BK and TB(1):712.6¥ 4,107.5

105.4

532.3

2,000.3

130.8

35.7

9.4

260.2

1,054.3

—

96.0

243.2

801.4

251.9

430.1

645.5

35.1

Net interest
income

214.1

192.4

342.5

Net fees

34.9

199.0

228.3

¥ 1,294.1(0.8) ¥ 4,515.8
19.5

2,150.6

710.6

89.7

1,854.6(16.6)(48.3)

736.5(21.9)(440.5)

Other

2.9

38.7

74.7

(0.6)

—

28.9

144.6

(563.2)Other than BK
and TB

496.2

184.4

155.4

835.5

255.4

180.3

2,107.2

278.3(20.3)

2,365.2

Operating expenses

527.4

458.9

330.7

580.3

255.7

334.8

2,487.8

274.0

176.4

2,938.2

Operating profit(loss)

¥

220.7

¥

155.6

¥

470.2

¥

290.3

¥

105.1

¥

377.8

¥ 1,619.7

¥

135.1

¥ (177.2) ¥ 1,577.6

Fixed assets(2)

¥

156.9

¥

201.9

¥

161.2

¥

1.1

¥

18.8

¥

171.2

¥ 711.2¥

110.6¥ 546.3¥ 1,368.1

Increase in fixed
assets(3)

¥

37.0

¥

41.9

¥

37.1

¥

0.6

¥

11.6

¥

23.4

¥ 151.5

¥

23.2

¥

34.2

¥

208.9

Depreciation(3)

¥

10.6

¥

21.1

¥

36.6

¥

0.2

¥

6.0

¥

35.2

¥ 109.8

¥

28.3

¥

19.5

¥

157.6

Fiscal year ended
March 31, 2024:
Net revenue

¥

782.5

¥

709.4

¥

1,013.7

¥

685.0

¥

432.3

¥

¥

323.4

¥ (37.6) ¥ 4,771.8

863.1¥ 4,486.0

253.1

492.5

829.5

29.3

118.6

781.0

2,504.0

21.8

40.2

2,566.0

Net interest
income

213.0

232.7

501.1

29.3

14.7

413.8

1,404.6

113.2

99.1

1,616.9

Net fees

37.7

213.0

233.5

—

103.8

328.8

916.8

(15.0)(16.4)

885.4

Other

2.4

46.8

94.9

—

0.1

38.4

182.6

(76.4)(42.5)

63.7

Other than BK
and TB

529.4

216.9

184.2

655.7

313.7

82.1

1,982.0

301.6(77.8)

2,205.8

Operating expenses

536.6

464.0

343.9

382.9

307.3

361.4

2,396.1

300.0

232.8

2,928.9

BK and TB(1):Operating profit(loss)

¥

245.9

¥

245.4

¥

669.8

¥

302.1

¥

125.0

¥

501.7

¥ 2,089.9¥

23.4¥ (270.4) ¥ 1,842.9

Fixed assets(2)

¥

186.8

¥

228.6

¥

169.2

¥

1.6

¥

21.2

¥

170.9

¥ 778.3¥

114.3¥ 502.3¥ 1,394.9

Increase in fixed
assets(3)

¥

38.6

¥

47.1

¥

46.1

¥

0.4

¥

11.5

¥

32.5

¥ 176.2

¥

28.2

¥

29.3

¥

233.7

¥

14.7

¥

24.6

¥

42.1

¥

0.2

¥

9.1

¥

42.1

¥ 132.8

¥

32.5

¥

16.3

¥

181.6

(3)

Depreciation

Notes:(1) “BK and TB” is a sum of MUFG Bank on a stand-alone basis (BK) and Mitsubishi UFJ Trust and Banking on a stand-alone basis (TB).
(2) Fixed assets in the above table are based on the financial information prepared in accordance with Japanese GAAP as adjusted in accordance with internalmanagement accounting rules and practices, and the amounts correspond to premises and equipment-net, intangible assets-net and goodwill of BK and TB. Fixed
assets of MUFG and other consolidated subsidiaries and Japanese GAAP consolidation adjustments amounting to ¥1,286.1 billion as of March 31, 2022, ¥1,210.2
billion as of March 31, 2023 and ¥1,505.4 billion as of March 31, 2024, respectively, are not allocated to each business segment when determining the allocationof management resources and assessing performance and, therefore, such amounts are not included in the table above.

72

Table of Contents(3)

These amounts are related to the fixed assets of BK and TB included in the table above.

Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
Digital Service Business Group—Covered digital-based non-face-to-face businesses servicing “mass-segment” customers, or
retail customers and small and medium-sized enterprise customers, of Mitsubishi UFJ NICOS, other consumer finance companies, andMUFG Bank in Japan. Its net revenue mainly consisted of interest income from lending and deposit-taking operations and fees relatingto credit card settlement and consumer financing products and services.
Operating profit increased mainly due to increases in the consumer finance balance and credit card settlement volume in the
midst of economic recovery from the COVID-19 pandemic as well as higher net interest income from non-JPY deposits reflecting
higher interest rates.
Retail & Commercial Banking Business Group—Covered the domestic retail and commercial banking businesses. This businessgroup mainly offered retail customers (with a strategic focus on high net-worth individuals) and small and medium-sized enterprisecustomers in Japan an extensive array of commercial banking, trust banking and securities products and services. Its net revenue
mainly consisted of interest income from lending and deposit-taking operations and fees relating to domestic and foreign exchange
settlement services and wealth management solutions, including asset management, asset and business succession transfer and realestate services.
Operating profit increased, mainly driven by an increase in the wealth management business due to recovery in the stock market
environment and an increase in net interest income from lending and deposit-taking operations due to improved deposit and lending
spreads on corporate loans and by the growth in the solutions business largely led by leveraged buyout deals.
Japanese Corporate & Investment Banking Business Group—Covers the large Japanese corporate businesses. This businessgroup offers large Japanese corporations advanced financial solutions designed to respond to their diversified and globalized needs
and to contribute to their business and financial strategies through the global network of our group companies. Its net revenue mainly
consists of interest income from lending and deposit-taking operations and fees relating to financing, investment banking, real estateand stock transfer services for large Japanese corporate customers.
Operating profit increased mainly due to an increase in net interest income from lending and deposit-taking operations reflecting
higher interest rates outside Japan and improved deposit and lending spreads as well as an increase in fee income from the primary
securities market business due to recovery in the stock market environment.
Global Commercial Banking Business Group—Covers the retail and commercial banking businesses of Krungsri and PT Bank
Danamon Indonesia, Tbk. This business group offers a comprehensive array of financial products and services such as loans, deposits,
fund transfers, investments and asset management services for local retail, small and medium-sized enterprise, and corporate
customers across the Asia-Pacific region. Its revenue mainly consists of interest income from lending and deposit-taking operations
and fees from remittances and transfers, consumer finance and wealth-related services for individual and small to medium-sizedcorporate customers of Krungsri and Bank Danamon.
Operating profit increased mainly due to an increase in net interest income in Krungsri and Bank Danamon reflecting higher
interest rates and improved deposit and lending spreads as well as loan balance growth and the impact of company acquisitions by
Krungsri, partially offset by the impact of the sale of MUFG Union Bank.
Asset Management & Investor Services Business Group—Covers the asset management and asset administration businesses ofMitsubishi UFJ Trust and Banking, MUFG Bank and First Sentier Investors. By integrating the trust banking expertise of Mitsubishi
UFJ Trust and Banking and the global strengths of MUFG Bank, the business group offers a full range of asset management andadministration services for corporations and pension funds, including pension fund management and administration, advice on pension
structures, and payments to beneficiaries, and also offers investment trusts for retail customers. Its net revenue mainly consists of feesfrom asset management and administration services for products, such as pension trusts and mutual funds.
Operating profit increased primarily due to higher transaction volume both domestically and globally through sale of bundledservices related to defined contribution plans and investor services as well as due to the receipt of performance-based fees by First
Sentier Investors, partially offset by expenses related to First Sentier Investors' acquisition of AlbaCore Capital Group.
Global Corporate & Investment Banking Business Group—Covers the global corporate, investment and transaction banking
businesses of MUFG Bank and Mitsubishi UFJ Securities Holdings. Through a global network of offices and branches, this businessgroup provides large non-Japanese corporate and financial institution customers outside Japan with a comprehensive set of solutions
that meet their increasingly diverse and sophisticated financing needs. Its net revenue mainly consists of interest income from lending73

Table of Contents
and deposit-taking operations and fees and commissions from investment banking services and foreign exchange and derivatives
transactions.
Operating profit increased mainly due to an increase in non-interest income reflecting robust performance of project finance andcapital markets in the United States and Europe as well as an increase in net interest income from lending and deposit-taking
operations reflecting higher interest rates, improved deposit and lending spreads and the impact of the depreciation of the Japanese yen
against other major currencies.
Global Markets Business Group—Covers the customer business and the treasury operations of MUFG Bank, Mitsubishi UFJ
Trust and Banking and Mitsubishi UFJ Securities Holdings. The customer business includes sales and trading in fixed income
instruments, currencies, equities and other investment products as well as origination and distribution of financial products. The
treasury operations include asset and liability management as well as global investments for the MUFG Group.
Operating profit decreased mainly due to a decrease in income from treasury operations impacted by increased foreign currency
funding costs and by portfolio rebalancing in the rising interest rate environment, partially offset by an increase in sales and trading
income driven by the growth in flow transactions benefiting from market volatility.
Other—Consists mainly of the corporate centers of MUFG, MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi
UFJ Morgan Stanley Securities. The elimination of duplicated amounts of net revenues among business segments is also reflected in
Other.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Digital Service Business GroupOperating profit increased mainly due to a decrease in operating expense from the progress on our sales channel reforms andlower deposit insurance premium rates as well as due to increases in consumer finance and foreign exchange revenue.
Retail & Commercial Banking Business GroupOperating profit increased mainly due to higher interest income from deposit-taking operations reflecting an improvement ininterest margins partly due to a rise in U.S. interest rates as well as increases in fees on foreign exchange and foreign exchange
derivatives transactions due to a transaction volume increase, in addition to a decrease in operating expenses due to lower deposit
insurance premium rates, a decrease in depreciation cost following asset impairment charges being recorded in the previous fiscal
year, and measures implemented to optimize staff utilization and restructure sales channels.
Japanese Corporate & Investment Banking Business GroupOperating profit increased mainly due to an increase in loan interest income reflecting improved interest margins partly due to arise in U.S. interest rates as well as increases in fees on foreign exchange transactions benefiting from market fluctuations and fees onreal estate financing transactions.
Global Commercial Banking Business GroupOperating profit increased mainly due to higher net interest income reflecting the escalation of policy interest rate increases in
the United States and Thailand as well as larger lending transaction volume in Krungsri.
Asset Management & Investor Services Business GroupOperating profit decreased mainly due to an increase in operating expenses primarily resulting from the foreign exchangetranslation impact of the depreciation of the Japanese yen against other major currencies on overseas expenses denominated in suchother currencies as well as office relocation cost in our banking subsidiary. In addition, lower performance-based fees in First Sentier
Investors and weak stock market conditions in Japan negatively impacted net revenue although net revenue slightly increased
primarily due to an increase in income from bundled services provided to global investors.
Global Corporate & Investment Banking Business GroupOperating profit increased mainly due to higher interest income from loans reflecting a rise in U.S. interest rates as well as anincrease in flow transactions and cross-selling transactions under fluctuating market conditions.
Global Markets Business Group74

Table of Contents
Operating profit decreased mainly due to net losses on debt securities primarily associated with our foreign bond portfolio
rebalancing operations in the treasury business in the rising interest rate environment, partially offset by an improvement in thecustomer business due to an increase in flow transactions seeking profits from market fluctuations.

Geographic Segment Analysis
Assets, income and expenses attributable to foreign operations are allocated to geographical areas based on the domicile of the
debtors and customers. In general, we have allocated all direct expenses and a proportionate share of general and administrative
expenses to income derived from foreign loans and other transactions by our foreign operations to the relevant foreign geographicalareas. Certain charges, such as most impairment charges on goodwill, are recognized as domestic expenses. For further information,
see Note 30 to our consolidated financial statements.
Fiscal years ended March 31,
2023(Restated)2022% Change
2024

2023

2024

(in billions, except percentages)

Total revenue (interest income and non-interest
income):Domestic¥
Foreign:
United States of America
EuropeAsia/Oceania excluding Japan
Other areas(1)Total foreign
Total¥
Income (loss) before income tax expense(benefit):
Domestic¥
Foreign:
United States of America
EuropeAsia/Oceania excluding Japan
Other areas(1)Total foreign
Total¥
Net income (loss) attributable to Mitsubishi UFJ
Financial Group:
Domestic¥
Foreign:
United States of America
EuropeAsia/Oceania excluding Japan
Other areas(1)Total foreignTotal¥

2,160.5 ¥2,618.0¥

3,824.2

21.2 %

46.1 %

500.6
67.7
975.3
221.6
1,765.2
3,925.7 ¥1,319.3
173.0
1,479.6
508.4
3,480.3
6,098.3¥

2,579.2
594.1
2,026.5950.7
6,150.5
9,974.7

163.5
155.6
51.7
129.5
97.2
55.3 %

95.5
243.4
37.0
87.0
76.7
63.6 %(38.1) ¥543.6¥

1,128.3

N/M

107.6 %

(166.0)(244.0)249.3
140.1(20.6)(58.7) ¥(302.2)(197.1)
196.8
207.1(95.4)
448.2 ¥

365.1
(96.2)
242.3
243.1
754.3
1,882.6(82.1)
19.2(21.1)
47.9(363.3)
N/M

220.8
51.2
23.1
17.3
N/M
320.0 %

(7.4) ¥

616.2

¥

929.6

N/M

50.9 %(498.2)(344.0)506.6
259.7(75.9)(83.3) ¥(110.3)(246.1)
9.1
107.7(239.6)376.6 ¥

442.0
(249.5)(44.1)
250.1
398.5
1,328.1

77.9
28.5(98.2)(58.5)(215.5)
N/M

N/M
(1.4)
N/M
132.2
266.3
252.6 %Note:(1) Other areas primarily include Canada, Latin America, the Caribbean and the Middle East.

Fiscal Year Ended March 31, 2024 Compared to Fiscal Year Ended March 31, 2023
75

Table of Contents
Domestic net income attributable to Mitsubishi UFJ Financial Group for the fiscal year ended March 31, 2024 was ¥929.6
billion compared to net income of ¥616.2 billion for the fiscal year ended March 31, 2023. This improvement was primarily due to anincrease in non-interest income resulting from net gains from marketable equity securities reflecting higher stock prices.
Foreign net income attributable to Mitsubishi UFJ Financial Group for the fiscal year ended March 31, 2024 was ¥398.5 billion
compared to net loss of ¥239.6 billion for the fiscal year ended March 31, 2023. This improvement was mainly due to increases in net
interest income and fees and commissions income particularly in the United States. Net loss for Asia/Oceania excluding Japan for the
fiscal year ended March 31, 2024 was mainly due to an increase in income tax expense. Net loss was recorded for Europe for each of
the fiscal years ended March 31, 2023 and 2024 primarily because of net trading account losses, primarily reflecting net losses on
trading account securities under the fair value option.
Fiscal Year Ended March 31, 2023 Compared to Fiscal Year Ended March 31, 2022
Domestic net income attributable to Mitsubishi UFJ Financial Group for the fiscal year ended March 31, 2023 was ¥616.2
billion compared to net loss of ¥7.4 billion for the fiscal year ended March 31, 2022. This improvement was primarily due to adecrease in provision for credit losses for the fiscal year ended March 31, 2023.
Foreign net loss attributable to Mitsubishi UFJ Financial Group for the fiscal year ended March 31, 2023 was ¥239.6 billion
compared to net loss of ¥75.9 billion for the fiscal year ended March 31, 2022. The larger net loss mainly reflected a significant
decrease in net income for Asia/Oceania excluding Japan mainly due to an increase in income tax expense for the fiscal year ended
March 31, 2023. Net loss was recorded for Europe for each of the fiscal years ended March 31, 2022 and 2023 primarily because of
net trading account losses, primarily reflecting net losses on trading account securities under the fair value option.
Effect of Change in Exchange Rates on Foreign Currency Translation
Fiscal Year Ended March 31, 2024
The average exchange rate for the fiscal year ended March 31, 2024 was ¥144.62 per US$1.00, compared to the prior fiscal
year’s average exchange rate of ¥135.47 per US$1.00. The average exchange rate for the conversion of the US dollar financial
statements of some of our foreign subsidiaries for the fiscal year ended December 31, 2023 was ¥140.56 per US$1.00, compared to theaverage exchange rate for the fiscal year ended December 31, 2022 of ¥131.43 per US$1.00.
The change in the average exchange rate of the Japanese yen against the US dollar and other foreign currencies had the effect ofincreasing total revenue by ¥473.0 billion, net interest income by ¥189.8 billion and income before income taxes by ¥115.4 billion,
respectively, for the fiscal year ended March 31, 2024.
Foreign currency translation adjustments of ¥1,096.7 billion were recognized in our consolidated statement of comprehensive
income for the fiscal year ended March 31, 2024. The adjustments are mainly due to the depreciation of the Japanese yen against othermajor currencies adopted by our foreign subsidiaries and equity method investments as their respective functional currencies. The
following table sets forth the functional currencies and the related foreign currency translation adjustments for the fiscal year ended
March 31, 2024:
Functional Currencies of foreign subsidiaries and equity method investments

Fiscal year ended March 31, 2024

(in billions)
United States Dollar
Thai Baht
Chinese Yuan
Great Britain Pound
Australian Dollar
Indonesian Rupiah

¥

Other
Total

¥

749.6
108.3
50.0
47.9
42.2
38.0
60.7
1,096.7

The foreign currency translation adjustments primarily resulted from the conversion of financial statements of our foreignsubsidiaries and equity method investees that have a US dollar functional currency and a Thai Baht functional currency. The effects of
conversion of these US dollar-based financial statements were ¥749.6 billion and were mainly attributable to those relating to Morgan
Stanley and BTMU Liquidity Reserve Investment 3 Limited, which were ¥265.3 billion and ¥131.3 billion, respectively. The effects
76

Table of Contentsof conversion of these Thai Baht-based financial statements were ¥108.3 billion and were mainly attributable to those relating toKrungsri, which were ¥107.0billion. For Morgan Stanley and BTMU Liquidity Reserve Investment 3 Limited, the exchange rates forthe conversion of their US dollar-based balance sheet items are those as of March 31, and for Krungsri, the exchange rate forconversion of its Thai Baht-based balance sheet items is that as of December 31. The fiscal year end of Krungsri is December 31 andhas been treated as coterminous with MUFG's fiscal year end with a three-month lag period. The Japanese yen depreciated from¥133.53 per US$1.00 as of March 31, 2023, and ¥3.80 per Thai Baht as of December 31, 2022, to ¥151.41 per US$1.00 as of March
31, 2024, and ¥4.13 per Thai Baht as of December 31, 2023, respectively.
Fiscal Year Ended March 31, 2023
The average exchange rate for the fiscal year ended March 31, 2023 was ¥135.47 per US$1.00, compared to the prior fiscal
year’s average exchange rate of ¥112.38 per US$1.00. The average exchange rate for the conversion of the US dollar financial
statements of some of our foreign subsidiaries for the fiscal year ended December 31, 2022 was ¥131.43 per US$1.00, compared to theaverage exchange rate for the fiscal year ended December 31, 2021 of ¥109.80 per US$1.00.
The change in the average exchange rate of the Japanese yen against the US dollar and other foreign currencies had the effect ofincreasing total revenue by ¥575.4 billion, net interest income by ¥336.0 billion and income before income taxes by ¥99.3 billion,
respectively, for the fiscal year ended March 31, 2023.
Foreign currency translation adjustments of ¥847.7 billion were recognized in our consolidated statement of comprehensive
income for the fiscal year ended March 31, 2023. The adjustments are mainly due to the depreciation of the Japanese yen against othermajor currencies adopted by our foreign subsidiaries and equity method investments as their respective functional currencies. The
following table sets forth the functional currencies and the related foreign currency translation adjustments for the fiscal year ended
March 31, 2023:
Functional Currencies of foreign subsidiaries and equity method investments

Fiscal year ended March 31, 2023

(in billions)
United States Dollar
Thai Baht
Australian Dollar
Indonesian Rupiah
Great Britain PoundEurocurrency

¥

Other
Total

¥

610.1
116.1
26.1
22.2
21.5
12.8
38.9
847.7

The foreign currency translation adjustments primarily resulted from the conversion of financial statements of our foreignsubsidiaries and equity method investees that have a US dollar functional currency and a Thai Baht functional currency. The effects of
conversion of these US dollar-based financial statements were ¥610.1 billion and were mainly attributable to those relating to MUFG
Americas Holdings and Morgan Stanley, which were ¥292.9 billion and ¥147.2 billion, respectively. The effects of conversion ofthese Thai Baht-based financial statements were ¥116.1 billion and were mainly attributable to those relating to Krungsri, which were¥115.9 billion. For MUFG Americas Holdings and Morgan Stanley, the exchange rates for the conversion of their US dollar-based
balance sheet items are those as of December 31 and March 31, respectively, and for Krungsri, the exchange rate for conversion of its
Thai Baht-based balance sheet items is that as of December 31. The fiscal year end of MUFG Americas Holdings and Krungsri is
December 31 and has been treated as coterminous with MUFG’s fiscal year end with a three-month lag period. The Japanese yen
depreciated from ¥115.02 per US$1.00 as of December 31, 2021, ¥122.39 per US$1.00 as of March 31, 2022, and ¥3.43 per Thai Baht
as of December 31, 2021, to ¥132.70 per US$1.00 as of December 31, 2022, ¥133.53 per US$1.00 as of March 31, 2023, and ¥3.80
per Thai Baht as of December 31, 2022, respectively.
B.

Liquidity and Capital Resources

Financial Condition
Our total assets and total liabilities as of March 31, 2024 were ¥397,436.5 billion and ¥378,959.2 billion, respectively, comparedto ¥381,735.7 billion and ¥365,269.6 billion, respectively, as of March 31, 2023.
For information on our off-balance sheet arrangements, see Note 24 to our consolidated financial statements, and for
information on our contractual obligations, see Notes 10 and 12 to our consolidated financial statements.
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Table of Contents
Total Assets
Our total assets as of March 31, 2024 were ¥397,436.5 billion, an increase of ¥15,700.8 billion from ¥381,735.7 billion as ofMarch 31, 2023. Domestic assets increased ¥8,031.1 billion mainly due to an increase in interest earning deposits at our subsidiarybank in Japan. The increase in total foreign assets was ¥7,669.7 billion, which was mainly due to a ¥4,645.9 billion increase in Asia/
Oceania excluding Japan and a ¥1,570.2 billion increase in the United States, partially offset by a ¥1,097.8 billion decrease in Europe.
The increase in Asia/Oceania excluding Japan primarily reflected an increase in investment securities, and the increase in the UnitedStates primarily reflected the impact of the depreciation of the Japanese yen against the U.S. dollar and other major currencies. The
decrease in Europe mainly resulted from the reduction in trading assets at the London branch of our subsidiary bank.

As of March 31,
2023

2024

% Change(in billions, except percentages)

Japan
Foreign(1):United States
EuropeAsia/Oceania excluding Japan¥

Other areas(2)Total foreign
Total

¥

249,539.1¥

257,570.2

3.2%

59,695.6
24,675.3
34,452.1

61,265.8
23,577.5
39,098.0

2.6
(4.4)
13.5

13,373.6
132,196.6
381,735.7

15,925.0
139,866.3
397,436.5

19.1
5.8
4.1%

¥

Notes:(1) Foreign assets are denominated primarily in the U.S. dollar. Geographic regions are based principally on the domicile of the obligors.
(2) Other areas primarily include Canada, Latin America, the Caribbean and the Middle East.

Loan Portfolio
The following table sets forth our loans outstanding, before deduction of allowance for credit losses by class. We classify ourloan portfolio into the following portfolio segments—Commercial, Residential, Card, Krungsri, and Other based on the grouping todetermine the allowance for credit losses. We further classify the Commercial segment into Domestic and Foreign classes based on
initial measurement attributes, risk characteristics, and method of monitoring and assessing credit risk. The Domestic Commercial
segment includes commercial loans to borrowers in Japan, and the Foreign Commercial segment includes commercial loans other thanthose included in the Domestic Commercial, Krungsri and Other segments. The Residential segment includes housing loans toborrowers in Japan, and the Card segment includes consumer loans to borrowers in Japan. The Krungsri segment includes loans heldby Krungsri and its subsidiaries. The Other segment mainly consists of Bank Danamon.
As of March 31,
2023

2024

% Change(in billions, except percentages)

Commercial
Domestic
Foreign
Residential
Card
Krungsri
Other¥

Total(1)
Unearned income, unamortized premium—net and deferred loan fees—net
Total(1)¥55,626.1 ¥42,189.7
12,874.9
472.8
7,782.6
1,410.4
120,356.5(401.0)119,955.5 ¥57,498.3
47,353.2
12,497.4
484.9
8,832.9
1,758.1
128,424.8(488.3)
127,936.5

3.4 %
12.2
(2.9)
2.5
13.5
24.7
6.7
(21.8)
6.7 %Note:(1) The above table includes loans held for sale of ¥967.1 billion and ¥953.6 billion as of March 31, 2023 and 2024, respectively, which are carried at the lower ofcost or fair value.

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Table of Contents
As of March 31, 2024, our total loan balance increased 6.7% compared to March 31 2023, and our total loans accounted for
32.2% of total assets as of March 31, 2024, compared to 31.4% as of March 31, 2023. Our foreign commercial loan balance increased
mainly due to the impact of the depreciation of the Japanese yen against the U.S. dollar and other major currencies. The loan balanceof the Krungsri segment increased primarily due to the acquisition of consumer finance companies, including HC Philippines which
we acquired in June 2023. As of March 31, 2024, loans, off-balance sheet credit instruments and due from banks held in relation toborrowers and counterparties that are subject to Russia country risk monitoring in accordance with our internal credit management
policy amounted to approximately ¥0.18 trillion on a gross basis before taking into account any allowances.
Credit quality indicator
As of March 31,
2023

2024

% Change(in billions, except percentages)(1)Commercial¥

Domestic
NormalClose Watch
Likely to become Bankrupt or Legally/Virtually Bankrupt
Foreign
NormalClose Watch
Likely to become Bankrupt or Legally/Virtually Bankrupt
Residential¥

AccrualNonaccrual
Card¥

AccrualNonaccrual
Krungsri¥

Performing
Under-Performing
Non-Performing
Other¥
AccrualNonaccrual

96,848.6
55,538.4
53,692.9
1,538.3
307.2
41,310.2
40,339.7
733.7
236.8
12,874.9
12,828.4
46.5
472.8
405.6
67.2
7,782.6
6,928.0642.9
211.7
1,410.4
1,380.6
29.8

¥

¥

¥

¥

¥

103,897.9
57,385.8
55,658.4
1,507.8
219.6
46,512.1

7.3 %
3.3
3.7
(2.0)
(28.5)
12.6

45,254.2
1,048.9
209.0
12,497.4
12,456.9
40.5
484.9
412.3
72.6
8,832.9
7,830.7
723.5
278.7
1,758.1
1,724.3
33.8

12.2
43.0
(11.8)(2.9)%(2.9)(12.9)
2.5 %
1.6
8.0
13.5 %
13.0
12.5
31.6
24.7 %
24.9
13.2

Note:
(1) Total loans in the above table do not include loans held for sale, and represent balances without adjustments in relation to unearned income, unamortizedpremiums and deferred loan fees.

We classify loans into risk categories based on relevant information about the ability of borrowers to service their debt,
including, but not limited to, historical and current financial information, historical and current payment experience, credit
documentation, public and non-public information about borrowers and current economic trends as deemed appropriate to eachsegment.
The primary credit quality indicator for loans within all classes of the Commercial segment is the internal credit rating assigned
to each borrower based on our internal borrower ratings of 1 through 15 with the rating of 1 assigned to a borrower with the highest
quality of credit. When assigning a credit rating to a borrower, we evaluate the borrower’s expected debt-service capability based on
various information, including financial and operating information of the borrower as well as information on the industry in which theborrower operates, and the borrower’s business profile, management and compliance system. In evaluating a borrower’s debt-service
capability, we also conduct an assessment of the level of earnings and an analysis of the borrower’s net worth. Based on the internalborrower rating, loans within the Commercial segment are categorized as Normal (internal borrower ratings of 1 through 9), Close
Watch (internal borrower ratings of 10 through 12), and Likely to become Bankrupt or Legally/Virtually Bankrupt (internal borrower
ratings of 13 through 15).

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Loans to borrowers categorized as Normal represent those that are not deemed to have collectability issues. Loans to borrowers
categorized as Close Watch represent those that require close monitoring as the borrower has begun to exhibit elements of potential
concern with respect to its business performance and financial condition, the borrower has begun to exhibit elements of serious
concern with respect to its business performance and financial condition, including business problems requiring long-term solutions,or the borrower’s loans are contractually past due 90 days or more for special reasons. Loans to borrowers categorized as Likely to
become Bankrupt or Legally/Virtually Bankrupt represent those that have a higher probability of default than those categorized as
Close Watch due to serious debt repayment problems with poor progress in achieving restructuring plans, the borrower being
considered virtually bankrupt with no prospects for an improvement in business operations, or the borrower being legally bankrupt
with no prospects for continued business operations because of non-payment, suspension of business, voluntary liquidation or filingfor legal liquidation.
For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit,
Market and Other Risk—Credit Risk Management.”
The accrual status is a primary credit quality indicator for loans within the Residential segment, the Card segment and the Other
segment. The accrual status of these loans is determined based on the number of delinquent payments.
Loans within the Krungsri segment are categorized as Performing, Under-Performing or Non-Performing based on theirdelinquency status. Loans categorized as Under-Performing generally represent those that have significant increases in credit risk
since origination, including, among other things, loans that are 30 days or more past due. Loans categorized as Non-Performing
generally represent those that are 90 days or more past due.
For the Commercial, Residential and Card segments, credit quality indicators are based on information as of March 31. For the
Krungsri and Other segments, credit quality indicators are generally based on information as of December 31.

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Allowance for credit losses

Fiscal year ended March 31, 2023:

Commercial

Residential

Card

Other(2)Krungsri

Total(in billions)

Allowance for credit losses:
Balance at beginning of fiscal year
Transfer from MUAH to Commercial segment
Provision for(reversal of) credit losses
Charge-offs
Recoveries collected
Net charge-offs
Other(1)Balance at end of fiscal year

Fiscal year ended March 31, 2024:¥

934.0 ¥
33.1
(113.9)
158.8
18.8
140.0
6.4
719.6 ¥¥

69.9 ¥
—
(9.5)
0.6
0.0
0.6
—
59.8 ¥

Commercial

Residential

40.8
—
19.2
18.3
0.7
17.6
—
42.4

¥

Card

Krungsri (4)

¥

322.4
—
70.7
95.5
25.5
70.0
34.9
358.0

¥

¥

103.6 ¥ 1,470.7(33.1)
—
41.6
8.1
55.9
329.1
24.5
69.5
31.4
259.6
12.4
53.7
93.1 ¥ 1,272.9

Other(4)Total(in billions)

Allowance for credit losses:
Balance at beginning of fiscal year
Provision for (reversal of) credit losses
Charge-offs
Recoveries collected
Net charge-offs
Other(1)(3)
Balance at end of fiscal year

¥

¥

719.6
66.2
72.8
14.5
58.3
18.0
745.5

¥

¥

59.8 ¥
(1.5)
1.3
0.0
1.3
—
57.0 ¥

42.4 ¥
21.9
21.0
0.7
20.3
(7.6)
36.4 ¥

358.0
117.6
146.6
30.6
116.0
54.8
414.4

¥

¥

93.1
33.8
38.6
17.2
21.4
7.4
112.9

¥ 1,272.9
238.0
280.3
63.0
217.3
72.6
¥ 1,366.2

Notes:(1) Other is principally comprised of gains or losses from foreign exchange translation.
(2) For the fiscal year ended March 31, 2023, the beginning balance and the ending balance of the Other segment in the above table includes the allowance for credit
losses of ¥30.4 billion and ¥3.4 billion, respectively, which were previously included in the MUAH segment. Please refer to Notes 2 and 4 to our consolidated
financial statements for further information.
(3) For the fiscal year ended March 31, 2024, Other includes the impact of changes in accounting principle relating to the recognition and measurement of TDRs,
which was adopted on April 1, 2023. The total impact across all segments was negative of ¥18.9 billion. See “—Allowance policy” below as well as Notes 1 and 4
to our consolidated financial statements.
(4) For the fiscal year ended March 31, 2024, the Krungsri and Other segments include the initial allowance for credit losses for the loans purchased with credit
deterioration of ¥20.1 billion and ¥2.1 billion, respectively.

We recorded ¥238.0 billion of provision for credit losses for the fiscal year ended March 31, 2024, compared to ¥8.1 billion ofprovision for credit losses for the previous fiscal year. Our total allowance for credit losses as of March 31, 2024 was ¥1,366.2 billion,
an increase of ¥93.3 billion from ¥1,272.9 billion as of March 31, 2023. The total allowance for credit losses represented 1.07% of thetotal loan balance as of March 31, 2024, compared to 1.06% as of March 31, 2023.
Provision for credit losses for the fiscal year ended March 31, 2024 increased ¥229.9 billion compared to the previous fiscal
year mainly due to the absence of significant reversal of credit losses for the fiscal year ended March 31, 2024, particularly comparedto the reversal of credit losses related to a large domestic commercial borrower for the fiscal year ended March 31, 2023, and theprovision for credit losses related to a large borrower in the domestic manufacturing industry for the fiscal year ended March 31, 2024.
In addition, provision for credit losses for the Krungsri segment increased mainly due to the acquisition of consumer financecompanies, including HC Philippines which we acquired in June 2023.
Significant trends in our portfolio segments are discussed below.
Commercial segment—We recorded ¥66.2 billion of provision for credit losses for the fiscal year ended March 31, 2024,
compared to ¥113.9 billion of reversal of credit losses for the previous fiscal year. The provision for credit losses for the fiscal year
ended March 31, 2024 was primarily related to a large borrower in the domestic manufacturing industry. Meanwhile, our qualitative
reserve recorded in light of the current outlook on the Russia-Ukraine situation decreased to ¥61.8 billion as of March 31, 2024 from¥95.5 billion as of March 31, 2023. The ratio of loans classified as Close Watch to total loans in the segment increased to 2.46% as of81

Table of Contents
March 31, 2024 from 2.35% as of March 31, 2023. The ratio of loans classified as Likely to become Bankrupt or Legally/Virtually
Bankrupt to total loans in the segment decreased to 0.41% as of March 31, 2024 from 0.56% as of March 31, 2023. The ratio ofallowance for credit losses to the total loan balance in this segment decreased to 0.72% as of March 31, 2024 from 0.74% as ofMarch 31, 2023.
Krungsri segment—We recorded ¥117.6 billion of provision for credit losses for the fiscal year ended March 31, 2024,
compared to ¥70.7 billion of provision for credit losses for the previous fiscal year. The provision recorded for the fiscal year was
mainly due to the acquisition of consumer finance companies, including HC Philippines which we acquired in June 2023. The ratio ofloans classified as Under-Performing or below to total loans in the segment increased to 11.35% as of March 31, 2024 from 10.98% asof March 31, 2023. The ratio of allowance for credit losses to the total loan balance in this segment increased to 4.69% as ofMarch 31, 2024 from 4.60% as of March 31, 2023.
With the recent acquisitions of consumer finance companies in South East Asia, we expect the ratio of allowance for credit
losses to the total loan balance in the Krungsri segment to increase as the newly acquired consumer finance companies are expected toexperience higher credit losses compared to commercial banks.
When there is an improvement in asset quality, reversal of credit losses is recorded in our consolidated statements of operations
to maintain the allowance for credit losses at a level management deems appropriate. Although we reversed allowance for credit losses
for certain loan portfolio segments in some prior periods, we have historically provided for credit losses, and in future periods we mayneed to recognize a provision for credit losses. See “Item 3.D. Key Information—Risk Factors—Credit Risk—We may suffer
additional credit-related losses in the future if our borrowers are unable to repay their loans as expected or if the measures we take inreaction to, or in anticipation of, our borrowers’ deteriorating repayment abilities prove inappropriate or insufficient.”
Allowance policy
We apply the current expected credit loss model that reflects expected credit losses and requires consideration of a broader rangeof reasonable and supportable information under Accounting Standards Codification 326 Financial Instruments—Credit Losses, toestimate credit losses.
We maintain an allowance for credit losses to absorb expected losses on the loan portfolio. We have divided our allowance for
credit losses into five portfolio segments—Commercial, Residential, Card, Krungsri and Other.
For all portfolio segments, key elements relating to the policies and discipline used in determining the allowance for credit
losses are our credit classification and related borrower categorization process, which are closely linked to the risk grading standards
set by the Japanese regulatory authorities for asset evaluation and assessment, and are used as a basis for establishing the allowance for
credit losses and charge-offs. The categorization is based on conditions that may affect the ability of borrowers to service their debt,
such as current financial condition, results of operations and cash flows, historical payment experience, credit documentation, otherpublic information and current trends.
For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit,
Market and Other Risk—Credit Risk Management.”
For the Commercial and Krungsri segments, our allowance for credit losses represents an estimate of the credit losses that are
expected over the life of the financial instrument or exposure and is recognized by incorporating relevant available information
relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses primarily consistsof (1) an allowance for loans measured on a collective basis, when similar risk characteristics exist, and (2) an allowance for loans
measured on an individual basis, for loans that do not share similar risk characteristics. Expected losses are calculated using
quantitative models that incorporate historical loss information and economic forecast scenarios and qualitative adjustments are also
implemented to account for the risks that are not adequately captured in the quantitative model or economic forecasting assumptions.
For the Residential and Card segments, the loans are smaller-balance homogeneous loans that are pooled by the risk ratings based on
the number of delinquencies.
For more information on our methodologies used to estimate the allowance for each portfolio segment, see “Summary of
Significant Accounting Policies” in Note 1 to our consolidated financial statements and “—E. Critical Accounting Estimates—
Allowance for Credit Losses” below.
Effective April 1, 2023, we adopted new guidance on measurement of credit losses on financial instruments for loan
modifications made to borrowers experiencing financial difficulty. Under the new guidance, we measure allowance for modified loans
primarily using a discounted cash flow methodology that utilizes a discount rate based on the post-modification contractual interest
rate, except for modified loans in the Card segment, for which allowance is measured using the collectively-assessed allowancemethodology. See Notes 1 and 4 to our unaudited condensed consolidated financial statements for further information.
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Allowance for off-balance sheet credit instruments
We maintain an allowance for credit losses on off-balance sheet credit instruments, including commitments to extend credit,
guarantees, standby letters of credit and other financial instruments. The allowance is included in other liabilities. We have adopted forsuch instruments the same methodology as that which is used in determining the allowance for credit losses on loans.
The allowance for credit losses on off-balance sheet credit instruments was ¥177.3 billion as of March 31, 2024, an increase of¥33.5 billion from ¥143.8 billion as of March 31, 2023. The increase was primarily related to a large borrower in the foreigncommercial segment.
Nonaccrual loans
We consider a loan to be a nonaccrual loan when substantial doubt exists as to the full and timely payment of interest on, or
repayment of, the principal of the loan, which is a borrower condition that generally corresponds to borrowers in categories 13 andbelow in our internal rating system (which corresponds to “Likely to become Bankrupt,” “Virtually Bankrupt” and “Bankrupt or defacto Bankrupt” status under Japanese banking regulations). Loans are also placed in nonaccrual status when principal or interest iscontractually past due one month or more with respect to loans within the Commercial segment, three months or more with respect toloans within the Card and Krungsri segments, and six months or more with respect to loans within the Residential segment.
For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit,
Market and Other Risk—Credit Risk Management.”
As of March 31,
2023

2024

% Change(in billions, except percentages)

Commercial¥

Domestic
Foreign
Residential
Card
Krungsri
Other
Total(1)

¥

648.5
401.8
246.7
47.9
67.2
211.7
29.8
1,005.1

¥

¥

520.6
295.0
225.6
41.1
72.6
278.7
33.8
946.8

(19.7)%(26.6)(8.6)(14.2)
8.0
31.6
13.2
(5.8)%Note:(1) The above table does not include loans held for sale of ¥9.2 billion and ¥378.4 billion as of March 31, 2023 and 2024, respectively.

Nonaccrual loans in the Domestic Commercial segment decreased ¥106.8 billion between March 31, 2023 and March 31, 2024.
This decrease mainly related to the loans to some large borrowers in the manufacturing industry and the communication andinformation industry. The increase in nonaccrual loans in the Krungsri segment was mainly due to the acquisition of consumer financecompanies, including HC Philippines which we acquired in June 2023.
Investment Portfolio
Our total investment securities increased 0.2% as of March 31, 2024, compared to March 31, 2023. Our investment securities
primarily consist of Japanese government bonds and marketable equity securities. Japanese government bonds are mostly classified asavailable-for-sale debt securities. Our investment in Japanese government bonds is a part of our asset and liability management policy
with respect to investing the amount of Japanese yen-denominated funds exceeding our net loans. The percentage of our holding ofavailable-for-sale Japanese government bonds to the total investment securities was 37.1% as of March 31, 2024, compared to 41.8%
as of March 31, 2023, as we sold available-for-sale Japanese government bonds in our investment portfolio with unrealized losses. On
the other hand, our holding of Japanese government bonds that are classified as held-to-maturity debt securities increased between
March 31, 2023 and March 31, 2024, accounting for 24.4% of the total investment securities as of March 31, 2024, compared to22.3% as of March 31, 2023.
Historically, we have held equity securities of some of our customers primarily for strategic purposes, in particular to maintainlong-term relationships with these customers. We continue to focus on reducing our investment in equity securities for such purposesin order to reduce the price fluctuation risk in our equity portfolio from a risk management perspective and to respond to applicableregulatory requirements as well as increasing market expectations for us to reduce our equity portfolio. As of March 31, 2023 and83

Table of Contents
2024, the aggregate book value of our marketable equity securities under Japanese GAAP satisfied the requirements of the legislationprohibiting banks from holding equity securities in excess of their Tier 1 capital. During the three fiscal years ended March 31, 2024,
we sold down an aggregate of approximately ¥539.0 billion of equity securities held in our strategic equity investment portfolio on an
acquisition cost basis. For the three fiscal years ending March 31, 2027, we have set a new equity holding reduction target of ¥350
billion on an acquisition cost basis. However, various factors, including changes in market conditions, may affect the amount of equity
securities we should sell and our ability to achieve the target as planned. For more information, see “Item 11. Quantitative andQualitative Disclosures about Credit, Market and Other Risk—Risk Management of Strategic Equity Portfolio.
Debt Securities
As of March 31,
2023

Amortized
cost

Fair
value

2024
Net
unrealized
gains(losses)

Amortized
cost

Fair
value

% ChangeNetunrealized
gains(losses)

Amortized
cost

Fair
value

Net
unrealized
gains(losses)(in billions, except percentages)

Available-for-sale debt securities:
Japanese national government andJapanese government agency
bonds¥ 26,153.9¥26,046.6

Japanese prefectural and municipal
bonds

2,773.8

2,759.9(13.9)

1,055.6

Foreign government and official
institution bonds

3,029.0

2,922.7(106.3)

Corporate bonds

1,051.3

1,058.2

Mortgage-backed securities

1,110.0

1,110.3

Asset-backed securities

1,418.6

1,430.3

Other debt securities¥(107.3) ¥ 23,287.7¥23,167.4¥(120.3)(11.0)%(11.1)%(12.2)%

1,046.0(9.6)(61.9)(62.1)

30.7

3,407.0

3,279.3(127.7)

12.5

12.2

(20.2)

6.9

1,015.3

1,021.6

6.3

(3.4)

(3.5)

(7.9)

0.3

1,229.6

1,229.5

(0.1)

10.8

10.7

(170.3)

11.7

1,239.8

1,247.1

7.3(12.6)(12.8)(37.3)

(5.0)

417.8

412.8

408.5

404.4

(4.1)

(2.2)

(2.0)

18.9

Total available-for-sale debt securities¥ 35,954.4¥35,740.8¥(213.6) ¥ 31,643.5¥31,395.3¥(248.2)(12.0)%(12.2)%(16.1)%

Held-to-maturity debt securities(1)¥ 21,520.1¥21,386.2¥(133.9) ¥ 24,844.0¥24,557.5¥(286.5)15.4 %

14.8 %(113.9)%Note:(1) See Note 3 to our consolidated financial statements for more details.
Net unrealized losses on available-for-sale debt securities increased 16.1% for the fiscal year ended March 31, 2024 compared tothe previous fiscal year primarily due to increases in net unrealized losses on Japanese national government and Japanese government
agency bonds and foreign government and official institution bonds. Net unrealized losses on Japanese national government andJapanese government agency bonds increased because interest rates on such bonds were higher at the end of March 2024 compared tothe end of March 2023. Net unrealized losses on foreign government and official institution bonds increased because interest rates in
the United States were higher at the end of March 2024 compared to the end of March 2023.
The amortized cost of available-for-sale debt securities decreased 12.0% mainly due to a 11.0% decrease in Japanese national
government and Japanese government agency bonds and a 61.9% decrease in Japanese prefectural and municipal bonds because wesold down these bonds in the rising interest rate environment in Japan.
The amortized cost of held-to-maturity debt securities increased 15.4% mainly due to a 9.6% increase in Japanese national
government and Japanese government agency bonds to ¥15,191.7 billion and a 26.5% increase in residential mortgage-backed
securities to ¥4,952.1 billion. These increases were primarily due to our investment portfolio management aiming to secure net interest
income while seeking to limit the impact of unrealized losses amid the rising interest environment in Japan. Net unrealized losses on
Japanese national government and Japanese government agency bonds for the fiscal year ended March 31, 2024 were ¥92.9 billion
compared to net unrealized gains of ¥13.1 billion for the previous fiscal year. Net unrealized losses on residential mortgage-backed
securities for the fiscal year ended March 31, 2024 were ¥176.4 billion compared to ¥92.1 billion of net unrealized losses for theprevious fiscal year.
Equity Securities

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As of March 31,

2023

2024

% Change(in billions, except percentages)

Marketable equity securities¥
Nonmarketable equity securities:
Unlisted preferred securities(1)Other(2)Investment securities held by investment companies and brokers anddealers(3)Total¥

4,463.6¥

5,472.2

22.6 %

81.9
380.7

94.8
479.0

15.8
25.8

74.8
5,001.0

86.1
6,132.1

15.2
22.6 %¥

Notes:(1) These securities are mainly issued by public companies, including preferred stocks issued by Morgan Stanley, and other unlisted preferred securities issued byseveral public companies. Those securities are primarily carried at cost.
(2) These securities are equity securities issued by unlisted companies other than unlisted preferred securities. Those securities are primarily carried at cost.
(3) These investment securities are held by certain subsidiaries subject to specialized industry accounting principles for investment companies and brokers anddealers, and are measured at fair value.

Equity securities increased 22.6% mainly because marketable equity securities increased due to higher stock prices in Japan at
the end of March 2024, compared to the end of March 2023. Marketable equity securities largely consist of listed equity securities inJapan.
Cash and Due from Banks, and Interest-earning Deposits in Other Banks
Cash and due from banks decreased ¥55,659.1 billion to ¥4,391.5 billion as of March 31, 2024 from ¥60,050.6 billion as ofMarch 31, 2023. This decrease was primarily because of the change in the interest rate applied to certain specified portion of thedeposits with the Bank of Japan from zero percent to positive 0.1 percent pursuant to the Amendment to Principal Terms andConditions of Complementary Deposit Facility released by the Bank of Japan in March 2024.
Interest-earning deposits in other banks increased ¥51,641.8 billion to ¥105,631.7 billion as of March 31, 2024 from ¥53,989.9 billion
as of March 31, 2023. This increase was mainly because of the change in the interest rate applied to certain specified portion of thedeposits with the Bank of Japan from zero percent to positive 0.1 percent pursuant to the Amendment to Principal Terms andConditions of Complementary Deposit Facility released by the Bank of Japan in March 2024.

Receivables under Resale Agreements
Receivables under resale agreements increased ¥4,436.5 billion to ¥18,495.5 billion as of March 31, 2024 from
¥14,059.0 billion as of March 31, 2023. This increase was mainly because of increased transaction volumes in our foreign securities
subsidiaries.
Receivables under Securities Borrowing Transactions
Receivables under securities borrowing transactions increased ¥445.3 billion to ¥5,001.0 billion as of March 31, 2024 from
¥4,555.7 billion as of March 31, 2023. This increase was mainly due to the depreciation of the Japanese yen against the U.S. dollar
and other major currencies.
Trading Account Assets
Trading account assets increased ¥3,577.5 billion to ¥49,746.0 billion as of March 31, 2024 from ¥46,168.5 billion as of March
31, 2023. Trading account assets mainly consist of trading account securities and trading derivative assets. Trading account securities
increased ¥1,138.2 billion to ¥34,391.1 billion as of March 31, 2024 from ¥33,252.9 billion as of March 31, 2023 mainly because ofincreased transaction volumes in our securities subsidiaries. Trading derivative assets increased ¥2,421.6 billion to ¥15,323.3 billion asof March 31, 2024 from ¥12,901.7 billion as of March 31, 2023 mainly due to increased trading on volatile interest rate fluctuations inand outside of Japan.
Total Liabilities
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As of March 31, 2024, total liabilities were ¥378,959.2 billion, an increase of ¥13,689.6 billion from ¥365,269.6 billion as ofMarch 31, 2023. This was primarily due to a ¥11,140.6 billion increase in total deposits.
Deposits
Deposits are our primary source of funds. The balance of deposits increased ¥11,140.6 billion to ¥246,417.4 billion as ofMarch 31, 2024 from ¥235,276.8 billion as of March 31, 2023. The increase was mainly because of an increase in foreign interestbearing deposits, including such deposits in the United States and other regions, both on a local currency basis and as translated into
Japanese yen.
The total average balance of interest-bearing deposits increased ¥5,767.9 billion to ¥204,601.9 billion for the fiscal year ended
March 31, 2024 from ¥198,834.0 billion for the fiscal year ended March 31, 2023. The increase was mainly because of an increase indomestic interest-bearing deposits.
Payables under Repurchase Agreements
Payables under repurchase agreements decreased ¥4,421.7 billion to ¥35,710.8 billion as of March 31, 2024 from¥40,132.5 billion as of March 31, 2023. This decrease was mainly because of our funding strategy adjustments.
Other Short-Term Borrowings
Other short-term borrowings increased ¥2,699.5 billion to ¥11,137.5 billion as of March 31, 2024 from ¥8,438.0 billion as ofMarch 31, 2023. This increase was mainly due to our increased issuance of commercial paper in foreign markets and an increase inborrowings from the Bank of Japan
Trading Account Liabilities
Trading account liabilities increased ¥2,408.9 billion to ¥16,587.2 billion as of March 31, 2024 from ¥14,178.3 billion as ofMarch 31, 2023. This increase was mainly due to the impact of unrealized losses on interest swaps in our securities subsidiaries.
Long-term Debt
Long-term debt increased ¥850.5 billion to ¥39,922.3 billion as of March 31, 2024 from ¥39,071.8 billion as of March 31, 2023.
This increase was mainly due to an increase in subordinated bonds.
The average balance of long-term debt for the fiscal year ended March 31, 2024 was ¥38,981.7 billion, an increase of ¥2,478.4
billion from ¥36,503.3 billion for the previous fiscal year.
Sources of Funding and Liquidity
Our primary source of liquidity is from a large balance of deposits, mainly ordinary deposits, certificates of deposit and time
deposits. Time deposits have historically shown a high rollover rate among our corporate customers and individual depositors. The
average deposit balance increased to ¥242,937.0 billion for the fiscal year ended March 31, 2024 from ¥235,852.1 billion for the fiscal
year ended March 31, 2023. These deposits provide us with a sizable source of stable and low-cost funds. Our average deposits
combined with our average total equity of ¥19,306.4 billion, funded 65.1% of our average total assets of ¥402,894.8 billion during the
fiscal year ended March 31, 2024. Our deposits exceeded our loans before allowance for credit losses by ¥118,480.9 billion as ofMarch 31, 2024 compared to ¥115,321.3 billion as of March 31, 2023. As part of our asset and liability management policy, asignificant portion of the amount of Japanese yen-denominated funds exceeding our loans has been deposited with the Bank of Japanor invested in Japanese government bonds in recent periods.
The remaining funding was primarily provided by short-term borrowings and long-term senior and subordinated debt. Shortterm borrowings consist of call money, funds purchased, payables under repurchase agreements, payables under securities lendingtransactions, due to trust account, and other short-term borrowings. From time to time, we have issued long-term instruments,
including various fixed and floating interest rate senior and subordinated bonds with and without maturities. The average balance ofshort-term borrowings for the fiscal year ended March 31, 2024 was ¥49,779.5 billion. The average balance of long-term debt for the
fiscal year ended March 31, 2024 was ¥38,981.7 billion. Liquidity may also be provided by the sale of financial assets, including
available-for-sale debt securities, marketable equity securities, trading account securities and loans. Additional liquidity may beprovided by the maturity of loans.
86Table of Contents
Our liquidity may be impaired by factors such as an inability to raise funding in financial markets, an increase in our funding
costs, unexpected increases in cash or collateral requirements, an inability to sell assets or enter into or settle other transactions asplanned or needed, and an inability to attract or retain deposits. See “Item 3.D. Key Information—Risk Factors—Funding Liquidity
Risk—Deterioration in market liquidity or other external circumstances or an actual or perceived decline in our creditworthiness could
negatively affect our ability to access and maintain liquidity.”
We manage our group-wide liquidity on a consolidated basis based on the tests and analyses conducted at the subsidiary level.
Our major banking subsidiaries, MUFG Bank and Mitsubishi UFJ Trust and Banking, set liquidity and funding limits designed tomaintain their respective requirements for funding from market sources below pre-determined levels for certain periods (e.g., one-day,
two-week and one-month). They also monitor the balance of buffer assets they respectively hold, including Japanese government
bonds and U.S. Treasury bonds, which can be used for cash funding even in periods of stress. In addition, they regularly perform
liquidity stress testing designed to evaluate the impact of systemic market stress conditions and institution-specific stress events,
including credit rating downgrades, on their liquidity positions.
We collect and evaluate the results of the stress tests individually performed by our major subsidiaries to ensure our ability tomeet our liquidity requirements on a consolidated basis in stress scenarios.
We manage our funding sources by setting limits on, or targets for, our holdings of buffer assets, primarily Japanese government
bonds. We also regard deposits with the Bank of Japan as buffer assets. In addition, our commercial banking subsidiaries manage theirfunding sources through liquidity-supplying products such as commitment lines and through a liquidity gap, or the excess of cash
inflows over cash outflows.
For information on our commitments, guarantees and other off-balance sheet credit instruments, please see Note 24 to ourconsolidated financial statements.
Liquidity Requirements for Banking Institutions in JapanWe are required to calculate and disclose our LCR calculated in accordance with the methodology prescribed in the FSA
guidance that has been adopted to implement the relevant Basel III standard. Starting in calendar year 2019, we are required tomaintain a minimum LCR of 100%. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Liquidity Coverage Ratio” and “—Capital Adequacy—Liquidity Coverage Ratios of MUFG and Major Banking
Subsidiaries in Japan” below.
Stable Funding Requirements for Banking Institutions in JapanWe are required to calculate and disclose our NSFR calculated in accordance with the methodology prescribed in the FSA
guidance that has been adopted to implement the relevant Basel III standard. Starting in September 2021, we are required to maintain aminimum NSFR of 100%. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—
Net Stable Funding Ratio” and “—Capital Adequacy—Net Stable Funding Ratios of MUFG and Major Banking Subsidiaries inJapan” below.
Total Equity

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Table of Contents
As of March 31,% Change

2023(Restated)

2022

2024

2023

2024

(in billions, except percentages)

Capital stock
Capital surplus
Retained earnings
Retained earnings appropriated for legal reserve
Unappropriated retained earnings
Accumulated other comprehensive income, net of
taxes
Treasury stock, at cost
Total Mitsubishi UFJ Financial Group
shareholders’ equity
Noncontrolling interests
Total equity
Ratio of total equity to total assets¥¥¥

2,090.3
5,327.8
8,412.2
239.6
8,172.6¥

2,090.3
4,902.2
8,409.2
239.6
8,169.6

227.0(452.2)844.2(482.6)

15,605.1¥
691.4
16,296.5¥
4.43%

15,763.3
702.8
16,466.1
4.31%

¥

¥
¥

2,090.3
4,636.1
9,312.1
239.6
9,072.5

—%
(8.0)
0.0
—
0.0

—%
(5.4)
10.7
—
11.1

2,221.3(614.1)

271.8
(6.7)

163.1
(27.3)

17,645.7
831.6
18,477.3
4.65%

1.0
1.7
1.0 %

11.9
18.3
12.2 %

See Note 1A to our consolidated financial statements for information on the restatement of our consolidated financial statements
for the fiscal year ended March 31, 2023.
Capital Adequacy
We are subject to various regulatory capital requirements promulgated by the regulatory authorities of the countries in which we
operate. Failure to meet minimum capital requirements can result in mandatory actions being taken by regulators that could have a
direct material effect on our consolidated financial statements. Moreover, if our capital ratios are perceived to be low, ourcounterparties may avoid entering into transactions with us, which in turn could negatively affect our business and operations. For
further information, see “Item 3.D. Key Information—Risk Factors—Risks Related to Our Ability to Meet Regulatory Capital
Requirements—We may not be able to maintain our capital ratios and other regulatory ratios above minimum required levels, which
could result in various regulatory actions, including the suspension of some or all of our operations.”
We continually monitor our risk-adjusted capital ratios, leverage ratio and TLAC ratios closely, and manage our operations in
consideration of the capital requirements. Factors that affect some or all of these ratios include fluctuations in the value of our assets,
including our credit risk assets such as loans and equity securities, the risk weights of which depend on the borrowers’ or issuers’internal ratings, and marketable securities, and fluctuations in the value of the Japanese yen against the U.S. dollar and other foreign
currencies, as well as general price levels of Japanese equity securities.
Capital Requirements for Banking Institutions in Japan
Under Japanese regulatory capital requirements, our consolidated capital components, including Common Equity Tier 1, Tier 1,
and Tier 2 capital and risk-weighted assets, are calculated based on our consolidated financial statements prepared under Japanese
GAAP. Each of the consolidated and stand-alone capital components and risk-weighted assets of our banking subsidiaries in Japan is
also calculated based on consolidated and non-consolidated financial statements prepared under Japanese GAAP.
As of March 31, 2024, we were required to maintain a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and acountercyclical buffer of 0.16% in addition to the 4.5% minimum Common Equity Tier 1 capital ratio. See “Item 4.B. Information on
the Company—Business Overview—Supervision and Regulation—Japan—Capital adequacy.”
For information on the issuances of Additional Tier 1 and Tier 2 securities, see also “Recent Developments—Issuances of Basel
III-Compliant Subordinated Debt.”
Leverage Requirements for Banking Institutions in Japan
Our consolidated leverage ratio is calculated in accordance with the methodology prescribed in the FSA guidance that has been
adopted to implement the relevant Basel III standard. The leverage ratio is designed for monitoring and preventing the build-up ofexcessive leverage in the banking sector and is expressed as the ratio of Tier 1 capital to total balance sheet assets adjusted inaccordance with the FSA guidance. As of March 31, 2024, we were required to maintain a minimum leverage ratio of 3.75%
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Table of Contents
consisting of the minimum requirement at 3.00% plus a leverage ratio buffer equal to 50% of the G-SIB surcharge. The minimum
leverage ratio on or after April 1, 2024 is raised to the minimum requirement at 3.15% plus a G-SIB leverage ratio buffer set at 50% of
a G-SIB surcharge plus 0.05% while deposits with the Bank of Japan remain excluded from the leverage ratio calculation. See “Item4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Leverage Ratio.”
TLAC Requirements for Banking Institutions in JapanOur External TLAC ratios are calculated in accordance with the methodology prescribed in the FSA guidance that has been
adopted to implement the TLAC Principle published by the FSB in November 2015. External TLAC ratios are expressed as the ratioof external TLAC amount to risk-weighted assets or total exposure in accordance with the FSA guidance. As of March 31, 2024, wewere required to maintain External TLAC ratios of 18% on a risk-weighted assets basis and 6.75% on a total exposure basis. The
minimum External TLAC ratio on a total exposure basis on or after April 1, 2024 is raised to 7.10% in line with the increase in theminimum leverage ratio. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—
Total loss-absorbing capacity.” For information on the issuances of TLAC-qualified securities, see also “—Recent Developments—
Issuances of TLAC Eligible Senior Debt.”
Capital Ratios, Leverage Ratio and External TLAC Ratios of MUFG
The figures underlying the amounts and ratios in the table below are calculated in accordance with Japanese banking regulations
based on information derived from our consolidated financial statements prepared in accordance with Japanese GAAP, as required by
the FSA. The amounts and ratios below are rounded down.
As of March 31,
2023

Minimum
ratios required(1)As of March 31,
2024

Minimum
ratios required(1)(in billions, except percentages)

Capital components:
Common Equity Tier 1
Additional Tier 1
Tier 1 capital
Tier 2 capital
Total capital
Risk-weighted assets
Capital ratios:
Common Equity Tier 1 capital
Tier 1 capital
Total capital
Leverage ratio(2)External TLAC ratios
Risk-weighted assets basis(3)Leverage exposure basis¥

13,280.8
1,582.8
14,863.7
2,302.3¥ 17,166.1¥ 123,363.3¥

15,041.3
2,438.4
17,479.7
2,338.1¥ 19,817.8¥ 111,160.1

10.76 %
12.04 %
13.91 %
4.70 %

8.54 %
10.04 %
12.04 %
3.75 %

13.53 %
15.72 %
17.82 %
5.19 %

8.66 %
10.16 %
12.16 %
3.75 %

20.22 %
9.47 %

18.00 %
6.75 %

25.06 %
9.65 %

18.00 %
6.75 %

Notes:(1) The minimum capital ratios required as of March 31, 2023 include a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical bufferof 0.04%. The minimum capital ratios required as of March 31, 2024 include a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and acountercyclical buffer of 0.16%.
(2) Deposits with the Bank of Japan are excluded from the leverage exposure based on notification issued by the FSA.
(3) The External TLAC ratio on a risk-weighted assets basis and the required minimum ratio as of March 31, 2023 do not include the regulatory capital buffers
consisting of a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.04%. The External TLAC ratio on a risk-weighted
assets basis and the required minimum ratio as of March 31, 2024 do not include the regulatory capital buffers consisting of a capital conservation buffer of 2.5%,
a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.16%.

Management believes that, as of March 31, 2024, we were in compliance with all capital adequacy requirements to which wewere subject.
Our Common Equity Tier 1 capital ratio as of March 31, 2024 was higher compared to the ratio as of March 31, 2023 primarily
due to a decrease in risk-weighted assets. The decrease in risk-weighted assets mainly reflected the absence of output floor
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Table of Contents
adjustments due to the revision to the output floor calibration based on the finalized Basel III reforms. See “Item 4.B. Information on
the Company—Business Overview—Supervision and Regulation—Japan—Capital adequacy.”
Capital Ratios and Leverage Ratios of Major Banking Subsidiaries in JapanThe figures underlying the rations in the table below are calculated in accordance with Japanese banking regulations based on
information derived from each bank’s consolidated and non-consolidated financial statements prepared in accordance with Japanese
GAAP, as required by the FSA. The ratios below are rounded down.
As of March 31,2023

Consolidated:
MUFG Bank
Common Equity Tier 1 capital ratio
Tier 1 capital ratio
Total capital ratio
Leverage ratio(1)Mitsubishi UFJ Trust and Banking
Common Equity Tier 1 capital ratio
Tier 1 capital ratio
Total capital ratio
Leverage ratio(1)Stand-alone:
MUFG Bank
Common Equity Tier 1 capital ratio
Tier 1 capital ratio
Total capital ratio
Leverage ratio(1)Mitsubishi UFJ Trust and Banking
Common Equity Tier 1 capital ratio
Tier 1 capital ratio
Total capital ratio
Leverage ratio(1)Minimum
ratios required

As of March 31,
2024

Minimum
ratios required

9.89 %
11.04 %
12.58 %
4.75 %

4.50 %
6.00 %
8.00 %
3.00 %

13.80 %
16.11 %
18.11 %
5.23 %

4.50 %
6.00 %
8.00 %
3.00 %

16.41 %
17.93 %
20.67 %
7.29 %

4.50 %
6.00 %
8.00 %
3.00 %

15.56 %
17.83 %
20.42 %
6.34 %

4.50 %
6.00 %
8.00 %
3.00 %

8.11 %
9.30 %
10.71 %
4.02 %

4.50 %
6.00 %
8.00 %
3.00 %

11.77 %
14.38 %
16.29 %
4.50 %

4.50 %
6.00 %
8.00 %
3.00 %

15.74 %
17.11 %
19.60 %
8.15 %

4.50 %
6.00 %
8.00 %
3.00 %

14.71 %
16.72 %
19.03 %
7.09 %

4.50 %
6.00 %
8.00 %
3.00 %

Note:(1) Deposits with the Bank of Japan are excluded from the leverage exposure based on notification issued by the FSA.

Management believes that, as of March 31, 2024, our banking subsidiaries were in compliance with all capital adequacy
requirements to which they were subject.
Liquidity Coverage Ratios of MUFG and Major Banking Subsidiaries in JapanThe LCRs in the table below are calculated in accordance with Basel III as adopted by the FSA for the periods indicated. The
figures underlying the ratios are calculated in accordance with Japanese banking regulations. The percentages below are rounded90

Table of Contents
down.
Three months ended
March 31,2023(1),(6)

MUFG (consolidated)
MUFG Bank (consolidated)
MUFG Bank (stand-alone)
Mitsubishi UFJ Trust and Banking (consolidated)
Mitsubishi UFJ Trust and Banking (stand-alone)

June 30,2023(2),(6)152.2 %
162.5 %
166.5 %
116.8 %
143.2 %

159.3 %
171.9 %
176.7 %
116.2 %
139.9 %

September 30,
2023(3),(6)159.5 %
172.2 %
176.8 %
117.8 %
142.4 %

December 31,2023(4),(6)161.8 %
172.1 %
177.1 %
125.9 %
155.6 %March 31,2024(5),(6)161.7 %
173.0 %
177.7 %
122.2 %
148.8 %

Notes:(1) Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between January 4, 2023 and March 31, 2023 divided
by the average amount of net cash outflows for the same 60 business days.
(2) Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between April 3, 2023 and June 30, 2023 divided by theaverage amount of net cash outflows for the same 62 business days.
(3) Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between July 3, 2023 and September 29, 2023 divided
by the average amount of net cash outflows for the same 62 business days.
(4) Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between October 2, 2023 and December 29, 2023
divided by the average amount of net cash outflows for the same 62 business days.
(5) Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between January 4, 2024 and March 29, 2024 divided
by the average amount of net cash outflows for the same 58 business days.
(6) The LCR is to be calculated as an average based on daily values in accordance with the Japanese banking regulations.

See “—B. Liquidity and Capital Resources—Sources of Funding and Liquidity.”
Net Stable Funding Ratios of MUFG and Major Banking Subsidiaries in JapanThe NSFRs in the table below are calculated in accordance with Basel III as adopted by the FSA as of the date indicated. The
figures underlying the ratios are calculated in accordance with Japanese banking regulations. The percentages below are rounded
down.
As of
March 31,2023

MUFG (consolidated)
MUFG Bank (consolidated)
MUFG Bank (stand-alone)
Mitsubishi UFJ Trust and Banking (consolidated)
Mitsubishi UFJ Trust and Banking (stand-alone)

As ofJune 30,2023

132.8 %
146.2 %
148.2 %
128.1 %
130.7 %

127.6 %
140.5 %
141.1 %
118.0 %
119.5 %

As of
September 30,
2023

119.2 %
132.8 %
134.6 %
121.3 %
121.6 %

As ofDecember 31,
2023

120.2 %
133.6 %
136.8 %
123.3 %
126.4 %

As ofMarch 31,2024

114.8 %
126.1 %
127.7 %
121.1 %
121.9 %

See “—B. Liquidity and Capital Resources—Sources of Funding and Liquidity.”
Capital Requirements for Securities Firms in Japan and Overseas
We have securities subsidiaries in Japan and overseas, which are also subject to regulatory capital requirements. In Japan, theFinancial Instruments and Exchange Act of Japan and related ordinances require financial instruments firms to maintain a minimum
capital ratio of 120% calculated as a percentage of capital accounts less certain fixed assets, as determined in accordance withJapanese GAAP, against amounts equivalent to market, counterparty credit and operational risks. Specific guidelines are issued as aministerial ordinance which details the definitions of essential components of the capital ratios, including capital, deductible fixed
asset items and risks, and related measures. Failure to maintain a minimum capital ratio will trigger mandatory regulatory actions. A
capital ratio of less than 140% will call for additional regulatory reporting, a capital ratio of less than 120% may result in an order tochange the method of business, and a capital ratio of less than 100% may lead to a suspension of all or part of the business for a periodof time and cancellation of a registration. Overseas securities subsidiaries are subject to the relevant regulatory capital requirements ofthe countries or jurisdictions in which they operate.
Capital Ratio of Mitsubishi UFJ Morgan Stanley Securities

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Table of Contents
As of March 31, 2024, Mitsubishi UFJ Morgan Stanley Securities’ capital accounts less certain fixed assets of ¥537.3 billion
represented 305.2% of the total amounts equivalent to market, counterparty credit and operational risks. As of March 31, 2023,
Mitsubishi UFJ Morgan Stanley Securities’ capital accounts less certain fixed assets of ¥550.3 billion represented 310.9% of the total
amounts equivalent to market, counterparty credit and operational risks. These figures are calculated in accordance with Japanese
GAAP, pursuant to the Financial Instruments and Exchange Act of Japan.
For further information, see Note 21 to our consolidated financial statements.
Non-exchange Traded Contracts Accounted for at Fair Value
The use of non-exchange traded or over-the-counter contracts provides us with the ability to adapt to the varied requirements ofa wide customer base while mitigating market risks. Non-exchange traded contracts are accounted for at fair value, which is generally
based on pricing models or quoted prices for instruments with similar characteristics. Gains or losses on non-exchange traded
contracts are included in “Trading account losses—net” in our consolidated statements of operations.
Fiscal years ended March 31,
2023

2024
(in millions)

Net fair value of contracts outstanding at beginning of fiscal year
Changes attributable to contracts realized or otherwise settled during the fiscal year
Fair value of new contracts entered into during the fiscal year
Changes in fair values attributable to changes in valuation techniques and assumptions
Other changes in fair value, principally revaluation at end of fiscal year
Net fair value of contracts outstanding at end of fiscal year¥(14) ¥

448

¥

(46)
358
153
(3)
448 ¥

(373)
339
(128)
8
294

Maturities of Non-exchange Traded Contracts
As of March 31, 2024
Net fair value of contracts—unrealized gains
Prices provided byother external sources

Prices based on models andother valuation methods(in millions)

Maturity less than 1 year
Maturity less than 3 years
Maturity less than 5 years
Maturity 5 years or more
Total fair value
C.

¥

¥

—
—
—
—
—

¥

¥

—
—
339
(45)
294

Research and Development, Patents and Licenses, etc.
Not applicable.

D.

Trend Information

See the discussions in “—Business Environment,” “—Recent Developments,” “—A. Operating Results” and “—B. Liquidity
and Capital Resources.”
E. Critical Accounting Estimates
Our consolidated financial statements are prepared in accordance with U.S. GAAP. Certain accounting policies require
management to make difficult, complex or subjective judgments regarding the valuation of assets and liabilities. The accounting
policies are fundamental to understanding our operating and financial review and prospects. The notes to our consolidated financial
statements provide a summary of our significant accounting policies. The following is a summary of the critical accounting estimates:
Allowance for Credit Losses
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The allowance for credit losses represents an estimate of the credit losses that are expected over the life of the financial
instrument or exposure and has three components: the allowance for loans measured on a collective basis, when similar risk
characteristics exist, the allowance for loans measured on an individual basis, for loans that do not share similar risk characteristics,
and the allowance for losses on unfunded credit commitments, which is included in other liabilities.
The methodology for estimating credit losses uses relevant available information relating to past events, current conditions, andreasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses.
Adjustments to historical loss information are made over a forecast period to account for differences between current and expected
future conditions and those reflected in historical loss information. Beyond the forecast period, estimated expected credit losses revert
to average historical loss experience. The estimation of the allowance for credit losses involves significant judgment on a number ofassumptions including the assessment of risk characteristics, assignment of a borrower’s internal credit rating, valuation of collateral,
expectations of future economic conditions and the development of qualitative adjustments. We divide our loan portfolio into thefollowing segments—Commercial, Residential, Card, Krungsri, and Other—and determine the allowance for credit losses for eachsegment.
On March 31, 2024, we had ¥104,851.5 billion and ¥8,832.9 billion of loans in the Commercial and Krungsri segments,
respectively, and recorded an allowance for credit losses against these loans of ¥745.5 billion and ¥414.4 billion, respectively.
The allowance for credit losses is estimated using quantitative models that incorporate economic forecast scenarios. These
economic forecast scenarios include macroeconomic variables that have historically been correlated with historical credit losses. Thesevariables include, but are not limited to, unemployment rates and gross domestic product. As any one economic forecast scenario isinherently uncertain, multiple economic forecast scenarios were leveraged. The macroeconomic variables in multiple economic
forecast scenarios and weightings given to each scenario depend on a variety of factors including recent economic conditions andviews of internal as well as third-party economists.
The determination of the allowance for credit losses for the Commercial and Krungsri segments required management to makesignificant judgements due to the subjectivity and uncertainty associated with expectations of future economic conditions. Particularly
significant judgment was required to be made to determine certain macroeconomic variables in the multiple economic forecast
scenarios and the weightings given to each scenario, to capture the heightened volatility and uncertainty primarily due to changes in
global economic conditions, inflation, monetary policies, and geopolitical situations.
The allowance for credit losses includes qualitative adjustments to cover losses that are expected but were not reflected in themodeled allowance. The determination of the allowance for credit losses for the Commercial and Krungsri segments required
management to make significant judgements due to the subjectivity and uncertainty associated with the development of qualitative
adjustments. Particularly significant judgment was required to be made to develop certain qualitative adjustments to capture the effects
on modelled expected credit losses primarily arising from changes in global economic conditions, inflation, monetary policies, andgeopolitical situations for the Commercial segment, and the inflation and temporary relief measures for the Krungsri segment.
The determination of the allowance for credit losses for the Commercial segment required management to make significant
judgements, due to the subjectivity and uncertainty associated with the determination of a borrower’s internal credit rating, which werehighly dependent on the estimation of a borrower’s performance and business sustainability, particularly in cases in which borrowers
were experiencing weaknesses in their business performance. Particularly significant judgment was required to be made when theseborrowers’ performance and business sustainability were affected by changes in the external and internal business environment,
including changes in global economic conditions, inflation, monetary policies, and geopolitical situations. Key elements relating to thepolicies and discipline used in determining the allowance for credit losses for the Commercial segment are our credit classification andthe related borrower categorization process. Each of these components is determined based on estimates subject to change when actual
events occur. The categorization is based on conditions that may affect the ability of borrowers to service their debt, taking into
consideration current financial information, historical payment experience, credit documentation, public information, analyses of
relevant industry segments and current trends. In determining the appropriate level of allowance, we evaluate the probable loss by
category of the loan based on its type and characteristics.
Determining the adequacy of the allowance for credit losses requires the exercise of considerable judgment and the use of
estimates, such as those discussed above. Our actual losses could be more or less than the estimates. To the extent that actual losses
differ from management’s estimates, additional provisions for credit losses may be required that would adversely impact our operating
results and financial condition in future periods. For further information regarding our methodologies used in establishing theallowance for credit losses by portfolio segment and allowance for credit losses policies, see Note 1 to our consolidated financial
statements and “—B. Liquidity and Capital Resources—Financial Condition—Loan Portfolio.” For more information on our credit
and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Credit Risk
Management.”
Goodwill
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As part of our global strategies, we have executed multiple large-scale acquisitions, investments and capital alliances, andrecorded goodwill resulting from these business combinations. U.S. GAAP requires us to test goodwill for impairment at least
annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired, using a process thatcompares the carrying amount of a reporting unit with its fair value. An impairment loss is recognized to the extent that the carrying
amount of a reporting unit exceeds its fair value, but not exceeding the total amount of goodwill allocated to that reporting unit. A
reporting unit is an operating segment or component of an operating segment that constitutes a business for which discrete financial
information is available and is regularly reviewed by management. The fair value of a reporting unit is defined as the amount at which
the unit as a whole could be bought or sold in a current transaction between willing parties. Our consolidated goodwill balance was¥490.3 billion on March 31, 2024, which was allocated to our reporting units in the Digital Service Business Group, Global Corporate& Investment Banking Business Group, Global Commercial Banking Business Group, Asset Management & Investor Services
Business Group and Global Markets Business Group. For a reporting unit for which an observable quoted price is not available, we
determined the fair value of each reporting unit mainly using the income approach. The income approach determined the fair value ofthe reporting units by discounting management’s projections of each reporting unit’s cash flows, including a terminal value to estimate
the fair value of cash flows beyond the final year of projected results, using a discount rate derived from the capital asset pricing
model.
The determination of the fair value of these reporting units requires management to make significant judgments related tosignificant assumptions due to the subjectivity and uncertainty associated with the assumptions. The significant assumptions included
projected future operating cash flows based on forecasted future income in the income approach.
Valuation of Financial Instruments
We measure certain financial assets and liabilities at fair value. The majority of such assets and liabilities are measured at fairvalue on a recurring basis, including trading securities, trading derivatives and investment securities. In addition, certain other assets
and liabilities are measured at fair value on a non-recurring basis, including held for sale loans which are carried at the lower of cost or
fair value, collateral dependent loans and nonmarketable equity securities subject to impairment.
We have elected the fair value option for certain foreign securities classified as available-for-sale debt securities, whose
unrealized gains and losses are reported in income, and marketable equity securities.
The guidance on the measurement of fair value defines fair value as the price that would be received to sell an asset or paid totransfer a liability in an orderly transaction between market participants at the measurement date. We have an established anddocumented process for determining fair value in accordance with the guidance. To determine the fair value, we use quoted prices
which include those provided from pricing vendors, where available. We generally obtain one price or quote per instrument and do not
adjust it to determine the fair value of the instrument. We perform internal price verification procedures to ensure that the prices andquotes provided from the independent pricing vendors are reasonable. Such verification procedures include a comparison of pricing
sources and analysis of variances among pricing sources. These verification procedures are periodically performed by independent risk
management departments. For collateralized loan obligations, or CLOs, backed by general corporate loans, the fair value is determinedby weighting the internal model valuation and the non-binding broker-dealer quotes. If quoted prices are not available to determine thefair value of derivatives, the fair value is based upon valuation techniques that use, where possible, current market-based or
independently sourced parameters, such as interest rates, yield curves, foreign exchange rates, volatilities and credit curves. For loans
held for sale, which are carried at the lower of cost or fair value, the fair value is based on secondary market prices, recent transactions
or discounted cash flows. When borrowers were experiencing weakness in their business performance, and the market credit
information of those borrowers was limited, there was a particularly high degree of uncertainty necessitating subjective judgments to
be made by management to determine the valuation of loans held for sale. The fair values of trading liabilities are determined bydiscounting future cash flows at a rate which incorporates our own creditworthiness. In addition, valuation adjustments may be madeto ensure that the financial instruments are recorded at fair value. These adjustments include, but are not limited to, amounts thatreflect counterparty credit quality, funding cost, liquidity risk, and model risk. Our financial models are validated and periodicallyreviewed by risk management departments independent of divisions that created the models.
For a further discussion of the valuation techniques applied to the material assets or liabilities, see Note 31 to our consolidated
financial statements.

Accounting Changes and Recently Issued Accounting Pronouncements
See “Accounting Changes” and “Recently Issued Accounting Pronouncements” in Note 1 to our consolidated financial
statements.
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Item 6.
A.

Directors, Senior Management and Employees.

Directors and Senior Management

Members of the Board of Directors
The following table sets forth the members of our board of directors as of June 27, 2024, together with their respective dates ofbirth, positions and experience:
Name(Date of Birth)

Mariko Fujii(March 9, 1955)

Position in MUFG

Member of the Boardof Directors(Outside Director)

Business Experience

April 1977
July 1997

Joined Ministry of Finance of Japan
Director, International Affairs and Research Division,
Customs and Tariff Bureau, Ministry of Finance
Associate Professor, Research Center for Advanced
Science and Technology, The University of Tokyo
Professor, Research Center for Advanced Economic
Engineering, The University of Tokyo
Professor, Research Center for Advanced Science andTechnology, National University Corporation, The
University of Tokyo

April 1999
March 2001
April 2004

June 2014
October 2015
June 2016
January 2019
June 2019

Outside Director of Electric Power Development Co., Ltd.
Ambassador Extraordinary and Plenipotentiary of Japan to
the Republic of Latvia
Emeritus Professor of The University of Tokyo(incumbent)
Retired from Ambassador of Japan to the Republic of
LatviaOutside Director of NTT DATA CORPORATION(currently NTT DATA GROUP CORPORATION)(incumbent)
Member of the Board of Directors (Outside Director) of
MUFG (incumbent)

Keiko Honda(September 27, 1961)

Member of the Boardof Directors(Outside Director)

April 1984
May 1986
July 1989
July 1999
July 2007
July 2013
June 2014
October 2019
January 2020

March 2020
June 2020

Joined Bain & Company Japan, Incorporated
Joined Shearson Lehman Brothers Securities Co., Ltd.
Joined McKinsey & Company, Inc. Japan
Partner of McKinsey & Company
Director (Senior Partner) of McKinsey & Company
Executive Vice President of Multilateral Investment
Guarantee Agency (World Bank Group)
Executive Vice President & CEO of Multilateral
Investment Guarantee Agency (World Bank Group)
Retired from Multilateral Investment Guarantee Agency(World Bank Group)
Adjunct Professor and Adjunct Senior Research Scholar of
Columbia University School of International and Public
Affairs (incumbent)
Outside Director of AGC Inc. (incumbent)
Member of the Board of Directors (Outside Director) of
MUFG (incumbent)
Outside Director of the Board of Recruit Holdings Co., Ltd.
(incumbent)

June 2022

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Name(Date of Birth)

Kaoru Kato(May 20, 1951)

Position in MUFG

Member of the Boardof Directors(Outside Director)

Business Experience

April 1977

Joined Nippon Telegraph and Telephone Public
Corporation (NTT)General Manager of Plant Department of NTT Kansai
Mobile Communications Network, Inc.
General Manager of Plant Department of NTT DoCoMo
Kansai, Inc.
General Manager of Corporate Strategy and Planning
Department, Member of the Board of Directors of NTT
DoCoMo Kansai, Inc.

July 1999
April 2000
June 2002

July 2005

Representative Director and Senior Corporate Executive
Officer of Sumitomo Mitsui Card Co., Ltd.
Executive Vice President, General Manager of Corporate
Strategy and Planning Department, Member of the Boardof Directors of NTT DoCoMo Kansai, Inc.

July 2007

June 2008

Executive Vice President, General Manager of Corporate
Strategy and Planning Department, Member of the Boardof Directors of NTT DOCOMO, INC.

June 2012

President and Chief Executive Officer, Member of theBoard of Directors of NTT DOCOMO, INC.
Corporate Advisor, Member of the Board of Directors of
NTT DOCOMO, INC.
Corporate Advisor of NTT DOCOMO, INC.
Member of the Board of Directors (Outside Director) of
MUFG (incumbent)
Non-executive Director of Kirin Holdings Company,
LimitedSenior Advisor of NTT DOCOMO, INC.

June 2016
June 2018
June 2019
March 2021
June 2022
Satoko Kuwabara(November 1, 1964)

Member of the Boardof Directors(Outside Director)

April 1990

January 1998
June 2016
March 2020
April 2020
June 2020
June 2021
June 2023

97

Registered as an attorney at law, Member of the Daini
Tokyo Bar Association
Joined Mori Sogo (currently Mori Hamada & Matsumoto)Partner of Mori Hamada & Matsumoto
Outside Director of Bandai Namco Holdings Inc.
(incumbent)
Outside Auditor of Unicafe Inc. (incumbent)
Partner of Gaien Partners (incumbent)
Outside Audit and Supervisory Board Member of Nippon
Yusen Kabushiki Kaisha
Member of the Board of Director (Outside Director) of
MUFG (incumbent)
Outside Director of Nippon Yusen Kabushiki Kaisha(incumbent)

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Name(Date of Birth)

Hirofumi Nomoto(September 27, 1947)

Position in MUFG

Member of the Boardof Directors(Outside Director)

Business Experience

April 1971
April 2003
April 2004
June 2007

January 2008
June 2008
April 2010

June 2010

Senior Managing Director & Representative Director of
TOKYU CORPORATION
President & Representative Director of TOKYUCORPORATION
Chairman & Representative Director of TOKYUCORPORATION (incumbent)
President & CEO of THREE HUNDRED CLUB CO.,LTD. (incumbent)
Member of the Board of Directors (Outside Director) of
MUFG (incumbent)

April 2011
April 2018
June 2019

Mari Elka Pangestu(October 23, 1956)

Member of the Boardof Directors(Outside Director)

Joined TOKYU CORPORATION
Executive General Manager of Media Business
Headquarters of TOKYU CORPORATION
President & Representative Director of its communications
Inc.
Director of TOKYU CORPORATION
Executive Officer of Real Estate Development Business
Unit of TOKYU CORPORATIONManaging Director of TOKYU CORPORATION
Senior Managing Director of TOKYU CORPORATION
Executive Officer & Senior Executive General Manager ofUrban Life Produce Business Unit of TOKYUCORPORATION

August 1986

Joined Centre for Strategic and International Studies
Indonesia
Research Coordinator, Program for Financial Policy andTraining of Ministry of Finance, the Republic ofIndonesia

July 1987

November
1991
January 1997
October 2004
October 2011
March 2015
March 2020
July 2023
June 2024

98

Deputy Director of Inter University Center, Economics,
University of Indonesia
Program Coordinator for Trade Policy Forum, Pacific
Economy Cooperation Council
Executive Director of Centre for Strategic and International
Studies Indonesia
Minister of Trade of the Republic of Indonesia
Minister of Tourism and Creative Economy of the Republicof Indonesia
Professor of International Economics, University ofIndonesia
Managing Director of Development Policy andPartnerships, the World Bank
Independent Non-executive Director of AIA Group Limited(incumbent)
Member of the Board of Directors (Outside Director) of
MUFG (incumbent)

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Name(Date of Birth)

Hiroshi Shimizu(January 30, 1961)

Position in MUFG

Member of the Boardof Directors(Outside Director)

Business Experience

April 1983
March 2009

Joined Nippon Life Insurance Company
Executive Officer, General Manager, Corporate Planning
Department of Nippon Life Insurance Company
Managing Executive Officer, General Manager, Corporate
Planning Department of Nippon Life Insurance
Company

March 2012

July 2013

Director and Managing Executive Officer of Nippon Life
Insurance Company
Director and Managing Executive Officer, General
Manager, Head Office 1st Corporate Marketing Dept.,
Head Office 3rd Corporate Marketing Dept., Head
Office East Japan Corporate Marketing Dept. of Nippon
Life Insurance Company
Managing Executive Officer of Nippon Life Insurance
Company
Senior Managing Executive Officer of Nippon Life
Insurance Company
Director and Senior Managing Executive Officer of Nippon
Life Insurance Company
President of Nippon Life Insurance Company
Outside Director of FUJI KYUKO CO., LTD. (incumbent)
Independent Outside Director of TOKYUCORPORATION (incumbent)
Member of the Board of Directors (Outside Director) of
MUFG (incumbent)

March 2014

July 2014
March 2016
July 2016
April 2018
June 2021

June 2024
David Sneider(July 25, 1957)

Member of the Boardof Directors(Outside Director)

December 1984 Associate of Paul, Weiss, Rifkind, Wharton & Garrison
LLP
June 1985
Registered as an attorney at law, admitted in States of New
York in the United States
July 1987
Director and Counsel of Legal Department, Salomon
Brothers Inc.
February 1992 Associate of Simpson Thacher & Bartlett LLP
January 1994
Partner of Simpson Thacher & Bartlett LLP
June 2022
Outside Director of PHC Holdings Corporation(incumbent)
June 2023
Member of the Board of Directors (Outside Director) of
MUFG (incumbent)

Koichi Tsuji(April 10, 1957)

Member of the Boardof Directors(Outside Director)

October 1984
September
1988
February 1989
July 2004
February 2016
July 2019
June 2021
June 2023

99

Joined Peat Marwick Mitchell & Company
Registered as Certified Public Accountant in Japan
Resident Representative, Zurich, Switzerland
Senior Partner of Ernst & Young ShinNihon LLC
Chairman and CEO of Ernst & Young ShinNihon LLC
Chairman & CEO of EY Japan Godo Kaisha
Member of the Board of Directors of EY Japan Co., Ltd.
Member of the Board of Directors (Outside Director) of
MUFG (incumbent)
Outside Statutory Auditor of TEIJIN LIMITED(incumbent)
Outside Director of MARUICHI STEEL TUBE LTD.
(incumbent)

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Name(Date of Birth)

Kenichi Miyanaga(February 25, 1960)

Position in MUFG

Member of the Boardof Directors

Ryoichi Shinke(December 8, 1965)

Member of the Boardof Directors

Kanetsugu Mike
(November 4, 1956)

Member of the Boardof Directors
Chairman(Corporate Executive)

Business Experience

April 1982
June 2009
June 2013
June 2016
June 2017

Joined The Toyo Trust and Banking Company, Limited
Executive Officer of TB
Director and Managing Executive Officer of TB
Senior Managing Executive Officer of TB
Director, Deputy President, and Executive Officer of TB
Managing Executive Officer of MUFG
Member of the Board of Directors of MUFG (incumbent)
Joined The Sanwa Bank, Limited
Executive Officer of BKManaging Executive Officer of BKManaging Executive Officer of MUFG
Senior Managing Executive Officer of BKMember of the Board of Directors of MUFG (incumbent)

June 2021
April 1988
June 2014
May 2018
May 2020
April 2022
June 2023
April 1979
June 2005

May 2009
May 2011
June 2011
May 2013
October 2015
May 2016
June 2016
June 2017

April 2019
April 2020
April 2021

100

Joined The Mitsubishi Bank, Limited
Executive Officer of The Bank of Tokyo-Mitsubishi, Ltd.
Executive Officer of Mitsubishi Tokyo Financial Group,
Inc.
Managing Executive Officer of BKManaging Executive Officer of MUFG
Member of the Board of Directors, Managing Executive
Officer of BK
Senior Managing Executive Officer of BK
Executive Chairman of MUAH
Executive Chairman of MUFG Union Bank, N.A.
Deputy President and Executive Officer of BK
Senior Managing Corporate Executive of MUFG
Member of the Board of Directors, Deputy President of BK
President & CEO of BKMember of the Board of Directors, Deputy Chairman of
MUFG
Member of the Board of Directors, President & Group CEOof MUFG
Member of the Board of Directors, Deputy Chairman of
MUFG
Member of the Board of Directors, Chairman of MUFG
(incumbent)

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Name(Date of Birth)

Position in MUFG

Business Experience

Hironori Kamezawa(November 18, 1961)

Member of the Boardof Directors
President & GroupCEO(Representative
Corporate
Executive)

April 1986
June 2010

Joined The Mitsubishi Bank, Limited
Executive Officer of BK
Executive Officer of MUFG
May 2014
Managing Executive Officer of BKManaging Executive Officer of MUFG
May 2017
Managing Corporate Executive of MUFG
June 2017
Member of the Board of Directors, Managing Executive
Officer of BK
May 2018
Member of the Board of Directors, Senior Managing
Executive Officer of BK
Senior Managing Corporate Executive of MUFG
December 2018 CEO and Representative of the Board of Directors of
Global Open Network, Inc.
April 2019
Deputy President of MUFG
Member of the Board of Directors, Deputy President of BK
CEO and Representative of the Board of Directors of
Global Open Network Japan, Inc.
June 2019
Member of the Board of Directors, Deputy President of
MUFG
August 2019
Chairman of Global Open Network Japan, Inc.
April 2020
Member of the Board of Directors of BK (incumbent)
Member of the Board of Directors, President & Group CEOof MUFG (incumbent)
May 2021
Director of Morgan Stanley (incumbent)

Iwao Nagashima(March 15, 1963)

Member of the Boardof Directors

April 1985
June 2011
June 2013

Joined The Mitsubishi Trust and Banking Corporation
Executive Officer of TB
Managing Executive Officer of TB
Executive Officer of MUFG
Director and Managing Executive Officer of TB
Managing Executive Officer of MUFG
Director and Senior Managing Executive Officer of TB
Director, Deputy President, and Executive Officer of TB
Senior Managing Corporate Executive of MUFG
President & CEO of MU Trust Apple Planning Company,
Ltd.
President and CEO of TB (incumbent)
Deputy Chairman of MUFG
Member of the Board of Directors, Deputy Chairman of
MUFG
Member of the Board of Directors of MUFG (incumbent)

June 2015
June 2016
April 2019

April 2020
June 2020
April 2022

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Name(Date of Birth)

Junichi Hanzawa(January 19, 1965)

Position in MUFG

Member of the Boardof Directors

Business Experience

April 1988
June 2014

Joined The Mitsubishi Bank, Limited
Executive Officer of BK
Executive Officer of MUFG
Managing Executive Officer of BKManaging Corporate Executive of MUFG
Member of the Board of Directors, Managing Executive
Officer of BK
President & CEO of BK (incumbent)
Deputy Chairman of MUFG
Member of the Board of Directors, Deputy Chairman of
MUFG
Member of the Board of Directors of MUFG (incumbent)

May 2018
April 2019
June 2019
April 2021
June 2021
April 2022
Makoto Kobayashi(February 22, 1962)

Member of the Boardof Directors

April 1985
June 2011
May 2015
July 2015
July 2018
October 2018
April 2020
June 2020
June 2021
April 2022
June 2022

Notes:

Joined The Mitsubishi Bank, Limited
Executive Officer of BKManaging Executive Officer of BK
Executive Officer of MUFG
Managing Executive Officer of SCHDManaging Executive Officer of MUFG
Managing Executive Officer of TB
Senior Managing Executive Officer of SCHD
Deputy President of MUMSS
Member of the Board of Directors, Senior Managing
Executive Officer of SCHD
Member of the Board of Directors, Deputy President of
MUMSS
President & Global CEO of SCHD (incumbent)
President & CEO of MUMSS (incumbent)
Member of the Board of Directors of MUFG (incumbent)

The following abbreviations are used in the table above:“BK” refers to MUFG Bank, Ltd. or its former name The Bank of Tokyo-Mitsubishi UFJ, Ltd.
“TB” refers to Mitsubishi UFJ Trust and Banking Corporation.
“SCHD” refers to Mitsubishi UFJ Securities Holdings Co., Ltd.
“MUMSS” refers to Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
“MUAH” refers to MUFG Americas Holdings Corporation.

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Corporate Executives
The following table sets forth our corporate executives as of June 27, 2024, together with their respective dates of birth,
positions and experience:
Name(Date of Birth)

Position in MUFG

Business Experience

Kanetsugu Mike
(November 4, 1956)

See “Members of theBoard of Directors”
under this Item 6.A.

See “Members of the Board of Directors” under this Item 6.A.

Hironori Kamezawa(November 18, 1961)

See “Members of theBoard of Directors”
under this Item 6.A.

See “Members of the Board of Directors” under this Item 6.A.

Hiroshi Mori
(February 21, 1965)

Senior Managing
Corporate Executive(Group Chief Legal
Officer, or Group
CLO)

April 1989

Joined Development Bank of Japan (currently
Development Bank of Japan, Inc.)
Seconded to Finance Bureau of Ministry of Home Affairs
Seconded to Tesac Corporation, a Company underReorganization Trustee Representative, Manager ofCorporate Planning Department

April 1993
June 2003

October 2006
November
2010
January 2012
June 2013
March 2016
June 2016
June 2019

April 2024

Yutaka Miyashita(October 11, 1967)

Senior Managing
Corporate Executive(Representative
Corporate
Executive)(Group Head,
Commercial
Banking & WealthManagement
Business Group(excluding in chargeof WealthManagement
Research Division))

April 1990
June 2016

Registered as attorney at law
Joined Nishimura & Asahi
Outside Director of USEN Corporation
Partner of Nishimura & Asahi
Substitute Auditor of KAGOME CO., LTD.
Outside Director, Audit and Supervisory Committee
Member of KAGOME CO., LTD.
Outside Director, Audit and Supervisory Committee
Member of SCHD
Member of the Board of Directors, Managing Executive
Officer of BKManaging Corporate Executive of MUFG
Member of the Board of Directors, Senior Managing
Executive Officer of BK (incumbent)
Senior Managing Corporate Executive of MUFG
(incumbent)
Joined The Sanwa Bank, Limited
Executive Officer of BK
Executive Officer of MUFG
Managing Executive Officer of BKManaging Executive Officer of MUFG
Member of the Board of Directors, Managing Executive
Officer of BKManaging Corporate Executive of MUFG
Managing Corporate Executive (Representative Corporate
Executive) of MUFG
Member of the Board of Directors, Senior Managing
Executive Officer of BK (incumbent)
Senior Managing Corporate Executive (Representative
Corporate Executive) of MUFG (incumbent)

April 2020
June 2020
April 2021
April 2022
April 2024

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Name(Date of Birth)

Position in MUFG

Business Experience

Fumitaka Nakahama(July 28, 1966)

Senior Managing
Corporate Executive(Group Head, Global
Corporate &Investment Banking
Business Group)

December 2009 Joined The Bank of Tokyo-Mitsubishi UFJ, Ltd.
June 2018
Executive Officer of BK
Executive Officer of MUFG
April 2021
Managing Executive Officer of BKManaging Executive Officer of MUFG
April 2022
Managing Corporate Executive of MUFG
June 2022
Member of the Board of Directors, Managing Executive
Officer of BK (incumbent)
April 2024
Member of the Board of Directors, Senior Managing
Executive Officer of BK (incumbent)
Senior Managing Corporate Executive of MUFG
(incumbent)

Hiroyuki Seki
(March 10, 1968)

Senior Managing
Corporate Executive(Group Head, Global
Markets BusinessGroup)

April 1990
June 2016

Joined The Mitsubishi Bank, Limited
Executive Officer of BK
Executive Officer of MUFG

April 2021

Managing Executive Officer of BKManaging Executive Officer of MUFG
Managing Corporate Executive of MUFG
Member of the Board of Directors, Managing Executive
Officer of BKMember of the Board of Directors, Senior Managing
Executive Officer of BK (incumbent)
Senior Managing Corporate Executive of MUFG
(incumbent)

April 2022
June 2022
April 2024

Shuichi Yokoyama(December 17, 1965)

Senior Managing
Corporate Executive(Group Chief Audit
Officer, or GroupCAO
Managing Director,
Head of Internal
Audit Division)

April 1990

Joined The Bank of Tokyo, Ltd.

June 2016

Executive Officer of BK
Executive Officer of MUFG
Managing Executive Officer of BKManaging Corporate Executive of MUFG
Member of the Board of Directors, Managing Executive
Officer of BK
Senior Managing Corporate Executive of MUFG
(incumbent)

April 2020
April 2022
June 2022
April 2024

Yasushi Itagaki(May 24, 1964)

Senior Managing
Corporate Executive(Group Chief
Operating OfficerInternational, orGroup COO-I,
Group Head
Global Commercial
Banking BusinessGroup)

April 1987
June 2013
July 2013
May 2017
October 2019
April 2021
April 2022
April 2023
June 2023

104

Joined The Bank of Tokyo, Ltd.
Executive Officer of BK
Executive Officer of MUFG
Managing Executive Officer of BK
President & CEO of PT Bank Danamon Indonesia, Tbk.
Senior Managing Corporate Executive of BK
Deputy President of BK
Senior Managing Corporate Executive of MUFG
(incumbent)
Member of the Board of Directors, Deputy President of BK(incumbent)

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Name(Date of Birth)

Kenji Horikawa(December 9, 1967)

Seiichiro Akita(November 11, 1966)

Takafumi Ihara(May 18, 1967)

Position in MUFG

Business Experience

Senior Managing
Corporate Executive(Group Chief Human
Resources Officer, orGroup CHRO &Group Deputy Chief
Strategy Officer orGroup Deputy CSO& Group Deputy
Chief Digital
Transformation
Officer or Group
Deputy CDTO
In sub-charge ofCorporate
Administration
Division)

April 1990
June 2016
April 2020

Senior Managing
Corporate Executive(Representative
Corporate
Executive)(Group Head, JapaneseCorporate &Investment Banking
Business
Group(excluding incharge of WealthManagement
Research Division))

April 1989

Joined The Mitsubishi Bank, Limited

June 2015

Executive Officer of BK

April 2019

Managing Executive Officer of BK

May 2019

President & CEO, Bank of Ayudhya Public Company
LimitedDeputy President of BK

Senior Managing
Corporate Executive(Group Head, AssetManagement &Investor Services
Business Group)

April 1990
June 2016
April 2018
April 2021
April 2023
April 2024

Joined The Sanwa Bank, Limited
Executive Officer of BKManaging Executive Officer of SCHDManaging Executive Officer of MUMSSManaging Executive Officer of MUFG
Member of the Board of Directors, Managing Executive
Officer of SCHD
Member of the Board of Directors, Managing Executive
Officer of MUMSSManaging Corporate Executive of MUFG
Member of the Board of Directors, Senior Managing
Executive Officer of MUSHD (incumbent)
Member of the Board of Directors, Senior Managing
Executive Officer of MUMSS (incumbent)
Senior Managing Corporate Executive of MUFG
(incumbent)

April 2022

April 2023
April 2024

May 2023

Senior Managing Corporate Executive (Representative
Corporate Executive) of MUFG (incumbent)
Member of the Board of Directors, Deputy President of BK(incumbent)

June 2023

Joined The Mitsubishi Trust and Banking Corporation
Executive Officer of TB
Executive Officer of MUFG
Managing Executive Officer of TB
Senior Managing Executive Officer of TB
Director and Senior Managing Executive Officer of TB(incumbent)
Senior Managing Corporate Executive Officer of MUFG
(incumbent)

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Name(Date of Birth)

Jun Togawa(July 3, 1967)

Position in MUFG

Senior Managing
Corporate Executive(Representative
Corporate Executive)(Group Chief Financial
Officer, or Group
CFO)

Business Experience

April 1990
June 2016

Joined The Mitsubishi Trust and Banking Corporation
Executive Officer of TB
Executive Officer of BK
Executive Officer of MUFG
Managing Executive Officer of TB
Managing Executive Officer of BK
Director and Senior Managing Executive Officer of TB
Managing Executive Officer of MUFG
Senior Managing Executive Officer of BK
Senior Managing Corporate Executive (Representative
Corporate Executive) of MUFG (incumbent)
Member of the Board of Directors, Senior Managing
Executive Officer of BK (incumbent)

April 2020
April 2023
April 2024

June 2024
Keitaro Tsukiyama(December 7, 1967)

Managing Corporate
Executive(Group Chief
Compliance Officer,
or Group CCO)

April 1991
June 2018

Joined The Mitsubishi Bank, Limited
Executive Officer of BK
Executive Officer of MUFG
Managing Executive Officer of BKManaging Corporate Executive of MUFG (incumbent)
Member of the Board of Directors, Managing Executive
Officer of BK (incumbent)

April 2021
June 2021

Toshiki Ochi
(June 23, 1968)

Managing Corporate
Executive(Group Chief
Information Officer,
or Group CIO)

April 1991
June 2018

Joined The Sanwa Bank, Limited
Executive Officer of BK
Executive Officer of MUFG
Managing Executive Officer of Mitsubishi UFJ NICOS
Co., Ltd.
Managing Executive Officer of BKManaging Corporate Executive of MUFG (incumbent)
Member of the Board of Directors, Managing Executive
Officer of BK (incumbent)

April 2019
April 2022
June 2022

Hideaki Takase(December 14, 1968)

Managing Corporate
Executive(Representative
Corporate Executive)(Group Chief Strategy
Officer, or GroupCSO (Corporate
Planning Division
excluding Finances& Resources
Management andGlobal Business)
In charge of Corporate
Administration
Division)

April 1991

Joined The Mitsubishi Bank, Limited

June 2018

Executive Officer of BK
Executive Officer of MUFG
President & CEO of MUFG Bank (Europe) N.V.
Managing Executive Officer of BKManaging Corporate Executive of MUFG
Member of the Board of Directors, Managing Executive
Officer of BK (incumbent)
Managing Corporate Executive (Representative Corporate
Executive) of MUFG (incumbent)

August 2019
April 2021
April 2022
June 2022
April 2023

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Table of Contents
Name(Date of Birth)

Tadashi Yamamoto(May 23, 1969)

Katsunori Yokomaku(December 23, 1967)

Notes:

Position in MUFG

Business Experience

Managing Corporate
Executive(Group Head, Retail &Digital Business
Group
Group Chief Digital
Transformation
Officer, or Group
CDTO)

April 1992
June 2018

Managing Corporate
Executive(Group Chief Risk
Officer, or GroupCRO)

April 1992
June 2018

Joined The Bank of Tokyo, Ltd.
Executive Officer of BK
Executive Officer of MUFG
Managing Executive Officer of BKManaging Executive Officer of MUFG
Member of the Board of Directors, Managing Executive
Officer of BK (incumbent)
Managing Corporate Executive of MUFG (incumbent)

April 2022
June 2022
April 2023

Joined The Sanwa Bank, Limited
Executive Officer of BK
Executive Officer of MUFG
Managing Executive Officer of BKManaging Corporate Executive of MUFG (incumbent)
Member of the Board of Directors, Managing Executive
Officer of BK (incumbent)

April 2022
April 2024
June 2024

The following abbreviations are used in the table above:“BK” refers to MUFG Bank, Ltd. or its former name The Bank of Tokyo-Mitsubishi UFJ, Ltd.
“TB” refers to Mitsubishi UFJ Trust and Banking Corporation.
“SCHD” refers to Mitsubishi UFJ Securities Holdings Co., Ltd.
“MUMSS” refers to Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
“MUAH” refers to MUFG Americas Holdings Corporation.

The board of directors and corporate executives may be contacted through our headquarters at Mitsubishi UFJ Financial Group,
Inc., 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8330, Japan. In connection with our new headquarters building construction
project, we have temporarily relocated our headquarters from 7-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8330, Japan.
No family relationship exists among any of our directors or corporate executives.
B.

Compensation

The compensation paid by MUFG and its subsidiaries during the fiscal year ended March 31, 2024 to our directors andcorporate executives consisted of annual base salaries, performance-based stock compensation, cash bonuses and other benefits.
MUFG’s compensation committee determines the compensation paid to our directors and corporate executives. For our compensation
recovery policy, see Exhibit 97 to this Annual Report.
The following table sets forth details of the aggregate compensation paid by MUFG and its subsidiaries during the fiscal year
ended March 31, 2024 to our directors (excluding outside directors), corporate executives and outside directors:
Non-Adjustable Compensation

Classification

Number of
Recipients(1)AnnualBase
Salary(2)Aggregate
Compensation

Performancebased Stock
Compensation

Adjustable Compensation

Cash Bonuses

Performancebased Stock
Compensation

¥
¥

¥
¥

(in millions)

Directors (excluding outside directors)
Corporate Executives
Outside Directors

6 ¥
18 ¥
10 ¥

967
2,249
181

¥
¥
¥

347
994
181

¥
¥

66
304
―

219
387
―

335
564
―

Notes:(1) Includes the current directors and corporate executives as well as those who retired during the fiscal year ended March 31, 2024.
(2) Includes other benefits.

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The following table sets forth the details of individual compensation paid, including benefits in kind granted by MUFG and its
subsidiaries, in an amount equal to or exceeding ¥100 million during the fiscal year ended March 31, 2024:
Non-Adjustable Compensation

Directors

Aggregate
Compensation

AnnualBase
SalaryPaid by

Performancebased Stock
Compensation

Adjustable Compensation
Performancebased Stock
Compensation

Cash
Bonuses(in millions)

Kanetsugu Mike¥

199 MUFG

¥

40 ¥

24 ¥

60 ¥

75

Hironori Kamezawa¥

339 MUFG

¥

71 ¥

27 ¥

89 ¥

125

18

9

―

―

35 ¥

10 ¥

37 ¥

54

35

17

29

54

42 ¥

12 ¥

44 ¥

63

46

16

44

63

25 ¥

5 ¥

32 ¥

50

BK
Iwao Nagashima¥

271 MUFG

Junichi Hanzawa¥

330 MUFG

Makoto Kobayashi¥

225 MUFG

¥

TB
¥

BK
¥

SCHD
MUMSS

13

3

16

25

¥

13 ¥

2 ¥

16 ¥

25

Yoshitaka Shiba¥

119 MUFG

¥

61 ¥

15 ¥

14 ¥

29

Tetsuya Yonehana¥

123 MUFG

¥

39 ¥

12 ¥

9 ¥

18

22

5

6

12

38 ¥

7 ¥

15 ¥

18

21

20

9

12

45 ¥

9 ¥

16 ¥

12

43

6

13

8

37 ¥

8 ¥

14 ¥

10

32

30

9

7

34 ¥

8 ¥

7 ¥

13

19

7

5

9

34 ¥

8 ¥

8 ¥

13

19

6

5

9

34 ¥

8 ¥

8 ¥

12

19

8

5

9

28 ¥

7 ¥

7 ¥

10

BK
Takayuki Yasuda¥

140 MUFG¥

TB
Yasushi Itagaki¥

152 MUFG¥

BK
Seiichiro Akita¥

147 MUFG¥

BK
Yutaka Miyashita¥

102 MUFG

Fumitaka Nakahama¥

102 MUFG

Hiroyuki Seki¥

103 MUFG

Shuichi Yokoyama¥

101 MUFG

¥

BK
¥

BK
¥

BK

Note:

(1)

¥

BK

15

8

5

11

SCHD

10

—

—

—

The following abbreviations are used in the table above:“BK” refers to MUFG Bank, Ltd. (or its former name The Bank of Tokyo-Mitsubishi UFJ, Ltd.)“TB” refers to Mitsubishi UFJ Trust and Banking Corporation.
“SCHD” refers to Mitsubishi UFJ Securities Holdings Co., Ltd.
“MUMSS” refers to Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

Annual Base Salary
Annual base salaries were paid to our directors (including outside directors) and corporate executives in the form of monthly
cash installment payments.
Performance-based Stock Compensation Plans
Under our performance-based stock compensation plans, qualified directors (excluding outside directors and directors serving as
audit committee members), corporate executives and others of MUFG and its major domestic subsidiaries are assigned, on a monthly
108Table of Contentsbasis, (1) points based on their job responsibilities, or non-adjustable points, and (2) additional points based on their job
responsibilities which are adjusted at the end of each fiscal year and at the end of each plan period to reflect the extent to which afinancial target measured under Japanese GAAP, an ESG performance target or other factors determined by the compensationcommittee are attained, or adjustable points. Each plan period corresponds to the period covered by the three-year medium-termbusiness plan of MUFG. Each accumulated point represents a right to receive one share of MUFG common stock from a trust
established in Japan to administer the plan grants as determined by the compensation committee.
The right to receive shares of MUFG common stock in exchange for non-adjustable points becomes vested and non-forfeitable,
and the shares are delivered, upon the grantee’s departure from his or her job responsibilities based on which the right was granted.
The right to receive shares of MUFG common stock in exchange for adjustable points becomes vested and non-forfeitable, and theshares are delivered, at the end of each plan period. The vesting in either case is subject to conditions imposed by the compensationcommittee, including non-engagement in misconduct. A portion of the shares subject to a grantee’s vested right may be delivered in
cash.
The grantees are entitled to “dividend equivalent credits” on their granted but unvested rights under the plan when MUFG pays
dividends to its shareholders. The credit is equal to the dividends that the grantees would have received on the shares had the shares
been issued to the grantees in exchange for their granted but unvested rights under the plan, less expenses relating to the administrationof the plan. Accumulated dividend equivalents are paid to grantees at the time of the delivery of the shares.
The shares to be delivered to grantees are purchased on the open market by the trustee of a trust pursuant to a trust agreement
among MUFG, the trustee and the independent caretaker of the trust. Each plan is funded in cash up to a maximum aggregate amountdetermined by our compensation committee.
The initial performance-based stock compensation plan commenced on July 1, 2016. The grants under the plan were tied to
MUFG’s previous medium-term business plan for the three-year period ended March 31, 2018. The trust for the plan was funded with
¥9.8 billion in cash, and 18,785,400 shares of MUFG common stock were purchased by the trustee of the plan trust in May 2016. The
plan was adopted after our compensation committee decided in May 2016 to cease to provide any additional stock acquisition rights
under our previous stock-based compensation structure and to introduce the performance-based stock compensation plan.
The second performance-based stock compensation plan commenced on December 1, 2016. The trust for the plan was fundedwith 8.8 billion in cash, and an aggregate of 13,004,300 shares of MUFG common stock were purchased by the trustee of the plantrust in November 2016 and May 2017. The plan was adopted to replace the outstanding stock acquisition rights under our previous
stock-based compensation structure. Upon the adoption of the plan, the stock acquisition rights that had been allotted to grantees but
remained unexercised under the then-outstanding stock-based compensation plans were exchanged for points under the performancebased stock compensation plan, and the rights to receive shares of MUFG common stock represented by these points were vested. The
outstanding stock acquisition rights of grantees who were on overseas assignments at the time of the adoption of the plan were
exchanged for points under the performance-based stock compensation plan upon their return to Japan. Each grantee receives shares of
MUFG common stock in exchange for points upon the grantee’s departure from his or her job responsibilities based on which the rightto receive such shares was granted.
On May 15, 2018, the compensation committee approved additional grants under the initial performance-based stockcompensation plan, which was amended in connection with the launch of MUFG’s previous medium-term business plan for the threeyear period ended March 31, 2021. The trust period of the plan trust was extended until August 31, 2021, and the maximum amount offunds to be contributed to the plan trust was reset at ¥26.3 billion. The formula for determining adjustable points under the plan was
also revised. In May 2018, the plan trust was funded with ¥9.6 billion in cash, and 13,049,600 shares of MUFG common stock werepurchased by the trustee of the plan trust.
On May 17, 2021, the compensation committee approved additional grants under the initial performance-based stockcompensation plan, which was amended in connection with the launch of MUFG’s previous medium-term business plan for the threeyear period ended March 31, 2024. The trust period of the plan trust was extended until August 31, 2024, and the maximum amount offunds to be contributed to the plan trust was reset at ¥26.6 billion. The formula for determining adjustable points under the plan was
also revised. In May 2021, the plan trust was funded with ¥8.3 billion in cash, and 13,381,500 shares of MUFG common stock werepurchased by the trustee of the plan trust.
On May 15, 2024, the compensation committee approved additional grants under the initial performance-based stockcompensation plan, which was amended in connection with the launch of MUFG’s new medium-term business plan for the three-year
period ending March 31, 2027. The trust period of the plan trust was extended until August 31, 2027, and the maximum amount offunds to be contributed to the plan trust was reset at ¥34.4 billion. The formula for determining adjustable points under the plan was
also revised. In May 2024, the plan trust was funded with ¥14.1 billion in cash, and 9,080,700 shares of MUFG common stock werepurchased by the trustee of the plan trust.

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For more information on the Performance-based Stock Compensation Plans, see “Item 16E. Purchases of Equity Securities by
the Issuer and Affiliated Purchasers.”
Cash Bonuses
We from time to time pay cash bonuses to our directors and corporate executives to further motivate them to contribute to theimprovement of our stock prices and profits if such bonuses are deemed appropriate based on a balanced scorecard approach taking
into account the results of operations of the MUFG Group and each director’s or corporate executive’s individual performance of hisor her duties as a director or corporate executive in light of both quantitative and qualitative criteria, including our medium-term
strategy for improving our corporate value. None of the outside directors is eligible to receive a cash bonus. The compensationcommittee determines the cash bonus for each director and corporate executive based on our financial results and his or her job
performance for the preceding fiscal year as well as his or her seniority and experience.
MUFG Americas Holdings Corporation Stock Bonus Plan
Under the MUFG Americas Holdings Corporation Stock Bonus Plan, qualified key employees of MUFG Americas Holdings are
granted Restricted Share Units, or RSUs, representing a right to receive American Depositary Receipts, or ADRs, evidencing ADSs,
each exchangeable for one share of MUFG common stock, from an independent trust established to administer the plan grants, upon
the satisfaction of vesting conditions, to be determined pursuant to the plan as well as a Restricted Share Unit Agreement between
MUFG Americas Holdings and the grantees.
Unless otherwise provided in the relevant Restricted Share Unit Agreement, RSUs become vested and non-forfeitable asfollows: one-third (33 1/3%) of a grantee’s RSUs vests on May 20 of each of the three years following the date of the grant such that
all of the RSUs become fully vested after three years from the grant date so long as the grantee satisfies the specified continuous
service requirements and any other conditions under the applicable plan documents, subject to certain claw-back and notice period
provisions.
Under the plan, the grantees are entitled to “dividend equivalent credits” on their granted but unvested RSUs when MUFG pays
dividends to its shareholders. The credit is equal to the dividends that the grantees would have received on the shares had the shares
been issued to the grantees in exchange for their granted but unvested RSUs. Accumulated dividend equivalents are paid to grantees inwhole shares on an annual basis. Any fractional share will be paid to the participants in cash.
Grants made under the plan are not entitled to any dividend rights, voting rights, or other stockholder rights unless and until
RSUs are vested and ADSs are delivered to grantees.
The ADSs to be delivered to grantees will be purchased on the open market by the trustee of the independent trust pursuant to atrust agreement between MUFG Americas Holdings and the trustee. As of June 30, 2024, 152,998,705 RSUs have been granted under
the plan, of which 10,657,980 RSUs were outstanding as of June 30, 2024.
For more information on the plan, see “Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers.”
Share-Based Compensation Plan for Domestic Employees of Major Subsidiaries
Under the share-based compensation plan commencing in July 2024, qualified domestic employees holding managerial
positions at our major subsidiaries, MUFG Bank, Mitsubishi UFJ Trust and Banking, and Mitsubishi UFJ Morgan Stanley Securities,
are assigned, on a monthly basis, pre-determined points in equal installments during the plan period, which is from July 2024 to June
2027. The points accumulated through the end of the share-based compensation plan period by grantees who satisfy applicableconditions will be exchanged for shares of MUFG common stock. Each accumulated point represents a right to receive one share of
MUFG common stock from a trust established in Japan in May 2024 to administer the plan grants. Eligibility requirements are
determined by each subsidiary.
The right to receive shares of MUFG common stock in exchange for points becomes vested and non-forfeitable, and the shares
will be delivered, at the end of the plan period. The vesting is subject to conditions imposed by each subsidiary, including nonengagement in misconduct. A portion of the shares subject to a grantee’s vested right may be delivered in cash.
The grantees are not entitled to any dividends on their granted but unvested rights to receive shares under the plan when MUFG
pays dividends to its shareholders. Dividends on such granted but unvested rights are used to cover expenses relating to theadministration of the plan or acquire shares for the plan.

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The shares to be delivered to grantees are purchased on the open market by the trustee of a trust pursuant to a trust agreement
among MUFG, the trustee and the independent caretaker of the trust. Each plan is funded in cash up to a maximum aggregate amountdetermined by each subsidiary.
The trust for the plan was funded with ¥ 4.3 billion in cash, and an aggregate of 2,786,900 shares of MUFG common stock werepurchased by the trustee of the plan trust in May 2024.
For more information on the plan, see “Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers.”
Share Ownership
As of July 1, 2024, our directors and corporate executives held the following numbers of shares of our common stock:
Number of Shares
RegisteredDirectors

Mariko Fujii
Keiko Honda
Kaoru Kato
Satoko Kuwabara

—
—
—
—

Hirofumi Nomoto
Mari Elka Pangestu
Hiroshi Shimizu
David Sneider
Koichi Tsuji
Kenichi Miyanaga
Ryoichi Shinke
Iwao Nagashima
Junichi Hanzawa
Makoto Kobayashi

25,000——―—183,678
1,100
283,681236,500
287,958

Corporate Executives

Number of Shares
Registered

Kanetsugu Mike
Hironori Kamezawa
Hiroshi Mori
Yutaka Miyashita
Fumitaka Nakahama
Hiroyuki Seki
Shuichi Yokoyama
Yasushi Itagaki
Kenji Horikawa
Seiichiro Akita
Takashi Ihara
Jun Togawa
Keitaro Tsukiyama
Toshiki Ochi
Hideaki Takase
Tadashi Yamamoto
Katsunori Yokomaku

398,362
247,339
39,58557,70042,56954,45071,10042,000102,367
23,012
52,12082,70057,26946,90038,10037,40029,317111

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None of the shares of our common stock held by our directors and corporate executives have voting rights that are different fromshares of our common stock held by any other shareholder.
For information on the performance-based stock compensation for our directors and corporate executives, see “—Performancebased Stock Compensation Plans.”C.

Board Practices

Our articles of incorporation provide for a board of directors with statutorily mandated nominating committee, which we call thenominating and governance committee, audit committee and compensation committee, each consisting of members of the board of
directors. We have also elected, though not statutorily mandated under the Companies Act of Japan, to establish a risk committee
consisting of directors and external experts. We also have a U.S. risk committee pursuant to the U.S. Enhanced Prudential Standards
for foreign banking organizations. Our corporate executives are responsible for executing and managing our business operations basedon a delegation of authority by the board of directors, and our directors set our key management policies and oversee the execution ofduties by these corporate executives.
In June 2015, our shareholders approved an amendment to our articles of incorporation to adopt our current governanceframework with a board of directors and the above-mentioned three board committees. We previously had a governance frameworkwith a board of directors and a board of corporate auditors. The Companies Act permits three types of governance system for large
companies such as MUFG: (1) a company with a nominating committee, an audit committee and a compensation committee, (2) acompany with a board of corporate auditors, and (3) a company with an audit and supervisory committee. Our previous governanceframework was based on the second system, and our current governance system is based on the first system.
With respect to companies adopting the first system, including MUFG, each of the nominating, audit and compensationcommittees must consist of members of the board of directors, and the majority of the members of each committee must be outside
directors as defined by the Companies Act.
An “outside director” is defined by the Companies Act as a person who meets all of the following conditions:
•
•

•
•
•

the person is not currently, and has not been in the ten years prior to his or her assumption of office as outside director, an
executive director (meaning a director concurrently performing an executive role) (gyomu shikko torishimariyaku), a
corporate executive, a manager (shihainin), or any other type of employee of the company or any of its subsidiaries;
if the person has been a director, a corporate auditor, or an accounting adviser (kaikei sanyo) (other than a person who has
been an executive director, a corporate executive, a manager or any other type of employee) of the company or any of its
subsidiaries within the ten years prior to his or her assumption of office as outside director, the person was not an executive
director, a corporate executive, a manager or any other type of employee of the company or any of its subsidiary in the ten
years prior to his or her assumption of office as such;the person is not a natural person who controls the company, or a director, a corporate executive, a manager or any othertype of employee of the company’s “parent company, etc.” (meaning the company's parent company or a natural person
who controls the company)
the person is not an executive director, a corporate executive, a manager or any other type of employee of anothersubsidiary of the company’s parent company or another company controlled by a natural person who controls the company;
andthe person is not the spouse or a family member within the second degree of kinship of a director, a corporate executive, amanager, or any other type of important employee of the company, or a natural person who controls the company.

Further, companies listed on the Prime Market of the Tokyo Stock Exchange, including us, must have the majority of each of
nominating and compensation committee members in principle qualify as outside directors who are considered independent based onsuch internal standards as each company establishes pursuant to the Tokyo Stock Exchange requirements, or independent outside
directors, or publicly disclose the reason for not having such directors on each such committee.
The board of directors must appoint corporate executives (shikkoyaku) to execute and manage the business operations of thecompany under the authority delegated by the board of directors. Based on this system, our current governance framework is designed
to facilitate more flexible and swifter decision-making and increase transparency in our management processes.
Board of Directors
Our board of directors consists of directors who are elected at a general meeting of shareholders. Under our articles ofincorporation, the number of directors may not exceed 20. We currently have 15 directors, nine of whom are independent outside
directors and two of whom are internal non-executive directors. Companies listed on the Prime Market of the Tokyo Stock Exchange,
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including us, must have one third (or, in cases where such companies deem appropriate, the majority) of directors qualify as
independent outside directors, or publicly disclose the reason for not having such directors on the board of directors.
The regular term of office of a director is one year from the date of election, and directors may serve their terms until the closeof the annual general meeting of shareholders held for the following year after their election. Directors may serve any number ofconsecutive terms.
Under the Companies Act, the board of directors has the authority to determine our basic management policy, make decisions on
the execution and management of our business operations, and oversee the execution by the corporate executives of their duties. The
board of directors may delegate, to the extent permitted by the Companies Act, the authority to make decisions on the execution andmanagement of our business operations. Our board of directors has delegated most of this authority to the corporate executives.
The board of directors elects the Chairman and the Deputy Chairman from among its members and appoints key management
members based on recommendations submitted to it by the nominating committee.
Under the Companies Act, a resolution of the board of directors is required if any director wishes to engage in any business thatis in competition with us or any transaction with us. Additionally, no director may vote on a proposal, arrangement or contract inwhich that director is deemed to be particularly interested.
Neither the Companies Act nor our articles of incorporation contain special provisions as to the borrowing power exercisable bya director, the retirement age of our directors, or a requirement of our directors to hold any shares of our capital stock.
Under the Companies Act and our articles of incorporation, we may exempt, by resolution of the board of directors, ourdirectors from liabilities to MUFG arising in connection with their failure to execute their duties in good faith and without grossnegligence within the limits stipulated by applicable laws and regulations. In addition, we have entered into a liability limitationagreement with each outside director and non-executive director which limits the maximum amount of their liability to MUFG arisingin connection with a failure to execute their duties in good faith and without gross negligence to the greater of either ¥10 million or theaggregate sum of the amounts prescribed in Paragraph 1 of Article 425 of the Companies Act and Articles 113 and 114 of theCompanies Act Enforcement Regulations.
None of our directors is party to a service contract with MUFG or any of its subsidiaries that provides for benefits upon end of
their director term.
Nominating Committee
Our nominating committee, which we call the nominating and governance committee, determines the contents of proposals
regarding the election and removal of director candidates to be submitted to general meetings of shareholders. The committee also
considers and makes recommendations to the board of directors regarding the appointment and removal of the Chairman and the
Deputy Chairman of the board of directors and the President & Group CEO of MUFG as well as the chairman and the deputy
chairman of the board of directors, the president and others of each of our major subsidiaries. In addition, the committee discusses andmakes recommendations to the board of directors on matters pertaining to our governance policy and framework.
Under the Companies Act, the nominating committee must consist of at least three directors, and the majority of its members
must be outside directors. Further, companies listed on the Prime Market of the Tokyo Stock Exchange, including us, must have themajority of nominating committee members in principle qualify as independent outside directors or publicly disclose the reason for nothaving such directors on the nominating committee. Our nominating committee, which we call the nominating and governancecommittee, currently consists of five directors. The chairman of the committee is Hirofumi Nomoto, an independent outside director.
The other members of this committee are Mariko Fujii, Kaoru Kato and Satoko Kuwabara, who are independent outside directors, andHironori Kamezawa, Director, President & Group CEO. Between April 2023 and March 2024, the nominating and governancecommittee met 10 times.
Audit Committee
The audit committee determines the contents of proposals pertaining to the election, termination and non-appointment of our
independent auditor to be submitted to general meetings of shareholders. The committee also monitors and audits the execution by the
directors and the corporate executives of their duties and prepares audit reports to the board of directors. In order to effectively
perform its duties, the committee reviews, inspects and investigates, as necessary, the management of the operations of MUFG and its
subsidiaries, including financial reporting and internal controls. In addition, the committee has the power to consent to decisions on thecompensation to be paid to our independent auditor.

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Under the Companies Act, the audit committee must consist of at least three non-executive directors, and the majority of its
members must be outside directors. Our committee currently has five members. The chairman of the committee is Koichi Tsuji, an
independent outside director. The other members of the committee are Keiko Honda and Kaoru Kato, who are independent outside
directors, and Kenichi Miyanaga and Ryoichi Shinke, who are non-executive directors. Between April 2023 and March 2024, the audit
committee met 16 times.
Compensation Committee
The compensation committee establishes our policy regarding the determination of the compensation of MUFG’s directors,
corporate executives, executive officers (shikko yakuin) and others and also determines the details of individual compensation basedon the policy. The committee discusses and makes recommendations to the board of directors regarding the establishment, revision
and abolition of compensation systems for the chairman, the deputy chairman, the president and others of each of our major
subsidiaries.
Under the Companies Act, the compensation committee must consist of at least three directors, and the majority of its members
must be outside directors. Further, companies listed on the Prime Market of the Tokyo Stock Exchange, including us, must have themajority of compensation committee members in principle qualify as independent outside directors or publicly disclose the reason for
not having such directors on the compensation committee. Our compensation committee currently consist of five directors. The
chairperson of the committee is Satoko Kuwabara, an independent outside director. The other members of this committee are Mariko
Fujii, Kaoru Kato and Hirofumi Nomoto, who are independent outside directors, and Hironori Kamezawa, Director, President &Group CEO. Between April 2023 and March 2024, the compensation committee met 7 times.
Risk Committee
In addition to the foregoing three committees, which are mandated by the Companies Act, we have a risk committee, which was
initially established under our previous governance framework and which we continue to have under our current governanceframework on a voluntary basis. The risk committee deliberates and makes recommendations to the board of directors on mattersregarding group-wide risk management as well as top risk matters.
MUFG Corporate Governance Policies provide that the committee shall consist of directors and external experts. The committee
currently has eight members. The chairperson of the committee is Mariko Fujii, an independent outside director. The other members of
this committee are Mari Elka Pangestu, Hiroshi Shimizu and David Sneider, who are independent outside directors, Hideaki Takase,
Managing Corporate Executive and Group CSO, and Shinichi Koide, Takeo Hoshi and Keishi Hotsuki, who are external experts.
Between April 2023 and March 2024, the risk committee met four times.
U.S. Risk Committee
The U.S. risk committee oversees the risk management function for our combined U.S. operations. Its oversight role includes,
but is not limited to, all roles and responsibilities required under the FRB’s final rules for Enhanced Prudential Standards for foreignbanking organizations. The committee monitors liquidity and all other types of risk exposures, reviews the risk management policies
and procedures, and oversees compliance with such policies and procedures for our combined U.S. operations. The committee is asubcommittee of the board of directors of MUFG, and reports and makes recommendations to MUFG’s board of directors and
MUFG’s risk committee.
The members of the U.S. risk committee are appointed by MUFG’s board of directors after consideration of member candidates
reviewed and recommended by MUFG’s risk committee and nominating and governance committee. The committee shall consist of
five or more members including delegate(s) from MUFG and at least one independent member.
Corporate Executives
Our corporate executives are responsible for executing and managing our business operations within the scope of the authority
delegated to them by the board of directors.
Under the Companies Act, at least one corporate executive must be appointed by a resolution of the board of directors. We
currently have 17 corporate executives. Under our articles of incorporation, the board of directors shall appoint a representative
corporate executive who may represent us severally and may appoint a president and a deputy president and others. The term of officeof each corporate executive expires at the conclusion of the first meeting of the board of directors convened after the ordinary general
meeting of shareholders for the last fiscal year that ends within one year following the corporate executive’s assumption of office.

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Under the Companies Act, a resolution of the board of directors is required if any corporate executive wishes to engage in any
business that is in competition with us or any transaction with us.
Under the Companies Act and our articles of incorporation, we may exempt, by resolution of the board of directors, ourcorporate executives from liabilities to MUFG arising in connection with their failure to execute their duties in good faith and withoutgross negligence within the limits stipulated by applicable laws and regulations. We, however, currently have no such arrangementswith any of our corporate executives.
Executive Committee
The executive committee, as the primary decision-making body for the business execution of the MUFG Group, discusses andmakes decisions about important matters related to the execution and management of our business operations and governance. The
chairperson of the committee is Hironori Kamezawa, President & Group CEO. The committee members primarily consist of all
representative corporate executives and such corporate executives and executive officers as designated by the president. The President& Group CEO may, as necessary, request our Group C-suite executives to attend committee meetings, and the members of the audit
committee are also allowed to attend. The executive committee normally meets once every other week.
D.

Employees

As of March 31, 2024, we had approximately 140,000 employees, an increase of approximately 18,200 employees comparedwith the number of employees as of March 31, 2023 primarily due to the acquisition of HC Consumer Finance Philippines, Inc. by
Krungsri in June 2023, In addition, as of March 31, 2024, we had approximately 27,500 part-time and temporary employees. The
following tables show the percentages of our employees across our different business units and in different locations as of March 31,
2024:

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Business unit
MUFG Bank:
Retail & Commercial Banking Business Unit
Japanese Corporate & Investment Banking Business Unit
Global Corporate & Investment Banking Business Unit
Global Commercial Banking Business Unit
Global Markets Business Unit
Digital Service Business Unit
Corporate Center/Corporate Staff
Mitsubishi UFJ Trust and Banking:Trust-Banking
Trust Assets
Real Estate
Global Markets
Administration and subsidiaries
Mitsubishi UFJ Securities Holdings:
Retail & Commercial Banking Business Unit
Japanese Corporate & Investment Banking Business Unit
Global Corporate & Investment Banking Business Unit
Global Commercial Banking Business Unit
Trust Assets Business Unit
Global Markets Business Unit
Digital Service Business Unit
Corporate Center/Corporate Staff
Mitsubishi UFJ NICOS:
Business Marketing Division
Credit Risk Management & Risk Assets Administration Division
Operations Division
Systems & Systems Integration DivisionCorporate Division
OthersOthers

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10%
3
2
48
1
4
12
3
5
1
0
2
2
1
0
0
0
1
0
1
1
1
0
0
0
0
2
100%

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Location
MUFG Bank:Japan
United States
EuropeAsia/Oceania excluding Japan
Other areas
Mitsubishi UFJ Trust and Banking:Japan
United States
EuropeAsia/Oceania excluding Japan
Mitsubishi UFJ Securities Holdings:
Japan
United States
EuropeAsia/Oceania excluding Japan
Mitsubishi UFJ NICOS:Japan
United States
EuropeAsia/Oceania excluding Japan
Others

21%
4
2
53
1
7
1
1
1
4
0
1
0
2
0
0
0
2
100%

Most of our employees are members of an employees’ union, which negotiates on behalf of employees in relation to
remuneration and working conditions. We believe our labor relations to be good.
E.

Share Ownership
The information required by this item is set forth in “—B. Compensation.”F.

Disclosure of a Registrant’s Action to Recover Erroneously Awarded Compensation

As described elsewhere in this annual report, we have restated our consolidated financial statements for the fiscal year ended
March 31, 2023. As a result, the independent directors on the compensation committee considered whether incentive-based
compensation was erroneously awarded and whether recovery would be required under the executive compensation recovery policy
adopted by the compensation committee, effective October 2, 2023, in accordance with the NYSE listing standards implementing Rule
10D-1 under the U.S. Securities Exchange Act. These directors have concluded that, because the restatement does not impact any of
the factors that were considered in determining the incentive-based compensation amounts, no incentive-based compensation waserroneously-awarded and, therefore, no compensation recovery is required under the executive compensation recovery policy.

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Item 7.
A.

Major Shareholders and Related Party Transactions.

Major Shareholders

As of March 31, 2024, we had 1,329,155 registered shareholders of our common stock. The ten largest holders of our common
stock appearing on the register of shareholders as of March 31, 2024, and the number and the percentage of such shares held by eachof them, were as follows:
Number ofsharesheld

Name

The Master Trust Bank of Japan, Ltd. (Trust account)(1)
Custody Bank of Japan, Ltd. (Trust account)(1)
THE BANK OF NEW YORK MELLON AS DEPOSITARY BANK FOR DR HOLDERS(2)STATE STREET BANK WEST CLIENT - TREATY 505234
SSBTC CLIENT OMNIBUS ACCOUNTThe Master Trust Bank of Japan, Ltd.
(Meiji Yasuda Life Insurance Company retirement benefit trust account)
JP MORGAN CHASE BANK 385781
GOVERNMENT OF NORWAY
Toyota Motor Corporation
Nippon Life Insurance Company
Total

Percentage of
total shares inissue(3)1,827,847,300
657,884,500
237,478,862
228,117,391
195,443,497

14.81%
5.33%
1.92%
1.84%
1.58%

175,000,000
159,326,950

1.41%
1.29%

157,536,315
149,263,153
142,562,953
3,930,460,921

1.27%
1.20%
1.15%
31.85%

Notes:(1) Includes the shares held in trust accounts, which do not disclose the names of beneficiaries.
(2) An owner of record for our ADSs.
(3) Numbers are truncated after two decimal points.
(4) According to a beneficial ownership report on Schedule 13G filed with the SEC by BlackRock Inc. on February 5, 2024,
BlackRock and its consolidated subsidiaries beneficially owned an aggregate of 7.0% of the outstanding shares of our common
stock as of December 31, 2023. Other than as described in the table above, we have not independently confirmed this beneficial
ownership information. According to a beneficial ownership report on Schedule 13G filed with the SEC by Sumitomo Mitsui
Trust Holdings, Inc. on February 5, 2024, Sumitomo Mitsui Trust Holdings and its consolidated subsidiaries beneficially owned
an aggregate of 4.9% of the outstanding shares of our common stock as of December 31, 2023. Other than as described in thetable above, we have not independently confirmed this beneficial ownership information.
As of March 31, 2024, 1,427,095 shares, representing approximately 0.01% of our outstanding common stock, were held by ourdirectors and corporate executives.
As of March 31, 2024, 1,794,127,070 shares, representing 14.54% of our outstanding common stock, were owned by 443 U.S.
shareholders of record who are resident in the United States, one of whom is the ADR depository’s nominee holding 237,478,862
shares, or 1.92%, of our total issued shares of common stock.
Our major shareholders do not have different voting rights.
B.

Related Party Transactions

As of March 31, 2024, we held approximately 23.2% of the voting rights in Morgan Stanley and Series C Preferred Stock with aface value of approximately $521.4 million and 10% dividend. We also have two representatives appointed to Morgan Stanley’s boardof directors. We adopted the equity method of accounting for our investment in Morgan Stanley beginning with the fiscal year ended
March 31, 2012. In April 2018, we entered into a sales plan with Morgan Stanley and Morgan Stanley & Co. LLC, pursuant to which
we will sell portions of the shares of Morgan Stanley common stock that we hold to Morgan Stanley through Morgan Stanley & Co.
LLC acting as agent for Morgan Stanley to the extent necessary to ensure that our beneficial ownership will remain below 24.9%. In
December 2020, this sales plan was suspended upon notice by Morgan Stanley to us in accordance with the terms of the plan.
We and Morgan Stanley have two securities joint venture companies, namely, Mitsubishi UFJ Morgan Stanley Securities andMorgan Stanley MUFG Securities, in Japan. We hold a 60% economic interest in Mitsubishi UFJ Morgan Stanley Securities andMorgan Stanley MUFG Securities, and Morgan Stanley holds a 40% economic interest in Mitsubishi UFJ Morgan Stanley Securities
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and Morgan Stanley MUFG Securities. We hold a 60% voting interest and Morgan Stanley holds a 40% voting interest in Mitsubishi
UFJ Morgan Stanley Securities, and we hold a 49% voting interest and Morgan Stanley holds a 51% voting interest in Morgan Stanley
MUFG Securities.
We and Morgan Stanley continue to pursue a variety of business opportunities in Japan and abroad in accordance with theglobal strategic alliance. For a detailed discussion of our global alliance with Morgan Stanley, see “Item 4.B. Information on the
Company—Business Overview—Global Strategic Alliance with Morgan Stanley.”
We and our banking subsidiaries had, and expect to have in the future, banking transactions and other transactions in theordinary course of business with our related parties. Although for the fiscal year ended March 31, 2024, such transactions included,
but were not limited to, call money, loans, electronic data processing, leases and management of properties, those transactions wereimmaterial and were made at prevailing market rates, terms and conditions and do not involve more than the normal risk ofcollectability or present other unfavorable features.
None of our directors or corporate executives, nor any of the close members of their respective families, has had any
transactions or has any presently proposed transactions that are material or any transactions that are unusual in their nature orconditions, involving goods, services or tangible or intangible assets, to which we were, are or will be a party.
No loans have been made to our directors or corporate executives other than in the normal course of business, on substantiallythe same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons,involving no more than the normal risk of collectability and presenting no other unfavorable features. In addition, no loans have been
made to our directors or corporate executives other than as permitted under Section 13(k) of the U.S. Securities Exchange Act andRule 13k-1 promulgated thereunder.
No family relationship exists among any of our directors or corporate executives. No arrangement or understanding exists
between any of our directors or corporate executives and any other person pursuant to which any director or corporate executive waselected to his or her position at MUFG.
As part of our compensation structure, we have granted performance-based stock compensation rights to our directors andcorporate executives. For a detailed discussion of the stock acquisition rights, see “Item 6.B. Directors, Senior Management and
Employees—Compensation.”
C.

Interests of Experts and Counsel
Not applicable.

Item 8.
A.

Financial Information.

Consolidated Statements and Other Financial Information

The information required by this item is set forth in our consolidated financial statements starting on page F-1 of this Annual
Report and in “Selected Statistical Data” starting on page A-1 of this Annual Report.
Pursuant to Rule 3-09 of Regulation S-X, the financial statements and supplementary data of Morgan Stanley, our equity
method investee, as of December 31, 2022 and 2023 and for the fiscal years ended December 31, 2021, 2022 and 2023, areincorporated in this Annual Report as Exhibit 99(c) by reference to Morgan Stanley’s annual report on Form 10-K filed on February
22, 2024.
Legal Proceedings
From time to time, we are involved in various litigation matters and other legal proceedings, including regulatory actions.
Although the final resolution of any such matters and proceedings could have a material effect on our consolidated operating results
for a particular reporting period, based on our current knowledge and consultation with legal counsel, we believe the current litigation
matters and other legal proceedings, when ultimately determined, will not materially affect our results of operations or financial
position. For more information, see “Item 3.D. Key Information—Risk Factors—Operational Risk—We may become subject toregulatory actions or other legal proceedings relating to our transactions or other aspects of our operations, which could result insignificant financial losses, restrictions on our operations and damage to our reputation.” and Note 26 to our consolidated financial
statements.

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Distributions
Our board of directors submits a recommendation for a year-end dividend for our shareholders’ approval at the ordinary general
meeting of shareholders customarily held in June of each year. The year-end dividend is usually distributed immediately following
shareholders’ approval to holders of record at the end of the preceding fiscal year. In addition to year-end dividends, we may makecash distributions by way of interim dividends to shareholders of record as of September 30 of each year as distribution of surplus by
resolution of our board of directors. Year-end dividends in the amount of ¥20.5 per share of our common stock (in addition to interim
dividends of ¥20.5 per share of our common stock) for the fiscal year ended March 31, 2024 were approved by shareholders at theordinary general meeting of shareholders held on June 29, 2024.
See Exhibit 2(c) to this Annual Report for additional information on our dividends policy.
Under the Japanese foreign exchange regulations currently in effect, dividends paid on shares held by non-residents of Japan
may be converted into any foreign currency and repatriated abroad. Under the terms of the deposit agreement pursuant to which ADSs
are issued, the depositary is required, to the extent that in its judgment it can convert Japanese yen on a reasonable basis into U.S.
dollars and transfer the resulting U.S. dollars to the United States, to convert all cash dividends that it receives in respect of deposited
shares into U.S. dollars and to distribute the amount received, after deduction of any applicable withholding taxes, to the holders of
ADSs. See “Item 10.D. Additional Information—Exchange Controls” and Exhibit 2(c) to this Annual Report.
B.

Significant Changes

Other than as described in this Annual Report, no significant changes have occurred since the date of our consolidated financial
statements included in this Annual Report.
Item 9.
A.

The Offer and Listing.

Offer and Listing Details

The principal market for our common stock is the Tokyo Stock Exchange in Japan. Our common stock is also listed on the
Nagoya Stock Exchange in Japan. The listing code assigned to our common stock in Japan is 8306.
In the United States, ADSs, each representing one share of common stock, are quoted on the New York Stock Exchange under
the symbol, “MUFG.”
B.

Plan of Distribution
Not applicable.

C.

Markets
The information required by this item is set forth in “—A. Offer and Listing Details.”

D.

Selling Shareholders
Not applicable.

E.

Dilution
Not applicable.

F.

Expenses of the Issue
Not applicable.

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Item 10.
A.

Additional Information.

Share Capital
Not applicable.

B.

Memorandum and Articles of Association

Our Corporate Purpose
Article 2 of our Articles of Incorporation provides that our corporate purpose is to carry on the following businesses:•

administration of management of banks, trust banks, specialized securities companies, insurance companies or othercompanies which we may own as our subsidiaries under the Banking Act;•any businesses incidental to the foregoing businesses mentioned in the preceding item; and•any other businesses in which bank holding companies are permitted to engage under the Banking Act in addition to theforegoing businesses mentioned in the preceding two items.

Board of Directors
For discussion of the provisions of our Articles of Incorporation as they apply to our directors, see “Item 6.C. Directors, Senior
Management and Employees—Board Practices.”
Common Stock
As of March 31, 2024, a total of 12,337,710,920 shares of common stock (including 610,482,347 shares of common stock heldby us and our consolidated subsidiaries as treasury stock) had been issued. Each of the shares issued and outstanding was fully paid
and non-assessable.
For a description of our common stock, see Exhibit 2(c) to this Annual Report.
Preferred StockWe currently have no shares of preferred stock issued.
For a description of preferred stock we are authorized to issue under our Articles of Incorporation, see Exhibit 2(c) to thisAnnual Report.
C.

Material Contracts

Except as described elsewhere in this Annual Report, all material contracts entered into by us in the past two years preceding thefiling of this Annual Report were entered into in the ordinary course of business.
D.

Exchange Controls

Foreign Exchange and Foreign Trade Law
The following is a general summary of major Japanese foreign exchange controls regulations applicable to holders of shares ofour common stock or voting rights thereunder who are “foreign investors,” as described below. The statements regarding Japanese
foreign exchange controls regulations set forth below are based on the laws and regulations in force and as interpreted by the Japanese
authorities as of the date of this Annual Report and are subject to subsequent changes in the applicable Japanese laws or interpretations
thereof. This summary is not exhaustive of all possible foreign exchange controls considerations that may apply to a particularinvestor, and potential investors are advised to satisfy themselves as to the overall foreign exchange controls consequences of theacquisition, ownership and disposition of shares of our common stock or voting rights thereunder by consulting their own advisors.
The Foreign Exchange and Foreign Trade Law of Japan and the cabinet orders and ministerial ordinances incidental thereto,collectively known as the Foreign Exchange Law, set forth, among other matters, regulations relating to the receipt by non-residents ofJapan of payment with respect to shares to be issued by us and the acquisition and holding of shares and voting rights by non-residents

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Table of Contentsof Japan and foreign investors, both as defined below. It also applies to the acquisition and holding of ADSs representing authority to
exercise our voting rights by foreign investors that constitutes an “inward direct investment” as described below.
“Non-residents of Japan” are defined as individuals who are not resident in Japan and corporations whose principal offices arelocated outside Japan. Generally, the branches and offices of non-resident corporations which are located in Japan are regarded as
residents of Japan while the branches and offices of Japanese corporations located outside Japan are regarded as non-residents ofJapan.

“Foreign investors” are defined as:•

natural persons who are non-residents of Japan;•

corporations which are organized under the laws of foreign countries or whose principal offices are located outside Japan;•

corporations of which 50% or more of the shares are directly or indirectly held by individuals not resident of Japan andcorporations which are organized under the laws of foreign countries or whose principal offices are located outside Japan;•(A) partnerships 50% or more of whose contributions are made by (1) natural persons who are non-residents of Japan, (2)corporations which are organized under the laws of foreign countries or whose principal offices are located outside Japan,(3) corporations of which 50% or more of the shares are directly or indirectly held by individuals not resident of Japan andcorporations which are organized under the laws of foreign countries or whose principal offices are located outside Japan,(4) corporations, a majority of the officers (or a majority of the officers having the power to represent the corporation) of
which are non-resident individuals, or (5) other partnerships a majority of whose operating partners fall under any of (1)through (4), or (B) partnerships a majority of whose operating partners are (i) any of (1) through (5) above, (ii) otherpartnerships 50% or more of whose contributions are made by non-residents of Japan or partnerships that are any of (1)through (5) above, or (iii) certain limited liability partnerships under the Limited Liability Partnership Act; and•corporations, a majority of officers (or a majority of officers having the power of representation) of which are non-resident
individuals.

Dividends and Proceeds of Sales
Under the Foreign Exchange Law, dividends paid on, and the proceeds of sales in Japan of, shares held by non-residents ofJapan may in general be converted into any foreign currency and repatriated abroad. The acquisition of our shares by non-residents ofJapan by way of a stock split is not subject to any notification or reporting requirements.
Acquisition of Shares
In general, a non-resident of Japan who acquires shares from a resident of Japan is not subject to any prior filing requirement,
although the Foreign Exchange Law empowers the Minister of Finance of Japan to require a prior approval for any such acquisition incertain limited circumstances.
Inward Direct Investment in Shares of Listed Companies
For the purpose of the regulations in connection with an “inward direct investment” under the Foreign Exchange Law, Japaneselisted companies are classified into the following categories:(i) companies engaged only in the businesses other than certain businesses (the “Designated Businesses”) designated by theForeign Exchange Act as Designated Businesses;(ii) companies engaged in the Designated Businesses other than the certain Designated Businesses designated by the Foreign
Exchange Act as core sector businesses (the “Core Sector Designated Businesses”); and(iii) companies engaged in the Core Sector Designated Businesses.
For reference purposes only, the Minister of Finance publishes, and may update from time to time, a list that classifies Japaneselisted companies into the above categories, and according to the list published by the Minister of Finance on April 24, 2023,
businesses which are currently engaged in by us are classified as category (ii), i.e., the Designated Business other than the Core Sector
Designated Businesses.
Definition of Inward Direct Investment
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If a foreign investor acquires shares or voting rights of a Japanese company that is listed on a Japanese stock exchange and, as aresult of the acquisition, the foreign investor, in combination with any existing holdings, directly or indirectly holds 1% or more of theissued shares or the total number of voting rights of the relevant company, such acquisition constitutes an “inward direct investment.”
In addition, acquisition of the authority to exercise, or instruct to exercise, voting rights held by other shareholders that results in theforeign investor, in combination with any existing shareholding, directly or indirectly holding 1% or more of the total number ofvoting rights of the relevant company, constitutes an “inward direct investment.”
In addition to the acquisitions of shares or voting rights described above, if a foreign investor (i) is granted the authority to
exercise proxy voting rights on behalf of other shareholders of the relevant company regarding certain matters which may control
substantially or have material influence on the management of such company such as the election or removal of directors or (ii)obtains consent from another foreign investor holding the voting rights of the relevant company to exercise the voting rights of suchcompany jointly, and, in each case, as a result of any of these arrangements, the number of the voting rights directly or indirectly heldby the foreign investor, including the total number of the voting rights subject to such proxy, or the sum of the number of the voting
rights directly or indirectly held by the foreign investor and such other foreign investors subject to such joint voting agreement, as thecase may be, is 10% or more of the total number of voting rights of the relevant company, each such arrangement regarding voting
rights (“voting arrangement”) constitutes an “inward direct investment.” Additionally, if a foreign investor who directly or indirectly
holds 1% or more of the total voting rights of a Japanese listed company, at a general meeting of shareholders, consents to certain
proposals having material influence on the management of such company such as (i) election of such foreign investor or its related
persons (as defined in the Foreign Exchange Act) as directors or corporate auditors of the relevant company or (ii) transfer ordiscontinuation of its business, such consent will also constitute an “inward direct investment.”
Prior Notification Requirements
If a foreign investor intends to consummate an acquisition of shares or voting rights of a Japanese listed company that
constitutes an “inward direct investment” as described above, in certain circumstances, such as where the foreign investor is in acountry that is not listed on an exemption schedule in the Foreign Exchange Act or where that Japanese company is engaged in the
Designated Businesses, prior notification of the relevant inward direct investment must be filed with the Minister of Finance and anyother competent Ministers.
However, a foreign investor seeking to acquire shares or voting rights of a Japanese listed company or the authority to exercise,either directly or through instructions, voting rights held by other shareholders that constitutes an “inward direct investment” may be
eligible for the exemptions, if certain conditions are met.
In the case of an acquisition of shares or voting rights or the authority to exercise, voting rights of a Japanese listed company
that is engaged in the Designated Businesses other than Core Sector Designated Businesses, like us, the foreign investor may be
exempted from the prior notification requirement if such foreign investor complies with the following conditions:(i) the foreign investor or its closely-related persons (as defined in the Foreign Exchange Law) will not become directors or
corporate auditors of the relevant company;(ii) the foreign investor will not make certain proposals (as prescribed in the Foreign Exchange Law) at a general meeting ofshareholders, including transfer or discontinuation of the Designated Businesses of the relevant company; and(iii) the foreign investor will not access non-public technical information in relation to the Designated Businesses of the relevant
company, or take certain other actions that may lead to the leak of such non-public technical information (as prescribed in the Foreign
Exchange Law).
Notwithstanding the above, if a foreign investor falls under a category of disqualified investors designated by the Foreign
Exchange Law (including (a) investors who have records of certain sanctions due to violations of the Foreign Exchange Law and (b)certain investors who are state-owned enterprises or other related entities excluding those who are accredited by the Minister ofFinance), in no event may such foreign investor be eligible for the exemptions described above.
In addition, if a foreign investor intends to make a voting arrangement with respect to a Japanese listed company engaged in the
Designated Businesses or consents to a proposal at a general meeting of shareholders of such company, in each case, that constitutes
an “inward direct investment” as described above, in certain circumstances, prior notification of the relevant inward direct investment
must be filed with the Minister of Finance and any other competent Ministers. However, the exemptions from the prior notification
requirements may be available in the cases where the relevant voting arrangement is regarding matters other than certain matterswhich may control substantially or have material influence on the management of the relevant company, such as the election or
removal of directors, which would have required prior notification.
Procedures for Prior Notification

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If such prior notification is filed, the proposed inward direct investment may not be consummated until after 30 days havepassed from the date of filing, although this screening period may be shortened to two weeks unless the Ministers deem it necessary toreview the proposed inward direct investment. The Ministers may extend the screening period up to five months if they deem itnecessary to review the proposed inward direct investment and may recommend any modification or abandonment of the proposed
inward direct investment and, if the foreign investor does not accept such recommendation, the Ministers may order the modification
or abandonment of such inward direct investment. In addition, if the Ministers consider the proposed inward direct investment to be an
inward direct investment that is likely to cause damage to the national security of Japan and, if a foreign investor (i) consummatessuch inward direct investment without filing the prior notification described above; (ii) consummates such inward direct investment
before the expiration of the screening period described above; (iii) in connection with such inward direct investment, makes false
statements in the prior notification described above; or (iv) does not follow the recommendation or order issued by the Ministers tomodify or abandon such inward direct investment, the Ministers may order such foreign investor to dispose of all or part of the sharesacquired or take other measures.
Post Facto Reporting Requirements
A foreign investor who consummates an inward direct investment as described above through an acquisition of shares or voting
rights or the authority to exercise, directly or through instructions, voting rights of a Japanese listed company that is engaged in the
Designated Businesses, but is not subject to the prior notification requirements described above due to the exemptions from such priornotification requirements, in general, must file a report of the relevant inward direct investment with the Minister of Finance and anyother competent Ministers having jurisdiction over such Japanese company within 45 days of such inward direct investment when, as aresult of such acquisition, the foreign investor (excluding, in the cases of (i) and (ii) below, a foreign investor who falls under acategory of certain foreign financial institutions (as prescribed in the Foreign Exchange Law)) directly or indirectly holds (i) 1% ormore but less than 3% of the total number of issued shares or voting rights, for the first time, (ii) 3% or more but less than 10% of thetotal number of issued shares or voting rights, for the first time, or (iii) 10% or more of the total number of issued shares or voting
rights.
Deposit and Withdrawal under American Depositary Facility
The deposit of shares with us, in our capacity as custodian and agent for the depositary, in Tokyo, the issuance of ADSs by thedepositary to a non-resident of Japan in respect of the deposit and the withdrawal of the underlying shares upon the surrender of the
ADSs, in each case by a foreign investor, where such acquisition of ADSs or withdrawal of the underlying shares constitutes aninward direct investment, in general, a prior notification will be required unless the exemption is available, as noted above, and if suchprior notification is not required due to the exemption, a post facto report will be required, as noted above.
Reporting of Substantial Shareholdings
The Financial Instruments and Exchange Act of Japan requires any person who has become, beneficially and solely or jointly, aholder of more than 5% of the total issued shares of capital stock of a company listed on any Japanese financial instruments exchange
or whose shares are traded on the over-the-counter market in Japan to file with the director of a competent finance bureau within fivebusiness days a report concerning such shareholding.
A similar report must also be filed in respect of any subsequent change of 1% or more in any such holding ratio or any change inmaterial matters set out in reports previously filed, with certain exceptions. For this purpose, shares issuable to such person uponexchange of exchangeable securities, conversion of convertible securities or exercise of share subscription warrants or stockacquisition rights (including those incorporated in bonds with stock acquisition rights) are taken into account in determining both thenumber of shares held by such holder and the issuer’s total issued shares of capital stock.
E.

Taxation

Japanese Taxation
The following sets forth the material Japanese tax consequences to owners of shares of our common stock or ADSs who are
non-resident individuals or non-Japanese corporations without a permanent establishment in Japan to which the relevant income isattributable, which we refer to as “non-resident holders” in this section. The statements regarding Japanese tax laws below are basedon the laws in force and as interpreted by the Japanese taxation authorities as at the date of this Annual Report and are subject tochanges in the applicable Japanese laws, double taxation treaties, conventions or agreements or interpretations thereof occurring afterthat date. This summary is not exhaustive of all possible tax considerations that may apply to a particular investor, and potential
investors are advised to satisfy themselves as to the overall tax consequences of the acquisition, ownership and disposition of shares ofour common stock or ADSs, including specifically the tax consequences under Japanese law, the laws of the jurisdiction of which they
are resident and any tax treaty between Japan and their country of residence, by consulting their own tax advisers.

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Generally, a non-resident holder of shares of our common stock or ADSs is subject to Japanese withholding tax on dividends
paid by us. In the absence of any applicable tax treaty, convention or agreement reducing the rate of withholding tax, the rate ofJapanese withholding tax applicable to dividends paid by us to non-resident holders is (i) 15.315% for dividends to be paid on or
before December 31, 2037 and (ii) 15% for dividends to be paid thereafter, except for dividends paid to any individual non-resident
holder who holds 3% or more of our issued shares for which the applicable rate is (a) 20.42% for dividends to be paid on or before
December 31, 2037 and (b) 20% for dividends to be paid thereafter, pursuant to Japanese tax law.
The Tax Convention establishes the maximum rate of Japanese withholding tax which may be imposed on dividends paid to a
U.S. resident not having a permanent establishment in Japan. Under the Tax Convention, the maximum withholding rate for U.S.
holders (as defined below) is generally set at 10% of the gross amount distributed. However, the maximum rate is 5% of the grossamount distributed if the recipient is a corporation and owns directly or indirectly, on the date on which entitlement to the dividends isdetermined, at least 10% of the voting shares of the paying corporation. Furthermore, the amount distributed shall not be taxed if therecipient is (i) a pension fund which is a U.S. resident, provided that such dividends are not derived from the carrying on of a business,directly or indirectly, by such pension fund or (ii) a company with a 50% or more interest in the paying company and satisfies certain
other requirements. U.S. holders (as defined below) are urged to consult their own tax advisors with respect to their eligibility forbenefits under the Tax Convention.
Japanese tax law provides in general that if the Japanese statutory rate is lower than the maximum rate applicable under tax
treaties, conventions or agreements, the Japanese statutory rate as stated above shall be applicable.
Non-resident holders of shares who are entitled to a reduced rate of Japanese withholding tax on payments of dividends on theshares of our common stock or ADSs by us are required to submit an Application Form for the Income Tax Convention regarding
Relief from Japanese Income Tax on Dividends, or an Application Form for the Income Tax Convention, in advance through a paying
handling agent to the relevant tax authority before the payment of dividends. A standing proxy for non-resident holders may provide
this application service for the non-resident holders. In this regard, a certain simplified special filing procedure is available for nonresident holders to claim treaty benefits of exemption from or reduction of Japanese withholding tax with respect to dividends to be
paid on or after January 1, 2014, by submitting a Special Application Form for Income Tax Convention regarding Relief fromJapanese Income Tax and Special Income Tax for Reconstruction on Dividends of Listed Stocks (together with any other required
forms and documents). With respect to ADSs, this reduced rate or exemption will be applicable to non-resident holders of ADSs if thedepositary or its agent submits two Application Forms (one before payment of dividends and the other within eight months after therecord date concerning such payment of dividends), together with certain other documents. To claim this reduced rate or exemption,
non-resident holders of ADSs will be required to file a proof of taxpayer status, residence and beneficial ownership, as applicable, andto provide other information or documents as may be required by the depositary. Non-resident holders who are entitled, under any
applicable tax treaty, to a reduced rate of Japanese withholding tax below the rate otherwise applicable under Japanese tax law, or
exemption therefrom, as the case may be, but fail to submit the required application in advance may nevertheless be entitled to claim arefund from the relevant Japanese tax authority of withholding taxes withheld in excess of the rate under an applicable tax treaty (ifsuch non-resident holders are entitled to a reduced treaty rate under the applicable tax treaty) or the full amount of tax withheld (ifsuch non-resident holders are entitled to an exemption under the applicable tax treaty), as the case may be, by complying with a certain
subsequent filing procedure. We do not assume any responsibility to ensure withholding at the reduced rate, or an exemption
therefrom, for non-resident holders who would be so eligible under an applicable tax treaty but where the required procedures as statedabove are not followed.
Gains derived from the sale or other disposition of shares of our common stock or ADSs by a non-resident holder are not, ingeneral, subject to Japanese income or corporation taxes or other Japanese taxes.
Any deposits or withdrawals of shares of our common stock by a non-resident holder in exchange for ADSs are not subject toJapanese income or corporation tax.
Japanese inheritance and gift taxes, at progressive rates, may be payable by an individual who has acquired shares of ourcommon stock or ADSs as legatee, heir or donee, even if none of the individual, the decedent or the donor is a Japanese resident.
U.S. Taxation
The following sets forth the material U.S. federal income tax consequences of the ownership of shares and ADSs by a U.S.
holder, as defined below. This summary is based on U.S. federal income tax laws, including the U.S. Internal Revenue Code of 1986,
or the Code, its legislative history, existing and proposed Treasury regulations thereunder, published rulings and court decisions, andthe Tax Convention (as defined above), all of which are subject to change, possibly with retroactive effect.

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The following summary is not a complete analysis or description of all potential U.S. federal income tax consequences to aparticular U.S. holder. It does not address all U.S. federal income tax considerations that may be relevant to all categories of potential
purchasers, certain of which (such as banks or other financial institutions, insurance companies, dealers in securities, tax-exempt
entities, non-U.S. persons, persons holding a share or an ADS as part of a “straddle,” “hedge,” conversion or integrated transaction,holders whose “functional currency” is not the U.S. dollar, holders liable for alternative minimum tax, holders required to report
income no later than when such income is reported on an “applicable financial statement,” and holders of 10% or more of our sharesby vote or value) are subject to special tax treatment. This summary does not address any foreign, state, local or other tax
consequences of investments in our shares or ADSs.
This summary addresses only shares or ADSs that are held as capital assets within the meaning of Section 1221 of the Code.
As used herein, a “U.S. holder” is a beneficial owner of shares or ADSs, as the case may be, that is:•a citizen or resident of the United States as determined for U.S. federal income tax purposes;•a corporation or other entity taxable as a corporation created or organized under the laws of the United States, any state
thereof or the District of Columbia;•

an estate, the income of which is subject to U.S. federal income tax regardless of its source; or a trust•

the administration of which is subject to (1) the supervision of a court within the United States and (2) the control of one ormore U.S. persons as described in Section 7701(a)(30) of the Code; or•that has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

If a partnership holds shares or ADSs, the tax treatment of a partner will generally depend on the status of the partner and theactivities of the partnership. If you are a partner of a partnership holding shares or ADSs, you should consult your tax advisor.
We urge U.S. holders to consult their own tax advisors concerning the U.S. federal, state and local and other tax consequences
to them of the purchase, ownership and disposition of shares or ADSs.
This summary is based in part on the assumption that each obligation under the deposit agreement and any related agreement
will be performed in accordance with its respective terms. Subject to the discussion in the next paragraph, for U.S. federal income tax
purposes, holders of ADSs will be treated as the owners of the shares represented by the ADSs. Accordingly, withdrawals or depositsof shares in exchange for ADSs generally will not be subject to U.S. federal income tax.
The U.S. Treasury has expressed concerns that intermediaries in the chain of ownership between the holder of an ADS and theissuer of the security underlying the ADS may be taking actions that are inconsistent with the beneficial ownership of the underlying
shares (for example, pre-releasing ADSs to persons who do not have beneficial ownership of the securities underlying the ADSs).
Accordingly, the discussion on the creditability of Japanese taxes and the availability of the reduced rate of tax for dividends received
by certain non-corporate U.S. holders, each as described below, could be affected by actions taken by intermediaries in the chain ofownership between the holder of ADSs and us if, as a result of such actions, the holders of ADSs are not properly treated as beneficial
owners of the underlying shares. We are not aware of any intention to take any such actions, and accordingly, the remainder of this
discussion assumes that holders of ADSs will be properly treated as beneficial owners of the underlying shares.
Special adverse U.S. federal income tax rules apply if a U.S. holder holds shares or ADSs of a company that is treated as a“passive foreign investment company” (a “PFIC”) for any taxable year during which the U.S. holder held shares or ADSs, as
discussed in more detail below. U.S. holders should consult their own tax advisors as to the potential application of the PFIC rules totheir ownership and disposition of shares or ADSs.
Taxation of Dividends
Subject to the application of the PFIC rules discussed below, U.S. holders will include the gross amount of any distribution
received with respect to shares or ADSs (before reduction for Japanese withholding taxes), to the extent paid out of our current oraccumulated earnings and profits (as determined for U.S. federal income tax purposes), as ordinary income in their gross income. As
discussed below, for certain U.S. holders, dividends may be eligible for a reduced rate of taxation. The amount of distribution ofproperty other than cash will be the fair market value of such property on the date of the distribution. Dividends received by a U.S.
holder will not be eligible for the “dividends-received deduction” allowed to U.S. corporations in respect of dividends received fromother U.S. corporations. To the extent that an amount received by a U.S. holder exceeds such holder’s allocable share of our current
earnings and profits, such excess will be applied first to reduce such holder’s tax basis in its shares or ADSs, thereby increasing theamount of gain or decreasing the amount of loss recognized on a subsequent disposition of the shares or ADSs. Then, to the extent
such distribution exceeds such U.S. holder’s tax basis, such excess will be treated as capital gain. However, we do not maintaincalculations of our earnings and profits in accordance with U.S. federal income tax principles, and U.S. holders should therefore
assume that any distribution by us with respect to shares or ADSs will constitute ordinary dividend income. The amount of the126Table of Contents
dividend will be the U.S. dollar value of the Japanese yen payments received. This value will be determined at the spot Japanese yen/
U.S. dollar rate on the date the dividend is received by the depositary in the case of U.S. holders of ADSs, or by the shareholder in thecase of U.S. holders of shares, regardless of whether the dividend payment is in fact converted into U.S. dollars at that time. If theJapanese yen received as a dividend are not converted into U.S. dollars on the date of receipt, a U.S. holder will have basis in such
Japanese yen equal to their U.S. dollar value on the date of receipt, and any foreign currency gains or losses resulting from theconversion of the Japanese yen will generally be treated as U.S. source ordinary income or loss. If the Japanese yen received as adividend are converted into U.S. dollars on the date of receipt, a U.S. holder will generally not be required to recognize foreign
currency gain or loss in respect of the dividend income.
If a U.S. holder is eligible for benefits under the Tax Convention, the holder may be able to claim a reduced rate of Japanese
withholding tax. All U.S. holders should consult their tax advisors about their eligibility for reduction of Japanese withholding tax. A
U.S. holder may claim a deduction or a foreign tax credit, subject to other applicable limitations, only for tax withheld at theappropriate rate. A U.S. holder would be allowed a foreign tax credit for withholding tax for any portion of the tax that could havebeen avoided by claiming benefits under the Tax Convention. For foreign tax credit limitation purposes, the dividend will be income
from sources outside the United States. The limitation on foreign taxes eligible for credit is calculated separately with respect tospecific classes of income. For this purpose, dividends we pay will constitute “passive income” or, in the case of certain U.S. holders,“financial services income.” However, recently issued Treasury regulations impose additional requirements for foreign taxes to beeligible for a foreign tax credit, and there can be no assurance that those requirements will be satisfied if a U.S. holder does not elect toapply the benefits of the Tax Convention. Further, in certain circumstances, if a U.S. holder:•

has held shares or ADSs for less than a specified minimum period during which such U.S. holder is not protected from therisk of loss; or•is obligated to make payments related to the dividends,

such U.S. holder will not be allowed a foreign tax credit for foreign taxes imposed on dividends paid on shares or ADSs. Insteadof claiming a foreign tax credit, a U.S. holder may be able to deduct Japanese withholding taxes on dividends in computing suchholder’s taxable income, subject to generally applicable limitations under U.S. law (including that a U.S. holder is not eligible for adeduction for creditable foreign income taxes paid or accrued in a taxable year if such U.S. holder claims a foreign tax credit for any
foreign income taxes paid or accrued in the same taxable year). The rules governing U.S. foreign tax credits are very complex and
U.S. holders should consult their tax advisors regarding the availability of foreign tax credits under their particular circumstances.
Subject to applicable exceptions with respect to short-term and hedged positions, qualified dividends received by non-corporate
U.S. holders from a qualified corporation may be eligible for reduced rates of taxation. Qualified corporations include those foreign
corporations eligible for the benefits of a comprehensive income tax treaty with the United States that the U.S. Treasury Department
determines to be satisfactory for these purposes and that includes an exchange of information provision. The Tax Convention meetsthese requirements. Subject to the PFIC discussion below, we believe that we are a qualified foreign corporation and that dividends
received by U.S. investors with respect to our shares or ADSs will be qualified dividends. Dividends received by U.S. investors from aforeign corporation that was a PFIC in either the taxable year of the distribution or the preceding taxable year are not qualified
dividends.
Passive Foreign Investment Company Considerations
Special adverse U.S. federal income tax rules apply if a U.S. holder holds shares or ADSs of a company that is treated as a
PFIC, for any taxable year during which the U.S. holder held shares or ADSs. A foreign corporation will be considered a PFIC for any
taxable year in which (i) 75% or more of its gross income is passive income (the “income test”), or (ii) 50% or more of the averagefair market value of its assets (determined quarterly) is attributable to assets that produce or are held for the production of passive
income (the “asset test”). For this purpose, passive income generally includes dividends, interest, royalties, rents and certain gains
from the sale of stock and securities. If a foreign corporation owns at least 25% (by value) of the stock of another corporation, thecorporation will be treated, for purposes of the PFIC tests, as owning a proportionate share of the other corporation’s assets andreceiving its proportionate share of the other corporation’s income. The determination of whether a foreign corporation is a PFIC is
made annually.
Multiple sets of proposed Treasury regulations and an earlier IRS notice would convert what would otherwise be passive income
into non-passive income when such income is banking income earned by an active bank. The various proposed Treasury regulations
and IRS notice have different (and in some respects inconsistent) requirements for qualifying as an active bank, and for determining
the banking income that may be excluded from passive income under this special rule for active banks. Moreover, the proposed
Treasury regulations (some of which have been outstanding since 1995, and others of which were recently issued in 2021) will not beeffective unless finalized. There can be no assurance that the proposed Treasury regulations will be finalized in their current form.
Because final regulations have not been issued, the definition of banking income for purposes of the active bank exception is unclear
under both the proposed Treasury regulations and the notice. Based upon certain management estimates and assumptions, we do notbelieve that we were a PFIC for the year ended March 31, 2024. The determination of whether we are a PFIC must be made annually127

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and involves a fact-intensive analysis based upon, among other things, the composition of our income and assets and the value of ourassets from time to time. It is possible that we may become a PFIC in the fiscal year ending March 31, 2025 or any future taxable year
due to changes in our income or asset composition or changes to applicable Treasury and IRS guidance (including as a result of the
final regulations). In addition, a decrease in the price of our shares may also result in our becoming a PFIC. If we were classified as a
PFIC in any year during which a U.S. holder owns shares or ADSs and the U.S. holder does not make a “mark-to-market” election, as
discussed below, we generally would continue to be treated as a PFIC as to such U.S. holder in all succeeding years, regardless ofwhether we continue to meet the income or asset test discussed above. U.S. Holders are urged to consult their own tax advisors withrespect to the tax consequences to them if we were to become a PFIC for any taxable year in which they own our shares or ADSs.
If we were classified as a PFIC for any taxable year during which a U.S. holder holds our shares or ADSs, the U.S. holder would
generally not receive capital gains treatment upon the sale of the shares or ADSs and would be subject to increased tax liability(generally including an interest charge) upon the sale or other disposition of the shares or ADSs or upon the receipt of certain
distributions treated as “excess distributions,” unless the U.S. holder makes the mark-to-market election described below. An excess
distribution generally would be any distribution to a U.S. holder with respect to shares or ADSs during a single taxable year that isgreater than 125% of the average annual distributions received by a U.S. holder with respect to shares or ADSs during the three
preceding taxable years or, if shorter, during the U.S. holder’s holding period for the shares or ADSs.
Mark-to-Market Election. If the shares or ADSs are regularly traded on a registered national securities exchange or certain otherexchanges or markets, then such shares or ADSs would constitute “marketable stock” for purposes of the PFIC rules, and a U.S.
holder would not be subject to the foregoing PFIC rules if such holder made a mark-to-market election. After making such an election,
the U.S. holder generally would include as ordinary income each year during which the election is in effect and during which we are a
PFIC the excess, if any, of the fair market value of our shares or ADSs at the end of the taxable year over such holder’s adjusted basis
in such shares or ADSs. These amounts of ordinary income would not be eligible for the favorable tax rates applicable to qualified
dividend income or long-term capital gains. A U.S. holder also would be allowed to take an ordinary loss in respect of the excess, ifany, of the holder’s adjusted basis in our shares or ADSs over their fair market value at the end of the taxable year (but only to theextent of the net amount of income that was previously included as a result of the mark-to-market election). A U.S. holder’s tax basis
in our shares or ADSs would be adjusted to reflect any income or loss amounts resulting from a mark-to-market election. If made, amark-to-market election would be effective for the taxable year for which the election was made and for all subsequent taxable years
unless the shares or ADSs cease to qualify as “marketable stock” for purposes of the PFIC rules or the IRS consented to the revocationof the election. In the event that we are classified as a PFIC, U.S. holders are urged to consult their tax advisors regarding theavailability of the mark-to-market election, and whether the election would be advisable in the holder’s particular circumstances.
QEF Election. The PFIC rules outlined above also would not apply to a U.S. holder if such holder alternatively elected to treat
us as a “qualified electing fund” or “QEF.” An election to treat us as a QEF will not be available, however, if we do not provide theinformation necessary to make such an election. We will not provide U.S. holders with the information necessary to make a QEF
election, and thus, the QEF election will not be available with respect to our shares.
Notwithstanding any election made with respect to our shares, dividends received with respect to our shares will not constitute“qualified dividend income” if we are a PFIC in either the year of the distribution or the preceding taxable year. Dividends that do notconstitute qualified dividend income are not eligible for taxation at the reduced tax rate described above in “—Taxation of Dividends.”
Instead, such dividends would be subject to tax at ordinary income rates.
If a U.S. holder owns shares or ADSs during any year in which we are a PFIC, the U.S. holder must also file IRS Form 8621
regarding distributions received on the shares or ADSs, any gain realized on the shares or ADSs, and any “reportable election” inaccordance with the instructions to such form. In addition, each U.S. holder is required to file a separate IRS Form 8621 if such U.S.
holder owns shares or ADSs during any year in which we are a PFIC whether or not such U.S. holder received distributions on theshares or ADSs, realized a gain on the shares or ADSs or made a “reportable election” during such year. U.S. holders are urged toconsult their own tax advisors concerning the U.S. federal income tax consequences of holding shares or ADSs if the Company wereconsidered a PFIC in any taxable year.
Taxation of Capital Gains
Subject to the application of the PFIC rules discussed above, upon a sale or other disposition of shares or ADSs, a U.S. holder
will recognize a gain or loss in an amount equal to the difference between the U.S. dollar value of the amount realized and the U.S.
holder’s tax basis, determined in U.S. dollars, in such shares or ADSs. Such gains or losses will be capital gains or losses and will belong-term capital gains or losses if the U.S. holder’s holding period for such shares or ADSs exceeds one year. Long-term capitalgains of non-corporate U.S. holders (including individuals) are generally eligible for reduced rates of taxation. A U.S. holder’sadjusted tax basis in its shares or ADSs will generally be the cost to the holder of such shares or ADSs. Any such gains or losses
realized by a U.S. holder upon disposal of the shares or ADSs will generally be income or loss from sources within the United States
for foreign tax credit limitation purposes. The deductibility of capital losses is subject to limitations under the Code.

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Information Reporting and Backup Withholding
Dividends paid on shares or ADSs to a U.S. holder, or proceeds from a U.S. holder’s sale or other disposition of shares or ADSs,
may be subject to information reporting requirements. Those dividends or proceeds from sale or disposition may also be subject tobackup withholding unless the U.S. holder:•

is a corporation or other exempt recipient, and, when required, demonstrates this fact; or•provides a correct taxpayer identification number on a properly completed U.S. IRS Form W-9 or other appropriate form
which certifies that the U.S. holder is not subject to backup withholding and otherwise complies with applicablerequirements of the backup withholding rules.

Backup withholding is not an additional tax. Any amount withheld under these rules will be creditable against the U.S. holder’sU.S. federal income tax liability or refundable to the extent that it exceeds such liability if the U.S. holder provides the required
information to the IRS. If a U.S. holder is required to and does not provide a correct taxpayer identification number, the U.S. holder
may be subject to penalties imposed by the IRS. All holders should consult their tax advisors as to their qualification for the exemption
from backup withholding and the procedure for obtaining an exemption.
In addition, certain U.S. holders who are individuals that hold certain foreign financial assets (which may include our shares or
ADSs) are required to report information relating to such assets, subject to certain exceptions. U.S. holders should consult their tax
advisors regarding the effect, if any, of this requirement on their ownership and disposition of our shares and ADSs.
Additional Tax on Investment Income
U.S. holders that are individuals, estates or trusts and whose income exceeds certain thresholds will be subject to an additional
3.8% tax on unearned income, including, among other things, dividends on, and capital gains from the sale or other taxable dispositionof, shares or ADSs, subject to certain limitations and exceptions.
F.

Dividends and Paying Agents
Not applicable.

G.

Statement by Experts
Not applicable.

H.

Documents on Display

We file periodic reports and other information with the SEC pursuant to the rules and regulations of the SEC that apply toforeign private issuers. The SEC maintains a web site (http://www.sec.gov) that contains periodic reports and other information
regarding registrants, including us, electronically filed with the SEC. Except otherwise specified in this Annual Report, no information
is incorporated by reference in this Annual Report (including, without limitation, information on our website at https://www.mufg.jp/).
I.

Subsidiary Information
Please refer to the discussion under “Item 4.C. Information on the Company—Organizational Structure.”J.

Annual Report to Security Holders

We furnished an English translation of our local annual report to security holders for the fiscal year ended March 31, 2024 inelectronic format as exhibits to a report on Form 6-K, dated May 29, 2024.
Following the filing of our annual report on Form 20-F for the fiscal year ended March 31, 2023, we furnished an English
translation of our local annual disclosure document entitled “MUFG Report 2023” in electronic format as an exhibit to a report on
Form 6-K, dated August 31, 2023.

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Item 11.

Quantitative and Qualitative Disclosures about Credit, Market and Other Risk.

In the current market and regulatory environment, financial groups such as us are expected to ensure increasingly moresophisticated and comprehensive risk management. Risk management plays an increasingly important role in our operations as afinancial group operating globally through various subsidiaries.
We identify various risks arising from businesses based on group-wide uniform criteria and implement integrated risk
management to ensure a stronger financial condition and to maximize shareholder value. Based on this approach, we identify,
measure, control and monitor a wide variety of risks so as to achieve a stable balance between earnings and risks. We undertake risk
management to create an appropriate capital structure and to achieve optimal allocation of resources. However, our risk management
measures may not be fully effective in identifying all risks or mitigating the impact of any materialized risk on us.

Risk Classification
At the holding company level, we broadly classify and define risk categories faced by the Group, including those that aresummarized below. Group companies perform more detailed risk management based on their respective operations.

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Type of Risk

Definition

Credit Risk

The risk of financial loss in credit assets (including off-balance sheet instruments) caused bydeterioration in the credit condition of counterparties. This category includes country risk.

Market Risk

The risk of financial loss where the value of our assets and liabilities could be adversely
affected by changes in market variables such as interest rates, securities prices and foreignexchange rates. Market liquidity risk is the risk of financial loss caused by the inability tosecure market transactions at the required volume or price levels as a result of market
turbulence or lack of trading liquidity.

Funding Liquidity Risk

The risk of incurring loss if a poor financial position at a group company hampers the ability
to meet funding requirements or necessitates fund procurement at interest rates markedly
higher than normal.

Operational Risk

The risk of loss resulting from inadequate or failed internal processes, people or systems, orfrom external events.

•

Operations Risk

The risk of incurring losses arising from negligence of correct operational processing,incidents or misconduct involving officers or staff, as well as risks similar to this risk.

•

Information Risk

The risk of loss caused by loss, alteration, falsification or leakage of personal or otherconfidential information, as well as risks similar to such risk.

•

IT Risk

The risk of loss arising from destruction, suspension, malfunction or misuse of IT, or
unauthorized alteration and leakage of electronic data caused by insufficient IT systems
planning, development or operations or by vulnerabilities of or external threats to IT systemsecurity, including cybersecurity, as well as risks similar to such risk.

•

Tangible Asset Risk

The risk of loss due to damage to tangible assets or deterioration in the operational
environment caused by disasters or inadequate asset maintenance, as well as risks similar tothis risk. Tangible assets include movable and immovable property, including owned orleased land and buildings, facilities incidental to buildings, and fixtures and fittings.

•

Personnel Risk

The risk of loss due to an outflow or loss of human resources or deterioration in employee
morale, as well as risks similar to this risk.

•

Incompliance with Laws andRegulations Risk

The risk of loss due to failure to comply with laws and regulations, as well as risks similar tosuch risk.

•

Legal Risk

The risk of loss due to failure to identify or address legal issues relating to contracts andother business operations or insufficient handling of lawsuits, as well as risks similar to suchrisk.

Reputation Risk

The risk of harm to our corporate value arising from perceptions of our customers,
shareholders, investors or other stakeholders and in the market or society that we deviate
from their expectations or confidence.

Model Risk

The risk of loss due to decision-making based on information provided by an inaccurate
model or the misuse of a model.

Risk Management System
We have adopted an integrated risk management system to promote close cooperation among the holding company and groupcompanies. The holding company and our banking and securities subsidiaries each have appointed a chief risk officer and established
an independent risk management division. The board of directors of the holding company determines risk management policies forvarious types of risks based on the discussions at, and reports and recommendations from, committees established specially for risk
management purposes. The holding company has established committees to oversee management in managing risks relevant to theGroup. Following the fundamental risk management policies determined by the board of directors, each group company establishes its
own systems and procedures for identifying, analyzing and managing various types of risks from both quantitative and qualitative
perspectives. The holding company seeks to enhance group-wide risk identification, to integrate and improve the Group’s risk
management system and related methods, to maintain asset quality, and to eliminate concentrations of specific risks.
The following diagram summarizes our integrated risk management framework:

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Risk Management System

Crisis Management Framework
In order to have a clear critical response rationale and associated decision-making criteria, we have developed systems designed
to ensure that our operations are not interrupted or can be restored to normal quickly in the event of a crisis such as a natural disaster, apandemic of an infectious disease or system failure so as to minimize any disruption to customers and markets. A crisis management
team within the holding company is the central coordinating body in the event of any emergency. Based on information collected fromcrisis management personnel at the major subsidiaries, this central body would assess the overall impact of a crisis on the Group’sbusiness and establish task forces that could implement all countermeasures to restore full operations. We have business continuity

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plans to maintain continuous operational viability in the event of natural disasters, system failures and other types of emergencies.
Regular training drills are conducted to upgrade the practical effectiveness of these systems.
We conduct a comprehensive review of our existing business continuity plan to more effectively respond to such extreme
scenarios, and contemplate and implement measures to augment our current business continuity management framework, including
enhancing our off-site back-up data storage and other information technology systems.
Implementation of Basel Standards
In determining capital ratios under the FSA guidelines implementing Basel III, we and our major banking subsidiaries used theAdvanced Internal Ratings-Based approach, or the AIRB approach, to calculate capital requirements for credit risk as of March 31,
2024. As of the same date, we reflected market risk in our risk-weighted assets by using the Standardized Approach and the Simplified
Standardized Approach, and reflected operational risk in our risk-weighted assets by using the Standardized Measurement Approach.
Based on the Basel III framework, the Japanese capital ratio framework has been revised to implement the more stringent
requirements, which are being implemented in phases beginning on March 31, 2013. Likewise, local banking regulators outside ofJapan have begun, or are expected, to revise the capital and liquidity requirements imposed on our subsidiaries and operations in thosecountries to implement the more stringent requirements of Basel III as adopted in those countries. We intend to carefully monitor
further developments with an aim to enhance our corporate value and maximize shareholder value by integrating the various strengths
within the Group. For more information on the Basel regulatory framework and requirements, see “Item 4.B. Information on the
Company—Business Overview—Supervision and Regulation.”
Credit Risk Management
We have established risk management systems to maintain asset quality, manage credit risk exposure and achieve earnings
commensurate with risk.
MUFG and its major banking subsidiaries apply a uniform credit rating system for asset evaluation and assessment, loan pricing,and quantitative measurement of credit risk. This system also underpins the calculation of capital requirements and the management ofcredit portfolios. We continually seek to upgrade our credit portfolio management, or CPM, expertise to achieve an improved riskadjusted return based on the Group’s credit portfolio status and flexible response capability to economic and other external changes.
Credit Risk Management System
The credit portfolios of our banking and securities subsidiaries are monitored and assessed on a regular basis by the holding
company to maintain and improve asset quality. A uniform credit rating and asset evaluation and assessment system is used to ensure
timely and proper evaluation of all credit risks. Under our credit risk management system, each of our subsidiaries in the banking,securities, consumer finance, and leasing businesses, manages its respective credit risk on a consolidated basis based on the attributesof the risk, while the holding company oversees and manages credit risk on an overall group-wide basis. The holding company also
convenes regular committee meetings to monitor credit risk management at banking subsidiaries and to issue guidance where
necessary.
Each major banking subsidiary has in place a system of checks and balances in which a credit administration section that is
independent of the business promotion sections screens individual transactions and manages the extension of credit. At the
management level, regular meetings of the Credit & Investment Management Committee and related deliberative bodies ensure full
discussion of important matters related to credit risk management. Besides such checks and balances and internal oversight systems,
credit examination sections also undertake credit testing and evaluation to ensure appropriate credit risk management.

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The following diagram summarizes the credit risk management framework for our major banking subsidiaries:

Credit Rating System
MUFG and its major banking subsidiaries use an integrated credit rating system to evaluate credit risk. The credit rating system
consists primarily of borrower rating, facility risk rating, structured finance rating and asset securitization rating.
Country risk is also rated on a uniform group-wide basis. Our country risk rating is reviewed periodically to take into accountrelevant political and economic factors, including foreign currency availability.
Risk exposure for small retail loans, such as residential mortgage loans, is managed by grouping loans into various pools andassigning ratings at the pool level.
Borrower rating
Our borrower rating classifies borrowers into 15 grades based on evaluations of their expected debt-service capability over the
next three to five years.

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The following table sets forth our borrower grades:
Definition of MUFG Borrower Rating
MUFG
Borrower
Rating

MUFG Borrower Rating Definition

1

The capacity to meet financial commitments is extremely certain, and the borrower has the highest level of creditworthiness.

2

The capacity to meet financial commitments is highly certain, but there are some elements that may result in lower creditworthinessin the future.

3

The capacity to meet financial commitments is sufficiently certain, but there is the possibility that creditworthiness may fall in thelong run.

4

There are no problems concerning the capacity to meet financial commitments, but there is the possibility that creditworthiness may
fall in the long run.

5

There are no problems concerning the capacity to meet financial commitments, and creditworthiness is in the middle range.

6

There are no problems concerning the capacity to meet financial commitments presently, but there are elements that require attention
if the situation changes.

7

There are no problems concerning the capacity to meet financial commitments presently, but long-term stability is poor.

8

There are no problems concerning the capacity to meet financial commitments presently, but long-term stability is poor, andcreditworthiness is relatively low.

9

The capacity to meet financial commitments is somewhat poor, and creditworthiness is the lowest among “Normal” customers.
Borrowers who must be closely monitored because of the following business performance and financial conditions:10 through 12(1)

Borrowers who have problematic business performance, such as virtually delinquent principal repayment or interest
payment;(2)

Borrowers whose business performance is unsteady, or who have unfavorable financial conditions;(3)

Borrowers who have problems with loan conditions and for whom interest rates have been reduced or shelved.

10

Although business problems are not serious or their improvement is seen to be remarkable, there are elements of potential concern
with respect to the borrower’s management, and close monitoring is required.

11

Business problems are serious, or require long-term solutions. Serious elements concerning business administration of the borrower
have emerged, and subsequent debt repayment needs to be monitored closely.

12

Borrowers who fall under the criteria of Rating 10 or 11 and have a loan concession granted. Borrowers who have “Loans
contractually past due 90 days or more.” (As a rule, delinquent borrowers are categorized as “Likely to Become Bankrupt,” but thedefinition here applies to borrowers delinquent for 90 days or more because of inheritance and other special reasons.)

13

Borrowers who pose a serious risk with respect to debt repayment and with whom loss is likely to occur in the course of transactions.
While still not bankrupt, these borrowers are in financial difficulty, with poor progress in achieving restructuring plans, and are likely
to become bankrupt in the future.

14

While not legally bankrupt, borrowers who are considered to be virtually bankrupt because they are in serious financial difficulty andhave no prospects for an improvement in their business operations.

15

Borrowers who are legally bankrupt (i.e., who have no prospects for continued business operations because of non-payment,
suspension of business, voluntary liquidation, or filing for legal liquidation).

Japanese banks were historically required to use the following categories of borrowers under the then applicable FSA inspection
manual, which was abolished in December 2019, and are currently expected to use them as a basis for their borrower categorization
with appropriate adjustments under the FSA’s discussion paper:•

Normal borrowers (generally corresponding to borrowers in categories 1 through 9 in our ratings), which are borrowersthat are performing well, with no significant financial concerns,•

Borrowers requiring close watch (generally corresponding to borrowers in categories 10 through 12 in our ratings), which
include loans that have been amended to allow for delays or forgiveness of interest payments, borrowers experiencing
difficulty in complying with loan terms and conditions and borrowers that are recording losses or performing badly,•

Borrowers likely to become bankrupt (generally corresponding to borrowers in category 13 in our ratings), which relate toborrowers who pose a serious risk with respect to debt repayment and with whom loss is likely to occur in the course oftransactions. While still not bankrupt, these borrowers are in financial difficulty, with poor progress in achieving
restructuring plans, and are likely to become bankrupt in the future,•

Virtually bankrupt borrowers (generally corresponding to borrowers in category 14 in our ratings), which are not legallybankrupt, but borrowers who are considered to be virtually bankrupt because they are in serious financial difficulty andhave no prospects for an improvement in their business operations, and135

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Bankrupt borrowers or de facto bankrupt borrowers (generally corresponding to borrowers in category 15 in our ratings),
which are borrowers who are legally bankrupt (i.e., who have no prospects for continued business operations because of
non-payment, suspension of business, voluntary liquidation, or filing for legal liquidation proceedings).

The primary data utilized in our assessment of borrowers include the borrower’s financial statements and notes thereto as well asother public disclosure made by the borrower. In addition, when appropriate and possible, we obtain non-public financial andoperating information from borrowers, such as the borrower’s business plan, borrower’s self-evaluation of its operating assets andother borrower information about its business and products.
Based on the borrower and industry information, we assign borrower ratings mainly by applying financial scoring models—either developed internally or by third-party vendors, depending on the borrower’s attributes, whether the borrower is domestic or
foreign, whether the borrower is a large corporation or a small and medium-sized corporation, and whether the borrower is a corporate
entity or another type of legal entity (such as a school, hospital or fund).
For example, for domestic small and medium-sized corporations, which constitute the largest borrower attribute in our current
loan portfolio in terms of number of borrowers, we have adopted an internally developed financial scoring model, exclusively
designed and developed for such attribute. We have selected various financial ratios that we believe to be useful and meaningful toquantitatively measure and assess the borrowers’ financial standing and repayment capability. Such financial ratios represent, among
other things, borrowers’ growth, profitability, stability, cash flow, company size and capital efficiency. The model is periodicallytested against historical results. The following is an illustration of some of the financial ratios we utilize as part of our financial scoringmodel:•To measure growth: Sales growth, and growth in total assets,•

To measure profitability: Current profit to sales, and profit before tax to sales, and•To measure stability: Equity ratio and current ratio.

The financial score obtained through the models is reviewed and, when necessary, adjusted downward to reflect our qualitative
assessment of the borrower’s financial strength and other factors that could affect the borrower’s ability to service the debt. For
example, we take into account: capability of turning around the business (in case of borrowers with losses) or recovering positive net
worth (in case of borrowers with negative net worth), industry risk, management risk, legal risk, as well as our assessment of theprobability of receiving support from parent companies (if the borrower is a subsidiary of a large listed company).
When adjusting the results of primary financial scoring assigned to borrowers with losses, we consider the severity of losses andthe possibility of improving operating results. We analyze and assess whether the loss is temporary, the trend in operating results is
improving, or the loss is expected to continue for an extended period. When adjusting the results of primary financial scoring assigned
to borrowers with losses or borrowers with negative net worth, we also analyze whether the borrower can return to a positive net
worth, and the time period needed to achieve such recovery (one to two years, three to five years, or five years or more).
In addition, adjustments based on industry risk are based on future prospects, applicable laws and regulations, and other factors
surrounding the industry. Adjustments for management risk reflect our assessment of management’s track record, the composition of
the management team including the board of directors, any management succession plan as well as the risk management andcompliance framework of the borrower. Adjustments for legal risk are made when the borrower is facing a lawsuit and when there is apossibility of a significant claim payment related to product liability, intellectual property, environmental problems, building standard
law, and other legal issues.
When assessing the probability of receiving support from parent companies, various factors are examined, such as the parent
company’s credit standings, whether key management personnel are sent by the parent, whether the borrower is consolidated by theparent, and the proportion of the borrower in consolidated sales and profits of the parent.
In addition, we consider outside ratings, and our internal borrower ratings may be adjusted when deemed appropriate.
Facility risk rating
Facility risk rating is used to evaluate and classify the quality of individual credit facilities, including guarantees and collateral.
Ratings are assigned by quantitatively measuring the estimated loss rate of a facility in the event of a default.
Structured finance rating and asset securitization rating
Structured finance rating and asset securitization rating are used to evaluate and classify the quality of individual credit facilities,
including guarantees and collateral, and focus on the structure, including the applicable credit period, of each credit facility. In
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evaluating the debt service potential of a credit facility, we scrutinize its underlying structure to determine the likelihood of theplanned future cash flows being achieved.
Pool assignment
Each major banking subsidiary has its own system for pooling and rating small retail loans designed to reflect the risk profile ofits loan portfolios.
Asset evaluation and assessment system
The asset evaluation and assessment system is used to classify assets held by us according to the probability of collection andthe risk of any impairment in value based on borrower classifications consistent with the borrower ratings and the status of collateral,guarantees, and other factors.
The system is used to conduct write-offs and allocate allowances against credit risk in a timely and adequate manner.
Quantitative Analysis of Credit Risk
MUFG and its major banking subsidiaries manage credit risk by monitoring credit amount and expected losses, and run
simulations based on internal models to estimate the maximum amount of credit risk. These models are used for internal management
purposes, including loan pricing and measuring economic capital.
When quantifying credit risk amounts using the internal models, MUFG and its major banking subsidiaries consider various
parameters, including the probability of default, loss given default, and exposure at default used in their borrower ratings, facility risk
ratings and pool assignments as well as any credit concentration risk in particular borrower groups or industry sectors. MUFG and its
major banking subsidiaries also share credit portfolio data in appropriate cases.
Loan Portfolio Management
We aim to achieve and maintain levels of earnings commensurate with credit risk exposure. Products are priced to take into
account expected losses, based on the internal credit ratings.
We assess and monitor loan amounts and credit exposure by credit rating, industry and region. Portfolios are managed to limit
concentrations of risk in specific categories in accordance with our Large Credit Guidelines.
To manage country risk, we have established specific credit ceilings by country. These ceilings are reviewed when there is amaterial change in a country’s credit standing, in addition to being subject to a regular periodic review.
Continuous CPM Improvement
With the prevalence of securitized products and credit derivatives in global markets, we seek to supplement conventional CPM
techniques with advanced methods based on the use of such market-based instruments.
Through credit risk quantification and portfolio management, we aim to improve the risk return profile of the Group’s credit
portfolio, using financial markets to rebalance credit portfolios in a dynamic and active manner based on an accurate assessment ofcredit risk.
Risk Management of Strategic Equity Portfolio
We hold shares of various corporate clients for strategic purposes, in particular to maintain long-term relationships with theseclients. These investments have the potential to increase business revenue and appreciate in value. At the same time, we are exposed to
the risk of price fluctuations in the Japanese stock market. For that reason, in recent years, it has been a high priority for us to reduce
our equity portfolio to limit the risks associated with holding a large equity portfolio, but also to respond to applicable regulatory
requirements as well as increasing market expectations and demands for us to reduce our equity portfolio. We are required to comply
with a regulatory framework that prohibits Japanese banks from holding an amount of shares in excess of their adjusted Tier 1 capital.
See “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Financial Condition—Investment
Portfolio.”137

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We use quantitative analysis to manage the risks associated with the portfolio of equities held for strategic purposes. According
to internal calculations, the market value of our strategically held (Tokyo Stock Exchange-listed) stocks (excluding foreign stock
exchange-listed stocks) as of March 31, 2024 was subject to a variation of approximately ¥1.9 billion when TOPIX index moves one
point in either direction.
We seek to manage and reduce strategic equity portfolio risk based on quantitative analysis such as the sensitivity analysis
described above. The aim is to keep this risk at appropriate levels compared with Tier 1 capital while generating returns commensuratewith the degree of risk exposure.
Market Risk Management
Management of market risk at MUFG aims to control our risk exposure to fluctuations in market variables across the Group
while ensuring that earnings are commensurate with levels of risk.
Market Risk Management System
We have adopted an integrated system to manage market risk from our trading and non-trading activities. The holding company
monitors group-wide market risk, while each of the major subsidiaries manages its market risks on a consolidated and global basis.
At each of the major subsidiaries, checks and balances are maintained through a system in which back and middle offices
operate independently from front offices. In addition, separate Asset-Liability Management, or ALM, Committee and Risk
Management Meetings are held at each of the major subsidiaries every month to deliberate important matters related to market risk
and control.
The holding company and the major subsidiaries allocate economic capital commensurate with levels of market risk anddetermined within the scope of their capital bases. The major subsidiaries have established quantitative limits relating to market risk
based on their allocated economic capital. In addition, in order to keep losses within predetermined limits, the major subsidiaries havealso set limits for the maximum amount of losses arising from market activities. The following diagram summarizes the market risk
management system of each major subsidiary:Market Risk Management System of Our Major Subsidiaries

Market Risk Management and Control
At the holding company and the major subsidiaries, market risk exposure is reported to the Chief Risk Officers on a daily basis.
At the holding company, the Chief Risk Officer monitors market risk exposure across the Group as well as the major subsidiaries’
control over their quantitative limits for market risk and losses. Meanwhile, the Chief Risk Officers at the major subsidiaries monitor
their own market risk exposure and their control over their quantitative limits for market risk and losses. In addition, various analyses
on risk profiles, including stress testing, are conducted and reported to the Executive Committees and the Corporate Risk Management
Committees on a regular basis. At the business unit levels in the major subsidiaries, the market risks on their marketable assets andliabilities, such as interest rate risk and foreign exchange rate risk, are controlled by entering into various hedging transactions using
marketable securities and derivatives.
As part of our market risk management activities, we use certain derivative financial instruments to manage our interest rate andcurrency exposures. We maintain an overall interest rate risk management strategy that incorporates the use of interest rate contracts to138

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minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. We enter into interest rate swaps andother contracts as part of our interest rate risk management strategy primarily to alter the interest rate sensitivity of our loans,investment securities and deposit liabilities. Our principal objectives in risk management include asset and liability management. Assetand liability management is viewed as one of the methods for us to manage our interest rate exposures on interest-earning assets andinterest-bearing liabilities. Interest rate contracts, which are generally non-leveraged generic interest rate and basis swaps, options andfutures, allow us to effectively manage our interest rate risk position. Option contracts primarily consist of caps, floors, swaptions andoptions on index futures. Futures contracts used for asset and liability management activities are primarily index futures providing forcash payments based upon the movement of an underlying rate index. We enter into forward exchange contracts, currency swaps andother contracts in response to currency exposures resulting from on-balance sheet assets and liabilities denominated in foreign
currencies in order to limit the net foreign exchange position by currency to an appropriate level.
These market risk management activities are performed in accordance with the predetermined rules and procedures. The internal
auditors regularly verify the appropriateness of the management controls over these activities and the risk evaluation models adopted.
Market Risk Measurement Model
To measure market risks, MUFG uses the VaR method which estimates changes in the market value of portfolios within acertain period by statistically analyzing past market data. Since the daily variation in market risk is significantly greater than that inother types of risk, MUFG measures and manages market risk using VaR on a daily basis.
Market risk for trading and non-trading activities is measured using a market risk measurement model. The principal model
used for these activities is a historical simulation, or HS, model (Trading activities: holding period, one business day; confidence
interval, 95%; and observation period, 250 business days. Non-trading activities (which include available-for-sale debt securities aswell as loans, deposits and held-to-maturity debt securities): holding period, 10 business days; confidence interval, 99%; andobservation period, 701 business days). The HS model calculates VaR amounts by estimating the profit and loss on the current
portfolio by applying actual fluctuations in market rates and prices over a fixed period in the past. This method is designed to capture
certain statistically infrequent movements, such as a fat tail. Changes in the fair value of loans, deposits and held-to-maturity debt
securities are considered in the Non-trading activities, while such changes are not reflected in our financial statements.
In calculating VaR using the HS method, we have implemented an integrated market risk measurement system throughout theGroup. Our major subsidiaries calculate their VaR based on the risk and market data prepared by the information systems of their front
offices and other departments. The major subsidiaries provide this risk data to the holding company, which calculates overall VaR,
taking into account the diversification effect among all portfolios of the major subsidiaries.
For the purpose of internally evaluating capital adequacy on an economic capital basis in terms of market risk, we use thismarket risk measurement model to calculate risk amounts based on a holding period of one year and a confidence interval of 99.9%.
Monitoring and managing our sensitivity to interest rate fluctuations is the key to managing market risk in MUFG’s non-trading
activities. The major banking subsidiaries take the following approach to measuring risks concerning core deposits, loan prepayments
and early deposit withdrawals.
To measure interest rate risk relating to deposits without contract-based fixed maturities, the amount of “core deposits” iscalculated through a statistical analysis based on deposit balance trend data and the outlook for interest rates on deposits, businessdecisions, and other factors. The amount of “core deposits” is categorized into various groups of maturity terms of up to ten years torecognize interest rate risk. The calculation assumptions and methods to determine the amount of core deposits and maturity termcategorization are regularly reviewed.
Meanwhile, deposits and loans with contract-based maturities are sometimes cancelled or repaid before their maturity dates. To
measure interest rate risk for these deposits and loans, we reflect these early termination events mainly by applying early termination
rates calculated based on a statistical analysis of historical repayment and cancellation data together with historical market interest rate
data.
Summaries of Market Risks
Trading activities
The aggregate VaR for our total trading activities as of March 31, 2024 was ¥1.74 billion, comprising interest rate risk exposureof ¥1.51 billion, foreign exchange risk exposure of ¥0.61 billion, and equity-related risk exposure of ¥0.86 billion. Our average daily
VaR for the fiscal year ended March 31, 2024 was ¥2.63 billion.

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Due to the nature of trading operations which involves frequent changes in trading positions, market risk may vary substantiallyduring and between measurement periods, depending on our trading positions.
The following tables set forth the VaR related to our trading activities by risk category for the periods indicated:
April 1, 2022—March 31, 2023

Average

Maximum(1)Minimum(1)March 31, 2023

(in billions)

MUFG
Interest rate
Yen
U.S. Dollars
Foreign exchange
Equities
Commodities
Less diversification effect¥

April 1, 2023—March 31, 2024

2.14 ¥
2.02
1.19
1.43
0.64
0.22
0.00
(0.74)
Average

3.25
2.74
2.41
1.92
1.36
0.55
0.01
—

¥

Maximum(1)

1.25
1.36
0.76
0.89
0.21
0.07
0.00
—

¥

Minimum(1)

2.88
2.27
1.21
1.55
1.23
0.25
0.00
(0.87)March 31, 2024

(in billions)

MUFG
Interest rate
Yen
U.S. Dollars
Foreign exchange
Equities
Commodities
Less diversification effect¥2.63 ¥
2.36
1.44
1.62
1.15
0.31
0.00
(1.19)

3.45
3.64
2.50
3.09
1.81
0.90
0.01
—

¥

1.62
1.27
0.86
0.71
0.60
0.11
0.00
—

¥

1.74
1.51
0.86
0.81
0.61
0.86
0.00
(1.24)

Assumptions for VaR calculations:

Historical simulation method
Holding period: 1 business day
Confidence interval: 95%
Observation period: 250 business days
Note:(1) The maximum and minimum VaR overall and for various risk categories were taken from different days. A simple summation of
VaR by risk category is not equal to total VaR due to the effect of diversification.
The average daily VaR by quarter in the fiscal year ended March 31, 2024 was as follows:
Quarter

Daily average VaR(in billions)

April—June 2023
July—September 2023
October—December 2023
January—March 2024

¥

2.83
3.02
2.68
1.97

Non-trading Activities
The aggregate VaR for our total non-trading activities as of March 31, 2024, excluding market risks related to our strategic
equity portfolio, was ¥578.2 billion. Market risk related to interest rates equaled ¥501.4 billion and equities-related risk equaled140

Table of Contents¥118.8 billion. Compared with the VaR as of March 31, 2023, market risk decreased in the fiscal year ended March 31, 2024,
primarily due to the decrease in U.S. dollar interest rate risk, partially offset by the increase in Japanese yen interest rate risk reflecting
greater volatility in interest rates in Japan resulting from the actual or perceived changes in the Bank of Japan's monetary policy.
Based on a simple sum of figures across market risk categories, interest rate risks accounted for approximately 80% of our total
non-trading activity market risks as of March 31, 2024. Looking at a breakdown of interest rate related risk by currency, as of March
31, 2024, the Japanese yen accounted for approximately 53% while the U.S. dollar accounted for approximately 45%, and the euro
approximately 2%, with a 24 percentage point increase in the Japanese yen, a 22 percentage point decrease in the U.S. dollar and a 2
percentage point decrease in the euro compared to March 31, 2023.
For a description of our strategic equity investment risk management, see “—Risk Management of Strategic Equity Portfolio.”
The following tables set forth the VaR related to our non-trading activities by risk category for the periods indicated:

April 1, 2022—March 31, 2023

Maximum(1)Average

Minimum(1)March 31, 2023

(in billions)Interest rate
Yen
U.S. Dollars
Foreign exchange
Equities(2)Commodities
Less diversification effect
Total

¥

628.4
272.0
439.6

¥

4.4
156.8
0.1
(72.4)
717.3

April 1, 2023—March 31, 2024

Average

923.4
332.6
751.7

¥

463.1
207.1
322.9

7.7
204.9
1.2
—
974.0

¥

1.6
85.9
0.0
—
551.8

Maximum(1)Minimum(1)

923.4
332.6
751.7
7.1
85.9
0.1
(42.5)
974.0

March 31, 2024

(in billions)Interest rate
Yen
U.S. Dollars
Foreign exchange
Equities(2)Commodities
Less diversification effect
Total

¥

566.0 ¥
320.3
415.7
6.9
96.6
0.4
(46.9)
623.0

701.5
435.3
501.6
10.8
126.2
2.7
—
751.0

¥

477.3
235.1
352.3
4.1
84.0
0.1
—
551.7

¥

501.4
435.3
375.6
7.7
118.8
0.2
(49.9)
578.2

Assumptions for VaR calculations:

Historical simulation method
Holding period: 10 business days
Confidence interval: 99%
Observation period: 701 business days

Notes:(1)
The maximum and minimum VaR overall for each category and in total were taken from different days. A simple summation of VaR by risk category is notequal to total VaR due to the effect of diversification.
(2)
The equities-related risk figures do not include market risk exposure from our strategic equity portfolio.

The average daily interest rate VaR by quarter in the fiscal year ended March 31, 2024 was as follows:141

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Quarter

Daily average VaR(in billions)

April—June 2023
July—September 2023
October—December 2023
January—March 2024¥

599.94604.48552.32506.60Limitations of the Market Risk Measurement Model and Related Measures
Actual losses may exceed the value at risk obtained by the application of an HS VaR model in the event, for example, that themarket fluctuates to a degree not accounted for in the observation period, or that the correlations among various risk factors, includinginterest rates and foreign currency exchange rates, deviate from those assumed in the model. In order to complement these weaknessesof the HS-VaR model and measure potential losses that the model is not designed to capture, we conduct stress testing, as appropriate,on our HS-VaR model for our non-trading activities by applying various stress scenarios, including those which take into accountestimates regarding future market volatility, in order to better identify risks and manage our portfolio in a more stable and appropriatemanner. In addition, we utilize back-testing to verify the effectiveness of our VaR measurement model.
Funding Liquidity Risk Management
Our major subsidiaries seek to maintain appropriate liquidity in both Japanese yen and foreign currencies by managing theirfunding sources and mechanisms, such as deposits, short-term borrowings and long-term debt, liquidity gap, liquidity-supplying
products such as commitment lines, and buffer assets, primarily government bonds.
We have established a group-wide system for managing liquidity risk by categorizing the risk in the following three stages:
normal, concern and crisis. The front offices and risk management offices of the major subsidiaries and the holding company
exchange information and data on liquidity risk even at the normal stage. At higher alert stages, we centralize information aboutliquidity risk and discuss issues relating to group-wide liquidity control actions, including formulating contingency plans, among
Group companies, if necessary. We have also established a system for liaison and consultation on funding in preparation forcontingency, such as natural disasters, wars and terrorist attacks. The holding company and the major subsidiaries conduct group-wide
contingency preparedness drills on a regular basis to ensure smooth implementation in the event of an emergency.
In addition, we have established a group-wide system for ensuring compliance with the minimum regulatory LCR and NSFR
requirements by categorizing the risk in the following three stages: sufficient, concern and insufficient. The holding company and the
major subsidiaries exchange information and data on LCR and NSFR even at the sufficient stage. At higher alert stages, we holdgroup-wide LCR and NSFR liaison meetings to discuss issues relating to LCR and NSFR and, based on the discussion as well as theinformation and data that have been shared, take countermeasures to improve LCR and NSFR as necessary.
For more information, see “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—
Financial Condition—Sources of Funding and Liquidity.” See also “Item 3.D. Key Information—Risk Factors—Funding Liquidity
Risk—Deterioration in market liquidity or other external circumstances or an actual or perceived decline in our creditworthiness could
negatively affect our ability to access and maintain liquidity.”
Operational Risk Management
The holding company has established, based on its Executive Committee’s determination, the MUFG Operational Risk
Management Policy as a group-wide policy for managing operational risk. This policy sets forth the core principles regarding
operational risk management, including the definition of operational risk, and the risk management system and processes. Under thepolicy, the board of directors and the Executive Committee formulate fundamental principles of operational risk management andestablish and maintain an appropriate risk management system. The Chief Risk Officer is responsible for recognizing, evaluating, andappropriately managing operational risk in accordance with the fundamental principles formulated by the board of directors and the
Executive Committee. A division in charge of operational risk management has been established that is independent of businesspromotion sections to manage overall operational risk in a comprehensive manner. These fundamental principles have also been
approved by the boards of directors of the major subsidiaries, providing a consistent framework for operational risk management of
the Group. The diagram below sets forth the operational risk management system of each major banking subsidiary:
Operational Risk Management System of Our Major Banking Subsidiaries
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As set forth in the following diagram, we have established a risk management framework for loss data collection, control selfassessment, and measurement of operational risk in order to appropriately identify, recognize, evaluate, measure, control, monitor andreport operational risk.
We have also established group-wide reporting guidelines with respect to loss data collection and its monitoring. We focus ourefforts on ensuring accurate assessment of the status of operational risk losses and the implementation of appropriate countermeasures,
while maintaining databases of internal and external loss events.
The following diagram summarizes our operational risk management framework:

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Operational Risk Management Framework

Operations Risk Management
The Group companies offer a wide range of financial services, ranging from commercial banking products such as deposits,exchange services and loans to trust and related services covering pensions, securities, real estate and securitization, as well as transfer
agent services. Cognizant of the potentially significant impact that operations risk-related events could have in terms of both economic
losses and damage to our reputation, our major subsidiaries continue to work on improving their management systems to create andapply appropriate operations risk-related controls.
Specific ongoing measures to reduce operations risk include the development of databases to manage, analyze and prevent therecurrence of related loss events; efforts to tighten controls over administrative procedures and related operating authority, while
striving to improve human resources management, investments in systems to improve the efficiency of administrative operations, andprograms to expand and upgrade internal auditing and operational guidance systems.
Senior management receives regular reports on the status of our businesses from an operations risk management perspective. We
work to promote the sharing within the Group of information and expertise concerning any operational incidents and the measures
implemented to prevent any recurrence.
Efforts to upgrade the management of operations risk continue with the aim of providing our customers with a variety of highquality services.
Information Risk Management
Complying with laws and regulations requiring proper handling of customer information, we implement information security
management measures, including the establishment of an information risk management framework, enhancement of our internal
operational procedures, and training courses mandatory for all officers and staff.
We have also formulated our Personal Information Protection Policy as the basis for our ongoing programs designed to protect
the confidentiality of personal information.
With the aim of preventing any recurrence and minimizing risk or loss, we also work to promote sharing on a group-wide basisof experience, knowledge and expertise related to information risk incidents.

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IT Risk Management
IT risk refers to the following risks:- Loss arising from destruction of, suspension of services reliant on, defects in, or misuse of IT,- Unauthorized alteration, leakage or loss of electronic data caused by insufficient IT systems planning, development oroperations, and- External threats to or vulnerabilities in IT systems security, including cybersecurity.
Systems planning, development and operations include appropriate design and extensive testing phases to ensure that systems
are designed to help prevent failures while providing sufficient safeguards for the security of electronic data including personal
information. System development projects are managed and overseen by a team dedicated to performing such management andoversight functions, and the development status of any mission-critical IT systems is reported regularly to senior management.
Disaster countermeasure systems development and investments for redundancy of the Group’s IT infrastructure are designed tominimize damage in the event of any system failure. Emergency drills are conducted to help increase staff preparedness. Group-wide
sharing of experience, knowledge and expertise related to system failures is promoted with the aim of preventing recurrence of, andminimizing, risk or loss. Contingency plans, including alternatives for both operations and systems, are designed to ensure operational
resilience, enable quick recovery and reduce impact in the event of a system failure.
In addition, the risk of increasingly sophisticated cyber-attacks is a significant focus of the Board of Directors, and the Board
regularly receives reports regarding our cybersecurity risk management program. We continue to work to strengthen measuresdesigned to address and mitigate the risk, including the establishment of MUFG-CERT, our Computer Emergency Response Team,
implementation of multi-layered defense and detection measures, enhancement of monitoring systems, and cooperation with globalorganizations with relevant expertise. MUFG-CERT is responsible for taking prompt action to coordinate and manage response to
cyber security incidents to mitigate their impact. For more information, see "Item 16K. Cybersecurity."
We continue to develop our risk management capabilities for emerging technologies, such as artificial intelligence (AI), robotic
process automation (RPA) and blockchain, considering, among other things, the maturity and usage of such technologies.
Tangible Asset Risk Management
Tangible assets include movable physical properties and immovable properties, owned or leased, such as land, buildings,
equipment attached to buildings, fixtures and furniture. We recognize the potentially significant impact tangible asset risk-related
events can have on the management and execution of the Group’s businesses, which in turn can result in economic losses to, or
diminished market confidence in, the Group. Accordingly, we continue to improve our risk control framework designed toappropriately manage such risk.
Personnel Risk Management
We recognize the potentially significant impact personnel risk-related events can have on the management and execution of theGroup’s businesses, which in turn can result in economic losses to, or diminished market confidence in, the Group. Accordingly, we
continue to work on improving our risk control framework designed to appropriately manage such risk.
Incompliance with Laws and Regulations Risk Management
We recognize the potentially significant impact compliance risk-related events can have on the management and execution of
the Group’s businesses, which in turn can result in economic, reputation and other losses to, or diminished market confidence in, theGroup. Accordingly, we continue to work on improving our compliance risk control framework designed to appropriately manage
such risk.
Specifically, we have established our MUFG Group Code of Conduct as the basic guideline for the Group’s directors andemployees. In addition, a compliance management division has been established at each of the holding company and the major
subsidiaries. See “—Compliance” below.

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Legal Risk Management
The legal division at each of the holding company and the major subsidiaries centrally and uniformly evaluates legal issues prior
to entering into contracts or commencing new business operations, deals with legal disputes and manages other legal matters. With theaim of effectively managing our legal risk arising from our globally expanding business operations, we have established a global andgroup-wide legal risk management framework and promote sharing of experience, knowledge and practices relating to legal risk issues
on a global and group-wide basis.

The Standardized Approach for Operational Risk
We adopted the Standardized Measurement Approach, or SMA, as of March 31, 2024, in place of the Advanced Measurement
Approach that we had previously used, for calculation of the operational risk capital amount in measuring our capital adequacy ratios
under applicable Japanese regulatory requirements based on the Basel III Standards. The SMA is intended to reduce complexity andvariability in the calculation of operational risk capital amount and replace all previously permitted approaches.
Succinctly put, under the SMA, operational risk capital amount is calculated based on a bank’s income, expense items andhistorical loss amounts. Using a bank’s income and expense items as inputs, a financial statement-based proxy for the bank’s
operational risk exposure, which is referred to as the Business Indicator, is calculated based on a prescribed formula. The BusinessIndicator is multiplied by an applicable coefficient or coefficients (between 12% and 18%) to arrive at the value referred to as theBusiness Indicator Component (BIC). The calculated BIC is then multiplied by a scaling factor referred to as the Internal Loss
Multiplier (ILM), which is calculated based on a prescribed formula using the bank’s average historical operational risk losses over thelast 10 years, or a conservative estimate value with a lower bound of 1, as an input.
Based on the foregoing, operational risk capital amount is calculated by multiplying the BIC and the ILM, and the risk weighted
assets for operational risk are defined as the product of operational risk capital and 12.5.
Reputation Risk Management
Reputation risk refers to the risk of harm to our corporate value arising from perceptions of our customers, shareholders,investors or other stakeholders and in the market or society that we deviate from their expectations or confidence. We recognize thatsuch risk, if materialized, can have a material negative impact on our business and continue to work on enhancing our framework
designed to appropriately manage the risk based on MUFG Way, MUFG Group Code of Conduct, and other rules and codes of theGroup.
Specifically, in order to manage our reputation risk effectively on a group-wide basis, we have established a risk management
system designed to ensure mutual consultation and reporting if a reputation risk-related event occurs or is anticipated and, through thissystem, share relevant information within the Group.
Through the risk control framework and risk management system, we seek to prevent reputation risk-related events andminimize damage to the corporate value of the Group by promptly obtaining an accurate understanding of relevant facts relating torisk events and disclosing information concerning such events and the measures we take in response to such events in an appropriate
and timely manner.
Model Risk Management
We recognize the potentially significant impact model risk-related events can have on the management and execution of theGroup’s businesses, which in turn can result in economic losses to, or diminished market confidence in, the Group. Models are used
for increasingly wider and more important purposes, including valuing exposures, instruments and positions, measuring risks, anddetermining capital adequacy. Accordingly, we continue to work on improving our risk control framework.
Compliance
Basic Policy
In April 2021, MUFG renamed its Corporate Vision as “MUFG Way” and newly defined its social purpose—the purpose of its
existence, along with its shared values and medium- to long-term goal. MUFG Way serves as the group’s basic policy in conducting
its business activities and provides guidelines for all group activities. Furthermore, we have established MUFG Group Code of
Conduct as the guidelines for how the Group’s directors and employees act to realize the Corporate Vision, in which we haveexpressed our commitment to complying with laws and regulations, to acting with honesty and integrity, and to behaving in a mannerthat supports and strengthens the trust and confidence of society.
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In addition, as we expand the geographic scope of our business globally, we are committed to keeping abreast of developments
in laws and regulations of the jurisdictions in which we operate including anti-money laundering and anti-bribery, as well as paying
attention to trends in financial crimes.
See “Item 3.D. Key Information—Risk Factors—Operational Risk—Legal and regulatory changes could have a negative impact
on our business, financial condition and results of operations.” and “Item 3.D. Key Information—Risk Factors—Operational Risk—
We may become subject to regulatory actions or other legal proceedings relating to our transactions or other aspects of our operations,which could result in significant financial losses, restrictions on our operations and damage to our reputation.” See also “Item 4.B.
Information on the Company—Business Overview—Supervision and Regulation.”
Compliance Framework
Management and coordination of compliance-related matters are the responsibility of separate compliance management
divisions established at the holding company and the major subsidiaries. Each compliance management division formulates
compliance programs and organizes training courses to promote compliance, and regularly reports to each company’s board of
directors and Executive Committee on the status of compliance activities.
The holding company has established a Group Compliance Committee and each major subsidiary has established a Compliance
Committee for deliberating key issues related to compliance. Additionally, the holding company has a Group Chief Compliance
Officer, or CCO, Committee, which consists of the CCO of the holding company acting as committee chair and the CCOs of the major
subsidiaries. The Group CCO Committee deliberates important matters related to compliance and compliance-related issues for which
the Group should share a common understanding.
The following diagram summarizes our compliance framework:
Compliance Framework

Internal Reporting System and Accounting Auditing Hotline

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The major subsidiaries have established internal reporting systems that aim to identify compliance issues early so that any
problems can be quickly rectified. This system includes an independent external compliance hotline. Furthermore, the holding
company has set up an MUFG Group Compliance Helpline that acts in parallel with group-company internal reporting systems andprovides a reporting channel for directors and employees of Group companies. In the holding company, the contents of the reported
cases as well as the results of surveys are reported to the audit committee on a regular basis or whenever necessary.
In addition to these internal reporting systems, the holding company has also established an accounting auditing hotline thatprovides a means to report any problems related to MUFG's accounting practices.
MUFG Accounting Auditing Hotline
MUFG has set up an accounting auditing hotline to be used to make reports related to instances of improper practices (violationsof laws and regulations) and inappropriate practices, or of practices raising questions about such impropriety or inappropriateness,regarding accounting and internal control or audits related to accounting in Group companies. The audit committee oversees thereporting process to ensure the appropriateness and effectiveness of the reporting process and monitors the reports received throughthe hotline. The reporting process works as follows, and may be carried out via letter or e-mail:Hokusei Law Office, P.C.
Address: Sanshikaikan Bldg. 8th Floor 1-9-4 Yurakucho, Chiyoda-ku, Tokyoe-mail:MUFG-accounting-audit-hotline@hokusei-law.com
When reporting information please pay attention to the following:•

Matters subject to reporting are limited to instances regarding the Group companies.

•

Please provide detailed information with respect to the matter. Without detailed factual information there is a limit to howmuch our investigations can achieve.

•

Anonymous information will be accepted.

•

No information regarding the identity of the informant will be passed on to third parties without the approval of theinformant him- or herself. However, this excludes instances where disclosure is legally mandated, or to the extent that the
information is necessary for surveys or reports, when data may be passed on following the removal of the informant’s
name.

•

Please submit reports in either Japanese or English.

•

If the informant wishes, we will endeavor to report back to the informant on the response taken within a reasonable periodof time following the receipt of specific information, but cannot promise to do so in all instances.

Internal Audit
Role of Internal Audit
Internal Audit aims to evaluate and assist in the improvement of the effectiveness of governance, risk management and control
processes with high proficiency and independence, thereby contributing to the enhancement of the corporate value of the MUFG
Group and to the achievement of MUFG Way. Internal Audit covers all aspects of the Group’s business activities and discusses andevaluates the management and operational frameworks and the implementation of business operations from legal compliance,
rationality and efficiency perspectives, beyond checking compliance with defined procedures.
In addition, Internal Audit provides instructions and recommendations for operational improvement to audited divisions andreports to senior management on such instructions and recommendations, thereby contributing to safeguarding and development of theGroup’s assets.
Three Lines of Defense Framework
Risk management is conducted at multiple levels within a business organization, including front-office divisions in charge ofmanaging specific categories of risk, a compliance division, and an internal audit division.
As for financial institutions, including the MUFG Group, based on the experience of past financial crises, the traditional risk
management structure that was heavily dependent on front-office divisions has been under close scrutiny. As a result, there is anincreasing expectation for financial institutions to achieve more effective risk management through, for example, appropriate
allocation of risk management roles and responsibilities among various divisions.

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Cognizant of the importance of these developments, we have adopted the concept of “Three Lines of Defense” where the roles
and responsibilities of each division in risk management are defined, classifying divisions within a financial institution into “the 1stLine of Defense”, “the 2nd Line of Defense” and “the 3rd Line of Defense”.
Line

Divisions

Roles

The 1st Line of Defense

Business divisions andclient-facing divisions•

Undertake risks within the extent of risk exposure assigned•

Responsible and accountable for identifying, evaluating andcontrolling business risks

The 2nd Line of Defense

Risk management
division, compliancedivision, etc.

•

Ensure that risks are appropriately identified and managed by the 1stLine of Defense

The 3rd Line of Defense

Internal audit division•

Independently evaluate the effectiveness of the governance, risk
management, and control processes implemented by the 1st and 2nd
Lines of Defense

Internal Audit plays an essential role in the Group’s risk management through ongoing communications with the 1st and 2nd
Lines of Defense, while maintaining independence.
Group Internal Audit Framework
The MUFG Group has internal audit functions at the holding company level as well as at the subsidiary level, which aredesigned to ensure proficiency and independence through effective collaboration.
The internal audit division of the holding company receives reports from the internal audit divisions of subsidiaries on the status
and results of their internal audits and provides them with instructions and evaluations as needed.
Reports to the Audit Committee
The holding company has an audit committee within its board of directors as required by the Companies Act of Japan, and eachof the major subsidiaries has established an audit and supervisory committee. Within each of the holding company and the major
subsidiaries, the internal audit division reports to the committee on important matters, including governing principles for internal audit
plans and the status and results of internal audits.
MUFG Internal Audit Activity Charter
In April 2019, we adopted “MUFG Internal Audit Activity Charter”, which defines our basic policies for Internal Audit,
including its mission, purposes, responsibilities, and roles.
This charter is designed to encourage Internal Audit staff to conduct internal audits in accordance with the global standards set
by the Institute of Internal Auditors, an international organization established for, among other purposes, formulating practical internal
audit standards.
Item 12.
A.

Description of Securities Other than Equity Securities.

Debt Securities
Not applicable.

B.

Warrants and Rights
Not applicable.

C.

Other Securities
Not applicable.

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D.

American Depositary Shares
For a description of ADSs, each representing one share of our common stock, see Exhibit 2(c) to this Annual Report.

Fees, charges and other payments relating to ADSs
As a holder of our ADSs, you will be required to pay to The Bank of New York Mellon, as depositary for the ADRs, or the
Depositary, either directly or indirectly, the following fees or charges. The Depositary collects its fees for delivery and surrender of
ADRs directly from investors depositing shares or surrendering ADRs for the purpose of withdrawal or from intermediaries acting forthem. The Depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by
selling a portion of distributable property to pay the fees.
ADS holders must pay:For:

$5.00 (or less) per 100 ADSs (or portion thereof)

Each issuance of an ADR, including as a result of a distributionof shares or rights or other property
Each cancellation of an ADR, including if the agreement
terminates$0.02 (or less) per ADS

Any cash distribution, to the extent permitted by any securities
exchange on which the ADSs may be listed for trading

A fee equivalent to the fee that would be payable if securities
distributed to the ADS holder had been shares and the shares had
been deposited for issuance of ADRs

Distribution of securities distributed to holders of deposited
securities which are distributed by the Depositary to registered
ADS holders

Registration or transfer fees

Transfer and registration of shares on the share register fromyour name to the name of The Bank of New York Mellon or its
agent and vice versa when you deposit or withdraw shares

Expenses of The Bank of New York Mellon

Conversion of foreign currency to U.S. dollars, as well as cable,telex and facsimile transmission expenses

Taxes and other governmental charges The Bank of New York
Mellon or MUFG Bank, as custodian, have to pay on any ADS
or share underlying an ADS, for example, stock transfer taxes,
stamp duty or withholding taxes

As necessary

Fees Waived or Paid by the Depositary
The Depositary has agreed to waive the standard out-of-pocket administrative, maintenance and other expenses for providing
services to the registered holders of our ADSs, which include the expenses relating to the delivery of annual reports, dividend fundremittances, stationery, postage and photocopying. For the fiscal year ended March 31, 2024, the Depositary waived $131,096.31 ofstandard out-of-pocket expenses.
The Depositary has also agreed to reimburse us for expenses related to the administration and maintenance of the ADS program,including investor relations expenses, the annual New York Stock Exchange listing fees and other program-related expenses. There isa limit on the amount of expenses for which the Depositary will reimburse us based and conditioned on the number of outstanding
ADSs and the amount of dividend fees collected by the Depositary. For the fiscal year ended March 31, 2024, the Depositary
reimbursed us $1.0 million for such expenses.

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PART II
Item 13.

Defaults, Dividend Arrearages and Delinquencies.

None.
Item 14.

Material Modifications to the Rights of Security Holders and Use of Proceeds.

None.
Item 15.

Controls and Procedures.

Disclosure Controls and Procedures
An evaluation was carried out under the supervision and with the participation of our management, including the Chief
Executive Officer, or CEO, and the Chief Financial Officer, or CFO, of the effectiveness of our disclosure controls and procedures, as
defined in Rule 13a-15(e) under the U.S. Securities Exchange Act of 1934, as of the end of the period covered by this Annual Report.
Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were not effective as ofMarch 31, 2024 due to the material weakness in our internal control over financial reporting as described below. In addition, our CEO
and CFO concluded that our disclosure controls and procedures were not effective as of March 31, 2023.
Management’s Annual Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined inRule 13a-15(f) under the U.S. Securities Exchange Act of 1934. Our internal control over financial reporting is a process designed by,or under the supervision of, MUFG’s principal executive and principal financial officers, and effected by MUFG’s board of directors,
management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparationof financial statements for external purposes in accordance with U.S. GAAP and includes those policies and procedures that:(i)pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions anddispositions of the assets of MUFG,(ii)

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles, and that receipts and expenditures of MUFG are being madeonly in accordance with authorizations of management and directors of MUFG, and(iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of
MUFG’s assets that could have a material effect on the financial statements.
Because of inherent limitations, internal control over financial reporting, no matter how well designed, may not prevent or detect
misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Our management evaluated the effectiveness of our internal control over financial reporting as of March 31, 2024 based on thecriteria established in “Internal Control—Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of theTreadway Commission. As disclosed in Note 1A to our financial statements, we are restating our consolidated financial statements forthe fiscal year ended March 31, 2023 to correct an error related to the accounting treatment for the elimination of the three-monthreporting lag in connection with the sale of MUFG Union Bank, N.A. Our management concluded that our internal control overfinancial reporting was not effective as of March 31, 2024, due to a material weakness which our management identified relating to a
deficiency in the design of an existing internal control over the review and approval of non-routine US GAAP accounting treatment
considerations, which led to the restatement. The error resulting in the restatement of our March 31, 2023 financial statements was
identified after March 31, 2024 and, therefore, management concluded that our internal control over financial reporting was also noteffective as of March 31, 2023 and that the material weakness remained unremediated as of March 31, 2024.
More specifically, our internal control was not designed sufficiently to:1

evaluate whether the selection of accounting treatment may result in quantitative or qualitative factors that would impact theusers of our financial statements,

2

identify circumstances where additional research should be performed to consider whether there is other public informationthat may indicate that an alternative accounting treatment may be appropriate, and151

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3

identify circumstances where certain matters that are particularly challenging or complex would require additional layers of
escalation for review and approval.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there
is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected
on a timely basis.
The effectiveness of our internal control over financial reporting as of March 31, 2024 has been audited by Deloitte Touche
Tohmatsu LLC, an independent registered public accounting firm, as stated in its report, presented on page 153.
Changes in Internal Control Over Financial Reporting
During the period covered by this Annual Report, there has been no change in our internal control over financial reporting thathas materially affected or is reasonably likely to materially affect our internal control over financial reporting.
Management’s Plan to Remediate the Material Weakness
We are in the process of implementing remediation actions to address this material weakness to prevent similar errors fromoccurring again in the future. Such remediation actions include enhancement of the design of our internal control over the review andapproval of non-routine US GAAP accounting treatment considerations sufficiently to:1

evaluate whether the selection of accounting treatment may result in quantitative or qualitative factors that would impact theusers of our financial statements,

2

identify circumstances where additional research should be performed to consider whether there is other public informationthat may indicate that an alternative accounting treatment may be appropriate, and3

identify circumstances where certain matters that are particularly challenging or complex would require additional layers of
escalation for review and approval.

We will consider the material weakness remediated after the applicable controls operate for a sufficient period of time andmanagement is able to conclude, through testing, that the controls are operating effectively.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and the Shareholders of
Mitsubishi UFJ Financial Group, Inc.
(Kabushiki Kaisha Mitsubishi UFJ Financial Group):
Opinion on Internal Control over Financial Reporting
We have audited the internal control over financial reporting of Mitsubishi UFJ Financial Group, Inc. (Kabushiki Kaisha
Mitsubishi UFJ Financial Group) ("MUFG") and subsidiaries (together, the "MUFG Group") as of March 31, 2024, based on criteria
established in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway
Commission ("COSO"). In our opinion, because of the effect of the material weakness identified below on the achievement of theobjectives of the control criteria, the MUFG Group has not maintained effective internal control over financial reporting as of March
31, 2024, based on criteria established in Internal Control—Integrated Framework (2013) issued by COSO.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)("PCAOB"), the consolidated financial statements as of and for the year ended March 31, 2024, of the MUFG Group and our report
dated July 30, 2024, expressed an unqualified opinion on those financial statements.
Basis for Opinion
The MUFG Group's management is responsible for maintaining effective internal control over financial reporting and for its
assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual
Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the MUFG Group's internal
control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the MUFG Group in accordance with the U.S. federal securities laws and the applicable rules andregulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material
respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material
weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, andperforming such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonablebasis for our opinion.
Definition and Limitations of Internal Control over Financial Reporting
A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding thereliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1)pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being
made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have amaterial effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because ofchanges in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Material Weakness
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there
is a reasonable possibility that a material misstatement of the MUFG Group’s annual or interim financial statements will not be
prevented or detected on a timely basis. The following material weakness has been identified and included in management's
assessment related to a deficiency in the design of an existing internal control over the review and approval of non-routine US GAAP
accounting treatment considerations. This material weakness was considered in determining the nature, timing, and extent of audit
tests applied in our audit of the financial statements as of and for the year ended March 31, 2024, of the MUFG Group, and this report
does not affect our report on such financial statements.
/s/Deloitte Touche Tohmatsu LLC

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Tokyo, Japan
July 30, 2024

Item 16A.

Audit Committee Financial Expert.

Our board of directors has determined that Mr. Koichi Tsuji, an outside director, is an “audit committee financial expert” asdefined in Item 16A of Form 20-F and is, and has remained since his assumption of office as a member of our audit committee,“independent” as defined in the listing standards of the NYSE. Mr. Tsuji has spent most of his professional carrier as a certified public
accountant in Japan, auditing Japanese corporations, including those registered with the U.S. Securities and Exchange Commission.
Mr. Tsuji is also the chair of our audit committee.
Item 16B.

Code of Ethics.

We have adopted a code of ethics, which consists of internal rules named MUFG Group Code of Conduct, compliance rules,
compliance manual and rules of employment. Each of these rules applies to our principal executive officer, principal financial officer,
principal accounting officer and persons performing similar functions. The MUFG Group Code of Conduct was most recently
amended on April 1, 2024 primarily to make updates consistent with the revision of MUFG Way, where the element of agility in oureffort to accelerate transformation and innovation has been added to the values comprising MUFG Way, and update and streamline
explanatory commentaries. A copy of the MUFG Group Code of Conduct and the sections of our compliance rules, compliancemanual and rules of employment relating to the “code of ethics” (as defined in paragraph (b) of Item 16B of Form 20-F) is attached as
Exhibit 11(a) to this Annual Report.
No waivers of the MUFG Group Code of Conduct or the relevant sections of our compliance rules, compliance manual and rulesof employment were granted to our principal executive officer, principal financial officer, principal accounting officer, directors or
corporate auditors during the fiscal year ended March 31, 2024.
Item 16C.

Principal Accountant Fees and Services.

Fees and Services of Deloitte Touche Tohmatsu LLC
The aggregate fees billed by Deloitte Touche Tohmatsu LLC, our independent registered public accounting firm and its
affiliates, for the fiscal years ended March 31, 2023 and 2024 are presented in the following table:
2023

2024
(in millions)Audit fees
Audit-related fees
Tax fees
Total

¥

¥

9,077 ¥
591
105
9,774 ¥

8,981
578
104
9,663

The description of our fees billed for each category described above is as follows:
Audit fees—Audit fees are primarily for an annual audit of our financial statements, review of our semi-annual condensed
financial statements, statutory audit of our financial statements and audits of our subsidiary financial statements and attestation
services relating to the internal controls over financial reporting under Section 404 of the U.S. Sarbanes-Oxley Act of 2002.
Audit-related fees—Audit-related fees primarily include accounting consultations, assurance services and agreed upon
procedures on internal controls, employee benefit plan audit, and advisory services relating to internal control reviews.
Tax fees—Tax fees relate primarily to tax compliance, including assistance with preparation of tax return filings, tax advisory
and tax planning services.
Pre-Approval Policies and Procedures for Services by Deloitte Touche Tohmatsu LLC
Our audit committee performs the pre-approval function required by applicable SEC rules and regulations. Our audit committee
has established pre-approval policies and procedures that MUFG and its subsidiaries must follow before engaging Deloitte Touche
Tohmatsu LLC to perform audit and permitted non-audit services.
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Prior to December 22, 2023, when MUFG or a subsidiary intended to engage Deloitte Touche Tohmatsu LLC to perform audit
and permitted non-audit services, our audit committee approved service applications submitted to it by MUFG or such subsidiary prior
to engagement on either a periodic or case-by-case basis.
•

Periodic application was an application for pre-approval made each fiscal year for services that were expected to beprovided by Deloitte Touche Tohmatsu LLC for proposed fees and engagement periods during the next fiscal year.

•

Case-by-case application was an application for pre-approval made on a case-by-case basis for services to be provided by
Deloitte Touche Tohmatsu LLC for proposed fees and engagement periods that were not covered by the periodic
application.

Engagements of Deloitte Touche Tohmatsu LLC were documented and reported to our audit committee on an annual basis.
Pre-approval was resolved in principle by our audit committee prior to engagement, although if necessary a full-time member of
our audit committee considered any case-by-case application for pre-approval on behalf of the audit committee prior to the nextscheduled audit committee meeting. Such decisions made individually by a full-time member of our audit committee were reported tothe audit committee as appropriate at the next scheduled audit committee meeting.
On December 22, 2023, our audit committee replaced the foregoing pre-approval policies and procedures with new pre-approval
policies and procedures based on a pre-approved list of specified services as well as on an individual application for pre-approval.
•

Our audit committee annually reviews and, where appropriate, pre-approves a proposed list of specific services andspecific categories of services that are expected to be provided by Deloitte Touche Tohmatsu LLC and sets budgeted fee
levels and engagement periods for such services and categories of services.

•

Our audit committee reviews and, where appropriate, pre-approves an individual application for a service to be provided
by Deloitte Touche Tohmatsu LLC that is not covered by the annually pre-approved service list, including any fee level orengagement period adjustment that has not been pre-approved.

Engagements of Deloitte Touche Tohmatsu LLC are documented and reported to our audit committee on an annual basis.
Pre-approval is resolved in principle by our audit committee prior to engagement, although if necessary a full-time member of
our audit committee may consider any individual application for pre-approval on behalf of the audit committee prior to the nextscheduled audit committee meeting. Such decisions made individually by a full-time member of our audit committee are reported tothe audit committee as appropriate at the next scheduled audit committee meeting.
Fees approved pursuant to the procedures described in paragraph 2-01(c)(7)(i)(C) of Regulation S-X, which provides for an
exception to the general requirement for pre-approval in certain circumstances, were less than 0.1% of the total fees paid to Deloitte
Touche Tohmatsu LLC for each of the fiscal years ended March 31, 2023 and 2024.
Item 16D.

Exemptions from the Listing Standards for Audit Committees.

Not applicable.
Item 16E.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers.

Issuer Purchases of Common Stock155

Table of Contents

Total
Number of
SharesPurchased(1)Average Price
Paid per Share

Total
Number of
SharesPurchased
as Part of
Publicly
Announced
Plans or
Programs

Maximum
Number of
Shares thatMay Yet Be
Purchased
Under thePlans or
Programs(2)April 1 to April 30, 2023
May 1 to May 31, 2023
June 1 to June 30, 2023
July 1 to July 31, 2023
August 1 to August 31, 2023
September 1 to September 30, 2023
October 1 to October 31, 2023
November 1 to November 30, 2023
December 1 to December 31, 2023
January 1 to January 31, 2024

1,699 ¥
1,245
2,511
3,491
2,756
2,692
2,603
40,216,196
105,609,070
56,421,555

862.56886.05981.83
1,066.94
1,122.46
1,261.29
1,258.77
1,268.52
1,227.09
1,293.02

—
—
—
—
—
—
—
40,214,100
105,606,200
56,418,900

—
—
—
—
—
—
—
359,785,900
254,179,700
197,760,800

February 1 to February 29, 2024
March 1 to March 31, 2024
Total

53,488,734
44,924,468
300,677,020 ¥1,429.12
1,558.47
1330.45

53,485,700
44,921,500
300,646,400

144,275,100
99,353,600—

Notes:(1) The shares purchased were shares constituting less than one unit (100 shares) purchased from registered holders of the shares,
each at the current market price, in addition to those purchased as part of the publicly announced program described in Note (2)below.
(2) During November 2023 to March 2024, we repurchased 300,646,400 shares of our common stock for ¥399,999,861,554 under ashare repurchase program that was adopted on November 14, 2023 and completed in March 2024. Under the program, we wereauthorized by the Board of Directors to repurchase up to the lesser of 400,000,000 shares of our common stock and ¥400 billion
between November 15, 2023 and March 31, 2024. In addition, we cancelled 350,000,000 shares of our common stock held intreasury on November 30, 2023.
(3) On May 15, 2024, the Board of Directors approved a share repurchase program under which we were authorized to repurchase up
to the lesser of 80,000,000 shares of our common stock and ¥100 billion between May 16, 2024 and June 30, 2024. Under the
program, we have repurchased an aggregate of 62,666,100 shares for ¥99,999,986,737 as of June 30, 2024.
We did not make any purchases of shares of our common stock other than as shown in the above table for the fiscal year ended
March 31, 2024.
In connection with the Performance-based Stock Compensation Plans, there were no stock purchases during the fiscal year
ended March 31, 2024. In May 2024, 9,080,700 shares of MUFG common stock were purchased by the trustee of the plan trust.
In connection with the Share-Based Compensation Plan for Domestic Employees of Major Subsidiaries, 2,786,900 shares of
MUFG common stock were purchased by the trustee of the plan trust in May 2024.
In connection with the MUFG Americas Holdings Corporation Stock Bonus Plan, 8,466,010 ADSs were purchased by thetrustee of the independent trust between April 1, 2023 and March 31, 2024.
For descriptions of our stock compensation, share-based compensation and stock bonus plans, see “Item 6.B. Directors, Senior
Management and Employees—Compensation.”
Item 16F.

Change in Registrant's Certifying Accountant.

None.
Item 16G.

Corporate Governance.

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Table of Contents
The NYSE allows NYSE-listed companies that are foreign private issuers, such as MUFG, with certain exceptions, to follow
home-country practices in lieu of the corporate governance practices followed by U.S. companies pursuant to the NYSE’s Listed
Company Manual. The following is a summary of the significant differences between MUFG’s corporate governance practices andthose followed by U.S. listed companies under the NYSE’s Listed Company Manual.
1. A NYSE-listed U.S. company must have a majority of directors that meet the independence requirements under Section
303A of the NYSE’s Listed Company Manual.
As of the date of this Annual Report, we have nine outside directors as members of our board of directors, which consists of a
total of sixteen members. Under our governance system, we are required to have independent outside directors on each of ournominating, audit and compensation committees, constituting a majority of its members. For a description of an outside director, see“Item 6.C. Directors and Senior Management—Board Practices.”
The Tokyo Stock Exchange rules require listed companies, including us, to identify at least one individual who the company
believes is unlikely to have a conflict of interest with general shareholders and have such individual serve as an independent director
or outside corporate auditor.
Further, companies listed on the Prime Market of the Tokyo Stock Exchange, including us, must have one third (or, in cases
where such companies deem appropriate, the majority) of directors qualify as outside directors who are considered independent basedon such internal standards as each company establishes pursuant to the Tokyo Stock Exchange requirements, or independent outside
directors, or publicly disclose the reason for not having such directors on the board of directors. We have adopted and made public our
corporate governance policy providing, among other things, that, in general, the majority of the members of our board of directors will
be independent outside directors.
2. A NYSE-listed U.S. company must have an audit committee composed entirely of independent directors.
Under the Companies Act, we are required to have an audit committee consisting of at least three non-executive directors, andthe majority of its members must be outside directors. Currently, our audit committee consists of three outside directors and two nonexecutive directors. Our audit committee satisfies the requirements of Rule 10A-3 under the U.S. Securities Exchange Act of 1934,
including the independence requirements thereunder.
3. A NYSE-listed U.S. company must have a compensation committee composed entirely of independent directors.
Under the Companies Act, we are required to have a compensation committee consisting of at least three directors, and the
majority of its members must be outside directors. Further, companies listed on the Prime Market of the Tokyo Stock Exchange,
including us, must have the majority of compensation committee members in principle qualify as independent outside directors or
publicly disclose the reason for not having such directors on the compensation committee. Currently, our compensation committee
consists of five directors, four of whom are independent outside directors.
4. A NYSE-listed U.S. company must have a nominating or corporate governance committee composed entirely of
independent directors.
Under the Companies Act, we are required to have a nominating committee consisting of at least three directors, and the
majority of its members must be outside directors. Further, companies listed on the Prime Market of the Tokyo Stock Exchange,
including us, must have the majority of nominating committee members in principle qualify as independent outside directors or
publicly disclose the reason for not having such directors on the nominating committee. Currently, our nominating committee, which
we call the nominating and governance committee, consists of five directors, four of whom are independent outside directors.
5. A NYSE-listed U.S. company must obtain shareholder approval with respect to any equity compensation plan.
Under the Companies Act, an equity compensation plan for directors and corporate executives is deemed to be compensation forthe services performed by the company’s directors and corporate executives. Our compensation committee establishes the policy withrespect to the determination of the individual compensation of our directors and corporate executives, including equity compensationin the form of performance-based stock compensation plan, and determines individual compensation in accordance with the policy.
Under the Companies Act, a public company with board audit, compensation and nominating committees seeking to introduce a
performance-based stock compensation plan must obtain the approval of its compensation committee, not its shareholders.
6. A NYSE-listed U.S. company must adopt and disclose Corporate Governance Guidelines and a Code of Business Conduct
and Ethics, and it must also disclose any exemptions granted to directors or executives.
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Table of Contents
Our corporate governance policies, which are called the “MUFG Corporate Governance Policies,” are based on applicablehome-country rules, particularly the Tokyo Stock Exchange rules, which require listed companies, such as us, to adopt a corporate
governance code setting forth fundamental principles designed to establish an effective corporate governance system or explain in
their corporate governance reports the reasons for not adopting such a code. We disclose these policies on our website. The Tokyo
Stock Exchange rules regarding corporate governance became stricter for companies listed on the Prime Market, including us, startingin April 2022, including without limitation those discussed in 1, 3 and 4 above.
We have adopted a code of conduct, compliance rules, compliance manual and rules of employment, which meet the definitionof “code of ethics” in “Item 16B. Code of Ethics.”
7. A NYSE-listed U.S. company must hold regularly scheduled executive sessions where participants are limited to nonmanagement directors.
Under the Companies Act, Japanese corporations are not obliged to hold executive sessions where participants are limited to
non-management directors. Such executive sessions are also not required under our internal corporate governance rules.
Item 16H.

Mine Safety Disclosure.

Not Applicable.
Item 16I.

Disclosure Regarding Foreign Jurisdictions That Prevent Inspections.

Not Applicable.
Item 16J.

Insider Trading Policies.

We currently have in place insider trading policies and procedures called MUFG Insider Trading Control Policy and Insider
Trading Control Rule. These policies and procedures apply to our directors, senior management, and employees and are designed topromote compliance with applicable insider trading laws, rules and regulations, and the listing standards applicable to us. A copy of
MUFG Insider Trading Control Policy and Insider Trading Control Rule is attached as Exhibit 11(b) to this Annual Report.
Item 16K.

Cybersecurity

Overview
As a financial institution operating globally, we are exposed to various cybersecurity risks, including ransomware, phishing, anddistributed denial of service attacks. These risks are often influenced by criminal activity, international conflicts and other threat
environments but are becoming increasingly more sophisticated and complex to deal with. We take seriously our responsibilities forsecuring the assets entrusted to us by our customers against cybersecurity threats and our obligation to provide secure and stablefinancial services. We have identified risks and threats posed by cyber-attacks and other relevant events as one of our top risks andhave been developing and implementing cybersecurity measures under management leadership. During the fiscal year ended March
31, 2024, we did not identify any cybersecurity threats that have materially affected, or were reasonably likely to materially affect, ourbusiness strategy, results of operations or financial condition. While we endeavor to remain vigilant for, and continue to develop andimplement measures to address, cybersecurity risk, we may not be able to prevent or mitigate a future cybersecurity incident that could
have a material adverse impact on our business strategy, performance, and financial stability. See “Item 3.D. Key Information—Risk
Factors—Operational Risk—Our operations are highly dependent on our information, communications and transaction management
systems and are subject to an increasing risk of cyber-attacks and other information security threats and to changes in the business andregulatory environment.”
Cybersecurity Risk Management Process
We manage cybersecurity risk as a subset of IT risk, which is included in the broader risk category of operational risk.
Operational risk is defined as the risk of potential loss resulting from inadequate or ineffective internal processes, people and systems,
or due to external events. Cybersecurity risk management is integrated into our comprehensive risk management framework where wehave adopted a three lines of defense approach. The first line of defense is the Cyber Security Division, which is the team primarily
responsible for identifying and mitigating risks as well as designing and executing controls to manage cybersecurity risk. The secondline of defense is the Corporate Risk Management Division, which is responsible for assessing and monitoring cybersecurity risk aswell as testing the effectiveness of cybersecurity risk controls independently from the first line. The third line of defense is the Internal
Audit Division, which audits the effectiveness of first-line and second-line cybersecurity risk management.

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Our cybersecurity risk management program incorporates features based on globally recognized standards such as those issued
by the National Institute of Standards and Technology (NIST). Based on such globally recognized standards, the Cyber Security
Division, which is supervised by the Group Chief Information Security Officer (CISO), establishes policies and standards to protect
our information systems and conducts cybersecurity risk assessments. Among its other responsibilities, the Division also focuses on
threat intelligence, including centralized information collection and impact analysis on newly discovered vulnerabilities and pastexperience, and prevention and remediation of such impacts on a global group-wide basis. Additionally, the Division conducts daily
monitoring of our external-facing systems to identify and prevent any flaws in security updates or configuration settings. In an effort
to enhance our round-the-clock monitoring and incident response capabilities on a global group-wide basis, we have established the
MUFG Cyber Security Fusion Center (MUFG CSFC), which specializes in cybersecurity threat analysis and information security
solutions. At the subsidiary level, the Computer Security Incident Response Teams (CSIRTs) have been established withinsubsidiaries to receive, investigate and implement measures in response to reports of cybersecurity incidents from within suchrespective subsidiaries in coordination with the MUFG Computer Security Incident Response Team (MUFG-CERT), a teamestablished within the Cyber Security Division for centralizing our cybersecurity incident responses.
We regularly conduct exercises and drills designed to ensure our ability to effectively perform cybersecurity incident response
functions. We have also expanded our collaborative activities with government agencies, other companies in the financial industry andother information security communities, including the Financial Services Information Sharing and Analysis Center (FS-ISAC), theFinancials Information Sharing and Analysis Center Japan (F-ISAC), the Forum of Incident Response and Security Teams (FIRST)
and the Japan Computer Emergency Response Team Coordination Center (JPCERT/CC). Furthermore, in order to minimize thirdparty risks, we conduct risk assessments on third-party vendor contracts prior to contract initiation and subsequently conduct annual
reviews to identify any significant changes in the risk environment. We also require our vendors to adhere to the standards set by us inorder to ensure that our risk management protocols are consistently maintained. Along with regularly conducted internal reviews of
our cybersecurity risk management program against market trends and best practices, we engage audit firms and external consultants
as needed, receive evaluations, and utilize the results of these evaluations to continuously ensure and enhance the effectiveness of ourprogram.
Governance
The Group Chief Information Officer (CIO) is responsible for operating and maintaining our cybersecurity risk management
program and regularly reports on significant cybersecurity-related matters to the Board of Directors as well as the Executive
Committee. In the fiscal year ended March 31, 2024, the cybersecurity-related matters reported on by the Group CIO to the Board of
Directors included the progress and future policy directions of various key measures, such as those designed to protect public internet
assets with subject to significant attack risk, to strengthen the security posture of our internal information security environment, and to
improve the security posture of our overseas facilities. As the most senior manager responsible for cybersecurity risk, the Group CISO
supervises the Cyber Security Division and directly reports to the Group CIO. The Cyber Security Division receives information on
cybersecurity incidents from the CSIRTs in accordance with our policies and procedures, supervises and coordinates incident responseat our group companies, and provides relevant information to the Group CISO, the Group CIO, the Corporate Risk Management
Division and, as appropriate, other senior management members. Our current Group CIO has over twenty years of experience in IT
management, including cybersecurity risk management, and has experience as a member of a government information security
organization. Similarly, the current Group CISO and senior members of the Cyber Security Division have extensive cybersecurity
management experience and expertise, with many members participating in financial industry information security organizations,
including the F-ISAC.
The Board of Directors decides key management policies and is responsible for management oversight. Decisions onparticularly important matters, such as decisions on key management policies as cybersecurity risk management policy for the entire
Group, and oversight of the execution of duties related to cybersecurity by directors and corporate executive officers are performed by
the Board of Directors. In addition, the Risk Committee and the Audit Committee are established under the Board of Directors toassist the Board with oversight. The Risk Committee discusses and makes recommendations to the Board of Directors on material
matters, including cybersecurity, relating to the risk management operations, matters relating to top risk matters and any other material
matters that require discussion, and any other material matters that require discussion by the Risk Committee. The Audit Committee
obtains reports from management, the Internal Audit Division and the external auditor on any cybersecurity risks and the risk
management and corporate governance frameworks and the operation of such frameworks, and oversees them, and assists oversight of
the Board of Directors.
Our cybersecurity risk management program is also operated and maintained under the supervision of the Board of Directors
with the report on significant cybersecurity-related matters by the Group CIO and the assistance of the Risk Committee and the Audit
Committee.

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PART III
Item 17.

Financial Statements.

In lieu of responding to this item, we have responded to Item 18 of this Annual Report.
Item 18.

Financial Statements.

Our consolidated financial statements are included in this Annual Report, as required by this item, starting on page F-1.
Pursuant to Rule 3-09 of Regulation S-X, the financial statements and supplementary data of Morgan Stanley, our equity
method investee, as of December 31, 2022 and 2023 and for the fiscal years ended December 31, 2021, 2022 and 2023, areincorporated in this Annual Report as Exhibit 99(c) by reference to Morgan Stanley’s annual report on Form 10-K filed on February
24, 2024.
Item 19.

Exhibits.

ExhibitDescription

1(a)
1(b)

Articles of Incorporation of Mitsubishi UFJ Financial Group, Inc., as amended on June 29, 2022 (English translation)
Board of Directors Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on June 25, 2015 (English
translation)*
Corporation Meetings Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on April 1, 2022 (English
translation)**Share Handling Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on August 2, 2022 (English
Translation)
Charter of the Audit Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2024 (English
translation)
Charter of the Compensation Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2018 (English
translation)*
Charter of the Nominating and Governance Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1,
2018 (English translation)*
Charter of the Risk Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2018 (English
translation)*
Form of American Depositary Receipt*

1(c)
1(d)
1(e)
1(f)
1(g)
1(h)
2(a)
2(b)

2(c)
8
11(a)

11(b)
12
13
15(a)
15(b)
97
99(a)
99(b)
99(c)

Form of Deposit Agreement, amended and restated as of December 22, 2004, among Mitsubishi Tokyo Financial Group,
Inc. (subsequently renamed Mitsubishi UFJ Financial Group, Inc.), The Bank of New York Mellon and the holders fromtime to time of American Depositary Receipts issued thereunder*
Description of Securities
Subsidiaries of the Company—see “Item 4.C. Information on the Company—Organizational Structure.”
MUFG Group Code of Conduct, Compliance Rules, Compliance Manual, and Rules of Employment of Mitsubishi UFJ
Financial Group, Inc. applicable to its principal executive officer, principal financial officer, principal accounting officer
and persons performing similar functions (English translation of relevant sections)
MUFG Insider Trading Control Policy and Insider Trading Control Rule
Certifications required by Rule 13a-14(a) (17 CFR 240.13a-14(a)) or Rule 15d-14(a) (17 CFR 240.15d-14(a))
Certifications required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) or Rule 15d-14(b) (17 CFR 240.15d-14(b)) andSection 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350)
Consent of independent registered public accounting firm (Deloitte Touche Tohmatsu LLC)
Consent of independent registered public accounting firm (Deloitte & Touche LLP)MUFG Executive Compensation Recovery Policy
Capitalization and Indebtedness of Mitsubishi UFJ Financial Group, Inc. as of March 31, 2024***
Unaudited Reverse Reconciliation of Selected Financial Information of Mitsubishi UFJ Financial Group, Inc. as of andfor the fiscal year ended March 31, 2024****
Financial Statements and Supplementary Data of Morgan Stanley*****
160

Table of Contents
ExhibitDescription

101.INS

Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL
tags are embedded within the Inline XBRL document
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
104
The cover page for the Company’s Annual Report on Form 20-F for the year ended March 31, 2024, has been formatted
in Inline XBRL
Notes:
*
**
***
****
*****

Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 12, 2018.
Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 8, 2022.
Deemed to be incorporated by reference into the registration statement on Form F-3 (No. 333-273681) of Mitsubishi UFJ
Financial Group, Inc. and to be a part thereof.
Deemed to be incorporated as Annex A to the registration statement on Form F-3 (No. 333-273681) of Mitsubishi UFJ
Financial Group, Inc. and to be a part thereof.
Incorporated by reference to Morgan Stanley’s annual report on Form 10-K (File No. 001-11758) filed on February 22,
2024.

161

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SELECTED STATISTICAL DATA
Due to close integration of our foreign and domestic activities, it is difficult to make a precise determination of the assets,
liabilities, income and expenses of our foreign operations. The foreign operations as presented include the business conducted byoverseas subsidiaries and branches, and the international business principally conducted by the international banking-related divisions
headquartered in Japan. Our management believes that the results appropriately represent our domestic and foreign activities.

A-1

Table of Contents
I. Distribution of Assets, Liabilities and Equity; Interest Rates and Interest Differential
Average Balance Sheets, Interest and Average Rates
The following table shows our average balances, interest and average interest rates for the fiscal years ended March 31, 2022,
2023 and 2024. Average balances are generally based on a daily average while a month-end average is used for certain averagebalances when it is not practicable to obtain applicable daily averages. Average balances in the tables include those relating to theassets and liabilities held for sale of MUFG Union Bank. For more information, see Note 2 to our consolidated financial statements
included elsewhere in this Annual Report.
Fiscal years ended March 31,
2022
Averagebalance2023

Interest
incomeAveragerate

Averagebalance

Interest
income2024
Averagerate

Averagebalance

Interest
incomeAveragerate

41,5250.11 %(in millions, except percentages)
Assets:Interest-earning assets:
Interest-earning deposits in other banks:
Domestic¥ 41,455,342

Foreign
Total¥

35,3250.09 % ¥ 36,816,513

12,303,262

22,0670.18

53,758,604

57,392

0.11¥

29,3360.08 % ¥ 37,958,267¥

14,346,858

329,718

2.30

13,605,507

668,294

4.91

51,163,371

359,054

0.70

51,563,774

709,819

1.38

Call loans and funds sold:Domestic

1,083,472

62

0.01

1,196,362

3,677

0.31

2,009,892

2,342

0.12

Foreign

396,886

4,356

1.10

583,746

16,177

2.77

702,673

29,4814.20

1,480,358

4,418

0.30

1,780,108

19,8541.12

2,712,565

31,823

1.17

Total
Receivables under resale agreements:
Domestic

5,112,747(4,910)(0.10)

5,937,814(21,614)(0.36)

6,390,270(13,661)(0.21)

Foreign

7,263,156

24,4010.34

7,790,682

137,645

1.77

9,151,180

411,774

4.50

12,375,903

19,491

0.16

13,728,496

116,0310.85

15,541,450

398,113

2.56

Domestic

1,789,988

2,487

0.14

2,115,629

16,3300.77

2,169,748

27,0391.25

Foreign

1,232,193

507

0.04

1,815,906

27,114

1.49

2,033,933

96,316

4.74

3,022,181

2,994

0.10

3,931,535

43,4441.11

4,203,681

123,355

2.93

Domestic

9,980,365

48,6070.49

11,245,370

57,2700.51

12,257,370

59,7420.49

Foreign

23,319,951

351,578

1.51

21,076,033

494,102

2.34

21,972,439

742,7123.38

33,300,316

400,1851.20

32,321,403

551,372

1.71

34,229,809

802,454

2.34

Domestic

49,365,484

145,5860.29

50,504,454

165,188

0.33

48,966,375

175,044

0.36

Foreign

9,417,502

168,910

1.79

12,603,729

382,800

3.04

12,562,197

545,364

4.34

Total

58,782,986

314,496

0.54

63,108,183

547,988

0.87

61,528,572

720,408

1.17

Domestic

66,686,589

598,484

0.90

68,042,979

746,937

1.10

68,605,472

917,073

1.34

Foreign

46,772,112

1,133,478

2.42

56,942,271

2,226,730

3.91

55,073,019

3,404,029

6.18

113,458,701

1,731,962

1.53

124,985,250

2,973,667

2.38

123,678,491

4,321,102

3.49

Total
Receivables under securities borrowing
transactions:

Total
Trading account assets:

Total
Investment securities(1):Loans(2):

Total
Total interest-earning assets:
Domestic

175,473,987

825,6410.47

175,859,121

997,1240.57

178,357,394

1,209,104

0.68

Foreign

100,705,062

1,705,297

1.69

115,159,225

3,614,286

3.14

115,100,948

5,897,970

5.12

276,179,049

2,530,938

0.92

291,018,346

4,611,410

1.58

293,458,342

7,107,074

2.42

Total
Non-interest-earning assets:
Cash and due from banks

51,911,727

54,355,901

54,547,884

Other non-interest-earning
assets

43,795,286

52,138,693

56,174,603

Allowance for credit losses
Total non-interest-earning assets
Total assets(1,297,725)(1,361,071)(1,286,011)

94,409,288

105,133,523

109,436,476¥370,588,337¥396,151,869¥402,894,818

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Table of Contents
Notes:(1) Tax-exempt income of tax-exempt investment securities has not been calculated on a tax equivalent basis because the effect ofsuch calculation would not be material.
(2) Average balances on loans outstanding include all nonaccrual loans and loans modified into troubled debt restructurings. The
amortized portion of net loan origination fees (costs) is included in interest income on loans, which accounts for an immaterial
amount of an adjustment to the yields.
Fiscal years ended March 31,
2022

Averagebalance2023

Interest
expenseAveragerate

Averagebalance2024

Interest
expenseAveragerate

Averagebalance

Interest
expenseAveragerate(in millions, except percentages)
Liabilities and equity:
Interest-bearing liabilities:
Deposits:
Domestic¥142,382,405

34,4320.02 % ¥143,977,238¥ 100,837

0.07 % ¥148,636,503¥ 243,534

0.16 %

Foreign

48,644,527

182,1590.37

54,856,782

1,069,318

1.95

55,965,408

2,271,878

4.06

191,026,932

216,5910.11

198,834,020

1,170,155

0.59

204,601,911

2,515,412

1.23

Domestic

1,756,392(259)(0.01)

2,876,551(238)(0.01)

3,201,180(70)—

Foreign

357,691944

0.26

156,406

4,021

2.57

28,351

2,366

8.35

2,114,083

685

0.03

3,032,957

3,783

0.12

3,229,531

2,296

0.07

Domestic

15,565,212

20,8830.13

20,895,775

308,826

1.48

19,048,334

525,262

2.76

Foreign

10,153,952

6,226

0.06

10,566,506

169,171

1.60

12,015,767

545,349

4.54

25,719,164

27,1090.11

31,462,281

477,997

1.52

31,064,101

1,070,611

3.45

Total

¥

Call money and funds purchased:

Total
Payables under repurchase agreements:

Total
Payables under securities lendingtransactions:
Domestic

362,987402

0.11

451,216486

0.11

771,495

1,698

0.22

Foreign

80,008

4,066

5.08

50,939687

1.35

83,190

5,698

6.85

442,995

4,468

1.01

502,155

1,173

0.23

854,685

7,396

0.87

Total
Commercial paper:
Domestic

1,232,999(76)(0.01)

1,414,564(439)(0.03)

1,324,375

287

0.02

Foreign

3,181,684

4,980

0.16

4,863,555

130,1752.68

5,700,860

312,229

5.48

4,414,683

4,904

0.11

6,278,119

129,736

2.07

7,025,235

312,516

4.45

18,302,064

27,1770.15

14,486,918

31,1230.21

11,608,055

45,1690.39

Total
Due to trust account, other short-termborrowings and trading accountliabilities:
Domestic
Foreign

3,016,333

19,8970.66

3,777,939

27,9390.74

3,047,445

43,601

1.43

21,318,397

47,0740.22

18,264,857

59,0620.32

14,655,500

88,7700.61

Domestic

32,236,949

194,458

0.60

34,480,413

331,5880.96

37,478,426

459,134

1.23

Foreign

2,486,297

65,0682.62

2,022,887

48,5022.40

1,503,254

56,9893.79

34,723,246

259,5260.75

36,503,300

380,090

1.04

38,981,680

516,123

1.32

Domestic

211,839,008

277,0170.13

218,582,675

772,1830.35

222,068,368

1,275,014

0.57

Foreign

67,920,492

283,340

0.42

76,295,014

1,449,813

1.90

78,344,275

3,238,110

4.13

Total

279,759,500

560,357

0.20

294,877,689

2,221,996

0.75

300,412,643

4,513,124

1.50

Non-interest-bearing liabilities

74,559,613

84,973,687

Total equity

16,269,224

16,300,493

19,306,449¥370,588,337¥396,151,869¥402,894,818¥2,593,950

0.92 %

Total
Long-term debt:

Total
Total interest-bearing liabilities:

Total liabilities and equity
Net interest income and interest rate spread
Net interest income as a percentage of totalinterest-earning assets¥1,970,581

0.72 %
0.71 %

A-3

83,175,726¥2,389,414

0.83 %
0.82 %

0.88 %

Table of Contents
The percentage of total average assets attributable to foreign activities was 32.5%, 35.3% and 35.1% respectively, for the fiscal
years ended March 31, 2022, 2023 and 2024.
The percentage of total average liabilities attributable to foreign activities was 32.8%, 35.2% and 31.5%, respectively, for the
fiscal years ended March 31, 2022, 2023 and 2024.
Analysis of Net Interest Income
The following table shows changes in our net interest income by changes in volume and by changes in interest rate for the fiscal
year ended March 31, 2023 compared to the fiscal year ended March 31, 2022, and the fiscal year ended March 31, 2024 compared to
the fiscal year ended March 31, 2023.
Fiscal year ended March 31, 2022
versusfiscal year ended March 31, 2023

Fiscal year ended March 31, 2023
versusfiscal year ended March 31, 2024

Increase (decrease)
due to changes in

Increase (decrease)
due to changes inVolume(1)Rate(1)

Net change

Volume(1)Rate(1)

Net change(in millions)Interest income:Interest-earning deposits in other banks:
Domestic(3,790) ¥(2,199) ¥(5,989) ¥Foreign¥

4,265

303,386

307,651(17,880)936¥

356,456

11,253¥

338,576

12,189Total

475

301,187

301,662(16,944)367,709350,765

Call loans and funds sold:Domestic

7

3,608

3,615

1,689

(3,024)(1,335)

2,789

9,032

11,821

3,777

9,527

13,304

2,796

12,64015,436

5,466

6,503

11,969Domestic(913)(15,791)(16,704)(1,541)

9,494

7,953

Foreign

1,899

111,345

113,244

27,809246,320

274,129986

95,55496,54026,268

255,814282,082

Domestic

531

13,312

13,843428

10,281

10,709Foreign352

26,25526,607

3,625

65,577

69,202883

39,56740,4504,053

75,85879,911

Foreign
Total
Receivables under resale agreements:

Total
Receivables under securities borrowing transactions:

Total
Trading account assets:
Domestic

6,368

2,295

8,663

5,004

(2,532)2,472

Foreign(36,604)

179,128

142,524

21,830226,780

248,610(30,236)

181,423

151,187

26,834

224,248

251,082

Total
Investment securities(2)：Domestic

3,423

16,17919,602(5,147)

15,0039,856

Foreign

70,141

143,749

213,890(1,265)

163,829

162,564

Total

73,564

159,928

233,492(6,412)

178,832

172,420

Domestic

12,400136,053

148,453

6,224

163,912170,136

Foreign

286,034

807,218

1,093,252(75,368)

1,252,667

1,177,299

298,434

943,271

1,241,705(69,144)

1,416,579

1,347,435

Domestic

18,026

153,457

171,483

7,593

204,387

211,980

Foreign

328,876

1,580,113

1,908,989(37,472)

2,321,156

2,283,684

346,902¥ 1,733,570¥ 2,080,472(29,879) ¥2,525,543

Loans:

Total
Total interest income:

Total

¥

Notes:
A-4¥¥

2,495,664

Table of Contents(1) Volume/rate variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total “netchange.”(2) Tax-exempt income of tax-exempt investment securities has not been calculated on a tax equivalent basis because the effect ofsuch calculation would not be material.
Fiscal year ended March 31, 2022
versusfiscal year ended March 31, 2023

Fiscal year ended March 31, 2023
versusfiscal year ended March 31, 2024

Increase (decrease)
due to changes in

Increase (decrease)
due to changes inVolume(1)Rate(1)

Net change

Volume(1)Rate(1)

Net change(in millions)Interest expense:
Deposits:
Domestic
Foreign
Total
Call money and funds purchased:
Domestic
Foreign
Total
Payables under repurchase agreements:
Domestic
Foreign
Total
Payables under securities lending transactions:
Domestic
Foreign
Total
Commercial paper:
Domestic
Foreign
Total
Due to trust account, other short-term borrowings andtrading account liabilities:
Domestic
Foreign
Total
Long-term debt:
Domestic
Foreign
Total
Total interest expense:
Domestic
Foreign
Total
Net interest income:Domestic
Foreign
Total

¥

390

¥

66,015¥66,405

¥

3,366

¥

139,331¥

142,697

26,146

861,013887,159

22,0391,180,521

1,202,560

26,536

927,028

953,564

25,405

1,319,852

1,345,257

(122)

143

21

(24)

192

168

(812)

3,889

3,077

(5,267)

3,612(1,655)

(934)

4,032

3,098

(5,291)

3,804(1,487)

9,520

278,423

287,943(29,494)

245,930

216,436

263

162,682

162,945

26,164350,014376,1789,783

441,105450,888(3,330)595,944592,614

95

(11)

84

491

721

1,212

(1,118)(2,261)(3,379)

673

4,338

5,011

(1,023)(2,272)(3,295)

1,164

5,059

6,223

(13)

(350)

(363)

26

700

726

3,979

121,216

125,195

25,724

156,330

182,054

3,966

120,866

124,832

25,750157,030

182,780(6,470)10,416

3,946(7,172)

21,21814,046

5,435

2,607

8,042

(6,267)

21,92915,662(1,035)13,023

11,988(13,439)

43,147

29,70814,376

122,754

137,130

30,734

96,812

127,546(11,427)(5,139)(16,566)(14,678)

23,165

8,487

2,949

117,615

120,564

16,056

119,977

136,033

17,776477,390495,166(2,073)504,904

502,831

22,466

1,144,007

1,166,473

48,388

1,739,909

1,788,297¥

40,242¥ 1,621,397¥ 1,661,639¥ 2,291,128

¥

250

¥

46,315¥2,244,813¥ (323,933) ¥ (323,683) ¥

9,666

¥

(300,517) ¥(290,851)(85,860)

581,247

495,387(76,194) ¥280,730

306,410¥306,660

Note:A-5

436,106¥

112,173742,516¥

418,833¥¥

204,536

Table of Contents(1) Volume/rate variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total “netchange.”A-6

Table of Contents
II. Investments in Debt Securities
The following table presents the book values, maturities and weighted average yields of Available-for-sale debt securities andHeld-to-maturity debt securities at March 31, 2024. Weighted average yields are calculated based on amortized cost. Yields on taxexempt obligations have not been calculated on a tax equivalent basis because the effect of such calculation would not be material:

Maturities within
one year

Maturities after
one year but
within five years

Maturities after
five years but
within ten years

Maturities after
ten years

AmountAmountAmountAmount

Yield

Yield

Yield

Yield

Total
AmountYield

0.59 % ¥ 23,167,400

0.07 %(in millions, except percentages)
Available-for-sale debt securities:
Japanese national government and Japanese
government agency bonds

0.00 % ¥ 1,866,783

0.21 % ¥361,100

0.35 % ¥ 1,737,910

Japanese prefectural and municipal bonds
Foreign government and official institution
bonds

308,6710.21

487,900

0.12

249,420

0.11

—

—

1,045,991

0.15

855,008

2.98

1,724,655

2.66

690,737

3.63

8,883

7.27

3,279,283

2.96

Corporate bonds

227,365

0.69

584,486

0.76

203,228

0.59

6,512

0.47

1,021,591

0.71

Residential mortgage-backed securities¥ 19,201,607——

13,3790.34

143,147

0.29

1,072,999

0.28

1,229,525

0.28

Asset-backed securities

167,8162.96

1,045,558

3.36

33,7720.84——

1,247,146

3.24

Other debt securities

274,467

1.45

118,336

6.30

1,030

0.58

10,6030.17

404,436

2.83

Total

¥ 21,034,934

0.18 % ¥ 5,841,097

1.68 % ¥ 1,682,434

1.74 % ¥ 2,836,907

0.49 % ¥ 31,395,372

0.57 %¥ 3,497,943

1.04 % ¥ 15,191,741

0.15 %

Held-to-maturity debt securities:
Japanese national government and Japanese
government agency bonds

0.14 % ¥ 7,551,905

0.06 % ¥ 4,085,227

0.30 % ¥Japanese prefectural and municipal bonds

35,1400.45

829,2850.19

1,134,757

0.37

—

—

1,999,182

0.30

Corporate bonds

7,090

0.14

112,400

0.44

—

—

—

—

119,490

0.42

—

—

—

—

—

—

4,952,083

4.73

4,952,083

4.73

—

—

—

1,697,855

5.33

883,6116.79

2,581,466

5.83

Residential mortgage -backed securities

Asset-backed securities
Total—¥ 3,540,173

0.14 % ¥ 8,493,590

A-7

0.07 % ¥ 6,917,839

56,666

1.55 % ¥ 5,892,360

5.00 % ¥ 24,843,962

1.66 %

Table of Contents
III. Loan Portfolio
The following table shows the maturities of our loan portfolio at March 31, 2024:
Maturity
One year or less

One to five years

Five to 15 years

Over 15 years

Total(in millions)

Commercial
Domestic
Foreign
Residential
Card
Krungsri
Other
Total

¥ 26,789,279
22,948,480
669,394
299,404
2,908,152
708,432¥ 54,323,141¥ 20,034,369
19,681,604
2,440,768
179,7993,050,280
838,387¥ 46,225,207¥

8,986,796
4,361,209
5,112,885
5,647
1,919,145
49,200¥ 20,434,882¥¥

1,687,846 ¥ 57,498,290
361,92247,353,215
4,274,331
12,497,378—
484,850
955,319
8,832,896
162,148
1,758,167
7,441,566 ¥ 128,424,796

Unearned income, unamortized premiums—net
and deferred loan fees—net
Total(488,301)¥ 127,936,495

The above loans due after one year which had predetermined interest rates and floating or adjustable interest rates at March 31,
2024 are shown below:
Predetermined
rate

Floating or
adjustable rate

Total

(in millions)

Commercial
Domestic
Foreign
Residential
Card
Krungsri
Other¥ 20,025,696
1,371,475
1,891,300
185,446
3,154,037
744,897¥ 27,372,851

Total

A-8

¥ 10,683,315
23,033,260
9,936,684—
2,770,707
304,838¥ 46,728,804¥ 30,709,011
24,404,735
11,827,984
185,446
5,924,744
1,049,735¥ 74,101,655

Table of Contents
IV. Allowance for Credit Losses
The following table shows an allocation of our allowance for credit losses, credit ratios, and components for ratio calculations at
March 31, 2023 and 2024:

2023

2024
% of loans ineach category
to total loans

AmountAmount% of loans ineach category
to total loans(in millions, except percentages)

Commercial
Domestic
Foreign
Residential
Card
Krungsri
Other¥

Allowance for credit losses Total¥

392,723
326,866
59,74742,469358,031
93,062
1,272,898

Loans, net of unearned income, unamortizedpremiums and deferred loan fees
¥ 119,955,460
Nonaccrual loans¥
1,014,338
Allowance for credit losses as a percentage of loans
1.06%
Nonaccrual loans as a percentage of loans
0.85%
Allowance for credit losses as a percentage ofNonaccrual loans
125.49%46.22%
35.05
10.70
0.39
6.47
1.17
100.00%¥¥392,528
352,986
56,96436,423
414,471
112,849
1,366,221

44.77%
36.87
9.73
0.38
6.88
1.37
100.00%¥ 127,936,495¥ 1,325,174
1.07%
1.04%
103.10%The following table shows ratio of net charge-offs to average loans outstanding for the fiscal years ended March 31, 2022, 2023
and 2024:
Fiscal year ended March 31,

Netcharge-offs

2022
Averageloans
outstanding

Ratio(in millions, except percentages)

Commercial
Domestic
Foreign
Residential
Card
MUAH
Krungsri
Other
Total

¥

¥

24,299¥ 53,231,613

0.05%

21,65130,604,489

0.07

2,107

12,967,432

0.02

18,922487,509

3.88

9,676

8,774,764

0.11

60,584

6,388,121

0.95

42,0581,004,773

4.19

179,297¥ 113,458,701

0.16%

A-9

Table of Contents
Fiscal years ended March 31,

Netcharge-offs

2023
Averageloans
outstanding

Ratio

2024
Averageloans
outstanding

Ratio

34,267¥ 55,649,331

0.06 %

24,03745,314,415

0.05

Net
charge-offs(in millions, except percentages)

Commercial
Domestic
Foreign
Residential
Card
Krungsri
Other
Total

¥

¥

128,300¥ 54,556,136

0.24 %

11,696

41,259,989

0.03

¥

629

13,020,801

0.00

1,283

12,481,513

0.01

17,535466,042

3.76

20,307474,628

4.28

70,032

7,319,483

0.96

115,950

8,154,651

1.42

31,416

8,362,799

0.38

21,4601,603,953

1.34

259,608¥124,985,250

217,304¥ 123,678,491

0.21 %

A-10¥

0.18 %

Table of Contents
V. Deposits
The following table shows the average amount of, and the average rate paid on, the following deposit categories for the fiscal
years ended March 31, 2022, 2023 and 2024:
Fiscal years ended March 31,
2022
Averageamount2023
Averagerate

Averageamount2024
Averagerate

AverageamountAveragerate(in millions, except percentages)

Domestic offices:
Non-interest-bearing demand deposits
Interest-bearing demand deposits
Deposits at noticeTime deposits
Certificates of deposit
Foreign offices:
Non-interest-bearing demand deposits
Interest-bearing deposits, principally time
deposits and certificates of deposit
Total¥ 32,195,640
100,484,992
1,666,104
38,602,335
1,628,974

—%
0.01
0.00
0.07
0.01

¥ 34,108,393
103,411,286
1,556,368
36,563,214
2,446,370

—%
0.06
0.03
0.11
0.01

¥ 35,736,511
107,034,059
1,491,428
37,319,953
2,791,063

—%
0.15
0.07
0.21
0.02

4,627,968—

2,909,735—

2,598,548—

48,644,527¥227,850,540

0.37

54,856,782¥235,852,148

1.95

55,965,408¥242,936,970

4.06

Deposits at notice represent interest-bearing demand deposits which require the depositor to give two or more days notice inadvance of withdrawal.
The average amounts of total deposits by foreign depositors included in domestic offices for the fiscal years ended March 31,
2022, 2023 and 2024 were ¥757,724 million, ¥945,588 million and ¥1,313,848 million, respectively.
At March 31, 2023 and 2024, our uninsured deposits were ¥147,197 billion and ¥157,797 billion, respectively. Our uninsured
deposits consist of (1) the portion of deposits in domestic offices that are in excess of the limit stipulated by the Deposit Insurance Act
in Japan and (2) deposits that are otherwise uninsured (including for example, uninsured account deposits in domestic offices,
uninsured account deposits in foreign offices, or the portion of deposits in foreign offices that are in excess of any country-specificinsurance fund limit). Under the Deposit Insurance Act in Japan, the maximum amount of protection is ¥10 million per customer
within one bank. The ¥10 million maximum applies to all deposits in domestic offices, except for non-interest bearing deposits, which
are non-interest bearing deposits redeemable on demand and maintained by depositors primarily in settlement accounts for payment
and settlement purposes. Domestic office's deposits in settlement accounts are fully protected without a maximum amount limitation.
Certain types of deposits in domestic offices are not covered by the deposit insurance system, such as foreign currency deposits andnegotiable certificates of deposit.
At March 31, 2024, (1) the portion of time deposits in domestic offices that are in excess of the limit stipulated by the Deposit
Insurance Act in Japan and (2) time deposits that are otherwise uninsured (including for example, uninsured account time deposits indomestic offices, uninsured account time deposits in foreign offices, or the portion of time deposits in foreign offices that are in excess
of any country-specific insurance fund limit), by remaining maturity, are shown in the following table:
Portion of time deposits
in domestic offices that are inexcess of the limit stipulated by
the Deposit Insurance Act
in JapanTime deposits
that areotherwise uninsured

Total(in millions)Three months or lessOver three months through six months
Over six months through twelve months
Over twelve months
Total

¥

6,090,191
4,650,302
5,570,130
4,716,399
21,027,022

¥

A-11

¥

¥

30,216,668
7,219,694
4,423,983
902,415
42,762,760¥¥

36,306,859
11,869,996
9,994,113
5,618,814
63,789,782

Table of Contents
CONSOLIDATED FINANCIAL STATEMENTS
INDEX
Page

Report of Independent Registered Public Accounting Firm (PCAOB ID No.1044)
Consolidated Balance Sheets as of March 31, 2023 and 2024
Consolidated Statements of Operations for the Fiscal Years ended March 31, 2022, 2023 (Restated) and 2024
Consolidated Statements of Comprehensive Income for the Fiscal Years ended March 31, 2022, 2023 (Restated) and 2024
Consolidated Statements of Equity for the Fiscal Years ended March 31, 2022, 2023 (Restated) and 2024
Consolidated Statements of Cash Flows for the Fiscal Years ended March 31, 2022, 2023 (Restated) and 2024
Notes to Consolidated Financial Statements
1A. Restatement of the March 31, 2023 Financial Statements
1. Basis of Financial Statements and Summary of Significant Accounting Policies
2. Business Developments
3. Investment Securities
4. Loans and Allowance for Credit Losses
5. Premises and Equipment
6. Goodwill and Other Intangible Assets
7. Lease Transactions
8. Income Taxes
9. Pledged Assets and Collateral
10. Deposits
11. Call Money and Funds Purchased
12. Due to Trust Account, Short-term Borrowings and Long-term Debt
13. Severance Indemnities and Pension Plans
14. Other Assets and Liabilities
15. Offsetting of Derivatives, Repurchase Agreements, and Securities Lending Transactions
16. Repurchase Agreements, and Securities Lending Transactions Accounted for as Secured Borrowings
17. Preferred Stock
18. Common Stock and Capital Surplus
19. Retained Earnings, Legal Reserve and Dividends
20. Accumulated Other Comprehensive Income (Loss)
21. Regulatory Capital Requirements
22. Earnings (Loss) per Common Share Applicable to Common Shareholders of MUFG
23. Derivative Financial Instruments
24. Obligations Under Guarantees and Other Off-balance Sheet Instruments
25. Variable Interest Entities
26. Contingent Liabilities
27. Fees and Commissions Income
28. Trading Account Profits and Losses
29. Business Segments
30. Foreign Activities
31. Fair Value
32. Parent Company Only Financial Information
33. Subsequent Events

F-1

F-3
F-7
F-9
F-11
F-12
F-14
F-16
F-16
F-28
F-32
F-37
F-49
F-50
F-52
F-55
F-59
F-60
F-61
F-61
F-65
F-75
F-77
F-78
F-79
F-80
F-81
F-83
F-87
F-91
F-92
F-96
F-99
F-107
F-108
F-109
F-109
F-112
F-114
F-131
F-134

Table of Contents(This page is intentionally left blank)

F-2

Table of Contents
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and the Shareholders of
Mitsubishi UFJ Financial Group, Inc.
(Kabushiki Kaisha Mitsubishi UFJ Financial Group)
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Mitsubishi UFJ Financial Group, Inc. (Kabushiki Kaisha
Mitsubishi UFJ Financial Group) (“MUFG”) and subsidiaries (together, the “MUFG Group”) as of March 31, 2023 and 2024, therelated consolidated statements of operations, comprehensive income, equity and cash flows for each of the three years in the periods
ended March 31, 2022, 2023 (Restated) and 2024, and the related notes (collectively referred to as the “financial statements”) (allexpressed in Japanese yen). In our opinion, the financial statements present fairly, in all material respects, the financial position of the
MUFG Group as of March 31, 2023 and 2024, and the results of its operations and its cash flows for each of the three years in the
periods ended March 31, 2022, 2023 (Restated) and 2024, in conformity with accounting principles generally accepted in the UnitedStates of America.
We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)(“PCAOB”), the MUFG Group’s internal control over financial reporting as of March 31, 2024, based on criteria established inInternal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission
and our report dated July 30, 2024, expressed an adverse opinion on the MUFG Group’s internal control over financial reporting
because of a material weakness.
Restatement of the March 31, 2023 Financial Statements
As discussed in Note 1A to the financial statements, the accompanying March 31, 2023 financial statements have been restatedto correct an error relating to the accounting treatment for the elimination of the three-month reporting lag in connection with the saleof MUFG Union Bank, N.A.
Basis for Opinion
These financial statements are the responsibility of the MUFG Group’s management. Our responsibility is to express an opinion
on the MUFG Group’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are
required to be independent with respect to the MUFG Group in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or
fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due
to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles usedand significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believethat our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current-period audit of the financial statements thatwere communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that arematerial to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we arenot, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts ordisclosures to which they relate.

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Table of Contents
Allowance for Credit Losses—Commercial and Krungsri Segments — Macroeconomic Variables in Multiple Economic Forecast
Scenarios and Weightings Given to Each Scenario—Refer to Notes 1 and 4 to the Financial Statements
Critical Audit Matter Description
The MUFG Group has banking subsidiaries that engage in lending as one of their core businesses. It maintains an allowance for
credit losses, which is an estimate of the credit losses that are expected over the life, or exposure, of the financial instrument. The
estimation of the allowance for credit losses involves significant judgments on a number of assumptions, including the assessment ofrisk characteristics, assignment of a borrower’s internal credit rating, valuation of collateral, expectations of future economic
conditions and the development of qualitative adjustments. The MUFG Group divides its loan portfolio into the following segments—
Commercial, Residential, Card, Krungsri, and Other—and determines the allowance for credit losses for each segment.
The allowance for credit losses is estimated using quantitative models that incorporate economic forecast scenarios. These
economic forecast scenarios include macroeconomic variables that have historically been correlated with historical credit losses. Thesevariables include, but are not limited to, unemployment rates and gross domestic product. As any one economic forecast scenario isinherently uncertain, multiple economic forecast scenarios were leveraged. The macroeconomic variables in multiple economic
forecast scenarios and weightings given to each scenario depend on a variety of factors including recent economic conditions andviews of internal as well as third-party economists.
The determination of the allowance for credit losses for the Commercial and Krungsri segments required management to makesignificant judgements due to the subjectivity and uncertainty associated with expectations of future economic conditions. Due to theheightened volatility and uncertainty primarily arising from changes in global economic conditions, inflation, monetary policies, andgeopolitical situations, there was a particularly high degree of uncertainty necessitating subjective judgments to be made bymanagement to determine certain macroeconomic variables in the multiple economic forecast scenarios and the weightings given toeach scenario.
Thus, we identified certain macroeconomic variables in the multiple economic forecast scenarios and the weightings given toeach scenario, which are used to determine the allowance for credit losses for certain loans within the Commercial and Krungsri
segments as critical audit matters. Auditing these significant assumptions required a high degree of auditor judgment and an increased
extent of effort, including the need to involve our credit specialists, when performing audit procedures to evaluate the reasonablenessof these significant assumptions.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to certain macroeconomic variables in the multiple economic forecast scenarios and the weightingsgiven to each scenario used to determine the allowance for credit losses for certain loans within the Commercial and Krungsri
segments included the following, among others:•

We tested the effectiveness of controls, including the review and approval of certain macroeconomic variables in the multiple
economic forecast scenarios, and the review and approval of the weightings given to each scenario.

•

We tested the effectiveness of controls over the completeness and accuracy of the key information used in performing the
aforementioned controls.

•

With the assistance of our credit specialists, we evaluated the reasonableness of certain macroeconomic variables in themultiple economic forecast scenarios, such as unemployment rate and gross domestic product, and the reasonableness of theweightings given to each scenario by comparing to macroeconomic forecasts from available external sources.

Allowance for Credit Losses—Commercial and Krungsri Segments — Qualitative Adjustments—Refer to Notes 1 and 4 to the
Financial Statements
Critical Audit Matter Description
The allowance for credit losses includes qualitative adjustments to cover losses that are expected but were not reflected in themodeled allowance.
The determination of the allowance for credit losses for the Commercial and Krungsri segments required management to makesignificant judgements due to the subjectivity and uncertainty associated with the development of qualitative adjustments. There was aparticularly high degree of uncertainty necessitating subjective judgments to be made by management to develop certain qualitative
adjustments to capture the effects on modelled expected credit losses primarily arising from changes in global economic conditions,inflation, monetary policies, and geopolitical situations for the Commercial segment, and the inflation and temporary relief measures
for the Krungsri segment.

F-4

Table of Contents
Thus, we identified certain qualitative adjustments included in the allowance for credit losses for certain loans within theCommercial and Krungsri segments as a critical audit matter. Auditing these significant assumptions required a high degree of auditor
judgment and an increased extent of effort, including the need to involve our credit specialists, when performing audit procedures toevaluate the reasonableness of these significant assumptions.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to certain qualitative adjustments included in the allowance for credit losses for certain loans within
the Commercial and Krungsri segments included the following, among others:•

We tested the effectiveness of controls, including the review and approval of the quantitative models and methodologies, andthe review and approval of certain qualitative adjustments to modeled results.

•

We tested the effectiveness of controls over the completeness and accuracy of the key information used in performing the
aforementioned controls.

•

With the assistance of our credit specialists, we evaluated the appropriateness of the quantitative models and methodologies
by assessing the conceptual soundness and model performance by inspecting model documentation as well as reperforming
model performance testing to determine whether the models operated as intended.

•With the assistance of credit specialists, we evaluated the reasonableness of the use of qualitative adjustments to modeled
results and tested significant judgments applied by management by comparing management’s results to available relevant
external information.

Allowance for Credit Losses—Commercial Segment—Internal Credit Rating—Refer to Notes 1 and 4 to the Financial Statements
Critical Audit Matter Description
The determination of the allowance for credit losses for the Commercial segment required management to make significant
judgments, due to the subjectivity and uncertainty associated with the determination of internal credit rating for borrowers who wereexperiencing weakness in their business performance, which were highly dependent on the estimation of a borrower’s performanceand business sustainability. When these borrowers’ performance and business sustainability were affected by changes in the external
and internal business environment, including changes in global economic conditions, inflation, monetary policies, and geopoliticalsituations, there was a particularly high degree of uncertainty necessitating subjective judgments to be made by management todetermine the borrowers’ internal credit rating.
Thus, for borrowers who were experiencing weakness in their business performance, we identified the internal credit rating used
to determine the allowance for credit losses for certain loans within the Commercial segment as a critical audit matter. Auditing theborrowers’ internal credit rating required a high degree of auditor judgment and an increased extent of effort, including the need to
involve our credit specialists, when performing audit procedures to evaluate the reasonableness of these significant assumptions.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the internal credit rating for particular borrowers used to determine the allowance for credit
losses for certain loans within the Commercial segment included the following, among others:•

We tested the effectiveness of controls, including the review and approval of the borrowers’ internal credit rating.

•

We tested the effectiveness of controls over the completeness and accuracy of the key information used in performing the
aforementioned controls, including the borrowers’ underlying information.

•

With the assistance of our credit specialists, we tested significant judgments applied by management to determine the internal
credit rating and the appropriateness of the borrowers’ underlying information by comparing them with available relevant
external information.

Valuation of Level 3 Loans Held for Sale—Refer to Notes 1 and 31 to the Financial Statements
Critical Audit Matter Description
The MUFG Group has banking subsidiaries that engage in lending as one of their core businesses. When loans are classified asheld for sale, they are measured at the lower of cost or fair value, and no allowance for loan losses is estimated. The fair value is basedon secondary market prices, recent transactions or discounted cash flows. Unlike financial instruments whose inputs are readily
F-5Table of Contents
observable and, more easily independently corroborated, the valuation of loans held for sale classified as Level 3 is inherently
subjective and often involves the use of unobservable inputs and internal valuation models. Of those level 3 loans held for sale, whenborrowers were experiencing weakness in their business performance, and the market credit information of those borrowers waslimited, there was a particularly high degree of uncertainty necessitating subjective judgments to be made by management todetermine the valuation of loans held for sale.
Thus, for borrowers who were experiencing weakness in their business performance, when the market credit information of thoseborrowers was limited, we identified the valuation of certain level 3 loans held for sale as a critical audit matter. Auditing the valuationof the loans held for sale required a high degree of auditor judgment and an increased extent of effort, including the need to involve
our valuation specialists and credit specialists, when performing audit procedures to evaluate the reasonableness of the valuation.
How the Critical Audit Matter Was Addressed in the Audit
Our audit procedures related to the valuation of certain level 3 loans held for sale included the following, among others:•

With the assistance of our valuation specialists and credit specialists, we evaluated the valuation of the level 3 loans held forsale by comparing to those we independently developed using available external inputs and independent valuation models.

/s/Deloitte Touche Tohmatsu LLC
Tokyo, Japan
July 30, 2024
We have served as the MUFG Group’s auditor since 1976.

F-6

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF MARCH 31, 2023 AND 2024
(in millions)

2023

2024

ASSETSCash and due from banks (Note 9)¥ 60,050,640
Interest-earning deposits in other banks (Note 9)
53,989,863
Cash, due from banks and interest-earning deposits in other banks
114,040,503
Call loans and funds sold1,802,463
Receivables under resale agreements (Note 15)
14,058,963
Receivables under securities borrowing transactions (Note 15)
4,555,748
Trading account assets (including assets pledged that secured parties are permitted to sell or
repledge of ¥11,407,569 and ¥7,370,330 in 2023 and 2024) (including ¥19,691,210 and¥19,716,612 measured at fair value under the fair value option in 2023 and 2024) (Notes 9,15, 23 and 31)
46,168,461
Investment securities (Notes 3, 9 and 31):
Available-for-sale debt securities (including assets pledged that secured parties are permitted
to sell or repledge of ¥6,277,947 and ¥6,086,602 in 2023 and 2024)
35,740,802
Held-to-maturity debt securities (including assets pledged that secured parties are permitted tosell or repledge of ¥8,264,085 and ¥7,345,438 in 2023 and 2024) (fair value of ¥21,386,156
and ¥24,557,514 in 2023 and 2024)
21,520,081
Equity securities (including assets pledged that secured parties are permitted to sell or
repledge of ¥724 and ¥474 in 2023 and 2024) (including ¥4,619,120 and ¥5,648,879 in
2023 and 2024 measured at fair value)
5,001,048
Total investment securities
62,261,931
Loans, net of unearned income, unamortized premiums and deferred loan fees (including assets
pledged that secured parties are permitted to sell or repledge of ¥144,288 and ¥124,818 in
2023 and 2024) (Notes 4 and 9)
119,955,460
Allowance for credit losses (Note 4)(1,272,898)
Net loans
118,682,562
Premises and equipment—net (Notes 5 and 7)
860,578
Customers’ acceptance liability
378,525
Intangible assets—net (Notes 2 and 6)
1,174,223
Goodwill (Notes 2 and 6)
296,772
Other assets (net of allowance for credit losses of ¥15,918 and ¥16,757 at March 31, 2023 and2024) (Notes 7, 8, 9, 13, 14 and 31)
17,455,004
Total assets¥ 381,735,733
Assets of consolidated VIEs included in total assets above that can be used only to settle
obligations of consolidated VIEs (Note 25)
Cash and due from banks¥
8,243Interest-earning deposits in other banks
52,031
Trading account assets
1,367,928
Investment securities
2,076,737
Loans
16,598,585
All other assets
998,096
Total assets of consolidated VIEs
¥ 21,101,620

F-7¥

4,391,530
105,631,633
110,023,163
1,738,416
18,495,497
5,000,989

49,745,992

31,395,372

24,843,962

6,132,092
62,371,426

127,936,495(1,366,221)
126,570,274
873,027
430,221
1,298,966
490,344
20,398,146¥ 397,436,461¥¥

10,14634,166
1,266,293
2,320,543
17,514,131
1,463,239
22,608,518

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS—(Continued)
AS OF MARCH 31, 2023 AND 2024
(in millions, except shares)

2023

2024

LIABILITIES AND EQUITY
Deposits (Notes 9 and 10):
Domestic offices:
Non-interest-bearing
Interest-bearing
Overseas offices:
Non-interest-bearing
Interest-bearing
Total deposits
Call money and funds purchased (Notes 9 and 11)
Payables under repurchase agreements (Notes 9, 15 and 16)
Payables under securities lending transactions (Notes 9, 15 and 16)¥

Due to trust account and other short-term borrowings (including ¥49,555 and ¥54,159 measured
at fair value under the fair value option in 2023 and 2024) (Notes 9, 12 and 31)
Trading account liabilities (Notes 15, 23 and 31)
Bank acceptances outstanding
Long-term debt (including ¥431,338 and ¥234,909 measured at fair value under the fair value
option in 2023 and 2024) (Notes 7, 9, 12 and 31)
Other liabilities (Notes 1, 7, 8, 9, 13, 14, 15, 16, 26 and 31)
Total liabilities
Commitments and contingent liabilities (Notes 24 and 26)
Mitsubishi UFJ Financial Group shareholders’ equity:
Capital stock (Notes 17 and 18)—common stock authorized, 33,000,000,000 shares; common
stock issued, 12,687,710,920 shares and 12,337,710,920 shares at March 31, 2023 and2024, with no stated value
Capital surplus (Note 18)
Retained earnings (Notes 19 and 33):
Appropriated for legal reserve
Unappropriated retained earnings
Accumulated other comprehensive income, net of taxes (Note 20)
Treasury stock, at cost—665,392,775 common shares and 610,482,347 common shares at
March 31, 2023 and 2024
Total Mitsubishi UFJ Financial Group shareholders’ equity
Noncontrolling interests
Total equity
Total liabilities and equity
Liabilities of consolidated VIEs for which creditors or beneficial interest holders do nothave recourse to the general credit of Mitsubishi UFJ Financial Group (Note 25)
Other short-term borrowings
Long-term debt
All other liabilities
Total liabilities of consolidated VIEs¥

36,105,211
147,169,199

2,617,346
49,756,795
235,276,781
3,437,614
40,132,459
1,137,693

2,682,164
60,460,810
246,417,384
5,094,171
35,710,750
1,016,931

14,309,258
14,178,275
378,525

15,796,947
16,587,151
430,22139,071,755
17,347,206
365,269,566

39,922,322
17,983,371
378,959,248

2,090,270
4,902,155

2,090,270
4,636,097

239,571
8,169,710
844,192

239,571
9,072,572
2,221,263(482,552)(614,111)
15,763,346
17,645,662
702,821831,551
16,466,167
18,477,213¥ 381,735,733 ¥ 397,436,461¥¥

See the accompanying notes to Consolidated Financial Statements.

F-8

35,186,603
147,716,037

45,432406,429
163,075
614,936¥¥

46,208379,017
131,066
556,291

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONSFOR THE FISCAL YEARS ENDED MARCH 31, 2022, 2023 (RESTATED) AND 2024
(in millions)

2023(Restated)

2022

2024

Interest income:Loans, including fees (Note 4)¥

Deposits in other banks

1,731,962¥

2,973,667¥

4,321,102

57,392359,054

709,819

Interest

180,959

401,935

572,295

Dividends

133,537

146,053

148,113

Trading account assets

400,185

551,372

802,454

Investment securities:

Call loans and funds sold

4,418

19,854

31,823

Receivables under resale agreements and securities borrowing transactions

22,485

159,475

521,468

2,530,938

4,611,410

7,107,074

216,591

1,170,155

2,515,412

685

3,783

2,296

Payables under repurchase agreements and securities lending transactions

31,577479,170

1,078,007

Due to trust account, other short-term borrowings and trading account liabilities

51,978

188,798

401,286

Long-term debt

259,526

380,090

516,123

Total

560,357

2,221,996

4,513,124

1,970,581

2,389,414

2,593,950

277,995

8,148

237,990

1,692,586

2,381,266

2,355,960

1,658,863

1,701,637

1,898,974

TotalInterest expense:
Deposits
Call money and funds purchased

Net interest income
Provision for credit losses (Note 4)
Net interest income after provision for credit losses
Non-interest income:Fees and commissions income (Note 27)
Foreign exchange gains (losses)—net (Note 28)

106,868

25,232(294,224)

Trading account losses—net (Notes 28 and 31)(824,420)(792,098)(699,049)

Investment securities gains (losses)—net (Note 3)(119,026)(254,178)

1,379,550

Equity in earnings of equity method investees—net (Note 14)

436,583

398,086

463,802

Gains (losses) on sales of loans including valuation adjustment for loans held for sale (Note 4)

16,600(34,039)(45,067)—

349,442—

Other non-interest income

119,32192,828

163,597

Total

1,394,789

1,486,910

2,867,583

Salaries and employee benefits (Note 13)

1,277,408

1,343,631

1,397,950

Occupancy expenses—net (Notes 5 and 26)

165,323

162,204

156,027

Fees and commissions expenses

310,861

340,141

385,172

Outsourcing expenses, including data processing

317,995

351,323

320,851

Gain on sale of MUFG Union Bank (Note 2)

Non-interest expense:

Depreciation of premises and equipment (Note 5)

82,65273,79379,587

Amortization of intangible assets (Note 6)

261,026

274,380

288,558

Impairment of intangible assets (Note 6)

33,301

5,151

15,042

Insurance premiums, including deposit insurance

95,551

74,33491,005

Communications

57,36958,37558,608

Taxes and public charges

99,659100,291

105,420—

33,553—

Impairment of goodwill (Note 6)
Provision for off-balance sheet credit instruments

46,33920,74732,902

Impairment (reversal of impairment) of assets held for sale (Note 2)

134,141(134,141)

—

3,165

282,540—

Loss on valuation adjustment for loans held for sale held by MUFG Union Bank (Note 2)
Other non-interest expenses (Notes 5 and 26)
Total

F-9

261,312433,632

409,827

3,146,102

3,419,954

3,340,949

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF OPERATIONS—(Continued)
FOR THE FISCAL YEARS ENDED MARCH 31, 2022, 2023 (RESTATED) AND 2024

(in millions, except per share amount)

2022

2023
(Restated)

2024

Income (loss) before income tax expense (benefit)(58,727)

Income tax expense (benefit) (Note 8)(14,511)

41,174

501,567

Net income (loss) before attribution of noncontrolling interests(44,216)

407,048

1,381,027

Net income attributable to noncontrolling interests

448,222

1,882,594

39,10430,413

Net income (loss) attributable to Mitsubishi UFJ Financial Group¥(83,320) ¥376,635¥

1,328,121

52,906

Earnings (loss) applicable to common shareholders of Mitsubishi UFJ Financial Group¥(83,320) ¥376,635¥

1,328,121¥(6.51) ¥30.58¥

110.87

Earnings (loss) per common share applicable to common shareholders of Mitsubishi UFJ Financial
Group (Notes 19 and 22):
Basic earnings (loss) per common share—Earnings (loss) applicable to common shareholders of Mitsubishi
UFJ Financial Group
Diluted earnings (loss) per common share—Earnings (loss) applicable to common shareholders of Mitsubishi
UFJ Financial Group

(6.93)

30.26

110.58Weighted average common shares outstanding

12,79812,318

11,979Weighted average diluted common shares outstanding

12,79812,31911,981

See the accompanying notes to Consolidated Financial Statements.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE FISCAL YEARS ENDED MARCH 31, 2022, 2023 (RESTATED) AND 2024
(in millions)

2023(Restated)2022

Net income (loss) before attribution of noncontrolling interests¥

Other comprehensive income, net of tax (Note 20):
Net unrealized gains (losses) on investment securities
Net debt valuation adjustments
Net unrealized losses on derivatives qualifying for cash flow hedges
Defined benefit plans (Note 13)
Foreign currency translation adjustments
Total
Comprehensive income
Net income attributable to noncontrolling interests
Other comprehensive income attributable to noncontrolling interests
Comprehensive income attributable to Mitsubishi UFJ Financial Group(44,216) ¥(261,493)
23,324(12,774)
50,949752,479
552,485
508,269
39,10435,971¥

433,194

See the accompanying notes to Consolidated Financial Statements.

F-11

¥

2024

407,048¥ 1,381,027(202,955)
17,806(5,117)(20,331)
847,705
637,108
1,044,156
30,413
19,94941,949(44,650)(505)
382,809
1,096,700
1,476,303
2,857,330
52,90699,232

993,794¥ 2,705,192

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF EQUITY
FOR THE FISCAL YEARS ENDED MARCH 31, 2022, 2023 (RESTATED) AND 2024
2022

2023
(Restated)2024¥ 2,090,270¥ 2,090,270¥ 2,090,270¥ 2,090,270¥ 2,090,270¥ 2,090,270(in millions, except per share amount)

Capital stock (Notes 17 and 18):
Balance at beginning of fiscal year
Balance at end of fiscal year
Capital surplus (Note 18):
Balance at beginning of fiscal year
Stock-based compensation
Retirement of common stock
Other—net
Balance at end of fiscal year
Retained earnings appropriated for legal reserve (Note 19):
Balance at beginning of fiscal year
Balance at end of fiscal year
Unappropriated retained earnings (Note 19):
Balance at beginning of fiscal year
Effect of adopting new guidance on troubled debt restructurings and vintage
disclosures
Net income (loss) attributable to Mitsubishi UFJ Financial Group
Cash dividends:
Common stock—¥26.00 per share in 2022, ¥30.50 per share in 2023, and¥36.50 per share in 2024
Balance at end of fiscal year

F-12

¥ 5,533,761 ¥ 5,327,772 ¥ 4,902,155
1,555(6,022)(792)(204,456)(418,098)(265,010)(3,088)(1,497)(256)¥ 5,327,772 ¥ 4,902,155 ¥ 4,636,097¥

239,571¥239,571¥239,571¥239,571¥239,571¥239,571¥ 8,589,900¥ 8,172,646¥ 8,169,710—(83,320)—
376,635

13,663
1,328,121(333,934)(379,571)(438,922)¥ 8,172,646 ¥ 8,169,710 ¥ 9,072,572

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF EQUITY—(Continued)
FOR THE FISCAL YEARS ENDED MARCH 31, 2022, 2023 (RESTATED) AND 2024

(in millions)

2023(Restated)

2022

2024

Accumulated other comprehensive income (loss), net of taxes:
Balance at beginning of fiscal year
Net change during the fiscal year
Balance at end of fiscal year
Treasury stock, at cost:¥

Balance at beginning of fiscal year
Purchases of shares of treasury stock (Note 18)
Sales of shares of treasury stock
Retirement of common stock
Net increase resulting from changes in interests in consolidated subsidiaries,
consolidated VIEs, and affiliated companies
Balance at end of fiscal year
Total Mitsubishi UFJ Financial Group shareholders’ equity
Noncontrolling interests:¥

Balance at beginning of fiscal year
Initial subscriptions of noncontrolling interests
Transactions between the consolidated subsidiaries and the related noncontrollinginterest shareholders
Decrease in noncontrolling interests related to deconsolidation of subsidiaries
Decrease in noncontrolling interests related to disposition of subsidiaries
Net income attributable to noncontrolling interests
Dividends paid to noncontrolling interests
Other comprehensive income, net of taxes
Other—net¥¥

Balance at end of fiscal year
Total equity(289,481) ¥516,514227,033 ¥

227,033
617,159
844,192(503,072) ¥(158,529)
5,581
204,456(452,224) ¥(450,376)
2,118
418,098

844,192
1,377,071¥ 2,221,263

(660)

(168)

(482,552)(400,090)
3,835
265,010(314)¥ (452,224) ¥ (482,552) ¥ (614,111)¥ 15,605,068 ¥ 15,763,346 ¥ 17,645,662
583,605
5,647¥

691,4543,316¥

702,821
58,11767,300(10,174)(22,204)(14,468)(9,925)(32,837)(80)(2,489)(816)
39,10430,41352,906(25,626)(18,784)(25,738)
35,971
19,94999,232
1(939)
70¥691,454 ¥
702,821 ¥831,551¥ 16,296,522 ¥ 16,466,167 ¥ 18,477,213

See the accompanying notes to Consolidated Financial Statements.

F-13

¥

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE FISCAL YEARS ENDED MARCH 31, 2022, 2023 (RESTATED) AND 2024

(in millions)

2022

2023
(Restated)

2024

Cash flows from operating activities:(44,216) ¥407,048

343,678—
33,301—
134,141
3,165
277,995(25,675)
119,026
72,672

348,173
33,5535,151(349,442)(134,141)
282,540
8,148
47,740254,178
51,514368,145—
15,042———
237,990(27,001)(1,379,550)(43,874)(55,634)(345,968)(436,583)(370,668)
4,143,581(2,195,400)(824,720)(103,568)
65,838—118,390909,355(37,318)(508,644)(398,086)(410,275)(184,246)
2,740,193
713,541(136,057)—(1,499,485)
872,051
2,106,136

16,736
511,334(463,802)
93,123(3,046,474)
2,094,319(437,941)
132,819——(942,166)(1,490,273)

Proceeds from sales of Available-for-sale debt securities (including proceeds from debt securities
under the fair value option) (Note 3)

58,611,669

56,577,840

62,450,314

Proceeds from maturities of Available-for-sale debt securities (including proceeds from debt securities
under the fair value option) (Note 3)

36,056,569

32,907,726

31,987,266

Purchases of Available-for-sale debt securities (including purchases of debt securities under the fairvalue option) (Note 3)(94,237,804)(81,038,628)(87,806,011)

565,012(1,712,488)

127,815(16,975,528)

1,380,753(3,889,987)

2,212,801(1,503,946)—(724,428)

2,857,748(1,912,280)(1,711,764)—

3,146,236(2,893,370)
—
—

—
—
—
—
164,122————(1,496,724)(64,104)(28,917)(46,025)(42,817)(1,709,541)

1,005,422
76,068(102,964)(264,038)
65,39842,050(16,608)
236,835(1,297,909)
32,214(116,367)(272,534)
137,992
1,697(34,917)(12,213,619)(3,646,170)
57,728(113,716)(315,146)
41,179163,521
60,247(1,268,560)

Net income (loss) before attribution of noncontrolling interests
Adjustments to reconcile net income before attribution of noncontrolling interests to net cash provided byoperating activities:
Depreciation and amortization (Notes 5 and 6)
Impairment of goodwill (Note 6)
Impairment of intangible assets (Note 6)
Gain on sale of MUFG Union Bank (Note 2)
Impairment (reversal of impairment) of assets held for sale (Note 2)
Loss on valuation adjustment for loans held for sale held by MUFG Union Bank (Note 2)
Provision for credit losses (Note 4)
Employee benefit cost (income) for severance indemnities and pension plans (Note 13)
Investment securities (gains) losses—net
Amortization of premiums (discounts) on investment securities
Changes in financial instruments measured at fair value under fair value option, excluding trading
account securities—net (Note 31)
Foreign exchange (gains) losses—net
Equity in earnings of equity method investees—net
Provision (benefit) for deferred income tax expense
Decrease (increase) in trading account assets, excluding foreign exchange contracts
Increase (decrease) in trading account liabilities, excluding foreign exchange contracts
Net decrease (increase) in collateral for derivative transactions
Net decrease (increase) in margin for listed derivative transactions
Decrease in cash collateral for the use of Bank of Japan’s settlement infrastructure
Net increase in loans held for sale in the business transferred to U.S. Bancorp (Note2)
Other—net
Net cash provided by (used in) operating activities
Cash flows from investing activities:

Proceeds from maturities of Held-to-maturity debt securities
Purchases of Held-to-maturity debt securities
Proceeds from sales and redemption of Equity securities (including proceeds from equity securities
under the fair value option)
Purchases of Equity securities (including purchases of equity securities under the fair value option)
Net decrease in cash from sale of MUB
Net cash paid for dispositions of certain business of MUAH
Acquisition of HC Consumer Finance Philippines, Inc., a subsidiary of BK, net of cash acquired (Note 2)
Acquisition of PT Home Credit Indonesia, a subsidiary of BK, net of cash acquired (Note 2)
Acquisition of PT Mandala Multifinance Tbk, a subsidiary of BK, net of cash acquired (Note 2)
Acquisition of AlbaCore Capital Group., a subsidiary of TB, net of cash acquired (Note 2)
Net decrease (increase) in loans
Net decrease (increase) in call loans, funds sold, and receivables under resale agreements andsecurities borrowing transactions
Proceeds from sales of premises and equipment
Capital expenditures for premises and equipment
Purchases of intangible assets
Proceeds from sales and dispositions of investments in equity method investees
Proceeds from sales of consolidated VIEs and subsidiaries—net
Other—net
Net cash provided by (used in) investing activities

F-14

¥

¥

1,381,027

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS—(Continued)
FOR THE FISCAL YEARS ENDED MARCH 31, 2022, 2023 (RESTATED) AND 2024
(in millions)

2023(Restated)

2022

Cash flows from financing activities:
Net increase in deposits
Net increase (decrease) in call money, funds purchased, and payables under repurchase agreements andsecurities lending transactions
Net increase (decrease) in due to trust account and other short-term borrowings
Proceeds from issuance of long-term debt
Repayments of long-term debt
Proceeds from sales of treasury stock
Payments for acquisition of treasury stock (Note 18)
Dividends paid
Dividends paid by subsidiaries to noncontrolling interests
Other—net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of fiscal year
Cash and cash equivalents:
Cash, due from banks and interest-earning deposits in other banks
Restricted cash included in other assets
Cash and cash equivalents classified as assets held for sale included in other assets (Note 2)
Cash and cash equivalents at end of fiscal year
Supplemental disclosure of cash flow information:
Cash paid during the fiscal year for:
Interest
Income taxes, net of refunds
Non-cash investing and financing activities:
Assets acquired under finance lease arrangements (Note 7)
Assets acquired under operating lease arrangements (Note 7)
Reclassification of assets and liabilities in transferred business of MUFG Union Bank to assets and liabilities
held for sale (Note 2)
Assets reclassified, excluding cash and cash equivalents
Liabilities reclassified
Dispositions of certain business of MUAH
Assets transferred, excluding cash and cash equivalents
Liabilities transferred
Sale of MUFG Union Bank (Note 2)
Assets sold, excluding cash and cash equivalents
Liabilities soldShares of U.S. Bancorp common stock received
Non-interest bearing note receivable from U.S. Bancorp
Acquisition of HC Consumer Finance Philippines, Inc., a subsidiary of BK (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents
Fair value of liabilities assumed
Acquisition of PT Home Credit Indonesia, a subsidiary of BK (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents
Fair value of liabilities assumed
Acquisition of PT Mandala Multifinance Tbk, a subsidiary of BK (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents
Fair value of liabilities assumed
Fair value of noncontrolling interests
Acquisition of AlbaCore Capital Group, a subsidiary of TB (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents
Fair value of liabilities assumed
Fair value of noncontrolling interests
Contingent consideration liabilities

1,559,807

6,207,093

3,659,260

1,128,806
4,404,313
4,659,212(5,466,007)
2,688(158,529)(333,844)(25,626)(385,778)
5,385,042
1,251,522
7,782,754
103,328,790

11,656,491(8,456,081)
7,529,772(4,168,619)
1,212(450,376)(379,490)(18,784)
55,05911,976,277
1,063,752
2,932,546
111,111,544(6,039,816)
804,718
3,188,412(3,962,569)
3,327(400,090)(438,716)(25,738)(39,223)(3,250,435)
1,994,454(4,014,814)
114,044,090

109,820,547
5,778
1,285,219¥ 111,111,544

114,040,503
3,587—¥ 114,044,090

110,023,163
6,113—¥ 110,029,276

¥

¥

¥

596,453
220,139

1,942,163
453,869

4,363,668
520,859

4,055
48,095

11,06635,67816,17450,996

10,336,348
11,157,660

—
—

—
—

4,477
758,654

—
—

—
—

—
—
—
—

11,501,815
13,127,973
276,099
396,601

—
—
—
—

—
—

—
—

160,036
96,152————59,31730,494

—
—
—

—
—
—

99,031
34,676
10,448

—
—
—
—

—
—
—
—

90,197
12,187
17,214
17,979See the accompanying notes to Consolidated Financial Statements.
F-15

2024

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1A. RESTATEMENT OF THE MARCH 31, 2023 FINANCIAL STATEMENTS
Subsequent to the issuance of the March 31, 2023 financial statements, Mitsubishi UFJ Financial Group, Inc. (“MUFG”)
concluded it was necessary to restate the March 31, 2023 consolidated financial statements to correct an error related to the accounting
treatment for the elimination of the three-month reporting lag in connection with the sale of MUFG Union Bank N.A. (“MUFG Union
Bank”) that was completed on December 1, 2022 (the “sale date”).
Prior to the sale of MUFG Union Bank, we treated the December 31 fiscal year end of MUFG Union Bank as coterminous with
MUFG’s fiscal year end of March 31 and consolidated the subsidiary on a three-month lag pursuant to ASC 810-10-45-12. Upon
deconsolidation of MUFG Union Bank, the profit, loss and other comprehensive income for the three-month period preceding the saledate were not reflected on our consolidated statements of operations and comprehensive income but instead were recognized as direct
adjustments to the retained earnings and accumulated other comprehensive income, respectively, as a reduction of the carrying valueof MUFG Union Bank, as previously reported in our consolidated financial statements for the fiscal year ended March 31, 2023.
Subsequent to the issuance of our March 2023 financial statements, we received comments on the financial statements from thestaff of the Securities and Exchange Commission. In response to these comments, MUFG concluded that the carrying basis of MUFG
Union Bank used in the deconsolidation, and resulting measurement of the gain on sale, should have been based on the amounts as ofthe date three months prior to the sale date. Correction of this error results in amounts previously recognized as direct adjustments toequity, including retained earnings of ¥223,273 million, net of tax, being recognized as reductions of the gain on sale.
The following table presents the adjustments resulting from the correction of the error, the previously reported amounts and therestated amounts, by each financial statement line item and the per-share amounts affected, for the year ended March 31, 2023.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
March 31, 2023
As Previously
Reported(in millions)

Adjustments

As Restated

Consolidated Statement of Operations
Gain on sale of MUFG Union Bank (Note 2)¥

557,954
1,695,422
656,734
26,413
630,321599,908
599,908¥

48.70

Total Non-interest income
Income (loss) before income tax expense (benefit)
Income tax expense (benefit) (Note 8)
Net income (loss) before attribution of noncontrolling interests
Net income (loss) attributable to Mitsubishi UFJ Financial Group
Earnings (loss) applicable to common shareholders of Mitsubishi UFJ Financial Group¥ (208,512) ¥ 349,442(208,512)
1,486,910(208,512)
448,222
14,761
41,174(223,273)
407,048(223,273)
376,635(223,273)
376,635

Earnings (loss) per common share applicable to common shareholders of Mitsubishi UFJ Financial Group(Notes 19 and 22):
Basic earnings (loss) per common share—Earnings (loss) applicable to common shareholders of Mitsubishi
UFJ Financial Group
Diluted earnings (loss) per common share—Earnings (loss) applicable to common shareholders of Mitsubishi
UFJ Financial Group¥(18.12) ¥

30.58

48.39

(18.13)30.26

630,321¥ (223,273) ¥407,048(220,772)
5,398
7,262
657,399
1,287,720
1,237,358

17,817(10,515)(27,593)(20,291)(243,564)(243,564)(202,955)(5,117)(20,331)
637,108
1,044,156
993,794

Consolidated Statement of Comprehensive Income¥

Net income (loss) before attribution of noncontrolling interests
Other comprehensive income, net of tax (Note 20):
Net unrealized gains (losses) on investment securities
Net unrealized losses on derivatives qualifying for cash flow hedges
Defined benefit plans (Note 13)
Total Other comprehensive income, net of tax (Note 20)
Comprehensive income
Comprehensive income attributable to Mitsubishi UFJ Financial Group
Consolidated Statement of Equity
Unappropriated retained earnings (Note 19):¥

Net income (loss) attributable to Mitsubishi UFJ Financial GroupElimination of the difference in reporting periods of the transferred business (Note 2)

599,908 ¥ (223,273) ¥(223,273)
223,273376,635—

637,450(20,291)(20,291)
20,291

617,159—

630,321¥ (223,273) ¥407,048(557,954)(427,776)
874,791

208,512
17,501(2,740)(349,442)(410,275)
872,051

Accumulated other comprehensive income (loss), net of taxes:
Net change during the fiscal year
Elimination of the difference in reporting periods of the transferred business (Note 2)
Consolidated Statement of Cash Flows
Cash flows from operating activities:¥

Net income (loss) before attribution of noncontrolling interests
Adjustments to reconcile net income before attribution of noncontrolling interests to net cash provided byoperating activities:
Gain on sale of MUFG Union Bank (Note 2)
Provision (benefit) for deferred income tax expense
Other—net

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
1.

BASIS OF FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESDescription of Business
MUFG is a holding company for MUFG Bank, Ltd. (“MUFG Bank” or “BK”), Mitsubishi UFJ Trust and Banking Corporation(“Mitsubishi UFJ Trust and Banking” or “TB”), Mitsubishi UFJ Securities Holdings Co., Ltd. (“Mitsubishi UFJ Securities Holdings”),
Mitsubishi UFJ NICOS Co., Ltd. (“Mitsubishi UFJ NICOS”), and other subsidiaries. Mitsubishi UFJ Securities Holdings is anintermediate holding company for Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“Mitsubishi UFJ Morgan Stanley Securities”).
Through its subsidiaries and affiliated companies, MUFG engages in a broad range of financial operations, including commercial
banking, investment banking, trust banking and asset management services, securities businesses, and credit card businesses, and it
provides related services to individual and corporate customers. See Note 29 for more information by business segment.
Basis of Financial Statements
The accompanying consolidated financial statements are presented in Japanese yen, the currency of the country in which MUFG
is incorporated and principally operates. The accompanying consolidated financial statements have been prepared on the basis ofaccounting principles generally accepted in the United States of America (“U.S. GAAP”). In certain respects, the accompanying
consolidated financial statements reflect adjustments to conform with U.S. GAAP and therefore such adjustments are not included in
the consolidated financial statements issued by MUFG in accordance with accounting principles generally accepted in Japan(“Japanese GAAP”) and certain of its subsidiaries in accordance with the corresponding applicable statutory requirements andaccounting practices in their respective countries of incorporation. The major adjustments include those relating to (1) investment
securities, (2) derivative financial instruments, (3) allowance for credit losses, (4) income taxes, (5) consolidation, (6) premises andequipment, (7) transfer of financial assets, (8) accrued severance indemnities and pension liabilities, (9) goodwill and other intangible
assets and (10) lease transactions.
Fiscal years of certain subsidiaries, which end on December 31, and MUFG’s fiscal year, which ends on March 31, have beentreated as coterminous. For the fiscal years ended March 31, 2022, 2023 and 2024, the effect of recording intervening events for thethree-month periods ended March 31 on MUFG’s proportionate equity in net income of subsidiaries with fiscal years ended on
December 31, would have resulted in a decrease of ¥60.64 billion, an increase of ¥16.56 billion, and an increase of ¥14.95 billion to
net income attributable to Mitsubishi UFJ Financial Group, respectively. No intervening events occurred during each of the threemonth periods ended March 31, 2022, 2023 and 2024 which, if recorded, would have had material effects on consolidated total assets,loans, total liabilities, deposits or total equity as of March 31, 2022, 2023 and 2024.
Use of Estimates
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimatesand assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dateof the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates. Material estimates that are particularly susceptible to management judgment primarily relate to theallowance for credit losses, the accounting for goodwill and the valuation of financial instruments, which are described in “Item 5.E.
Critical Accounting Estimates”.
Summary of Significant Accounting Policies
Significant accounting policies applied in the accompanying consolidated financial statements are summarized below:
Consolidation—The accompanying consolidated financial statements include the accounts of MUFG, its subsidiaries and certain
variable interest entities (“VIE”s) (together, the “MUFG Group”). In situations in which the MUFG Group has a controlling financial
interest in other entities, including certain VIEs, such entities are consolidated and noncontrolling interests, if any, are recorded in
Total equity. Intercompany transactions and balances have been eliminated. Investments in affiliated companies (companies overwhich the MUFG Group has the ability to exercise significant influence) are accounted for by the equity method of accounting and arereported in Other assets. The MUFG Group’s equity interest in the earnings of these equity investees and other-than-temporary
impairment are reported in Equity in earnings of equity method investees-net. The MUFG Group recognizes an impairment loss on
investments in equity method investees that is other-than-temporary. The MUFG Group determines whether loss on investments isother-than-temporary, through consideration of various factors, such as inability to recover the carrying amount of the investment, theinability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment, the length of time andthe extent to which the fair value has been less than cost, the financial condition and near-term prospects of the investees, and theintent and ability to retain its investment in the investees for a period of time sufficient to allow for any anticipated recovery in the fair

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
value. The MUFG Group also evaluates additional factors, such as the condition and trend of the economic cycle, and trends in thegeneral market.
The MUFG Group consolidates VIEs if it has the power to direct the activities of a VIE which most significantly impact the
VIE’s economic performance and has the obligation to absorb losses or the right to receive benefits that could potentially besignificant to the VIE. To assess whether a VIE should be consolidated or not, the MUFG Group considers all factors, such as the
purpose and design of the VIE, contractual arrangements, and the MUFG Group’s involvement in both the establishment of the VIEand day-to-day activities of the VIE. The MUFG Group considers a right to make the most significant decisions affecting a VIE todetermine whether it is deemed to have the power to direct the activities of the VIE. Furthermore, the MUFG Group considers its
economic interests in the VIE, including investments in debt or equity instruments issued by the VIE, liquidity and credit
enhancement, and guarantees to determine whether such interests are potentially significant to the VIE or not.
Assets that the MUFG Group holds in an agency, fiduciary or trust capacity are not assets of the MUFG Group and, accordingly,
are not included in the accompanying consolidated balance sheets.
Cash Flows—For the purposes of reporting cash flows, cash and cash equivalents consist of Cash and due from banks, Interestearning deposits in other banks, and certain restricted cash included in Other assets. Restricted cash included in cash and cash
equivalents represents cash or deposits subject to withdrawal or usage restrictions, and mainly consist of reserves on deposits with the
Bank of Japan and similar reserves required for foreign offices and subsidiaries engaged in banking businesses in foreign countries.
Cash flows from qualified hedging activities are classified in the same category as the items being hedged. The cash flows associatedwith derivative instruments and their related gains and losses are classified in the cash flows from operating activities category.
Translation of Foreign Currency Financial Statements and Foreign Currency Transactions—Financial statements of overseas
entities are translated into Japanese yen using the respective fiscal year-end exchange rates for assets and liabilities. Income andexpense items are translated at average rates of exchange for the respective fiscal years.
Foreign currency translation gains and losses related to the financial statements of overseas entities of the MUFG Group, net of
related income tax effects, are credited or charged directly to Foreign currency translation adjustments, a component of Accumulated
other comprehensive income (“Accumulated OCI”). Tax effects of gains and losses on foreign currency translation of the financial
statements of overseas entities are not recognized unless it is apparent that the temporary differences will reverse in the foreseeable
future.
Foreign currency-denominated assets and liabilities are translated into the functional currencies of the individual entities
included in consolidation at the respective fiscal year-end foreign exchange rates. Foreign currency-denominated income and expenses
are translated using average rates of exchange for the respective fiscal years. Gains and losses from such translation are included in
Foreign exchange gains (losses)—net, as appropriate.
Repurchase Agreements, Securities Lending and Other Secured Financing Transactions—Securities sold with agreements torepurchase (“repurchase agreements”), securities purchased with agreements to resell (“resale agreements”) and securities lending andborrowing transactions are accounted for as secured financing or lending transactions, if the transferor has not surrendered control
over the securities. Repurchase agreements and resale agreements are generally carried at the amounts at which the securities will be
subsequently sold or repurchased, and securities lending and borrowing transactions are generally carried at the amount of cash
collateral advanced or received. If they meet the relevant conditions for the surrender of control, they are accounted for as sales of
securities with related off-balance sheet forward repurchase commitments or purchases of securities with related off-balance sheet
forward resale commitments. For the fiscal years ended March 31, 2022, 2023 and 2024, there were no such transactions accounted
for as sales or purchases.
Collateral—For secured lending transactions, including resale agreements, securities borrowing transactions, commercial
lending and derivative transactions, the MUFG Group, as a secured party, generally has the right to require the counterparties toprovide collateral, including letters of credit, cash, securities and other financial assets. For most secured lending transactions, the
MUFG Group maintains strict levels of collateralization governed by a daily mark-to-market analysis. Financial assets pledged ascollateral are generally negotiable financial instruments and are permitted to be sold or repledged by secured parties. If the MUFG
Group sells these financial assets received as collateral, it recognizes the proceeds from the sale and its obligation to return thecollateral. For secured borrowing transactions, principally repurchase agreements and securities lending transactions and derivativetransactions, where the secured party has the right to sell or repledge financial assets pledged as collateral, the MUFG Groupseparately discloses those financial assets pledged as collateral in the accompanying consolidated balance sheets.
Trading Account Securities—Securities and money market instruments held in anticipation of short-term market movements andfor resale to customers are included in Trading account assets, and short trading positions of these instruments are included in Trading
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
account liabilities. Trading positions are carried at fair value in the accompanying consolidated balance sheets and recorded on a tradedate basis. Changes in the fair value of trading positions are recognized in Trading account profits (losses). The MUFG Group has
elected the fair value option for certain foreign securities. See Note 31 for a further discussion of fair value option.
Investment Securities—Debt securities for which the MUFG Group has both the ability and positive intent to hold to maturity
are classified as Held-to-maturity debt securities and are carried at amortized cost. Debt securities that the MUFG Group may not holdto maturity other than those classified as Trading account securities, are classified as Available-for-sale debt securities, and are carriedat their fair values, with unrealized gains and losses reported on a net-of-tax basis within Accumulated OCI, which is a component ofequity. Available-for-sale debt securities are considered to be impaired if the fair value is less than the amortized cost basis. An
impairment loss is recognized in earnings for a security if the MUFG Group has intent to sell such a debt security or if it is more likely
than not the MUFG Group will be required to sell such a debt security before recovery of its amortized cost basis. If not, the credit
component of an impairment loss is recognized in earnings by recording an allowance for credit losses, limited by the amount of
impairment loss. However, the noncredit component of an impairment loss is recognized in Accumulated OCI. In determining whether
a credit loss exists, the MUFG Group generally considers factors such as the financial condition of the issuer and the extent of decline
in fair value. For Held-to-maturity debt securities, an allowance for expected credit losses over the remaining expected life is required
to be provided.
Equity securities include marketable equity investment securities and nonmarketable equity investment securities. Marketable
equity investment securities are measured at fair value with unrealized gains or losses reflected in net income. Nonmarketable equity
investment securities are primarily measured at cost minus impairment, if any, plus or minus changes resulting from observable pricechanges. Nonmarketable equity investment securities held by subsidiaries that are investment companies or brokers and dealers, aresubject to the specialized industry accounting principles for investment companies and brokers and dealers. Securities of thosesubsidiaries are carried at their fair values.
Interest and dividends on investment securities are reported in Interest income. Dividends are recognized when the shareholder
right to receive the dividend is established. Gains and losses on disposition of investment securities are computed using the average
cost method and are recognized on the trade date.
Derivative Financial Instruments—The MUFG Group engages in derivative activities involving swaps, forwards, futures,
options, and other types of derivative contracts. Derivatives are used in trading activities to generate trading revenues and fee income
for its own account and to respond to customers’ financial needs. Derivatives are also used to manage counterparty credit risk andmarket risk exposures to fluctuations in interest and foreign exchange rates, equity and commodity prices.
Derivatives entered into for trading purposes are carried at fair value and are reported as Trading account assets or Trading
account liabilities, as appropriate. The fair values of derivative contracts executed with the same counterparty under legally
enforceable master netting agreements are presented on a gross basis. Changes in the fair value of such contracts are recognizedcurrently in Foreign exchange gains (losses)—net with respect to foreign exchange contracts and in Trading account profits (losses)—
net with respect to interest rate contracts and other types of contracts.
Embedded features that are not clearly and closely related to the host contracts and meet the definition of derivatives are
separated from the host contracts and measured at fair value unless the contracts embedding the derivatives are measured at fair value
in their entirety.
Derivatives are also used to manage exposures to fluctuations in interest and foreign exchange rates arising from mismatches ofasset and liability positions. Certain of those derivatives are designated as hedging instruments and qualify for hedge accounting. The
MUFG Group designates a derivative as a hedging instrument at the inception of each such hedge relationship, and it documents, forsuch individual hedging relationships, the risk management objective and strategy, including the item being hedged, the specific risk
being hedged and the method used to assess the hedge effectiveness. In order for a hedging relationship to qualify for hedge
accounting, the changes in the fair value of the derivative instruments must be highly effective in achieving offsetting changes in fairvalues or variable cash flows of the hedged items attributable to the risk being hedged. All qualifying hedging derivatives are valued atfair value and included in Other assets or Other liabilities, as appropriate. For fair value hedges, the changes in the fair value of ahedging instrument are recognized in the same income statement line as the hedged item. For cash flow hedges, the changes in the fairvalue of a hedging instrument are recognized in Accumulated OCI. Amounts realized on cash flow hedges related to variable rateloans are recognized in Net interest income in the period when the cash flow from the hedged item is realized. Any difference thatarises from gains or losses on hedging derivatives offsetting corresponding gains or losses on the hedged items, and gains and losses
on derivatives attributable to the risks excluded from the assessment of hedge effectiveness are recognized in earnings.
Loans—Loans originated by the MUFG Group (“originated loans”) are carried at the principal amount outstanding, adjusted forunearned income and deferred net nonrefundable loan fees and costs. Originated loans held and intended for dispositions or sale in
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secondary markets are transferred to the held-for-sale classification and carried at the lower of cost or estimated fair value generally on
an individual loan basis. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual
life of the loan as an adjustment to yield using a method that approximates the interest method.
The MUFG Group classifies its loan portfolio into the following portfolio segments—Commercial, Residential, Card, MUFG
Americas Holdings Corporation (“MUFG Americas Holdings” or “MUAH”), Bank of Ayudhya Public Company Limited(“Krungsri”), and Other based on the grouping used by the MUFG Group to determine the allowance for credit losses. The MUFG
Group further classifies the Commercial segment into classes based on initial measurement attributes, risk characteristics, and its
method of monitoring and assessing credit risk. The MUFG Americas Holdings segment was eliminated due to the transfer of the
MUFG Union Bank shares to U.S. Bancorp and the internal reorganization within the MUFG Group during the fiscal year ended
March 31, 2023. Please refer to Note 2 and Note 4 for further information of the transfer.
Past due status is determined based on the contractual terms of the loan and the actual number of days since the date the last
payment was made.
Originated loans are generally placed on nonaccrual status when substantial doubt exists as to the full and timely collection ofeither principal or interest, specifically when principal or interest is contractually past due one month or more with respect to loans
within all classes of the Commercial segment, three months or more with respect to loans within the Card and Krungsri segments, andsix months or more with respect to loans within the Residential segment. A nonaccrual loan may be restored to an accrual status wheninterest and principal payments become current and management expects that the borrower will make future contractual payments asscheduled. When a loan is placed on nonaccrual status, interest accrued but not received is generally reversed against interest income.
Cash receipts on nonaccrual loans, for which the ultimate collectability of principal is uncertain, are applied as principal reductions;otherwise, such collections are credited to income.
Loan Securitization—The MUFG Group securitizes and services commercial, industrial, and residential loans in the normal
course of business. The MUFG Group accounts for a transfer of loans in a securitization transaction as a sale if it meets relevant
conditions for the surrender of control. Otherwise, the transfer is accounted for as a collateralized borrowing transaction. When asecuritization is accounted for as a sale, the proceeds from a sale of financial assets consist of the cash and any other assets obtained,
including beneficial interests and separately recognized servicing assets, in the transfer less any liabilities incurred, including
separately recognized servicing liabilities. All proceeds and reductions of proceeds from a sale shall be initially measured at fair value.
Allowance for Credit Losses (Loans)—The MUFG Group maintains an allowance for credit losses, which is a valuation accountthat is deducted from the amortized cost basis of the loans to present the net amount expected to be collected on the loans. The amountnecessary to adjust the allowance for credit losses for management’s current estimate of expected credit losses on loans is reported in
net income as a credit loss expense.
Actual credit losses (amounts deemed uncollectible, in whole or in part), net of recoveries, are generally determined based on
detailed loan reviews and a credit assessment by management at each balance sheet date and are deducted from the allowance for
credit losses as net charge-offs. The MUFG Group generally applies its charge-off policy to all loans in its portfolio regardless of thetype of borrower. Management believes that the provision for credit losses is adequate.
Key elements relating to the policies and discipline used in determining the allowance for credit losses are credit classificationand the related borrower categorization process. The categorization is based on conditions that may affect the ability of borrowers toservice their debt, taking into consideration current financial information, historical payment experience, credit documentation, public
information, analyses of relevant industry segments and existing economic conditions. In determining the appropriate level of theallowance, the MUFG Group evaluates the probable loss by collateral value, historical loss experience, probability of insolvency andcategory of loan based on its type and characteristics.
For the allowance methodology, the MUFG Group uses quantitative models that incorporate economic forecast scenarios. These
economic forecast scenarios include macroeconomic variables that have historically been correlated with historical credit losses. Thesevariables include, but are not limited to, unemployment rates and gross domestic product. As any one economic forecast scenario isinherently uncertain, multiple economic forecast scenarios were leveraged. The macroeconomic variables in multiple economic
forecast scenarios and weightings given to each scenario depend on a variety of factors including recent economic conditions andviews of internal, as well as third-party, economists. The allowance for credit losses for modifications are primarily measured using a
discounted cash flow methodology that utilizes a discount rate based on the post-modification contractual interest rate, other thancredit losses in the Card segment, for which the allowance is measured using collectively-assessed allowance methodology.

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The allowance for credit losses includes qualitative adjustments to cover losses that are expected but were not reflected in themodeled allowance. For example, factors that the MUFG considers include remaining time to maturity and extent of prepayments,
credit concentration, the volume and severity of past due, changes in lending policy and procedures, among others.
In all segments, when estimating the allowance for credit losses, significant management assumptions are incorporated into
economic variables, qualitative adjustments, or both to capture specific risks or uncertainties.
There are de minimis or zero expected credit losses, for example, for lending and financing transactions, such as Interest-earning
deposits in other banks, Call loans and funds sold, Receivables under resale agreements and Receivables under securities borrowing
transactions because the term is short and the credit quality of the counterparties is normal.
The methodologies used to estimate the allowance and the charge-off policy for the major portfolio segments are as follows:
Commercial segment
In the Commercial segment, expected credit losses of loans are measured on a collective basis when similar risk characteristics
exist. Risk characteristics that are considered for aggregation of loans include internal credit ratings, geographical location, andindustry of the borrower. The collectively-assessed allowance is measured over the contractual term of the loans that is adjusted for
expected prepayments, using probability of default (“PD”), loss given default (“LGD”) and exposure at default (“EAD”) loss
forecasting model, which is based on historical information and adjusted to incorporate expectations of future economic conditions
considering economic variables such as gross domestic product and unemployment rates. The PD is determined as the marginal PD
that denotes the likelihood that a borrower is observed to experience the default during a defined period of time, based on internal
credit rating, geographical location, or industry of the borrower. The LGD is determined as the estimated loss on the loan that would
be realized upon the default of the borrower, mainly based on the historical experience of collections against loans in default. The PD
and LGD are continually reviewed to determine the appropriate level of the allowance for credit loss.
Qualitative adjustments are made to cover losses that are expected but not adequately captured in the quantitative forecastingmodel or economic assumptions, considering factors such as remaining time to maturity and extent of prepayments, the volume andseverity of past due loans, changes in lending policy and procedures, the industry in which a borrower operates, and changes in otherexternal factors. The collectively-assessed allowance methodology incorporates an economic forecast over a three-year period.
Beyond the three-year economic forecast, the allowance methodology reverts to an average historical loss information on a straightline basis over a two-year period. When a loan does not share risk characteristics with other loans, expected credit losses for that loan
are measured on an individual basis. Individually-assessed allowance is measured based on the present value of expected future cash
flows discounted at the loan’s effective interest rate, or the fair value of the collateral if the loan is collateral dependent.
In relation to loans categorized as Legally/Virtually Bankrupt, the carrying amount of loans less estimated value of the collateraland guaranteed amount is generally considered uncollectible, and is charged off.
Residential segment
In the Residential segment, the loans are comprised of smaller-balance homogeneous loans and expected credit losses of loans
are measured on a collective basis. The allowance for credit losses is measured over the contractual term of the loans that is adjusted
for expected prepayments, using the state transition probability matrix, which captures delinquency status changes and prepayments byloans’ remaining term, and is based on historical information and adjusted to incorporate expectations of future economic conditions
considering economic variables, such as unemployment rates. The LGD is also used to capture the estimated loss on the loan thatwould be realized upon the default of the borrower. The collectively-assessed allowance methodology incorporates an economic
forecast over a three-year period. Beyond the three-year economic forecast, the allowance methodology reverts to average historicalloss information on a straight-line basis over a two-year period.
In relation to loans that are in past due status over a certain period of time and deemed uncollectible, the carrying amount ofloans less estimated value of the collateral and guaranteed amount is generally considered uncollectible and is charged off.
Card segment
In the Card segment, the loans are smaller-balance homogeneous loans and expected credit losses of loans are measured on acollective basis. The allowance for credit losses is measured over the contractual term of the loans that is adjusted for expected
prepayments, using the state transition probability matrix, which captures delinquency status changes and prepayments by loans’
remaining term, and is based on historical information and adjusted to incorporate expectations of future economic conditions
considering economic variables, such as unemployment rate. The collectively-assessed allowance methodology incorporates an
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economic forecast over a three-year period. Beyond the three-year economic forecast, the allowance methodology reverts to average
historical loss information.
In relation to loans that are in past due status over a certain period of time and deemed uncollectible, the amount of loans isgenerally fully charged off.
Krungsri segment
In the Krungsri segment, expected credit losses are measured on a collective basis for portfolios of loans that share similar
economic risk characteristics. Expected credit losses are a probability-weighted estimate of the present value of credit losses. These
are measured as the present value of the difference between the cash flows under the contract and the cash flows expected to bereceived arising from the weighting of multiple future economic scenarios that consider economic variables such as gross domestic
product and unemployment rates, discounted at the loan’s effective interest rate. Qualitative adjustments are made to cover losses thatare expected but not adequately captured in the quantitative forecasting model. Loans that do not share risk characteristics areevaluated individually to determine the allowance balance. Individually-assessed allowance is measured based on the present value of
expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral if the loan is collateraldependent.
The allocated allowance for large groups of smaller-balance homogeneous loans is established for smaller balance loans such as
housing loans, credit card loans, and personal loans. These loans are managed on a pool basis, and loss factors are based on expected
net charge-off ranges.
Loans to customers are charged off when they are determined to be uncollectible considering the financial condition of aborrower.
Allowance for Off-Balance Sheet Credit Instruments—The MUFG Group maintains an allowance for credit losses on offbalance sheet credit instruments that are not unconditionally cancellable, including commitments to extend credit, guarantees, standby
letters of credit and other financial instruments. The allowance is recorded as a liability in Other liabilities. The MUFG Group adopts
the same methodology used in determining the allowance for credit losses on loans. Potential credit losses related to derivatives are
considered in the fair value of the derivatives.
Premises and Equipment—Premises and equipment are stated at cost less accumulated depreciation and amortization.
Depreciation is charged to operations over the estimated useful lives of the related assets. Leasehold improvements are depreciatedover the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. MUFG, MUFG Bankand Mitsubishi UFJ Trust and Banking apply the declining-balance method in depreciating their premises and equipment, while othersubsidiaries mainly apply the straight-line method, at rates principally based on the following estimated useful lives:
Years

Buildings
Equipment and furniture
Leasehold improvements

15 to 50
2 to 20
5 to 39

Maintenance, repairs and minor improvements are charged to operations as incurred. Major improvements are capitalized. Net
gains or losses on dispositions of premises and equipment are included in Other non-interest income or expense, as appropriate.
Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amountof an asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amountto future undiscounted net cash flows expected to be generated by the asset. If an asset is considered to be impaired, the impairment tobe recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value. For purposes ofrecognition and measurement of an impairment loss, a long-lived asset or assets are grouped with other assets and liabilities at thelowest level with independent and identifiable cash flows. Assets to be disposed of by sale are reported at the lower of the carrying
amount or fair value less estimated cost to sell.
Asset retirement obligations related to restoration of certain leased properties upon lease termination are recorded in Otherliabilities with a corresponding increase in leasehold improvements. The amounts represent the present value of expected future cash
flows associated with returning such leased properties to their original condition. The difference between the gross and present valueof expected future cash flows is accreted over the life of the related leases as a non-interest expense.
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Goodwill—The MUFG Group recognizes goodwill, as of the acquisition date, measured as the excess of the purchase price overthe fair value of the net assets acquired. Goodwill related to investments in equity method investees is included in Other assets as apart of the carrying amount of investments in equity method investees.
Goodwill arising from a business combination is not amortized but is tested at least annually for impairment. Goodwill isrecorded at a designated reporting unit level for the purpose of assessing impairment.
A reporting unit is an operating segment, or an identified business unit one level below an operating segment. An impairment
loss is recognized to the extent that the carrying amount of a reporting unit exceeds its fair value, but not exceeding the total amount of
goodwill allocated to that reporting unit.
Intangible assets—Intangible assets consist of software, core deposit intangibles, customer relationships, trade names and otherintangible assets. These are amortized over their estimated useful lives unless they have indefinite useful lives. Amortization of
intangible assets is computed in a manner that best reflects the economic benefits of the intangible assets as follows:
Useful lives(years)Amortization method

Software3 to 10 Straight-line

Core deposit intangibles
Customer relationships
Trade names

9 to 16 Straight-line
3 to 27 Straight-line, Declining-balance
5 to 40 Straight-line

Intangible assets having indefinite useful lives are not amortized but are subject to annual impairment tests. An impairment
exists if the carrying value of an indefinite-lived intangible asset exceeds its fair value. For other intangible assets subject toamortization, an impairment is recognized if the carrying amount is not recoverable and the carrying amount exceeds the fair value ofthe intangible asset.
The MUFG Group capitalizes certain costs associated with the acquisition or development of internal-use software. Costs
subject to capitalization are salaries and employee benefits for employees who are directly associated with and who devote time to theinternal-use computer software project, to the extent of time spent directly on the project. Once the software is ready for its intended
use, the MUFG Group begins to amortize capitalized costs on a straight-line basis.
Accrued Severance and Pension Liabilities—The MUFG Group has defined benefit pension plans and other postretirement
benefit plans, including severance indemnities plans (“SIPs”). The liabilities related to these plans are computed and recognized basedon actuarial computations. Net actuarial gains and losses that arise from differences between actual experience and assumptions are
generally amortized over the average remaining service period of participating employees if it exceeds the corridor, which is definedas the greater of 10% of plan assets or the projected benefit obligation. Under the guidance related to employers’ accounting fordefined benefit pension and other postretirement plans, the MUFG Group recognizes a net liability or asset to report the funded statusof its defined benefit pension and other postretirement plans in the accompanying consolidated balance sheets and mainly recognizeschanges in the funded status of defined benefit pension and other postretirement plans in the year in which the changes occur in
Accumulated OCI. Based on actuarial computations of current and future employee benefits, the service cost component is charged to
Salaries and employee benefits while other components of net pension benefit/cost are charged to Other non-interest expenses. The
MUFG Group measures plan assets and benefit obligations as of the date of the consolidated balance sheets.
Long-Term Debt—Premiums, discounts and issuance costs of long-term debt are amortized based on the method thatapproximates the interest method over the term of the long-term debt.
Obligations under Guarantees—The MUFG Group provides customers with a variety of guarantees and similar arrangements,
including standby letters of credit, financial and performance guarantees, credit protection, and liquidity facilities. The MUFG Group
recognizes guarantee fee income over the guarantee period based on the contractual terms of the guarantee contracts. It is the MUFG
Group’s business practice to receive a guarantee fee at the inception of the guarantee, which approximates market value of theguarantee and is initially recorded as a liability, which is then recognized as guarantee fee income over the guarantee period.
Allowance for Repayment of Excess Interest—The MUFG Group maintains an allowance for repayment of excess interest basedon an analysis of past experience of reimbursement of excess interest, borrowers’ profile, recent trend of borrowers’ claims forreimbursement, and management’s future forecasts. The allowance is recorded as a liability in Other liabilities.

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Fees and Commissions—The MUFG Group recognizes revenue from contracts with customers in the amount of consideration it
expects to receive upon the transfer of control of service. The timing of recognition is dependent on whether the MUFG Groupsatisfies a performance obligation by transferring control of the product or service to a customer over time or at a point in time.
The following is an explanation of the MUFG Group’s key revenue from contracts with customers and the timing of its
recognition.
Fees and commissions on deposits consist of fees and commissions charged for transaction-based services such as usage of
automated teller machines and withdrawal services, and for periodic account maintenance services. The MUFG Group’s performanceobligation for transaction-based services is satisfied and the fees and commissions are recognized at the point in time when the MUFG
Group’s performance under the terms of a contractual arrangement is completed, which is at the settlement of a transaction, while the
MUFG Group’s performance obligation for maintenance services is satisfied and the fees and commissions are recognized over thecourse of each month.
Fees and commissions on remittances and transfers consist of fees and commissions charged for settlement transactions such as
domestic fund remittances, including electronic banking transactions, and are recognized at the point in time when the MUFG Group’s
performance under the terms of a contractual arrangement is completed, which is at the settlement of a transaction.
Fees and commissions on foreign trading business consist of fees and commissions charged for fund collection and trade-related
financing services related to foreign trading business, and are recognized in the period in which the related service is provided. If theyarise from foreign trading business activities under which the customer consumes the related services at a point in time (e.g. foreignexchange fees), such fees are recognized at the same point in time. If they arise from foreign trading business activities under which
the customer consumes the related services equally over the period of service (e.g. commercial letters of credit), such fees arerecognized over the same period.
Fees and commissions on credit card business consist of fees and commissions such as interchange income, royalty and otherservice charges from franchisees. Interchange income from the credit card business is recognized as processed transactions are settled
through the associated payment networks, while royalty and other service charges related to the credit card business are recognized ona straight-line basis over the period of service.
Fees and commissions on security-related services primarily consist of fees and commissions for sales and transfers of securities
including investment funds, underwriting, brokerage and advisory services, arrangement fees on securitizations, and agency services
for the calculation and payment of dividends. Fees and commissions on security-related services are recognized in the period in which
the related service is provided. If they arise from security-related services under which the customer consumes the related services at apoint in time (e.g. sales and transfers of securities are executed at the customer’s direction; underwritings of debt and equity securities
or securitizations are completed at the trade date; advice is provided to the clients; and dividends are calculated and then paid toinvestors), such fees are recognized at the same point in time. If they arise from security-related services under which the customer
consumes the related services equally over the period of service (e.g. retainer fees on M&A advisory fees), such fees are recognizedover the same period. The advisory fees which are paid upon meeting certain performance goals (e.g. success fees on M&A advisoryfees) are recognized at the point in time when the performance goals are met.
Fees and commissions on administration and management services for investment funds primarily consist of fees andcommissions earned from administrating and managing investment funds, including assets under management on behalf of clients.
Such fees and commissions are recognized equally over the period of service at the amount calculated primarily based on theoutstanding amount of each entrusted asset, the percentage of fees, and the extent of the service provided to administer the investment
funds.
Trust fees consist primarily of fees earned by fiduciary asset management and administration services for corporate pension
plans and investment funds, and are recognized on an accrual basis, generally based on the volume of trust assets under management
and/or the operating performance for the accounting period of each trust account. With respect to the trust accounts with a guarantee oftrust principal, trust fees are determined based on the profits earned by individual trust accounts during the trust accounting period,
less deductions, including provision for reserves, impairment for individual investments and dividends paid to beneficiary certificate
holders. The trust fees for these trust accounts are accrued based on the amounts expected to be earned during the accounting period ofeach trust account.
Guarantee fees consist of fees related to the guarantee business such as providing guarantees on residential mortgage loans andother loans, and are recognized over the contractual periods of the respective guarantees.

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Insurance commissions consist of commissions earned from third-party insurance companies for marketing and sellinginsurance products and for the maintenance of insurance contracts. The former is recognized at the point in time which the associatedservice is fulfilled as the insurance contract is established by the insurance company, while the latter is recognized over the insurance
period.
Fees and commissions on real estate business primarily consist of fees from real estate agent services, and are recognized in the
period in which the related service is provided when assisting customers in the sales or purchase of real estate property.
Other fees and commissions include various fees and commissions earned on services to customers which have performanceobligations that the MUFG Group completes in order to recognize revenue. The primary portion includes non-refundable financing
related fees such as arrangement fees that are recognized when the service is provided.
Income Taxes—The MUFG Group accounts for income taxes under the asset and liability method, which requires therecognition of deferred tax assets and deferred tax liabilities for the expected future tax consequences of events that have been
included in the accompanying consolidated financial statements. Under this method, deferred tax assets and deferred tax liabilities are
determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in
effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets anddeferred tax liabilities is recognized in income in the period that includes the enactment date.
The MUFG Group records net deferred tax assets to the extent these assets will more likely than not be realized. In making suchdetermination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary
differences, projected future taxable income, tax planning strategies and recent financial operations. In the event the MUFG Group
were to determine that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, the MUFG
Group would make an adjustment to the valuation allowance, which would reduce the provision for income taxes.
Uncertain tax positions are recorded on the basis of a two-step process whereby (1) it is determined whether it is more likely
than not that the tax position will be sustained on the basis of its technical merits, and (2) for those tax positions that meet the morelikely-than-not recognition threshold, the MUFG Group recognizes the largest amount of tax benefit that is more than 50% likely to berealized upon ultimate settlement with the related tax authority. The MUFG Group recognizes interest and penalties related tounrecognized tax benefits within income tax expense. Accrued interest and penalties are included within Other liabilities.
Free Distributions of Common Shares—As permitted by the Companies Act of Japan (the “Companies Act”), Japanesecompanies, upon approval by the Board of Directors, may make a free distribution of shares, in the form of a “stock split” as defined,
to shareholders. In accordance with generally accepted accounting practice in Japan, such distribution does not give rise to any change
in capital stock or capital surplus accounts. Common shares distributed are recorded as shares issued on the distribution date. See Note
18 for further information.
Earnings (loss) per Common Share—Basic earnings per share (“EPS”) excludes dilutive effects of potential common shares andis computed by dividing earnings applicable to common stock shareholders by the weighted average number of common shares
outstanding for the period, while diluted EPS gives effect to all dilutive potential common shares that were outstanding during theperiod, including dilutive effects of restricted stock units and performance-based stock units of Morgan Stanley. See Note 22 for thecomputation of basic and diluted EPS.
Treasury Stock—The MUFG Group presents its treasury stock, including shares of MUFG owned by its subsidiaries andaffiliated companies, as a reduction of equity on the accompanying consolidated balance sheets at cost and accounts for treasury stocktransactions under an average cost method. Gains (losses) on sales of treasury stock are charged to capital surplus and unappropriatedretained earnings.
Comprehensive Income—Comprehensive income includes net income (loss) before attribution to noncontrolling interests andother comprehensive income (“OCI”). All changes in unrealized gains and losses on investment securities, unrealized gains and losses
on derivatives qualifying for cash flow hedges, defined benefit plans and foreign currency translation adjustments constitute OCI and
are presented, with related income tax effects, in the accompanying consolidated statements of comprehensive income. OCI also
includes changes in the instrument-specific credit risk on financial liabilities (“debt valuation adjustments” or “DVA”) accounted forunder the fair value option.
Stock-Based Compensation—MUFG and certain of its subsidiaries have a stock compensation-type stock option plan (“Stock
Option Plan”) for directors (excluding outside directors and directors serving as audit committee members), corporate executives,
executive officers and senior fellows (collectively, “officers”). Compensation costs under the Stock Option Plan are recognized basedon the grant date fair value of the stock option (“Stock Acquisition Rights”) over the period during officers are required to provide
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service in accordance with the terms of the Stock Option Plan. MUFG and certain of its subsidiaries also have performance-based
stock compensation plan (“the Board Incentive Plan”). The awards granted under the Board Incentive Plan are classified as either
liability for the part of award which are provided to officers in cash or equity for the part of award which are provided to officers in thecommon shares of MUFG. Compensation costs are recognized over the requisite service period for the entire awards. For awards
classified as liability, compensation costs are measured based on the fair value calculated by the quoted price of common shares of
MUFG at the date of fiscal year-end and remeasured at the end of each reporting period. Changes in quoted prices of common sharesof MUFG between the date of grant and the settlement of awards are recognized in the period which the changes occur. For awards
classified as equity, compensation costs are measured based on the grant date fair value by the quoted price of the common shares of
MUFG.
Accounting Changes
Troubled Debt Restructurings and Vintage Disclosures—In March 2022, the Financial Accounting Standards Board (“FASB”)
issued new guidance which eliminates the accounting and disclosure requirements for Troubled Debt Restructurings (“TDRs”) by
creditors and introduces new required disclosures for loan modifications made to borrowers experiencing financial difficulty. The
guidance also amends the requirement for vintage disclosures to disclose current period gross charge-offs by year of origination. This
guidance is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early
adoption is permitted, including adoption in an interim period. The guidance should be applied prospectively, except for requirements
related to the recognition and measurement of TDRs, for which entities have the option to apply a modified retrospective transition
method. The MUFG Group adopted the guidance on April 1, 2023, using the modified retrospective transition method on therequirements related to the recognition and measurement of TDRs, and there was no material impact on its financial position andresults of operations. The allowance for modified loans is mainly measured using a discounted cash flow methodology that utilizes a
discount rate based on the post-modification contractual interest rate, other than modified loans in the Card segment, for which theallowance is measured using collectively-assessed allowance methodology.
Recently Issued Accounting Pronouncements
Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions—In June 2022, the FASB issued new
guidance which clarifies the guidance when measuring the fair value of an equity security subject to contractual restrictions thatprohibit the sale of an equity security. The guidance also introduces new disclosure requirements for equity securities subject tocontractual sale restrictions that are measured at fair value. This guidance is effective for fiscal years beginning after December 15,
2023, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The
MUFG Group does not expect that the adoption of this guidance will have a material impact on its consolidated financial statements
and related disclosures.
Improvements to Reportable Segment Disclosures—In November 2023, the FASB issued new guidance which clarifies andenhances the requirements for reportable segment disclosures. This guidance requires additional reportable segment disclosures on anannual and interim basis, primarily about significant segment expenses and other segment items that are regularly provided to the chief
operating decision maker and included within the reported measure of segment profit or loss. This guidance does not change how
operating segments are identified or aggregated, or how quantitative thresholds are applied to determine the reportable segments. The
guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after
December 15, 2024, with early adoption permitted. The MUFG Group is currently evaluating what effect this guidance will have on
its segment information disclosures.

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2.

BUSINESS DEVELOPMENTS

Sale of MUFG Union Bank and Investment in Shares of U.S. Bancorp
In September 2021, the MUFG Group agreed to the sale of all shares in MUFG Union Bank, the wholly-owned primary
operating subsidiary in the United States, to U.S. Bancorp (“USB”), which is not a related party of the MUFG Group. The businesses
of MUFG Union Bank that the MUFG Group sold to USB exclude the Global Corporate & Investment Banking (“GCIB”) business(with certain exceptions as agreed to by the parties, including certain deposits of the GCIB business that were retained by MUFG
Union Bank), the Global Markets business to the extent related to the GCIB business and certain assets and liabilities that are part ofshared middle and back office functions. Under a legal agreement, the assets and liabilities of these operations were transferred toother entities within the MUFG Group before it sold the shares of MUFG Union Bank. Through this transaction, the MUFG Group
aimed to maximize shareholder value by improving our capital efficiency.
The carrying amount of any assets that are not covered by the guidance on long-lived assets and included in the disposal group,
must be adjusted in accordance with other applicable guidance before measuring the disposal group by lower of cost or market
method. The loss amount, which was recognized through lower of cost or market method from the assets and liabilities held for sale,was ¥134,141 million for the fiscal year ended March 31, 2022. Such amount, which included the fluctuation of the fair value related
to the sold business from September 2021 to March 31, 2022, is included in Impairment (reversal of impairment) of assets held forsale in the consolidated statements of operations. However, the fair value less cost to sell exceeded the carrying value during the firsthalf of the fiscal year ended March 31, 2023, and the reversal of ¥134,141 million, which is included in Impairment (reversal of
impairment) of assets held for sale in the consolidated statements of operations, was recognized, and as a result, the valuation
allowance for assets held for sale which was included in Other Asset was fully reversed.
On December 1, 2022, the MUFG Group sold all the issued and outstanding shares of common stock of MUFG Union Bank to
USB for the agreed upon consideration of ¥754.0 billion in cash and 44,374,155 shares, ¥276.1 billion, of USB common stock
representing approximately 3% of the outstanding shares. The MUFG Group would receive from USB an additional ¥464.5 billion in
cash within five years of the closing date, whose discounted present value at sale was ¥396.6 billion. Before the closing of the sale,
MUFG Union Bank declared and paid a special dividend of approximately ¥636.8 billion to MUAH. The MUFG Group recorded apretax gain on the sale of MUFG Union Bank of ¥349.4 billion, net of cost to sell the business. The gain was included in Gain on saleof MUFG Union Bank in the consolidated statements of operations for the fiscal year ended March 31, 2023. The business of MUFG
Union Bank that was transferred to USB had ¥13,935.6 billion in assets at sale, including ¥2,251.3 billion of interest-earning deposits
in other banks, ¥3,123.3 billion of investment securities, and ¥7,567.7 billion of loans. The total amount of liabilities was¥13,128.0 billion, including ¥11,789.9 billion of deposits. The pretax loss recorded for the business transferred to USB was ¥11,385
million and ¥506,329 million for the fiscal years ended March 31, 2022 and 2023, respectively. The cash receipts and cash payments
for loans held for sale that were originated by MUFG Union Bank during the year, prior to the sale to USB, are presented within Net
increase in loans held for sale in the business transferred to USB in the consolidated statement of cash flows for the fiscal year ended
March 31, 2023. MUFG Union Bank's cash and cash equivalents balance at sale was ¥2,433.8 billion, which when combined with
¥754.0 billion in cash received from USB and certain adjustments resulted in a net decrease in cash and cash equivalents at sale of¥1,711.8 billion.
In August 2023, after the completion of the sale of MUFG Union Bank, MUFG Bank additionally acquired 24,000,000 shares of
the common stock of USB for a purchase price of ¥136.8 billion. Following this investment, MUFG Bank’s total shareholding in USB
increased to 4.39%. The proceeds received by USB for the investment were paid to MUAH to reduce the outstanding obligation due
within five years of the closing date of the sale simultaneously.
Acquisition of HC Consumer Finance Philippines, Inc & PT Home Credit Indonesia
On June 1, 2023, MUFG Bank and its consolidated subsidiary, Krungsri, acquired 100% of the shares of HC Consumer FinancePhilippines, Inc. (“HC Philippines”), and paid ¥69,841 million, with certain price adjustments after June 1, 2023, in total in cash. As aresult of the acquisition, Krungsri and MUFG Bank hold 75% and 25% of the shares, respectively.
The total assets and total liabilities of the acquired business of HC Philippines were ¥137,577 million, including net loans of¥108,359 million, and ¥96,152 million, including long-term debt of ¥43,891 million, respectively. The assets acquired and liabilities
assumed were recorded at their fair values on the acquisition date. The goodwill resulting from the acquisition of HC Philippines was¥28,196 million, which was not deductible for income tax purposes, and was allocated to the Global Commercial Banking BusinessGroup Segment. The intangible assets resulting from the acquisitions of HC Philippines was ¥9,373 million with a weighted averageamortization periods of 5.7 years, primarily including ¥6,137 million of a customer relationship with an amortization period of 7.5
years. The revenue and net income of HC Philippines since the acquisition date were ¥38,584 million and ¥2,547 million, respectively,
for the fiscal year ended March 31, 2024. The acquired loans of HC Philippines, other than those purchased with credit deterioration,
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
had a fair value of ¥104,391 million at the acquisition date, with unpaid principal balances of ¥109,032 million. At the acquisitiondate, the MUFG Group estimated these loans’ contractual cash flows expected not to be collected were ¥4,100 million for HC
Philippines.
On October 2, 2023, Krungsri and Bank Danamon's consolidated subsidiary, PT Adira Dinamika Multi Finance, Tbk (“ADMF”)
acquired approximately 84.8% of the shares of PT Home Credit Indonesia, Inc. (“HC Indonesia”), and paid ¥31,812 million in total incash. As a result of the acquisition, Krungsri and ADMF hold 75% and approximately 9.8% of the HC Indonesia's shares, respectively.
In March 2024, Krungsri completed a capital injection of ¥4,896 million into HC Indonesia. Following this capital injection,
Krungsri’s total shareholding in HC Indonesia increased to 80% and ADMF’s total shareholding in HC Indonesia decreased toapproximately 4.9%.
The total assets and total liabilities of the acquired business of HC Indonesia were ¥44,178 million, including net loans of¥24,949 million, and ¥30,494 million, including other short-term borrowings of ¥22,299 million, respectively. The assets acquired andliabilities assumed were recorded at their fair values on the acquisition date. The goodwill resulting from the acquisition of HC
Indonesia was ¥18,034 million, which was not deductible for income tax purposes, and was allocated to the Global Commercial
Banking Business Group Segment. The intangible assets resulting from the acquisitions of HC Indonesia were ¥3,964 million with aweighted average amortization of 6.9 years, primarily including ¥3,582 million of a customer relationship with an amortization periodof 7.1 years. The revenue and net income of HC Indonesia since the acquisition date were ¥6,978 million and ¥345 million,
respectively, for the fiscal year ended March 31, 2024. The fair value of the noncontrolling interests was immaterial. The acquiredloans of HC Indonesia, other than those purchased with credit deterioration, had a fair value of ¥25,768 million at the acquisition date,with unpaid principal balances of ¥27,389 million. At the acquisition date, the MUFG Group estimated these loans’ contractual cash
flows expected not to be collected were ¥1,505 million
The MUFG group intends to strengthen its business in Southeast Asia through the establishment of business platforms in theregion in collaboration with partner banks in which MUFG Bank has invested. In executing this strategy, the MUFG Group willcontinue striving to contribute to the growth of Southeast Asian economy.
During the fiscal year ended March 31, 2024, the MUFG Group incurred ¥1,044 million of acquisition-related costs of HC
Philippines and HC Indonesia.
Pro forma statements of operations
The following unaudited pro forma statements of operations present the result of operations for HC Philippines and HC
Indonesia as if the acquisitions had occurred on April 1, 2022:
HC Philippines

HC Indonesia

Fiscal years ended March 31,

Fiscal years ended March 31,

2023

2024

2023

2024

(in millions)

Statements of operations data
Total revenue .......................................................................... ¥Net income (loss) attributable to Mitsubishi UFJ Financial
Group......................................................................................

45,643
4,166¥

62,218 ¥23,080

4,766

(141)

¥

27,004(139),
The unaudited pro forma statements of operations of HC Philippines include the pro forma adjustments to reflect the impact ofamortizing certain acquisition accounting adjustments relating to intangible assets subject to amortization of ¥1,523 million for the
fiscal year ended March 31, 2023, and ¥1,641 million for the fiscal year ended March 31, 2024. The unaudited pro forma statements ofoperations of HC Indonesia include the pro forma adjustments to reflect the impact of amortizing certain acquisition accounting
adjustments relating to intangible assets subject to amortization of ¥527 million for the fiscal year ended March 31, 2023, and ¥567
million for the fiscal year ended March 31, 2024.
Acquisition of PT Mandala Multifinance Tbk
On March 13, 2024, MUFG Bank and its consolidated subsidiary, ADMF acquired 80.6% of the shares in PT MandalaMultifinance Tbk (“MFIN”). MUFG Bank paid ¥59,025 million and ADMF paid ¥8,360 million in cash. As a result of the acquisition,
MUFG Bank and ADMF hold 70.6% and 10% of the shares, respectively.
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
MFIN is an Indonesian company which mainly provides auto loans for new motorbikes and multi-purpose loans secured by
motorbikes in the domestic market, with strong presence especially in eastern Indonesia. MUFG Bank and ADMF intend to leverage
MFIN’s strengths, in both products and geography, to further reinforce and expand our auto loan business in Indonesia.
The assets acquired and liabilities assumed were recorded at their fair values on the acquisition date. The total assets and total
liabilities of the acquired business were ¥80,236 million, including net loans of ¥47,937 million, and ¥34,676 million, including longterm debt of ¥28,319 million, respectively. The goodwill resulting from the acquisition was ¥31,795 million, which was not deductiblefor income tax purposes, and was allocated to the Global Commercial Banking Business Group Segment. The intangible assets
resulting from the acquisition were ¥15,139 million with a weighted average amortization period of 5.3 years, primarily including¥10,602 million of a customer relationship with an amortization period of 8.0 years. Due to the proximity of the acquisition date to the
MUFG Group's fiscal year end date, the revenue and net income of MFIN for the fiscal year ended March 31, 2024, were not material
to the MUFG Group. The MUFG Group also recorded noncontrolling interests of ¥10,448 million at fair value determined by a quoted
market price as of the acquisition date. The acquired loans of MFIN other than those purchased with credit deterioration had a fairvalue of ¥42,152 million at the acquisition date, with unpaid principal balances of ¥42,633 million. At the acquisition date, the MUFG
Group estimated these loans’ contractual cash flows expected not to be collected were ¥1,450 million.
Pro forma statements of operations
The following unaudited pro forma statements of operations present the result of operations for MFIN as if the acquisition had
occurred on April 1, 2022:
Fiscal years ended March 31,
2023

2024
(in millions)

Statements of operations data
Total revenue ............................................................................................................................ ¥Net income attributable to Mitsubishi UFJ Financial Group ................................................... ¥19,733
3,014¥¥

20,5801,416 ,The unaudited pro forma statements of operations include the pro forma adjustments to reflect the impact of amortizing certain
acquisition accounting adjustments relating to intangible assets subject to amortization of ¥2,630 million and ¥2,748 million for the
fiscal years ended March 31, 2023 and 2024, respectively.
Acquisition of AlbaCore Capital GroupOn November 14, 2023, Mitsubishi UFJ Trust and Banking's consolidated subsidiary, First Sentier Investor acquired 75%
interest in AlbaCore Capital Group (“AlbaCore”). Cash consideration paid on change of control was ¥49,266 million, with fair valueof contingent consideration of ¥17,979 million being recognized. The valuation of the contingent consideration is calculated withreference to certain future earnings metrics and targets of AlbaCore, discounted to net present value. The deferred payment ofcontingent consideration is subject to earnings for certain future fiscal periods exceeding a threshold. If the future earnings exceed thethreshold, a variable payment depending on value of the future earnings will be made.
The MUFG Group has outlined a strategy for sustainable growth and enhanced profitability, which includes capital utilization in
growth areas such as the global asset management business. Through the acquisition of AlbaCore, the MUFG Group will offer new
products in the highly demanded alternatives sector and expand its touchpoints with new customers, thereby further strengthening the
global asset management business.
The assets acquired and liabilities assumed were recorded at their estimated fair values on the acquisition date. During the fiscal
year ended March 31, 2024, the MUFG Group incurred ¥2,599 million of acquisition-related costs. These expenses are included in
Other non-interest expenses in the accompanying consolidated statements of operations for the fiscal year ended March 31, 2024. The
total assets and total liabilities of the acquired business were ¥33,583 million, including cash and bank deposits of ¥6,448 million andintangible assets of ¥23,709 million, and ¥12,187 million, including deferred tax liabilities of ¥5,927 million, respectively. The
goodwill resulting from the acquisition was ¥63,063 million, which was not deductible for income tax purposes, and was allocated to
the Asset Management & Investor Services Business Group Segment. The intangible assets resulting from the acquisition were¥23,709 million with a weighted average amortization period of 15.7 years, primarily including ¥22,478 million of a customer
relationship with a weighted average amortization period of 16.0 years. The MUFG Group also recorded noncontrolling interests of¥17,214 million at fair value based on the consideration paid for its controlling ownership interest adjusted for control premiums,
which were calculated using market data. The revenue and net loss of AlbaCore since the acquisition date were ¥1,107 million and¥155 million, respectively, for the fiscal year ended March 31, 2024.
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Pro forma statements of operations
The following unaudited pro forma statements of operations present the results of operations as if the acquisition of AlbaCore
had occurred on April 1, 2022:
Fiscal years ended March 31,
2023

2024
(in millions)

Statements of operations data
Total revenue ............................................................................................................................ ¥Net income (loss) attributable to Mitsubishi UFJ Financial Group ......................................... ¥7,780 ¥
(712) ¥

8,279
859

The unaudited pro forma statements of operations include the pro forma adjustments to reflect the impact of amortizing certain
acquisition accounting adjustments relating to intangible assets subject to amortization of ¥1,390 million and ¥1,426 million for the
fiscal years ended March 31, 2023 and 2024, respectively.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
3.

INVESTMENT SECURITIESThe following tables present the amortized cost, gross unrealized gains and losses, and fair value of Available-for-sale debt
securities and Held-to-maturity debt securities at March 31, 2023 and 2024:
Grossunrealized
gains

Amortized
cost

At March 31, 2023:

Gross
unrealized
lossesFair value(in millions)

Available-for-sale debt securities:
Japanese national government and Japanese
government agency bonds
Japanese prefectural and municipal bonds
Foreign government and official institution bonds
Corporate bonds
Residential mortgage-backed securities
Asset-backed securities
Other debt securities
Total
Held-to-maturity debt securities:
Japanese national government and Japanese
government agency bonds
Japanese prefectural and municipal bonds
Corporate bonds
Residential mortgage-backed securities
Asset-backed securities
Total¥ 26,153,862
2,773,750
3,029,042
1,051,347
1,110,126
1,418,563
417,755¥ 35,954,445¥ 13,860,457
1,144,825
46,7303,913,346
2,554,723¥ 21,520,081

F-32

¥

¥

¥

¥

16,510
2,063
2,072
9,791
569

¥ 123,769
15,872
108,372
2,977
441¥ 26,046,603
2,759,941
2,922,742
1,058,161
1,110,254

16,116
1,873
48,9944,364
6,842¥ 262,637

1,430,315
412,786¥ 35,740,802

32,9272,473
213
13,60619
49,238¥¥ 13,873,595
1,139,490
46,9403,821,198
2,504,933¥ 21,386,156

19,7897,808
3105,754
49,809¥ 183,163

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Grossunrealized
gains

Amortized
cost

At March 31, 2024:

Grossunrealized
lossesFair value(in millions)

Available-for-sale debt securities:
Japanese national government and Japanese government
agency bonds¥ 23,287,730
Japanese prefectural and municipal bonds
1,055,564
Foreign government and official institution bonds
3,407,036
Corporate bonds
1,015,312
Residential mortgage-backed securities
1,229,615
Asset-backed securities
1,239,772
Other debt securities
408,467
Total¥ 31,643,496
Held-to-maturity debt securities:
Japanese national government and Japanese government
agency bonds¥ 15,191,741
Japanese prefectural and municipal bonds
1,999,182
Corporate bonds
119,490
Residential mortgage-backed securities
4,952,083
Asset-backed securities
2,581,466
Total¥ 24,843,962

¥

¥

¥

¥

5,768
227
4,653
10,550
255
9,251
3,419
34,123

¥

4,745
2,048
93
3,153
3,681
13,720¥¥¥126,098
9,800
132,406
4,271
345
1,877
7,450
282,247¥ 23,167,400
1,045,991
3,279,283
1,021,591
1,229,525
1,247,146
404,436¥ 31,395,372

97,603
16,328
179
179,537
6,521
300,168¥ 15,098,883
1,984,902
119,404
4,775,699
2,578,626¥ 24,557,514

Contractual Maturities
The amortized cost and fair values of Held-to-maturity debt securities and the fair values of Available-for-sale debt securities at
March 31, 2024 by contractual maturity are shown below. Expected maturities may be shorter than contractual maturities because
issuers of debt securities may have the right to call or prepay obligations with or without penalties. Debt securities not due at a single
maturity date and securities embedded with call or prepayment options, such as mortgage-backed securities, are included in the tablebelow based on their contractual maturities.

Held-to-maturity debt
securities
Amortized
cost

Fair value

Available-forsale
debt securities
Fair value(in millions)Due in one year or lessDue from one year to five years
Due from five years to ten years
Due after ten years
Total

¥

3,540,173
8,493,590
6,917,839
5,892,360¥ 24,843,962¥

3,541,664
8,461,176
6,838,185
5,716,489¥ 24,557,514¥ 21,034,934
5,841,097
1,682,434
2,836,907¥ 31,395,372

Realized Gains and Losses
For the fiscal years ended March 31, 2022, 2023 and 2024, gross realized gains on sales of Available-for-sale debt securities
were ¥85,525 million, ¥107,238 million and ¥124,557 million, respectively, and gross realized losses on sales of Available-for-saledebt securities were ¥36,698 million, ¥169,686 million and ¥274,042 million, respectively.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Impairment Losses on Investment Securities
For the fiscal years ended March 31, 2022 and 2023, impairment losses on Available-for-sale debt securities of ¥47,281 millionand ¥359,330 million were included in Investment securities gains (losses)—net in the accompanying consolidated statements ofoperations. These were mainly the impairment losses on the Available-for-sale debt securities held by MUFG Union Bank, whichwere reclassified as held for sale, and then sold on December 1, 2022.
For the fiscal year ended March 31, 2024, impairment losses on Available-for-sale debt securities, which mainly comprised ofcorporate bonds, were included in Investment securities gains (losses)—net in the accompanying consolidated statements of operations
and were not material.
For the fiscal years ended March 31, 2022, 2023 and 2024, the MUFG Group’s Held-to-maturity debt securities were guaranteedby Japanese or U.S. government entities or agencies and had a long history of no credit losses or were rated investment grade. Basedon the analysis performed, the MUFG Group has the intent and ability to hold these securities to maturity. Therefore, no credit losses
were expected on these securities and no impairment loss has been recorded.
Gross Unrealized Losses and Fair Value
The following tables show the gross unrealized losses and fair value of Available-for-sale debt securities at March 31, 2023 and2024 by length of time that individual securities in each category have been in a continuous loss position:Less than 12 months

At March 31, 2023:

Fair value

12 months or moreGrossunrealized
lossesFair value

Total

Gross
unrealized
lossesFair valueGrossunrealized
lossesNumber of
securities(in millions, except number of securities)
Available-for-sale debt securities:
Japanese national government and Japanese
government agency bonds

8,066¥ 2,105,210

115,703¥ 9,749,547

962,234

1,781

711,896

14,091

858,970
331,41118,677

1,436,798

1,800

249,088

Residential mortgage-backed securities

166,7785

522,774

Asset-backed securities

310,388

4,170

Other debt securities

48,804

1,266
35,765¥ 5,113,458

Japanese prefectural and municipal bonds
Foreign government and official institution
bonds
Corporate bonds

Total¥ 7,644,337¥ 10,322,922¥¥

Less than 12 months

At March 31, 2024:

Fair value¥

123,769438

1,674,130

15,872723

89,6952,295,768

108,372

118

1,177

580,499

2,977

256

436

689,552441

15

39,806194

350,194

4,364

32

47,886

5,576

96,6906,842

28226,872¥ 15,436,380

262,637

1,610

¥

¥

¥

12 months or moreGrossunrealized
lossesFair value

Total

Gross
unrealized
lossesFair valueGrossunrealized
lossesNumber of
securities(in millions, except number of securities)
Available-for-sale debt securities:
Japanese national government and Japanese
government agency bonds

9,427¥ 1,756,792

116,671¥ 20,397,156

126,098

440

Japanese prefectural and municipal bonds

416,047

1,502

520,133

8,298

936,180

9,800

574

Foreign government and official institution
bonds

402,0219,723

1,895,194

122,683

2,297,215

132,406

97

Corporate bonds

178,960

535

439,771

3,736

618,731

4,271

324

Residential mortgage-backed securities

185,19714

343,621331

528,818

345

14

Asset-backed securities

23,8109160,109

1,868

183,919

1,877

17

Other debt securities
Total¥ 18,640,364¥

202,787¥ 20,049,186¥

54

64,90821,264¥ 5,180,528

F-34

¥

¥

7,396

267,695

260,983¥ 25,229,714

¥

¥

7,450

56

282,247

1,522

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Evaluating Available-for-sale debt securities for Impairment losses
The following describes the nature of the MUFG Group’s Available-for-sale debt securities and the conclusions reached indetermining whether impairment losses exist.
Japanese national government and Japanese government agency bonds, Japanese prefectural and municipal bonds, Foreign
government and official institution bonds
As of March 31, 2024, unrealized losses associated with these securities were deemed to be attributable to changes in market
interest rates rather than a deterioration in the creditworthiness of the underlying obligor. Based on a consideration of factors,
including cash flow analysis, the MUFG Group expects to recover the entire amortized cost basis of these securities. Accordingly, no
credit loss was identified as of March 31, 2024 and no impairment loss has been recorded.
Corporate bonds
As of March 31, 2024, unrealized losses associated with corporate bonds were primarily related to private placement bonds
issued by Japanese non-public companies. The credit loss component recognized in earnings is identified as the amount of principal
cash flows not expected to be received over the remaining terms of the bonds as estimated using the MUFG Group’s cash flow
projections. The key assumptions include probability of default based on credit ratings of the bond issuers and loss given default.
Residential mortgage-backed securities
As of March 31, 2024, unrealized losses on these securities were primarily driven by securities guaranteed by a U.S. government
agency or a government-sponsored agency which are collateralized by residential mortgage loans. Unrealized losses mainly resulted
from changes in interest rates and not from changes in credit quality. The MUFG Group determined through analysis that no credit
loss was identified on such securities as of March 31, 2024 because the strength of the issuers’ guarantees through direct obligations or
support from the U.S. government is expected to be sufficient to recover the entire amortized cost basis of these securities.
Asset-backed securities
As of March 31, 2024, unrealized losses on these securities were primarily driven by certain CLOs, highly illiquid securities forwhich fair values are difficult to determine. Unrealized losses arise from widening credit spreads, deterioration of the credit quality of
the underlying collateral, uncertainty regarding the valuation of such securities and the market’s view of the performance of the fundmanagers. When the fair value of a security is lower than its amortized cost or when any security is subject to a deterioration in credit
rating, the MUFG Group undertakes a cash flow analysis of the underlying collateral to estimate the credit loss and confirms the intent
and ability to hold these securities until recovery. Based on the analysis performed, no credit loss was identified as of March 31, 2024
and no impairment loss has been recorded.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Equity Securities
The following table presents net realized gains (losses) on sales of equity securities, and net unrealized gains (losses) on equity
securities still held at March 31, 2022, 2023 and 2024:
Fiscal years ended
March 31,
2022

2023

2024

(in millions)

Net gains (losses) recognized during the period(1)Less:
Net gains (losses) recognized during the period on equity securities soldduring the period
Net unrealized gains (losses) recognized during the reporting period still held at
the reporting date¥¥

(125,271) ¥104,023(38,042)

18,313(87,229) ¥85,710¥1,527,173

114,436¥

1,412,737

Note:(1) Included in Investment securities gains (losses)—net.
Measurement Alternative of Equity Securities
The following table presents the carrying value of nonmarketable equity securities that are measured at cost minus impairment,
if any, plus or minus changes resulting from observable price changes (“measurement alternative”), held at March 31, 2023 and 2024:
2023

2024
(in millions)

Measurement alternative balance¥

381,928¥

483,213

The related adjustments for these securities for the fiscal years ended March 31, 2022, 2023 and 2024 were as follows:
Fiscal years ended
March 31,
2022

2023

2024

(in millions)

Measurement alternative impairment losses(1)(4)
Measurement alternative downward changes for observable prices(1)(2)(3)(5)
Measurement alternative upward changes for observable prices(1)(2)(3)(6)¥¥¥(4,299) ¥— ¥3,067 ¥

(8,230) ¥(440) ¥
5,090 ¥

(11,943)(1,567)882

Notes:(1) Included in Investment securities gains (losses)—net.
(2) Under the measurement alternative, nonmarketable equity securities are carried at cost plus or minus changes resulting fromobservable prices in orderly transactions for the identical or a similar investment of the same issuer.
(3) The MUFG Group applied measurement alternative downward or upward changes to certain nonmarketable equity securities,
resulting from observable prices in orderly transactions, such as partial repurchase and transactions by other entities.
(4) The cumulative impairment losses at March 31, 2023 and 2024 were ¥20,151 million and ¥29,569 million, respectively.
(5) The cumulative downward changes for observable prices at March 31, 2023 and 2024 were ¥1,393 million and ¥2,961 million,
respectively.
(6) The cumulative upward changes for observable prices at March 31, 2023 and 2024 were ¥59,069 million and ¥58,104 million,
respectively.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
4.

LOANS AND ALLOWANCE FOR CREDIT LOSSESThe MUFG Group classifies its loan portfolio into the following portfolio segments—Commercial, Residential, Card, MUAH,
Krungsri, and Other based on the grouping used by the MUFG Group to determine the allowance for credit losses. The MUFG Groupfurther classifies the Commercial segment into classes based on initial measurement attributes, risk characteristics, and its method ofmonitoring and assessing credit risk. See Note 1 for further information.
However, beginning in the fiscal year ended March 2023, the MUAH segment is included in the Other segment in the respective
tables, because its importance as a segment declined as a result of the sale of MUFG Union Bank and an internal reorganization within
the MUFG Group. The reorganization involved the transfer of assets, including loans of ¥2,614,535 million from the MUAH segmentto the Commercial segment on November 14, 2022. See Note 2 for further information.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Total Outstanding Loans and Past Due Analysis
The table below presents total outstanding loans and past due analysis by class at March 31, 2023 and 2024.
Past DueAt March 31, 2023:

GreaterThan
3 months

1-3 months

Total
Past Due

Loans
Held for Sale

Current

Total
Loans

Past Due 90 Days
and
Accruing(in millions)

Commercial
Domestic
Foreign
Residential
Card
Krungsri
Other

¥

6,599
8,818
32,514
14,992
188,802
14,241¥

12,48533,203
11,496
26,587
136,627
20,235¥19,08442,02144,01041,579325,429
34,476¥ 55,519,315
41,268,228
12,830,845
431,2637,457,206
1,375,934¥

87,659 ¥ 55,626,058
879,423
42,189,672—
12,874,855—
472,842—
7,782,635—
1,410,410¥

2,652
12,158
3,342
—
—
—

Total

¥

265,966¥

240,633¥

506,599¥ 118,882,791¥

967,082 ¥ 120,356,472¥

18,152

Unearned income,unamortized premiums—net and deferred loan
fees—net(401,012)

Total¥ 119,955,460
Past DueAt March 31, 2024:

GreaterThan
3 months

1-3 months

Total
Past Due

Loans
Held for Sale

Current

Total
Loans

Past Due 90 Days
and
Accruing(in millions)

Commercial
Domestic
Foreign
Residential
Card¥

Krungsri
Other
Total

¥

6,108
1,447
33,943
15,790244,414
23,125324,827

¥

¥

8,289
27,517
11,98028,388204,894
28,553309,621¥¥

14,39728,96445,92344,178449,308
51,678634,448

Unearned income,unamortized premiums—net and deferred loan
fees—net¥ 57,371,397
46,483,163
12,451,455
440,672
8,383,588
1,706,489¥ 126,836,764¥¥

112,496 ¥ 57,498,290
841,088
47,353,215—
12,497,378—
484,850—
8,832,896—
1,758,167
953,584 ¥ 128,424,796

¥

¥

3,004
13,307
3,837———
20,148(488,301)¥ 127,936,495

Total

Nonaccrual Loans
Originated loans are generally placed on nonaccrual status when substantial doubt exists as to the full and timely collection ofeither principal or interest, when principal or interest is contractually past due one month or more with respect to loans within allclasses of the Commercial segment, three months or more with respect to loans within the Card and Krungsri segments, and six
months or more with respect to loans within the Residential segment. See Note 1 for further information.

F-38

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The information on nonaccrual loans by class at March 31, 2023 and 2024, and recognized interest income on nonaccrual loans
by class for the fiscal years ended March 31, 2023 and 2024 are shown below:
Recorded Loan Balance
Nonaccrual
Loans
Not Requiring
an Allowance
Nonaccrualfor
Loans(1)Credit Losses(2)March 31, 2023:

RecognizedInterest
Income(in millions)

Commercial
Domestic¥

401,836¥

99,657¥

5,409

Foreign

246,675

65,242

5,918

Residential

47,910

3,962

1,052

Card

67,159—17

Krungsri

211,705

3,286

6,482

Other

29,848

5

3,885

Total

¥ 1,005,133¥

172,152¥

22,763

Recorded Loan Balance

Nonaccrual
Loans(1)March 31, 2024:

Nonaccrual
Loans
Not Requiring
an Allowancefor
Credit Losses(2)RecognizedInterest
Income(in millions)

Commercial
Domestic¥

295,055¥

89,994¥3,920

Foreign

225,572

59,564

8,747

Residential

41,101

4,067

848

Card

72,554—18

Krungsri

278,709

2,909

10,208

Other

33,782

16

2,826

Total

¥

946,773¥

156,550¥

26,567

Notes:(1) Nonaccrual loans in the above table do not include loans held for sale of ¥9,205 million and ¥378,401 million at March 31, 2023
and 2024, respectively.
(2) These loans do not require an allowance for credit losses because the recorded loan balance equals, or does not exceed, the present
value of expected future cash flows discounted at the loans’ effective interest rate, or the fair value of the collateral if the loan is acollateral-dependent loan.

F-39

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Troubled Debt Restructurings
The following table summarizes the MUFG Group’s TDRs by class for the fiscal years ended March 31, 2022 and 2023:

Fiscal year ended March 31, 2022

Troubled Debt
Restructurings
That Subsequently
Defaulted

Troubled Debt Restructurings
PreModification
Outstanding
Recorded
Investment

PostModification
Outstanding
Recorded
Investment

Recorded
Investment(in millions)

Commercial(1)(3)
Domestic¥

168,348¥

167,342¥

12,020Foreign

16,144

16,144

Residential(1)(3)

22,484

22,484203

Card(2)(3)

20,937

19,8242,746

MUAH(2)(3)

11,384

11,384—

Krungsri(2)(3)

14,86914,869

5,657

Other(2)11,403

11,403

4,715

Total

¥

265,569¥

263,450

13,180¥38,521

Notes:(1) TDRs for the Commercial and Residential segments include accruing loans, and do not include nonaccrual loans.
(2) TDRs for the Card, MUAH, Krungsri and Other segments include accrual and nonaccrual loans.
(3) For the fiscal year ended March 31, 2022, extension of the stated maturity date of loans was the primary concession type in theCommercial, Residential and Krungsri segments, reduction in the stated rate was the primary concession type in the Card segment
and forbearance was the primary concession type in the MUAH segment.

Fiscal year ended March 31, 2023

Troubled Debt Restructurings
PreModification
Outstanding
Recorded
Investment

Troubled Debt
Restructurings
That Subsequently
Defaulted

PostModification
Outstanding
Recorded
Investment

Recorded
Investment(in millions)

Commercial(1)(3)

Domestic¥

68,477¥

68,477¥

8,123

Foreign

35,31935,31911,945Residential(1)(3)

15,291

15,291116

Card(2)(3)

22,355

21,4072,783

Krungsri(2)(3)

94,79094,790

5,289

Other(2)21,141

Total¥

257,373

21,141¥

256,425

1,569¥

29,825

Notes:(1) TDRs for the Commercial and Residential segments include accruing loans, and do not include nonaccrual loans.
F-40

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)(2) TDRs for the Card, Krungsri and Other segments include accrual and nonaccrual loans.
(3) For the fiscal year ended March 31, 2023, extension of the stated maturity date of loans was the primary concession type in theCommercial, Residential and Krungsri segments and reduction in the stated rate was the primary concession type in the Card
segment.
A modification of terms of a loan under a TDR mainly involves: (i) a reduction in the stated interest rate applicable to the loan,(ii) an extension of the stated maturity date of the loan, (iii) a partial forgiveness of the principal of the loan, or (iv) a combination of
all of these. The amount of pre-modification outstanding recorded investment and post-modification outstanding recorded investment
may differ due to write-offs made as part of the concession. The impact of write-offs associated with TDRs on the MUFG Group’s
results of operations for the fiscal years ended March 31, 2022 and 2023 was not material.
TDRs for the Commercial and Residential segments in the above tables include accruing loans, and do not include nonaccrualloans. Once a loan is classified as a nonaccrual loan, a modification would have little likelihood of resulting in the recovery of the loan
in view of the severity of the financial difficulty of the borrower. Therefore, even if a nonaccrual loan is modified, the loan continues
to be classified as a nonaccrual loan. The vast majority of modifications to nonaccrual loans are temporary extensions of the maturity
dates, typically for periods up to 90 days, and continually made as the borrower is unable to repay or refinance the loan at the extended
maturity. Accordingly, the impact of such TDRs on the outstanding recorded investment is immaterial, and the vast majority of
nonaccrual TDRs have subsequently defaulted.
TDRs that subsequently defaulted in the Commercial and Residential segments in the above tables include those accruing loansthat became past due one month or more within the Commercial segment and six months or more within the Residential segment, andthose accruing loans reclassified to nonaccrual loans due to financial difficulties even without delinquencies. This is because
classification as a nonaccrual loan is regarded as default under the MUFG Group’s credit policy. Also, the MUFG Group defines
default as payment default for the purpose of the disclosure.
In regards to the Card, MUAH, Krungsri and Other segments, the TDRs in the above tables represent nonaccrual and accruingloans, and the defaulted loans in the above table represent nonaccrual and accruing loans that became past due one month or more
within the Card segment, 60 days or more within the MUAH segment, and six months or more within the Krungsri segment.
Historical payment defaults are one of the factors considered when projecting future cash flows in determining the allowance for
credit losses for each segment.
The MUFG Group provided commitments to extend credit to customers with TDRs. The amounts of such commitments were
¥101,339 million at March 31, 2023. See Note 24 for further discussion of commitments to extend credit.
In the Krungsri segment, TDR accounting was suspended for loan modifications, where COVID-19 related short-term
modifications (i.e., six months or less) were granted to loans that were current as of the loan modification date, based on interagency
statements issued by the U.S. federal bank regulatory agencies. These loan modifications included payment deferrals and reductions instated rate, and the related borrowers’ past due and nonaccrual status will not be impacted during the deferral period. Interest income
will continue to be recognized over the contractual life of the loan.

Loan Modifications
The following table summarizes the MUFG Group’s loan modifications that were made to borrowers experiencing financial
difficulty by class for the fiscal year ended March 31, 2024:

F-41

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Loan Modifications Made to
Borrowers Experiencing Financial
Difficulty

Loans Modified
within 12 monthsof Subsequent
Default

Amortized Cost
Basis at the
Period End

Amortized Cost
Basis at the PeriodEnd

Fiscal year ended March 31, 2024:

Percentage ofTotal Class of
Loans(in millions, except percentages)(1)

Commercial
Domestic
Interest rate reduction
Term extension
Combination of interest rate reduction and term extension
Combination of term extension and principal forgivenessAll other modifications and combinations
ForeignInterest rate reduction
Term extension
Combination of interest rate reduction and term extension
Combination of term extension and principal forgivenessAll other modifications and combinations
Residential(1)Interest rate reduction
Term extension
Combination of interest rate reduction and term extension
Combination of term extension and principal forgivenessAll other modifications and combinations(2)
Card
Interest rate reduction
Term extension
Combination of interest rate reduction and term extension
Combination of term extension and principal forgivenessAll other modifications and combinations
Krungsri(2)Interest rate reduction
Term extension
Combination of interest rate reduction and term extension
Combination of term extension and principal forgivenessAll other modifications and combinations
(2)
Other
Interest rate reduction
Term extension
Combination of interest rate reduction and term extension
Combination of term extension and principal forgivenessAll other modifications and combinations

Notes:
F-42

¥

3,110
315,702
7,038——

0.01 % ¥
0.55
0.01
—
—

—
5,201
—
—
—

¥

1,720
83,76482——

0.00 % ¥
0.18
0.00
—
—

—
227
—
—
—

¥

—
14,842
—
—
—

—% ¥
0.12
—
—
—

—
105
—
—
—

¥

—
—
23,689
226
—

—% ¥
—
4.89
0.05
—

—
—
3,038
3
—

¥

553

0.01 % ¥217

301,293
1,663
663
1,143
¥

606
6,464
345
—
—

3.41
0.02
0.01
0.01
0.03 % ¥
0.37
0.02
—
—

10,329
492
444
187
304
415
—
—
—

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)(1) The modified loans for the Commercial and Residential segments include accruing loans, and do not include nonaccrual loans.
(2) The modified loans for the Card, Krungsri and Other segments include accruing and nonaccrual loans.
Loan modifications made to borrowers experiencing financial difficulty for the Commercial and Residential segments in theabove tables include accruing loans, and do not include nonaccrual loans. Once a loan is classified as a nonaccrual loan, a modification
would have little likelihood of resulting in the recovery of the loan in view of the severity of the financial difficulty of the borrower.
Therefore, even if a nonaccrual loan is modified, the loan continues to be classified as a nonaccrual loan. The vast majority ofmodifications to nonaccrual loans are temporary extensions of the maturity dates, typically for periods up to 90 days, and continually
made as the borrower is unable to repay or refinance the loan at the extended maturity. Accordingly, the impact of such loans on the
period-ended amortized cost basis is immaterial, and the vast majority of nonaccrual modified loans have subsequently defaulted.
Loans that had a payment default during the period and had been modified to borrowers experiencing financial difficulty at thetime of the modification within the previous 12 months preceding the payment default in the Commercial and Residential segments inthe above tables include those accruing loans that became past due one month or more within the Commercial segment and six months
or more within the Residential segment, and those accruing loans reclassified to nonaccrual loans due to financial difficulties even
without delinquencies. This is because classification as a nonaccrual loan is regarded as a default under the MUFG Group’s credit
policy. Additionally, the MUFG Group defines default as payment default for the purpose of the disclosure.
In regards to the Card, Krungsri and Other segments, loan modifications made to borrowers experiencing financial difficulty inthe above tables represent nonaccrual and accruing loans, and the defaulted loans in the above table represent nonaccrual and accruingloans that became past due one month or more within the Card segment, and six months or more within the Krungsri segment.
Historical payment defaults are one of the factors considered when determining the allowance for credit losses, and are factored
into projecting future cash flows for segments other than the Card segment, for which such default information is considered whenusing collectively-assessed allowance methodology.
The following table provides the financial effect of the modifications made to borrowers experiencing financial difficulty byclass for the fiscal year ended March 31, 2024:
Fiscal year ended March 31, 2024:

Commercial
Domestic
Interest rate reduction
Term extension
ForeignInterest rate reduction
Term extension
Residential
Term extension
Card
Interest rate reduction
Term extension
Principal forgiveness
KrungsriInterest rate reduction
Term extension
Principal forgiveness
Other
Interest rate reduction
Term extension

Financial EffectReduced weighted-average contractual interest rate by 0.13%.
Added a weighted-average 1.0 years to the life of loans.
Reduced weighted-average contractual interest rate by 0.46% .
Added a weighted-average 0.8 years to the life of loans.
Added a weighted-average 1.6 years to the life of loans.
Reduced weighted-average contractual interest rate by 15.22%.
Added a weighted-average 3.0 years to the life of loans.
Reduced the principal balance of the loans by ¥809 million.
Reduced weighted-average contractual interest rate by 1.38%.
Added a weighted-average 2.3 years to the life of loans.
Reduced the principal balance of the loans by ¥1,269 million.
Reduced weighted-average contractual interest rate by 3.40%.
Added a weighted-average 3.0 years to the life of loans.

F-43

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table provides the performance of loans that have been modified in the last 12 months to borrowers experiencing
financial difficulty by class for the fiscal year ended March 31, 2024:
Payment Status(Amortized Cost Basis at the Period End)

Fiscal year ended March 31, 2024:

Current

1-3 months Past
Due

Greater Than 3months Past Due(in millions)

Commercial(1)Domestic
Foreign
Residential(1)Card(2)
Krungsri(2)Other(2)
Total

¥

¥

324,772
85,566
13,77017,888277,919
5,673
725,588

¥

¥

740
—
918
3,961
18,125
1,448
25,192

¥

¥

338
—
154
2,066
9,271
294
12,123

Notes:(1) The modified loans for the Commercial and Residential segments include accruing loans, and do not include nonaccrual loans.
(2) The modified loans for the Card, Krungsri and Other segments include accrual and nonaccrual loans.
The MUFG Group provided commitments to extend credit to borrowers experiencing financial difficulty that were granted
modifications in the form of principal forgiveness, an interest rate reduction, or a term extension for the fiscal year ended March 31,
2024. The amount of such commitments was ¥64,250 million at March 31, 2024. See Note 24 for further discussion of commitments
to extend credit and information on the balance of commitments.

F-44

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Credit Quality Indicator
Credit quality indicators of loans and fiscal year of origination by class at March 31, 2023 are shown below:

Prior

Revolving
Loans
Amortized
Cost Basis

Term Loans
Amortized Cost Basis by Origination YearAt March 31, 2023

2022

2021

2020

2019

2018

Revolving
Loans
Converted toTerm Loans
Amortized
Cost Basis

Total(1)(in millions)

Commercial:¥32,957,651¥10,100,587¥ 8,626,319¥ 5,653,421¥ 4,385,807¥ 9,366,641¥25,743,172

15,050¥96,848,648

Domestic

20,132,474

6,099,692

6,675,895

4,002,329

3,214,528

7,406,590

8,006,891—

55,538,399

19,867,845

5,957,659

6,472,135

3,823,755

3,126,146

6,722,981

7,722,379—

53,692,900

222,202124,499

172,270

114,534

74,635567,514262,686—

1,538,340

NormalClose Watch
Likely to become Bankrupt orLegally/Virtually Bankrupt
Foreign
Normal¥42,427

17,534

31,49064,04013,747116,095

21,826—

307,159

12,825,177

4,000,895

1,950,424

1,651,092

1,171,279

1,960,051

17,736,281

15,05041,310,249

12,508,547

3,931,278

1,857,934

1,577,120

1,083,934

1,824,977

17,540,822

15,05040,339,662

Close Watch

262,388

34,656

60,63750,21071,96679,450174,436—

733,743

Likely to become Bankrupt orLegally/Virtually Bankrupt

54,242

34,961

31,85323,762

15,37955,62421,023—236,844

Residential¥

AccrualNonaccrual
Card¥
Accrual811,469¥ 9,077,669—¥12,874,855

687,800

747,121607,047

918,781810,933

9,034,589

22,093—

12,828,364

200

40

190

578

536

43,080

1,867

—

12

¥

¥

1

Nonaccrual
Krungsri

688,000

747,161

147

¥

7

11

140

¥ 1,824,628¥ 1,046,959

Performing¥

607,237

240

¥

¥

10
654,933

239

¥

¥

8

230
¥

919,359

692,616

¥

9

231
¥

181

515,731

¥

37

172
¥

587

¥

¥

23,960403,687¥¥

391,237550

12,450605,053¥ 2,427,923

67,74914,374¥46,491¥

472,842405,683

53,375

67,15914,792¥ 7,782,635

1,689,034

956,470

570,865

553,616

406,258

459,322

2,292,418—

6,927,983

Under-Performing

108,770

66,55567,504111,435

85,928

98,103

104,652—

642,947

Non-Performing

26,82423,934

16,56427,56523,54547,62830,853

14,792

211,705—¥ 1,410,410

Other

¥
AccrualNonaccrual

551,560¥

190,786¥

108,148¥

48,867¥

19,875¥80,252¥410,922¥549,274

187,638

106,522

47,235

17,83275,726396,334—

1,380,561

2,286

3,148

1,626

1,632

2,043

4,526

14,588—29,849F-45

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Credit quality indicators of loans and fiscal year of origination by class at March 31, 2024, and gross charge-offs for the fiscal
year ended March 31, 2024 are shown below:

Prior

Revolving
Loans
Amortized
Cost Basis

Term Loans
Amortized Cost Basis by Origination YearAt March 31, 2024:

2023

2022

2021

2020

2019

Revolving
Loans
Converted toTerm Loans
Amortized
Cost Basis

Total(1)(in millions)

Commercial:¥36,089,439¥13,326,456¥ 7,110,866¥ 5,965,489¥ 4,197,181¥ 9,777,389¥27,367,612

63,489¥103,897,921

Domestic

20,392,832

7,709,706

4,897,276

5,099,173

3,195,961

7,915,170

8,175,676—

57,385,794

20,168,687

7,567,872

4,700,171

4,955,680

3,058,292

7,289,232

7,918,471—

55,658,405

Close Watch

212,521

132,768

182,359

120,759

91,961

524,833

242,574—

1,507,775

Likely to become Bankrupt orLegally/Virtually Bankrupt

11,624

9,066

14,746

22,73445,708101,105

14,631—

219,614

NormalGross charge-offs
Foreign
Normal¥2,478

26,192

1,379

2,669

9,904

8

—

—

42,63015,696,607

5,616,750

2,213,590

866,316

1,001,220

1,862,219

19,191,936

63,48946,512,127

15,305,350

5,445,830

2,166,976

827,405

877,978

1,680,485

18,889,310

60,87745,254,211

Close Watch

330,450

142,807

41,63823,625110,527

129,927

269,944—

1,048,918

Likely to become Bankrupt orLegally/Virtually Bankrupt

60,807

28,113

4,976

15,286

12,71551,80732,682

2,612

208,998

Gross charge-offs
Residential

9,301
¥

Accrual668,170

8,575¥

659,156

1,057¥

714,292794¥

573,679

¥

174

130

864,058¥ 8,997,473

10,131¥

20,550¥—30,162—¥ 12,497,378

668,118

658,831

714,154

573,444863,432

8,959,995

18,891—

12,456,865

Nonaccrual

52

325

138

235

626

37,478

1,659—

40,513Gross charge-offs

—

—

2

6

28

1,253

—

—

Card

¥

21

¥

181

¥

224

¥

269

¥

207

¥

638

¥

409,416¥

73,894

1,289¥

484,850

Accrual

—

10

7

7

9

34

396,746

15,483412,296

Nonaccrual

21

171

217

262

198

604

12,67058,411

72,554Gross charge-offs

18

63

100

112

97

117

9,712

10,801

21,020¥ 2,215,333¥ 1,450,106

757,303¥ 2,757,237

16,240¥ 8,832,896—

7,830,700
723,487

Krungsri
Performing¥

765,619¥424,919¥446,139¥¥2,071,276

1,275,616

664,819

351,517331,928

549,104

2,586,440

Under-Performing

108,463

110,830

72,60458,06688,437

146,982

138,105—

Non-Performing

35,594

63,66028,196

15,33625,774

61,21732,692

16,240Gross charge-offs

6,514

43,442

24,871

12,054

12,636

15,261

29,402

2,405

Other

¥
AccrualNonaccrual
Gross charge-offs

749,054743,600¥

296,723¥

94,173

291,516

92,176

5,454

5,207

4,815

15,962¥45,408¥

26,103¥87,724¥458,982¥

278,709¥

146,585—¥ 1,758,167

44,52324,642

82,574445,355—

1,724,386

1,997

885

1,461

5,150

13,627—33,781

6,212

1,810

785

3,036

6,013

—

38,633Note:(1) Total loans in the above table do not include loans held for sale, and represent balances without adjustments in relation tounearned income, unamortized premiums and deferred loan fees.
The MUFG Group classifies loans into risk categories based on relevant information about the ability of borrowers to service
their debt, including, but not limited to, historical and current financial information, historical and current payment experience, credit
documentation, public and non-public information about borrowers and current economic trends as deemed appropriate to eachsegment.
The primary credit quality indicator for loans within all classes of the Commercial segment is the internal credit rating assigned
to each borrower based on the MUFG Group’s internal borrower ratings of 1 through 15, with the rating of 1 assigned to a borrower
with the highest quality of credit. When assigning a credit rating to a borrower, the MUFG Group evaluates the borrower’s expecteddebt-service capability based on various information, including financial and operating information of the borrower as well as
information on the industry in which the borrower operates, and the borrower’s business profile, management and compliance system.
In evaluating a borrower’s debt-service capability, the MUFG Group also conducts an assessment of the level of earnings and ananalysis of the borrower’s net worth. Based on the internal borrower rating, loans within the Commercial segment are categorized as
F-46

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Normal (internal borrower ratings of 1 through 9), Close Watch (internal borrower ratings of 10 through 12), and Likely to become
Bankrupt or Legally/Virtually Bankrupt (internal borrower ratings of 13 through 15).
Loans to borrowers categorized as Normal represent those that are not deemed to have collectability issues.
Loans to borrowers categorized as Close Watch represent those that require close monitoring as the borrower has begun to
exhibit elements of potential concern with respect to its business performance and financial condition, the borrower has begun to
exhibit elements of serious concern with respect to its business performance and financial condition, including business problems
requiring long-term solutions, or the borrower’s loans are contractually past due 90 days or more for special reasons.
Loans to borrowers categorized as Likely to become Bankrupt or Legally/Virtually Bankrupt represent those that have a higher
probability of default than those categorized as Close Watch due to serious debt repayment problems with poor progress in achieving
restructuring plans, the borrower being considered virtually bankrupt with no prospects for an improvement in business operations, orthe borrower being legally bankrupt with no prospects for continued business operations because of non-payment, suspension ofbusiness, voluntary liquidation or filing for legal liquidation.
The accrual status is a primary credit quality indicator for loans within the Residential segment, the Card segment and the Other
segment. The accrual status of these loans is determined based on the number of delinquent payments. See Note 1 for further details of
categorization of Accrual and Nonaccrual.
Loans within the Krungsri segment are categorized as Performing, Under-Performing or Non-Performing based on theirdelinquency status. Loans categorized as Under-Performing generally represent those that have significant increases in credit risk
since origination, including, among other things, loans that are 30 days or more past due, and loans categorized as Non-Performing
generally represent those that are 90 days or more past due.
For the Commercial, Residential and Card segments, credit quality indicators are based on information as of March 31. For the
Krungsri and Other segments, credit quality indicators are generally based on information as of December 31.

Allowance for Credit Losses
Effective as of April 1, 2023, the MUFG Group adopted new guidance on measurement of credit losses on financial instruments
for loan modifications made to borrowers experiencing financial difficulty.
Under the new guidance, the MUFG Group adopts a discounted cash flow methodology that utilizes a discount rate that is basedon the post-modification contractual interest rate, other than modified loans in the Card segment, for which the allowance is measured
using collectively-assessed allowance methodology. See Note 1 for further information.
Changes in the allowance for credit losses by portfolio segment for the fiscal years ended March 31, 2022, 2023 and 2024 areshown below:
Fiscal year ended March 31, 2022:

Commercial

Residential

Card

MUAH

Krungsri

Other

Total

(in millions)

Allowance for credit losses:
Balance at beginning of fiscal year
Provision for (reversal of) credit losses
Charge-offs
Recoveries collected
Net charge-offs
Other(1)Balance at end of fiscal year

¥ 734,577
236,659
57,848
11,89845,9508,800¥ 934,086¥

82,893 ¥(10,899)
2,121
14
2,107
—
¥ 69,887 ¥F-47

44,217
15,473
20,153
1,231
18,922—
40,768¥ 131,755 ¥ 293,396 ¥(101,112)
90,514
19,20883,474
9,532
22,8909,676
60,5849,398(940)¥ 30,365 ¥ 322,386 ¥

61,553 ¥1,348,391
47,360277,995
55,208238,012
13,15058,71542,058179,297
6,354
23,612
73,209 ¥1,470,701

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Fiscal year ended March 31, 2023:

Commercial

Residential

Card

Krungsri

Other(2)Total¥1,470,701(in millions)

Allowance for credit losses:
Balance at beginning of fiscal year
Transfer from MUAH to Commercial
segment
Provision for (reversal of) credit losses
Charge-offs
Recoveries collected
Net charge-offs
Other(1)Balance at end of fiscal year
Fiscal year ended March 31, 2024:¥ 934,086¥

69,88733,062(113,886)
158,780
18,784
139,996
6,323¥ 719,589 ¥Commercial¥

40,768¥ 322,386¥ 103,574—(9,511)
645
16
629
—
59,747 ¥—19,236
18,255720
17,535—42,469—70,72995,48925,45770,032
34,948¥ 358,031(33,062)—
41,5808,148
55,922
329,091
24,506
69,48331,416259,608
12,38653,657¥ 93,062 ¥1,272,898

Card

Krungsri

Residential

Other

Total

93,062
33,77038,633
17,173
21,4607,477¥ 112,849¥1,272,898
237,990
280,319
63,015
217,304
72,637¥1,366,221(in millions)

Allowance for credit losses:
Balance at beginning of fiscal year
Provision for (reversal of) credit losses
Charge-offs
Recoveries collected
Net charge-offs
Other(1)(3)(4)
Balance at end of fiscal year

¥ 719,589
66,24072,792
14,48858,304
17,989¥ 745,514¥¥

59,747 ¥(1,500)
1,289
6
1,283
—
56,964 ¥42,469 ¥ 358,031
21,927
117,553
21,020146,585713
30,63520,307
115,950(7,666)
54,83736,423 ¥ 414,471¥

Notes:(1) Other is principally comprised of gains or losses from foreign exchange translation.
(2) For the fiscal year ended March 31, 2023, the beginning balance and the ending balance of the Other segment in the above table
includes the allowance for credit losses of ¥30,365 million and ¥3,428 million, respectively, which were previously included in
the MUAH segment.
(3) For the fiscal year ended March 31, 2024, Other includes the impact of the change in accounting principle relating to therecognition and measurement of TDRs, which was adopted on April 1, 2023. The total impact across all segments was negative of¥18,869 million.
(4) For the fiscal year ended March 31, 2024, the Krungsri and Other segments include the initial allowance for credit losses for theloans purchased with credit deterioration of ¥20,134 million and ¥2,097 million, respectively.

Nonperforming loans were actively disposed of by sales during recent years. The allocated allowance for credit losses for suchloans was removed from the allowance for credit losses and transferred to the valuation allowance for loans held for sale upon adecision to sell. Net charge-offs in the above table include a decrease from charge-offs in the allowance for credit losses amounting to¥0.4 billion, ¥79.9 billion and ¥15.7 billion for the fiscal years ended March 31, 2022, 2023 and 2024, respectively, due to loan
disposal activity.
The MUFG Group sold ¥2,011 billion, ¥2,879 billion and ¥2,788 billion of loans within the Commercial segment during the
fiscal years ended March 31, 2022, 2023 and 2024, respectively.
The MUFG Group sold ¥518 billion of loans within the MUAH segment during the fiscal year ended March 31, 2022. The
MUFG Group sold ¥556 billion of loans within the current Other segment, previously included in the MUAH segment, during the
fiscal year ended March 31, 2023.

Collateral Dependent Loans
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The MUFG Group uses, as a practical expedient, the fair value of the collateral when recording the net carrying amounts ofloans and determining the allowance for credit losses of such loans, for which the repayment is expected to be provided substantiallythrough the operation or sale of the collateral, when the borrower is experiencing financial difficulty based on the assessment as of thereporting date.
For the Commercial, Krungsri and Other segments, collateral relating to these loans is comprised primarily of real estate, and toa lesser extent, exchange traded equity securities and deposits etc. For the Residential segment, collateral on these loans was mainly
real estate.

Loans Purchased with Credit Deterioration
The following table sets forth the reconciliation of the difference between the purchase price and the principal balance regarding
loans acquired with credit deterioration, in connection with corporate acquisitions during the fiscal year ended March 31, 2024.
2024(in millions)Purchase price¥

15,58822,231
269
38,088

Allowance for credit losses at acquisitionNon-credit discountPrincipal balance

5.

PREMISES AND EQUIPMENT
Premises and equipment at March 31, 2023 and 2024 consisted of the following:
2023

2024
(in millions)

Land
Buildings
Equipment and furniture
Leasehold improvements
Construction in progress
Total
Less accumulated depreciation¥

Premises and equipment-net¥

393,932
800,821509,828
255,71234,6791,994,972
1,134,394
860,578¥¥

389,349
798,542556,956
267,614
29,5952,042,056
1,169,029
873,027

For the fiscal years ended March 31, 2022, 2023 and 2024, the MUFG Group recognized ¥6,574 million, ¥5,317 million and¥2,941 million, respectively, of impairment losses for long-lived assets, primarily real estate which was either formerly used for its
banking operations and is no longer used or real estate that is being used where recovery of the carrying amount is doubtful. In
addition, ¥58 million, ¥174 million and ¥5,468 million of impairment losses were recognized for real estate held for sale for the fiscal
years ended March 31, 2022, 2023 and 2024, respectively. These losses are included in Other non-interest expenses. In computing theamount of impairment losses, fair value was determined primarily based on market prices, if available, or the estimated price based on
an appraisal.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
6.

GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill
The table below presents the movement in the carrying amount of goodwill by business segment during the fiscal years ended
March 31, 2023 and 2024:

DigitalServiceBusinessGroup

GlobalCorporate &Investment
Banking
BusinessGroup

GlobalCommercial
Banking
Business
Group

Asset
Management&
Investor
Services
BusinessGroup

GlobalMarkets
Business
Group

Total

(in millions)

Balance at March 31, 2022:
Goodwill¥
Accumulated impairment losses(1)Less: Goodwill, net of accumulated impairment
losses in transferred business of MUFG Union
Bank(2)
Impairment loss
Foreign currency translation adjustments andotherBalance at March 31, 2023:
Goodwill(3)Accumulated impairment losses(3)¥Goodwill acquired during the fiscal year
Foreign currency translation adjustments andotherBalance at March 31, 2024:
Goodwill
Accumulated impairment losses
(4)

— ¥
—

144,793 ¥ 736,002 ¥(63,393)(645,731)

235,794 ¥(14,368)2,300—¥ 1,118,889(723,492)———(2,415)78,985—(89,371)900——
221,426(33,553)

—
2,300
—

(91,786)
303,611(33,553)

—

9,683

(900)

17,931—

26,714

253,725(47,921)205,804 ¥63,063

2,300
—
2,300
—

889,524(592,752)¥ 296,772
172,965

14,168—20,607

330,956(47,921)283,035 ¥

2,300
—
2,300

1,083,096(592,752)¥ 490,344——— ¥15,884

152,236481,263(63,568)(481,263)
88,668 ¥— ¥—94,018

—

¥

6,995

15,884—
15,884 ¥(556)

159,231574,725(63,568)(481,263)
95,663 ¥93,462 ¥Notes:(1) Effective April 1, 2018, the MUFG Group reorganized its business groups. Goodwill originally recognized for Retail Banking
Business Group, Corporate Banking Business Group, Trust Assets Business Group and Global Business Group other than MUAH
and Krungsri was ¥1,900,019 million, which has been fully impaired before April 1, 2017. As these impairment losses recorded inpast before the reorganization of the segment and are irrelevant to the annual impairment test under the new segment, theaccumulated impaired loss is not allocated to new business segments after the reorganization of business group.
(2) Represents goodwill, net of accumulated impairment losses in transferred business of MUFG Union Bank, which was reclassified
as held for sale, and then sold on December 1, 2022.
(3) For the balance at March 31, 2023, the Goodwill and Accumulated impairment losses of the Global Corporate & Investment
Banking Business Group and Global Commercial Banking Business Group in the above table exclude the goodwill andaccumulated impairment losses previously recorded for MUFG Union Bank, which was sold during the fiscal year ended
March 31, 2023. See Note 2 for further information.
(4) Goodwill acquired during the fiscal year ended March 31, 2024, mainly relate to the acquisitions described in Note2.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
U.S. GAAP requires to test goodwill for impairment at least annually, or more frequently if events or changes in circumstancesindicate that goodwill may be impaired, using a process that compares the carrying amount of a reporting unit with its fair value. An
impairment loss is recognized to the extent that the carrying amount of a reporting unit exceeds its fair value, but not exceeding thetotal amount of goodwill allocated to that reporting unit.
For the fiscal year ended March 31, 2023, the MUFG Group recognized ¥33,553 million of impairment of goodwill relating to
the First Sentier Investors reporting unit within the Asset Management & Investor Services Business Group segment. Due largely tomarket volatility and a decline in the equity markets, the portfolio balance of assets under management decreased, which resulted in adecrease in the reporting unit’s cash flow projections. As a result, the fair value of the reporting unit was measured on December 31,
2022 for the quantitative goodwill impairment test, and led to an impairment of goodwill as the fair value had fallen below thecarrying amount of the reporting unit. The income approach estimates the fair value of the reporting unit by discounting management’s
projections of the reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final yearof projected results, using a discount rate derived from the capital asset pricing model.
The MUFG Group consolidates certain subsidiaries, including MUAH, based on financial information for the year ended
December 31 as this date and MUFG’s fiscal year which ends on March 31 have been treated as coterminous.
Other Intangible Assets
The table below presents the gross carrying amount, accumulated amortization and net carrying amount, in total and by majorclass of other intangible assets at March 31, 2023 and 2024:

2023
Gross
carrying
amountAccumulated
amortization

2024
Net
carrying
amountGrosscarrying
amountAccumulated
amortization

Net
carrying
amount(in millions)Intangible assets subject to amortization:
Software¥ 3,440,220 ¥ 2,606,923 ¥
833,297 ¥ 3,789,481 ¥ 2,862,485 ¥
926,996
Customer relationships
552,204
319,293
232,911555,018
288,857
266,161Core deposit intangibles
119,555
69,37950,176
129,71485,01044,704
Trade names
79,861
41,09038,771
84,58445,78438,800Other
17,861
6,751
11,11023,0598,933
14,126Total¥ 4,209,701 ¥ 3,043,436
1,166,265 ¥ 4,581,856 ¥ 3,291,069
1,290,787
Intangible assets not subject toamortization:
Other
7,958
8,179
Total
¥ 1,174,223¥ 1,298,966
Intangible assets subject to amortization acquired during the fiscal year ended March 31, 2023, amounted to ¥273,108 million,
which primarily consisted of ¥272,410 million of software. The weighted average amortization periods for these assets are 5 years.
There is no significant residual value estimated for these assets. Intangible assets not subject to amortization acquired during the fiscal
year ended March 31, 2023, amounted to ¥1,479 million.
Intangible assets subject to amortization acquired during the fiscal year ended March 31, 2024, amounted to ¥385,705 million,
which primarily consisted of ¥326,826 million of software and ¥53,885 million of customer relationships. The weighted averageamortization periods for these assets are 6 years and 13 years, respectively. There is no significant residual value estimated for theseassets. Intangible assets not subject to amortization acquired during the fiscal year ended March 31, 2024, amounted to ¥3 million.
For the fiscal years ended March 31, 2022, 2023 and 2024, the MUFG Group recognized ¥33,301 million, ¥5,151 million and¥15,042 million, respectively, of impairment losses for intangible assets whose carrying amounts exceeded their fair value. In
computing the amount of impairment losses, fair value was determined primarily based on the present value of expected future cash
flows, the estimated value based on appraisals, or market prices.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The estimated aggregate amortization expense for intangible assets for the next five fiscal years is as follows:(in millions)Fiscal year ending March 31:
2025
2026
2027
2028
2029
7.

¥

306,050
257,718
209,648
169,844
120,996

LEASE TRANSACTIONS

Lease transactions as a lessee
Right-of-use assets of finance leases, which are principally related to data processing equipment and included in Premises andequipment in the accompanying consolidated balance sheets, amounted to ¥16,402 million and ¥24,667 million at March 31, 2023 and2024, respectively. Lease liabilities of these finance leases, which are included in Long-term debt in the accompanying consolidatedbalance sheets, amounted to ¥19,470 million and ¥26,371 million at March 31, 2023 and 2024, respectively.
Right-of-use assets of operating leases, which are principally related to office space and equipment are included in Other assets
in the accompanying consolidated balance sheets, amounted to ¥227,112 million and ¥234,386 million at March 31, 2023 and 2024,
respectively. Lease liabilities of these operating leases, which are included in Other liabilities in the accompanying consolidatedbalance sheets, amounted to ¥337,391 million and ¥328,559 million at March 31, 2023 and 2024, respectively.
For the fiscal years ended March 31, 2023 and 2024, the MUFG Group recognized ¥15,720 million and ¥18,112 million,
respectively, of impairment losses for Right-of-use assets of operating leases, where recovery of the carrying amount is doubtful. The
losses are included in Other non-interest expenses.
The discount rates used in determining the present value of leases are the MUFG Group’s incremental borrowing rate,
developed based upon each lease’s term and currency of payment. The lease term includes options to extend the lease when it isreasonably certain that the MUFG Group will exercise that option. The MUFG Group has elected to exclude leases with original termsof less than one year from the operating lease right-of-use assets and lease liabilities. The MUFG Group’s lease arrangements thathave not yet commenced as of March 31, 2024 are not material. Variable lease costs did not have a material impact on the MUFG
Group’s results of operations.
The following table presents profit or loss of lease transactions as a lessee for the fiscal years ended March 31, 2022, 2023 and
2024:
2022

2023

2024

(in millions)

Finance lease cost:
Amortization of right-of-use assets
Interest on lease liabilities
Operating lease cost

¥

F-52

4,816
198
81,206

¥

5,672
208
67,393

¥

6,352
324
65,436

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table presents information of lease transactions as a lessee for the fiscal years ended March 31, 2023 and 2024:
2023

2024

(in millions, except years andpercentages)

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases
Operating cash flows from operating leases
Financing cash flows from finance leases
Right-of-use assets obtained in exchange for new finance lease liabilities
Right-of-use assets obtained in exchange for new operating lease liabilities
Weighted-average remaining lease term:
Finance leases
Operating leases
Weighted-average discount rate:
Finance leases
Operating leases¥

282
101,549
8,124
11,06635,678¥322
91,424
9,115
16,17450,996

3.5 years
7.6 years

3.8 years
7.3 years

0.84%
0.90%

1.17%
1.48%

Maturities of lease liabilities as of March 31, 2024 are as follows:
FinanceleasesOperatingleases(in millions)

2025
2026
2027
2028
2029
2030 and thereafter
Total undiscounted cash flows
Difference between undiscounted and discounted cash flows
Amount on balance sheet¥¥

9,313 ¥
6,484
5,055
3,901
1,978
434
27,165(794)
26,371 ¥80,332
61,52445,59238,45829,94791,907347,760(19,201)
328,559

Lease transactions as a lessor
As part of its financing activities, the MUFG Group enters into leasing arrangements with customers. The MUFG Group’s
leasing operations are conducted through leasing subsidiaries and consist principally of various types of data processing equipment,
office equipment and transportation equipment. Sales type and direct financing lease are presented in loans. In certain case, the MUFG
Group requests lessees to deposit in advance an amount nearly equal or equal to the residual value of leased assets.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table presents profit or loss of lease transactions as a lessor for the fiscal years ended March 31, 2022, 2023 and
2024:
2022

2023

2024

(in millions)

Sales type and direct financing leases:
Finance income on net investment
Operating leases:
Lease income
Total

¥

116,430¥

127,724¥

143,086¥

4,202
120,632¥6,978
134,702¥8,545
151,631

Finance income on net investment is included in Interest income—Loans, including fees in the consolidated statements ofoperations. Lease income from operating lease transactions is included in Other non-interest income in the consolidated statements ofoperations.
The following table presents the components of sales type and direct financing leases transactions as of March 31, 2023 and
2024:
2023

2024
(in millions)Lease receivables (undiscounted)
Adjustments:
Discounted unguaranteed residual value
Initial direct cost on sales type and direct financing leases
Deferred selling profit
Net investment in sales type and direct financing leases¥

2,046,277¥

2,281,720¥

10,27832,780(350,553)
1,738,782 ¥

7,470
36,671(403,356)
1,922,505

The following table presents maturity of the lease payment receivables of sales type and direct financing lease transactions as ofMarch 31, 2024:
Lease
receivables(in millions)

2025
2026
2027
2028
2029
2030 and thereafter
Total undiscounted cash flows
Difference between undiscounted cash flows and the lease receivables recognized on balance sheet
Amount on balance sheet

F-54

¥

¥

559,547
535,710420,824
306,061
207,992
251,586
2,281,720(359,215)
1,922,505

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
8.

INCOME TAXES

Income (Loss) before Income Tax Expense (Benefit)
Income (loss) before income tax expense (benefit) by jurisdiction for the fiscal years ended March 31, 2022, 2023 and 2024 was
as follows:
2023(Restated)

2022

2024

(in millions)

Domestic income (loss)
Foreign income
Total

¥
¥

(886,921) ¥828,194(58,727) ¥(588,227) ¥1,036,449
448,222 ¥611,036
1,271,558
1,882,594

Income Tax Expense (Benefit)
The detail of current and deferred income tax expense (benefit) for the fiscal years ended March 31, 2022, 2023 and 2024 was asfollows:
2023(Restated)

2022

2024

(in millions)

Current:
Domestic¥

Foreign

243,993¥

250,780¥

106,951

112,164

200,669

301,493

Total

356,157

451,449

408,444

Domestic(308,214)(348,997)

88,339Foreign(62,454)(61,278)

4,784

Total

(370,668)(410,275)

93,123

Income tax expense (benefit)(14,511)

41,174

501,567

Investment securities(87,628)(60,071)

32,665

Debt valuation adjustments

10,296

7,858(19,707)

Deferred:Income tax expense (benefit) reported in Accumulated OCI relating to:

Derivatives qualifying for cash flow hedges(4,968)(2,142)(84)

Defined benefit plans

19,039(10,341)

170,175

Foreign currency translation adjustments

96,742

86,576

156,027

33,481

21,880339,076

Total
Total

¥

18,970¥63,054¥

840,643

Prior to the fiscal year ended March 31, 2023, the MUFG Group filed tax returns on a consolidated basis for corporate income
taxes within Japan, and from the beginning of fiscal year ended March 31, 2023, the MUFG Group applied the Group Tax Sharing
System, where the calculation of taxable income or loss is still made based upon the combined profits or losses of the parent company
and its wholly-owned domestic subsidiaries, but the tax payments are made by each of these companies.
Reconciliation of Effective Income Tax Rate
Income taxes in Japan applicable to the MUFG Group are imposed by the national, prefectural and municipal governments, andin the aggregate resulted in a normal effective statutory rate of approximately 30.6%, 30.6%, and 30.6% for the fiscal years ended
March 31, 2022, 2023 and 2024, respectively. Foreign subsidiaries are subject to income taxes of the countries in which they operate.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
A reconciliation of the effective income tax rates reflected in the accompanying consolidated statements of operations to the
combined normal effective statutory tax rates for the fiscal years ended March 31, 2022, 2023 and 2024 is as follows:

2022

Combined normal effective statutory tax rate
Nondeductible expenses
Impairment of goodwill
Foreign tax credit and payments
Lower tax rates applicable to income of subsidiaries
Change in valuation allowance
Taxation for gain on sale of shares in subsidiary
Nontaxable dividends received
Undistributed earnings of subsidiaries
Tax and interest expense for uncertainty in income taxes
Noncontrolling interest income
Effect of changes in tax laws
Expiration of loss carryforward
Other—net
Effective income tax rate

2023
(Restated)

2024

30.6%
(12.0)—
28.7
30.8(90.1)—
85.1(25.6)(10.8)

30.6%
1.1
2.2
(6.9)
(4.1)
(1.3)
5.0
(21.7)
(0.4)
—

(0.7)
(2.4)
(7.0)
(1.9)
24.7%

0.4
0.9
0.2
3.2
9.2%

30.6%
0.4
—
0.9
(1.5)
(1.4)
—
(4.1)
0.9
—

(1)

0.6
—
0.1
0.1
26.6%

Note:
(1) In March 2023, MUAH repurchased a portion of the shares in MUAH held by MUFG and MUFG Bank. The transaction resulted
in the realization of a difference between the book value of the shares in MUAH for accounting and tax purposes, resulting in a
¥22,250 million increase in income tax expense and a 5.0 percentage points increase in the effective tax rate for the fiscal year
ended March 31, 2023.
Deferred Tax Assets and Liabilities
Deferred tax assets and liabilities are computed for each tax jurisdiction using currently enacted tax rates applicable to periods
when the temporary differences are expected to reverse. The tax effects of the items comprising the MUFG Group’s net deferred tax
assets at March 31, 2023 and 2024 were as follows:
2023

2024
(in millions)Deferred tax assets:
Allowance for credit losses¥

Operating loss carryforwards

418,732¥

99,870Loans

456,51291,893561—

Accrued liabilities and other413,587

383,888

Premises and equipment

119,395

122,682

Derivative financial instruments

303,644528,280

Obligations under operating leases
Valuation allowance
Total deferred tax assets

¥

F-56

88,08886,146(153,053)(130,948)

1,290,824¥

1,538,453

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
2023

2024
(in millions)Deferred tax liabilities:
Investment securities (including trading account assets at fair value under the fair value option)
Loans
Intangible assets
Lease transactions
Defined benefit plans
Investments in subsidiaries and affiliates
Right-of-use assets of operating leases
Other
Total deferred tax liabilities
Net deferred tax liabilities¥

379,581—
65,973
12,51450,730639,592
64,741103,915
1,317,046(26,222) ¥728,752
1,936
73,942
11,619221,796
838,033
60,19972,981
2,009,258(470,805)

The valuation allowance was provided primarily against deferred tax assets recorded at MUFG and its subsidiaries with
operating loss carryforwards. The valuation allowance is determined to reduce the measurement of deferred tax assets not expected tobe realized. Management considers all available evidence, both positive and negative, to determine whether the valuation allowance isnecessary based on the weight of that evidence. Management determines the amount of the valuation allowance based on future
reversals of existing taxable temporary differences and future taxable income exclusive of reversing temporary differences. Futuretaxable income is developed from forecasted operating results, based on recent historical trends and approved business plans, theeligible carryforward periods and other relevant factors.
For certain subsidiaries where strong negative evidence exists, such as the existence of significant amounts of operating loss
carryforwards, cumulative losses and the expiration of unused operating loss carryforwards in recent years, a valuation allowance wasrecognized against the deferred tax assets as of March 31, 2023 and 2024 to the extent that it is more likely than not that they will not
be realized.
Income taxes are not provided on undistributed earnings of certain foreign subsidiaries that are considered to be indefinitely
reinvested in the operations of such subsidiaries. At March 31, 2023 and 2024, the undistributed earnings of such foreign subsidiaries
amounted to approximately ¥66,897 million and ¥110,552 million, respectively. Determination of the amount of unrecognizeddeferred tax liabilities with respect to these undistributed earnings is not practicable because of the complexity associated with its
hypothetical calculation including foreign withholding taxes and foreign tax credits. MUFG has neither the plan nor the intention todispose of investments in such foreign subsidiaries and, accordingly, does not expect to record capital gains or losses, or otherwise
monetize the undistributed earnings of such foreign subsidiaries.
Furthermore, under the Japanese tax law, 95% of a dividend received from a foreign company in which a domestic company has
held generally at least 25% of the outstanding shares for a continuous period of six months or more ending on the date on which thedividend is declared can be excluded from the domestic company’s taxable income. Therefore, if undistributed earnings of certain
foreign subsidiaries are repatriated through dividends, only 5% of the amount of dividends will be included in taxable income.
Operating Loss and Tax Credit Carryforwards
At March 31, 2024, the MUFG Group had operating loss carryforwards for corporate tax of ¥194,041 million and tax credit
carryforwards of ¥21,530 million for tax purposes. Such carryforwards, if not utilized, are scheduled to expire as follows:

F-57

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Operating loss
carryforwards

Tax credit
carryforwards(in millions)Fiscal year ending March 31:
2025
2026
2027
2028
2029
2030
2031 and thereafter
No definite expiration date
Total

¥

84,613
53,952551
688
14,585
2,666
7,006
29,980
194,041

¥

¥

622
169
170
161
352
160
18,1201,776
21,530¥

Uncertainty in Income Tax
The following is a roll-forward of the MUFG Group’s unrecognized tax benefits for the fiscal years ended March 31, 2022,
2023 and 2024:
2022

2023

2024

(in millions)

Balance at beginning of fiscal year
Gross amount of increases for current year’s tax positions
Gross amount of increases for prior years’ tax positions
Gross amount of decreases for prior years’ tax positions
Decreases due to lapse of applicable statutes of limitations
Foreign exchange translation and other
Balance at end of fiscal year¥

13,829 ¥
28
6,320
(183)
(8)
1,808
21,794 ¥¥21,794 ¥
451
279
(166)
(116)
3,158
25,400 ¥25,40032—(16,719)—
1,808
10,521The MUFG Group classifies interest and penalties, if applicable, related to income taxes as Income tax expense. Accrued
interest and penalties (not included in the “unrecognized tax benefits” above) are a component of Other liabilities. The following is aroll-forward of the interest and penalties recognized in the accompanying consolidated financial statements for the fiscal years ended
March 31, 2022, 2023 and 2024:
2022

2023

2024

(in millions)

Balance at beginning of fiscal year
Total interest and penalties in the consolidated statements of operations
Total cash settlements, foreign exchange translation and other
Balance at end of fiscal year

¥

¥

2,417
156
275
2,848

¥

¥

2,848 ¥
(1,052)371
2,167 ¥

2,167
(1,218)311
1,260

The MUFG Group is subject to ongoing tax examinations by the tax authorities of the various jurisdictions in which it operates.
The following are the major tax jurisdictions in which the MUFG Group operates and the status of years under audit or open to
examination:
Jurisdiction

Tax years

Japan
United States—Federal
United States—California
Indonesia

2022 and forward
2019 and forward
2016 and forward
2018 and forward

F-58

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The MUFG Group is currently under continuous examinations by the tax authorities in various domestic and foreign
jurisdictions and many of these examinations are resolved every year. The unrecognized tax benefits will decrease since resolved
items will be removed from the balance regardless of whether their resolution results in payment or recognition. It is reasonably
possible that the unrecognized tax benefits will not increase or decrease during the next twelve months.
9.

PLEDGED ASSETS AND COLLATERAL

Pledged Assets
At March 31, 2024, assets mortgaged, pledged, or otherwise subject to lien were as follows:2024(in millions)

Trading account securities
Investment securities
Loans
Other
Total

¥

¥

8,517,009
23,050,940
13,549,723
29,68045,147,352

The above pledged assets were classified by type of liabilities to which they related as follows:2024(in millions)

Deposits
Payables under repurchase agreements and securities lending transactions
Other short-term borrowings and long-term debt
Other
Total

¥

¥

15,05921,893,348
23,163,698
75,24745,147,352

At March 31, 2024, certain investment securities, principally Japanese national government and Japanese government agency
bonds, loans, and other assets with a combined carrying value of ¥21,934,678 million were pledged for acting as a collection agent ofpublic funds, for settlement of exchange at the Bank of Japan and Japanese Banks’ Payment Clearing Network, for derivativetransactions and for certain other purposes.
The MUFG Group engages in on-balance sheet securitizations. These securitizations of mortgage and apartment loans, which do
not qualify for sales treatment, are accounted for as secured borrowings. The amount of loans in the table above represents the
carrying amount of these transactions with the carrying amount of the associated liabilities included in Other short-term borrowingsand Long-term debt.
Under Japanese law, Japanese banks are required to maintain certain reserves on deposit with the Bank of Japan based on theamount of deposit balances and certain other factors. There are similar reserve deposit requirements for foreign offices andsubsidiaries engaged in banking businesses in foreign countries. At March 31, 2023 and 2024, the reserve funds required to be
maintained by the MUFG Group, which are included in Cash and due from banks and Interest-earning deposits in other banks, were
¥2,918,282 million and ¥2,995,695 million, respectively.
Collateral
The MUFG Group accepts and provides financial assets as collateral for transactions, principally commercial loans, repurchaseagreements and securities lending transactions, call money, and derivatives. Financial assets eligible for such collateral include, among
others, marketable equity securities, trade and notes receivable and certificates of deposit (“CDs”).
Secured parties, including creditors and counterparties to certain transactions with the MUFG Group, may sell or repledge
financial assets provided as collateral. Certain contracts, however, may not be specific about the secured party’s right to sell or
repledge collateral under the applicable statutes and, therefore, whether or not the secured party is permitted to sell or repledge

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
collateral would differ depending on the interpretations of specific provisions of the existing statutes, contract or certain market
practices.
If the MUFG Group determines, based on available information, that a financial asset provided as collateral might not be sold or
repledged by the secured parties, such collateral is not separately reported in the accompanying consolidated balance sheets. If a
secured party is permitted to sell or repledge financial assets provided as collateral by contract or custom under the existing statutes,
the MUFG Group reports such pledged financial assets separately on the face of the accompanying consolidated balance sheets. At
March 31, 2024, the MUFG Group pledged ¥36,743 billion of assets that may not be sold or repledged by the secured parties.
Certain banking subsidiaries accept collateral for commercial loans and certain banking transactions under a standardized
agreement with customers, which provides that these banking subsidiaries may require the customers to provide collateral or
guarantees with respect to the loans and other banking transactions. Financial assets pledged as collateral are generally negotiable andtransferable instruments, and such negotiability and transferability are authorized by applicable legislation. In principle, Japaneselegislation permits these banking subsidiaries to repledge financial assets accepted as collateral unless otherwise prohibited by contract
or relevant statutes. Nevertheless, the MUFG Group did not sell or repledge nor does it plan to sell or repledge such collateral acceptedin connection with commercial loans before a debtor’s default or other credit events specified in the agreements as it is not customary
within the banking industry in Japan to dispose of collateral before a debtor’s default and other specified credit events. Derivative
agreements commonly used in the marketplace do not prohibit a secured party’s disposition of financial assets received as collateral,and in resale agreements and securities borrowing transactions, securities accepted as collateral may be sold or repledged by the
secured parties. At March 31, 2023 and 2024, the fair value of the collateral accepted by the MUFG Group that is permitted to be soldor repledged was ¥32,111 billion and ¥38,178 billion, respectively, of which ¥24,063 billion and ¥25,808 billion, respectively, wassold or repledged.
At March 31, 2023 and 2024, the cash collateral pledged for derivative transactions, which is included in Other assets, was¥2,585,837 million and ¥3,168,071 million, respectively, and the cash collateral received for derivative transactions, which is includedin Other liabilities, was ¥1,318,338 million and ¥1,397,315 million, respectively.
10.

DEPOSITSAt March 31, 2023 and 2024, the aggregate amount of time deposit accounts (including CDs) in denominations that meet or
exceed the insured limit were ¥60,245,700 million and ¥65,857,695 million, respectively. These time deposits included domestic time
deposits in denominations that meet or exceed the limit stipulated by the Deposit Insurance Act in Japan, which is ¥10 million, andforeign time deposits in denominations that meet or exceed any country-specific insurance fund limit.
The maturity information at March 31, 2024 for domestic and foreign time deposits, including CDs, is summarized as follows:
Domestic

Foreign(in millions)Due in one year or lessDue after one year through two years
Due after two years through three years
Due after three years through four years
Due after four years through five years
Due after five years
Total

F-60

¥ 27,838,991¥ 38,504,497

4,748,674
2,181,825
399,379
527,234
821,073¥ 36,517,176

448,450
230,917
21,192
6,915
31,277¥ 39,243,248

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
11.

CALL MONEY AND FUNDS PURCHASED
A summary of funds transactions for the fiscal years ended March 31, 2023 and 2024 is as follows:
2023

2024

(in millions, except percentages and days)

Outstanding at end of fiscal year:
AmountPrincipal range of maturities
Weighted average interest rate
12.

¥3,437,614¥
1 day to 30 days
0.01%

5,094,171
1 day to 30 days
0.09%

DUE TO TRUST ACCOUNT, SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Mitsubishi UFJ Trust and Banking holds assets on behalf of its customers in an agent, fiduciary or trust capacity. Such trust
account assets are not the MUFG Group’s proprietary assets and are managed and accounted for separately.
However, excess cash funds of individual trust accounts are often placed with Mitsubishi UFJ Trust and Banking which
manages the funds together with its own funds in its proprietary account. Due to trust account reflects a temporary placement of theexcess funds from individual trust accounts and, in view of the MUFG Group’s funding, due to trust account is similar to short-term
funding, including demand deposits and other overnight funds purchased. The balance changes in response to the day-to-day changes
in the excess funds placed by the trust accounts. A summary of due to trust account transactions at March 31, 2023 and 2024 is asfollows:
2023

2024

(in millions, except percentages)

Amount outstanding at end of fiscal year
Weighted average interest rate on outstanding balance at end of fiscal year

¥ 5,871,244
0.00%¥ 4,659,456
0.00%

At March 31, 2023 and 2024, the MUFG Group had unused lines of credit for financing amounting to ¥3,321,061 million and¥3,943,240 million, respectively. The amounts principally consist of pooled collateral which are used to cover shortages in the Bank ofJapan account and to meet liquidity needs. The MUFG Group may borrow from the Bank of Japan on demand up to the total amountof collateral eligible for credit extension.

F-61

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Other short-term borrowings at March 31, 2023 and 2024 were comprised of the following:
2023

2024

(in millions, except percentages)

Domestic offices:
Commercial paper
Borrowings from the Bank of Japan
Borrowings from other financial institutions
Other(1)Total domestic offices
Foreign offices:
Commercial paper
Borrowings from other financial institutions
Short-term debentures
Other
Total foreign offices
Total
Less unamortized discount
Other short-term borrowings—net
Weighted average interest rate on outstanding balance at end of fiscal year

Note:(1) Includes borrowings from the jointly operated designated money in trusts.

F-62

¥

1,123,528
1,186,251
95,785
976,832
3,382,396
4,771,323
160,292
21,338¥¥1,319,959
2,171,660
96,645
1,168,468
4,756,732
6,160,424
194,119
12,491

105,501
13,725
5,058,454
6,380,759
8,440,850
11,137,491
2,836—
8,438,014¥ 11,137,491
2.83 %
3.02 %

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Long-term debt (with original maturities of more than one year) at March 31, 2023 and 2024 was comprised of the following:
2023

2024
(in millions)

MUFG:
Obligations under finance leases

¥

1,720

¥

377

Unsubordinated debt (1):Fixed rate bonds, payable in US dollars, due 2024-2039, principally 0.95%-5.72%

7,226,689

7,672,722

Fixed rate bonds, payable in Euro, due 2024-2033, principally 0.34%-3.56%

578,508

566,150

Fixed rate bonds, payable in other currencies, due 2024-2029, principally 2.08%-4.05% (2)37,42541,488Adjustable rate bonds, payable in Japanese yen, due 2025-2034, principally 0.14%-1.47%

451,500

545,200

Adjustable rate bonds, payable in Euro, due 2025-2031, principally 0.34%-4.64%

408,016

538,692

Adjustable rate borrowings, payable in Japanese yen, due 2029-2037, principally 0.91%-1.86%

272,000

245,000

Floating rate bonds, payable in US dollars, due 2025-2026, principally 6.26%-6.99%

400,487

249,827

Floating rate bonds, payable in Euro, due 2023, principally 3.25%

51,002—

Floating rate bonds, payable in other currencies, due 2024, principally 5.61% (2)Total

35,87639,444

9,461,503

9,898,523

872,810

937,805

Subordinated debt (1):Fixed rate bonds, payable in Japanese yen, due 2024-2034, principally 0.37%-1.67%
Fixed rate bonds, payable in US dollars, no stated maturity, principally 8.20%—

117,692

Fixed rate borrowings, payable in Japanese yen, due 2025-2028, principally 0.57%-0.79%

86,00086,000Adjustable rate bonds, payable in Japanese yen, due 2029-2034, principally 0.29%-1.21%

908,541

963,219

Adjustable rate bonds, payable in Japanese yen, no stated maturity, principally 0.82%-2.50%

1,366,633

1,983,789

Adjustable rate borrowings, payable in Japanese yen, due 2029-2032, principally 0.30%-0.72%

34,00034,000Adjustable rate borrowings, payable in Japanese yen, no stated maturity, principally 0.85%-2.84%
Total
Total

94,856

175,675

3,362,840

4,298,180

12,826,063

14,197,080

MUFG Bank:
Obligations under finance leases

¥

4,652

¥

4,567

Unsubordinated debt (1):Fixed rate bonds, payable in Japanese yen, due 2024-2027, principally 0.63%-2.34%

37,30017,200

Fixed rate bonds, payable in US dollars, due 2024-2052, principally 0.00%-4.70%

1,073,796

1,060,184

6,557

7,346

20,582,218

20,186,175

7,601

14,332Adjustable rate borrowings, payable in US dollars, due 2024, principally 5.83%

86,127

167,308

Floating rate borrowings, payable in US dollars, due 2024-2035, principally 0.00%-6.71%

671,936628,297

Floating rate borrowings, payable in Euro, due 2029-2036, principally 4.08%-4.51%

100,065

93,781

22,565,600

22,174,623

Fixed rate bonds, payable in Japanese yen, due 2025-2031, principally 1.95%-2.91%

175,500

176,000

Fixed rate borrowings, payable in Japanese yen, due 2025-2035, principally 0.47%-2.24%

59,50041,500Adjustable rate borrowings, payable in Japanese yen, due 2028, principally 1.09%

10,00010,000Floating rate borrowings, payable in Japanese yen, due 2027, principally 0.27%

15,00015,000260,000

242,500

Fixed rate bonds, payable in Euro, due 2033, principally 1.81%
Fixed rate borrowings, payable in Japanese yen, due 2024-2028, principally 0.00%-0.26%
Fixed rate borrowings, payable in US dollars, due 2030-2035, principally 2.93%-3.81%

Total
Subordinated debt (1):

Total
Obligations under loan securitization transaction accounted for as secured borrowings due 2024-2080, principally
0.13%-10.07%
Total

F-63

445,821360,081

23,276,073

22,781,771

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
2023

2024
(in millions)

Other subsidiaries:
Obligations under finance leases¥

13,098¥21,427

Unsubordinated debt (1):Fixed rate borrowings, bonds and notes, payable in Japanese yen, due 2024-2051, principally 0.00%-14.30%

1,012,649

1,051,354

Fixed rate borrowings, bonds and notes, payable in US dollars, due 2024-2036, principally 0.00%-19.05%

95,593

61,861

Fixed rate borrowings, payable in Euro, due 2026-2030, principally 0.00%

1,148

1,004

Fixed rate borrowings, bonds and notes, payable in Thai baht, due 2024-2028, principally 0.00%-6.10%

154,698

255,369

Fixed rate borrowings, bonds and notes, payable in other currencies, due 2024-2037, principally 0.50%-10.50%(2)322,457

389,517

Floating/Adjustable rate borrowings, bonds and notes, payable in Japanese yen, due 2024-2054, principally
0.00%-34.40%

1,009,268

683,131

Floating/Adjustable rate borrowings, bonds and notes, payable in US dollars, due 2024-2032, principally
0.00%-42.00%

103,125

146,034

193

170

Adjustable rate bonds and notes, payable in Euro, due 2024, principally 0.10%
Floating rate borrowings, payable in other currencies, due 2024-2025, principally 6.46%-9.94% (2)
Total

—

59,762

2,699,131

2,648,202

34,70030,000Subordinated debt (1):Fixed rate borrowings, bonds and notes, payable in Japanese yen, due 2025-2030, principally 1.92%-2.61%
Fixed rate bonds and notes, payable in US dollars, due 2027-2030, principally 7.50%-8.00%

2,329

2,223

Fixed rate bonds and notes, payable in Thai baht, due 2029-2032, principally 3.00%-4.30%

231,138251,210

5,253

5,654

Floating rate bonds and notes, payable in US dollars, due 2028, principally 12.62%
Total
Total
Total
Debt issuance cost

¥

Total

273,420

289,087

2,985,649

2,958,716

39,087,785

39,937,567(16,030) ¥¥ 39,071,755(15,245)¥ 39,922,322

Notes:(1) Adjustable rate debts are debts where interest rates are reset in accordance with the terms of the debt agreements, and floating ratedebts are debts where interest rates are repriced in accordance with movements of markets indices.
(2) Minor currencies, such as the Australian dollar, Indonesian rupiah, South Korean won, etc., excluding Japanese yen, US dollars,Euro and Thai baht have been summarized into the “Other currencies” classification.
The MUFG Group uses derivative financial instruments to manage its interest rate and currency exposures for certain debts. The
derivative financial instruments include swaps, forwards, options and other types of derivatives. As a result of these derivative
instruments, the effective rates reflected in the table above may differ from the coupon rates. The interest rates for the adjustable andfloating rate debt shown in the above table are those in effect at March 31, 2023 and 2024.
Certain debt agreements permit the MUFG Group to redeem the related debt, in whole or in part, prior to maturity at the optionof the issuer on terms specified in the respective agreements.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following is a summary of maturities of long-term debt subsequent to March 31, 2024 :

MUFG

Other
subsidiaries

BK

Total

(in millions)Fiscal year ending March 31:
2025
2026
2027
2028
2029
2030 and thereafter
Total

¥

1,056,330
2,799,014
745,681
1,484,571
1,318,009
6,793,475¥ 14,197,080¥ 18,398,003
1,258,985
177,284
1,182,470
389,523
1,375,506¥ 22,781,771¥¥

654,647
349,705
325,584
140,785
209,470
1,278,525
2,958,716¥ 20,108,980
4,407,704
1,248,549
2,807,826
1,917,002
9,447,506¥ 39,937,567

New Issuances of Debt for Basel III
For the fiscal year ended March 31, 2024, the MUFG Group obtained unsecured perpetual subordinated Additional Tier 1 debt
financing of ¥796,000 million and $750 million (approximately ¥113,558 million) in the form of securities and borrowings frominstitutional investors in and outside Japan. These securities and borrowings are subject to the MUFG Group’s discretion to ceaseinterest payments and a write-down of the principal upon the occurrence of certain events, including when the MUFG Group’s
Common Equity Tier 1 ratio declines below 5.125%, when the MUFG Group is deemed to be at risk of becoming non-viable or when
the MUFG Group becomes subject to bankruptcy proceedings.
For the fiscal year ended March 31, 2024, the MUFG Group obtained debt financing of ¥255,000 million, $2,500 million(approximately ¥378,525 million) and €500 million (approximately ¥81,620 million) with an intent to count towards Total LossAbsorbing Capacity (“TLAC”) from global institutional investors to meet the TLAC requirement under the standards issued by the
Financial Stability Board. The MUFG Group is required to maintain External TLAC ratios of 18% on a risk-weighted assets basis and6.75% on a leverage exposure basis.
For the fiscal year ended March 31, 2024, the MUFG Group obtained subordinated term Tier 2 debt financing of ¥210,000
million in the form of securities issued in Japan. The MUFG Group can be exempted from the obligation to pay principal of andinterest on the securities when the MUFG Group are deemed to be at risk of becoming non-viable. According to the approach of the
Financial Services Agency of Japan (“FSA”), the point of non-viability will be deemed to have been reached when the Prime Ministerof Japan, following deliberation by Japan’s Financial Response Crisis Council pursuant to the Deposit Insurance Act of Japan,
confirms that Specified Item 2 Measures need to be applied to MUFG under circumstances where its liabilities exceed or are likely to
exceed its assets, or it has suspended or is likely to suspend payment of its obligations.
13.

SEVERANCE INDEMNITIES AND PENSION PLANS

Defined Benefit Pension Plans
The MUFG Group has funded non-contributory defined benefit pension plans, which cover substantially all of its employees
and mainly provide for lifetime annuity payments commencing at age 65 (“pension benefits”) based on eligible compensation at thetime of severance, rank, years of service and other factors.
MUFG Bank and certain domestic subsidiaries, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Securities Holdings,
Mitsubishi UFJ NICOS and some subsidiaries of MUFG have non-contributory Corporate Defined Benefit Pension plans which
provide benefits to all their domestic employees.
The MUFG Group also offers qualified and nonqualified defined benefit pension plans in foreign offices and subsidiaries fortheir employees. The qualified plans are non-contributory defined pension plans, which provide benefits upon retirement based on
years of service and average compensation and cover substantially all of the employees of such foreign offices and subsidiaries. With
respect to the offices and subsidiaries in the United States of America, the qualified plans are funded on a current basis in compliancewith the requirement of the Employee Retirement Income Security Act of the United States of America. The nonqualified plans are
non-contributory defined benefit pension plans, under which certain employees earn pay and interest credits on compensation amounts
above the maximum stipulated by applicable laws under the qualified plans.
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Severance Indemnities Plans
The MUFG Group has SIPs under which their employees in Japan, other than those who are directors, are entitled, under mostcircumstances, upon mandatory retirement at normal retirement age or earlier termination of employment, to lump-sum severance
indemnities based on eligible compensation at the time of severance, rank, years of service and other factors. Under SIPs, benefit
payments in the form of a lump-sum cash payment with no option to receive annuity payments, upon mandatory retirement at normal
retirement age or earlier termination of employment, are provided. When a benefit is paid in a single payment to a benefit payee under
the plans, the payment represents final relief of the obligation.
Other Postretirement Plans
The MUFG Group’s foreign offices and subsidiaries, primarily in the United States of America, provide their employees withcertain postretirement medical and life insurance benefits (“other benefits”).
Net periodic cost of pension benefits and other benefits for the fiscal years ended March 31, 2022, 2023 and 2024 include thefollowing components:
Domestic subsidiaries

Foreign offices and subsidiaries

2022

2023

2024

Pensionbenefits
and SIP

Pensionbenefits
and SIP

Pensionbenefits
and SIP

2022
Pensionbenefits

2023

Other
benefits

2024

Pensionbenefits

Other
benefits

Pensionbenefits

Other
benefits¥¥(in millions)

Service cost—benefits earned during the fiscalyear¥ 44,160¥ 41,026¥ 34,653¥ 16,853

140¥ 16,80897¥ 13,055

Interest cost on projected benefit obligation

11,995

14,356

20,547

11,233494

20,573

1,002

8,414

1,216

Expected return on plan assets(81,902)(84,084)(83,130)(33,269)(2,415)(44,590)(3,200)(10,810)(1,503)

770

1,446

(591)

16,573

(64)

7,534

155

1,362

1,191

Amortization of prior service cost

(1,280)(1,396)(1,974)(2,802)(385)(3,124)

(432)

(952)

(426)

Loss (gain) on settlements and curtailment(5,820)(4,860)(13,659)44—

84,345

—

1,803

—

—

—

(194)

—

—

—

—

3,939

6

Amortization of net actuarial loss (gain)

Other
Net periodic benefit cost (income)¥(32,077) ¥(33,512) ¥(44,348) ¥ 8,632¥¥ (2,230) ¥ 81,546(1)¥ (2,378) ¥ 16,811

¥

52

536

Note:
(1) One-time write off of unrecognized retirement benefit obligations of ¥84,345 million was recorded in connection with a pension
buyout transaction to transfer portions of the defined benefit pension plans of MUFG Bank’s overseas branches.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table summarizes the assumptions used in computing the present value of the projected benefit obligations andthe net periodic benefit cost:
Domestic subsidiaries

Foreign offices and subsidiaries

2022

2023

2024

2022

Pensionbenefits
and SIP

Pensionbenefits
and SIP

Pensionbenefits
and SIP

2023

2024

Pensionbenefits

Other
benefits

Pensionbenefits

Other
benefits

Pensionbenefits

Other
benefits

Discount rates in determining expense

0.71%

0.86%

1.36%

2.19%

1.82%

2.51%

2.21%

4.74%

4.59%

Discount rates in determining benefit obligation

0.86

1.36

1.70

2.78

2.63

4.76

4.68

5.06

5.06

Rates of increase in future compensation level for
determining expense

3.46

3.46

3.47

5.09

—

5.04

—

5.09

—

Rates of increase in future compensation level for
determining benefit obligation

3.46

3.47

3.49

5.04

—

5.09

—

5.50

—

Expected rates of return on plan assets

2.89

2.93

2.97

5.91

7.00

4.86

5.50

4.98

6.25

Cash balance crediting rate for determining
expense

2.46

2.46

2.46

1.62

—

1.94

—

3.72

—

Cash balance crediting rate for determining
benefit obligation

2.46

2.46

2.46

1.94

—

3.72

—

4.38

—

Weighted-average assumptions used:

The following table presents the assumed health care cost trend rates for foreign offices and subsidiaries, which are used tomeasure the expected cost of benefits for the next year:
2023(1)

Initial trend rate
Ultimate trend rate
Year the rate reaches the ultimate trend rate

7.00 %
4.50 %
2031

2024(1)7.50 %
4.00 %2033

Note:(1) Fiscal years of foreign subsidiaries end on December 31. Therefore, the above table presents the rates and amounts at December
31, 2022 and 2023, respectively.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table sets forth the combined funded status and amounts recognized in the accompanying consolidated balance
sheets at March 31, 2023 and 2024:
Domestic subsidiaries

Foreign offices and subsidiaries

2023

2024

2023

Noncontributory
pensionbenefits
and SIP

Noncontributory
pensionbenefits
and SIP

2024

Other
benefits

Pensionbenefits

Other
benefits

Pensionbenefits(in millions)
Change in benefit obligation:
Benefit obligation at beginning of fiscal year

¥ 1,692,105¥

1,547,273¥

619,739¥

30,791¥

194,843¥

24,195Service cost

41,02634,653

16,80897

13,05552

Interest cost

14,356

20,547

20,573

1,002

8,414

1,216

Plan participants’ contributions
Acquisitions/ Divestitures
Amendments

—

—

—

689

—

477

(584)

(216)

(77,231)(3,818)

2,173

—

—

—

(1,250)

—

(608)

—

(98,693) (1)(5,329)(1,190)(643)(33,456)(3,785)(30,940)(2,676)

Actuarial loss (gain)(113,554)(69,696) (1)

Benefits paid

(65,897)(65,641)

Lump-sum payment(20,179)(18,341)——

1,547,273

1,448,579

Translation adjustments and otherBenefit obligation at end of fiscal year

(4,476)—(4,087)—(247,171) (2)4,548

16,341

3,098

194,843

24,195

198,001

25,719Change in plan assets:
Fair value of plan assets at beginning of fiscal year

2,890,503

2,774,572

705,864

39,528215,819

22,197

Actual return on plan assets(76,526)

598,836(126,085)(6,722)(6,764)620

Employer contributions

26,73425,521

1,277(8,104)

2,045

148

Acquisitions/ Divestitures

(242)

42

(100,438)(5,649)——Plan participants’ contributions
Benefits paid
Translation adjustments and other
Fair value of plan assets at end of fiscal year

—

—

—

689

—

477

(65,897)(65,641)(33,456)(3,785)(30,940)(2,676)——2,774,572

3,333,330(231,343) (2)6,240

16,831

2,905

215,819

22,197

196,991

23,671

Amounts recognized in the consolidated balance
sheets:
Prepaid benefit cost

¥ 1,245,150

Accrued benefit cost

(17,851)

Net amount recognized¥ 1,227,299¥

1,902,768¥(18,017)¥

1,884,751

89,109¥(68,133)¥

20,976

¥

1,110

¥

82,633(3,108)(83,643)(1,998) ¥(1,010)¥1,359(3,407)¥(2,048)Notes:(1) Significant gains and losses related to changes in the benefit obligation for the fiscal years ended March 31, 2023 and 2024
primarily result from changes in the discount rate.
(2) In connection with a pension buyout transaction, portions of the defined benefit pension plans of MUFG Bank’s overseas
branches were transferred. The related obligations and assets were ¥327,203 million and ¥327,203 million, respectively.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The aggregated accumulated benefit obligations of these plans at March 31, 2023 and 2024 were as follows:
Domestic
subsidiaries
2023

Foreign offices
and subsidiaries
2024

2023

2024

(in millions)Aggregated accumulated benefit obligations¥

1,521,419¥

1,425,853¥

170,917¥170,240

The projected benefit obligations, accumulated benefit obligations and fair value of plan assets for the plans with accumulated
benefit obligations in excess of plan assets at March 31, 2023 and 2024 were as follows:
Domestic
subsidiaries
2023

Foreign offices
and subsidiaries
2024

2023

2024

(in millions)

Projected benefit obligations
Accumulated benefit obligations
Fair value of plan assets¥

24,918¥24,9187,315

24,655¥24,655
7,771

81,128¥62,30812,99593,35366,804
9,708

MUFG Bank, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Securities Holdings, Mitsubishi UFJ NICOS and othersubsidiaries paid special lump-sum termination benefits which are not a part of pension plans to certain early-terminated employees.
The amounts charged to operations for such early termination benefits for the fiscal years ended March 31, 2022, 2023 and 2024 were¥16,235 million, ¥16,888 million and ¥19,116 million, respectively.
The following table presents the amounts recognized in Accumulated OCI of the MUFG Group at March 31, 2023 and 2024:
Domestic subsidiaries
2023

2024

Pensionbenefits
and SIP

Pensionbenefits
and SIP

Foreign offices and subsidiaries
2023
Pensionbenefits

2024
Other
benefits

Pensionbenefits

Other
benefits(in millions)

Net actuarial loss (gain)
Prior service cost
Gross amount recognized in Accumulated OCI
Taxes
Net amount recognized in Accumulated OCI¥

32,257 ¥ (538,886) ¥(1,449)525

21,347 ¥(1,747)2,729 ¥
(1,375)38,090 ¥(1,652)

2,105(1,114)30,808(538,361)(52,367)
121,569¥ (21,559) ¥ (416,792) ¥19,600(6,135)
13,465 ¥1,354
36,438(736)(10,946)618 ¥ 25,492 ¥

991
(306)
685

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table presents OCI for the fiscal years ended March 31, 2023 and 2024:
Domestic subsidiaries

Foreign offices and subsidiaries

2023

2024

2023

Pensionbenefits
and SIP

Pensionbenefits
and SIP

2024

Pensionbenefits

Other
benefits

Pensionbenefits

Other
benefits(in millions)

Net actuarial loss (gain) arising during the year¥

Prior service cost arising during the year

47,026¥ (585,393) ¥—59,505

¥

4,129

¥

16,352

¥

240

—

(597)

—

(608)

—

Losses (gains) due to amortization:
Net actuarial loss (gain)(1,446)591(7,534)(155)(1,362)(1,191)

Prior service cost

1,396

1,974

3,124

432

952

426

—
(332)

(1,803)
3,307

—
162

Curtailment and settlement
Foreign currency translation adjustments
Total changes in Accumulated OCI

¥

4,860
—

13,659—(84,345)
6,096

51,836¥ (569,169) ¥(23,751)

(1)

¥

4,074

¥

16,838

¥

(363)

Note:
(1) A one-time write off of unrecognized retirement benefit obligations of ¥84,345 million was recorded in connection with a pension
buyout transaction to transfer portions of the defined benefit pension plans of MUFG Bank’s overseas branches.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Investment policies
MUFG’s investment policy for plan assets is based on an asset liability matching strategy which is intended to maintainadequate liquidity for benefit payments and to achieve a stable increase in the plan assets in the medium and long-term through properrisk control and return maximization. As a general rule, investment policies for plan assets are reviewed periodically for some plans
and in the following situations for all plans: (1) large fluctuations in pension plan liabilities caused by modifications to pension plans,or (2) changes in the market environment. The plan assets allocation strategies are the principal determinant in achieving expected
investment returns on the plan assets. Actual asset allocations may fluctuate within acceptable ranges due to market value variability.
Plan assets are managed by a combination of internal and external asset management companies and are rebalanced when market
fluctuations cause an asset category to fall outside of its strategic asset allocation range. Performance of each plan asset category iscompared against established indices and similar plan asset groups to evaluate whether the risk associated with the portfolio is
appropriate for the level of return.
The weighted-average target asset allocation of plan assets for the pension benefits and other benefits at March 31, 2024 was asfollows:
Domestic
subsidiaries
Pensionbenefits
and SIP

Asset category

Japanese equity securities
Japanese debt securities
Non-Japanese equity securities
Non-Japanese debt securities
Real estate
Short-term assets and other
Total

35.6%
23.2
13.7
21.5
1.2
4.8
100.0%

Foreign offices
and subsidiaries
Pensionbenefits

—%
—
28.6
59.8
6.6
5.0
100.0%

Other
benefits

—%
—
30.0
64.0
6.0
—
100.0%

Basis and procedure for estimating long-term return of each asset category
MUFG’s expected long-term rate of return on plan assets for domestic defined benefit pension plans and SIPs is based on abuilding-block methodology, which calculates the total long-term rate of return of the plan assets by aggregating the weighted rate of
return derived from both long-term historical performance and forward-looking return expectations from each asset category.
MUFG has determined the expected long-term rate of return for each asset category as follows:•

Japanese equity securities: the rate for Japanese debt securities plus a premium for the risk associated with Japanese equity
securities•

Japanese debt securities: economic growth rate of Japan•

Non-Japanese equity securities: the rate for non-Japanese debt securities plus a premium for the risk associated with nonJapanese equity securities•

Non-Japanese debt securities: global economic growth rate

Foreign offices and subsidiaries periodically reconsider the expected long-term rate of return for their plan assets. They evaluate
the investment return volatility of different asset categories and compare the liability structure of their pension and other benefits to
those of other companies, while considering their funding policy to maintain a funded status sufficient to meet participants’ benefit
obligations, and reduce long-term funding requirements and pension costs. Based on this information, foreign offices and subsidiaries
update the expected long-term rate of return.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Estimated future benefit payments
The following table presents benefit payments expected to be paid, which include the effect of expected future service for the
fiscal years indicated:
Domestic
subsidiaries

Foreign offices
and subsidiaries

Pensionbenefits
and SIP

Pensionbenefits

Other
benefits(in millions)Fiscal year ending March 31:
2025
2026
2027
2028

¥

2029
Thereafter (2030-2034)

80,54678,01977,061
77,552
77,086364,282¥

11,604
11,835
14,068
14,62815,086112,240

¥

2,581
2,462
2,338
2,187
2,051
8,844

Fair value measurement of the plan assets
The following is a description of the valuation methodologies used for plan assets measured at fair value as well as theclassification of the plan assets pursuant to the fair value hierarchy described in Note 31.
Government bonds and other debt securities
When quoted prices are available in an active market, the MUFG Group adopts the quoted prices to measure the fair value of
securities and such securities are classified in Level 1 of the fair value hierarchy. Level 1 securities include Japanese government
bonds, most non-Japanese government bonds and certain corporate bonds. When quoted prices are available but not traded actively,
such securities are classified in Level 2 of the fair value hierarchy. When quoted prices are not available, the MUFG Group generally
estimates fair values by using non-binding prices obtained from independent pricing vendors. Such securities are generally classified
in Level 2 of the fair value hierarchy. Level 2 securities include certain non-Japanese government bonds, official institution bonds andcorporate bonds. When there is lack of liquidity for securities or significant inputs adopted to the fair value measurements areunobservable, such securities are classified in Level 3 of the fair value hierarchy. Such Level 3 securities mainly consist of nonJapanese corporate bonds.
Marketable equity securities
When quoted prices are available in an active market, the MUFG Group adopts the quoted prices to measure the fair value ofmarketable equity securities and such securities are classified in Level 1 of the fair value hierarchy. When quoted prices are available
but not traded actively, such securities are classified in Level 2 of the fair value hierarchy.
Japanese pooled funds
Japanese pooled funds are investment fund vehicles designed for Japanese pension plan investments under Japanese pension
trust fund regulations. Based upon the nature of the funds’ investments, Japanese pooled funds are categorized into four major fundtypes: Japanese marketable equity securities type, Japanese debt securities type, Non-Japanese marketable equity securities type and
Non-Japanese debt securities type. The other types of funds invest in short-term financial instruments or loans receivable. Japanesepooled funds are generally readily redeemable at their net asset values. The fair values of Japanese pooled funds are measured at their
net asset values per share (or its equivalent) as a practical expedient.
Other investment funds
Other investment funds include mutual funds, private investments funds, common collective funds, private equity funds and realestate funds. The listed investment funds or mutual funds are valued at quoted prices and classified in Level 1 or Level 2 of the fairvalue hierarchy. When there is no available market quotation, the fair values are generally determined at net asset values per share (orF-72

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
its equivalent) as a practical expedient. Other investment funds classified in Level 3 of the fair value hierarchy consist of certain realestate funds whose fair values are not measured at their net asset values but by using significant unobservable inputs and there isinherent lack of the funds’ liquidity.
Japanese general accounts of life insurance companies
These instruments are contracts with life insurance companies that guarantee return of a certain level of fixed income, which aremainly invested in assets with low market risk such as Japanese debt securities. They are measured at conversion value and classified
in Level 2 of the fair value hierarchy.
Other investments
Other investments mainly consist of call loans with the remainder consisting of miscellaneous accounts such as deposits withbanks and short-term investments. These instruments are generally classified in Level 1 or Level 2 of the fair value hierarchy.
The following tables present the fair value of each major category of plan assets as of March 31, 2023 and 2024:
Pension benefits and SIP Investments:
At March 31, 2023
Assets category

Domestic subsidiaries
Level 1

Level 2

Level 3Foreign offices and subsidiaries
Total

Level 1

Level 2

Level 3Total

(in millions)Japanese government bonds
Non-Japanese government bonds¥ 133,664

¥

—

¥

—

¥ 133,664

¥

—

¥

—

¥

—

¥

—

—

—

—

—

2,632

2,339

—

4,971

2,793

6,251

40

9,084

—

15,749—15,749Japanese marketable equity securities

809,371——809,371

—

—

—

—

Non-Japanese marketable equity securities

78,840165—

79,005

3

—

—

3

—

—

—

—

38

59,023—59,061—

205,117—205,117

—

—

—

—

19,644

4,677—

24,321

2,937

1,869

25,36230,16840¥1,260,562 ¥5,610¥ 78,980¥ 25,362¥ 109,952

Other debt securities

Other investment funds
Japanese general account of life insurancecompanies(1)Other investments
Total¥1,044,312 ¥ 216,210

At March 31, 2024¥

Domestic subsidiaries

Assets category

Level 1

Japanese government bonds¥ 57,220

Level 2

Level 3Foreign offices and subsidiaries
Total

Level 1

Level 2

Level 3Total

(in millions)
¥

—

¥

—

¥ 57,220

¥

—

¥

—

¥

—

¥

—

Non-Japanese government bonds

5,880

—

—

5,880

10,226

2,744—

12,970

Other debt securities

4,404

112,628

2,548

119,580—

44,397—44,3971,030,420——

1,030,420

—

—

—

—

96,727453—

97,180

—

—

—

—

—

—

—

—

600

45,098—45,698—
16,823

199,432
11,393——

199,432
28,216

—
3,363

—
1,414

—
432

—
5,209

¥1,537,928 ¥ 14,189¥ 93,653

432¥ 108,274

Japanese marketable equity securities
Non-Japanese marketable equity securities
Other investment funds
Japanese general account of life insurancecompanies(1)Other investments
Total¥1,211,474 ¥ 323,906

¥

2,548

¥

Note:
(1) “Japanese general accounts of life insurance companies” is a contract with life insurance companies that guarantees a return ofapproximately 1.25% from April 1, 2022 to March 31, 2023 and 0.95% from April 1, 2023 to March 31, 2024.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table presents fair values of certain investments valued at net asset value per share (or its equivalent) as apractical expedient that were excluded from the above table as of March 31, 2023 and 2024:
Domestic
subsidiaries
Assets category2023

Foreign offices andsubsidiaries
2024

2023

2024

(in millions)Japanese pooled funds:
Japanese marketable equity securities
Japanese debt securities
Non-Japanese marketable equity securities
Non-Japanese debt securities
Other
Total pooled funds
Other investment funds
Total

¥

¥

71,753¥
120,108
186,555
332,691
76,892787,999
726,011 (1)1,514,010¥

74,802¥203,075
195,320
290,985
89,894854,076
941,326 (1)1,795,402

¥

—
¥
—
—
—
—
—
105,867 (2)

—
—
—
—
—
—
88,717 (2)105,867

88,717¥

Notes:(1) Other investment funds of the domestic subsidiaries include mutual funds and real estate funds of ¥690,781 million and ¥12,351
million, respectively, at March 31, 2023 and ¥899,855 million and ¥11,876 million, respectively, at March 31, 2024.
(2) Other investment funds of the foreign offices and subsidiaries include mutual funds, real estate funds and common collective
funds of ¥12,136 million, ¥63,759 million and ¥29,756 million, respectively, at March 31, 2023 and ¥5,983 million, ¥50,248
million and ¥32,294 million, respectively, at March 31, 2024.
Other debt securities and Japanese debt securities in the above Pension benefits and SIP tables include ¥1,614 million (0.05% ofplan assets) of debt securities issued by the MUFG Group at March 31, 2023 and ¥2,355 million (0.07% of plan assets) at March 31,
2024, respectively. Japanese marketable equity securities in the above Pension benefits and SIP tables include ¥5,284 million (0.18%
of plan assets) of common stock issued by the MUFG Group at March 31, 2023 and ¥8,022 million (0.23% of plan assets) at
March 31, 2024, respectively.

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Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
14.

OTHER ASSETS AND LIABILITIES
Major components of other assets and liabilities at March 31, 2023 and 2024 were as follows:
2023

2024
(in millions)

Other assets:
Accounts receivable:
Receivables from brokers, dealers and customers for securities transactions
Other(1)Investments in equity method investees
Prepaid benefit cost (Note 13)
Cash collateral pledged for derivative transactions (Note 9)
Cash collateral for the use of Bank of Japan’s settlement infrastructure
Accrued interest
Deferred tax assets (Note 8)
Right-of-use assets of operating leases (Note 7)
Other
Total
Other liabilities:
Accounts payable:
Payables to brokers, dealers and customers for securities transactions
Other
Obligations to return securities received as collateral (Notes 15, 16 and 31)
Accrued interest
Deferred tax liabilities (Note 8)
Allowance for off-balance sheet credit instruments
Accrued benefit cost (Note 13)
Guarantees and indemnifications
Cash collateral received for derivative transactions (Note 9)
Obligations under operating leases (Note 7)
Accrued and other liabilities
Total

¥

754,483
1,794,983
3,482,292
1,335,369
2,585,837
933,000
500,506¥

942,423
1,994,067
4,113,431
1,986,760
3,168,071
933,000
736,802

182,388
227,1125,659,034¥ 17,455,004

139,051
234,386
6,150,155¥ 20,398,146¥¥

2,062,782
1,920,945
6,891,545
385,921208,610
143,770
89,09254,3591,318,338
337,391
3,934,453¥ 17,347,206

1,592,580
1,838,202
7,222,768
560,260
609,854
177,281
105,067
67,213
1,397,315
328,559
4,084,272¥ 17,983,371

Note:(1) Accounts receivable—Other is primarily comprised of receivables relating to the card business. The provision or reversal of theallowance for credit losses relating to the receivables is included in Non-interest expense on the consolidated statements ofoperations. The receivables relating to the card business include ¥6,849 million and ¥8,164 million of past due receivables (1-3months past due receivables of ¥3,173 million and ¥3,866 million, and greater than 3 months past due receivables of ¥3,676
million and ¥4,298 million) as of March 31, 2023 and 2024, respectively and the credit quality for these receivables is primarily
evaluated based on the extent of past due. The outstanding balance of the accounts receivable is presented on a net basis after
allowance for credit losses. The change of allowance for credit losses on these receivables during the fiscal years ended March 31,
2022, 2023 and 2024 is primarily due to provision of the allowance for the receivables.
Investments in equity method investees include marketable equity securities carried at ¥2,918,480 million and ¥3,525,514
million at March 31, 2023 and 2024, respectively. Corresponding aggregated market values were ¥5,099,671 million and ¥6,266,320
million, respectively. Marketable equity securities include Morgan Stanley’s common stock carried at ¥2,443,602 million and¥2,949,649 million at March 31, 2023 and 2024, respectively. As of March 31, 2024, the MUFG Group held approximately 23.18% of
its common stock. Investments in equity method investees also include investments in Morgan Stanley MUFG Securities, Co., Ltd. at¥194,225 million and ¥183,423 million at March 31, 2023 and 2024, respectively.
F-75

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The MUFG Group periodically evaluates whether a loss in value of investments in equity method investees is other-thantemporary. As a result of evaluations, the MUFG Group recognized other-than-temporary declines in the value of an investment andrecorded impairment losses related to certain affiliated companies of ¥6,949 million, ¥58,061 million and ¥19,978 million for the
fiscal years ended March 31, 2022, 2023 and 2024, respectively. The impairment losses are included in Equity in earnings of equity
method investees—net in the accompanying consolidated statements of operations.
Summarized Financial Information of the MUFG Group’s Equity Method Investees
Summarized financial information of Morgan Stanley, the largest portion of the MUFG Group’s equity method investees, as ofMarch 31, 2023 and 2024, and for each of the three years ended March 31, 2024 is as follows:
2023

2024
(in billions)

Trading assets
Securities purchased under agreements to resell
Securities borrowed
Total assets
Deposits
Customer and other payables
Borrowings
Total liabilities
Noncontrolling interests

¥

2022

42,77016,275
19,524¥55,663
18,583
20,115160,223
46,40529,47033,407
146,609151

186,008
53,37132,45841,090170,845
143

2023

2024

(in billions)

Net revenues
Total non-interest expenses
Income from continuing operations before income taxes
Net income applicable to Morgan Stanley¥

6,655 ¥
4,498
2,139
1,650

7,235 ¥
5,376
1,797
1,402

7,907
6,068
1,798
1,375

Summarized financial information of the MUFG Group’s equity method investees, other than Morgan Stanley as of March 31,
2023 and 2024, and for each of the three years ended March 31, 2024 is as follows:
2023

2024
(in billions)

Net loans
Total assets
Deposits
Total liabilities
Noncontrolling interests

¥

2022

18,114 ¥35,208
11,96329,123772023

21,03740,595
15,13833,342872024(in billions)

Total interest income
Total interest expense
Net interest income
Provision for credit losses
Income before income tax expense
Net income

¥

F-76

1,119 ¥
335
784
207
582
488

1,430 ¥
519
911
245
616
498

1,811
781
1,030
289
695
594

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
15.

OFFSETTING OF DERIVATIVES, REPURCHASE AGREEMENTS, AND SECURITIES LENDING
TRANSACTIONS

The following tables present, as of March 31, 2023 and 2024, the gross and net amounts of the derivatives, resale and repurchaseagreements, and securities borrowing and lending transactions, including the related gross amounts subject to an enforceable masternetting arrangement or similar agreement not offset in the consolidated balance sheets. The MUFG Group primarily enters into
International Swaps and Derivatives Association master netting agreements, master repurchase agreements and master securities
lending agreements or similar agreements for derivative contracts, resale and repurchase agreements, and securities borrowing andlending transactions. In the event of default on or termination of any one contract, these agreements provide the contracting parties
with the right to net a counterparty’s rights and obligations and to liquidate and setoff collateral against any net amount owed by thecounterparty. Generally, as the MUFG Group has elected to present such amounts on a gross basis, the amounts subject to these
agreements are included in “Gross amounts not offset in the consolidated balance sheet” column in the tabular disclosure below. For
certain transactions where a legal opinion with respect to the enforceability of netting has not been sought or obtained, the related
amounts are not subject to enforceable master netting agreements and not included in “Gross amounts not offset in the consolidatedbalance sheet” column in the tabular disclosure below.

At March 31, 2023:

Grossamounts
offset in the
consolidatedbalance
sheet

Gross
amounts ofrecognizedassets/liabilities

Net amounts
presented intheconsolidatedbalancesheet

Gross amounts not offset in
the consolidated balance
sheet

Financial
instruments

Cashcollateral
received/pledgedNet amounts(in billions)

Financial assets:
Derivative assets¥

Receivables under resale agreements¥

16,152

Receivables under securities borrowing transactions
Total

12,911—¥(2,093)

4,630

12,911¥

14,059(9,902) ¥(690) ¥

2,319

(13,391)

(32)

636

(74)

4,556

(4,478)—78¥

33,693¥(2,167) ¥31,526¥(27,771) ¥(722) ¥

3,033¥

13,833¥—

13,833¥(9,668) ¥(1,489) ¥

2,676
824

Financial liabilities:
Derivative liabilities¥

Payables under repurchase agreements

42,172(2,040)40,132(39,232)(76)

Payables under securities lending transactions

1,212

(74)

1,138

(1,108)(18)

12

Obligations to return securities received as collateral

6,892

—

6,892

(1,975)—

4,917(2,114) ¥61,995(51,983) ¥(1,583) ¥

8,429

Total

At March 31, 2024:¥

64,109¥Grossamounts
offset in the
consolidatedbalance
sheet

Gross
amounts ofrecognizedassets/liabilities

Net amounts
presented intheconsolidatedbalancesheet¥

Gross amounts not offset in
the consolidated balance
sheet

Financial
instruments

Cashcollateral
received/pledgedNet amounts(in billions)

Financial assets:
Derivative assets¥

Receivables under resale agreements¥

20,577

Receivables under securities borrowing transactions
Total

15,328—¥(2,082)

5,076

15,328¥18,495(12,150) ¥(1,097) ¥2,081(17,203)

(9)

1,283

(75)

5,001

(4,652)—349¥

40,981¥(2,157) ¥38,824¥(34,005) ¥(1,106) ¥

3,713

¥

16,368¥—16,368¥(11,621) ¥(2,144) ¥2,603(34,209)

(82)

1,420

Financial liabilities:
Derivative liabilities¥

Payables under repurchase agreements

37,792(2,081)35,711

Payables under securities lending transactions

1,092

(75)

1,017

(992)

(10)

15

Obligations to return securities received as collateral

7,223

—

7,223

(1,766)—

5,457(2,156) ¥60,319(48,588) ¥(2,236) ¥

9,495

Total

¥

62,475¥

F-77¥

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

16.

REPURCHASE AGREEMENTS, AND SECURITIES LENDING TRANSACTIONS ACCOUNTED FOR AS
SECURED BORROWINGSThe following tables present gross obligations for payables under repurchase agreements, payables under securities lendingtransactions and obligations to return securities received as collateral by remaining contractual maturity and class of collateral pledged
at March 31, 2023 and 2024. Potential risks associated with these arrangements primarily relate to market and liquidity risks. To
manage risks associated with market exposure, the MUFG Group generally revalues the collateral underlying its repurchaseagreements and securities lending transactions on a daily basis and monitors the value of the underlying securities, consisting ofprimarily high-quality securities such as Japanese national government and Japanese government agency bonds, and foreign
government and official institution bonds. In the event the market value of such securities falls below the related agreements at
contract amounts plus accrued interest, the MUFG Group may be required to deposit additional collateral when appropriate. To
address liquidity risks, the MUFG Group conducts stress tests to ensure the adequate level of liquidity is maintained in the event of adecline in the fair value of any collateral pledged.
March 31, 2023
Remaining Contractual Maturity
Overnight
and open

30 daysor less

31-90
days

Over
90 daysTotal(in billions)

Payables under repurchase agreements
Payables under securities lending transactions
Obligations to return securities received as collateral
Total

¥

¥

8,593 ¥
947
5,516
15,056 ¥23,546 ¥191
642
24,379 ¥8,393 ¥
5404
8,802 ¥

1,640 ¥
69
330
2,039 ¥

42,172
1,212
6,892
50,276

March 31, 2024
Remaining Contractual Maturity
Overnight
and open

30 daysor less

31-90
days

Over
90 daysTotal(in billions)

Payables under repurchase agreements
Payables under securities lending transactions
Obligations to return securities received as collateral
Total

¥

¥

F-78

8,837 ¥
1,015
6,076
15,928 ¥20,040 ¥1
610
20,651 ¥

7,209 ¥—
135
7,344 ¥

1,706 ¥
76
402
2,184 ¥

37,792
1,092
7,223
46,107

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Secured borrowing by the class of collateral pledged at March 31, 2023 and 2024 was as follows:
March 31, 2023

Payables under
repurchaseagreements

Payables under
securities
lendingtransactions

Obligations
to returnsecurities
received
as collateralTotal(in billions)Japanese national government and Japanese government agency bonds ¥Foreign government and official institution bonds
Corporate bonds
Residential mortgage-backed securities
Other debt securities
Marketable equity securities
Other

13,280 ¥17,618
657
9,650
552
367
48

577 ¥
9
70
—
—
556
—

3,956 ¥
1,122
400
—
46
1,368
—

17,81318,749
1,127
9,650
598
2,291
48

Total

42,172 ¥

1,212 ¥

6,892 ¥

50,276¥

March 31, 2024

Payables under
repurchaseagreements

Payables under
securities
lendingtransactions

Obligations
to returnsecurities
received
as collateralTotal(in billions)Japanese national government and Japanese government agency bonds ¥Foreign government and official institution bonds
Corporate bonds
Residential mortgage-backed securities
Other debt securities
Marketable equity securities
Other
Total
¥
17.

13,001 ¥14,193
773
8,819
346
636
24
37,792 ¥

359 ¥
—
76
—
—
657
—
1,092 ¥

4,229 ¥
1,033
400
—
38
1,523
—
7,223 ¥

17,58915,226
1,249
8,819
384
2,816
24
46,107

PREFERRED STOCK

Pursuant to the Articles of Incorporation, MUFG had been authorized to issue 400,000,000 shares of Class 5 Preferred Stock,200,000,000 shares of Class 6 Preferred Stock, and 200,000,000 shares of Class 7 Preferred Stock without par value as of March 31,2024.
All classes of preferred stock are non-voting and have preference over common stock for the payment of dividends and the
distribution of assets in the event of a liquidation or dissolution of MUFG. They are all non-cumulative and non-participating withrespect to dividend payments. Shareholders of all classes of preferred stock have the right to receive a liquidation distribution at¥2,500 and do not have the right to participate in any further liquidation distributions.
As of March 31, 2022, 2023 and 2024, there was no preferred stock outstanding and the entire amount of Capital stock on the
consolidated balance sheets consisted of only common stock.

F-79

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
18.

COMMON STOCK AND CAPITAL SURPLUS

The changes in the number of issued shares of common stock during the fiscal years ended March 31, 2022, 2023 and 2024
were as follows:
2022

2023

2024

(shares)

Balance at beginning of fiscal year
Retirement of shares of common stock
Balance at end of fiscal year

13,581,995,120(300,000,000)
13,281,995,120

13,281,995,120(594,284,200)
12,687,710,920

12,687,710,920(350,000,000)
12,337,710,920

Under the Companies Act, issuances of common stock, including conversions of bonds and notes, are required to be credited tothe common stock account for at least 50% of the proceeds and to the legal capital surplus account (“legal capital surplus”) for theremaining amounts.
The Companies Act permits Japanese companies, upon approval by the Board of Directors, to issue shares in the form of a“stock split,” as defined in the Companies Act. Also, prior to April 1, 1991, Japanese companies were permitted to issue free share
distributions. MUFG Bank and Mitsubishi UFJ Trust and Banking from time to time made free share distributions. These free
distributions usually ranged from 5% to 10% of outstanding common stock and publicly-owned corporations in the United States
issuing shares in similar transactions would be required to account for them as stock dividends as of the shareholders’ record date by
reducing retained earnings and increasing the appropriate capital accounts by an amount equal to the fair value of the shares issued.
The application of such U.S. accounting practices to the cumulative free distributions made by MUFG Bank and Mitsubishi UFJ Trustand Banking at March 31, 2024, would have increased capital accounts by ¥1,910,106 million with a corresponding decrease inunappropriated retained earnings.
The Companies Act permits that common stock, legal reserve, additional paid-in capital, and other capital surplus and retained
earnings can be transferred among these accounts under certain conditions upon the approval of a shareholders’ meeting. The
Companies Act limits the increase of paid-in capital in case disposition of treasury stock and issuance of common stock are performedat the same time.
As for Capital surplus, the fee retained by MUFG’s subsidiary as underwriting compensation, net of stock issuance expense, wasincluded in the total Capital surplus balance.
Treasury Stock
The Companies Act permits Japanese companies to effect purchases of their own shares pursuant to a resolution by theshareholders at an annual general meeting until the conclusion of the following ordinary general meeting of shareholders, and to holdsuch shares as their treasury stock indefinitely regardless of purpose. However, the Companies Act requires the amount of treasury
stock purchased should be within the amount of retained earnings available for dividends. Disposition of treasury stock is subject tothe approval of the Board of Directors and is to follow the procedures similar to a public offering of shares for subscription.
MUFG resolved at the meeting of Board of Directors held on November 15, 2021 to repurchase up to the lesser of 300,000,000
shares of our common stock and ¥150 billion from November 16, 2021 to March 31, 2022. Under this share repurchase program,
MUFG repurchased 225,408,800 shares of MUFG's common stock for ¥149,999,964,962 from November 2021 to March 2022. Also,
MUFG cancelled 300,000,000 shares of treasury stock on November 30, 2021.
MUFG resolved at the meeting of Board of Directors held on May 16, 2022 to repurchase up to the lesser of 600,000,000 sharesof our common stock and ¥300 billion from May 17, 2022 to November 11, 2022. Under this share repurchase program, MUFG
repurchased 418,926,300 shares of MUFG's common stock for ¥299,999,909,768 from May 2022 to October 2022. Also, MUFG
cancelled 418,926,300 shares of treasury stock on November 30, 2022.
MUFG resolved at the meeting of Board of Directors held on November 14, 2022 to repurchase up to the lesser of 300,000,000
shares of our common stock and ¥150 billion from December 2, 2022 to January 31, 2023. Under this share repurchase program,
MUFG repurchased 175,357,900 shares of MUFG's common stock for ¥149,999,996,001 from December 2022 to January 2023. Also,
MUFG cancelled 175,357,900 shares of treasury stock on February 28, 2023.
MUFG resolved at the meeting of Board of Directors held on November 14, 2023 to repurchase up to the lesser of 400,000,000
shares of our common stock and ¥400 billion from November 15, 2023 to March 31, 2024. Under this share repurchase program,
F-80

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
MUFG repurchased 300,646,400 shares of MUFG's common stock for ¥399,999,861,554 from November 2023 to March 2024. Also,
MUFG cancelled 350,000,000 shares of treasury stock on November 30, 2023.
MUFG intends to agilely engage in repurchases of shares of MUFG's own stock as a means to return profits to shareholders andimprove capital efficiency, taking into account MUFG's business performance and capital position, opportunities for growthinvestments, and market conditions including stock prices. As a general policy, MUFG intends to cancel treasury shares to the extent
that such shares exceed approximately 5% of our total issued shares (including treasury shares).

19.

RETAINED EARNINGS, LEGAL RESERVE AND DIVIDENDS

In addition to the Companies Act, Japanese banks, including MUFG Bank and Mitsubishi UFJ Trust and Banking, are required
to comply with the Banking Law of Japan (the “Banking Law”).
Legal Reserve Set Aside as Appropriation of Retained Earnings and Legal Capital Surplus
Under the Companies Act
The Companies Act provides that an amount at least equal to 10% of the aggregate amount of cash dividends and certain
appropriations of retained earnings associated with cash outlays applicable to each period shall be appropriated and set aside as a legal
reserve until the aggregate amount of legal reserve set aside as an appropriation of retained earnings and the legal capital surplus
equals 25% of stated capital as defined in the Companies Act.
Under the Banking Law
The Banking Law provides that an amount at least equal to 20% of the aggregate amount of cash dividends and certain
appropriations of retained earnings associated with cash outlays applicable to each fiscal year shall be appropriated and set aside as alegal reserve until the aggregate amount of legal reserve set aside as appropriation of retained earnings and the legal capital surplus
equals 100% of stated capital as defined in the Companies Act.
Transfer of Legal Reserve
Under the Companies Act
Under the Companies Act, Japanese companies, including MUFG, were permitted, pursuant to a resolution by the shareholders
at a general meeting, to make legal reserve set aside as appropriation of retained earnings and legal capital surplus available fordividends until the aggregate amount of the legal reserve and legal capital surplus equals 25% of stated capital as defined in the
Companies Act.
Under the Companies Act, Japanese companies, including MUFG, MUFG Bank and Mitsubishi UFJ Trust and Banking, arepermitted, primarily pursuant to a resolution by the shareholders at a general meeting, to transfer legal capital surplus and legal reserveto stated capital and/or retained earnings without limitations of thresholds, thereby effectively removing the thresholds provided for in
the Companies Act and Banking Law at the company’s discretion.
Under the Banking Law
Under the Banking Law, Japanese banks, including MUFG Bank and Mitsubishi UFJ Trust and Banking, were permitted,
pursuant to a resolution by the shareholders at a general meeting, to set aside a legal reserve as an appropriation of retained earnings
and legal capital surplus available for dividends until the aggregate amount of the legal reserve and legal capital surplus equals 100%of stated capital as defined in the Companies Act.
Unappropriated Retained Earnings and Dividends
In addition to the provision that requires an appropriation for legal reserve as described above, the Companies Act and the
Banking Law impose certain limitations on the amount available for dividends.
Under the Companies Act, the amount available for dividends is based on the amount recorded in MUFG’s general books ofaccount maintained in accordance with Japanese GAAP. The adjustments included in the accompanying consolidated financial
F-81

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
statements but not recorded in MUFG’s general books of account, as explained in Note 1, have no effect on the determination ofretained earnings available for dividends under the Companies Act. Under the Banking Law, MUFG, MUFG Bank and Mitsubishi
UFJ Trust and Banking have to meet the minimum capital adequacy requirements and distributions of retained earnings of MUFG,
MUFG Bank and Mitsubishi UFJ Trust and Banking, which are otherwise distributable to shareholders, are restricted in order tomaintain the minimum capital requirements.
MUFG, formerly known as Mitsubishi Tokyo Financial Group, was established on April 2, 2001 with common stock of¥924,400 million, preferred stock of ¥222,100 million, legal capital surplus of ¥2,838,693 million and no retained earnings inaccordance with the Commercial Code of Japan (“the Code”), which was replaced by the Companies Act, and Japanese GAAP.
On October 1, 2005, MUFG started with common stock and preferred stock of ¥1,383,052 million, a legal capital surplus of¥3,577,570 million and retained earnings of ¥757,458 million in accordance with the Code and Japanese GAAP.
MUFG’s amount available for dividends, at March 31, 2024, was ¥4,125,790 million, which is based on the amount recorded in
MUFG’s general books of account under Japanese GAAP.
Annual dividends, including those for preferred stock, are approved by the shareholders at an annual general meeting held
subsequent to the fiscal year to which the dividends are applicable. In addition, a semi-annual interim dividend payment may be madeby resolution of the Board of Directors, subject to limitations imposed by the Companies Act and the Banking Law.
In the accompanying consolidated statements of equity, dividends and appropriations to legal reserve shown for each fiscal year
represent dividends approved and paid during the fiscal year and the related appropriation to legal reserve.

F-82

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
20.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table presents the changes in Accumulated OCI, net of tax and net of noncontrolling interests, for the fiscal years
ended March 31, 2022, 2023 and 2024:
2023(Restated)

2022

2024

(in millions)

Accumulated other comprehensive income (loss), net of taxes:
Net unrealized gains (losses) on investment securities:
Balance at beginning of fiscal year
Net change during the fiscal year
Balance at end of fiscal year
Net debt valuation adjustments:
Balance at beginning of fiscal year
Net change during the fiscal year
Balance at end of fiscal year
Net unrealized gains (losses) on derivatives qualifying for cash flow hedges:
Balance at beginning of fiscal year
Net change during the fiscal year
Balance at end of fiscal year
Defined benefit plans:
Balance at beginning of fiscal year
Net change during the fiscal year
Balance at end of fiscal year
Foreign currency translation adjustments:
Balance at beginning of fiscal year
Net change during the fiscal year
Balance at end of fiscal year
Balance at end of fiscal year

F-83

¥ (383,004) ¥ (674,230) ¥ (883,466)(291,226)(209,236)
55,707¥ (674,230) ¥ (883,466) ¥ (827,759)¥ (37,862) ¥(14,538) ¥3,268

23,324¥ (14,538) ¥17,806
3,268¥(44,650)(41,382)¥

19,029 ¥(13,060)¥
5,969 ¥

5,969 ¥
(5,375)
594 ¥

594
(388)
206

¥ (20,382) ¥49,506¥ 29,124 ¥

29,124 ¥(20,820)
8,304 ¥

8,304
381,014389,318¥ 132,738
747,970¥ 880,708¥ 227,033¥

880,708
834,784¥ 1,715,492¥ 844,192¥ 1,715,492
985,388¥ 2,700,880¥ 2,221,263

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table presents the before tax and net of tax changes in each component of Accumulated OCI for the fiscal years
ended March 31, 2022, 2023 and 2024:

Before tax

2022

2023
(Restated)

2024

Tax
(expense)or benefit

Tax(expense)or benefit

Tax(expense)or benefit

Net of tax¥(440,859) ¥ (76,032) ¥ 12,655¥ (63,377)

Net of tax

Before tax

Net of tax

Before tax(in millions)

Net unrealized gains (losses) on investment securities:
Net unrealized losses on investment securities
Reclassification adjustment for losses (gains)
included in net income (loss) before attributionof noncontrolling interests
Net change¥(347,106) ¥ 76,360¥(270,746) ¥(600,339) ¥159,480(2,015)

11,2689,253

337,313(99,409)237,904

150,646(45,320)

105,326(349,121)

87,628(261,493)(263,026)

60,071(202,955)

74,614(32,665)

41,949Net unrealized gains (losses) on investment
securities attributable to noncontrolling interests
Net unrealized gains (losses) on investment
securities attributable to Mitsubishi UFJ
Financial Group

29,733

6,281(13,758)(291,226)(209,236)

55,707

Net debt valuation adjustments:
Net debt valuation adjustments
Reclassification adjustment for losses included in
net income (loss) before attribution of
noncontrolling interests
Net change

32,735(10,025)

22,71025,220(7,722)

17,498(65,133)

19,944(45,189)

885

(271)

614

444

(136)

308

776

(237)

539

33,620(10,296)

23,32425,664(7,858)17,806(64,357)

19,707(44,650)

Net debt valuation adjustments attributable to
Mitsubishi UFJ Financial Group

23,32417,806(44,650)

Net unrealized gains (losses) on derivatives qualifying
for cash flow hedges:
Net unrealized gains (losses) on derivatives
qualifying for cash flow hedges(5,542)

1,825

Reclassification adjustment for losses (gains)
included in net income (loss) before attributionof noncontrolling interests(12,200)(17,742)

Net change(3,717)(38,278)

10,600(27,678)

757

(181)

576

3,143

(9,057)31,019(8,458)22,561(1,346)265(1,081)

4,968(12,774)(7,259)2,142(5,117)

(589)

84

(505)

F-84

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Before tax

2022

2023
(Restated)

2024

Tax
(expense)or benefit

Tax(expense)or benefit

Tax(expense)or benefit

Net of tax

Before tax

Net of tax

Before tax

Net of tax(in millions)
Net unrealized gains (losses) on derivatives
qualifying for cash flow hedges attributable tononcontrolling interests

286

258

(117)

Net unrealized losses on derivatives qualifying
for cash flow hedges attributable to
Mitsubishi UFJ Financial Group(13,060)(5,375)(388)

Defined benefit plans:
Defined benefit plans

62,946(17,350)

45,596(129,100)

37,654(91,446)

566,038(174,325)

391,713

Reclassification adjustment for losses (gains)
included in net income (loss) before
attribution of noncontrolling interests

7,042(1,689)5,353

98,428(27,313)

71,115(13,054)

4,150(8,904)69,988(19,039)

50,949(30,672)

10,341(20,331)552,984(170,175)

382,809

Net change
Defined benefit plans attributable tononcontrolling interests

1,443

489

1,795

Defined benefit plans attributable to Mitsubishi
UFJ Financial Group

49,506(20,820)

381,014

Foreign currency translation adjustments:
Foreign currency translation adjustments

853,517(98,059)

755,458

958,705(94,056)

864,649

1,268,859

Reclassification adjustment for gains included in
net income (loss) before attribution of
noncontrolling interests(4,296)

1,317(2,979)(24,424)

7,480(16,944)(16,132)

849,221(96,742)

752,479

934,281(86,576)

847,705

1,252,727

Net change(160,966) 1,107,893

4,939(11,193)(156,027) 1,096,700

Foreign currency translation adjustments
attributable to noncontrolling interests

4,509

12,921

111,312

Foreign currency translation adjustments
attributable to Mitsubishi UFJ Financial
Group

747,970

834,784

985,388¥ 516,514¥ 617,159¥1,377,071

Other comprehensive income attributable to
Mitsubishi UFJ Financial Group

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table presents the effect of the reclassification of significant items out of Accumulated OCI on the respective line
items of the accompanying consolidated statements of operations for the fiscal years ended March 31, 2022, 2023 and 2024:
2022

2023

2024
Line items in the consolidated
statements of operations

Amount reclassified out of
Accumulated OCI

Details of Accumulated OCI components(in millions)

Net unrealized losses (gains) on investment securities
Net losses (gains) on sales and redemptions of
Available-for-sale debt securities¥ (48,637) ¥Impairment losses on investment securities
Gain on sale of MUFG Union Bank (Note 2)
Other(2,682) ¥ 149,292

Investment securities gains (losses)—net

47,069359,629

2

Investment securities gains (losses)—net—(28,251)—

Gain on sale of MUFG Union Bank

(447)

8,617

1,352

(2,015)337,313150,646

11,268(99,409)(45,320) Income tax expense (benefit)

¥

9,253

¥ 237,904¥ 105,326

Net of tax

¥

885

¥

¥

776

Equity in earnings of equity method investees—net or Other non-interest income

776

Total before tax

Net debt valuation adjustments
444

885

444

(271)
¥

614

(136)
¥

308

Total before tax(237) Income tax expense (benefit)¥

539

Net of tax¥ (12,017) ¥(4,447) ¥—Interest income on Loans,including fees

(183)

(1,419)—36,885(12,200)

31,019Net unrealized losses (gains) on derivatives
qualifying for cash flow hedges Interest rate
contracts
Interest rate contracts
Foreign exchange contracts
Gain on sale of MUFG Union Bank (Note 2)(1,346) Interest expense on Long-term debt or Foreignexchange gains (losses)—net—

Gain on sale of MUFG Union Bank

(1,346) Total before tax

3,143(8,458)¥(9,057) ¥22,561¥(1,081) Net of tax

265

Income tax expense (benefit)¥

17,279

9,135

¥

1,962

Defined benefit plans
Net actuarial loss(1)¥Other non-interest expenses

Prior service cost

(4,467)(4,952)(3,352) Other non-interest expenses

Loss (gain) on settlements and curtailment, andother(1)(5,770)79,850(11,664) Other non-interest income or expenses—

14,395

7,042

98,428(1)

Gain on sale of MUFG Union Bank (Note 2)(1,689)Foreign currency translation adjustments(27,313)¥

71,115Gain on sale of MUFG Union Bank

4,150

5,353

¥

(4,303) ¥ (24,424) ¥ (16,132) Other non-interest income
7—(4,296)(24,424)

1,317

7,480

(8,904) Net of tax—

Other non-interest expenses(16,132) Total before tax
4,939

Income tax expense (benefit)(2,979) ¥ (16,944) ¥ (11,193) Net of tax¥ (10,584) ¥ 442,780¥¥

Income tax expense (benefit)¥¥
Total reclassifications for the period—(13,054) Total before tax

13,768(127,836)

3,184¥ 314,944¥ 120,890

Total before tax(36,203) Income tax expense (benefit)¥

84,687

Net of tax

Note:(1) These Accumulated OCI components are components of net periodic benefit cost. See Note 13 for more information.
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
21.

REGULATORY CAPITAL REQUIREMENTSJapan
MUFG, MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Securities Holdings are subject to various
regulatory capital requirements promulgated by the regulatory authorities of the countries in which they operate. Failure to meet
minimum capital requirements will initiate certain mandatory actions by regulators that, if undertaken, could have a direct material
effect on MUFG’s consolidated financial statements.
In Japan, MUFG, MUFG Bank, and Mitsubishi UFJ Trust and Banking are subject to regulatory capital requirements
promulgated by the FSA in accordance with the provisions of the Banking Law and related regulations. A banking institution is
subject to the minimum capital requirements both on a consolidated basis and a stand-alone basis, and is required to maintain theminimum capital irrespective of whether it operates independently or as a subsidiary under the control of another company. When abank holding company manages operations of its banking subsidiaries, it is required to maintain the minimum capital adequacy ratio
on a consolidated basis in the same manner as its subsidiary banks. The FSA provides two sets of capital adequacy guidelines. One is aset of guidelines applicable to Japanese banks and bank holding companies with their foreign offices conducting international
operations, as defined, and the other is applicable to Japanese banks and bank holding companies that are not engaged in international
operations conducted by their foreign offices.
The Basel Committee on Banking Supervision (“BCBS”) of the Bank for International Settlements (“BIS”) sets capital
adequacy standards for all internationally active banks to ensure minimum levels of capital.
The Group of Central Bank Governors and Heads of Supervision reached an agreement on the new global regulatory
framework, which has been referred to as “Basel III,” in July and September 2010. In December 2010, the Basel Committee agreed on
the details of the Basel III rules. Effective as of March 31, 2013, Basel III was adopted by the FSA with transitional measures forJapanese banking institutions with international operations conducted by their foreign offices. MUFG calculated capital ratios as ofMarch 31, 2023 and 2024 in accordance with Basel III.
Capital Ratios
Basel III is based on “three pillars”: (1) minimum capital requirements, (2) the self-regulation of financial institutions based onsupervisory review process, and (3) market discipline through the disclosure of information.
As for the denominator of the capital ratio, the Basel framework provides the following risk-based approaches and a range ofoptions for determining risk-weighted assets.
“Credit Risk”
The Basel framework provides options for determining the risk-weighted assets for credit risk to allow banks to selectapproaches that are most appropriate for their level of risk assessment. Banks choose one of three approaches: “Standardized
Approach,” “Foundation Internal Ratings-Based Approach” or “Advanced Internal Ratings-Based Approach (“AIRB”).”“Market Risk”
A framework titled “Fundamental Review of the Trading Book (FRTB)” was published as a part of Basel III. This frameworkpresents three methods for calculating capital charges on market risk: (1) the Standardized Approach (“SA”), (2) the Internal
Models Approach (“IMA”), and (3) Simplified Standardized Approach (“SSA”).
“Operational Risk”
Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or fromexternal events. The Basel framework presents the Standardized Measurement Approach for calculating operational risk capitalcharges.
Banks need to obtain approval from their supervisors prior to adopting the following approaches to calculate capitalrequirements for each risk:•

the Advanced Internal Ratings-Based Approach for credit risk
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)•

the Internal Models Approach for market risk•

the Standardized Measurement Approach for operational risk

With approval from the FSA, MUFG and most of its major subsidiaries adopt AIRB to calculate capital requirements for credit
risk. For market risk, MUFG and many of its major subsidiaries adopt the Standardized Approach, and some subsidiaries adopt the
Simplified Standardized Approach. MUFG and its subsidiaries adopt the Standardized Measurement Approach ("SMA") to calculate
capital requirements for operational risk.
The MUFG Group’s proprietary assets do not include trust assets under management and administration in a capacity of agent or
fiduciary and, accordingly trust account assets are generally not included in the capital measure. However, guarantees for trust
principal are counted as off-balance sheet items requiring a capital charge in accordance with the capital adequacy guidelines.
On the other hand, as for the numerator of the capital ratio, there are three primary regulatory capital ratios used to assess capital
adequacy, Common Equity Tier 1, Tier 1 and Total capital ratios, which are determined by dividing applicable capital components byrisk-weighted assets. Tier 1 capital consists of Common Equity Tier 1 capital and Additional Tier 1 capital. Common Equity Tier 1
capital is primarily consisting of common stock, capital surplus, retained earnings, and Accumulated OCI. Regulatory adjustments
including certain intangible fixed assets, such as goodwill, and defined-benefit pension fund assets, are made to Common Equity Tier
1. Additional Tier 1 capital generally consists of Basel III compliant preferred securities.
Tier 2 capital generally consists of Basel III compliant subordinated debts, certain allowances for credit losses, andnoncontrolling interests in subsidiaries’ Tier 2 instruments. Total capital is defined as the sum of Tier 1 and Tier 2 capital.
Effective March 31, 2016, the FSA’s capital conservation buffer, countercyclical buffer and the Global Systemically Important
Bank (“G-SIB”), as designated by the FSB, surcharge requirements became applicable to Japanese banking institutions withinternational operations conducted through foreign offices. The requirements had been phased in and fully implemented as ofMarch 31, 2023. In addition to the 4.50% minimum Common Equity Tier 1 capital ratio, MUFG is required to maintain a capitalconservation buffer of 2.5% and a G-SIB surcharge of 1.5% as of March 31, 2023 and 2024, and a countercyclical buffer of 0.04%
and 0.16% as of March 31, 2023 and 2024, respectively.
Leverage Ratios
The leverage ratio is designed for monitoring and preventing the build-up of excessive leverage in the banking sector and isexpressed as the ratio of Tier 1 capital to both on and off-balance sheet assets adjusted in accordance with the FSA guidance. In
December 2017, the Group of Central Bank Governors and Heads of Supervision announced final Basel III reforms. The announced
reforms include revisions to the measurement of the leverage ratio and a 3% minimum leverage ratio requirement, plus a G-SIB
leverage ratio buffer equal to 50% of the applicable G-SIB capital surcharge. The announcement sets forth implementation dates ofJanuary 1, 2018 for the minimum leverage ratio requirement and January 1, 2022 for the G-SIB leverage ratio buffer requirement.
Effective as of March 31, 2019, the minimum leverage ratio requirement was adopted by the FSA. In addition, effective as ofMarch 31, 2023, a leverage ratio buffer set at 50% of a G-SIB surcharge, which is 0.75% for MUFG, was adopted by the FSA. On
November 11, 2022, the FSA announced that the applicable minimum leverage ratio requirement including the applicable minimum
leverage ratio buffer requirement is raised from 3.00% plus a G-SIB leverage ratio buffer set at 50% of a G-SIB surcharge to 3.15%
plus a G-SIB leverage ratio buffer set at 50% of a G-SIB surcharge plus 0.05% on and after April 1, 2024, while deposits with the
Bank of Japan will continue to be excluded from the leverage exposure for the purpose of the calculation of the leverage ratio, in lightof exceptional macroeconomic conditions and other circumstances.
The risk-adjusted capital amounts and ratios, and leverage ratios, of MUFG, MUFG Bank and Mitsubishi UFJ Trust andBanking presented in the following table are based on amounts calculated in accordance with Japanese GAAP as required by the FSA.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
For capital
adequacy purposes

ActualAmountRatio

AmountRatio(in millions, except percentages)

Consolidated:
At March 31, 2023:
Total capital (to risk-weighted assets):
MUFG(1)
BK
TB
Tier 1 capital (to risk-weighted assets):
MUFG(1)
BK
TB
Common Equity Tier 1 capital (to risk-weighted assets):
MUFG(1)BK
TB
Leverage ratio:
MUFG(2)BK
TB
At March 31, 2024:
Total capital (to risk-weighted assets):
MUFG(1)
BK
TB
Tier 1 capital (to risk-weighted assets):
MUFG(1)
BK
TB
Common Equity Tier 1 capital (to risk-weighted assets):
MUFG(1)BK
TB
Leverage ratio:
MUFG(2)
BK
TB

F-89

¥ 17,166,109
14,207,818
2,041,563

13.91% ¥ 14,852,953
12.58
9,029,639
20.67
790,026

12.04%
8.00
8.00

14,863,717
12,469,254
1,770,924

12.04
11.04
17.93

12,385,685
6,772,229
592,519

10.04
6.00
6.00

13,280,842
11,172,146
1,620,889

10.76
9.89
16.41

10,535,234
5,079,172
444,389

8.54
4.50
4.50

14,863,717
12,469,254
1,770,924

4.70
4.75
7.29

11,851,297
7,867,085
728,488

3.75
3.00
3.00

¥ 19,817,830
15,915,058
2,121,699

17.82% ¥ 13,517,077
18.11
7,026,643
20.42
830,995

12.16%
8.00
8.00

17,479,730
14,153,613
1,852,135

15.72
16.11
17.83

11,293,874
5,269,982
623,247

10.16
6.00
6.00

15,041,314
12,126,413
1,616,473

13.53
13.80
15.56

9,626,471
3,952,486
467,435

8.66
4.50
4.50

17,479,730
14,153,613
1,852,135

5.19
5.23
6.34

12,615,964
8,104,067
876,017

3.75
3.00
3.00

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
For capital
adequacy purposes

ActualAmountRatio

AmountRatio(in millions, except percentages)

Stand-alone:
At March 31, 2023:
Total capital (to risk-weighted assets):
BK
TB
Tier 1 capital (to risk-weighted assets):
BK
TB
Common Equity Tier 1 capital (to risk-weighted assets):
BK
TB
Leverage ratio:
BK
TB
At March 31, 2024:
Total capital (to risk-weighted assets):
BK
TB
Tier 1 capital (to risk-weighted assets):
BK
TB
Common Equity Tier 1 capital (to risk-weighted assets):
BK
TB
Leverage ratio:
BK
TB¥ 11,115,302
2,131,00710.71 % ¥ 8,295,019
19.60
869,700

8.00 %
8.00

9,644,128
1,861,150

9.30
17.11

6,221,264
652,275

6.00
6.00

8,410,290

8.11

4,665,948

4.50

1,711,650

15.74

489,206

4.50

9,644,128
1,861,150

4.02
8.15

7,183,295
684,297

3.00
3.00¥ 12,279,192
2,209,640

16.29 % ¥ 6,029,065
19.03
928,478

8.00 %
8.00

10,839,039
1,941,116

14.38
16.72

4,521,799
696,359

6.00
6.00

8,872,411
1,707,616

11.77
14.71

3,391,349
522,269

4.50
4.50

10,839,039
1,941,116

4.50
7.09

7,221,205
821,320

3.00
3.00

Notes:(1) Effective March 31, 2016, the FSA’s capital conservation buffer, countercyclical buffer and G-SIB surcharge requirements
became applicable to Japanese banking institutions with international operations conducted through foreign offices. As a result, in
addition to the 4.50% minimum Common Equity Tier 1 capital ratio, MUFG is required to maintain a capital conservation bufferof 2.5% and a G-SIB surcharge of 1.5% as of March 31, 2023 and 2024, and the countercyclical buffer of 0.04% and 0.16% as ofMarch 31, 2023 and 2024, respectively.
(2) Effective March 31, 2023, the G-SIB leverage ratio buffer requirement became applicable to Japanese banking institutions withinternational operations conducted through foreign offices. As a result, in addition to the 3.0% minimum leverage ratio, MUFG isrequired to maintain a G-SIB leverage ratio buffer of 0.75% as of March 31, 2023 and 2024.
Mitsubishi UFJ Morgan Stanley Securities and other securities subsidiaries in Japan and overseas are also subject to regulatory
capital requirements of the countries or jurisdictions in which they operate. In Japan, the Financial Instruments and Exchange Act andrelated ordinance require financial instruments firms to maintain a minimum capital ratio of 120% calculated as a percentage of capital
accounts less certain fixed assets, as determined in accordance with Japanese GAAP, against amounts equivalent to market,
counterparty credit and operational risks. Specific guidelines are issued as a ministerial ordinance which details the definition of
essential components of the capital ratios, including capital, deductible fixed asset items and risks, and related measures. Failure to
maintain a minimum capital ratio will trigger mandatory regulatory actions. A capital ratio of less than 140% will call for regulatory

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
reporting and a capital ratio of less than 100% may lead to a suspension of all or part of the business for a period of time andcancellation of a registration.
At March 31, 2023, Mitsubishi UFJ Morgan Stanley Securities’s capital accounts less certain fixed assets of ¥550,276 million
on a stand-alone basis were 310.9% of the total amounts equivalent to market, counterparty credit and operational risks. At March 31,
2024, its capital accounts less certain fixed assets of ¥537,309 million on a stand-alone basis, are 305.2% of the total amounts
equivalent to market, counterparty credit and operational risks.
Management believes, as of March 31, 2024, that MUFG, MUFG Bank, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ
Morgan Stanley Securities and other regulated securities subsidiaries met all capital adequacy requirements to which they are subject.

22.

EARNINGS (LOSS) PER COMMON SHARE APPLICABLE TO COMMON SHAREHOLDERS OF MUFG

Reconciliations of net income (loss) and weighted average number of common shares outstanding used for the computation ofbasic EPS to the adjusted amounts for the computation of diluted EPS for the fiscal years ended March 31, 2022, 2023 and 2024 are as
follows:
2023(Restated)

2022

2024

(in millions)

Income (loss) (Numerator):
Net income (loss) attributable to Mitsubishi UFJ Financial Group¥
Effect of dilutive instruments:
Restricted stock units and performance-based stock units—Morgan Stanley
Earnings (loss) applicable to common shareholders of Mitsubishi UFJ Financial Group for
diluted computation¥(83,320) ¥376,635 ¥ 1,328,121(5,361)(3,816)(88,681) ¥372,819 ¥ 1,324,838

2022

2023

(3,283)2024(thousands of shares)

Shares (Denominator):
Weighted average common shares outstanding
Effect of dilutive instruments:
Stock acquisition rights under the Stock Option Plan and the common shares of
MUFG under the Board Incentive Plan(1)Weighted average common shares for diluted computation

12,798,060

12,317,723

11,978,725—
12,798,060

1,132
12,318,855

1,876
11,980,601

2022

2023

2024

(in yen)

Earnings (loss) per common share applicable to common shareholders of Mitsubishi
UFJ Financial Group:
Basic earnings (loss) per common share:
Earnings (loss) applicable to common shareholders of Mitsubishi UFJ Financial
Group
Diluted earnings (loss) per common share:
Earnings (loss) applicable to common shareholders of Mitsubishi UFJ Financial
Group(1)¥(6.51) ¥30.58 ¥

110.87¥(6.93) ¥30.26 ¥

110.58Note:(1) For the fiscal year ended March 31, 2022, the performance-based plan under the Board Incentive Plan could potentially diluteearnings per common share but were not included in the computation of diluted earnings per common share due to theirantidilutive effects.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
23.

DERIVATIVE FINANCIAL INSTRUMENTS

The MUFG Group uses various derivative financial instruments both for trading purposes and for purposes other than trading(primarily risk management purposes) in the normal course of business to meet the financial needs of its customers, as a source ofrevenue and to manage its exposures to a variety of risks.
Market risk is the possibility that future changes in market indices make the financial instruments less valuable. The MUFG
Group is a party to derivative financial instruments, including swaps, forwards, options and other types of derivatives, dealing
primarily with market risk associated with interest rates, foreign currencies, equity and commodity prices, and credit risk associatedwith counterparty’s nonperformance of transactions.
Credit risk is the possibility that a loss may result from a counterparty’s failure to perform according to the terms and conditionsof the contract, which may exceed the value of underlying collateral. To reduce credit risk, the MUFG Group may require collateral or
guarantees based on a case-by-case assessment of creditworthiness of each customer and evaluation of the instrument. The MUFG
Group also uses master netting agreements in order to mitigate overall counterparty credit risk.
Trading Activities
The MUFG Group’s trading activities include dealing and customer accommodation activities. As part of its trading activities,
the MUFG Group offers a variety of derivative financial instruments for managing interest rate and foreign exchange risk to its
domestic and foreign corporate and financial institution customers. The MUFG Group also enters into other types of derivativetransactions, including equity and credit-related contracts, for its own account.
Risk Management Activities
As part of the MUFG Group’s risk management activities, asset and liability management is viewed as one of the methods for
the MUFG Group to manage its interest rate exposures on interest-bearing assets and liabilities. The MUFG Group uses certain
derivative financial instruments in order to minimize significant unplanned fluctuations in earnings that are caused by interest rate
volatility. For example, an increase or a decrease in interest income and interest expense on hedged variable rate assets and liabilities
as a result of interest rate fluctuations are expected to be substantially offset by the variability in earnings by gains and losses on thederivative instruments that are linked to these hedged assets and liabilities.
The MUFG Group enters into interest rate swaps and other contracts primarily to manage the interest rate risk of its loans,investment securities and deposit liabilities. Interest rate contracts, which are generally non-leveraged generic interest rate and basis
swaps, options and futures, allow the MUFG Group to effectively manage its interest rate risk position. Option contracts primarily
consist of caps, floors, swaptions and options on index futures. Futures contracts used for asset and liability management activities areprimarily index futures providing for cash payments based upon the movement of an underlying rate index.
The MUFG Group enters into forward exchange contracts, currency swaps and other contracts in response to currency
exposures resulting from on-balance sheet assets and liabilities denominated in foreign currencies in order to limit the net foreignexchange position by currency to an appropriate level.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Notional Amounts of Derivative Contracts
The following table summarizes the notional amounts of derivative contracts at March 31, 2023 and 2024:
Notional amounts(1)
2023

2024
(in trillions)Interest rate contracts
Foreign exchange contracts
Equity contracts
Commodity contracts
Credit derivatives
Other
Total

¥

1,625.6
307.4
5.3
0.1
11.5
3.2
1,953.1¥¥¥

1,812.9
340.2
5.0
0.2
5.3
3.6
2,167.2

Note:(1) Includes both written and purchased positions.
Impact of Derivatives on the Consolidated Balance Sheets
The following table summarizes fair value information on derivative instruments that are recorded on the MUFG Group’s
consolidated balance sheets at March 31, 2023 and 2024:
Fair value of derivative instruments
2023(1)(5)
Not designatedas hedges(2)2024(1)(5)

Designatedas hedges(3)Totalderivatives(4)Not designatedas hedges(2)Designatedas hedges(3)Totalderivatives(4)(in billions)

Derivative assets:
Interest rate contracts¥

Foreign exchange contracts

7,445

¥

—

¥

7,445

¥

9,506

¥

—

¥

9,506

5,276

5

5,281

5,628

5

5,633

Equity contracts

90

—

90

123

—

123

Commodity contracts

10

—

10

19

—

19

Credit derivatives

80

—

80

47

—

47

Other(6)Total derivative assets

5

—

5

—

—

—

¥

12,906¥

5¥

12,911¥

15,323¥

5¥

15,328

¥

8,697

¥

—

¥

8,697

¥

10,693¥—¥

10,693

Derivative liabilities:
Interest rate contracts
Foreign exchange contracts

5,018

—

5,018

5,546

1

5,547

Equity contracts

128

—

128

158

—

158

Commodity contracts

10

—

10

18

—

18

Credit derivatives

90

—

90

62

—

62

Other(6)Total derivative liabilities

(110)
¥

13,833

—
¥

—

(110)
¥

13,833(110)¥

16,367

—
¥

1

(110)
¥

16,368Notes:(1) The fair value of derivative instruments is presented on a gross basis even when derivative instruments are subject to masternetting agreements. Cash collateral payable and receivable associated with derivative instruments are not added to or netted
against the fair value amounts.
(2) The derivative instruments which are not designated as a hedging instrument are held for trading and risk management purposes,
and are presented in Trading account assets and liabilities except for (6).
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)(3) The MUFG Group adopts hedging strategies and applies hedge accounting to certain derivative transactions entered into bycertain subsidiaries. The derivative instruments which are designated as hedging instruments are presented in Other assets or
Other liabilities on the accompanying consolidated balance sheets.
(4) This table does not include contracts with embedded derivatives for which the fair value option has been elected.
(5) For more information about fair value measurement and assumptions used to measure the fair value of derivatives, see Note 31.
(6) Other mainly includes bifurcated embedded derivatives carried at fair value, which are presented in Loans, Deposits and Longterm debt.
Impact of Derivatives on the Consolidated Statements of Operations
The following table provides more detailed information regarding the derivative-related impact on the accompanying
consolidated statements of operations for the fiscal years ended March 31, 2022, 2023 and 2024:
Gains and losses for trading and risk management derivatives (not designated as hedging instruments)
Trading and risk management derivatives gains and losses(Not designated as hedging instruments)
2022
Foreignexchange
gains(losses)
—net

2023

Tradingaccount
profits(losses)
—net

Total

Foreignexchange
gains(losses)
—net

2024

Tradingaccount
profits(losses)
—net

Total

Foreignexchange
gains(losses)—net

Tradingaccount
profits(losses)
—net

¥ 263

¥

¥

Total

(in billions)Interest rate contracts

¥

—

¥

51

¥

51

¥

—

¥

263

—

(216) ¥

(216)

Foreign exchange contracts

(39)

—

(39)

61

—

61

(398)

—

(398)

Equity contracts

—

(98)

(98)

—

(13)

(13)

—

(618)

(618)

Commodity contracts

—

—

—

—

—

—

—

(1)

(1)

Credit derivatives

—

(34)

(34)

—

(20)

(20)

—

(27)

(27)

Other(1)

(6)

(21)

(27)

(3)

8

5

(9)

(85)

(94)

(45) ¥(102) ¥ (147) ¥

238

¥ 296

Total

¥

58

¥

¥

(407) ¥

(947) ¥ (1,354)

Note:(1) Other mainly includes bifurcated embedded derivatives carried at fair value, which are presented in Loans, Deposits and Longterm debt.
Credit Derivatives
The MUFG Group enters into credit derivatives to manage its credit risk exposure, to facilitate client transactions, and forproprietary trading purposes, under which they provide the counterparty protection against the risk of default on a set of debt
obligations issued by a specified reference entity or entities. Types of such credit derivatives primarily include single name credit
default swaps, index and basket credit default swaps. The MUFG Group will have to perform under a credit derivative if a credit event
as defined under the contract occurs. Such credit events include bankruptcy, dissolution or insolvency of the referenced entity, default
and restructuring of the obligations of the referenced entity. The MUFG Group’s counterparties are banks, broker-dealers, insurance
and other financial institutions. The contractual or notional amounts of these credit derivatives represent the maximum potential
amounts of future payments without consideration of possible recoveries under recourse provisions or from collateral held or pledged.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The table below summarizes certain information regarding protection sold through credit derivatives as of March 31, 2023 and2024:
Protection soldMaximum potential/Notional amountby expiration period
1 yearor less

At March 31, 2023:

Over
5 years

1-5 years

Fair value
Total(Asset)/Liability(1)(in millions)Single name credit default swaps:
Investment grade(2)Non-investment grade
Total
Index and basket credit default swaps:
Investment grade(2)Non-investment grade
Not rated
Total
Total credit default swaps sold¥616,504 ¥ 2,222,393 ¥
163,982
313,135
780,486
2,535,528—
37,359¥529,796 ¥ 3,368,693 ¥48,177525,294
577,973
3,893,987

217,259
599,638

1,596
6,200

—
435,452
37,3591,252,349
817,845 ¥ 3,787,877 ¥

218,855
643,197

3,192
438,644
10,9881,300,696
588,961 ¥ 5,194,683 ¥(30,117)
13,477(16,640)(1,266)(7,121)(3,329)(11,716)(28,356)

Protection soldMaximum potential/Notional amountby expiration period
1 yearor less

At March 31, 2024:Over
5 years

1-5 years

Fair value
Total(Asset)/Liability(1)(in millions)Single name credit default swaps:
Investment grade(2)Non-investment grade
Total
Index and basket credit default swaps:
Investment grade(2)Non-investment grade
Not rated
Total
Total credit default swaps sold¥¥212,513 ¥82,749295,262

736,935 ¥146,029882,964

219,642 ¥ 1,169,090 ¥
15,837
244,615
235,479
1,413,705(17,199)
211(16,988)73,300681,443——
2,836
24,62376,136706,066
371,398 ¥ 1,589,030 ¥10,202764,945——3,404
30,863
13,606
795,808
249,085 ¥ 2,209,513 ¥(11,458)—(548)(12,006)(28,994)

Notes:(1) Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting.
(2) The MUFG Group considers ratings of Baa3/BBB- or higher to meet the definition of investment grade.
Single name credit default swaps—Single name credit default swap protects the buyer against the loss of principal on a bond or
loan in case of a default by the issuer. The protection buyer pays a premium to the MUFG Group and is protected for the period of thecredit default swap. As the seller of protection, the MUFG Group in turn will have to perform under a credit default swap if a credit
event as defined under the contracts occurs. In order to provide an indication of the current payment/performance risk of the credit
default swaps, the external credit ratings, primarily those provided by Moody’s and Standard & Poor’s (“S&P”), of the underlying
reference entity of the credit default swaps are disclosed.
Index and basket credit default swaps—Index and basket credit default swaps are credit default swaps that reference multiple
names through underlying baskets or portfolios of single name credit default swaps. Typically, in the event of a default on one of theunderlying names, the MUFG Group, as the seller of protection, will have to pay a pro-rata portion of the total notional amount of thecredit default index or basket contract. In order to provide an indication of the current payment/performance risk of these credit default

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swaps, the rating scale based upon internal ratings, which generally correspond to ratings defined by primarily Moody’s and S&P, ofthe underlying reference entities comprising the basket or index were calculated and disclosed.
The MUFG Group may economically hedge its exposure to credit derivatives by entering into offsetting derivative contracts.
The carrying value and notional amounts of credit protection sold in which the MUFG Group held purchased protection with identicalunderlying referenced entities were approximately ¥27 billion and ¥4,880 billion, respectively, at March 31, 2023, and approximately¥25 billion and ¥1,920 billion, respectively, at March 31, 2024.
Collateral is held by the MUFG Group in relation to these instruments. Collateral requirements are determined at thecounterparty level and cover numerous transactions and products as opposed to individual contracts.
Credit Risk, Liquidity Risk and Credit-risk-related Contingent Features
Certain derivative instruments held by the MUFG Group contain provisions that require the MUFG Group’s debt to maintain an
investment grade credit rating from each of the major credit rating agencies. If the MUFG Group’s debt were to fall below investment
grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request payments on earlytermination or demand immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. The
aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position atMarch 31, 2023 and 2024 was approximately ¥0.8 trillion and ¥0.8 trillion, respectively, for which the MUFG Group has posted
collateral of approximately ¥222 billion and ¥274 billion, respectively, in the normal course of business. The amount of additional
collateral and early termination amount which could be requested if the MUFG Group’s debt falls below investment grade was ¥70
billion and ¥116 billion, respectively, as of March 31, 2023 and ¥67 billion and ¥129 billion, respectively, as of March 31, 2024.
24.

OBLIGATIONS UNDER GUARANTEES AND OTHER OFF-BALANCE SHEET INSTRUMENTS

Obligations under Guarantees
The MUFG Group provides customers with a variety of guarantees and similar arrangements, including standby letters of credit,
financial and performance guarantees, credit protection, liquidity facilities, other off-balance sheet credit-related support and similar
instruments, in order to meet the customers’ financial and business needs. The tables below present the contractual or notionalamounts of such guarantees at March 31, 2023 and 2024. The contractual or notional amounts of these instruments represent the
maximum potential amounts of future payments without consideration of possible recoveries under recourse provisions or fromcollateral held or pledged.
For certain types of derivatives, such as written interest rate options and written currency options, the maximum potential future
payments are unlimited. Accordingly, it is impracticable to estimate the maximum potential amount of future payments. As such, thenotional amounts of the related contracts, other than the maximum potential payments, are included in the table.
The MUFG Group mitigates its credit risk exposure resulting from guarantees by utilizing various techniques, including
collateralization in the form of cash, securities, and real estate properties based on management’s credit assessment of the guaranteed
parties and the related credit profile. In order to manage the credit risk exposure, the MUFG Group also enters into sub-participation
contracts with third parties who will fund a portion of the credit facility and bear its share of the loss to be incurred in the event thatthe customer fails to fulfill its obligations. The following table includes guarantees of ¥549.1 billion and ¥681.4 billion at March 31,
2023 and 2024, respectively, which are syndicated out to third parties. The contractual or notional amounts summarized in thefollowing table do not necessarily bear any direct relationship to the future actual credit exposure, primarily because of risk
management techniques of the MUFG Group.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Maximum
potential/
Contractualor Notionalamount

At March 31, 2023:

Amount by expiration period
1 yearor less

1-5 yearsOver
5 years(in billions)Standby letters of credit and financial guarantees
Performance guarantees
Derivative instruments(1)Liabilities of trust accounts
Other
Total

¥

¥

4,975 ¥
4,179
48,363
17,13985
74,741 ¥Maximum
potential/
Contractualor Notionalamount

At March 31, 2024:

4,047 ¥
3,100
22,1978,780
15
38,139 ¥743 ¥930
16,036798
70
18,577 ¥185
149
10,130
7,561—
18,025

Amount by expiration period
1 yearor less

1-5 yearsOver
5 years(in billions)Standby letters of credit and financial guarantees
Performance guarantees
Derivative instruments(1)Liabilities of trust accounts
Other
Total

¥

¥

5,320 ¥
4,770
51,046
19,938
40
81,114 ¥

4,330 ¥
3,598
22,233
12,50238
42,701 ¥

823 ¥
1,005
18,100738
220,668 ¥167
167
10,713
6,698—
17,745Note:(1) Credit derivatives sold by the MUFG Group are excluded from this presentation.
Nature of Guarantee Contracts
Standby letters of credit and financial guarantees generally include an obligation of an issuer or a designated third-party toguarantee the performance of the customer to the beneficiary under the terms of contracts such as lending contracts and other similar
financial transactions. The MUFG Group is required to make payments to the guaranteed parties in the event that the customers fail tofulfill the obligations under the contracts. The guarantees whose contractual maturities are over 5 years are mainly comprised ofguarantees of housing loans.
Performance guarantees are contracts that contingently require the MUFG Group to make payments to the guaranteed party
based on another party’s failure to perform under an obligating agreement, except financial obligation. For example, performance
guarantees include guarantees of completion of construction projects.
Derivative instruments that are deemed to be included within the definition of guarantees as prescribed in the guidance on
guarantees include certain written options and credit default swaps. In order for the MUFG Group to determine if those derivative
instruments meet the definition of guarantees, as prescribed in the guidance on guarantees, the MUFG Group has to track whether thecounterparties are actually exposed to losses that will result from the adverse change in the underlying. Accordingly, the MUFG
Group has disclosed information on all credit default swaps and certain written options for which there is a possibility of meeting thedefinition of guarantees as prescribed in the guidance on guarantees, regardless of whether the counterparties have assets or liabilities
related to the underlying of the derivatives. However, credit derivatives sold by the MUFG Group at March 31, 2023 and 2024 are
excluded from this presentation, as they are disclosed in Note 23.
Liabilities of trust accounts represent the trustee’s potential responsibility for temporary payments to creditors of liabilities oftrust accounts making use of funds of the MUFG Group, unless there are certain agreements with trust creditors that have provisions
limiting the MUFG Group’s exposure as a trustee to the trust account assets. A trust may incur external liabilities to obtain certain
services during the terms of the trust arrangement. While in principle, any liabilities of a trust are payable by the trust account and its
beneficiaries. A trustee’s responsibility may be interpreted to encompass temporary payments for the trust account liabilities when thetrust account does not maintain sufficient liquidity available for such liabilities unless the agreement with trust creditors limits the
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
trustee’s exposure to the trust account assets. Liabilities of trust accounts principally includes obligations to return collateral under
security lending transactions. The MUFG Group has experienced no significant losses on such responsibilities and its exposure to therisk associated with the temporary payments is judged to be remote because trust account liabilities are generally covered by thecorresponding trust account assets. The MUFG Group continuously monitors the liabilities of trust accounts and assesses the trust
account’s ability to perform its obligations to prevent any unfavorable outcomes; the MUFG Group claims its recourse for its
temporary payments against the trust account assets and the beneficiaries.
Carrying AmountAt March 31, 2023 and 2024, the carrying amounts of the liabilities related to guarantees and similar instruments set forth above
were ¥1,243,157 million and ¥1,242,240 million, respectively, which are included in Other liabilities and Trading account liabilities.
The guarantees and similar instruments comprising the largest components of the total were options sold in the amount of ¥1,188,798
million and ¥1,175,027 million as of March 31, 2023 and 2024, respectively. Credit derivatives sold by the MUFG Group at
March 31, 2023 and 2024 are excluded from this presentation, as they are disclosed in Note 23. In addition, Other liabilities include anallowance for off-balance sheet instruments of ¥48,615 million and ¥58,383 million at March 31, 2023 and 2024, respectively, related
to these transactions.
Performance Risk
The MUFG Group monitors performance risk of its guarantees using the same credit rating system utilized for estimating
probabilities of default with its loan portfolio. The MUFG Group’s credit rating system is consistent with both the method of
evaluating credit risk under Basel III and those of third-party credit rating agencies. On certain underlying referenced credits orentities, ratings are not available. Such referenced credits are included in the “Not rated” category in the following tables.
Presented in the tables below is the maximum potential amount of future payments classified based upon internal credit ratings
as of March 31, 2023 and 2024. The determination of the maximum potential future payments is based on the notional amount of theguarantees without consideration of possible recoveries under recourse provisions or from collateral held or pledged. Such amounts do
not represent the anticipated losses, if any, on these guarantees.
Amount by borrower grade
Maximum
potential/
Contractualor Notionalamount

At March 31, 2023:

NormalClose
Watch(1)

Likely to
becomeBankrupt
or Legally/
Virtually
Bankrupt(2)

Not
rated

(in billions)Standby letters of credit and financial guarantees
Performance guarantees
Total

¥

4,975 ¥
4,179
9,154 ¥¥

4,819 ¥
4,066
8,885 ¥

78 ¥
53
131 ¥

17 ¥
29
46 ¥

61
31
92

Amount by borrower grade
Maximum
potential/
Contractualor Notionalamount

At March 31, 2024:

NormalClose
Watch(1)

Likely to
becomeBankrupt
or Legally/
Virtually
Bankrupt(2)

Not
rated

(in billions)Standby letters of credit and financial guarantees
Performance guarantees
Total

¥
¥

5,320 ¥
4,770
10,090 ¥5,161 ¥
4,668
9,829 ¥

123 ¥
44
167 ¥

18 ¥
29
47 ¥

18
29
47

Notes:(1) Borrowers classified as Close Watch represent those that require close monitoring as the borrower has begun to exhibit elementsof potential concern with respect to its business performance and financial condition, the borrower has begun to exhibit elementsof serious concern with respect to its business performance and financial condition, including business problems requiring longterm solutions, or loans contractually past due 90 days or more for special reasons.
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)(2) Borrowers classified as Likely to become Bankrupt or Legally/Virtually Bankrupt represent those that have a higher probability ofdefault than those categorized as Close Watch due to serious debt repayment problems with poor progress in achieving
restructuring plans, the borrower being considered virtually bankrupt with no prospects for an improvement in business
operations, or the borrower being legally bankrupt with no prospects for continued business operations because of non-payment,
suspension of business, voluntary liquidation or filing for legal liquidation.
The guarantees the MUFG Group does not classify based upon internal credit ratings are as follows.
The MUFG Group records all derivative contracts at fair value. Aggregate market risk limits have been established, and market
risk measures are routinely monitored against these limits. The MUFG Group also manages its exposure to these derivative contracts
through a variety of risk mitigation strategies, including, but not limited to, offsetting economic hedge positions. The MUFG Group
expects the risk of loss to be remote and believes that the notional amounts of the derivative contracts generally exceed its exposure.
Liabilities of trust accounts represent the trustee’s potential responsibility for temporary payments to creditors of liabilities oftrust accounts using funds of the MUFG Group. The MUFG Group has experienced no significant losses on such responsibilities andits exposure to the risk associated with the temporary payments is judged to be remote because trust account liabilities are generally
covered by the corresponding trust account assets.
Other Off-balance Sheet Instruments
In addition to obligations under guarantees and similar arrangements set forth above, the MUFG Group issues other off-balance
sheet instruments to meet the financial needs of its customers and for purposes other than trading. Such off-balance sheet instruments
consist of lending-related commitments, including commitments to extend credit and commercial letters of credit that the MUFG
Group provides to meet the financing needs of its customers. Once the MUFG Group issues these off-balance sheet instruments, the
MUFG Group is required to extend credit to or make certain payments to the customers or beneficiaries specified pursuant to theunderlying contracts unless otherwise provided in the contracts. Since many of these commitments expire without being drawn upon,
the total commitment amounts do not necessarily represent future cash requirements. Substantially all of our off-balance sheet
instruments is comprised of commitments to extend credit at March 31, 2024, and approximately 63% of these commitments will
expire within one year, 33% from one year to five years and 4% after five years. The table below presents the contractual amounts
with regard to the other off-balance sheet instruments at March 31, 2023 and 2024:
2023

2024
(in billions)

Commitments to extend credit
Commercial letters of credit
Commitments to make investments¥

88,631 ¥871
705

94,383974
674

Commitments to extend credit, which generally have fixed expiration dates or other termination clauses, are binding agreements
to lend to customers. Commitments are different from guarantees in that the commitments are generally revocable or have provisions
that enable the MUFG Group to avoid payments in the event of violations of any conditions of the contracts and certain deteriorationof the potential borrowers’ financial condition.
Commercial letters of credit, generally used for trade transactions, are typically secured by the underlying goods. The MUFG
Group continually monitors the type and amount of collateral and other securities, and requires counterparties to provide additional
collateral or guarantors as necessary.
Commitments to make investments are legally binding contracts such as to make additional contributions to corporate recovery
or private equity investment funds in accordance with limited partnership agreements. Some of these funds, in which the MUFG
Group has significant variable interests, are described in Note 25.
25.

VARIABLE INTEREST ENTITIESIn the normal course of business, the MUFG Group has financial interests and other contractual obligations in various entities
which may be deemed to be VIEs such as asset-backed conduits, various investment funds, special purpose entities created forstructured financing, repackaged instruments, entities created for the securitization of the MUFG Group’s assets and trust
arrangements.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following tables present the assets and liabilities of consolidated VIEs recorded on the accompanying consolidated balance
sheets at March 31, 2023 and 2024:
Consolidated VIEs

At March 31, 2023:

Consolidated assets
Interestearning
deposits in
other
banks

Cash anddue from
banks

Total

Tradingaccount
assetsInvestment
securities

Loans

All otherassets(in millions)

Asset-backed conduits

47,606¥ 1,027,862¥ 6,185,514

1,331,962—

46,157359,777

65,204—

860,824

Special purpose entities created for structured
financing

248,952

—

2,593

8,624

—

135,606

102,129

Repackaged instruments

167,00753,617

15,007—

Investment funds¥ 7,388,845¥

71,649¥34,521¥¥

21,693

243,513

7,882—

Securitization of the MUFG Group’s assets

10,389,398

—

1,434

—

—

10,371,275

16,689Trust arrangements

8,176,795——

833,864

1,514,530

5,828,397

4

OtherTotal consolidated assets before elimination
The amounts eliminated in consolidation
Total consolidated assets

62,109584

3,952

14,606

16,1592,822

23,986

27,841,574

80,11588,657

1,431,484

2,677,372

22,538,621

1,025,325(6,739,954)¥ 21,101,620(71,872)
¥

8,243

¥

(36,626)(63,556)(600,635)(5,940,036)(27,229)52,031¥1,367,928¥ 2,076,737¥ 16,598,585¥ 998,096

Long-termdebt

All other
liabilities

Consolidated liabilities

Total

Other shortterm
borrowings

Deposits(in millions)

Asset-backed conduits—¥ 5,587,813¥ 1,367,234

Investment funds¥ 7,364,030
830,751¥—

817,292

7,407¥

408,983
6,052

Special purpose entities created for structured financing

127,768——

109,352

18,416

Repackaged instruments

245,829——

230,285

15,544

Securitization of the MUFG Group’s assets

10,418,160——

10,154,662

263,498

Trust arrangements

8,176,907

6,408,837

840,690—927,380

1,456

31,90023,546

Other

56,902—

Total consolidated liabilities before elimination

27,220,347

6,408,837

7,247,251

11,900,840

1,663,419

The amounts eliminated in consolidation(16,102,106)(302)(3,696,647)(11,469,378)(935,779)

The amount of liabilities with recourse to the general credit of the
MUFG Group(10,503,305)(6,408,535)(3,505,172)(25,033)(564,565)

Liabilities of consolidated VIEs for which creditors or beneficial
interest holders do not have recourse to the general credit of the
MUFG Group¥614,936

F-100

¥

—

¥

45,432¥406,429¥

163,075

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Consolidated VIEs

At March 31, 2024:

Consolidated assets
Interestearning
deposits in
other
banks

Cash anddue from
banks

Total

Tradingaccount
assetsInvestment
securities

Loans

All otherassets860,760¥ 7,045,964¥ 133,919

77,334—

1,215,383(in millions)

Asset-backed conduits
Investment funds¥ 8,186,919¥¥

33,826¥45,689¥1,759

30,748247,908

—

3,820

—

—

143,688

100,400

296,435

9,892—

137,795

132,951

15,000797

Securitization of the MUFG Group’s assets

10,447,956

—

1,664

—

—

10,428,225

18,067

Trust arrangements

5,352,775——

803,348

1,811,498

2,737,908

21

85,008470

5,366

14,05938,2192,481

24,413Special purpose entities created for structured
financing
Repackaged instruments

Other

1,662,843

66,761

337,619

Total consolidated assets before elimination

26,279,844

78,88275,424

1,338,510

2,920,762

20,373,266

1,493,000

The amounts eliminated in consolidation(3,671,326)(68,736)(41,258)(72,217)(600,219)(2,859,135)(29,761)

34,166¥ 1,266,293¥ 2,320,543¥ 17,514,131¥ 1,463,239

Long-termdebt

All other
liabilities

Total consolidated assets¥ 22,608,518¥

10,146¥

Consolidated liabilities

Total

Deposits

Other shortterm
borrowings(in millions)

Asset-backed conduits¥ 8,162,014

Investment funds
Special purpose entities created for structured financing
Repackaged instruments—¥ 6,331,278¥ 1,371,157

1,147,832¥—

1,136,495

8,772

¥

459,579
2,565

136,089——

117,806

18,283301,045——

287,192

13,853

Securitization of the MUFG Group’s assets

10,460,439——

10,454,694

5,745

Trust arrangements

5,352,880

3,292,449

1,131,120—

929,31178,350—966

54,15923,225

Total consolidated liabilities before elimination

25,638,649

3,292,449

8,599,859

12,293,780

1,452,561

The amounts eliminated in consolidation(16,806,678)(432)(4,242,371)(11,888,346)(675,529)

The amount of liabilities with recourse to the general credit of the
MUFG Group

(8,275,680)(3,292,017)(4,311,280)(26,417)(645,966)

Other

Liabilities of consolidated VIEs for which creditors or beneficial
interest holders do not have recourse to the general credit of the
MUFG Group

¥556,291¥—¥

46,208¥379,017¥

131,066

In general, the creditors or beneficial interest holders of consolidated VIEs have recourse not only to the assets of those VIEs ofwhich they are creditors or beneficial interest holders, but also to other assets of the MUFG Group, since the MUFG Group is also
contractually required to provide credit enhancement or program-wide liquidity to these VIEs.
The following tables present the total assets of non-consolidated VIEs, the maximum exposure to loss resulting from the MUFG
Group’s involvement with non-consolidated VIEs and the assets and liabilities which relate to the MUFG’s variable interests in nonconsolidated VIEs at March 31, 2023 and 2024:

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Non-consolidated VIEs

On-balance sheet
liabilities

On-balance sheet assets

At March 31, 2023:

Total assets

Maximum
exposure

Asset-backed conduits¥ 41,001,958¥ 8,062,589¥ 6,384,079

Investment funds

55,386,213

4,930,989

3,446,109Special purpose entities created forstructured financing

54,543,066

5,864,814

3,907,598

Repackaged instruments

9,034,058

4,372,581

4,117,969

Other87,989,676

3,989,548

2,761,087¥ 247,954,971¥ 27,220,521¥ 20,616,842

Total

Tradingaccount
assetsInvestment
securities

Loans

All
other
assetsTotal

All other
liabilities(in millions)

Total

¥

21,719¥ 2,205,877¥ 4,142,995¥ 13,488¥ 10,823¥ 10,823

262,312120,4362,710,177

353,184

27,606

27,60680,38239,3573,749,670

38,189208,100

208,100

944,795

2,641,384

386,793

144,997

2,230

2,230

146,286

7,552

2,523,976

83,27346,35446,354¥ 1,455,494¥ 5,014,606¥ 13,513,611¥ 633,131¥ 295,113¥ 295,113

Non-consolidated VIEs

At March 31, 2024:

On-balance sheet
liabilities

On-balance sheet assets

Total assets

Maximum
exposure

Tradingaccount
assets

Total

Investment
securities

All
other
assets

Loans

Total

All other
liabilities(in millions)
Asset-backed conduits¥ 39,009,182¥ 9,223,412¥ 7,284,351

Investment funds

140,717,674

7,385,746

4,757,037

Special purpose entities created forstructured financing

72,097,637

7,695,707

5,333,648

Repackaged instruments

10,205,539

5,144,654

5,004,762

Other96,343,162

4,594,025

3,234,286¥ 358,373,194¥ 34,043,544¥ 25,614,084

Total

¥

13,184¥ 2,147,351¥ 5,123,816

321,000

300,8033,719,748

92,261

61,114

1,683,889

2,592,589

261,745¥ 2,372,079

¥

—

¥

3,860

¥

3,860

415,486

16,172

16,172

5,134,955

45,318251,036251,036

497,156

231,128———

2,871,454

101,087

17,651

17,651¥ 5,101,857¥ 17,347,129¥ 793,019¥ 288,719¥ 288,719

Maximum exposure to loss on each type of entity is determined based on the carrying amount of any on-balance sheet assets andany off-balance sheet liabilities held, net of any recourse liabilities. Therefore, the maximum exposure to loss represents the maximum
loss the MUFG Group could possibly incur at each balance sheet date and does not reflect the likelihood of such a loss being incurred.
The difference between the amount of on-balance sheet assets and the maximum exposure to loss primarily comprises the remaining
undrawn commitments.

Analysis of Each Transaction Category
Asset-Backed Conduits
This category primarily comprises the following:Multi-Seller Conduits (MUFG-sponsored Asset-Backed Commercial Paper (“ABCP”) Conduits and Other ABCP Conduits)
The MUFG Group administers several conduits under asset-backed financing programs under which the conduits purchasefinancial assets, primarily trade accounts receivable, from the MUFG Group’s customers by issuing short-term financing instruments,
primarily commercial paper, to third-party investors. Under the asset-backed financing programs, the MUFG Group acts as an agent
for the conduits, which enter into agreements with the MUFG Group’s customers where the customers transfer financial assets to the
conduits in exchange for monetary consideration. The MUFG Group also underwrites commercial paper for the conduits that issecured by the assets held by them and provides program-wide liquidity and credit enhancement facilities to the conduits. The MUFG
Group receives fees related to the services it provides to the conduits and the program-wide liquidity and credit enhancement. The
MUFG Group considers itself to be the primary beneficiary of the multi-seller conduits because, as an agent and sponsor, the MUFG
Group has the power to direct activities of the conduits that most significantly impact the conduits’ economic performance and also
has the obligation to absorb losses of the conduits that could potentially be significant to the conduits through the program-wide
liquidity and credit enhancement. Consequently, the MUFG Group consolidates the conduits.
In addition to the entities described above, the MUFG Group participates as a provider of financing to several conduits that areadministered by third parties. Most of these conduits are established under a multi-seller asset-backed financing program and the
MUFG Group provides financing along with other financial institutions. With respect to these conduits, the MUFG Group is notconsidered as the primary beneficiary because the MUFG Group’s participation in the conduits is only to provide financing along with
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other third-party financial institutions and it does not have the power to direct the activities of the conduits. Consequently, the MUFG
Group does not consolidate the conduits.
Asset-Backed Conduits (MUFG-sponsored Asset-Backed Loan (“ABL”) Programs and Other Programs)
The MUFG Group administers several conduits under asset-backed financing programs where the MUFG Group provides
financing to fund the conduits’ purchases of financial assets, comprising primarily trade accounts receivable, from its customers. The
MUFG Group acts as an agent and sponsor for the conduits, which enter into agreements with the MUFG Group’s customers where
the customers transfer assets to the conduits in exchange for monetary consideration. In most cases, the MUFG Group is the soleprovider of financing that is secured by the assets held by the conduits. The MUFG Group considers itself to be the primary
beneficiary of the conduits because, as an agent and sponsor for the conduits, the MUFG Group has the power to direct activities of
the conduits, such as selection of the assets to be purchased and condition for purchases, and debt collection from the original obligors,that most significantly impact the conduits’ economic performance, and also has the obligation to absorb losses of the conduits that
could potentially be significant to the conduits through financing it provides. Consequently, the MUFG Group consolidates the
conduits.
In addition, the MUFG Group is involved with entities, which take in most cases the form of a trust, where originators offinancial assets, which primarily comprise lease receivables, entrust the assets with trust banks and receive beneficial certificates oftrusts in exchange. The originators then transfer the beneficiary certificates to the MUFG Group in exchange for cash. The originatorsof the financial assets entrusted continue to be involved in the assets as servicers. Because the originators are deemed to have thepower to direct activities of the entities that most significantly impact the entities’ economic performance through their role as aservicer, the MUFG Group is not considered as the primary beneficiary of these entities. Consequently, the MUFG Group does notconsolidate these entities.
The MUFG Group also participates as a provider of financing to the ABL programs that are managed by third parties. The
MUFG Group is not considered as the primary beneficiary of the entities used in these programs as the MUFG Group’s participationin the entities is only to provide financing along with other third parties and it does not have the power to direct the activities of theentities. Consequently, the MUFG Group does not consolidate the entities used in these programs.
Investment Funds
This category primarily comprises the following:
Corporate Recovery Funds
These entities are established by fund managers, which are unrelated to the MUFG Group, for the purpose of investing in debt orequity instruments issued by distressed companies. After investment, the fund managers work closely with the management of theentities and attempt to enhance corporate value by various means including corporate restructuring and reorganization. Their exit
strategies include, among others, sales to others and initial public offerings.
Typically, these entities take the form of a limited partnership which is entirely funded by general and limited partner interests.
These partnerships are considered as VIEs unless the limited partners hold substantive kick-out rights or participating rights.
The MUFG Group mostly serves as a limited partner in corporate recovery funds that are considered as VIEs, and does not havethe power to direct the activities of these funds that most significantly impact the economic performance of these funds. Therefore, the
MUFG Group does not consider itself to be the primary beneficiary of these funds and does not consolidate them.
Private Equity Funds
The MUFG Group is involved in venture capital funds that are established by either the MUFG Group’s entities or fundmanagers unrelated to the MUFG Group. These entities have specific investment objectives in connection with their acquisition ofequity interests, such as providing financing and other support to start-up businesses, medium and small entities in a particulargeographical area, and to companies with certain technology or companies in a high-growth industry.
These entities typically take the form of a limited partnership and usually are entirely funded by general and limited partnerinterests. These partnerships are considered as VIEs unless the limited partners hold substantive kick-out rights or participating rights.
The MUFG Group participates in these partnerships as a general partner or limited partner. The MUFG Group consolidates
these funds, which are considered as VIEs, if the MUFG Group has the power to direct the activities of these funds that mostF-103

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significantly impact the economic performance of these funds, and also has the obligation to absorb losses of these funds that could
potentially be significant to these funds or the right to receive benefits from these funds that could potentially be significant to thesefunds.
Investment Trusts
The MUFG Group invests in investment trusts that are professionally managed collective investment schemes which poolmoney from many investors and invest in, among others, equity and debt securities. Most of these funds take the form of a trust where
there is a separation in investment decisions, which is assumed by an investment manager who has no investment in a trust, andownership through beneficiary interests issued by a trust are owned by investors. Therefore, these investment trusts are considered as
VIEs. The MUFG Group consolidates these funds if the MUFG Group has the power to direct the activities of these funds that mostsignificantly impact the economic performance of these funds, and also has the obligation to absorb losses of these funds that could
potentially be significant to these funds or the right to receive benefits from these funds that could potentially be significant to thesefunds.
Buy-out Financing Vehicles
The MUFG Group provides financing to buy-out vehicles. The buy-out vehicles are established by equity investments from,among others, private equity funds or the management of target companies for the purpose of purchasing the equity shares of target
companies. Along with other financial institutions, the MUFG Group provides financing to the buy-out vehicles in the form of loans.
While the buy-out vehicles’ equity is normally substantive in its amount and the rights and obligations associated with it, in somecases, the vehicles have equity that is insufficient to absorb expected variability primarily because the amount provided by equity
investors is nominal in nature. These vehicles engage in non-investment activities, and are considered as VIEs. In most cases, the
MUFG Group’s participation in these vehicles is only to provide financing to the vehicles, and the power to direct the activities thatmost significantly impact the economic performance of the vehicles is held by the management of target companies. As a result, the
MUFG Group is not considered as the primary beneficiary of these vehicles and does not consolidate them.
Special Purpose Entities Created for Structured Financing
This category primarily comprises the following:
Leasing Transaction Vehicles
These entities are established to raise funds to purchase or build equipment and machinery including, among others, commercial
vessels, passenger and cargo aircraft, and production equipment for the purpose of leasing them to lessees who use the equipment andmachinery as part of their business operations. These entities typically take the form of a limited partnership or a special purpose
company where they fund their purchases of equipment and machinery via senior and subordinate financing. When entities take theform of a limited partnership, these entities are considered as VIEs unless limited partners hold substantive kick-out rights orparticipating rights. The entities considered as VIEs are typically funded only by senior financing or there is a guarantee provided tothe senior financing by parties unrelated to those providing the senior financing. In most cases, the MUFG Group participates in thesenior financing and does not participate in the subordinate financing or provide guarantees. Generally, because the MUFG Group’s
participation in these entities is only to provide financing, it does not have the power to direct the activities of the entities that mostsignificantly impact the economic performance of the entities. Therefore, the MUFG Group does not consider itself to be the primary
beneficiary of these entities and does not consolidate them, except for limited circumstances where the MUFG Group is directly
involved with the structuring of the transaction and has the power to direct the activities of the entities that most significantly impact
the economic performance of the entities.
Project Financing Vehicles
These entities are established to raise funds in connection with, among others, production of natural resources, construction anddevelopment of urban infrastructure (including power plants and grids, highways and ports), and the development of real estate
properties or complexes. These projects typically involve special purpose companies which issue senior and subordinate financing toraise funds in connection with the various projects. The subordinate financing is usually provided by parties that will ultimately makeuse of the assets constructed or developed. By contrast, the senior financing is typically provided by financial institutions, including
the MUFG Group. Because the MUFG Group’s participation in these entities is only to provide financing, it does not have the power
to direct the activities that most significantly impact the economic performance of these entities. Therefore, the MUFG Group is notconsidered as the primary beneficiary of these entities and does not consolidate them.
Sale-and-Leaseback Vehicles
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The MUFG Group is involved with vehicles that acquire assets, primarily real estate, from the MUFG Group’s customers andother unrelated parties where the sellers of the assets continue to use the assets through leaseback agreements. These vehicles typicallytake the form of a limited partnership, and are considered as VIEs unless the limited partners hold substantive kick-out rights orparticipating rights. The subordinated financing of these vehicles considered as VIEs is usually provided by the sellers of the assets,with the MUFG Group providing senior financing for the vehicles. Because the MUFG Group’s participation in these vehicles is only
to provide senior financing, it does not have the power to direct the activities that most significantly impact the economic performanceof these vehicles. Therefore, the MUFG Group is not considered as the primary beneficiary and does not consolidate them.
Securitization of Client Real Estate Properties
These entities are established for the purpose of securitizing real estate properties held by the MUFG Group’s customers. In
most cases, these entities take the form of a limited partnership or a special purpose company. When entities take the form of a limited
partnership, these entities are considered as VIEs unless the limited partners hold substantive kick-out rights or participating rights.
The entities considered as VIEs are typically funded by senior and subordinated financing where the original owners of the real estate
properties provide the subordinated financing, primarily in the form of partnership interests or subordinated notes, and financial
institutions, including the MUFG Group, provide senior financing in the form of senior loans. Because the MUFG Group’s
participation in these vehicles is only to provide a portion of senior financing, it does not have the power to direct the activities thatmost significantly impact the economic performance of these entities. Therefore, the MUFG Group is not considered as the primary
beneficiary and does not consolidate these entities.
Repackaged Instruments
This category primarily comprises the following:
Investments in Financially-Engineered Products
The MUFG Group is involved in special purpose entities that have been established to issue financial products through theengineering and repackaging of existing financial instruments such as collateralized debt obligations (“CDOs”). These entities are
considered as VIEs because the holders of the equity investment at risk do not have the power to direct the activities that mostsignificantly impact their economic performance. These entities are generally arranged and managed by parties that are not related to
the MUFG Group. The MUFG Group’s involvement with the entities arranged and managed by third parties is for investment
purposes. In these cases, the MUFG Group participates as one of many other investors and the MUFG Group typically holds
investments in senior tranches or tranches with high credit ratings. Therefore, the MUFG Group does not have the power to direct
activities of the entities that most significantly impact the entities’ economic performance, and thus is not considered as the primary
beneficiary of these entities and does not consolidate these entities.
In certain instances, special purpose entities have been established and are managed by the MUFG Group. The MUFG Group’s
involvement includes establishing and arranging the transaction and underwriting securities issued by the entities to general investors.
For these entities, the MUFG Group has the power to direct activities that most significantly impact the economic performance and it
has the obligation to absorb losses or receive benefits that could potentially be significant to the entities. As such, the MUFG Groupconsiders itself as the primary beneficiary of these entities and consolidates them.
Investments in Securitized Financial Instruments
The MUFG Group holds investments in special purpose entities that issue securitized financial products. The assets held by theentities include credit card receivables and residential mortgage loans. These entities are established and managed by parties that are
unrelated to the MUFG Group and the MUFG Group’s involvement with these entities is for its own investment purposes. In all cases,
the MUFG Group participates as one of many other investors and the MUFG Group does not have the power to direct activities of theentities that most significantly impact the entities’ economic performance. Therefore, the MUFG Group is not considered as theprimary beneficiary of these entities and does not consolidate them.
Securitization of the MUFG Group’s Assets
This category primarily comprises the following:
Securitization for issuing interests or financing
The MUFG Group establishes entities to securitize its own financial assets that include, among others, corporate and retail loans
and lease receivables. The entities used for securitization, which typically take the form of a special purpose company or a trust, are
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established by the MUFG Group and, in most cases, issue senior and subordinate interests or financing. After securitization, the
MUFG Group typically continues to service securitized assets as a servicer. The MUFG Group may also retain subordinate interests orfinancing or other interests. The MUFG Group is considered as the primary beneficiary and consolidates the entities used for
securitization since it has the obligation to absorb losses through subordinate interests, and also has the power for determining andimplementing policies as servicer that give it the ability to manage the entities’ assets that become delinquent or are in default in orderto improve the economic performance of the entities.
Eligible beneficiary interests in housing loan trusts
The MUFG Group establishes trusts, which acquire the MUFG Group’s housing loans and in turn issue beneficiary interests to
the MUFG Group, to pledge these beneficiary interests as collateral for borrowings from the Bank of Japan, as a result of the decisionby the Bank of Japan on June 30, 2016 to accept these beneficial interests as collateral in the same way as it does for Japanese national
government bonds. The MUFG Group is considered as the primary beneficiary and consolidates the trusts since it has the obligation toabsorb losses through beneficiary interests, and also has the power for determining and implementing policies as servicer that give it
the ability to manage housing loans owned by the trusts that become delinquent or are in default in order to improve the economic
performance of the trusts.
Trust Arrangements
The MUFG Group offers, primarily through Mitsubishi UFJ Trust and Banking, a variety of trust products and services
including securities investment trusts, pension trusts and trusts used as securitization vehicles. In a typical trust arrangement, however,the MUFG Group manages and administers assets on behalf of the customers in an agency, fiduciary and trust capacity and does notassume risks associated with the entrusted assets. The trusts are generally considered as VIEs because the trust beneficiaries, whoprovide all of the equity at risk, usually do not have power to direct the activities that most significantly impact its economic
performance in the arrangements. The MUFG Group, however, is not considered as the primary beneficiary, mainly, except for thecase mentioned below, because it merely receives fees for compensation for its services on terms that are customary for these activities
and the fees are insignificant relative to the total amount of the trusts’ economic performance and variability. Therefore, the MUFG
Group does not consolidate these entities.
With respect to the jointly operated designated money in trusts, Mitsubishi UFJ Trust and Banking pools money from investors
and determines how best to invest it. In addition, certain investors, such as money reserve funds and investment funds, place excess
funds in the jointly operated designated money trusts. Mitsubishi UFJ Trust and Banking typically invests in high-quality financial
assets, including government bonds, corporate bonds and corporate loans including loans to Mitsubishi UFJ Trust and Banking andreceives fees as compensation for services. In this role as a sponsor of these trusts’ Mitsubishi UFJ Trust and Banking provides
guarantees under which it is required to compensate a loss on the stated principal of the trust beneficial interests. Mitsubishi UFJ Trustand Banking is considered as the primary beneficiary of these trusts’ because it is exposed to a potentially significant amount of losses
and also has the power to direct activities of these trusts’ that most significantly impact their economic performance. Upon
consolidation of the trusts, the certificates issued to the investors are accounted for as deposit liabilities as the products are structured
and marketed to customers similar to Mitsubishi UFJ Trust and Banking’s term deposit products.
Mitsubishi UFJ Trust and Banking considers the likelihood of incurring losses on the stated principal guarantee to be highly
remote. In the trusts’ operational history that extends over decades, the stated principal guarantee has never been called upon. The
variability in fair value of the net assets of the trusts has been primarily affected by the fluctuations in interest rates, and the majorityof such variability has been absorbed by investors or trust beneficiaries.
Other
This category primarily comprises the following:
Financing Vehicles of the MUFG Group’s Customers
The MUFG Group is involved with several entities that are established by the MUFG Group’s customers. These entities borrowfunds from financial institutions and extend loans to their group entities. These entities effectively work as fund-raising vehicles fortheir respective group entities and enable the groups to achieve efficient financing by integrating their financing activities into a single
entity. In all cases, the MUFG Group is not considered as the primary beneficiary because the MUFG Group’s participation in these
entities is only to provide financing, and the customers effectively hold the power to direct activities of these entities that mostsignificantly impact the economic performance of the entities. Consequently, the MUFG Group does not consolidate these entities.

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Funding Vehicles
The MUFG Group has established several wholly-owned off-shore vehicles which issue securities, typically preferred stock thatis fully guaranteed by the MUFG Group, to investors unrelated to the MUFG Group to fund purchases of debt instruments issued by
the MUFG Group. These entities are considered as VIEs because the MUFG Group’s investment in the vehicles’ equity is notconsidered at risk and substantive as the entire amount raised by the vehicles was used to purchase debt instruments issued by the
MUFG Group. Because the MUFG Group does not have variable interests in these vehicles, the MUFG Group does not consolidate
these entities.
Troubled Borrowers
During the normal course of business, the borrowers from the MUFG Group may experience financial difficulties andsometimes enter into certain transactions that require the MUFG Group to assess whether they would be considered as VIEs due totheir difficult financial position. While in most cases such borrowers are not considered as VIEs when the transactions take place, inlimited circumstances they are considered as VIEs due to insufficient equity investment at risk. In all cases, the MUFG Group is notconsidered as the primary beneficiary because the power to direct activities that most significantly impact the economic performanceof the troubled borrowers resides with the management of the troubled borrowers, and the MUFG Group, as a lender, does not havepower over or assume any role in management. Therefore, the MUFG Group does not consolidate these troubled borrowers.
26.

CONTINGENT LIABILITIES

Repayment of Excess Interest
The MUFG Group maintains an allowance for repayment of excess interest based on an analysis of past experience of
reimbursement of excess interest, borrowers’ profile, recent trend of borrowers’ claims for reimbursement, and management futureforecasts. Management believes that the provision for repayment of excess interest is adequate and the allowance is at the appropriate
amount to absorb probable losses, so that the impact of future claims for reimbursement of excess interest will not have a material
adverse effect on the MUFG Group’s financial position and results of operations. The allowance for repayment of excess interest
established by MUFG’s consumer finance subsidiaries, which was included in Other liabilities, was ¥12,113 million and ¥7,073
million as of March 31, 2023 and 2024, respectively. Provision (reversal) related to the allowance is included in Other non-interest
expenses in the accompanying consolidated statements of operations. For the fiscal years ended March 31, 2022, 2023 and 2024, there
was a negative impact of ¥23,332 million, nil and nil, respectively, on Equity in earnings of equity method investees—net in theaccompanying consolidated statements of operations.
Litigation
In the ordinary course of business, the MUFG Group is subject to various litigation and regulatory matters. In accordance withapplicable accounting guidance, the MUFG Group establishes an accrued liability for loss contingencies arising from litigation andregulatory matters when they are determined to be probable in their occurrence and the probable loss amount can be reasonably
estimated. Based upon current knowledge and consultation with counsel, management believes the eventual outcome of such litigation
and regulatory matters, where losses are probable and the probable loss amounts can be reasonably estimated, would not have amaterial adverse effect on the MUFG Group’s financial position, results of operations or cash flows. Additionally, management
believes the amount of loss that is reasonably possible, but not probable, from various litigation and regulatory matters is not material
to the MUFG Group’s financial position, results of operations or cash flows.

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27.

FEES AND COMMISSIONS INCOME

Disaggregation of Contract Revenue
Details of fees and commissions income for the fiscal years ended March 31, 2022, 2023 and 2024 were as follows:
2022

2023

2024

(in millions)

Fees and commissions on deposits
Fees and commissions on remittances and transfers
Fees and commissions on foreign trading business
Fees and commissions on credit card business
Fees and commissions on security-related services
Fees and commissions on administration and management services for investment
funds
Trust fees
Guarantee fees(1)Insurance commissions
Fees and commissions on real estate business
Other fees and commissions(2)
Total

¥

¥

51,032 ¥157,236
56,344207,080
264,530

49,785 ¥147,582
69,010230,386
224,900

36,703
151,663
74,485251,025
278,502

286,549

282,282

317,323

133,32245,84942,35365,611
348,957
1,658,863 ¥

131,069
47,98649,42068,407400,8101,701,637 ¥

129,393
51,16764,66568,439475,609
1,898,974

Notes:(1) Guarantee fees are not within the scope of the guidance on revenue from contracts with customers.
(2) Other fees and commissions include non-refundable financing related fees that are not within the scope of the guidance onrevenue from contracts with customers.
The following is an explanation of the relationship with revenue information disclosed for each reportable segment.
These revenues from contracts with customers are related to various reportable segments disclosed in Note 29. The businesssegment information is derived from the internal management reporting system used by management to measure the performance ofthe MUFG Group’s business segments. In addition, the business segment information is primarily based on the financial information
prepared in accordance with Japanese GAAP as adjusted in accordance with internal management accounting rules and practices.
Further, the format and information as disclosed in Note 29 are not consistent with the accompanying consolidated financial
statements prepared on the basis of U.S. GAAP. For example, management does not use information on segments’ gross revenue toallocate resources and assess performance.
The majority of fees and commissions on deposits are attributable to Digital Service Business Group (“DS”) and Global
Commercial Banking Business Group (“GCB”) with no significant concentration in any particular segments.
The business activities relevant to fees and commissions on remittances and transfers are attributable to DS, Retail &Commercial Banking Business Group (“R&C”), Japanese Corporate Investment Banking Business Group (“JCIB”) and Global
Corporate Investment Banking Business Group (“GCIB”) with no significant concentration in any particular segments.
The business activities relevant to fees and commissions on foreign trading business are attributable to DS, R&C, JCIB and
GCIB with no significant concentration in any particular segments.
The business activities relevant to fees and commissions on credit card business are substantially attributable to DS and GCB
with no significant concentration in any particular segments.
The majority of fees and commissions on security-related services are from the business activities relevant to R&C, with JCIB
and GCIB providing a smaller impact.
The business activities relevant to fees and commissions on administration and management services for investment funds aresubstantially attributable to Asset Management & Investor Service Business Group (“AM/IS”).
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The business activities relevant to trust fees are attributable to R&C, JCIB, and AM/IS with no significant concentration in any
particular segments.
The majority of insurance commissions are from the business activities relevant to DS, R&C, JCIB, and GCB with nosignificant concentration in any particular segments.
The business activities relevant to fees and commissions on real estate business are attributable to R&C and JCIB with nosignificant concentration in any particular segments.
28.

TRADING ACCOUNT PROFITS AND LOSSESThe MUFG Group performs trading activities through market-making, sales and arbitrage, while maintaining risk levels withinappropriate limits in accordance with its risk management policy.
The MUFG Group has trading account securities and trading derivative assets and liabilities for this purpose. In addition, thetrading account securities include foreign currency-denominated debt securities such as foreign government or official institution
bonds, corporate bonds and mortgage-backed securities, which are mainly comprised of securities measured at fair value under the fairvalue option.
Net trading losses for the fiscal years ended March 31, 2022, 2023 and 2024 were comprised of the following:
2022

2023

2024

(in millions)Interest rate and other derivative contracts
Trading account securities, excluding derivatives
Trading account losses—net
Foreign exchange derivative contracts(1)Net trading losses¥¥(102,122) ¥(722,298)(824,420)(44,693)(869,113) ¥238,162 ¥(1,030,260)(792,098)
57,914(734,184) ¥(947,069)
248,020(699,049)(406,744)(1,105,793)

Note:(1) Gains (losses) on foreign exchange derivative contracts are included in Foreign exchange gains (losses)—net in the accompanying
consolidated statements of operations. Foreign exchange gains (losses)—net in the accompanying consolidated statements ofoperations are also comprised of foreign exchange losses other than derivative contracts and foreign exchange gains related to thefair value option.
For further information on the methodologies and assumptions used to estimate fair value, see Note 31, which also shows fairvalues of trading account securities by major category. Note 23 discloses further information regarding the derivative-related impact
on Trading account losses—net by major category.
29.

BUSINESS SEGMENTS

The reportable segments of the MUFG Group are subject to the periodical review by the Executive Committee, which represents
the MUFG Group’s chief operating decision maker, to determine the allocation of management resources and assess performance. The
MUFG Group has established its business units according to the characteristics of customers and the nature of the underlying business.
Each business unit engages in business activities based on comprehensive strategies developed for and aimed at respective targetedcustomers and businesses. The business segment information is primarily based on the financial information prepared in accordancewith Japanese GAAP as adjusted in accordance with internal management accounting rules and practices. Accordingly, the format andinformation are not consistent with the accompanying consolidated financial statements prepared on the basis of U.S. GAAP. A
reconciliation is provided for the total amounts of segments’ operating profit with income before income tax expense under U.S.
GAAP. The MUFG Group does not use information on the segments’ total assets to allocate its resources and assess performance.
Accordingly, business segment information on total assets is not presented. However, in order to ensure more efficient management of
resources, and to strengthen controls on profits and losses in each business group, the MUFG Group allocates fixed assets of both
MUFG Bank on a stand-alone basis and Mitsubishi UFJ Trust and Banking on a stand-alone basis to each business unit. Accordingly,
such fixed assets allocated to business groups are presented below.
See Note 30 for financial information relating to the MUFG Group’s operations by geographic area. The geographic financial
information is consistent with the basis of the accompanying consolidated financial statements.
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The MUFG Group integrated the operations of its consolidated subsidiaries into seven business segments.—Digital Service,
Retail & Commercial Banking, Japanese Corporate & Investment Banking, Global Commercial Banking, Asset Management &Investor Services, Global Corporate & Investment Banking, and Global Markets.
The following is a brief explanation of the MUFG Group’s business segments:
Digital Service Business Group—Covers digital-based non-face-to-face businesses servicing “mass-segment” customers, or
retail customers and small and medium-sized enterprise customers, of Mitsubishi UFJ NICOS, other consumer finance companies, andMUFG Bank in Japan.
Retail & Commercial Banking Business Group—Covers the domestic retail and commercial banking businesses. This businessgroup mainly offers retail customers (with a strategic focus on high net-worth individuals) and small and medium-sized enterprisecustomers in Japan an extensive array of commercial banking, trust banking and securities products and services.
Japanese Corporate & Investment Banking Business Group—Covers the large Japanese corporate businesses. This businessgroup offers large Japanese corporations advanced financial solutions designed to respond to their diversified and globalized needs
and to contribute to their business and financial strategies through the global network of the MUFG group companies.
Global Commercial Banking Business Group—Covers the retail and commercial banking businesses of Krungsri and Bank
Danamon. This business group offers a comprehensive array of financial products and services such as loans, deposits, fund transfers,
investments and asset management services for local retail, small and medium-sized enterprise, and corporate customers across the
Asia-Pacific region.
Asset Management & Investor Services Business Group—Covers the asset management and asset administration businesses ofMitsubishi UFJ Trust and Banking, MUFG Bank and First Sentier Investors. By integrating the trust banking expertise of Mitsubishi
UFJ Trust and Banking and the global strengths of MUFG Bank, the business group offers a full range of asset management andadministration services for corporations and pension funds, including pension fund management and administration, advice on pension
structures, and payments to beneficiaries, and also offers investment trusts for retail customers.
Global Corporate & Investment Banking Business Group—Covers the global corporate, investment and transaction banking
businesses of MUFG Bank and Mitsubishi UFJ Securities Holdings. Through a global network of offices and branches, this businessgroup provides large non-Japanese corporate and financial institution customers outside Japan with a comprehensive set of solutions
that meet their increasingly diverse and sophisticated financing needs.
Global Markets Business Group—Covers the customer business and the treasury operations of MUFG Bank, Mitsubishi UFJ
Trust and Banking and Mitsubishi UFJ Securities Holdings. The customer business includes sales and trading in fixed income
instruments, currencies, equities and other investment products as well as origination and distribution of financial products. The
treasury operations include asset and liability management as well as global investments for the MUFG Group.
Other—Consists mainly of the corporate centers of MUFG, MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi
UFJ Morgan Stanley Securities. The elimination of duplicated amounts of net revenues among business segments is also reflected in
Other.
The MUFG Group made modifications to its internal management accounting rules and practices, effective April 1, 2023,
including reallocation of indirect expenses to the Retail & Commercial Banking Business Group from the Digital Service BusinessGroup as well as updates to internal booking rules relating to net revenue in the customer business groups. Corresponding adjustments
were booked in Other. There was no impact of these modifications on the Global Commercial Banking Business Group and the AssetManagement & Investor Services Business Group.
These changes had the following impact on its previously reported business segment information for the fiscal year ended
March 31, 2023:•

increasing the operating profits of the Digital Service Business Group and the Global Corporate & Investment Banking
Business Group by ¥6.3 billion and ¥1.8 billion, respectively, and•reducing the operating profits of the Japanese Corporate & Investment Banking Business Group, the Global Markets
Business Group and the Retail & Commercial Banking Business Group by ¥4.4 billion, ¥2.0 billion and ¥1.7 billion,
respectively.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Prior period business segment information has been restated to enable comparison between the relevant amounts for the fiscal
years ended March 31, 2022, 2023 and 2024.
Customer Business

DigitalServiceBusinessGroup

Retail &Commercial
Banking
Business
Group

Japanese
Corporate&
Investment
Banking
BusinessGroup

GlobalCommercial
Banking
Business
Group

Asset
Management& Investor
Services
BusinessGroup

GlobalCorporate &Investment
Banking
Business
Group

Total

GlobalMarkets
Business
Group

Other

Total

(in billions)Fiscal year ended March 31,
2022:
Net revenue:

¥

540.1

¥3,610.1¥ 427.0¥ 11.3¥ 4,048.4

257.2

390.3

496.8

1.9

106.3

362.2

1,614.7

203.4

53.2

1,871.3

Net interest income

218.0

160.8

210.7

2.1

9.3

171.6

772.5

231.5

148.6

1,152.6

Net fees

36.0

203.0

212.7

—

97.0

174.0

722.7

(8.7)

(57.4)

656.6

Other

3.2

26.5

73.4

(0.2)

—

16.6

119.5

(19.4)(38.0)

62.1

484.4

194.3

126.4

769.8

242.6

177.9

1,995.4

223.6(41.9)

2,177.1

127.6

2,816.0

BK and TB(1):Other than BK and TB
Operating expenses

741.6

¥

558.9

584.6

¥

490.9

623.2

¥

320.9

771.7

¥

528.0

348.9

¥

295.3

2,435.4

253.0

Operating profit (loss)

¥

182.7

¥

93.7

¥

302.3

¥

243.7

¥

241.4
107.5

¥

244.8

¥1,174.7¥ 174.0¥ (116.3) ¥ 1,232.4

Fixed assets(2)

¥

140.6

¥

191.7

¥

155.8

¥

1.0

¥

13.3

¥

133.0

¥ 635.4¥ 108.4¥ 550.3

¥

748.1

¥

614.5

¥

800.9

¥

870.6

¥

360.8

¥

¥

¥ 1,294.1

Fiscal year ended March 31,
2023:
Net revenue:

712.6¥4,107.5¥ 409.1

251.9

430.1

645.5

35.1

105.4

532.3

2,000.3

130.8

19.5

2,150.6

Net interest income

214.1

192.4

342.5

35.7

9.4

260.2

1,054.3

710.6

89.7

1,854.6

Net fees

34.9

199.0

228.3

—

96.0

243.2

801.4

(16.6)(48.3)

736.5

Other

2.9

38.7

74.7

(0.6)

—

28.9

144.6

(563.2)(21.9)(440.5)

496.2

184.4

155.4

835.5

255.4

180.3

2,107.2

278.3(20.3)

2,365.2

527.4

458.9

330.7

580.3

255.7

334.8

2,487.8

274.0

176.4

2,938.2

BK and TB(1):Other than BK and TB
Operating expenses(0.8) ¥ 4,515.8

Operating profit (loss)

¥

220.7

¥

155.6

¥

470.2

¥

290.3

¥

105.1

¥

377.8

¥1,619.7¥ 135.1¥ (177.2) ¥ 1,577.6

Fixed assets(2)

¥

156.9

¥

201.9

¥

161.2

¥

1.1

¥

18.8

¥

171.2

¥ 711.2¥ 110.6¥ 546.3¥ 1,368.1

Increase in fixed assets(3)

¥

37.0

¥

41.9

¥

37.1

¥

0.6

¥

11.6

¥

23.4

¥ 151.5¥

23.2¥ 34.2¥ 208.9

Depreciation(3)

¥

10.6

¥

21.1

¥

36.6

¥

0.2

¥

6.0

¥

35.2

¥ 109.8¥

28.3¥ 19.5¥ 157.6

¥

782.5

¥

¥

685.0

¥

432.3

¥

Fiscal year ended March 31,
2024:
Net revenue:

709.4¥ 1,013.7

863.1¥4,486.0¥ 323.4

253.1

492.5

829.5

29.3

118.6

781.0

2,504.0

21.8

40.2

2,566.0

Net interest income

213.0

232.7

501.1

29.3

14.7

413.8

1,404.6

113.2

99.1

1,616.9

Net fees

37.7

213.0

233.5

—

103.8

328.8

916.8

(15.0)(16.4)

885.4

Other

2.4

46.8

94.9

—

0.1

38.4

182.6

(76.4)(42.5)

63.7

529.4

216.9

184.2

655.7

313.7

82.1

1,982.0

301.6(77.8)

2,205.8

536.6

464.0

343.9

382.9

307.3

361.4

2,396.1

300.0

232.8

2,928.9

BK and TB(1):Other than BK and TB
Operating expenses¥ (37.6) ¥ 4,771.8

Operating profit (loss)

¥

245.9

¥

245.4

¥

669.8

¥

302.1

¥

125.0

¥

501.7

¥2,089.9¥

Fixed assets(2)

¥

186.8

¥

228.6

¥

169.2

¥

1.6

¥

21.2

¥

170.9

¥ 778.3¥ 114.3¥ 502.3¥ 1,394.9

Increase in fixed assets(3)

¥

38.6

¥

47.1

¥

46.1

¥

0.4

¥

11.5

¥

32.5

¥ 176.2¥

28.2¥ 29.3¥ 233.7

Depreciation(3)

¥

14.7

¥

24.6

¥

42.1

¥

0.2

¥

9.1

¥

42.1

¥ 132.8¥

32.5¥ 16.3¥ 181.6

23.4¥ (270.4) ¥ 1,842.9

Notes:(1) “BK and TB” is a sum of MUFG Bank on a stand-alone basis (BK) and Mitsubishi UFJ Trust and Banking on a stand-alone basis(TB).
(2) Fixed assets in the above table are based on the financial information prepared in accordance with Japanese GAAP as adjusted inaccordance with internal management accounting rules and practices, and the amounts correspond to premises and equipment-net,
intangible assets-net and goodwill of BK and TB. Fixed assets of MUFG and other consolidated subsidiaries and Japanese GAAP
consolidation adjustments amounting to ¥1,286.1 billion as of March 31, 2022, ¥1,210.2 billion as of March 31, 2023 andF-111

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)¥1,505.4 billion as of March 31, 2024, respectively, are not allocated to each business segment when determining the allocation ofmanagement resources and assessing performance and, therefore, such amounts are not included in the table above.
(3) These amounts are related to the fixed assets of BK and TB included in the table above.
Reconciliation
As set forth above, the measurement basis and the income and expense items of the internal management reporting system are
different from the accompanying consolidated statements of operations. Therefore, it is impracticable to present reconciliations of allof the business segments’ information, other than operating profit, to corresponding items in the accompanying consolidated
statements of operations.
A reconciliation of operating profit and fixed assets under the internal management reporting system for the fiscal years ended
March 31, 2022, 2023 and 2024 above to income before income tax expense shown in the accompanying consolidated statements ofoperations and the total amount of premises and equipment-net, intangible assets-net and goodwill are as follows:
2022

2023
(Restated)2024(in billions)Operating profit:
Provision for credit losses
Trading account losses—net
Equity investment securities gains (losses)—net
Debt investment securities gains—net
Foreign exchange losses—net
Equity in earnings of equity method investees—net
Impairment of goodwill
Impairment of intangible assets
Provision for off-balance sheet credit instruments
Reversal of impairment (impairment) of assets held for sale
Loss on valuation adjustment for loans held for sale held by MUFG UnionBank
Gain on sale of MUFG Union Bank
Loss on pension buyout
Other—net
Income (loss) before income tax expense (benefit)
Fixed assets:
U.S. GAAP adjustments and otherPremises and equipment-net, Intangible assets-net and Goodwill
30.

¥

¥
¥
¥

1,232 ¥
(278)
(1,174)
(109)
139
(9)
437
—
(33)
(46)
(134)

1,578 ¥
(8)
(1,385)
(139)
517
(33)
398
(34)
(5)
(21)
134

1,843
(238)
(1,067)
1,449
297
(427)
464
—
(15)
(33)
—

(3)
—
—
(81)
(59) ¥
1,294 ¥
974
2,268 ¥

(283)
349
(84)
(536)
448 ¥
1,368 ¥
964
2,332 ¥

—
—
—
(390)
1,883
1,395
1,267
2,662

FOREIGN ACTIVITIESForeign operations include the business conducted by overseas offices, as well as international business conducted fromdomestic offices, principally several international banking-related divisions of MUFG Bank’s and Mitsubishi UFJ Trust andBanking’s head office in Tokyo, and involve various transactions with debtors and customers residing outside Japan. Close integrationof the MUFG Group’s foreign and domestic activities makes precise estimates of the amounts of assets, liabilities, income andexpenses attributable to foreign operations difficult and necessarily subjective. Assets, income and expenses attributable to foreign
operations are allocated to geographical areas based on the domicile of the debtors and customers.
Generally, interest rates with respect to funds borrowed and loaned between domestic and foreign operations are based onprevailing money market rates appropriate for the transactions. In general, the MUFG Group has allocated all direct expenses and a
proportionate share of general and administrative expenses to income derived from foreign loans and other transactions by the MUFG
Group’s foreign operations. The following table sets forth estimated total assets at March 31, 2022, 2023 and 2024, and estimated total

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
revenue, total expense, income (loss) before income tax expense (benefit) and net income (loss) attributable to Mitsubishi UFJ
Financial Group for the respective fiscal years then ended:
Domestic

Foreign
UnitedStates ofAmerica

Japan

Total

Asia/
Oceania
excludingJapan

EuropeOther
areas(1)(in millions)Fiscal year ended March 31, 2022:
Total revenue(2)¥Total expense(3)2,160,509¥

500,590¥

67,687¥975,340¥

221,601¥

3,925,727

2,198,650

666,564

311,639

726,042

81,5593,984,454

Income (loss) before income tax expense (benefit)(38,141)(165,974)(243,952)

249,298

140,042(58,727)

Net income (loss) attributable to Mitsubishi UFJ Financial Group

(7,380)(498,205)(344,044)

506,621259,688(83,320)

246,637,054

54,576,602

22,319,350

31,909,321

12,207,691

367,650,018

2,617,973¥ 1,319,244¥

173,013¥ 1,479,618¥

2,074,369

1,621,492

370,130

1,282,806

301,3015,650,098

Income (loss) before income tax expense (benefit)

543,604(302,248)(197,117)

196,812207,171448,222

Net income (loss) attributable to Mitsubishi UFJ Financial Group

616,243(110,235)(246,138)

9,074

107,691

376,635

249,539,149

59,695,647

24,675,334

34,452,071

13,373,532

381,735,733¥¥

Total assets at end of fiscal year(4)Fiscal year ended March 31, 2023 (Restated):
Total revenue(2)¥Total expense(3)Total assets at end of fiscal year

508,472¥

6,098,320

Fiscal year ended March 31, 2024:
Total revenue(2)3,824,204¥ 2,579,150

594,053¥ 2,026,469

Total expense(3)2,695,953

2,214,010

690,299

1,784,126707,675

8,092,063

Income (loss) before income tax expense (benefit)

1,128,251

365,140(96,246)

242,343

243,106

1,882,594

929,638

442,036(249,528)(44,115)250,090

1,328,121

257,570,207

61,265,784

23,577,515

39,097,955

15,925,000

397,436,461

Net income (loss) attributable to Mitsubishi UFJ Financial Group
Total assets at end of fiscal year¥

950,781¥9,974,657

Notes:(1) Other areas primarily include Canada, Latin America, the Caribbean and the Middle East.
(2) Total revenue is comprised of Interest income and Non-interest income.
(3) Total expense is comprised of Interest expense, Provision for credit losses and Non-interest expense.
(4) Total assets at the fiscal year ended March 31, 2022 in this table includes those relating to financial assets and liabilities oftransferred business of MUFG Union Bank. See Note 2 for more information.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following is an analysis of certain asset and liability accounts related to foreign activities at March 31, 2023 and 2024:
2023

2024
(in millions)

Cash and due from banks
Interest-earning deposits in other banks
Total
Trading account assets
Investment securities
Loans—net of unearned income, unamortized premiums and deferred loan fees
Deposits
Funds borrowed:
Call money, funds purchased
Payables under repurchase agreements
Payables under securities lending transactions
Other short-term borrowings
Long-term debt
Total
Trading account liabilities
31.

¥
¥
¥
¥
¥
¥
¥

738,30917,518,035
18,256,344
31,158,079
11,456,886
50,981,148
52,278,932¥

18,088
10,730,611
54,985¥

5,058,454
1,530,782¥ 17,392,920¥ 8,611,974

¥
¥
¥
¥
¥

688,020
12,701,980
13,390,000
32,450,982
12,869,037
57,457,037
63,114,752
3,061
13,531,043
90,061

6,380,759
1,666,451¥ 21,671,375¥ 8,598,192

FAIR VALUE

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The guidance on fair value measurements also specifies a fair value hierarchy
that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives thehighest priority to quoted prices in active markets and the lowest priority to unobservable inputs, for example, the reporting entity’s
own data. Based on the observability of the inputs used in the valuation techniques, the following three-level hierarchy is specified by
the guidance:•

Level 1—Unadjusted quoted prices for identical instruments in active markets.

•

Level 2—Observable inputs other than Level 1 prices for substantially the full term of the instruments, such as quoted prices
for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active;
other inputs that are observable; or market-corroborated inputs.

•

Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value ofthe instruments.

A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant
to the fair value measurement.
The tables in this note except for Estimated Fair Value of Financial Instruments include the portion of the assets and liabilities
held for sale.
The MUFG Group has an established and documented process for determining fair values in accordance with the guidance.
When available, quoted prices are used to determine fair value. If quoted prices are not available, fair value is based upon valuation
techniques that use observable or unobservable inputs. The fair values of liabilities are determined by discounting future cash flows at
a rate which incorporates the MUFG Group’s own creditworthiness. In addition, valuation adjustments may be made to ensure thefinancial instruments are recorded at fair value. These adjustments include, but are not limited to, amounts that reflect counterparty
credit quality, funding cost, liquidity risk and model risk.
The following section describes the valuation techniques used by the MUFG Group to measure fair values of certain financial
instruments. The discussion includes the general classification of such financial instruments in accordance with the fair value
hierarchy, a brief explanation of the valuation techniques, the significant inputs to those valuation techniques, and any additionalsignificant assumptions.
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Trading Account Assets and Liabilities—Trading Account Securities
When quoted prices are available in an active market, the MUFG Group uses quoted prices to measure the fair values of
securities and such securities are classified in Level 1 of the fair value hierarchy. Examples of Level 1 securities include certain
Japanese and foreign government bonds, and marketable equity securities.
When quoted prices are available but the securities are not traded in active markets, such securities are classified in Level 2 ofthe fair value hierarchy. These securities include certain Japanese government agency bonds, Japanese prefectural and municipal
bonds, foreign government and official institution bonds, corporate bonds, residential mortgage-backed securities and equity
securities.
As for quoted prices provided by third-party vendors, independent price verification is performed by the MUFG group to
determine the quality and reliability of the data for fair value measurement purposes. As part of its independent price verification
procedures, the MUFG group obtains a sufficient understanding of the vendors’ pricing sources and valuation processes. Further, the
MUFG group performs internal price verification procedures to ensure that the quoted prices provided from the third-party vendors arereasonable. Such verification procedures include comparison of pricing sources and analysis of variances beyond certain thresholds.
When quoted prices are not available, the MUFG Group estimates fair values by using an internal model, quoted prices of
securities with similar characteristics or non-binding prices obtained from independent third parties. Such securities include certain
commercial paper, corporate bonds, asset-backed securities and residential mortgage-backed securities. For commercial paper, the
MUFG Group estimates fair value using discounted cash flows. The cash flows are estimated in accordance with the terms of contracts
and discounted using a discount rate based on the yield curve estimated from market interest rates appropriate to the securities.
Commercial paper is generally classified in Level 2 of the fair value hierarchy. For corporate bonds, the MUFG Group estimates fairvalue using discounted cash flows. The cash flows are estimated in accordance with the terms of contracts and discounted using
discount rates applicable to the maturity of the bonds, which are adjusted to reflect credit risk of issuers. Credit risk of issuers isreflected in the future cash flows being discounted by the interest rate applicable to the maturity of the bonds. Corporate bonds areclassified in either Level 1, Level 2 or Level 3 of the fair value hierarchy, depending primarily on the significance of the adjustments
to the unobservable input of credit worthiness. For residential mortgage-backed securities, the MUFG Group estimates fair value using
non-binding prices obtained from independent third parties. Residential mortgage-backed securities are classified as level 2 unlessotherwise significant unobservable input is used for the valuation.
When there is less liquidity for securities or significant inputs used in the fair value measurements are unobservable, suchsecurities are classified in Level 3 of the fair value hierarchy. Examples of such Level 3 securities include CLOs backed by general
corporate loans, which are classified in asset-backed securities. The fair value of CLOs is measured by weighing the estimated fairvalue amounts from the internal model and the non-binding quotes from the independent broker-dealers. The weight of the quotes
from independent broker-dealers is determined based on the result of inquiries with the broker-dealers to understand their basis of fairvalue calculation with consideration given to transaction volume. Key inputs to the internal model include projected cash flows
through an analysis of underlying loans, probability of default which incorporates market indices such as LCDX (which is an index ofloan credit default swaps), prepayment rates and discount rates reflecting liquidity premiums based on historical market data.
Trading Account Assets and Liabilities—Derivatives
Exchange-traded derivatives valued using quoted prices are classified in Level 1 of the fair value hierarchy. Examples of Level 1derivatives include stock futures index and interest rate futures. However, the majority of the derivative contracts entered into by the
MUFG Group are traded over-the-counter and valued using valuation techniques as there are no quoted prices for such derivatives.
The valuation techniques and inputs vary depending on the types and contractual terms of the derivatives. The principal valuation
techniques used to value derivatives include discounted cash flows, the Black-Scholes model and the Hull-White model. The key
inputs include interest rate yield curve, foreign currency exchange rate, volatility, credit quality of the counterparty or the MUFG
Group and spot price of the underlying. These models are commonly accepted in the financial industry and key inputs to the models
are generally readily observable in an active market. Derivatives valued using such valuation techniques and inputs are generallyclassified in Level 2 of the fair value hierarchy. Examples of such Level 2 derivatives include plain-vanilla interest rate swaps, foreign
currency forward contracts and currency option contracts.
Derivatives that are valued using valuation techniques with significant unobservable inputs are classified in Level 3 of the fairvalue hierarchy. Examples of Level 3 derivatives include long-term interest rate or currency swaps and certain credit derivatives,
where significant inputs such as volatility and correlation of such inputs are unobservable.
Investment Securities

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Investment securities include Available-for-sale debt and equity securities, whose fair values are measured using the samevaluation techniques as the trading account securities described above. Investment securities also include investments innonmarketable equity securities which are subject to specialized industry accounting principles. The valuation of such nonmarketable
equity securities involves significant management judgment due to the absence of quoted prices, lack of liquidity and the long term
nature of these investments. Further, there may be restriction on transfers of nonmarketable equity securities. The MUFG Groupvalues such securities initially at transaction price and subsequently adjusts such valuations, considering evidence such as current sales
transactions of similar securities, initial public offerings, recent equity issuances and change in financial condition of the investee
company. Nonmarketable equity securities are included in Level 3 of the fair value hierarchy.
Other Assets
Other assets measured at fair value mainly consist of securities received as collateral that may be sold or repledged under
securities lending transactions. The securities received as collateral under lending transactions mainly consist of certain Japanese andforeign government bonds which are valued using the valuation techniques previously described in the section entitled “Trading
Accounts Assets and Liabilities—Trading Account Securities” above.
Obligations to Return Securities Received as Collateral
Obligations to return securities received as collateral under securities lending transactions included in Other liabilities aremeasured at the fair values of the securities received as collateral. The securities received as collateral consist primarily of certain
Japanese and foreign government bonds, whose fair values are measured using the valuation techniques described in the “Trading
Account Assets and Liabilities—Trading Account Securities” above.
Other Short-term Borrowings and Long-term Debt
Certain short-term borrowings and long-term debt are measured at fair value due to the election of the fair value option. The fairvalue of these instruments are measured principally based on the discounted cash flows. Where the inputs into the valuation techniques
are mainly based on observable inputs, these instruments are classified in Level 2 of the fair value hierarchy. Where significant inputs
are unobservable, they are classified in Level 3 of the fair value hierarchy.
Market Valuation Adjustments
Counterparty credit risk adjustments are made to certain financial assets such as over-the-counter derivatives to factor incounterparty credit exposure. As not all counterparties have the same credit risk, it is necessary in calculating credit risk adjustments,
to take into account probability of a default event occurring for each counterparty, which is primarily derived from observed or
estimated spreads on credit default swaps. In addition, the counterparty credit risk adjustment takes into account the effect of credit
risk mitigation such as pledged collateral and the legal right of offset with the counterparty.
Funding valuation adjustment (“FVA”) represents the adjustment to reflect the impact of uncollateralized funding. The FVA is
calculated using the MUFG’s market funding spread and the funding exposure of any uncollateralized component of the over-thecounter derivative instrument. The MUFG Group’s FVA framework incorporates key inputs, such as the expected future funding
requirements arising from the MUFG Group’s positions with each counterparty and collateral arrangements, and the estimated market
funding cost in the principal market, which considers the MUFG Group’s credit risk.
Liquidity adjustments are applied mainly to the instruments classified in Level 3 of the fair value hierarchy when recent
observable prices of such instruments are not available or such instruments are traded in inactive or less active markets. The liquidity
adjustments are based on the facts and circumstances of the markets including the availability of external quotes and the time since thelatest available quote.
Model valuation adjustments such as unobservable parameter valuation adjustments may be provided when the fair values of
instruments are determined based on internally developed valuation techniques. Examples of such adjustments include adjustments tothe model price of certain derivatives where parameters such as correlation are unobservable. Unobservable parameter valuation
adjustments are applied to mitigate the uncertainty inherent in the resulting valuation estimate.
Investments in Certain Entities That Calculate Net Asset Value per Share
The MUFG Group has interests in investment funds mainly private equity funds, and real estate funds that are measured at fairvalue on a recurring or nonrecurring basis.
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Private equity funds have specific investment objectives in connection with their acquisition of equity interests, such asproviding financing and other support to start-up businesses, medium and small entities in a particular geographical area, and tocompanies with certain technology or companies in a high-growth industry. Generally, these investments cannot be redeemed with thefunds, and the return of invested capital and its gains are derived from distributions received upon the liquidation of the underlying
assets of the fund, the timing of which is uncertain.
Real estate funds invest globally and primarily in real estate companies, debt recapitalizations and direct property. These
investments are generally not redeemable with the funds. Distributions from each fund will be received as the underlying investmentsof the funds are liquidated, the timing of which is uncertain.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the financial instruments carried at fair value by level within the fair value hierarchy as ofMarch 31, 2023 and 2024:
At March 31, 2023

Level 1

Level 2

Level 3

Fair Value(in millions)
AssetsTrading account assets:
Trading securities(1)¥19,098,208¥

12,746,415¥

1,182,319¥

33,026,942

Debt securities
Japanese national government and Japanese government agency bonds
Japanese prefectural and municipal bonds
Foreign government and official institution bonds
Corporate bonds

6,092,523

329,502——279,168—

6,422,025
279,168

11,760,274

493,691

1,168

12,255,133

3,965

2,252,424—

2,256,389

Residential mortgage-backed securities—

4,978,709—

4,978,709

Commercial mortgage-backed securities

—

4,627

—

4,627

Asset-backed securities—

1,210,381

668,911

1,879,292

Other debt securities——

334,124

334,124

Commercial paper—

1,931,569—

1,931,569

Equity securities(2)1,241,446

1,266,344

178,116

2,685,906

Trading derivative assets

84,406

12,674,978142,343

12,901,727

Interest rate contracts

40,0137,311,689

93,8337,445,535

Foreign exchange contracts

3,909

5,258,511

13,714

5,276,134

Equity contracts

40,484

28,617

20,65989,760Commodity contracts

—

17

9,908

9,925

Credit derivatives—

76,144

3,801

79,945

Other(8)

—

—

428

428

Trading loans(3)—13,820—13,82025,236,359

10,250,511

253,932

35,740,802

23,292,055

2,754,548—

26,046,603

Investment securities:
Available-for-sale debt securities
Japanese national government and Japanese government agency bonds
Japanese prefectural and municipal bonds—

2,759,941—

2,759,941

1,944,304

978,438—

2,922,742

Corporate bonds—

1,056,191

1,970

1,058,161

Residential mortgage-backed securities—

1,110,239

15

1,110,254

Asset-backed securities—

1,247,377

182,938

1,430,315

Foreign government and official institution bonds

Other debt securities
Equity securities
Marketable equity securities
Nonmarketable equity securities(4)Other(5)
Total

¥

F-117

—

343,777

69,009412,786

4,362,017

101,576

74,761

4,538,354

4,362,017

101,576—

4,463,593——

74,761

74,761

1,535,446

848,596

92,2512,476,293

50,316,436¥

36,635,896¥

1,745,606¥

88,697,938

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
At March 31, 2023

Level 1

Level 2

Level 3

Fair Value(in millions)
Liabilities
Trading account liabilities:
Trading securities sold, not yet purchased¥

232,287

¥

2,620

¥

—

¥

234,907

Trading derivative liabilities

163,129

13,718,992

61,247

13,943,368

Interest rate contracts

85,6418,566,043

45,204

8,696,888

Foreign exchange contracts

1,679

5,013,909

2,369

5,017,957

Equity contracts

75,80948,953

3,731

128,493

Commodity contracts

—

—

9,817

9,817

Credit derivatives—

90,087

6290,149Other(8)Obligation to return securities received as collateral(6)Other(7)
Total

¥

F-118

—

—

64

64

6,664,578

158,763

68,204

6,891,545—

313,482

73,663

387,145

7,059,994¥

14,193,857¥

203,114¥

21,456,965

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
At March 31, 2024

Level 1

Level 2

Level 3

Fair Value(in millions)
AssetsTrading account assets:
Trading securities(1)¥18,626,829¥

13,457,903¥

2,041,954¥

34,126,686

Debt securities
Japanese national government and Japanese government agency bonds
Japanese prefectural and municipal bonds
Foreign government and official institution bonds
Corporate bonds

6,278,228

395,745——

91,683—

6,673,973
91,683

10,170,757

662,651101

10,833,509

8,937

2,723,957—

2,732,894

Residential mortgage-backed securities—

5,422,286—

5,422,286

Asset-backed securities—

1,374,191

1,352,755

2,726,946

Other debt securities

—

2,599

536,846

539,445

Commercial paper—

1,609,441—

1,609,441

Equity securities(2)2,168,907

1,175,350

152,252

3,496,509

Trading derivative assets

90,32515,081,739

151,242

15,323,306

Interest rate contracts

14,1439,382,147

110,013

9,506,303

Foreign exchange contracts

10,4735,604,544

12,647

5,627,664

Equity contracts

65,70948,606

8,647

122,962

Commodity contracts—

391

18,282

18,673Credit derivatives—

46,047

1,148

47,195

Other(8)

—

4

505

509

Trading loans(3)—31,542—

31,542

23,569,981

7,620,772

204,619

31,395,372

21,336,860

1,830,540—

23,167,400—

1,045,991—

1,045,991

2,233,121

1,046,162—

3,279,283

Corporate bonds—

1,016,574

5,017

1,021,591

Residential mortgage-backed securities—

1,229,510

15

1,229,525

Asset-backed securities—

1,114,195

132,951

1,247,146

Other debt securities—

337,800

66,636404,4365,401,388

70,82386,137

5,558,348

5,401,388

70,823—

5,472,211——

86,137

86,137

1,175,125

1,224,351

139,117

2,538,593

Investment securities:
Available-for-sale debt securities
Japanese national government and Japanese government agency bonds
Japanese prefectural and municipal bonds
Foreign government and official institution bonds

Equity securities
Marketable equity securities
Nonmarketable equity securities(4)Other(5)
Total

¥

F-119

48,863,648¥

37,487,130¥

2,623,069¥

88,973,847

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
At March 31, 2024

Level 1

Level 2

Level 3

Fair Value(in millions)
Liabilities
Trading account liabilities:
Trading securities sold, not yet purchased¥

103,705

¥

4,508

¥

—

¥

108,213

Trading derivative liabilities

117,567

16,269,035

92,336

16,478,938

Interest rate contracts

30,997

10,591,825

70,527

10,693,349

954

5,542,872

2,449

5,546,275

85,61672,337389

158,342

Foreign exchange contracts
Equity contracts
Commodity contracts——

18,32718,327

Credit derivatives—

61,999488

62,487

Other(8)

—

2

156

158

6,955,747

195,622

71,3997,222,768—

193,599

66,452260,051

Obligation to return securities received as collateral(6)Other(7)Total¥

7,177,019¥

16,662,764¥

230,187¥

24,069,970

Notes:(1) Includes securities measured under the fair value option.
(2) Excludes certain investments valued at net asset value of private equity funds, whose fair values were ¥225,972 million and¥264,458 million at March 31, 2023 and 2024, respectively. The amounts of unfunded commitments related to these private
equity funds were ¥172,562 million and ¥134,429 million at March 31, 2023 and 2024, respectively.
(3) Includes loans measured under the fair value option.
(4) Excludes certain investments valued at net asset value of real estate funds and private equity and other funds, whose fair values at
March 31, 2023 were ¥29,308 million and ¥51,458 million, respectively, and those at March 31, 2024 were ¥37,207 million and¥53,324 million, respectively. The amounts of unfunded commitments related to these real estate funds and private equity andother funds at March 31, 2023 were ¥1,305 million and nil, respectively, and those at March 31, 2024 were ¥869 million and ¥250
million, respectively.
(5) Mainly comprises securities received as collateral that may be sold or repledged under securities lending transactions.
(6) Included in Other liabilities.
(7) Mainly includes other short-term borrowings, long-term debt, and bifurcated embedded derivatives carried at fair value.
(8) Includes certain derivatives such as earthquake derivatives.

Changes in Level 3 Recurring Fair Value Measurements
The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using
significant unobservable inputs (Level 3) during the fiscal years ended March 31, 2023 and 2024. The determination to classify afinancial instrument within Level 3 is based upon the significance of the unobservable inputs to overall fair value measurement.
However, Level 3 financial instruments typically include, in addition to the unobservable or Level 3 input, observable inputs (inputs
that are actively quoted and can be validated to external sources). Accordingly, the gains and losses in the tables below include
changes in fair value due in part to observable inputs used in the valuation techniques.

F-120

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Transfers
out ofLevel 3

March 31,2023

Change inunrealized
gains(losses)
for assets
andliabilities
still held at
March 31,
2023

¥

(945)

¥ 1,182,319¥

Total gains (losses)
for the period
Includedin othercomprehensiveincomeIncludedinearnings

March 31,2022

Purchases

Issues

Sales

Settlements

Transfers
intoLevel 3(in millions)
AssetsTrading account assets:
Trading securities(1)¥797,997¥

50,044(2)¥—¥ 387,100¥—¥(21,409)¥(30,468) ¥—43,990(2)

Debt securities
Foreign government andofficial institution bonds

1,711

16

—

5,718

—

(5,765)

(250)

—

(262)

1,168

683

—

—

—

—

—

—

—

(683)

—

—

Asset-backed securities

315,231

17,132—354,978—(15,636)(2,794)——

668,91115,749Other debt securities

20,646

Corporate bonds(35)

313,166

21,297

—

8,128

—

—

(8,467)——334,124

Equity securities

167,206

11,599—18,276—(8)(18,957)——

178,116

7,630

Trading derivatives—net

71,089(2,045)

1,138

612

(334)

—

(17,198)

55,211(27,377)

81,09645,86237,493(27,947)

297

—

—

—

10,932

55,243(27,389) (5)48,62910,779Interest rate contracts—net

(2)

(5)

Foreign exchange contracts—
net

7,463

8,210

86

—

—

—

(4,484)(32)

102

11,3457,877

Equity contracts—net

23,42016,190

758

19

—

—

(23,369)—(90)

16,92825,646

Commodity contracts—net
Credit derivatives—net
Other—net(8)

(45)

153

(3)

—

—

—

(14)

—

—

91

153

2,729

1,273

—

—

—

—

(263)

—

—

3,739

1,303

29

76

—

593

(334)

—

—

—

—

364

104

(1,303) (3)16,357301,283——(272,638)

1,405(4,108)

253,932

2,094

(2)

Investment securities:
Available-for-sale debt securities

212,936

Foreign government andofficial institution bonds

11,890

—

(925)

128

—

—

(11,093)

—

—

—

—

Corporate bonds

3,089

(164)

142

1,823

—

—

(67)

1,255

(4,108)

1,970

147

Residential mortgage-backed
securities

15

—

—

—

—

—

—

—

—

15

—

Asset-backed securities

124,379(1,174)

14,406296,645——(251,318)——

182,938(823)

Other debt securities

73,563

35

2,734

2,687

—

—

(10,160)

150—

69,0092,770

55,883712

345

18,963—(2,682)

(806)

3,411

(1,065)74,761161

Equity securities
Nonmarketable equity
securities(3)

55,883712

345

18,963—(2,682)

(806)

3,411

(1,065)74,761

161

Other

4,912

61

(7)

(21)

90,986——(5,612)

1,925—

92,251

61

Assets held for sale

76,918

992

(9)

9,263

1,620

—

(77,390)(11,403)

—

—

—

—

Investment securities

65,262(3,619)

7,156

297

—

(56,292)(12,804)

—

—

—

—

Other

11,656

4,611

2,107

1,323

—

(21,098)

1,401

—

—

—

27,082¥ 800,564

¥

(334)

¥ (101,481)¥ (338,125) ¥(33,495)¥ 1,684,359

¥

¥

¥

¥

¥

¥

¥

Total

¥ 1,219,735

¥

¥

¥

48,461¥

61,952

¥

(3)

(3)

(7)

—
92,168

Liabilities
Obligation to return securities
received as collateral
Other
Total

—
16,463¥

16,463—35,755¥35,755¥—(3,879)(4)¥(3,879)¥—73,595—53,887—¥ 127,482

F-121

—
—

¥

—

¥

(5,391) ¥—(36,792)

72,173(42,183) ¥72,173

¥

—
(192)

(6)

¥

(192)

68,20473,663¥

141,867—
43,066¥43,066(4)

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Transfers
out ofLevel 3

March 31,2024

Change inunrealized
gains(losses)
for assets
andliabilities
still held at
March 31,2024¥

¥ 2,041,954¥

Total gains (losses)
for the period
Includedin othercomprehensiveincomeIncludedinearnings

March 31,2023

Purchases

Issues

Sales

Settlements

Transfers
intoLevel 3(in millions)
AssetsTrading account assets:
Trading securities(1)¥ 1,182,319¥ 213,607

(2)

¥

—

¥ 728,692¥—¥(16,552)¥(66,257) ¥145—

206,853(2)

Debt securities
Foreign government andofficial institution bonds

1,168

123

—

7

—

(7)

(1,190)

—

—

101

—

Asset-backed securities

668,911

143,982—552,320——(12,458)——

1,352,755

143,014

Other debt securities

334,124

61,722—141,000

—

—

—

—

—

536,846

61,722Equity securities

178,116

7,780—

35,365—(16,545)(52,609)145—

152,252

2,117

Trading derivatives—net

81,096

1,979

1,383

423

(355)

—

(16,407)49,297(58,510)58,906

1,549

Interest rate contracts—net

48,629(9,448)(1,240)

—

—

—

4,784

49,324(52,563) (5)39,486(8,541)

Foreign exchange contracts—
net

11,345

2,429

922

—

—

—

(582)

98

(4,014)

10,1983,309

Equity contracts—net

16,928

10,324

1,694

4

—

—

(20,415)

(125)

(152)

8,258

8,070

91

(128)

7

—

—

—

(15)

—

—

(45)

(128)

3,739

(1,119)

—

—

—

—

(179)

—

(1,781)660(1,087)

364

(79)

—

419

(355)

—

—

—

—

349

(74)

253,932

1,403

20,914

208,844——(278,573)

26(1,927)

204,619

12,786

1,970

(83)

150

2,978

—

—

(4)

26

(20)

5,017

69

Commodity contracts—net
Credit derivatives—net
Other—net(8)

(2)

(5)

(2)

Investment securities:
Available-for-sale debt securities
Corporate bonds
Residential mortgage-backed
securities

(3)

15

—

—

—

—

—

—

—

—

15

—

Asset-backed securities

182,938

1,597

14,325

205,611——(271,520)——

132,951

6,360

Other debt securities

69,009

(111)

6,439

255

—

—

(7,049)—(1,907)

66,636

6,357

74,761

1,223

524

10,665—(2,200)

—

2,015

(851)

86,13764

524

10,665—(2,200)

—

2,015

(851)

86,13764

186

49,009——(2,125)——

139,117(204)

23,007¥ 997,633¥(61,288)¥ 2,530,733

¥

¥

¥

¥

¥

Equity securities
Nonmarketable equity
securities

74,761

1,223

Other

92,251

(204)

Total

¥ 1,684,359¥ 218,008

¥

¥

(3)

(7)

¥

(355)

¥

5,053

¥

(18,752)¥ (363,362) ¥51,483

¥

—

¥

(3)

(3)

(7)

221,048

Liabilities
Obligation to return securities
received as collateral
Other
Total

68,20473,663¥

141,867—(58,355)¥(58,355)¥—(8,293)(4)¥(8,293)——¥—

61,123¥

66,176¥—¥(1,858) ¥—(111,353)

(705)

—

¥ (113,211) ¥

(705)

—
(22,924) (6)¥(22,924)

71,39966,452¥

137,851—(17,683)¥(4)(17,683)

Notes:(1) Includes Trading securities measured under the fair value option.
(2) Included in Trading account losses—net and Foreign exchange gains (losses)—net.
(3) Included in Investment securities gains (losses)—net and Other comprehensive income—net.
(4) Included in Trading account losses—net and Other comprehensive income—net.
(5) Transfers into (out of) Level 3 for Interest rate contracts—net were mainly caused by changes in the impact of unobservable input
to the entire fair value measurement. Unobservable input includes loss given default.
(6) Transfers into (out of) Level 3 for long-term debt in Other were mainly caused by the decrease (increase) in the observability of
the key inputs to the valuation models and a corresponding increase (decrease) in the significance of the unobservable inputs.
(7) Included in Other non-interest income.
(8) Includes certain derivatives such as earthquake derivatives.
(9) Included in Investment securities gains (losses)—net, Trading account losses—net and Fees and commissions income.

F-122

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Quantitative Information about Level 3 Fair Value Measurements
The following tables present information on the valuation techniques, significant unobservable inputs and their ranges for eachmajor category of assets and liabilities measured at fair value on a recurring basis and classified in Level 3:

At March 31, 2023

Fair value(1)Valuation techniqueSignificant unobservable inputs

Range

Weighted
average(2)(in millions)
AssetsTrading securities and Investment
securities :Residential mortgage-backed
securities and Asset-backed
securities¥

101,014

Discounted cash flow

Recovery rate

100.0%

100.0%

591,515Internal model(4)Asset correlations

3.0%

3.0%

Discount factor

2.0%～2.3%

2.0%

13.1%

13.1%

Prepayment rate
Probability of default
Recovery rate
Other debt securities
At March 31, 2023

385,046
Fair value(1)Discounted cash flow
Valuation technique

Liquidity premium

0.0%~99.0%

—

72.2%

72.2%

0.9%~3.2%

2.8%

Significant unobservable inputs

Range

Median(2)Correlation between interest rates(in millions)
Trading derivatives—net:
Interest rate contracts—net

Foreign exchange contracts—net

Equity contracts—net

48,20911,345

3,316

13,612

Option model

Option model

Option model

Discounted cash flow

F-123

(3)

30.0%~60.6%

44.4%

Correlation between interest rate
and foreign exchange rate

2.0%~60.0%

36.6%

Volatility

70.3%~106.7%

80.1%

Correlation between interest rates

30.0%~70.0%

50.6%

Correlation between interest rate
and foreign exchange rate

14.3%~60.0%

36.8%

Correlation between foreignexchange rates

50.0%~70.6%

66.4%

Volatility

10.6%~23.0%

15.6%

Correlation between foreignexchange rate and equity(58.4)%~55.0%

15.0%

Correlation between equities

5.6%~95.0%

54.1%

Volatility

28.0%~37.0%

32.2%

0.1 years~1.0 year

0.5 years

Term of litigation

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
At March 31, 2024

Fair value(1)Valuation technique

Range

Weighted
average(2)Asset correlations

3.0%

3.0%

Discount factor

1.4%~1.6%

1.4%

Prepayment rate

17.7%

17.7%

0.0%~93.0%—

Significant unobservable inputs(in millions)
AssetsTrading securities and Investment
securities:
Asset-backed securities¥ 1,248,241

Internal model(4)Probability of default
Recovery rate
Other debt securities
At March 31, 2024

587,272
Fair value(1)Discounted cash flow
Valuation technique

55.0%

55.0%

0.9%~3.2%

2.8%

Significant unobservable inputs

Range

Median(2)Correlation between interest rates

30.0%~60.7%

44.6%

Correlation between interest rate
and foreign exchange rate(2.0)%~60.0%

35.0%Volatility

61.2%~80.6%

75.6%

Correlation between interest rates

30.0%~70.0%

48.2%

Correlation between interest rate
and foreign exchange rate

17.6%~60.0%

36.3%

Correlation between foreignexchange rates

50.0%~70.6%

66.4%

Volatility

9.9%~21.3%

14.1%

Correlation between foreignexchange rate and equity

0.0%~30.0%

20.0%

Correlation between equities

5.0%~76.0%

57.5%

Volatility

25.0%~37.0%

33.9%

Liquidity premium(3)(in millions)
Trading derivatives—net:
Interest rate contracts—net

Foreign exchange contracts—net

Equity contracts—net

41,687

9,800

4,414

Option model

Option model

Option model

Notes:(1) The fair value as of March 31, 2023 and 2024 excludes the fair value of investments valued using vendor prices.
(2) Weighted average is calculated by weighing each input by the relative fair value of the respective financial instruments forinvestment securities. Median is used for derivative instruments.
(3) See “Probability of default” in “Changes in and range of unobservable inputs.”(4) For further detail of Internal model, refer to the last paragraph of “Trading Account Assets and Liabilities—Trading AccountSecurities.”
Changes in and range of unobservable inputs
Probability of default—Probability of default is an estimate of the likelihood that the default event will occur and the MUFG
Group will be unable to collect the contractual amounts. A significant increase (decrease) in the default rate would have resulted in asignificant decrease (increase) in a fair value through a decrease (increase) in the estimated cash flows. Probability of default used ininternal model of Residential mortgage-backed securities and Asset-backed securities represents that of underlying assets, whereas
probability of default used in other valuation techniques represents the counterparty default risks, determined through the MUFG
Group’s credit rating system.
The wide range of probability of default used in the internal model of Residential mortgage-backed securities and Asset-backed
securities is mainly caused by Asset-backed securities. Asset-backed securities have a large number of underlying loans, mainly
corporate loans, in several industries. The MUFG Group primarily makes investments in the senior tranches of such securities, with noinvestments in the equity portion. Thus, the MUFG Group’s investments have higher priority of payments than mezzanine and equity
and even if some of underlying loans become default, the MUFG Group may still be able to receive the full contractual payments.
Discount factor and Liquidity premium—Discount factor and liquidity premium are adjustments to discount rates to reflect
uncertainty of cash flows and liquidity of the instruments. When recent prices of similar instruments are unobservable in inactive or
less active markets, discount rates are adjusted based on the facts and circumstances of the markets including the availability of quotes
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
and the time since the latest available quotes. A significant increase (decrease) in discount rate would have resulted in a significant
decrease (increase) in a fair value.
Recovery rate and Prepayment rate—Recovery rate is the proportion of the total outstanding balance of a bond or loan that is
expected to be collected in a liquidation scenario. For many debt securities (such as asset-backed securities), there is no directly
observable market input for recovery, but indications of recovery levels are available from third-party pricing services. The assumed
recovery of a security may differ from its actual recovery that will be observable in the future. Prepayment rate represents the
proportion of principal that is expected to be paid prematurely in each period on a security or pool of securities. Prepayment rates
change the future cash flows for the investor and thereby change the fair value of the security. Recovery rate and prepayment ratewould affect estimation of future cash flows to a certain extent and changes in these inputs could have resulted in a significant increaseor decrease in fair value.
Volatility—Volatility is a measure of the speed and severity of market price changes and is a key factor in pricing. Typically,
instruments can become more expensive if volatility increases. A significant increase (decrease) in volatility would cause a significant
increase (decrease) in the value of an option resulting in the significant increase (decrease) in fair value.
The level of volatility generally depends on the tenor of the underlying instrument and the strike price or level defined in thecontract. Volatilities for certain combinations of tenor and strike price are not observable. The volatility inputs used to estimate fairvalue of interest rate contracts are distributed throughout the range.
Correlation—Correlation is a measure of the relationship between the movements of two variables (i.e., how the change in one
variable influences a change in the other variables). A variety of correlation-related assumptions are required for a wide range of
instruments including foreign government and official institution bonds, asset-backed securities, corporate bonds, derivatives andcertain other instruments. In most cases, correlations used are not observable in the market and must be estimated using historicalinformation. Changes in correlation inputs can have a major impact, favorable or unfavorable, on the value of an instrument,
depending on its nature. In addition, the wide range of correlation inputs are primarily due to the complex and unique nature of these
instruments. There are many different types of correlation inputs, including cross-asset correlation (such as correlation between
interest rate and equity), and same-asset correlation (such as correlation between interest rates). Correlation levels are highly
dependent on market conditions and could have a relatively wide range of levels within or across asset classes.
For interest rate contracts and foreign exchange contracts, the diversity in the portfolio held by the MUFG Group is reflected inwide ranges of correlation, as the fair values of transactions with a variety of currencies and tenors are determined using several
foreign exchange and interest rate curves. For equity derivative contracts, the wide range of correlation between interest rate andequity is primarily due to the large number of correlation pairs with different maturities of contracts. For credit derivative contracts,
the wide range of correlation between underlying assets is primarily due to factors such as reference assets with different maturities,
capital structure subordinations, and credit quality.
Term of litigation—Term of litigation is the estimated period until the resolution of a certain litigation matter that relates to anissuer’s restricted shares (“Covered Litigation”) that the MUFG Group purchased, which is referenced in certain swap transactions.
These swaps are valued using a discounted cash flow methodology and are dependent upon the final resolution of the Covered
Litigation. The settlement timing of the Covered Litigation is not observable in the market, therefore the estimated term is classified as
a level 3 input.
The restricted shares which the MUFG Group purchased will be convertible to listed shares of the issuer at the end of the
Covered Litigation. The restricted shares will be diluted dependent upon the settlement amount of the Covered Litigation and the
dilution of the restricted shares is accomplished through an adjustment to the conversion rate of the restricted shares. In order to hedge
the reduction of the conversion rate, the MUFG Group entered into certain swaps with the seller which references the conversion rate.
The value generated by these trades is subject to the ultimate term of the issuer’s litigation, subject to a minimum term referenced
within the trade contracts.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Certain assets and liabilities may be measured at fair value on a nonrecurring basis in periods subsequent to their initialrecognition. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value
accounting, write-downs of individual assets or the measurement alternative for nonmarketable equity securities. The following table
presents the carrying value of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as ofMarch 31, 2023 and 2024:
2023

Level 1

Level 22024
Total
carrying
value

Level 3

Level 1

Level 2

Total
carrying
value

Level 3(in millions)

AssetsInvestment securities(1)(2)
Loans

¥

—

¥

1,917

Loans held for sale

13,366¥

13,271¥

26,6373,388

611,055

616,360

¥

—

¥

9,460

2,271

¥

45,175¥54,6355,201

626,372

633,844——439,361439,361——

472,711472,711

1,917

3,388

171,694

176,999

2,271

5,201

153,661

161,133

Premises and equipment——

11,835

11,835

—

—

6,950

6,950

Intangible assets

—

—

309

309

—

—

5,174

5,174

Collateral dependent loans

Goodwill
Other assets
Investments in equity method
investees(1)——184,364

184,364

—

—

—

—

178,592—

29,003

207,595—

32,481

18,17350,654

178,592—

12,472

191,064—

27,801

1,702

29,503——

16,531

16,531—

4,680

16,471

21,151

16,754¥ 849,837¥ 1,047,100

47,142¥ 701,844¥ 751,257

Other
Total

¥ 180,509

¥

¥

2,271

¥

Notes:(1) Excludes certain investments valued at net asset value of ¥33,595 million and ¥18,037 million at March 31, 2023 and 2024,
respectively. The unfunded commitments related to these investments are ¥23,029 million and ¥24,208 million at March 31, 2023
and 2024, respectively. These investments are in private equity funds.
(2) Includes certain nonmarketable equity securities that are measured at fair value on a nonrecurring basis, including impairment andobservable price change for nonmarketable equity securities measured under the measurement alternative.
The following table presents losses recorded as a result of changes in the fair value of assets measured at fair value on anonrecurring basis for the fiscal years ended March 31, 2023 and 2024:
2023

2024
(in millions)¥

Investment securities
Loans
Loans held for sale
Collateral dependent loans
Premises and equipment
Intangible assets
Goodwill
Other assets
Investments in equity method investees
Other
Assets held for sale
Loans held for sale
Total

¥
F-126

3,580 ¥
73,28232,146
41,136
5,293
3,650
33,55374,47058,061
16,409282,540
282,540
476,368 ¥

12,62867,95555,064
12,891
2,925
14,929—40,867
19,97820,889——139,304

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Investment securities for the year ended March 31, 2023 and 2024 primarily include nonmarketable equity securities measured
under the measurement alternative. See Note 3 for the details of the measurement alternative.
Loans held for sale are recorded at the lower of cost or fair value. The fair value of loans held for sale is based on secondary
market prices, where available. Where no such price exists, the fair value is determined using prices observed in the market for asimilar asset or assets, which may be adjusted, as appropriate, to reflect other market conditions or the perceived credit risk of theborrower. These loans are principally classified in Level 3 of the fair value hierarchy, except when quoted prices are available but nottraded actively, which results in such loans held for sale being classified in Level 2 of the fair value hierarchy.
The significant unobservable inputs used for the fair value measurements of loans held for sale based on adjusted prices, which
are categorized within Level 3 of the fair value hierarchy, consisted of prices ranging from ¥54.00 to ¥100.00 and from ¥4.21 to¥100.00 as of March 31, 2023 and 2024, respectively, and the weighted average of prices were ¥91.21 and ¥83.38 as of March 31,
2023 and 2024, respectively. The significant unobservable inputs used for the fair value measurements of loans held for sale based on
discounted cash flows, which are categorized within Level 3 of the fair value hierarchy, consisted of discount rates ranging from
2.65% to 13.44% and from 0.83% to 11.87% as of March 31, 2023 and 2024, respectively, and the weighted averages of the discountrates were 11.58% and 11.51% as of March 31, 2023 and 2024, respectively. Weighted average is calculated by weighing each input
by the relative fair value of the respective financial instruments.
Collateral dependent loans are measured at fair value of the underlying collateral. Collateral is comprised mainly of real estateand exchange-traded equity securities. The MUFG Group maintains an established process for internally determining the fair value ofreal estate, using the following valuation techniques and assumptions. Collateral dependent loans that are measured based onunderlying real estate collateral are classified in Level 3 of the fair value hierarchy.
•

Replacement cost approach. The replacement cost approach is primarily used for buildings and the land they are built on.
This approach calculates the fair value of the collateral using the replacement cost of the property as of the valuation date.
Replacement cost tables and useful life tables used for this approach are developed by subsidiaries of MUFG.

•

Sales comparison approach. The sales comparison approach is mainly used for land. The fair value of the collateral locatedin Japan is based on Japanese government official land prices and standard land prices, considering the results ofcomparison analysis between the official roadside value which is used for tax purposes and the related government official
land and standard land prices.

•

Income approach. The income approach is, as a general rule, applied to all rental properties based on the highest and bestuse concept. This approach calculates the fair value of the collateral using expected future cash flows. In this approach, theexpected annual net operating income is discounted using the related capitalization yield. The significant assumptions within
the income approach are the expected annual net operating income and capitalization yield. The expected annual net
operating income is estimated based on rental income of the property. The capitalization yield is determined based on thelocation and use of the property by subsidiaries of MUFG. The capitalization yield may be adjusted to reflect the trends inlocations, occupancy rates and rent level and other factors.

Premises and equipment consist of those assets which were written down to fair value. The fair values are determined based on
prices obtained from an appraiser or discounted cash flows. These impaired premises and equipment are classified as Level 3 of thefair value hierarchy.
Intangible assets consist of those assets which were written down to fair value. The fair values are determined based on
discounted cash flows. These impaired intangible assets are classified as Level 3 of the fair value hierarchy.
Other assets mainly consist of investments in equity method investees which were written down to fair value due to impairment.
When investments in equity method investees are marketable equity securities, the fair values are determined based on quoted prices.
Impaired investments in equity method investees which are marketable equity securities are classified in either Level 1 or Level 2 ofthe fair value hierarchy. When investments in equity method investees are nonmarketable equity securities, the fair values are
determined using the same methodologies as those for impaired nonmarketable equity securities described above. Impaired
investments in equity method investees which are nonmarketable equity securities are classified in Level 3 of the fair value hierarchy.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Fair Value Option
The MUFG Group elected the fair value option for foreign currency-denominated debt securities and equity securities held by
MUFG Bank and Mitsubishi UFJ Trust and Banking. The election was made to mitigate accounting mismatches related to fluctuationsof foreign exchange rates by allowing the gains and losses on translation of these securities to be included in current earnings. The
gains and losses on translation of debt securities without the fair value option, are included in OCI, while the gains and losses ontranslation of foreign currency-denominated financial liabilities are included in current earnings.
The MUFG Group also elected the fair value option for certain financial instruments held by Mitsubishi UFJ Securities
Holdings’ foreign subsidiaries because those financial instruments are managed on a fair value basis, and these exposures are
considered to be trading-related positions. These financial assets are included in Other assets. These financial liabilities are mainly
included in Other short-term borrowings and Long-term debt. Unrealized gains and losses on such financial instruments arerecognized in the accompanying consolidated statements of operations.
The following table presents the gains or losses recorded for the fiscal years ended March 31, 2022, 2023 and 2024 related to theeligible instruments for which the MUFG Group elected the fair value option:
2022
Tradingaccount
profits(losses)2023

Foreignexchange
gains(losses)

Tradingaccount
profits(losses)Totalchanges infair value2024

Foreignexchange
gains(losses)

Tradingaccount
profits(losses)Totalchanges infair value

Foreignexchange
gains(losses)Totalchanges infair value(in millions)

Financial assets:
Trading account securities
Total¥ (984,605) ¥ 1,752,995¥

768,390¥(1,180,311) ¥ 1,369,071¥

188,760¥ (173,290) ¥ 2,176,389¥ 2,003,099¥ (984,605) ¥ 1,752,995¥

768,390¥(1,180,311) ¥ 1,369,071¥

188,760¥ (173,290) ¥ 2,176,389¥ 2,003,099

¥

¥

¥

¥

Financial liabilities:
Other short-termborrowings(1)Long-term debt(1)
Total

5,552

¥

50,082¥

55,634

—
—

¥

—

5,552
50,082¥

55,634¥(3,626) ¥—40,944—37,318¥—(3,626) ¥40,944¥37,318

¥

3,690

¥

—

(20,426)—(16,736) ¥

—

¥

3,690
(20,426)¥(16,736)

Note:(1) Changes in the value attributable to the instrument-specific credit risk related to those financial liabilities were not material.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
The following table presents the differences between the aggregate fair value and the aggregate remaining contractual principalbalance outstanding as of March 31, 2023 and 2024 for long-term debt instruments for which the fair value option has been elected:
2023

Remaining
aggregate
contractual
amounts
outstanding

Fair value

2024
Fair value
over (under)
remaining
aggregate
contractual
amounts
outstanding

Remaining
aggregate
contractual
amounts
outstanding

Fair value

Fair value
over (under)
remaining
aggregate
contractual
amounts
outstanding(in millions)

Financial liabilities:
Long-term debt
Total

¥
¥

501,982 ¥501,982 ¥431,338 ¥431,338 ¥(70,644) ¥(70,644) ¥246,153 ¥
246,153 ¥234,909 ¥234,909 ¥(11,244)(11,244)

Interest income and expense related to the assets and liabilities for which the fair value option is elected are measured based on
the contractual rates and dividend income related to these assets are recognized when the shareholder right to receive the dividend isestablished. These interest income and expense and dividend income are reported in the accompanying consolidated statements ofoperations as either interest income or expense, depending on the nature of the related asset or liability.
Estimated Fair Value of Financial Instruments
The following is a summary of carrying amounts and estimated fair values by level within the fair value hierarchy of financial
instruments which are not carried at fair value on a recurring basis in the accompanying consolidated balance sheets as of March 31,
2023 and 2024:

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Carrying
amount

At March 31, 2023

Estimated fair value
Total

Level 1

Level 2

Level 3(in billions)

Financial assets:
Cash and due from banks
Interest-earning deposits in other banks
Call loans and funds soldReceivables under resale agreements
Receivables under securities borrowing
transactions
Investment securities
Loans, net of allowance for credit losses(1)Other financial assets(2)Financial liabilities:
Deposits
Non-interest-bearing
Interest-bearing
Total deposits
Call money and funds purchased
Payables under repurchase agreements
Payables under securities lending transactions
Due to trust account and other short-termborrowings
Long-term debt
Other financial liabilities¥¥

60,051 ¥53,9901,802
14,05960,051 ¥53,9901,802
14,05960,051 ¥———— ¥53,9901,802
14,0594,556
21,520118,679
10,1084,556
21,386
118,933
10,108—13,527
2
—

4,556
5,354
263
10,10837,804 ¥197,500
235,304
3,438
40,132
1,138

37,804 ¥197,573
235,377
3,438
40,132
1,138

— ¥
—
—
—
—
—

37,804 ¥197,573
235,377
3,438
40,132
1,138

—
—
—
—
—
—

14,26038,704
9,595

14,26037,928
9,595

—
—
—

14,26037,928
9,595

—
—
—

F-130

—
—
—
—
—
2,505
118,668—

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Carrying
amount

At March 31, 2024

Estimated fair value
Total

Level 1

Level 2

Level 3(in billions)

Financial assets:
Cash and due from banks
Interest-earning deposits in other banks
Call loans and funds soldReceivables under resale agreements
Receivables under securities borrowing
transactions
Investment securities
Loans, net of allowance for credit losses(1)Other financial assets(2)Financial liabilities:
Deposits
Non-interest-bearing
Interest-bearing
Total deposits
Call money and funds purchased
Payables under repurchase agreements
Payables under securities lending transactions
Due to trust account and other short-termborrowings
Long-term debt
Other financial liabilities¥¥

4,392 ¥
105,632
1,738
18,495

4,392 ¥
105,632
1,738
18,495

4,392 ¥———

— ¥105,632
1,738
18,495

—
—
—
—

5,001
24,844
126,572
11,787

5,001
24,558
126,746
11,787—
14,522
2
—

5,001
7,457
295
11,78738,787 ¥207,659
246,446
5,094
35,711
1,017

38,787 ¥207,808
246,595
5,094
35,711
1,017

— ¥
—
—
—
—
—

38,787 ¥207,808
246,595
5,094
35,711
1,017

—
—
—
—
—
—

15,74339,743
9,473

15,74339,010
9,473

—
—
—

15,74339,010
9,473

—
—
—

—
2,579
126,449—

Notes:(1) Includes loans held for sale and collateral dependent loans measured at fair value on a nonrecurring basis. Refer to “Assets andLiabilities Measured at Fair Value on a Nonrecurring Basis” for the details of the level classification.
(2) Excludes investments in equity method investees of ¥3,482 billion and ¥4,113 billion at March 31, 2023 and 2024, respectively.
The fair values of certain off-balance sheet financial instruments held for purposes other than trading, including commitments toextend credit and commercial letters of credit, are estimated using the fees currently charged to enter into similar agreements, taking
into account the remaining terms of the agreements and the credit quality. The aggregate fair value of such instruments at March 31,
2023 and 2024 was not material.
32.

PARENT COMPANY ONLY FINANCIAL INFORMATION

Distributions of retained earnings of MUFG Bank and Mitsubishi UFJ Trust and Banking are restricted in order to meet theminimum capital adequacy requirements under the Banking Law. Additionally, retained earnings of these banking subsidiaries are
restricted, except for approximately ¥5,837 billion and ¥6,159 billion, in accordance with the statutory reserve requirements under theCompanies Act at March 31, 2023 and 2024, respectively. See Notes 19 and 21 for further information.
The Banking Law and related regulations restrict the ability of these banking subsidiaries to extend loans or credit to the parent
company. Such loans or credits to the parent company are generally limited to 15% of the banking subsidiary’s consolidated total
capital, as determined by the capital adequacy guidelines.
At March 31, 2023 and 2024, approximately ¥5,352 billion and ¥6,441 billion, respectively, of net assets of consolidated
subsidiaries may be restricted as to payment of cash dividends and loans to the parent company.
As described in Note 1A, the restatement of the March 31, 2023 consolidated financial statements resulted in the amounts
previously recognized as direct adjustments to equity, including retained earnings of ¥223,273 million, net of tax, being recognized as
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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
reductions of the gain on sale. This correction resulted in reductions of ¥223,273 million in "Equity in undistributed net income (loss)of subsidiaries and affiliated companies—net", "Income (loss) before income tax expense", and "Net income (loss)" in the condensed
statements of operations for the year ended March 31, 2023.
The following table presents the parent company only financial information of MUFG:
Condensed Balance Sheets
As of March 31,
2023

2024
(in millions)

Assets:Cash and interest-earning deposits with banking subsidiaries
Investments in subsidiaries and affiliated companies
Banking subsidiaries
Non-banking subsidiaries and affiliated companies
Loans to subsidiaries
Banking subsidiaries
Non-banking subsidiaries
Other assets
Total assets
Liabilities and Shareholders’ equity:
Short-term borrowings from banking subsidiaries
Long-term debt from non-banking subsidiaries and affiliated companies
Long-term debt
Other liabilities
Total liabilities
Total shareholders’ equity
Total liabilities and shareholders’ equity

F-132

¥

173,603
16,834,133
11,893,171
4,940,962¥

147,740
18,819,492
12,822,717
5,996,775

12,841,655
12,225,477
616,178
229,005¥ 30,078,396

14,198,572
13,651,662
546,910
178,222¥ 33,344,026¥¥

1,291,660
15,591
12,792,670
215,129
14,315,050
15,763,346¥ 30,078,396

1,285,635
21,902
14,163,977
226,850
15,698,364
17,645,662¥ 33,344,026

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Condensed Statements of Operations
Fiscal years ended March 31,
2023(Restated)

2022

2024

(in millions)

Income:Dividends from subsidiaries and affiliated companies
Banking subsidiaries
Non-banking subsidiaries and affiliated companies
Management fees from subsidiaries
Interest income from subsidiaries
Foreign exchange gains—net
Trading account profits (losses)—net
Gains on sales of investment in subsidiaries and affiliated companies—net
Other income
Total income
Expense:Operating expenses
Interest expense to subsidiaries and affiliated companies
Interest expense
Other expense
Total expense
Equity in undistributed net income (loss) of subsidiaries and affiliated companies—net
Income (loss) before income tax expense
Income tax expense (benefit)
Net income (loss)

F-133

¥

586,108 ¥419,691
166,417
34,957
183,679
6,851(4,059)—605,115
407,630
197,485
35,052
273,536
3,465
28,97017,748

11,732819,268

13,255
977,141¥774,211545,886
228,325
34,393371,860
451(40,379)—
15,374
1,155,910

40,15844,14947,60012,256
15,442
15,673167,057
256,333
355,781
7,154
6,496
6,229
226,625
322,420425,283(667,088)(259,130)592,064(74,445)
395,591
1,322,691
8,875
18,956(5,430)¥ (83,320) ¥ 376,635 ¥ 1,328,121

Table of Contents
MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)
Condensed Statements of Cash Flows
Fiscal years ended March 31,
2022

2023

2024

(in millions)Operating activities:
Net cash provided by operating activities
Investing activities:
Proceeds from sales and dispositions of investments in subsidiaries and affiliatedcompanies
Purchase of equity investment in subsidiaries and an affiliated company
Net increase in loans to subsidiaries
Other—net
Net cash used in investing activities
Financing activities:
Net increase (decrease) in short-term borrowings from subsidiaries
Proceeds from issuance of long-term debt
Repayment of long-term debt
Proceeds from sales of treasury stock
Payments for acquisition of treasury stock
Dividends paid
Other—net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of fiscal year
Cash and cash equivalents at end of fiscal year33.

570,448609,641

839,937136(1,000)(257,619)(9,413)(267,896)

41,125—(2,204,831)(7,791)(2,171,497)

865—(231,891)(8,787)(239,813)(61,415)
145,513(6,025)
1,625,173
3,833,878
1,809,416(1,369,254) (1,630,695) (1,578,887)——
1(150,017)(450,019)(400,037)(334,620)(380,447)(439,755)(10,410)(14,160)(10,700)(300,543)
1,504,070(625,987)
2,009(57,786)(25,863)
229,380
231,389
173,603¥ 231,389 ¥ 173,603 ¥ 147,740

SUBSEQUENT EVENTSApproval of Dividends
On June 27, 2024, the shareholders approved the payment of cash dividends of ¥20.5 per share of Common stock, totaling¥240,938 million, that were payable on June 28, 2024, to the shareholders of record on March 31, 2024.
Repurchase of own shares
At the meeting of the Board of Directors of MUFG held on May 15, 2024, it was resolved to repurchase up to 80,000,000 sharesof MUFG’s common stock by market purchases based on the discretionary dealing contract regarding repurchase of its own shares forapproximately ¥100 billion, in aggregate, from May 16, 2024 to June 30, 2024. This repurchase plan allowed for the repurchase of theequivalent of up to 0.7% of the total number of common shares outstanding excluding its own shares, or of an aggregate repurchaseamount of up to ¥100 billion. The purpose of the repurchase is to enhance the return of earnings to shareholders, to improve capitalefficiency, and to implement flexible capital policies.
*****

F-134

Table of Contents
EXHIBIT INDEXExhibitDescription

1(a)
1(b)

Articles of Incorporation of Mitsubishi UFJ Financial Group, Inc., as amended on June 29, 2022 (English translation)
Board of Directors Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on June 25, 2015 (English
translation)*
Corporation Meetings Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on April 1, 2022 (English
translation)**Share Handling Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on August 2, 2022 (English
Translation)
Charter of the Audit Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1. 2024 (English
translation)
Charter of the Compensation Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2018 (English
translation)*
Charter of the Nominating and Governance Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1,
2018 (English translation)*
Charter of the Risk Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2018 (English
translation)*
Form of American Depositary Receipt*

1(c)
1(d)
1(e)
1(f)
1(g)
1(h)
2(a)
2(b)

2(c)
8
11(a)

11(b)
12
13
15(a)
15(b)
97
99(a)
99(b)
99(c)
101.INSForm of Deposit Agreement, amended and restated as of December 22, 2004, among Mitsubishi Tokyo Financial Group,
Inc. (subsequently renamed Mitsubishi UFJ Financial Group, Inc.), The Bank of New York Mellon and the holders fromtime to time of American Depositary Receipts issued thereunder*
Description of Securities
Subsidiaries of the Company—see “Item 4.C. Information on the Company—Organizational Structure.”
MUFG Group Code of Conduct, Compliance Rules, Compliance Manual, and Rules of Employment of Mitsubishi UFJ
Financial Group, Inc. applicable to its principal executive officer, principal financial officer, principal accounting officer
and persons performing similar functions (English translation of relevant sections)
MUFG Insider Trading Control Policy and Insider Trading Control Rule
Certifications required by Rule 13a-14(a) (17 CFR 240.13a-14(a)) or Rule 15d-14(a)(17 CFR 240.15d-14(a))
Certifications required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) or Rule 15d-14(b)(17 CFR 240.15d-14(b)) and Section
1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350)
Consent of independent registered public accounting firm (Deloitte Touche Tohmatsu LLC)
Consent of independent registered public accounting firm (Deloitte & Touche LLP)MUFG Executive Compensation Recovery Policy
Capitalization and Indebtedness of Mitsubishi UFJ Financial Group, Inc. as of March 31, 2024***
Unaudited Reverse Reconciliation of Selected Financial Information of Mitsubishi UFJ Financial Group, Inc. as of andfor the fiscal year ended March 31, 2024****

Financial Statements and Supplementary Data of Morgan Stanley*****
Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL
tags are embedded within the Inline XBRL document
101.SCH Inline XBRL Taxonomy Extension Schema Document
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document
104
The cover page for the Company’s Annual Report on Form 20-F for the year ended March 31, 2024, has been formatted
in Inline XBRL

Notes:

Table of Contents
*
**
***
****
*****

Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 12, 2018.
Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 8, 2022.
Deemed to be incorporated by reference into the registration statement on Form F-3 (No. 333-273681) of Mitsubishi UFJ
Financial Group, Inc. and to be a part thereof.
Deemed to be incorporated as Annex A to the registration statement on Form F-3 (No. 333-273681) of Mitsubishi UFJ
Financial Group, Inc. and to be a part thereof.
Incorporated by reference to Morgan Stanley’s annual report on Form 10-K (File No. 001-11758) filed on February 22, 2024.

Table of Contents
Signature
The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused andauthorized the undersigned to sign this Annual Report on its behalf.
MITSUBISHI UFJ FINANCIAL GROUP, INC.
By:

Date: July 30, 2024

/s/ HIRONORI KAMEZAWA

Name:

Hironori Kamezawa

Title:

President & Group Chief Executive Officer

Exhibit 1(a)ARTICLES OF INCORPORATIONOFMITSUBISHI UFJ FINANCIAL GROUP, INC.
CHAPTER I.
GENERAL PROVISIONS(English Translation)(Trade Name)
Article 1.
The Company shall be called “Kabushiki Kaisha Mitsubishi UFJ Financial Group” and shall be called in English “Mitsubishi
UFJ Financial Group, Inc.” (hereinafter referred to as the “Company”).
(Purpose)
Article 2.
The purpose of the Company shall be to engage in the following businesses as a bank holding company:
1.

Administration of management of banks, trust banks, specialized securities companies, insurance companies or othercompanies which the Company may own as its subsidiaries under the Banking Law;2.

Any businesses incidental to the foregoing businesses mentioned in the preceding item; and3.

Any other businesses in which bank holding companies are permitted to engage under the Banking Law in addition to theforegoing businesses mentioned in the preceding two items.

(Location of Head Office)
Article 3.
The Company shall have its head office in Chiyoda-ku, Tokyo.
(Organization)
Article 4.
The Company, being a company with three committees, shall establish the following organizations in addition to the general
meeting of shareholders and the Directors:
1.

The Board of Directors;

2.

The Nominating and Governance Committee (which constitutes a Nominating Committee defined in the Companies Act),
the Audit Committee, and the Compensation Committee;

3.

Corporate Executives; and4.

An Accounting Auditor.

(Method of Public Notice)
Article 5.
1.

Public notices of the Company shall be given by way of electronic public notice.

2.

In cases where the Company is unable to give an electronic public notice due to unavoidable circumstances, public notices of theCompany shall be given in the manner of the publication in the Nihon Keizai Shimbun.

1

CHAPTER II.
SHARES(Total Number of Shares Authorized to be Issued)
Article 6.
The aggregate number of shares authorized to be issued by the Company shall be thirty-three billion eight hundred million(33,800,000,000) shares, and the aggregate number of each class shares authorized to be issued shall be as set forth below; provided,
however, that the aggregate number of shares authorized to be issued with respect to the Second to the Fourth Series of Class 5
Preferred Shares shall not exceed four hundred million (400,000,000) in total, the aggregate number of shares authorized to be issued
with respect to the First to the Fourth Series of Class 6 Preferred Shares shall not exceed two hundred million (200,000,000) in total,
and the aggregate number of shares authorized to be issued with respect to the First to the Fourth Series of Class 7 Preferred Sharesshall not exceed two hundred million (200,000,000) in total.
Ordinary Shares:
thirty-three billion (33,000,000,000) shares
The Second Series of Class 5 Preferred Shares:
four hundred million (400,000,000) shares
The Third Series of Class 5 Preferred Shares:
four hundred million (400,000,000) shares
The Fourth Series of Class 5 Preferred Shares:
four hundred million (400,000,000) shares
The First Series of Class 6 Preferred Shares:
two hundred million (200,000,000) shares
The Second Series of Class 6 Preferred Shares:
two hundred million (200,000,000) shares
The Third Series of Class 6 Preferred Shares:
two hundred million (200,000,000) shares
The Fourth Series of Class 6 Preferred Shares:
two hundred million (200,000,000) shares
The First Series of Class 7 Preferred Shares:
two hundred million (200,000,000) shares
The Second Series of Class 7 Preferred Shares:
two hundred million (200,000,000) shares
The Third Series of Class 7 Preferred Shares:
two hundred million (200,000,000) shares
The Fourth Series of Class 7 Preferred Shares:
two hundred million (200,000,000) shares(Number of Shares Constituting One (1) Unit of Shares)
Article 7.
The number of shares constituting one (1) unit of shares of the Company shall be one hundred (100) with respect to Ordinary
Shares and each class of Preferred Shares, respectively.
(Rights Pertaining to Fractional Unit Shares)
Article 8.
A Shareholder of the Company may not exercise any rights with respect to fractional unit shares held by such shareholder,
except for the following:
1.

The rights provided for in each item of Article 189, Paragraph 2 of the Companies Act;2.

The right to make a request pursuant to Article 166, Paragraph 1 of the Companies Act;3.

The right to receive an allotment of offered shares and offered stock acquisition rights in proportion to the number of shares
held by such shareholder; and4.

The right to make a request provided for in the following Article.

2

(Request for Sale of Fractional Unit Shares)
Article 9.
A shareholder of the Company may request the Company to sell to the shareholder such number of shares which will, whencombined with the fractional unit shares already held by such shareholder, constitute one (1) full unit of shares pursuant to the Share
Handling Regulations.
(Record Date)
Article 10.
1.

The Company shall deem the shareholders whose names have been entered or recorded in the latest register of shareholders
as of March 31 of each year to be the shareholders who are entitled to exercise their rights at the ordinary general meeting ofshareholders for the relevant business year.

2.

The provision of the preceding paragraph shall apply mutatis mutandis to the record date for voting rights at general meetingsof class shareholders, where there is a matter to be resolved at an ordinary general meeting of shareholders that requires, inaddition to such resolution, a resolution by the relevant general meeting of class shareholders.

3.

In addition to the preceding two paragraphs of this article, whenever necessary, the Company may, upon giving prior public
notice, fix a date as a record date and may deem the shareholders or registered share pledgees whose names have beenentered or recorded in the latest register of shareholders as of such date as the shareholders or the registered share pledgees
entitled to exercise their rights.

(Transfer Agent)
Article 11.
1.

The Company shall have a share transfer agent.

2.

The share transfer agent and the handling office thereof shall be designated by resolution of the Board of Directors, andpublic notice thereof shall be given.

3.

The establishment and retention of the register of shareholders and the register of stock acquisition rights of the Company andany other businesses with respect to the register of shareholders and the register of stock acquisition rights of the Company
shall be handled by the share transfer agent, not by the Company.

(Share Handling Regulations)
Article 12.
The registration of transfers of shares, the registration of pledges on shares, the entries or records in the register of shareholders
and in the register of stock acquisition rights, and any other handling with respect to shares and stock acquisition rights as well as thefees therefor shall be governed by the Share Handling Regulations established by the Board of Directors.
CHAPTER III
PREFERRED SHARES(Preferred Dividends)
Article 13.
1.

The Company shall distribute cash dividends from surplus on Preferred Shares (hereinafter referred to as the “Preferred
Dividends”) in such respective amount as prescribed below to the holders of Preferred Shares (hereinafter referred to as the“Preferred Shareholders”) or registered share pledgees who hold pledges over Preferred Shares (hereinafter referred to as the“Registered Preferred Share Pledgees”), whose names have been entered or recorded in the latest register of shareholders as ofMarch 31 of each year, with priority over the holders of Ordinary Shares (hereinafter referred to as the “Ordinary Shareholders”)
or registered share pledgees who hold pledges over Ordinary Shares (hereinafter referred to as the “Registered Ordinary Share
Pledgees”); provided, however, that in the event that the Preferred Interim Dividends provided for in Article 14 hereof have been
paid in the relevant business year, the amount so paid shall be deducted accordingly from the amount of the Preferred Dividends
set forth below for each relevant class of Preferred Shares.
3

The Second to the Fourth Series of Class 5 Preferred Shares:
Amount to be determined by resolution of the Boardof Directors adopted at the time of issuance of theClass 5 Preferred Shares, up to two hundred fifty(250) yen per share per year
The First to the Fourth Series of Class 6 Preferred Shares:
Amount to be determined by resolution of the Boardof Directors adopted at the time of issuance of theClass 6 Preferred Shares, up to one hundred
twenty-five (125) yen per share per
year
The First to the Fourth Series of Class 7 Preferred Shares:
Amount to be determined by resolution of the Boardof Directors adopted at the time of issuance of theClass 7 Preferred Shares, up to one hundred
twenty-five (125) yen per share per
year
2.

3.

If the aggregate amount paid to a Preferred Shareholder or Registered Preferred Share Pledgee as cash dividends from surplus in
any particular business year is less than the prescribed amount of the relevant Preferred Dividends, the unpaid amount shall not be
carried over to nor cumulated in subsequent business years.
The Company shall not distribute any dividends from surplus to any Preferred Shareholder or Registered Preferred Share Pledgeein excess of the prescribed amount of the relevant Preferred Dividends except for the distribution from surplus in the process ofthe corporate split (kyushu-bunkatsu) pursuant to Article 758, Item 8 (b) or Article 760, Item 7 (b) of the Companies Act, or the
distribution from surplus in the process of the corporate split (shinsetsu-bunkatsu) pursuant to Article 763 Paragraph 1, Item 12(b) or Article 765 Paragraph 1, Item 8 (b) of the said act.

(Preferred Interim Dividends)
Article 14.
In the event of payment of Interim Dividends provided for in Article 46 of these Articles (hereinafter referred to as the“Preferred Interim Dividends”), the Company shall make a cash distribution from surplus in such respective amount as prescribed
below for each class of Preferred Shares to the Preferred Shareholders or Registered Preferred Share Pledgees with priority over theOrdinary Shareholders or Registered Ordinary Share Pledgees.
The Second to the Fourth Series of Class 5 Preferred Shares:
Amount to be determined by resolution of the Boardof Directors adopted at the time of issuance of theClass 5 Preferred Shares, up to one hundred
twenty-five (125) yen per share
The First to the Fourth Series of Class 6 Preferred Shares:
Amount to be determined by resolution of the Boardof Directors adopted at the time of issuance of theClass 6 Preferred Shares, up to sixty-two and fifty
hundredths (62.50) yen per share
The First to the Fourth Series of Class 7 Preferred Shares:
Amount to be determined by resolution of the Boardof Directors adopted at the time of issuance of theClass 7 Preferred Shares, up to sixty-two and fifty
hundredths (62.50) yen per share(Distribution of Residual Assets)
Article 15.
1.

If the Company distributes its residual assets in cash upon liquidation, the Company shall pay cash to the Preferred Shareholders
or Registered Preferred Share Pledgees with priority over the Ordinary Shareholders or Registered Ordinary Share Pledgees insuch respective amount as prescribed below:
4The Second to the Fourth Series of Class 5 Preferred Shares:
Two thousand five hundred (2,500) yen
per share
The First to the Fourth Series of Class 6 Preferred Shares:
Two thousand five hundred (2,500) yen
per share
The First to the Fourth Series of Class 7 Preferred Shares:
Two thousand five hundred (2,500) yen
per share
2.

The Company shall not make a distribution of residual assets other than as provided for in the preceding paragraph to thePreferred Shareholders or Registered Preferred Share Pledgees.

(Voting Rights)
Article 16.
Unless otherwise provided for by laws or regulations, the Preferred Shareholders shall not have voting rights at any general
meeting of shareholders; provided, however, that the Preferred Shareholders shall have voting rights from (i) the commencement of an
ordinary general meeting of shareholders in the event that no proposal for declaration of the Preferred Dividends be paid to thePreferred Shareholders is submitted to such ordinary general meeting of shareholders or (ii) the close of an ordinary general meetingof shareholders in the event that such proposal is rejected at such ordinary general meeting of shareholders, until, in either case, aproposal for declaration of the Preferred Dividends be paid to the Preferred Shareholders is approved at an ordinary general meeting ofshareholders.
(Consolidation or Split of Preferred Shares and Rights to Be Allotted Shares, etc.)
Article 17.
1.

Unless otherwise provided for by laws or regulations, the Company shall not consolidate or split any Preferred Shares.

2.

The Company shall not grant the Preferred Shareholders any rights to be allotted shares or stock acquisition rights.

3.

The Company shall not grant the Preferred Shareholders any rights for the free allotment of shares or stock acquisition rights.

(Provisions for Acquisition)
Article 18.
1.

In respect of the Second to the Fourth Series of Class 5 Preferred Shares and/or the First to the Fourth Series of Class 6 Preferred
Shares, the Company may, after issuance of the respective Preferred Shares and after the lapse of the period designated byresolution of the Board of Directors adopted at the time of the issuance of respective Preferred Shares, acquire such Preferred
Shares, in whole or in part, in exchange for the amount of cash as deemed appropriate as the acquisition price giving due
consideration to the prevailing market conditions, as determined by such resolution of the Board of Directors, on a certain date as
separately determined by the Company by a resolution of the Board of Directors after the issue of the relevant Preferred Shares.

2.

Partial acquisition shall be effected pro rata or in lot.

(Right to Request Acquisition)
Article 19.
Any holder of the First to the Fourth Series of Class 6 or the First to the Fourth Series of Class 7 Preferred Shares may request
acquisition of such Preferred Shares during the period in which such Preferred Shareholder is entitled to request acquisition as
determined by resolution of the Board of Directors adopted at the time of issuance of such Preferred Shares, in exchange for Ordinary
Shares of the Company in the number as is calculated by the formula designated by such resolution.
(Mandatory Acquisition)
Article 20.
1.

The Company shall mandatorily acquire any of the First to the Fourth Series of Class 6 Preferred Shares or the First to the Fourth
Series of Class 7 Preferred Shares for which no request for acquisition is made during the period in which the holders of such5Preferred Shares are entitled to request acquisition on the day immediately following the last day of such period in exchange for
Ordinary Shares in the number as is obtained by dividing an amount equivalent to the subscription price per each relevant
Preferred Share by the average daily closing price (including closing bids or offered prices) of Ordinary Shares of the Company(in regular trading) as reported by the Tokyo Stock Exchange for the thirty (30) consecutive trading days (excluding a trading day
or days on which no closing price or closing bid or offered price is reported) commencing on the forty-fifth (45th) trading dayprior to such date; provided, however, that such calculation shall be made to the second decimal place denominated in yen, androunded up to one decimal place when the fraction beyond it is equal to or more than 0.05 yen, discarding amounts less than 0.05
yen. If the relevant average price is less than the amount determined by resolution of the Board of Directors adopted at the time ofissuance of respective Preferred Shares, the relevant Preferred Shares shall be acquired in exchange for Ordinary Shares in thenumber as is obtained by dividing an amount equivalent to the subscription price per each relevant Preferred Shares by an amountso determined by such resolution of the Board of Directors.
2.

After issuance of the Second to the Fourth Series of Class 5 Preferred Shares, the First to the Fourth Series of Class 6 Preferred
Shares and/or the First to the Fourth Series of Class 7 Preferred Shares, upon the occurrence of a certain event that requires theacquisition of the relevant Preferred Shares pursuant to the capital adequacy requirements applicable to the Company and which
event shall be determined by resolution of the Board of Directors adopted at the time of the issuance of the relevant Preferred
Shares, the Company shall mandatorily acquire the relevant Preferred Shares in whole on an acquisition date which falls after theoccurrence of the certain event. The acquisition date shall be either of a certain date which falls after the occurrence of therelevant certain event and which date shall be determined by such resolution of the Board of Directors, giving due consideration
to such capital adequacy requirements and other factors, or a date separately determined by the Company by resolution of theBoard of Directors adopted after the occurrence of the relevant certain event. The Company shall mandatorily acquire the relevant
Preferred Shares in exchange for Ordinary Shares or free of consideration, and whether such acquisition shall be made in
exchange for Ordinary Shares or free of consideration shall be determined by resolution of the Board of Directors adopted at thetime of issuance of the relevant Preferred Shares, giving due consideration to the market conditions and other factors. The formulafor calculating the number of Ordinary Shares in case where the relevant Preferred Shares shall be acquired in exchange for
Ordinary Shares shall be determined by resolution of the Board of Directors adopted at the time of issuance of the relevant
Preferred Shares, giving due consideration to the market price of Ordinary Shares, the subscription price of the relevant Preferred
Shares and other factors.

3.

In the calculation of the number of Ordinary Shares provided for in the preceding two paragraphs of this article, if any number
less than one (1) share is yielded, such fractions shall be handled by the method provided for in Article 234 of the Companies Act.

(Order of Priority)
Article 21.
All classes of Preferred Shares shall rank pari passu with each other in respect of the payment of Preferred Dividends andPreferred Interim Dividends and the distribution of residual assets.
(Prescription Period)
Article 22.
The provisions set forth in Article 47 of these Articles shall apply mutatis mutandis to the payment of Preferred Dividends andPreferred Interim Dividends.
CHAPTER IV.
GENERAL MEETING OF SHAREHOLDERS(Convocation)
Article 23.
1.

An ordinary general meeting of shareholders shall be convened within three (3) months from the last day of each business year.

2.

An extraordinary general meeting of shareholders shall be convened whenever necessary.

(Chairman)
Article 24.

6

1.

The Director concurrently serving as President and Representative Corporate Executive shall act as chairman of general meetingsof shareholders.

2.

If the Director concurrently serving as President and Representative Corporate Executive is unable to act as such, one of the other
Directors shall act as chairman in accordance with the order of priority determined in advance by the Board of Directors.

(Measures for Electronic Provision, Etc.)
Article 25.
1.

The Company shall, when convening a general meeting of shareholders, provide information contained in the reference
documents for the general meeting of shareholders, etc. electronically.

2.

Among the matters to be provided electronically, the Company may choose not to include all or part of the matters stipulated in
the Ordinance of the Ministry of Justice in the paper copy to be sent to shareholders who have requested it by the record date forvoting rights.

(Method of Resolution)
Article 26.
1.

Unless otherwise provided for by law or regulation or these Articles of Incorporation, resolutions of a general meeting ofshareholders shall be adopted by an affirmative vote of a majority of the voting rights of the shareholders in attendance who areentitled to vote.

2.

Resolutions of a general meeting of shareholders provided for in Article 309, Paragraph 2 of the Companies Act and resolutionsof a general meeting of shareholders for which the method of resolution provided for in the said Paragraph shall be appliedmutatis mutandis pursuant to the Companies Act and other laws and regulations shall be adopted by an affirmative vote of twothirds (2/3) or more of the voting rights of the shareholders in attendance who hold in the aggregate not less than one-third (1/3) of
the total number of voting rights of all shareholders who are entitled to vote.

(Voting by Proxy)
Article 27.
1.

Shareholders may exercise their voting rights at a general meeting of shareholders by appointing one (1) proxy who is one (1)shareholder of the Company entitled to exercise its own voting rights at such meeting.

2.

In the case of the preceding paragraph, the shareholder or the proxy thereof shall submit to the Company a document evidencing
authority of the proxy to act as such at each general meeting of shareholders.

(Minutes)
Article 28.
The proceedings of general meetings of shareholders shall be stated or recorded in the minutes pursuant to laws and regulations.
(General Meetings of Holders of Classes of Shares)
Article 29.
1.

The provisions of Articles 24, 25, 27 and 28 of these Articles shall apply mutatis mutandis to general meetings of classshareholders.

2.

The provisions of Article 26, Paragraph 1 of these Articles shall apply mutatis mutandis to the resolutions of general meetings ofclass shareholders made pursuant to Article 324, Paragraph 1 of the Companies Act.

3.

The provisions of Article 26, Paragraph 2 of these Articles shall apply mutatis mutandis to the resolutions of general meetings ofclass shareholders made pursuant to Article 324, Paragraph 2 of the Companies Act.
CHAPTER V.
DIRECTORS AND BOARD OF DIRECTORS(Number of Directors and Method of Election)
7

Article 30.
1.

The Company shall have not more than twenty (20) Directors, who shall be elected at a general meeting of shareholders.

2.

A resolution for the election of Directors shall be adopted at a general meeting of shareholders by an affirmative vote of amajority of the voting rights of the shareholders in attendance who hold voting rights representing in the aggregate one-third (1/3)
or more of the total number of voting rights of all shareholders who are entitled to vote.

3.

Resolutions for the election of Directors shall not be made by cumulative voting.

(Term of Office)
Article 31.
The term of office of Directors shall expire at the close of the ordinary general meeting of shareholders held in respect of the lastbusiness year ending within one (1) year after their election.
(Board of Directors)
Article 32.
1.

The Board of Directors shall decide the business execution of the Company and oversee the performance of duties of Corporate
Executives and Directors.

2.

Unless otherwise provided for by laws and regulations, the Board of Directors may delegate decisions on the business executionof the Company to Corporate Executives.

3.

Unless otherwise provided for by laws and regulations, the Director determined in advance by the Board of Directors shallconvene meetings of the Board of Directors and act as chairman. If the Director determined in advance by the Board of Directors
is unable to act as such, one of the other Directors shall act as Chairman and Director in accordance with the order of priority
determined in advance by the Board of Directors.

4.

Notice to convene a meeting of the Board of Directors shall be given to each Director at least three (3) days prior to the date ofsuch meeting; provided, however, that the foregoing shall not apply in cases of emergency.

5.

Unless otherwise provided for by law or regulation, resolutions of a meeting of the Board of Directors shall be adopted by anaffirmative vote of a majority of the Directors present who constitute in number a majority of all the Directors of the Company.

6.

With respect to the matters to be resolved by the Board of Directors, the Company shall deem that such matters were approved bya resolution of the Board of Directors when all the Directors express their agreement in writing or by an electromagnetic device.

7.

The proceedings of meetings of the Board of Directors shall, pursuant to laws and regulations, be stated or recorded in theminutes, to which the Directors present shall put their names and affix their seals or electronic signatures.

(Exemption from Liability of Directors)
Article 33.
In accordance with the provisions of Article 426, Paragraph 1 of the Companies Act, the Company may, by a resolution of theBoard of Directors, exempt Directors (including former Directors) from their liabilities provided for in Article 423, Paragraph 1 of theCompanies Act within the limits stipulated by laws and regulations provided that such Director has acted in good faith and withoutgross negligence.
(Limited Liability Agreement with Directors)
Article 34.
Pursuant to the provisions of Article 427, Paragraph 1 of the Companies Act, the Company may execute agreements with
Directors other than Executive Directors etc., which limit the liability of such Directors provided for in Article 423, Paragraph 1 of theCompanies Act; provided, however, that the limit of the liability under such agreements shall be the greater of an amount determinedin advance which shall not be less than ten million (10,000,000) yen or the minimum liability amount prescribed by laws or
regulations.
CHAPTER VI.
Committees
8

(Method of Appointment of Committee Members)
Article 35.
The members of the Nominating and Governance Committee (which constitutes a Nominating Committee defined in the
Companies Act), the Audit Committee, and the Compensation Committee shall be appointed from among the Directors by the
resolution of the Board of Directors.
(Authority etc. of Committees)
Article 36.
Matters concerning the Nominating and Governance Committee (which constitutes a Nominating Committee defined in the
Companies Act), the Audit Committee, and the Compensation Committee shall be governed by the Regulations thereof established byeach Committee, as well as by applicable laws and regulations, these Articles of Incorporation, or resolutions of the Board of
Directors.
CHAPTER VII.
Corporate Executives(Method of Election)
Article 37.
Corporate Executives shall be elected by the Board of Directors.
(Term of Office)
Article 38.
The term of office of Corporate Executives shall expire at the close of the first meeting of the Board of Directors convened after
the close of the ordinary general meeting of shareholders held in respect of the last business year ending within one (1) year after theirelection.
(Representative Corporate Executive and Corporate Executive with Executive Power)
Article 39.
1.

The Board of Directors shall, by its resolution, elect Representative Corporate Executive(s) from among the Corporate
Executives.

2.

The Board of Directors may, by its resolution, appoint the President and Corporate Executive, Chairman and Corporate Executive,
Deputy Chairman and Corporate Executive(s), Deputy President and Corporate Executive(s), Senior Managing Corporate
Executive (s) and Managing Corporate Executive (s).

(Exemption from Liability of Corporate Executives)
Article 40.
In accordance with the provisions of Article 426, Paragraph 1 of the Companies Act, the Company may, by a resolution of theBoard of Directors, exempt Corporate Executives (including former Corporate Executives) from their liabilities provided for in Article
423, Paragraph 1 of the Companies Act within the limits stipulated by laws and regulations provided that such Corporate Executive
has acted in good faith and without gross negligence.
CHAPTER VIII.
ACCOUNTING AUDITOR(Method of Election)
Article 41.
The Accounting Auditor shall be elected at a general meeting of shareholders.
9(Term of Office)
Article 42.
1.

The term of office of the Accounting Auditor shall expire at the close of the ordinary general meeting of shareholders held inrespect of the last business year ending within one (1) year after his/her assumption of office.

2.

The Accounting Auditor shall be deemed to be reappointed at a general meeting of shareholders provided that there is no
resolution to the contrary.
CHAPTER IX.
ACCOUNTS(Business Year)
Article 43.
The business year of the Company shall commence on April 1 of each year and end on March 31 of the following year.
(Acquisition of Own Shares)
Article 44.
Unless otherwise provided for by laws or regulations, the company may determine by a resolution of the Board of Directors toacquire its own shares by obtaining consent of the shareholders as provided for in Article 459, Paragraph 1, Item 1 of the Companies
Act.
(Year-End Dividends)
Article 45.
The Company shall distribute cash dividends from surplus (referred to as the “Year-End Dividends” in these Articles ofIncorporation) to the shareholders or registered share pledgees whose names have been entered or recorded in the latest register ofshareholders as of March 31 of each year.
(Interim Dividends)
Article 46.
By resolution of the Board of Directors, the Company may distribute cash dividends from surplus pursuant to Article 454,
Paragraph 5 of the Companies Act (referred to as the “Interim Dividends” in these Articles of Incorporation) to the shareholders or
registered share pledgees whose names have been entered or recorded in the latest register of shareholders as of September 30 of eachyear.
(Prescription Period for Payment of Dividends)
Article 47.
In the event that the dividends from surplus are to be paid in cash, the Company shall be released from the obligation to
distribute dividends from surplus if such distribution has not been accepted after the lapse of five (5) full years from the date ofcommencement of payment thereof. Year-End Dividends and Interim Dividends of the Company shall bear no interest.
Additional Rule(s)(Transitional Measure Regarding Exemption from Liability of Corporate Auditors)
Article 1.
In accordance with the provisions of Article 426, Paragraph 1 of the Companies Act, the Company may, by a resolution of theBoard of Directors, exempt Corporate Auditors (including former Corporate Auditors) from their liabilities provided for in Article
423, Paragraph 1 of the Companies Act in relation to the acts conducted before the close of the 10th Ordinary General Meeting of
Shareholders within the limits stipulated by laws and regulations provided that such Corporate Auditor has acted in good faith andwithout gross negligence.
10

- End Date of Establishment
April 2, 2001
Date of Amendment
June 27, 2002
June 27, 2003
June 29, 2004
June 29, 2005
October 1, 2005 (However, the Amendments to Articles of 5, 11, 12 (except for the amendment to Article12 changing the reference
to Article 37 into that to Article 38), 13,17, 18 and 39 shall be effective from October 3, 2005.)
June 29, 2006
June 28, 2007
(However, the Amendments to Article 6, Article 8 through Article 16, Article 19, Article 21, Article 50 and Article
51 (except for the deletions in the Articles of Incorporation pertaining to Class 9 Preferred Shares and Class 10
Preferred Shares) shall be effective from September 30, 2007.)June 26, 2009
June 27, 2013
June 25, 2015
June 29, 2016
July 6, 2018
June 29, 2022

11

Exhibit 1(d)SHARE HANDLING REGULATIONS OF
MITSUBISHI UFJ FINANCIAL GROUP, INC.,
AS AMENDED ON AUGUST 2, 2022
(ENGLISH TRANSLATION)
CHAPTER I. GENERAL PROVISIONS
Article 1. (Purpose)1.

The handling with respect to the shares and stock acquisition rights and the fees therefor provided for in Article 12 of the
Articles of Incorporation of the Company shall be governed by the rules prescribed by the Japan Securities Depository
Center, Inc., as a depository company (hereinafter referred to as the “Center”), and account management institutions, such as
securities companies and trust banks (hereinafter referred to as the “Securities Companies, Etc.”) as well as theseRegulations.

2.

The handling of special accounts opened pursuant to the agreement entered into by and between the Company and a trustbank designated by the Company and the fees therefor shall be governed by the rules prescribed by such trust bank as well as
these Regulations.

Article 2. (Share Transfer Agent)
The Company’s share transfer agent and its handling office shall be as follows:
Share Transfer Agent:
Mitsubishi UFJ Trust and Banking Corporation
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Handling Office:Mitsubishi UFJ Trust and Banking Corporation

Corporate Agency Division

4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Article 3. (Method of Making Requests or Notifications)1.

All requests or notifications to the Company shall be made in the form prescribed by the Company, except in the event wheresuch request or notification is made through the Securities Companies, Etc. and the Center or through the Securities
Companies, Etc., and in the event set forth in Article 36, Paragraph 1 hereof.

2.

In case any request or notification as described in the preceding paragraph is made by a proxy or requires consent of aprotector (hosanin) or an assistant (hojonin), a document evidencing the authority of such proxy; or such consent,
respectively, shall be submitted.

3.

In the event that the request or the notification set forth in Paragraph 1 is made through the Securities Companies, Etc. andthe Center or through the Securities Companies, Etc., such request or notification may be deemed to have been made by ashareholder himself/herself.

4.

The Company may require the person who made the request or the notification set forth in Paragraph 1 to submit materials
certifying that the person is a shareholder or a proxy himself/herself.

5.

In the event that the Company requires the person to submit the materials provided for in the preceding paragraph, theCompany shall not accept the request or the notification set forth in Paragraph 1 unless such materials are submitted.
CHAPTER II. ENTRIES OR RECORDS, ETC. IN REGISTER OF SHAREHOLDERS

Article 4. (Entries or Records in Register of Shareholders)

1.

The Company shall make entries or records in the register of shareholders in accordance with the notice concerning all
shareholders (sokabunushi tsuchi) (which means the notice provided for in Article 151 of the Law Concerning Central
Clearing of Bonds, Shares and Other Securities; hereinafter referred to as the “Clearing Law”) given by the Center.

2.

In the event that the Company receives a notice of a change of address of a person entered or recorded in the register ofshareholders (hereinafter referred to as the “Shareholder(s), Etc.”) or a notice of any other change in the matters entered orrecorded in the register of shareholders (other than an individual shareholder notice (kobetsu kabunushi tsuchi) (which means
the notice provided for in Article 154, Paragraph 3 of the Clearing Law; the same shall apply hereinafter)) through the
Securities Companies, Etc. and the Center, the Company shall change the entry or the record in the register of shareholders
pursuant to such notice.

3.

In addition to the provisions of the preceding two (2) paragraphs, in the case of the issuance of new shares or in any othercase prescribed by laws or regulations, the Company shall make entries or records in the register of shareholders.

Article 5. (Characters, Etc. to be Used in Register of Shareholders)
Entries or records in the register of shareholders of the Company shall be made using the characters and/or symbols designatedby the Center.
Article 6. (Entries or Records, Etc. in Ledger of Stock Acquisition Rights)
1.

A request for entries or records in the ledger of stock acquisition rights, a request for registration, transfer or cancellation of apledge with respect to stock acquisition rights, and/or a request for the recordation of shares held in trust or cancellation
thereof shall be made to the share transfer agent.

2.

In addition to the provisions of the preceding paragraph, the handling of stock acquisition rights may be separately
prescribed.
CHAPTER III. NOTIFICATIONS, ETC.

Article 7. (Notification of Address, and Name or Trade Name)
1.

Shareholders, Etc. shall notify the Company of their addresses and names or trade names.

2.

The notification set forth in the preceding paragraph or any change in such notification shall be made through the Securities
Companies, Etc. and the Center, except in the case of the issuance of new shares or in any other case prescribed by laws or
regulations.

Article 8. (Notification of Nonresident Shareholders, etc.)
1.

Shareholders, Etc. residing in foreign countries shall either appoint their standing proxies in Japan or designate their mailingaddresses in Japan for receiving notices and notify the Company thereof.

2.

Standing proxies shall be included in the Shareholders, Etc. set forth in Paragraph 1 of the preceding article.

3.

The notification set forth in Paragraph 1 or any change in such notification shall be made through the Securities Companies,
Etc. and the Center, except in the case of the issuance of new shares or in any other case prescribed by laws or regulations.

Article 9. (Representative of Corporation)
1.

In case a Shareholder, Etc. is a corporation, the title and the name of one (1) representative of such corporation shall be
notified.

2.

The notification set forth in the preceding paragraph or any change in such notification shall be made through the Securities
Companies, Etc. and the Center, except in the case of the issuance of new shares or in any other case prescribed by laws or
regulations.

Article 10. (Representative, Etc. of Co-owned Shares)
1.

Shareholders who co-own shares shall appoint one (1) representative on their behalf, and shall notify the address and thename or the trade name of such representative.

2.

The notification set forth in the preceding paragraph or any change in such notification shall be made through the Securities
Companies, Etc. and the Center, except in the case of the issuance of new shares or in any other case prescribed by laws or
regulations.

3.

In case a Shareholder, Etc. is an unincorporated association, the provisions of the preceding two (2) paragraphs shall apply.

Article 11. (Statutory Agent)1.

In case a statutory agent, such as a person in parental authority or a guardian (kokennin) represents a Shareholder, Etc., theaddress and the name or the trade name of such statutory agent shall be notified.

2.

The notification set forth in the preceding paragraph, or any change or cancellation thereof, shall be made through the
Securities Companies, Etc. and the Center, except in the case of the issuance of new shares or in any other case prescribed bylaws or regulations.

Article 12. (Other Notifications)1.

In addition to the notifications set forth in Article 7 hereof through the preceding article, unless otherwise designated by theCompany, any notification to the Company shall be made through the Securities Companies, Etc. and the Center, or throughthe Securities Companies, Etc., except in the case of the issuance of new shares or in any other case prescribed by laws or
regulations.

2.

Any notification that is unable to be accepted or handled by the Securities Companies, Etc. shall be made to the share transfer
agent.

Article 13. (Matters, Etc. to be Notified concerning Holders of Stock Acquisition Rights)
The provisions of Article 7 hereof through the preceding article shall apply mutatis mutandis to the matters to be notified
concerning the person who is entered or recorded and the method of notification thereof in the ledger of stock acquisition rights of theCompany, except that such notification shall be made to the share transfer agent, unless otherwise prescribed pursuant to Article 6,
Paragraph 2 hereof.

Article 14. (Making a request for delivery in paper format and lodging objections)
Requests for paper versions of reference documents for shareholder meetings provided in electronic form as stipulated in
Article 325-5, paragraph (1) of the Companies Act (hereafter referred to as a “request for delivery in paper format”) and the lodging ofobjections stipulated in paragraph (5) of the above Article shall be made in writing. However, if the request for delivery in paper
format is made through a securities company, etc. or through a securities depository center, the procedures shall be as stipulated by the
securities company, etc. or securities depository center.
CHAPTER IV. PURCHASE OF FRACTIONAL UNIT SHARESArticle 15. (Request for Purchase of Fractional Unit Shares)
In case a shareholder requests the Company to purchase fractional unit shares, such request shall be made through the Securities
Companies, Etc. and the Center in accordance with the rules prescribed by the Center.
Article 16. (Determination of Purchase Price)
The purchase price of fractional unit shares shall be the amount equivalent to the closing price per share of the shares of theCompany as reported by the Tokyo Stock Exchange on the day when a request pursuant to the preceding article reaches the handlingoffice of the share transfer agent provided for in Article 2 hereof, multiplied by the number of such fractional unit shares; provided,
however, that if there is no trading of the shares of the Company effected on such day or if such day falls on a day when the Tokyo
Stock Exchange is closed, such closing price shall be deemed the amount equivalent to the first trading price per share effected
thereafter.
Article 17. (Payment of Purchase Proceeds)
1.

The Company shall pay to the shareholder who requested for purchase of fractional unit shares the amount equivalent to thepurchase price as calculated pursuant to the preceding article after deducting the handling fees set forth in Article 40 hereof(hereinafter referred to as the “Purchase Proceeds”) on the fourth (4th) business day from the day immediately following the
day on which the purchase price is determined, unless the Company otherwise determines; provided, however, that if thepurchase price reflects the right to receive dividends from a surplus or shares arising from a stock split, etc., such purchaseprice shall be paid by the record date.

2.

Upon request of the shareholder who requested for purchase of fractional unit shares, the Purchase Proceeds may be paid bytransfer to a bank account designated by him/her or by Japan Post Bank cash payment. In such cases, the payment of thePurchase Proceeds is deemed to be completed when the procedures for such transfer or the procedures for Japan Post Bank
cash payment are taken.

Article 18. (Transfer of Shares Purchased)
The fractional unit shares for which a request for purchase is made shall be transferred to the transfer account of the Company
on the day on which the payment of the Purchase Proceeds, as prescribed in the preceding article, has been completed.
CHAPTER V. PURCHASE OF ADDITIONAL FRACTIONAL UNIT SHARES BY FRACTIONAL UNITSHAREHOLDERS
Article 19. (Request for Purchase of Additional Fractional Unit Shares by Fractional Unit Shareholders)
In case a shareholder holding fractional unit shares makes a request for the Company to sell to such fractional unit shareholder
shares held by the Company in the number as will constitute one (1) full unit of shares when added to the fractional unit shares held bysuch shareholder (hereinafter referred to as the “Request for Additional Purchase”), such request shall be made through the Securities
Companies, Etc. and the Center pursuant to the rules prescribed by the Center.
Article 20. (Restriction on Request for Additional Purchase)
If an aggregate number of fractional unit shares for which the Requests for Additional Purchase are made on the same day
exceeds the number of shares owned by the Company which shall be transferred, the Company shall not transfer any fractional unit
share for any of the Requests for Additional Purchase made on such day.
Article 21. (Effective Date of Request for Additional Purchase)
Requests for Additional Purchase shall be deemed to be made on the day when a request as described in Article 19 hereof is
accepted at the handling office of the share transfer agent provided for in Article 2 hereof.
Article 22. (Determination of Additional Purchase Price)
The additional purchase price of fractional unit shares shall be the amount equivalent to the closing price per share of the sharesof the Company as reported by the Tokyo Stock Exchange on the day when the request set forth in Article 19 hereof is accepted at thehandling office of the share transfer agent provided for in Article 2 hereof, multiplied by the number of such fractional unit shares;
provided, however, that if there is no trading of the shares of the Company effected on such day or if such day falls on a day when theTokyo Stock Exchange is closed, such closing price shall be deemed the amount equivalent to the first trading price per share effected
thereafter.
Article 23. (Timing of Transfer of Shares Additionally Purchased)
With respect to the fractional unit shares for which the Request for Additional Purchase is made, the application for the transfer
thereof to the transfer account of the shareholder who made such Request for Additional Purchase shall be made on the day on which
it is confirmed that the amount of the additional purchase price calculated pursuant to the preceding article and the fees provided for in
Article 40 hereof (hereinafter referred to as the “Proceeds from Additional Purchase”) have been remitted to the bank accountdesignated by the Company.
Article 24. (Suspension of Acceptance of Request for Additional Purchase)
1.

The Company shall suspend the acceptance of Requests for Additional Purchase during the period beginning ten(10) business days prior to any of the days provided for in the following items up to the day provided for in such item:
i. March 31;
ii. September 30; andiii.Any other determination date of shareholders.

2.

In addition to the case provided for in the preceding paragraph, when the Company or the Center deems necessary, theCompany may suspend the acceptance of Requests for Additional Purchase.
CHAPTER VI. PREFERRED SHARESArticle 25. (Exceptions for Preferred Shares)
1.

With respect to the provisions concerning the Preferred Shares, notwithstanding any other provisions hereof, the provisions of
this Chapter shall prevail and apply.

2.

All request or notification procedures, or any other handling, concerning the Preferred Shares shall be made to the sharetransfer agent, unless otherwise provided for in this Chapter.

Article 26. (Entries or Records in Register of Holders of Preferred Shares)
1.

In case of a request for entries or records in the register of holders of the Preferred Shares (hereinafter referred to as the“Registration of Transfer”), a written request therefor, with the names and seals of both the holder of the Preferred Shares
entered or recorded in the register of shareholders and the person who acquired such Preferred Shares affixed thereto, shall be
submitted together with the materials evidencing the matters regarding the Registration of Transfer.

2.

In case a request for the Registration of Transfer is made with respect to the Preferred Shares acquired due to inheritance,
merger or any other event other than assignment, a written request therefor shall be submitted together with a document
evidencing the cause for such acquisition.

Article 27. (Notifications of Holders, Etc. of Preferred Shares)
1.

Holders of the Preferred Shares and the registered preferred share pledgees, or their statutory agents, in addition to thenotification set forth in Article 7 hereof, shall notify the Company of their seal impressions; provided, however, that
foreigners may substitute their specimen signatures for seal impressions.

2.

In case of a change in the matters notified pursuant to the preceding paragraph, such change shall be notified.

3.

All requests, notifications or any other exercises of holders’ rights concerning the Preferred Shares to the Company shall bemade in the form prescribed by the Company, bearing the seal impressions notified pursuant to the provisions of Paragraph 1.

Article 28. (Registration of Transfer in Case of Special Procedures Required by Laws and Regulations)
If any special procedure is required by laws and regulations in connection with transfer of the Preferred Shares, a written request
therefor shall be submitted together with a document evidencing the completion of such procedure.
Article 29. (Registration of Pledges, Transfer or Cancellation Thereof)
In case of a request for the registration of pledges on the Preferred Shares, transfer or cancellation thereof, a written request
therefor with the names and seals of both a pledgor and a pledgee affixed thereto shall be submitted.
Article 30. (Recordation of Shares Held in Trust or Cancellation Thereof)
In case of a request for the recordation of the Preferred Shares held in trust or cancellation thereof, a written request thereforshall be submitted either by a trustor or a trustee.
Article 31. (Method for Request for Acquisition of Preferred Shares)
1.

In case of a request to the Company for acquisition of Class 6 Preferred Shares (the First to the Fourth Series) and Class 7
Preferred Shares (the First to the Fourth Series), in exchange for ordinary shares of the Company (hereinafter referred to as
the “Ordinary Shares”) in the number as is calculated by the formula set forth in Article 19 of the Articles of Incorporation,such request shall be made in the prescribed written form through the Securities Companies, Etc. or otherwise in accordancewith the rules prescribed by the Center, and a transfer account (other than a special account) which has been opened for
himself/herself for the purpose of the transfer of such Ordinary Shares shall be designated.

2.

The request provided for in the preceding paragraph may not be cancelled after submitting the written request therefor.

3.

The delivery of the Ordinary Shares set forth in Paragraph 1 shall be made by a notification of new record or an application
for the transfer of such Ordinary Shares to the transfer account designated pursuant to the provisions of such paragraph.

Article 32. (Effect of Request for Acquisition of Preferred Shares)
The request set forth in the preceding article shall come into effect when the written request therefor reaches the handling officeof the share transfer agent provided for in Article 2 hereof.
Article 33. (Notice or Public Notice of Change in Acquisition Price and Delivery Ratio of Preferred Shares)
In case the acquisition price or the delivery ratio included in the terms of the acquisition of Preferred Shares provided for in
Article 19 of the Articles of Incorporation shall be reset or adjusted, details of such reset or adjustment and the number of the Ordinary
Shares to be delivered in exchange for acquisition of Preferred Shares shall be notified or notified publicly to the holders of thePreferred Shares by the day preceding the reset date or the day on which such adjusted acquisition price or delivery ratio shall beapplied (hereinafter referred to as the “Reset Date, Etc.”); provided, however, that in case the Company is not able to give notices or
public notices of such change to the holders of the Preferred Shares by the day preceding the Reset Date, Etc., the Company shall givenotices or public notices of such change to the holders of the Preferred Shares promptly after the Reset Date, Etc.

Article 34. (Notice or Public Notice of Restriction on Period for Request for Acquisition of Preferred Shares)
In case there is a provision which excludes a certain period within the period in which the holders of the Preferred Shares areentitled to request acquisition, included in the terms of the acquisition of Preferred Shares provided for in Article 19 of the Articles ofIncorporation, the Company shall give notices or public notices of such excluded period to the holders of the Preferred Shares inadvance.
Article 35. (Procedures for Acquisition pursuant to Provisions of Acquisition of Preferred Shares)
1.

In case of acquisition of Preferred Shares set forth in Article 18 of the Articles of Incorporation, the Company shall givenotices or public notices of the amount of cash to be delivered to the holders of the Preferred Shares in exchange for theacquisition of one (1) share of such Preferred Shares and any other necessary matters to the holders of the Preferred Shares.

2.

In case of mandatory acquisition of Preferred Shares provided for in Article 20 of the Articles of Incorporation, the Company
shall give notices or public notices of (i) the acquisition date, (ii) the occurrence of any acquisition event, (iii) if the Ordinary
Shares will be delivered in exchange for the acquisition of such Preferred Shares set forth in the said article, the number of
the Ordinary Shares to be delivered, (iv) if such Preferred Shares will be acquired free of consideration, the fact that such
Preferred Shares will be acquired free of consideration, and (v) any other necessary matters, to the holders of the Preferred
Shares.

Article 36. (Delivery of New Shares upon Mandatory Acquisition of Preferred Shares)
1.

In case of mandatory acquisition of Preferred Shares provided for in Article 20 of the Articles of Incorporation, a holder of
the Preferred Shares shall give written notice of a transfer account (other than a special account) which has been opened for
himself/herself for the purpose of the transfer of such Ordinary Shares.

2.

The delivery of the Ordinary Shares set forth in the preceding paragraph shall be made by a notification of new record or an
application for the transfer of such Ordinary Shares to the transfer account notified pursuant to the provisions of thepreceding paragraph.
CHAPTER VII. METHODS BY WHICH TO EXERCISEMINORITY SHAREHOLDERS’ RIGHTS, ETC.

Article 37. (Methods by Which to Exercise Minority Shareholders’ Rights, Etc.)
1.

In case of direct exercise of the minority shareholders’ rights, etc. set forth in Article 147, Paragraph 4 of the Clearing Law
against the Company, a shareholder shall submit a document on which his/her printed name and seal is affixed, after
requesting the individual shareholder notice; provided, however, that a foreigner may substitute his/her signature for suchprinted name and seal.

2.

Notwithstanding the provisions of the preceding paragraph, in case of exercise of the minority shareholders’ rights, etc. by
the holders of the Preferred Shares, the request for the individual shareholder notice shall not be required.

3.

The provisions of Article 3, Paragraphs 2, 4 and 5 hereof shall apply mutatis mutandis to the exercise of the minority
shareholders’ rights, etc. referred to in the preceding two (2) paragraphs.

Article 38. (Agenda that are Proposed by Shareholders in Reference Materials for General Meeting of Shareholders)
In case of exercise of the shareholders’ proposal rights pursuant to the provisions of Paragraph 1 of the preceding article, if thedescription of the following matters that are included in the proposed agenda exceeds 400 characters or is otherwise determined by theCompany to be inappropriate to describe all of the matters, such description may be summarized in the reference materials for ageneral meeting of shareholders: (1) Reasons for the proposal; or (2) Matters relating to the appointment of directors, accounting
advisors, corporate auditors and accounting auditors.
CHAPTER VIII. IDENTIFICATION OF SHAREHOLDERS
Article 39. (Identification of Shareholders)1.

In case of exercises of shareholders’ rights, except as otherwise provided for in laws and regulations or these Regulations, theCompany may request the submission of materials certifying that the person who exercises the rights is a shareholder himself/
herself or a proxy thereof.

2.

The provisions of Article 3, Paragraphs 2 and 5 hereof shall apply mutatis mutandis to the identifications of shareholders set
forth in the preceding paragraph.

CHAPTER IX. HANDLING FEES
Article 40. (Handling Fees)
Fees for handling of shares of the Company (including consumption tax) shall be as follows:1.

In case of purchase of fractional unit shares pursuant to Article 15 hereof or purchase of additional fractional unit sharespursuant to Article 19 hereof:
The fee shall be the amount obtained by multiplying the purchase price provided for in Article 16 hereof by 0.75%, or
the amount obtained by multiplying the additional purchase price provided for in Article 22 hereof by 0.75%, in each caseplus consumption tax. (Fractions less than one (1) yen shall be disregarded.)2.

Fees to be paid by the Shareholders, Etc. to the Securities Companies, Etc. or the Center shall be borne by the Shareholders,
Etc.

Amendment History

October 1, 2001
June 27, 2002
April 1, 2003
July 1, 2003
June 29, 2004
June 29, 2005
October 1, 2005
May 1, 2006

June 29, 2006
September 30, 2007

January 5, 2009
May 19, 2009

June 26, 2009
June 27, 2013
June 25, 2015
August 2, 2022

Article 9 amended
Articles 1, 9, 10, 11, 23, 33, 34, 35 and 36 amended
Articles 4, 5, 24, 25, 26, 27, 29, 30, 33, 40, 41, Article 2 of Supplemental Provision amended
Articles after No. 28 were renumbered
Articles 1, 2, 32, 33, 35, 36, 37, 38, 39, 40, 41, 42, 45, 46, 47, 48 and 49 amended
Articles after No. 43 were renumbered
Articles 1, 45, 46, 47 and 48 amended
Articles 43, 44, 45, 46, 47 and 48 amended
Articles 2, 33, 35, 36, 38, 41, 43, 49 and 50 amended
Articles after No. 37 were renumbered
Articles 2, 4 through 10, 16 through 18, 20, 21, 23 through 27, 29, 31 through 33, and 35 through 50
amended
Articles after No. 37 were renumbered
Articles 1 through 3 of Supplemental Provisions amended
Articles 1, 9, 23 (newly established), 34, 39, 41, 46, 48, 49, 50, 51, 52 and Article 1 of Supplemental
Provisions amended
Articles after No. 34 were renumbered
Articles 1, 3, 5 through 7, 15 through 17, 26, 29 through 39, 42, 44, 46 through 50 amended
Articles after No. 7 were renumbered
Article 1 of Supplemental Provisions amended
Article 3 of Supplemental Provisions deleted
The Regulations were wholly amended
Article 36 amended
Article 1 of Supplemental Provisions deleted
Articles after No. 2 of Supplemental Provisions were renumbered
Articles 1, 30, and 32 through 35 amended
Articles 17, 22, 34 and 35 amended
Article 30 amended
Articles 1 through 4 of Supplemental deleted
CHAPTER Ⅲ（amendment of chapter name）
Articles 14（newly established）, 17, 21 through 23, 40 amended
Articles after No. 14 were renumbered- No further entry -Exhibit 1(e)(TRANSLATION)
MITSUBISHI UFJ FINANCIAL GROUP, INC.
AUDIT COMMITTEE CHARTER

1.

Purposei.

The Audit Committee (“Committee”), as a committee of the Board of Directors (“Board”) of Mitsubishi UFJ
Financial Group, Inc. (“Company”), shall oversee the Company’s operations as set forth herein.

ii. Pursuant to the provisions of the Companies Act of Japan, the Committee shall conduct an audit on the execution by
the members of the Board and the corporate executive officers of the Company of their respective duties andresponsibilities (“Companies Act Audit”) and shall prepare a report on such audit.
iii. The Committee shall assist the Board with oversight of the operations of the Company and its subsidiaries(collectively, “Group”) by overseeing the following:a.

financial reporting,b.

risk management and internal controls,c.

compliance,d.

internal audits, ande.

external audits.

iv. The above purpose shall include all such duties and responsibilities as are imposed by the laws, regulations and rules
in Japan (“Japanese Law”) and the U.S. Securities Exchange Act of 1934, the rules of the U.S. Securities andExchange Commission (“SEC”) and the rules of the New York Stock Exchange (“U.S. Law” and, together withJapanese Law, “Applicable Laws”) on companies, including the Company, which are publicly listed in Japan and in
the United States.
2.

Compositioni.

Membershipa.

The Committee shall consist of five or more non-executive directors who shall be appointed as members of
the Committee (“Committee Members”) by the Board each year based on recommendations of theNominating and Governance Committee of the Company.

b.

The Committee shall, as appropriate, engage in communications with and, to the extent it deems necessary,
provide its view to, the Board and the Nominating and Governance Committee of the Company regarding
appointments of Committee Members.

c.

Each Committee Member shall have such qualifications as are required by Applicable Laws for members ofaudit committees, including the independence requirements under U.S. Law, and have such expertise andwork experience as are necessary to fulfill the duties and responsibilities of a Committee Member. The
Committee shall collectively maintain appropriate knowledge and expertise relating to the capital markets
and the financial sector.

d.

At least one Committee Member shall be an “audit committee financial expert” as determined by the Boardin accordance with Item 16A of Form 20-F.

ii. The Board shall appoint a Committee Member who is an “independent outside director” as such term is defined by
Japanese Law to serve as the Committee Chair. The Committee Chair shall not concurrently serve as the chair of any
other committees of the Board (except any such subcommittee as the Committee may create pursuant to Section 4.ⅴ
hereof). The Committee Chair shall (1) call meetings of the Committee, (2) establish the agendas for the meetings in
consultation with the other Committee Members, (3) preside at the meetings, and (4) communicate and share
information with the other Committee Members and the Chairs of the Board and the other committees of the Board
as appropriate.
iii. Each Committee Member shall report to the Board on the Committee’s discussions and actions as appropriate.

iv. The Committee may have up to two Committee Members engaged in Committee activities on a full-time basis(“full-time committee members”). The full-time committee members shall attend meetings of the other committeesof the Board, and the Executive Committee, the Disclosure Committee and other committees and organizations of
the Company as appropriate, and shall report to the Committee on such meetings.
v.

3.

The Committee shall establish a secretariat office to assist the Committee in administering and managing theoperations of the Committee. The secretariat office shall be staffed with employees from the Internal Audit Divisionof the Company and such other persons as the Committee determines appropriate.

Operationsi.

The Committee shall meet once a month unless it otherwise determines, in which case it shall meet as it deems
necessary.

ii. The quorum for a meeting of the Committee shall be a simple majority of the Committee Members.
iii. The Committee may, as it deems necessary, have the external auditor, other members of the Board, the Chief Audit
Officer (Group CAO), the Chief Compliance Officer (Group CCO), the Chief Financial Officer (Group CFO) andother corporate executive officers and employees of the Company, and any external adviser retained pursuant to
Section 4.ⅵ hereof attend its meetings.
iv.

The Committee shall, as necessary, communicate with other members of the Board and the corporate executive
officers and other employees of the Company. The Committee shall, as appropriate, exchange opinions with therepresentative corporate executive officers of the Company.

v.

The Committee shall, as necessary, obtain reports from management and other employees of the Company withrespect to such matters subject to the oversight of the audit committees, audit and supervisory committees, andcorporate auditors (“audit committees and other committees”) of the Company’s subsidiaries as the Committee
deems may have a material impact on the Group.

vi. The Committee shall, as it deems necessary, obtain the assistance of the Group CAO and Internal Audit Division of
the Company, through their cooperation with the internal audit divisions of the Company’s subsidiaries or otherappropriate means, with the Committee’s coordination with the audit committees and other committees of theCompany’s subsidiaries.
vii. The Committee shall have prepared and maintained minutes of its meetings to properly record its discussions,deliberations, reports, and other actions and activities. The Committee may, as it deems appropriate, make suchminutes, in part or whole, available to other members of the Board.
viii. The Committee shall report to the Board on the Committee’s discussions, deliberations, reports, and other actions
and activities as appropriate, and shall make recommendations to the Board as necessary.
ix. The Committee shall conduct an annual evaluation of the performance of its duties and responsibilities and shallreport the results of such evaluation to the Board.
4.

Authorityi.

The Committee shall have such authority as is necessary to fulfill its purpose set forth in Section 1 hereof and its
duties and responsibilities set forth in Section 5 hereof in accordance with Applicable Laws and any such otherauthority as is granted to it by Applicable Laws.

ii. The Committee shall have the authority to request such information relating to the operations of the Group as it
deems necessary from the external auditor, other members of the Board, and the corporate executive officers andother employee of the Company in accordance with Applicable Laws.
iii. The Committee shall have the authority to request, in accordance with Applicable Laws, from the audit committees
and other committees of the Company’s subsidiaries such information relating to their discussions, deliberations,
reports, and other actions and activities, as well as investigations conducted by them and other matters as it deems
necessary.
iv. The Committee shall have the authority to conduct any such investigation relating to the Group’s operations andassets and other matters as it deems necessary in accordance with Applicable Laws.
v.

The Committee shall have the authority to delegate any of its duties and responsibilities, together with the necessary
authority, to one or more subcommittees consisting of one or more Committee Members as the Committee
determines appropriate.

vi. The Committee shall have the authority, in its sole discretion, to retain and obtain the advice and assistance of suchexternal advisers as it determines necessary.
vii. The Company shall provide such funding and other resources as the Committee determines appropriate for thefulfillment of the Committee’s purpose and duties and responsibilities set forth herein.
5.

Duties and Responsibilitiesi.

Companies Act Auditsa.

The Committee shall conduct a Companies Law Audit on the execution by the members of the Board andthe corporate executive officers of the Company of their respective duties and responsibilities based onsuch audit policy and plans as the Committee adopts for each fiscal year.

b.

The Committee shall, as appropriate, report to the Board on its audit policy and plan for such Companies
Law Audit.

c.

The Committee shall report to the Board on the results of its Companies Act Audit in the form of an audit
report to be included in the Company’s Annual Business Report for each fiscal year or otherwise presented.

ii. Oversight of Financial Reportinga.

The Committee shall discuss with the external auditor and management, and examine, the following
matters relating to financial reporting:•

The Company’s financial statements and accompanying notes prepared in accordance withJapanese Law and generally accepted accounting principles in Japan (“Japanese GAAP”)(including the Company’s non-consolidated and consolidated financial statements andaccompanying schedules prepared in accordance with the Companies Act and the Company’s nonconsolidated and consolidated full-year and semi-annual financial statements and accompanying
notes prepared in accordance with the Financial Instruments and Exchange Act of Japan)(collectively, the “Japanese GAAP Financial Statements”).

•

The Company’s financial information prepared in accordance with U.S. Law and generally
accepted accounting principles in the United States (“U.S. GAAP”) and filed with the SEC(including the Company’s financial statements, accompanying notes and financial analysis anddiscussion filed on Form 20-F with, and the Company’s semi-annual financial statements,
accompanying notes and financial analysis and discussion submitted on Form 6-K to, the SEC)
(collectively, the “U.S. GAAP Financial Information”).

•

The Company’s semi-annual securities report prepared in accordance with Japanese GAAP
(including the Company’s semi-annual securities report prepared in accordance with the Financial
Instrument and Exchange Act) (“Japanese GAAP Semi-annual Securities Report”).

b.

The Committee shall examine the financial information included in the Company’s earnings releases(kessan-tanshin), press releases, investor relations materials and other information that are published inconnection with the Japanese GAAP Financial Statements, the U.S. GAAP Financial Information and theJapanese GAAP Semi-annual Securities Report prior to their publication, considering discussions of theDisclosure Committee and the Executive Committee and other relevant information.

c.

The Committee shall discuss with the external auditor, the Internal Audit Division and management, andexamine, the Group’s critical accounting policies and practices (including those accounting policies andpractices which relate to such items as critical accounting estimates, items requiring a high degree of
judgment, items involving uncertainty such as contingent liabilities, and related party transactions) andrelated disclosures.

d.

The Committee shall obtain reports from the external auditor and management with respect to any material
communications relating to the Group’s financial and accounting matters between the external auditor andmanagement in accordance with Applicable Laws. The Committee shall discuss with the external auditor
and management, and examine, disagreements between them regarding such matters to resolve suchdisagreements.

e.

The Committee shall prepare a report based on the result of its examination of the Company’s nonconsolidated and consolidated financial statements and accompanying schedules prepared in accordancewith Japanese GAAP and present such report to the Board.

iii. Oversight of Risk Management and Internal Controls

a.

The Committee shall obtain reports from management, the Internal Audit Division and the external auditor
on, examine and evaluate any significant risks and the risk management and corporate governanceframeworks of the Group and the operation of such frameworks.

b.

The Committee shall communicate and coordinate, as appropriate, with the Risk Committee of theCompany with respect to the Group’s risk management through such means as the participation of the fulltime committee members in meetings of the Risk Committee and discussions with the Risk Committee, as
necessary.

c.

The Committee shall obtain reports from management, the Internal Audit Division and the external auditoron, discuss and examine the following matters relating to the Group’s internal control over financial
reporting:d.

•

The Group’s accounting and financial reporting processes and the frameworks for internal
controls over the Group’s accounting and financial reporting and the operation of suchframeworks.

•

Management’s assessment of the effectiveness of such processes and internal controls, the Internal
Audit Division’s audit relating to management’s assessment of the same, and the external auditor’s
evaluation of the same.

•

Any significant deficiency, material weakness or other similar issue identified through suchassessment, audit or evaluation.

•

Management’s responses to any such deficiency, weakness or issue.

•

Any fraud, or reasonably suspected fraud, that involves management or other employees who havea significant role in the Group’s processes and internal controls described above.

The Committee shall obtain reports from management, the Internal Audit Division and the external auditoron, discuss and examine the framework for the disclosure controls for the Company’s disclosures and theoperation of such framework.

iv. Oversight of Compliancev.

a.

The Committee shall oversee the framework for the Group’s compliance with Applicable Laws and otherapplicable laws, regulations and rules and the operation of such framework.

b.

The Committee shall obtain reports from management on, and examine, the status of any material failure of
the Group to comply with Applicable Laws or other applicable laws, regulations or rules, and any legal
proceedings or regulatory matters.

c.

The Committee shall review the Group’s codes of ethics and other internal rules, monitor compliance withsuch codes and rules, and evaluate the framework for ensuring compliance with such codes and rules.

d.

The Committee shall establish procedures (i) pertaining to complaints received by the Company regarding
accounting, internal accounting controls and auditing matters and (ii) for the confidential, anonymous
submission by Group employees of concerns regarding questionable accounting or auditing matters, andshall handle any such complaint and concern received through such procedures in a confidential andappropriate manner. The Committee shall obtain reports from the audit committees and other committees of
the Company’s subsidiaries on, and examine, their handling of concerns received directly from subsidiary
employees pertaining to the same matters.

Oversight of Internal Auditsa.

The Committee shall review and evaluate the framework for the Group’s internal audit function and theoperation of such framework.

b.

The Committee shall obtain the Internal Audit Division’s explanations on, and discuss with such Division,
such Division’s proposed audit plan, risk assessment based on which such plan has been prepared, audit
focus areas, and staffing plan including retention of any external expert, and shall approve such audit plan.

c.

The Committee shall obtain the Internal Audit Division’s reports on, and discuss with such Division, any
significant matters relating to an internal audit, including the execution, findings and results of, andcommunications with management regarding, the internal audit, and shall provide instructions, asnecessary, to such Division.

d.

The Committee shall examine the evaluation of the Internal Audit Division periodically performed, and any
recommendation made, by an external third party and shall evaluate the Internal Audit Division’s responses
to such evaluation or recommendation.

e.

The Committee shall obtain reports from the Internal Audit Division on, and evaluate, the performance ofits duties and responsibilities, and such Division’s measures designed to continuously improve and enhance
the internal audit function, including audit methodologies and human resource development, and theimplementation of such measures.

f.

The Committee shall determine the appointment of the Group CAO and other personnel who perform
significant internal audit functions, and shall communicate such determination to the Nominating andGovernance Committee of the Board.

g.

The Committee shall perform an annual evaluation of the Group CAO, considering the performance of theInternal Audit Division, and submit such evaluation to the Compensation Committee of the Board.

vi. Oversight of External Auditsa.

The Committee shall oversee the work of the external auditor and obtain reports directly from the external
auditor.

b.

The Committee shall set a policy for the appointment, termination and non-appointment of the external
auditor and, in accordance with such policy, determine whether to submit to shareholder vote a proposal forthe appointment, termination and non-appointment of the external auditor.

c.

The Committee shall obtain the external auditor’s explanations on the external auditor’s proposed annual
audit plan, any material changes in such plan, the risk assessment based on which such plan has been
prepared, audit focus areas, estimated audit work hours and other related matters, and shall discuss andevaluate such plan.

d.

The Committee shall obtain from, and discuss with, the external auditor an estimate of audit work hours
and a fee proposal for auditing the Company’s financial statements and internal control over financial
reporting based on the external auditor’s audit plan, and shall approve such estimate and proposal.

e.

The Committee shall, as appropriate, obtain the external auditor’s reports on, and discuss with the external
auditor, any significant matters relating to the Company’s accounting, internal controls and financial
reporting, including the execution, findings and results of, and communications with management
regarding, the external auditor’s audit, and shall examine and evaluate the audit performed by the external
auditor.

f.

The Committee shall pre-approve any non-audit services to be provided to the Group by the external
auditor and any of its domestic and overseas member firms by ensuring, prior to the provision of suchservices, that such non-audit services are not prohibited under Applicable Laws or other applicable laws,
regulations or rules. The Committee shall establish appropriate policies and procedures for pre-approving
such non-audit services.

g.

The Committee shall obtain explanations from the external auditor on, and evaluate, the external auditor’scompliance, and the framework for ensuring compliance, with the auditor independence standards under
Applicable Laws and other applicable laws, regulations and rules.

h.

The Committee shall obtain from the external auditor reports on, and examine, any material issues raised by
any quality-control reviews (including any internal or peer quality-control reviews and any inquiries,
inspections or investigations by governmental or professional authorities in Japan, the United States andother jurisdictions) and any steps taken to deal with such issues, and shall evaluate the quality of services
provided by the external auditor.

i.

The Committee shall, at least annually, receive the external auditor’s explanation or presentation on, andevaluate, the external auditor’s audit quality-control framework (including the frameworks for executing
audit work with required expertise and for ensuring compliance with the applicable independence
requirements).

j.

The Committee shall examine and evaluate whether all of the matters that the external auditor is required tocommunicate to the Committee under Applicable Laws and other applicable laws, regulations and rules
have been appropriately communicated to the Committee.

k.

The Committee shall set the Group’s hiring policies for employees or former employees of the external
auditor and evaluate the implementation of such policies.

6.

Coordination with the Audit Committees and Other Committees of the Company’s Subsidiaries
i.

The Committee shall monitor the oversight of the operations of the Company’s domestic and overseas subsidiaries
by their audit committees and other committees through coordination with such audit committees and othercommittees in accordance with Sections 6.ⅱ and 6.ⅲ hereof to ensure the effective and efficient oversight of theoperations of the Group.

ii. The Committee shall coordinate with the audit committees and other committees of MUFG Bank, Ltd., Mitsubishi
UFJ Trust and Banking Corporation, Mitsubishi UFJ Securities Holding Co., Ltd., Mitsubishi UFJ AssetManagement Co., Ltd., Mitsubishi UFJ NICOS Co., Ltd. and other companies in the following manner or otherwise
as appropriate:a.

The Committee shall obtain reports from such audit committees and other committees on, and discuss withsuch audit committees, the audit plans, the execution of such plans and the audit reports relating to theirrespective Companies Act Audits.

b.

The Committee shall obtain from such audit committees and other committees information relating to their
discussions and other activities and, if determined necessary by the Committee, request such audit
committees and other committees to submit minutes of their meetings and other meeting materials andotherwise provide reports on their discussions and other activities in accordance with Applicable Laws.

c.

The full-time committee members shall, as necessary, attend meetings of such audit committees and othercommittees and report to the Committee on such meetings as appropriate.

The Committee shall coordinate with the audit committees and other committees of the Company’s othersubsidiaries in Japan, as necessary, by obtaining reports from such audit committees and other committees on, anddiscussing with such audit committees and other committees, their respective Companies Act Audits and othermatters.
In coordinating with the audit committees and other committees of the Company’s subsidiaries in Japan as set
forth above, the Committee shall consider all applicable requirements under Japanese Laws, including any
requirement for such audit committees and other committees to maintain their independence with respect todecision-making.
iii. The Committee shall, as necessary, coordinate with the audit committees and other committees of the Company’s
overseas subsidiaries as well and request for information from such audit committees and other committees. In
making such coordination and request, the Committee shall, as necessary, coordinate with the audit committees andother committees of the Company’s domestic subsidiaries that are intermediate holding companies of such overseas
subsidiaries. In coordinating with such audit committees and other committees, the Committee shall consider therequirements of all applicable local and other laws, regulations and rules to which such audit committees and othercommittees are subject, including any requirement for such audit committees and other committees to maintain their
independence with respect to decision-making.
iv.

7.

The Committee shall, as necessary, provide the audit committees and other committees of the Company’s
subsidiaries with appropriate assistance, including the following, designed to enhance the oversight of the operationsof the Group by such audit committees and other committees:a.

plan and provide training and other sessions for the members of such audit committees and othercommittees, andb.

implement, as appropriate, measures to promote interactions and communications among the Committee
and such audit committees and other committees to enhance the performance of their duties andresponsibilities, including providing such audit committees and other committees with information to help
enhance their administration and operations.

Amendmentsi.

The Committee shall annually review this Charter in terms of its effectiveness, appropriateness and other criteria,
considering the Committee’s self-evaluation conducted in accordance with Section 3.ⅸ hereof, and determine
whether the Charter should be amended. If the Committee determines that any amendment to the Charter isnecessary, the Committee shall propose such amendment to the Board.
End

Date of Establishment
December 1, 2017

Dates of Amendments
July 1, 2018
July 1, 2022
February 3, 2023
July 1, 2024

Exhibit 2(c)DESCRIPTION OF SECURITIESCommon Stock
We summarize below the material provisions of our Articles of Incorporation, our share handling regulations and the Companies
Act as they relate to a type of joint stock company known as kabushiki kaisha, within which we fall. Because it is a summary, this
discussion should be read together with our Articles of Incorporation and share handling regulations, each attached as an exhibit to ourannual report on Form 20-F.
GeneralA joint stock company is a legal entity incorporated under the Companies Act. The investment and rights of the shareholders ofa joint stock company are represented by shares of stock in the company and shareholders’ liability is limited to the amount of thesubscription for the shares. Our authorized common share capital is comprised of 33,000,000,000 shares of common stock with no parvalue.
We may issue shares from our authorized but unissued share capital following a resolution to that effect by our board of
directors. An increase in our authorized share capital is only possible by amendment of our Articles of Incorporation, which generally
requires shareholders’ special approval.
In order to assert shareholder rights against us, a shareholder must have its name and address registered on our register ofshareholders in accordance with the Companies Act and our share handling regulations. The registered holder of deposited shares
underlying the ADSs is the depositary for the ADSs, or its nominee. Accordingly, holders of ADSs will not be able to assert
shareholder rights other than as provided in the agreement among us, the depositary and the holders of the ADSs.
Under the Act on Book-Entry Transfer of Company Bonds, Shares, etc., the shares of all Japanese companies listed on any
Japanese stock exchange, including our shares, are traded without share certificates through entry in the books maintained under acentral clearing system.
Dividends
Dividends are distributed in proportion to the number of shares owned by each shareholder on the record date for the dividend.
Dividends for each financial period may be distributed following shareholders’ approval at a general meeting of shareholders.
Payment of dividends on common stock is subject to the preferential dividend rights of holders of preferred stock.
Under the Banking Law and our Articles of Incorporation, our financial accounts are closed on March 31 of each year, anddividends, if any, are paid to shareholders of record as of March 31 following shareholders’ approval at a general meeting ofshareholders. In addition to year-end dividends, our board of directors may by resolution declare an interim cash dividend toshareholders of record as of September 30 of each year. Under the Companies Act, distribution of dividends will take the form of
distribution of surplus (as defined below). We will be permitted to make distributions of surplus to our shareholders any number oftimes per fiscal year pursuant to resolutions of our general meetings of shareholders, subject to certain limitations described below.
Distributions of surplus are in principle required to be authorized by a resolution of a general meeting of shareholders. Distributions ofsurplus would, however, be permitted to be made pursuant to a resolution of our board of directors if:(a)our Articles of Incorporation so provide (our Articles of Incorporation currently contain no such provisions);

1

(b)

the normal term of office of our directors is one year; and(c)certain conditions concerning our non-consolidated annual financial statements and certain documents for the latest
fiscal year as required by an ordinance of the Ministry of Justice are satisfied.

In an exception to the above rule, even if the requirements described in (a) through (c) are not met, we are permitted to make
distributions of surplus in cash to our shareholders by resolutions of the board of directors once per fiscal year as mentioned above
concerning interim cash dividend.
Under the Companies Act, distributions of surplus may be made in cash or in kind in proportion to the number of shares ofcommon stock held by each shareholder. A resolution of a general meeting of shareholders or our board of directors authorizing a
distribution of surplus must specify the kind and aggregate book value of the assets to be distributed, the manner of allocation of such
assets to shareholders, and the effective date of the distribution. If a distribution of surplus is to be made in kind, we may, pursuant to a
resolution of a general meeting of shareholders or (as the case may be) our board of directors, grant to our shareholders the right torequire us to make such distribution in cash instead of in kind. If no such right is granted to shareholders, the relevant distribution of
surplus must be approved by a special resolution of a general meeting of shareholders. See “Common Stock—Voting Rights” below.
Under the Companies Act, we may make distributions of surplus to the extent that the aggregate book value of the assets to be
distributed to shareholders does not exceed the distributable amount (as defined below) as of the effective date of such distributions ofsurplus. The amount of surplus (the “surplus”) at any given time shall be the amount of our assets and the book value of our treasury
stock after subtracting the amounts of items (1) through (5) below as they appear on our non-consolidated balance sheet as of the endof our last fiscal year, and after reflecting the changes in our surplus after the end of our last fiscal year, by adding the amounts ofitems (6), (7) and (8) below and/or subtracting the amounts of items (9), (10) and (11) below:(1)

our liabilities;(2)

our stated capital;(3)

our additional paid-in capital;(4)

our accumulated legal reserve;(5)other amounts as are set out in an ordinance of the Ministry of Justice;(6)(if we transferred our treasury stock after the end of the last fiscal year) the transfer price of our treasury stock after
subtracting the book value thereof;(7)(if we decreased our stated capital after the end of the last fiscal year) the amount of decrease in our stated capital(excluding the amount transferred to additional paid-in capital or legal reserve);(8)(if we decreased our additional paid-in capital or legal reserve after the end of the last fiscal year) the amount of decreasein our additional paid-in capital or legal reserve (excluding the amount transferred to stated capital);(9)(if we cancelled our treasury stock after the end of the last fiscal year) the book value of the cancelled treasury stock;(10) (if we distributed surplus to shareholders after the end of the last fiscal year) the amount of the assets distributed toshareholders by way of such distribution of surplus; and(11) other amounts as are set out in an ordinance of the Ministry of Justice.
A distributable amount (the “distributable amount”) at any given time shall be the aggregate amount of (a) the surplus, (b) theamount of profit as recorded for the period after the end of our last fiscal year until the date of an extraordinary settlement of account(if any) as is set out in an ordinance of the Ministry of Justice and2(c) the transfer price of our treasury stock in the same period, after subtracting the amounts of the following items:(1)

the book value of our treasury stock;(2)(if we transferred our treasury stock after the end of the last fiscal year) the transfer price of our treasury stock;(3)

the losses recorded for the period after the end of our last fiscal year until the date of an extraordinary settlement ofaccount (if any) as set out in an ordinance of the Ministry of Justice; and(4)other amounts as set out in an ordinance of the Ministry of Justice.

In Japan, the “ex-dividend” date and the record date for any dividends precede the date of determination of the amount of thedividend to be paid. The market price of shares generally becomes ex-dividend on the first business day prior to the record date. Under
our Articles of Incorporation, we are not obligated to pay any dividends which are left unclaimed for a period of five years after thedate on which they first became payable.
Capital and Reserves
Under the Companies Act, we may reduce our additional paid-in capital or legal reserve (without limitation as to the amount ofsuch reduction) generally by resolution of a general meeting of shareholders and, if so resolved in the same resolution, may accountfor the whole or any part of the amount of such reduction as stated capital. We may also reduce our stated capital generally by special
resolution of a general meeting of shareholders and, if so resolved in the same resolution, such reduction may account for the whole or
any part of the amount of such reduction as additional paid-in capital or legal reserve. Conversely, we may reduce our surplus andincrease either (i) stated capital or (ii) additional paid-in capital and/or legal reserve by the same amount, in either case by resolutionof a general meeting of shareholders.
Stock Splits
Stock splits of our outstanding stock may be effected at any time by resolution of the board of directors. When a stock split is tobe effected, we may increase the authorized share capital to cover the number of shares to be increased by the stock split by amending
our Articles of Incorporation by resolution of the board of directors without approval by special resolution of the general meeting ofshareholders, unless more than one class of stock is issued and outstanding. We must give public notice of the stock split, specifying arecord date at least two weeks prior to the record date.
Unit Share (tan-gen kabu) System
We have adopted a unit share system, where 100 shares of either common or preferred stock shall each constitute a unit.
Under the unit share system, each unit is entitled to one voting right. A holder of less than one unit has no voting right. Our
Articles of Incorporation provide that the holders of shares constituting less than a full unit will not have shareholder rights except for
those specified in the Companies Act or an ordinance of the Ministry of Justice, including rights (i) to receive dividends, (ii) to receive
cash or other assets in case of consolidation or split of shares, stock-for-stock exchange or stock-for-stock transfer, corporate split ormerger or (iii) to be allotted rights to subscribe for free for new shares and stock acquisition rights when such rights are granted toshareholders. Shareholders may require us to purchase shares constituting less than a unit at the current market price. In addition,holders of shares constituting less than a unit may require us to sell them such number of shares, which, when combined with thenumber of shares already held by such holder, shall constitute a whole unit of share; provided that we will be obliged to comply withsuch request only when we own a sufficient number of shares to accommodate the desired sale and purchase. The board of directors
may reduce the number3

of shares constituting a unit or cease to use the unit share system by amendments to the Articles of Incorporation without shareholders’approval even though amendments to the Articles of Incorporation generally require a special resolution of the general meeting ofshareholders.
General Meeting of Shareholders
The ordinary general meeting of our shareholders is usually held in June of each year in Tokyo. In addition, we may hold anextraordinary general meeting of shareholders whenever necessary by giving at least two weeks’ advance notice to shareholders whoare entitled to vote at the relevant general meeting of shareholders. The record date for ordinary general meetings of our shareholders
is March 31.
Any shareholder holding at least 300 voting rights or 1% of the total number of voting rights for six consecutive months or
longer may propose a matter to be considered at a general meeting of shareholders by submitting a written request to a director at least
eight weeks prior to the date of the meeting. We may limit the number of matters that can be proposed by an eligible shareholder to
10. The number of minimum voting rights, minimum percentage and time period necessary for exercising the minority shareholder
rights described above may be decreased or shortened if our Articles of Incorporation so provide. Our Articles of Incorporation
currently contain no such provisions.
Voting Rights
A holder of shares of our common stock is generally entitled to one voting right for each unit of common stock held. The
following shares of common stock are not entitled to voting rights even when such shares constitute a whole unit, and such shares ofcommon stock are not considered when determining whether a quorum exists for a shareholders’ meeting:•treasury stock;•shares held by a company in which we and/or our subsidiaries own 25% or more of the total voting rights; and•shares issued after the record date as a result of conversion of convertible stock, exercise of stock acquisition rights, andfractional shareholders becoming a shareholder of a whole unit share.

On the other hand, holders of certain class of preferred stock shall be entitled to a voting right for each unit of preferred stock
held under certain conditions provided for by relevant laws or regulations and our Articles of Incorporation, for example, when aproposal to pay the full amount of preferential dividends on any class of preferred stock in compliance with the terms of such preferredstock is not included in the agenda of the relevant shareholders meeting. See “Preferred Stock” below.
Under our Articles of Incorporation, except as otherwise provided by law or by other provisions of our Articles of Incorporation,a resolution can be adopted at a shareholders’ meeting by the holders of a majority of the voting rights represented at the meeting. The
Companies Act and our Articles of Incorporation require a quorum of not less than one-third of the total number of voting rights forelection of our directors.
The Companies Act and our Articles of Incorporation provide that a quorum of not less than one-third of outstanding voting
rights, excluding those owned by our subsidiaries and affiliates of which we own, directly or indirectly, 25 percent or more, must bepresent at a shareholders’ meeting to approve specified corporate actions, such as:•

the amendment of our Articles of Incorporation, except in some limited cases;•

the repurchase of our own stock from a specific shareholder other than our subsidiary;4•the consolidation of shares;•

the offering to persons other than shareholders of stock at a specially favorable price, or of stock acquisition rights orbonds or notes with stock acquisition rights with specially favorable conditions;•the exemption from liability of a director or corporate auditor, with certain exceptions;•a reduction in stated capital with certain exceptions in which a shareholders’ resolution is not required;•a distribution of in-kind dividends which meets certain requirements;•

the transfer of the whole or an important part of our business, except in some limited circumstances;•

the acquisition of the whole business of another company, except in some limited circumstances;•a dissolution, merger or consolidation, except for certain types of mergers;•a stock-for-stock exchange (kabushiki-kokan) or stock-for-stock transfer (kabushiki-iten), except in some limited
circumstances; and•a corporate split, except in some limited circumstances.

A special resolution representing at least two-thirds of the voting rights represented at the meeting is required to approve theseactions.
Our Articles of Incorporation do not include any provision that grants shareholders cumulative voting rights at elections of
directors.
Subscription Rights
Holders of our shares have no preemptive rights under our Articles of Incorporation. Under the Companies Act, however, ourboard of directors may determine that shareholders be given subscription rights in connection with a particular issue of new shares. In
this case, these subscription rights must be given on uniform terms to all shareholders, and if a specified record date is set, it must be
announced in a public notice at least two weeks prior to the record date. A notification to each individual shareholder must also begiven at least two weeks prior to the subscription date.
Under the Companies Act, rights to subscribe for new shares may not be transferred; however, we may allot stock acquisitionrights to shareholders without consideration, and such rights will be transferable.
Stock Acquisition Rights
We may issue stock acquisition rights (shinkabu yoyakuken), which in the United States are often in the form of warrants, orbonds with stock acquisition rights that cannot be detached (shinkabu yoyakuken-tsuki shasai), which in the United States are often in
the form of convertible bonds or bonds with non-detachable warrants. Except where the issuance would be on “specially favorable”
conditions, the issuance of stock acquisition rights or bonds with stock acquisition rights may be authorized by a resolution of ourboard of directors. Upon exercise of the stock acquisition rights, the holder of such rights may acquire shares by paying the applicable
exercise price or, if so determined by a resolution of our board of directors, by making a substitute payment, such as having theconvertible bonds redeemed for no cash in lieu of the exercise price.
Liquidation Rights
Upon our liquidation, the assets remaining after payment of all debts, liquidation expenses, taxes and preferred distributions toholders of shares of our preferred stock will be distributed among the holders of shares of our common stock in proportion to thenumber of shares they own.

5Transfer Agent
Mitsubishi UFJ Trust and Banking is the transfer agent for our common stock. The office of Mitsubishi UFJ Trust and Banking
for this purpose is located at 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan. Mitsubishi UFJ Trust and Banking
maintains our register of shareholders.
Reports to Shareholders
We furnish to our shareholders notices, in Japanese, of shareholders’ meetings, annual business reports, including our financial
statements, and notices of resolutions adopted at our shareholders’ meetings.
Record Dates
As stated above, March 31 is the record date for the payment of annual dividends (if any), the determination of shareholders
entitled to vote at ordinary general meetings of our shareholders, and the determination of class shareholders entitled to vote at
meetings of our class shareholders if any matter to be resolved at an ordinary general meeting of our shareholders requires a resolution
by our class shareholders in addition to a resolution by our shareholders. September 30 is the record date for the payment of interim
dividends, if any. In addition, by a resolution of our board of directors and after giving at least two weeks’ prior public notice, we may
at any time set a record date in order to determine the shareholders who are entitled to the rights pertaining to our shares.
Repurchase of Our Shares
We may repurchase our own shares:•

through the Tokyo Stock Exchange or other stock exchanges on which our shares are listed, if authorized by a resolutionof a general meeting of shareholders or our board of directors;•

by way of a tender offer, if authorized by a resolution of a general meeting of shareholders or our board of directors;•

from a specific party, if authorized by a special resolution of a general meeting of shareholders and we give notice thereof
to shareholders prior to such general meeting, in general;•from all shareholders of a specific class of shares offering to sell their shares, if authorized by a resolution of a general
meeting of shareholders or our board of directors and we give a public notice or notice thereof to all of the shareholders (ifwe repurchase any class of preferred stock, notices to all shareholders of the relevant class of preferred stock); or•from our subsidiaries, if authorized by a resolution of the board of directors.

When the repurchase is made by us from a specific party, as authorized by a special resolution of a general meeting ofshareholders, any shareholder may make a demand to a director, five days or more prior to the relevant shareholders’ meeting, that we
also repurchase the shares held by that shareholder. However, no such right will be available if the shares have a market price, and if
the purchase price does not exceed the then market price calculated in a manner set forth in an ordinance of the Ministry of Justice.
Repurchase of our own shares described above must satisfy various specified requirements. In general, the same restrictions on
the distributable amount as described in the seventh paragraph under “—Common Stock—Dividends.” are applicable to therepurchase of our own shares, so the total amount of the repurchase price may not exceed the distributable amount.
We may hold our own shares so repurchased without restrictions. In addition, we may cancel or dispose of our repurchased
shares by a resolution of our board of directors.

6

American Depositary Shares
The Bank of New York Mellon will issue ADRs. Each ADR will represent ownership interests in ADSs. Each ADS represents
one share of our common stock. Each ADS is held by MUFG Bank, acting as custodian, at its principal office in Tokyo, on behalf of
The Bank of New York Mellon, acting as depositary. Each ADS will also represent securities, cash or other property deposited withThe Bank of New York Mellon but not distributed to ADS holders. The Bank of New York Mellon’s corporate trust office is locatedat 240 Greenwich Street, New York, New York 10286 and its principal executive office is located at 240 Greenwich Street,
New York, New York 10286.
You may hold ADSs either directly or indirectly through your broker or other financial institution. If you hold ADSs directly,
you are an ADS holder. This description assumes you hold your ADSs directly. If you hold the ADSs indirectly, you must rely on theprocedures of your broker or other financial institution to assert the rights of ADS holders described herein. You should consult withyour broker or financial institution to find out what those procedures are.
The Bank of New York Mellon will actually be the registered holder of the common stock, so you will have to rely on it toexercise your rights as a shareholder. Our obligations and the obligations of The Bank of New York Mellon are set out in a deposit
agreement among us, The Bank of New York Mellon and you, as an ADS holder. The deposit agreement and the ADSs are governedby New York law.
The following is a summary of the material terms of the deposit agreement. Because it is a summary, it does not contain all theinformation that may be important to you. For more complete information, you should read the entire deposit agreement and the formof ADR, each attached as an exhibit to our annual report on Form 20-F.
Share Dividends and Other Distributions
The Bank of New York Mellon has agreed to pay to you the cash dividends or other distributions it or the custodian receives onshares of common stock or other deposited securities, after deducting its fees and expenses. You will receive these distributions inproportion to the number of shares your ADSs represent.
Cash. The Bank of New York Mellon will convert any cash dividend or other cash distribution we pay on our common stock
into U.S. dollars, if it can do so on a reasonable basis and can transfer the U.S. dollars to the United States. If that is not possible or if
any approval from the Japanese government is needed and cannot be obtained, the deposit agreement allows The Bank of New York
Mellon to distribute the Japanese yen only to those ADS holders to whom it is possible to do so. The Bank of New York Mellon willhold the Japanese yen it cannot convert for the account of the ADS holders who have not been paid. It will not invest the Japanese yen
and it will not be liable for any interest.
Before making a distribution, any withholding taxes that must be paid under Japanese law will be deducted. The Bank of New
York Mellon will distribute only whole U.S. dollars and cents and will round fractional cents to the nearest whole cent. If the relevant
exchange rates fluctuate during a time when The Bank of New York Mellon cannot convert the Japanese currency, you may lose someor all of the value of the distribution.
Shares. The Bank of New York Mellon may distribute new ADSs representing any shares we may distribute as a dividend or
free distribution, if we furnish The Bank of New York Mellon promptly with satisfactory evidence that it is legal to do so. The Bankof New York Mellon will only distribute whole ADSs. It will sell shares which would require it to issue a fractional ADS anddistribute the net proceeds in the same way as it distributes cash dividends. If The Bank of New York Mellon does not distributeadditional ADSs, each ADS will also represent the new shares.
Rights to receive additional shares. If we offer holders of our common stock any rights to subscribe for additional shares ofcommon stock or any other rights, The Bank of New York Mellon may, after consultation

7

with us, make those rights available to you. We must first instruct The Bank of New York Mellon to do so and furnish it withsatisfactory evidence that it is legal to do so. If we do not furnish this evidence and/or do not give these instructions, and The Bank of
New York Mellon decides that it is practical to sell the rights, The Bank of New York Mellon will sell the rights and distribute theproceeds in the same way as it distributes cash dividends. The Bank of New York Mellon may allow rights that are not distributed orsold to lapse. In that case, you will receive no value for them.
If The Bank of New York Mellon makes rights available to you, upon instruction from you it will exercise the rights andpurchase the shares on your behalf. The Bank of New York Mellon will then deposit the shares and issue ADSs to you. It will only
exercise the rights if you pay it the exercise price and any other charges the rights require you to pay.
U.S. securities laws may restrict the sale, deposit, cancellation and transfer of the ADSs issued after the exercise of the rights.
For example, you may not be able to trade the ADSs freely in the United States. In this case, The Bank of New York Mellon may issue
the ADSs under a separate restricted deposit agreement which will contain the same provisions as the deposit agreement, except forchanges needed to put the restrictions in place. The Bank of New York Mellon will not offer you rights unless those rights and the
securities to which the rights relate are either exempt from registration or have been registered under the U.S. Securities Act withrespect to a distribution to you. We will have no obligation to register under the Securities Act those rights or the securities to which
they relate.
Other distributions. The Bank of New York Mellon will send to you anything else we distribute on deposited securities by anymeans it thinks is legal, fair and practical. If it cannot make the distribution in that way, The Bank of New York Mellon has a choice.
It may decide to sell what we distributed and distribute the net proceeds in the same way as it does with cash. Or, it may decide to holdwhat we distributed, in which case ADSs will also represent the newly distributed property.
The Bank of New York Mellon is not responsible if it decides that it is unlawful or impractical to make a distribution available
to any ADS holders. We have no obligation to register ADSs, shares, rights or other securities under the Securities Act. We also haveno obligation to take any other action to permit the distribution of ADSs, shares, rights or anything else to ADS holders. This meansthat you may not receive the distributions we make on our shares or any value for them if it is illegal or impractical for us or The Bankof New York Mellon to make them available to you.
Deposit, Withdrawal and Cancellation
The Bank of New York Mellon will issue ADSs if you or your broker deposits shares or evidence of rights to receive shareswith the custodian. Upon payment of its fees and expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or
fees, The Bank of New York Mellon will register the appropriate number of ADSs in the names you request and will deliver the ADSs
at its corporate trust office to the persons you request.
In certain circumstances, subject to the provisions of the deposit agreement, The Bank of New York Mellon may issue ADSs
before the deposit of the underlying shares. This is called a pre-release of ADSs. A pre-release is closed out as soon as the underlying
shares are delivered to the depositary. The depositary may receive ADSs instead of the shares to close out a pre-release. The
depositary may pre-release ADSs only under the following conditions:•

Before or at the time of the pre-release, the person to whom the pre-release is made must represent to the depositary in
writing that it or its customer, as the case may be, owns the shares to be deposited;•

The pre-release must be fully collateralized with cash or collateral that the depositary considers appropriate; and•The depositary must be able to close out the pre-release on not more than five business days’ notice.

8

The pre-release will be subject to whatever indemnities and credit regulations that the depositary considers appropriate. In
addition, the depositary will limit the number of ADSs that may be outstanding at any time as a result of a pre-release.
You may turn in your ADSs at the Corporate Trust Office of The Bank of New York Mellon’s office. Upon payment of its feesand expenses and of any taxes or charges, such as stamp taxes or stock transfer taxes or fees, The Bank of New York Mellon will
deliver (1) the underlying shares to an account designated by you and (2) any other deposited securities underlying the ADS at theoffice of the custodian. Or, at your request, risk and expense, The Bank of New York Mellon will deliver the deposited securities at its
Corporate Trust Office.
The ADSs may only be presented for cancellation and release of the underlying shares of common stock or other deposited
securities in multiples of 100 ADSs. Holders of ADRs evidencing less than 100 ADSs are not entitled to delivery of any underlying
shares or other deposited securities unless ADRs, together with other ADRs presented by the same holder at the same time, represent
in the aggregate at least 100 ADSs. If any ADSs are surrendered but not cancelled pursuant to the preceding sentence, The Bank of
New York Mellon will execute and deliver an ADR or ADRs evidencing the balance of ADSs not so cancelled to the person or
persons surrendering the same.
Voting Rights
If you are an ADS holder on a record date fixed by The Bank of New York Mellon, you may instruct The Bank of New York
Mellon to vote the shares underlying your ADSs at a meeting of our shareholders in accordance with the procedures set forth in thedeposit agreement.
The Bank of New York Mellon will notify you of the upcoming meeting and arrange to deliver our voting materials to you. The
notice shall contain (a) such information as is contained in such notice of meeting, (b) a statement that as of the close of business on a
specified record date you will be entitled, subject to any applicable provision of Japanese law and our Articles of Incorporation, toinstruct The Bank of New York Mellon as to the exercise of the voting rights, if any, pertaining to the amount of shares or otherdeposited securities represented by your ADSs, and (c) a brief statement as to the manner in which such instructions may be given,
including an express indication that instructions may be given to The Bank of New York Mellon to give a discretionary proxy to aperson designated by us. Upon your written request, received on or before the date established by The Bank of New York Mellon forsuch purpose, The Bank of New York Mellon shall endeavor in so far as practicable to vote or cause to be voted the amount of sharesor other deposited securities represented by your ADSs in accordance with the instructions set forth in your request. So long asJapanese law provides that votes may only be cast with respect to one or more whole shares or other deposited securities, The Bank of
New York Mellon will aggregate voting instructions to the extent such instructions are the same and vote such whole shares or otherdeposited securities in accordance with your instructions. If, after aggregation of all instructions to vote received by The Bank of New
York Mellon, any portion of the aggregated instructions constitutes instructions with respect to less than a whole share or otherdeposited securities, The Bank of New York Mellon will not vote or cause to be voted the shares or other deposited securities to whichsuch portion of the instructions apply. The Bank of New York Mellon will not vote or attempt to exercise the right to vote that attaches
to the shares or other deposited securities, other than in accordance with the instructions of the ADS holders. If no instructions arereceived by The Bank of New York Mellon from you with respect to any of the deposited securities represented by your ADSs on or
before the date established by The Bank of New York Mellon for such purpose, The Bank of New York Mellon shall deem you tohave instructed The Bank of New York Mellon to give a discretionary proxy to a person designated by us with respect to suchdeposited securities and The Bank of New York Mellon shall give a discretionary proxy to a person designated by us to vote suchdeposited securities, provided that no such instruction shall be given with respect to any matter as to which we inform The Bank of
New York Mellon (and we have agreed to provide such information as promptly as practicable in writing) that (1) we do not wish suchproxy given, (2) substantial opposition exists or (3) such matter materially and adversely affects the rights of holders of shares.

9

We cannot assure you that you will receive the voting materials in time to ensure that you can instruct The Bank of New York
Mellon to vote your shares. In addition, The Bank of New York Mellon is not responsible for failing to carry out voting instructions orfor the manner of carrying out voting instructions as long as it has acted in good faith. This means that you may not be able to exercise
your right to vote and there may be nothing you can do if your shares are not voted as you requested.
Payment of Taxes
You will be responsible for any taxes or other governmental charges payable on your ADSs or on the deposited securities
underlying your ADSs. The Bank of New York Mellon may refuse to transfer your ADSs or allow you to withdraw the deposited
securities underlying your ADSs until those taxes or other charges are paid. It may apply payments owed to you or sell deposited
securities underlying your ADSs to pay any taxes owed and you will remain liable for any deficiency. If it sells deposited securities, it
will, if appropriate, reduce the number of ADSs to reflect the sale and pay to you any property remaining after it has paid the taxes.
Reclassifications, Recapitalizations and Mergers
If we:•

reclassify, split up or consolidate any of our shares or the deposited securities;•

recapitalize, reorganize, merge, liquidate, consolidate or sell all or substantially all of our assets or take any similar action;or•

distribute securities on the shares that are not distributed to you, then,(1)

the cash, shares or other securities received by The Bank of New York Mellon will become deposited securities and each
ADS will automatically represent its equal share of the new deposited securities unless additional ADSs are issued; and(2)

The Bank of New York Mellon may, and will if we request, issue new ADSs or ask you to surrender your outstanding
ADSs in exchange for new ADSs, identifying the new deposited securities.

Amendment and Termination
We may agree with The Bank of New York Mellon to amend the deposit agreement and the ADSs without your consent for any
reason. If the amendment adds or increases fees or charges, except for taxes and other governmental charges, registration fees, cable,telex or facsimile transmission costs, delivery costs or other such expenses, or prejudices an important right of ADS holders, it will
only become effective three months after The Bank of New York Mellon notifies you of the amendment. At the time an amendment
becomes effective, you are considered, by continuing to hold your ADS, to agree to the amendment and to be bound by the ADSs andthe deposit agreement as amended. However, no amendment will impair your right to receive the deposited securities in exchange foryour ADSs.
The Bank of New York Mellon will terminate the deposit agreement if we ask it to do so, in which case it must notify you atleast 30 days before termination. The Bank of New York Mellon may also terminate the deposit agreement if The Bank of New York
Mellon has told us that it would like to resign and we have not appointed a new depositary bank within 60 days.
If any ADSs remain outstanding after termination, The Bank of New York Mellon will stop registering the transfers of ADSs,
will stop distributing dividends to ADS holders and will not give any further notices or do anything else under the deposit agreement
other than:(1)collect dividends and distributions on the deposited securities;(2)

sell rights and other property offered to holders of deposited securities; and

10

(3)

deliver shares and other deposited securities in exchange for ADSs surrendered to The Bank of New York Mellon.

At any time after one year following termination, The Bank of New York Mellon may sell any remaining deposited securities.
After that, The Bank of New York Mellon will hold the money it received on the sale, as well as any other cash it is holding under thedeposit agreement for the pro rata benefit of the ADS holders that have not surrendered their ADSs. It will not invest the money andhas no liability for interest. The Bank of New York Mellon’s only obligations will be to account for the money and other cash andwith respect to indemnification and to retain depositary documents. After termination, our only obligations will be with respect toindemnification and to pay certain amounts to The Bank of New York Mellon.
Limitations on Obligations and Liability to ADS Holders
The deposit agreement expressly limits our obligations and the obligations of The Bank of New York Mellon. It also limits ourliability and the liability of The Bank of New York Mellon. We and The Bank of New York Mellon:•

are only obligated to take the actions specifically set forth in the deposit agreement without negligence or bad faith;•

are not liable if either is prevented or delayed by law, any provision of our Articles of Incorporation or circumstances
beyond our control from performing our obligations under the deposit agreement;•

are not liable if either exercises or fails to exercise discretion permitted under the deposit agreement;•

have no obligation to become involved in a lawsuit or other proceeding related to the ADSs or the deposit agreement on
your behalf or on behalf of any other party unless indemnified to their satisfaction; and•may rely upon any advice of or information from legal counsel, accountants, any person depositing shares, any ADS
holder or any other person believed in good faith to be competent to give them that advice or information.

In the deposit agreement, we and The Bank of New York Mellon agree to indemnify each other for liabilities arising out of acts
performed or omitted by the other party in accordance with the deposit agreement.
Requirements for Depositary Actions
Before The Bank of New York Mellon will issue or register transfer of an ADS, make a distribution on an ADS, or permit
withdrawal of shares, it may require:•

payment of stock transfer or other taxes or other governmental charges and transfer or registration fees charged by third
parties for the transfer of any shares or other deposited securities;•

production of satisfactory proof of the identity and genuineness of any signature or other information it deems necessary;
and•compliance with regulations it may establish, from time to time, consistent with the deposit agreement, including
presentation of transfer documents.

The Bank of New York Mellon may refuse to deliver, transfer, or register transfers of ADSs generally when its transfer books
are closed, when our transfer books are closed or at any time if it or we think it advisable to do so.
You have the right to cancel your ADSs and withdraw the underlying shares at any time except:•

when temporary delays arise because: (1) The Bank of New York Mellon has closed its transfer books or we have closed
our transfer books; (2) the transfer of shares is blocked to permit voting at a shareholders’ meeting; or (3) we are paying adividend on the shares;11•

when you or other ADS holders seeking to withdraw shares owe money to pay fees, taxes and similar charges; or•when it is necessary to prohibit withdrawals in order to comply with any laws or governmental regulations that apply to
ADSs or to the withdrawal of shares or other deposited securities.

This right of withdrawal may not be limited by any other provision of the deposit agreement.
Reports and Other Communications
The Bank of New York Mellon will make available for your inspection at its corporate trust office any reports andcommunications, including any proxy soliciting material, that it receives from us, if those reports and communications are both(a) received by The Bank of New York Mellon as the holder of the deposited securities and (b) made generally available by us to theholders of the deposited securities. If we ask it to, The Bank of New York Mellon will also send you copies of those reports it receives
from us.
Inspection of Transfer Books
The Bank of New York Mellon will keep books for the registration and transfer of ADSs, which will be open for your inspection
at all reasonable times. You will only have the right to inspect those books if the inspection is for the purpose of communicating withother owners of ADSs in connection with our business or a matter related to the deposit agreement or the ADSs.
Preferred Stock
The following is a summary of information concerning the shares of our preferred stock, including brief summaries of therelevant provisions of our Articles of Incorporation, the share handling regulations and the Companies Act as currently in effect. The
detailed rights of our preferred stock are set out in our Articles of Incorporation and the resolutions of our board of directors relating to
the issuance of the relevant stock.
General
We are authorized under our Articles of Incorporation to issue four classes of preferred stock totaling 800,000,000 shares ofpreferred stock, including 400,000,000 shares of each of the second to fourth series of class 5 preferred stock (provided the aggregate
number of shares authorized to be issued with respect to the three series of class 5 preferred stock does not exceed 400,000,000
shares), 200,000,000 shares of each of the first to fourth series of class 6 preferred stock (provided the aggregate number of sharesauthorized to be issued with respect to the four series of class 6 preferred stock does not exceed 200,000,000 shares), and 200,000,000
shares of each of the first to fourth series of class 7 preferred stock (provided the aggregate number of shares authorized to be issued
with respect to the four series of class 7 preferred stock does not exceed 200,000,000 shares).
Our preferred stock has equal preference over our shares of common stock with respect to dividend entitlements and distributionof assets upon our liquidation. However, holders of shares of our preferred stock are not entitled to vote at general meetings ofshareholders, subject to the exceptions provided under our Articles of Incorporation.
We may acquire shares of second to fourth series of class 5 and first to fourth series of class 6 preferred stock at our discretion
pursuant to the terms and conditions provided by our Articles of Incorporation and the resolution of our board of directors. The
provisions for acquisition of shares of second to fourth series of class 5 and first to fourth series of class 6 preferred stock will be
determined by the board of directors at the time of issuance of such preferred stock. When issued, any holder of shares of first to
fourth series of class 6 preferred stock or first to fourth series of class 7 preferred stock may request acquisition of shares of suchpreferred stock12

in exchange for shares of our common stock during the period determined by resolution of the board of directors adopted at the time ofissuance of such shares of preferred stock. Any shares of first to fourth series of class 6 preferred stock or first to fourth series of class
7 preferred stock for which no request for acquisition in exchange for shares of our common stock is made during such period will bemandatorily acquired on the day immediately following the last day of such period (the “Mandatory Acquisition Date”) in the number
obtained by dividing an amount equivalent to the subscription price per each relevant share of preferred stock by the average
daily closing price of our common stock as reported by the Tokyo Stock Exchange for the 30 trading days commencing on the 45th
trading day prior to the Mandatory Acquisition Date.
Additionally, in order to enable the relevant preferred stock to meet the criteria for Additional Tier 1 capital under Basel III
requirements as adopted by the Financial Services Agency of Japan, the terms of the second to fourth series of class 5 as well as all theseries of class 6 and class 7 preferred stock have mandatory acquisition provisions. When newly issuing these preferred stock, theboard of directors will determine events that will require us to acquire the relevant preferred stock pursuant to the capital adequacy
requirements applicable to us. Upon the occurrence of such events, we will acquire all the relevant preferred stock on an acquisitiondate, which is a date determined by the board of directors either at the time of the issuance or after the occurrence of such event. We
shall acquire the relevant preferred stock in exchange for common stock or for no consideration as determined by the board of
directors at the time of the issuance, considering certain factors including the market conditions. The formula to be used in exchanging
the preferred stock for common stock will also be determined by the board of directors at the time of the issuance.
Preferred Dividends
In priority to the payment of dividends to holders of our common stock, the amount of preferred dividends payable each fiscal
year for each class of our preferred stock is set forth below:•

second to fourth series of class 5 preferred stock: to be set by resolution of our board of directors at the time of issuance,
up to a maximum of ¥250.00 per share;•first to fourth series of class 6 preferred stock: to be set by resolution of our board of directors at the time of issuance, up
to a maximum of ¥125.00 per share; and•first to fourth series of class 7 preferred stock: to be set by resolution of our board of directors at the time of issuance, up
to a maximum of ¥125.00 per share.

In the event that our board of directors decides to pay an interim dividend to holders of record of our common stock as of
September 30 of any year, we will, in priority to the payment of that interim dividend, pay a preferred interim dividend in the amountspecified in our Articles of Incorporation to holders of record of our preferred stock as of September 30 of the same year. The amountof any preferred interim dividend will be deducted from the preferred dividend payable on the relevant class of our preferred stock forthe same fiscal year.
No preferred dividend will be paid on any of our preferred stock converted into our common stock for the period from the datefollowing the record date for the preferred dividend or preferred interim dividend last preceding the relevant conversion date to therelevant conversion date, but the common stock issued upon conversion will be entitled to receive any dividend payable to holders ofrecord of common stock upon the next succeeding record date for common stock dividends.
No payment of dividends on our preferred stock or any other shares can be made unless we have a sufficient distributableamount and a resolution to distribute such distributable amount is obtained at the relevant ordinary general meeting of shareholders, inthe case of annual preferred dividends, or at the board of directors, in the case of preferred interim dividends.
Dividends on our preferred stock are non-cumulative. If the full amount of any dividend is not declared on our preferred stock in
respect of any fiscal year, holders of our preferred stock do not have any right to receive

13

dividends in respect of the deficiency in any subsequent fiscal year, and we will have no obligation to pay the deficiency or to pay any
interest regardless of whether or not dividends are paid in respect of any subsequent fiscal year. The holders of our preferred stock are
not entitled to any further dividends or other participation in or distribution of our profits.
Liquidation Rights
In the event of our voluntary or involuntary liquidation, record holders of our preferred stock are entitled, equally in rank asamong themselves, to receive before any distribution out of our residual assets is made to holders of our common stock, a distribution
out of our residual assets of:•¥2,500 per share of second to fourth series of class 5 preferred stock;•¥2,500 per share of first to fourth series of class 6 preferred stock; and•¥2,500 per share of first to fourth series of class 7 preferred stock.

The holders of our preferred stock are not entitled to any further dividends or other participation in or distribution of our residual
assets upon our liquidation.
Voting Rights
No holder of our preferred stock has the right to receive notice of, or to vote at, a general meeting of shareholders, except asotherwise specifically provided under our Articles of Incorporation or other applicable law. Under our Articles of Incorporation,holders of our preferred stock will be entitled to receive notice of, and have one voting right per unit of preferred stock at, our general
meetings of shareholders:•from the commencement of our ordinary general meeting of shareholders if an agenda for approval to declare a preferred
dividend is not submitted to such meeting; or•from the close of any ordinary general meeting of shareholders if a proposed resolution to declare a preferred dividend is
not approved at such meeting.
In each case, holders of our preferred stock will be entitled to receive notice of and vote at the relevant general meetings ofshareholders unless and until such time as a resolution of an ordinary general meeting of shareholders declaring a preferred dividend ispassed.

14

Exhibit 11Excerpts from MUFG’s Compliance Rules(English Translation)(Objective)
Article 1.
These rules prescribe basic matters relating to compliance with laws and regulations.
(Revision and abolition)
Article 2.
These rules may be revised or abolished by decision of the Executive Committee; provided, however, that any material revision
or abolishment of rules relating to the duties and responsibilities of the Board of Directors or Member of the Board of Directors shallbe made pursuant to a resolution of the Board of Directors.
(Definitions)
Article 4.
(1)

In these rules, “laws and regulations” mean laws and government ordinances to be strictly observed by MUFG personnel whencarrying out business operations, as well as MUFG’s Articles of Incorporation, Code of Ethics, and other rules and regulations
established according to the laws and government ordinances above.

(2)

In these rules, “compliance” means understanding the purpose and contents of laws and regulations properly, and behaving in an
appropriate manner so as not to violate applicable laws and regulations.

(3)

In these rules, “affiliates” is a general term for MUFG’s consolidated subsidiaries and affiliated companies accounted for by theequity-method.

(4)

In these rules, “MUFG Group” means MUFG and its affiliates.

(Fundamental Policy)
Article 5.
The MUFG Ethical Framework and Code of Conduct are the foundations of compliance at MUFG.
(Responsibilities of Members of the Board of Directors, Corporate Executives (Shikko Yaku), Executive officers (Shikko Yakuin) and
Board of Directors)
Article 6.
(1)

In accordance with the “Ethical Framework and Code of Conduct”, MUFG Members of the Board of Directors, corporate
executives (shikko yaku) and executive officers (shikko yakuin) must carry out their responsibilities with the recognition thatcompliance is one of the most important objectives of management.

(2)

The board of directors must establish systems necessary for compliance and seek to achieve and maintain compliance.

(Responsibility of MUFG Managing Directors)
Article 7.
Managing Directors must implement compliance within their division.
(Responsibility of MUFG Employees)
Article 8.
(1)

MUFG employees must ensure compliance while performing their duties, and act in accordance with the “Ethical Framework
and Code of Conduct”.

(2)

MUFG employees must strive to acquire adequate knowledge of the laws and regulations which are necessary to their business
operations.

(Directors in charge of the Global Compliance Division and the Global Financial Crimes Division)
Article 10.
(1)

The Directors in charge of the Global Compliance Division and the Global Financial Crimes Division must report mattersconcerning compliance to the Board of Directors or Executive Committee as necessary.

(2)

When there is a risk of an unavoidable conflict of interest with a different division that the director in charge of the Global
Compliance Division is also in charge of, to insure the independence of the Global Compliance Division, the managing directorof the Global Compliance Division shall report to the President and CEO. The President and CEO will report to the Board of
Directors or Executive Committee as necessary. Appropriate action shall also be taken to avoid conflicts of interest in cases otherthan those mentioned above.

(Office in Charge of Compliance)
Article 11.
(1)

The Global Compliance Division is in charge of overseeing the overall compliance framework.
*

(4)

*

*

When the Global Compliance Division receives reports of problems or possible problems relating to compliance, or when it
discovers such problems itself, it must take necessary actions.

Article 11. ii
The Global Financial Crimes Division is in charge of overseeing the Group’s measures and management systems concerning
global financial crimes, including money laundering prevention, economic sanctions measures, and bribery and corruption prevention.
(Compliance Officers Responsible)
Article 12.
The head of each business group is the compliance officer responsible for that business group. The compliance officer
responsible oversees their business group and is responsible for any compliance related planning and supervision within theirjurisdiction.
(Group Chief Compliance Officer)
Article 13.
(1)

A Group Chief Compliance Officer (CCO) (primarily the responsibility of the Global Compliance Division and the Global
Financial Crimes Division) will be appointed based on Article 19 Paragraph 2 of the Organizational Regulations. When there is
no appointed Group CCO, the director overseeing the Global Compliance Division will act as CCO.

(2)

The Group CCO (or in cases where there is no Group CCO, the CCO) shall oversee the coordination of division complianceofficers (defined in Article 14), the chief compliance officer of each company in the MUFG Group, and any persons filling boththose roles, as well as provide necessary guidance, advice and instruction based on the management agreement.

(3)

The Group CCO (or in cases where there is no Group CCO, the CCO) can request reports on compliance matters from thespecified compliance officers responsible (defined in Article 12).
***

(Division Compliance Officers)
Article 14.
(1)

A chief manager in each division will serve as division compliance officer. Each managing director may appoint a person
equivalent to a chief manager as division compliance officer. In such cases, the managing director should report to the Global
Compliance Division in the Corporate Center, the compliance officer responsible for each business group (defined in Article 12),or the Global Compliance Division.

(2)

The division compliance officer is responsible for the strengthening of compliance in each division and for planning andsupervising compliance related issues regarding business matters under their jurisdiction. Furthermore, the compliance officer

will carry out duties including the management and compliance checking of documents, gathering information concerning theestablishment and revision of laws relating to the duties of each division, working to improve general compliance conditions, andwill play a central role in implementing compliance measures in each division.
(Responsibilities of Managing Directors)
Article 15.
When the managing director receives reports of problems or possible problems relating to compliance from the divisioncompliance officer, or when they discover such problems themselves, they must consult with the managing director of the Global
Compliance Division as well as provide orders and instructions to the division compliance officer. Furthermore, in each businessgroup, they must report to the compliance officer responsible.
(Compliance Reporting System)
Article 16.
(1)

When a MUFG employee discovers problems or possible problems relating to compliance, they must report directly to theirsenior managers and the division compliance officer as stipulated in Article 14.

(2)

A person receiving such report must treat the report with appropriate care in working towards a resolution. Furthermore, theinformation relating to any reporting person must be treated with appropriate caution.

(3)

When the compliance officers receive reports of or otherwise detect violations of laws and regulations, or possible violations,they must report directly to the Global Compliance Division or the Global Financial Crimes Division and the managing directorof their division. In cases where the managing director is involved in inappropriate conduct or behavior (including cases wheresuch involvement is suspected or where a determination as to such involvement is difficult to make), such reports must be madeto the Global Compliance Division or the Global Financial Crimes Division.

(4)

When a MUFG employee does not wish to report to their senior managers and the division compliance officer due to said officer
being complicit in a violation of laws and regulations or the possibility thereof, or when no response or remediation is madedespite an employee having made a report, the employee can report directly to the Global Compliance Division. In each businessgroup, reports can be made to necessary parties other than those mentioned above, based on the instructions of the complianceofficer responsible (defined in Article 12).

(5)

When a report of a problem or possible problem relating to compliance are made, it shall be prohibited to take any action to seek
or identify the person who made the report or take any adverse employment action against such person for making the report.
Excerpts from MUFG’s Compliance Manual(English Translation)

I.

Legal issues regarding Management(3)

Board Director and Corporate Executive(4)

Transactions involving a conflict of interest
When a Board Member or a Corporate Executive engages in a transaction involving a conflict of interest, theBoard Member or the Corporate Executive must receive the approval of the Board of Directors.

III. Specific issues(5)

Conflicts of interest
When a conflict of interest arises in connection with an operation involving any of the MUFG Group companies,
Directors or employees, on one hand, and a customer or other third-party, the Director or employee, the MUFG Group
company to which such Director or employee belongs, or any other MUFG Group company, on the other, the MUFG
Group company, Director or employee must perform the operation in a proper manner.
Excerpts from MUFG’s Rules of Employment(English Translation)(Disciplinary Action)
Article 40.
The company will take disciplinary action when employees take the following prohibited actions:(17) If an employee violated the rules of employment or any other applicable internal rules.

Exhibit 11(b)(TRANSLATION)
MUFG INSIDER TRADING CONTROL POLICY

1.

PurposeThe purpose of the MUFG Insider Trading Control Policy (the “Policy”) is to prevent Insider Trading in MUFG Group by
establishing the basic rules for controlling information on non-public facts regarding MUFG Group and Customers that the
MUFG Group Staff came to know, and the approach towards securities investments by the Staff.

2.

Amendment and Abolishment
Amendment or abolishment of this Policy must be made solely upon the resolution of the Executive Committee.

3.

Responsible Division
The Global Compliance Division is in charge of this Policy.

4.

Definitions
In this Policy, the following terms shall have the following meanings:i.

Holding Company:“Holding Company” means Mitsubishi UFJ Financial Group, Inc.

ii. MUFG Group:“MUFG Group” is a collective term for the Holding Company and Subsidiaries.
iii. Subsidiary:
A “Subsidiary” means a company stated as belonging to another company’s corporate group in the company’s mostrecent of the statements, annual securities reports, quarterly securities reports, or semiannual securities reports under
Article 166, Paragraph (5) of the Financial Instruments and Exchange Act.
iv. Subsidiaries:“Subsidiaries” means subsidiary companies, subsidiary corporations, and affiliated corporations as prescribed in
Article 2 of the Banking Act and Article 4-2 of the Order for Enforcement of the Banking Act.
v.

Insider Trading:“Insider Trading” means:a.

the trading of securities of a company or its affiliates,b.

by the Staff who come to know Material Non-Public Information,c.

which is not acceptable by applicable local laws and regulations.

vi. Staffa.

“Officers” means directors, outside directors, corporate executives, executive officers, audit committee
members, and outside audit committee members of MUFG Group.

b.

“Staff” means “Officers” set forth in vi. (a), full- and part-time employees and temporary staff of MUFG
Group, and all other persons engaged in any of MUFG Group’s operations (including employees acceptedon secondment and employees holding concurrent positions).

vii. Material Non-Public Information:“Material Non-Public Information (MNPI)” means:a.

information relating to a company or its affiliates,b.

which has not yet been published or is not otherwise generally available, andc.

which a reasonable investor would regard as being material to their judgment in holding, selling orpurchasing securities of the company or its affiliates, or which may have an impact, either positive or
negative, on the price of the securities.

viii. MUFG Companies MNPI:“MUFG Companies MNPI” means MNPI relating to the Holding Company and Listed Companies which is a
Subsidiary of the Holding Company (“MUFG Companies”) that the Staff may come to know in the course ofbusiness.
“Listed Companies” means companies that fall under any of the following:a.

“Japanese Listed Companies” means Japanese issuers of listed securities, over-the-counter traded securities
or tradable securities (including listed investment corporations), i.e. a “listed company, etc.” defined in
Article 163, Paragraph (1) of the Financial Instruments and Exchange Act.

b.

“Overseas Listed Companies” means issuers of securities listed on a stock exchange or with over-thecounter registration in any overseas jurisdiction or issuers of securities subject to regulations equivalent to
the Insider Trading regulations under the Financial Instruments and Exchange Act in Japan.

Note that information regarding unlisted companies, such as MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking
Corporation, and Mitsubishi UFJ Securities Holdings Co.,Ltd., may fall under MNPI relating to a Subsidiary of theHolding Company, which is a listed company.
ix. Customers MNPI:“Customers MNPI” means MNPI relating to Customers and its affiliates.
“Customers” means all companies that have any transaction relationship with or are engaged in a negotiation to havea transaction relationship with the Holding Company or its Subsidiaries, such as companies that have executed abank transaction agreement with MUFG Bank, Ltd. or Mitsubishi UFJ Trust and Banking Corporation (“GroupBanks”) or companies that have an account at Group Banks, and companies whose MNPI the Holding Company or
its Subsidiaries may come to know through various transaction relationship.
5.

Basic Policy
MUFG Group companies shall establish and strengthen the Insider Trading prevention framework in accordance with thefollowing basic policies:i.

Strive to prevent Insider Trading by making its Staff observe the controls set forth in this Policy and the internal
rules of the relevant company, as well as the provisions of the Financial Instruments and Exchange Act and relevant
Cabinet and Ministerial Orders related to the regulations of Insider Trading.

ii. Notify the purpose and content of Insider Trading regulations, including the information on the amendment of theprovisions of the Financial Instruments and Exchange Act and relevant Cabinet and Ministerial Orders related to theregulations of Insider Trading, in the company and its Subsidiaries.
6.

Control of MNPIi.

MUFG Group companies shall establish rules on control of MNPI and strive for appropriate control of MNPI.

ii. MUFG Group companies shall promptly report to the Corporate Administration Division of the Holding Company ifthey become responsible for controlling MUFG Companies MNPI.
iii. The Staff holding concurrent positions at separate organizations shall follow the MNPI control rules of theorganization that has received such MNPI. In the case where they transfer MNPI to a third party as the Staff of anorganization other than the organization that has received such MNPI, it shall also be controlled in accordance withthe rules of such other organization.
7.

Trading Securities When in Possession of MNPIi.

The Staff who come to know MUFG Companies or Customers MNPI are prohibited from engaging in acts that will
be deemed to be substantially a trade in securities of MUFG Companies or such Customers in any account overwhich they have discretion, unless otherwise permitted by laws and regulations.

ii. The same shall apply to the former Staff that came to know MNPI during their service at MUFG Group companies
and have retired or otherwise departed from MUFG Group companies, and one year has not passed from such
retirement or departure.
iii. The Staff holding concurrent positions at separate organizations must satisfy the securities trading rules of bothorganizations that they belong to.
8.

Trading Securities When Not in Possession of MNPIi.

In principle, the Staff are not prohibited from trading in securities of MUFG Companies or Customers when not inpossession of MUFG Companies or Customers MNPI. However, the Staff shall not engage in the trading of
securities where such trading is deemed likely to lead to Insider Trading or is likely to be suspected of Insider
Trading by external parties.

ii. The criteria for the determination in the preceding paragraph shall be established by each company.
iii. In addition to the above, the Officers must observe the provisions of the Financial Instruments and Exchange Act
and relevant Cabinet and Ministerial Orders.
9.

Matters Not Provided in This Policy
For matters not provided in this Policy, the Staff shall observe the provisions of the Financial Instruments and Exchange Act
and relevant Cabinet and Ministerial Orders, other MUFG Group internal business management rules, and the internal rulesof the company that the Staff belong to.

End
Date of Establishment
December 1, 2007
Dates of Amendments
October 1, 2009
December 24, 2010
June 25, 2015
September 13, 2017
July 1, 2018

(TRANSLATION)
INSIDER TRADING CONTROL RULE

1.

PurposeThe purpose of the Insider Trading Control Rule (the “Rule”) is to prevent Insider Trading based on the MUFG Insider
Trading Control Policy by establishing the basic rules for controlling information on non-public facts regarding MUFG
Companies and Customers that the Staff came to know, and the approach towards securities investments by the Staff.

2.

Amendment and Abolishment
Amendment or abolishment of this Rule must be made solely upon the resolution of the Executive Committee.

3.

Responsible Division
The Global Compliance Division is in charge of this Rule.

4.

Definitions
Under this Rule, the following terms shall have the following meanings:i.

Insider Trading:“Insider Trading” meansa.

the trading of securities of a company or its affiliates,b.

by the Staff who come to know Material Non-Public Information,c.

which is not acceptable by applicable local laws and regulations.

ii. Material Non-Public Information:“Material Non-Public Information (MNPI)” meansa.

information relating to a company or its affiliates,b.

which has not yet been published or is not otherwise generally available, andc.

which a reasonable investor would regard as being material to their judgment in holding, selling orpurchasing securities of the company or its affiliates, or which may have an impact, either positive or
negative, on the price of the securities.

Details shall be set forth separately in the detailed rules.
iii. MUFG Companies MNPI:“MUFG Companies MNPI” means MNPI relating to MUFG and Listed Companies which is a Subsidiary of MUFG
that the Staff may come to know in the course of business. Details shall be set forth separately in the detailed rules.
iv. Customers MNPI:“Customers MNPI” means MNPI relating to Customers and its affiliates. Details shall be set forth separately in thedetailed rules.
5.

Basic Policyi.

The Staff shall strive to prevent Insider Trading by observing the controls set forth in the MUFG Insider Trading
Control Policy and this Rule, as well as the provisions of the Financial Instruments and Exchange Act and relevant
Cabinet and Ministerial Orders and overseas local regulations and procedures related to the regulations of Insider
Trading.

ii. The Global Compliance Division shall notify the purpose and content of Insider Trading regulations, including theinformation on the amendment of the provisions of the Financial Instruments and Exchange Act and relevant
Cabinet and Ministerial Orders related to the regulations of Insider Trading.
iii. General Managers shall strive to prevent Insider Trading, including through the management of MNPI received by
the Staff in their divisions.
6.

Principle of Publicationi.

In principle, MUFG Companies MNPI shall be publicized as early as possible in accordance with the provisions of
the Financial Instruments and Exchange Act and relevant Cabinet and Ministerial Orders.

ii. Determination of whether to publicize and the timing, contents, and methods of publication shall be made inaccordance with the Timely Disclosure Rule.
7.

Duty of Confidentiality for Staff Involved in Committees and Projects
The Staff directly involved in committees or projects that may include MNPI in the future shall strictly control relevant
information from the start of their involvement and shall not transfer such information to others except where it is necessary
for business.

8.

Control of MNPIi.

MUFG Companies MNPI shall be controlled by the Corporate Administration Division, and Customers MNPI shallbe controlled by the division that received such information.

ii. The method of control of MNPI shall be set forth separately in the detailed rules.
iii. The Staff holding concurrent positions at separate organizations shall follow the MNPI control rules of theorganization that has received such MNPI. In the case where they transfer MNPI to a third party as the Staff of anorganization other than the organization that has received such MNPI, it shall also be controlled in accordance withthe rules of such other organization.
9.

Trading Securities When in Possession of MNPIi.

The Staff who come to know MUFG Companies or Customers MNPI are prohibited from engaging in acts that will
be deemed to be substantially a trade in the relevant securities in any account over which they have discretion,
unless otherwise permitted by laws and regulations.

ii.

The same shall apply to the former Staff that came to know MNPI during their service at MUFG and have retired orotherwise departed from MUFG, and one year has not passed from such retirement or departure.

iii. The Staff holding concurrent positions at separate organizations must observe the securities trading rules of allorganizations that they belong to.
10. Trading Securities of MUFG Companies When Not in Possession of MUFG Companies MNPIIn principle, the Staff are prohibited from trading in securities of MUFG Companies even without possession of MUFG
Companies MNPI unless otherwise permitted by laws and regulations. However, such Staff may apply for approval of trading
in securities in accordance with the separately established provisions of the detailed rules if there are unavoidable
circumstances.
11. Trading Securities of Customers When Not in Possession of Customers MNPIi.

In principle, the Staff are not prohibited from trading in securities of Customers when not in possession ofCustomers MNPI. However, the Staff shall not engage in the trading of securities where such trading is deemed
likely to lead to Insider Trading or is likely to be suspected of Insider Trading by external parties.

ii. Notwithstanding the provision of the preceding paragraph, the staff and officers belonging to or in charge of
Divisions designated by the officer in charge of the Global Compliance Division as a Division with frequent accessto MNPI (including those who belonged to or were in charge of such Division in the preceding twelve months) areprohibited from engaging in acts that will be deemed to be substantially a trade in securities of any issuer in any
account over which they have discretion. However, such Staff may apply for approval of trading in securities inaccordance with the separately established provisions of the detailed rules if there are unavoidable circumstances.

12. Matters Not Provided in This Rule
For matters not provided in this Rule, the Staff shall observe the provisions of the Financial Instruments and Exchange Act
and relevant Cabinet and Ministerial Orders, overseas local regulations and procedures, and other internal rules of MUFG.

End
Date of Establishment
October 1, 2005
Dates of Amendments
September 30, 2007
April 1, 2008
October 1, 2009
December 24, 2010
June 25, 2015
September 13, 2017

Exhibit 12
CERTIFICATION
I, Hironori Kamezawa, certify that:1.

I have reviewed this annual report on Form 20-F of Mitsubishi UFJ Financial Group, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material factnecessary to make the statements made, in light of the circumstances under which such statements were made, not misleadingwith respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in allmaterial respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented
in this report;

4.

The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls andprocedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as definedin Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

5.

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under
our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, ismade known to us by others within those entities, particularly during the period in which this report is being prepared;(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;(c)

Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report ourconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by thisreport based on such evaluation; and(d)Disclosed in this report any change in the company’s internal control over financial reporting that occurred during theperiod covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s
internal control over financial reporting; andThe company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control overfinancial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing
the equivalent functions):(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reportingwhich are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial
information; and(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in thecompany’s internal control over financial reporting.

July 30, 2024
/s/ Hironori Kamezawa
Name: Hironori Kamezawa
Title: President & Group Chief Executive
OfficerCERTIFICATION
I, Jun Togawa, certify that:1.

I have reviewed this annual report on Form 20-F of Mitsubishi UFJ Financial Group, Inc.;

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material factnecessary to make the statements made, in light of the circumstances under which such statements were made, not misleadingwith respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in allmaterial respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented
in this report;

4.

The company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls andprocedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as definedin Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

5.

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under
our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is madeknown to us by others within those entities, particularly during the period in which this report is being prepared;(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with generally accepted accounting principles;(c)

Evaluated the effectiveness of the company’s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based onsuch evaluation; and(d)Disclosed in this report any change in the company’s internal control over financial reporting that occurred during the period
covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company’s internal
control over financial reporting; andThe company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control overfinancial reporting, to the company’s auditors and the audit committee of the company’s board of directors (or persons performing
the equivalent functions):(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reportingwhich are reasonably likely to adversely affect the company’s ability to record, process, summarize and report financial
information; and(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in thecompany’s internal control over financial reporting.

July 30, 2024

/s/ Jun Togawa
Name: Jun Togawa

Title: Group Chief Financial Officer

Exhibit 13
MITSUBISHI UFJ FINANCIAL GROUP, INC.
CERTIFICATION REQUIRED BY
RULE 13a-14(b) OR RULE 15d-14(b)AND 18 U.S.C. Section 1350
In connection with the Annual Report of Mitsubishi UFJ Financial Group, Inc. (the “Company”) on Form 20-F for the fiscal
year ended March 31, 2024 as filed with the US Securities and Exchange Commission on the date hereof (the “Report”), I, Hironori
Kamezawa, President & Group Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350 that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and2. The information contained in the Report fairly presents, in all material respects, the financial condition and results ofoperations of the Company.
Dated: July 30, 2024
/s/ Hironori Kamezawa
Name: Hironori Kamezawa
Title: President & Group Chief Executive Officer

MITSUBISHI UFJ FINANCIAL GROUP, INC.
CERTIFICATION REQUIRED BY
RULE 13a-14(b) OR RULE 15d-14(b)AND 18 U.S.C. Section 1350
In connection with the Annual Report of Mitsubishi UFJ Financial Group, Inc. (the “Company”) on Form 20-F for the fiscal
year ended March 31, 2024 as filed with the US Securities and Exchange Commission on the date hereof (the “Report”), I, Tetsuya
Yonehana, Group Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350 that:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and2. The information contained in the Report fairly presents, in all material respects, the financial condition and results ofoperations of the Company.
Dated: July 30, 2024
/s/ Jun Togawa

Name: Jun Togawa
Title: Group Chief Financial Officer

Exhibit 15(a)CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement No. 333-230590 on Form S-8 and Registration
Statement No. 333-273681 on Form F-3 of our reports dated July 30, 2024, relating to the financial statements of Mitsubishi UFJ
Financial Group, Inc. (“MUFG”) and the effectiveness of MUFG’s internal control over financial reporting appearing in the Annual
Report on Form 20-F of MUFG for the year ended March 31, 2024.
/s/Deloitte Touche Tohmatsu LLC
Tokyo, Japan
July 30, 2024

Exhibit 15(b)CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
We consent to the incorporation by reference in Registration Statement No. 333-230590 on Form S-8 and Registration
Statement No. 333-273681 on Form F-3 of Mitsubishi UFJ Financial Group, Inc. of our reports dated February 22, 2024, relating to
the financial statements of Morgan Stanley and subsidiaries (the “Firm”) and the effectiveness of the Firm’s internal control overfinancial reporting, appearing in the Annual Report on Form 10-K of the Firm for the year ended December 31, 2023.
/s/ Deloitte & Touche LLPNew York, New York
July 30, 2024

Exhibit 97
Mitsubishi UFJ Financial Group Inc.
Executive Compensation Recovery Policy

This Mitsubishi UFJ Financial Group Inc. Executive Compensation Recovery Policy (“Policy”) was
adopted by the Compensation Committee (“Committee”) of the Board of Directors of Mitsubishi UFJ
Financial Group Inc. (“the Company”) on September 25, 2023.

1. Objective.
This Policy is intended to provide for the recovery of certain executive compensation in the event ofan accounting restatement resulting from material noncompliance with financial reporting requirements
under United States securities laws, regulations and rules and to comply with the requirements of Section
10D of the United States Securities Exchange Act (“Exchange Act”), Rule 10D-1 under the Exchange Act
and Section 303A.14 of the New York Stock Exchange (“NYSE”) Listed Company Manual, each as
amended (“Applicable Requirements”).
2. Amendment / Termination.
This Policy may be amended or terminated by the independent directors serving on the Board of
Directors or the independent directors serving on the Committee at any time. This Policy shall no longer
be effective on and after the date on which the Company no longer has a class of securities publicly listed
on a United States national securities exchange or the date on which the Applicable Requirements
otherwise become no longer applicable to the Company.
3. Definitions.
For the purposes of this Policy, the following terms shall have the meanings set forth below.
(a) Covered Executive“Covered Executive” means any current or former Executive Officer who served as an Executive
Officer at any time during the performance period for incentive-based compensation, as
determined by the Committee in accordance with the Applicable Requirements.
(b)Executive Officer“Executive Officer” means, with respect to the Company, (i) its president, (ii) its principal
financial officer and/or principal accounting officer, (iii) any officer in charge of a principal
business unit, division or function, (iv) any other officer who performs a policy-making function
for the Company (including any officer of the Company’s subsidiaries if they perform policymaking functions for the Company), or (v) any other person who performs similar policy-making
functions for the Company. Policy-making function does not include policy-making functions
that are not significant. Executive Officers include at a minimum the members of the Board of
Directors and corporate executives (shikko yaku) of the Company under the Companies Act ofJapan.
(c) Financial reporting measures“Financial reporting measures” means measures that are determined and presented in accordancewith the accounting principles used in preparing the Company’s financial statements, and any
measures that are derived wholly or in part from such measures. Stock price and total
shareholder return are also financial reporting measures. A financial reporting measure need not
be presented within the Company’s financial statements or included in a filing with the UnitedStates Securities and Exchange.
(d) Incentive-based compensation“Incentive-based compensation” means any compensation that is granted, earned, or vested
based wholly or in part upon the attainment of a financial reporting measure, including without
limitation cash bonuses and performance-linked stock compensation.

1

This Policy shall apply to all incentive-based compensation received by a Covered Executive onor after the Effective Date.
(e) Received
Incentive-based compensation is deemed “received” in the Company’s fiscal period during
which the financial reporting measure specified in the incentive-based compensation award is
attained, even if the payment or grant of the incentive-based compensation occurs after the endof that period.
(f)Accounting restatement“Accounting restatement” means any required accounting restatement of the Company’s
financial statements due to the Company’s material noncompliance with any financial reporting
requirement under United States securities laws, regulations and rules, including any such
restatement to correct:(i) an error in previously issued financial statements that is material to the previously issued
financial statements; or(ii) an error that would result in a material misstatement if the error were corrected in the current
period or left uncorrected in the current period.
(g) Effective Date
“Effective Date” means the date on which Section 303A.14 of the NYSE Listed Company
Manual becomes effective, which is October 2, 2023.
4． Recovery of erroneously awarded compensation.
The Company shall recover reasonably promptly from each Covered Executive the amount oferroneously awarded incentive-based compensation set forth in Section [6] in the event that the Company
is required to prepare an accounting restatement unless either of the following clause (i) or (ii) is satisfied
and the independent directors serving on the Committee have determined that recovery of the erroneously
awarded compensation would be impracticable:(i) The direct expense paid to a third party to assist in enforcing the Policy would exceed theamount to be recovered. Before concluding that it would be impracticable to recover any amountof erroneously awarded compensation based on expense of enforcement, the Company must
make a reasonable attempt to recover such erroneously awarded compensation, document suchreasonable attempt(s) to recover, and provide that documentation to NYSE; or(ii) Recovery would violate home country law where that law was adopted prior to November
28, 2022. Before concluding that it would be impracticable to recover any amount of erroneously
awarded compensation based on violation of home country law, the Company must obtain an
opinion of home country counsel, acceptable to NYSE, that recovery would result in such a
violation, and must provide such opinion to NYSE.
The Committee shall ensure that all agreements with the Executive Officers relating to theircompensation will reflect the terms of this Policy.
5. Period subject to recovery of erroneously awarded compensation.
The period subject to recovery of erroneously awarded incentive-based compensation under thisPolicy shall be the three completed fiscal years immediately preceding the date that the Company isrequired to prepare an accounting restatement; provided, however, that if a transition period between thelast day of the Company’s previous fiscal year end and the first day of the Company’s new fiscal year
comprises a period of nine to 12 months, such period would be deemed a completed fiscal year.
The date that the Company is required to prepare an accounting restatement is the earlier to occurof:(i) The date the Company’s Board of Directors, or the officer or officers of the Company
authorized to take such action, concludes, or reasonably should have concluded, that theCompany is required to prepare an accounting restatement; or(ii) The date a court, regulator, or other legally authorized body directs the Company to prepare
an accounting restatement.

2

6. Amount subject to recovery of erroneously awarded compensation.
The amount subject to recovery of erroneously awarded incentive-based compensation under thisPolicy shall be the amount of incentive-based compensation received by a Covered Officer that exceeds
the amount of incentive-based compensation that otherwise would have been received during the period
set forth in Section [5] had it been determined based on the relevant restated amounts, and must be
computed without regard to any taxes paid; provided, however, that the amount shall be limited tocompensation received by a Covered Executive after commencement of service as a Covered Executive.
For incentive-based compensation based on stock price or total shareholder return, where theamount of erroneously awarded compensation is not subject to mathematical recalculation directly fromthe information in an accounting restatement:(i) The amount shall be based on a reasonable estimate of the effect of the accounting
restatement on the stock price or total shareholder return upon which the incentive-based
compensation was received; and(ii) The Company shall maintain documentation of the determination of that reasonable estimate
and provide such documentation to NYSE.
7. Prohibition on indemnification.
The Company shall not indemnify any Covered Executive against the loss of erroneously awarded
compensation pursuant to this Policy, including without limitation through the payment of insurance
premiums.
8.Administration and interpretation.
This Policy shall be administered by the Board of Directors of the Company or, if and as designatedby the Board of Directors, the Committee. The independent directors serving on the Board of Directors
and, if and as designated by the Board of Directors, the independent directors serving on the Committee
shall have full and exclusive authority and discretion to interpret, amend, terminate and enforce thisPolicy, including without limitation the authority and discretion to determine, in each case, the amount,manner and timing in which any erroneously awarded compensation shall be recovered from a Covered
Executive in accordance with the Applicable Requirements.
9.Disclosure.
The Company shall provide all disclosures relating to this Policy, including in the applicable UnitedStates Securities and Exchange Commission filings, as required under United States securities laws,
regulations and rules.

3

Exhibit 99(a)CAPITALIZATION AND INDEBTEDNESSThe following table presents our capitalization and indebtedness at March 31, 2024:
At March 31,
2024(in millions)

Total short-term borrowings(1)Long-term debt:
Obligations under finance leases
Unsubordinated debt
Subordinated debt
Obligations under loan securitization transactions
Debt issuance costs
Total long-term debt
Shareholders’ equity:
Capital stock, with no stated value (common stock authorized: 33,000,000,000 shares; common stock issued:
12,337,710,920 shares)
Capital surplus
Retained earnings:
Appropriated for legal reserve
Unappropriated retained earnings
Accumulated other comprehensive income, net of taxes
Treasury stock, at cost: 610,482,347 common shares
Total shareholders’ equity
Noncontrolling interests
Total equity
Total capitalization and indebtedness¥ 57,618,799
26,371
34,721,348
4,829,767
360,081(15,245)
39,922,322

2,090,270
4,636,097
239,571
9,072,572
2,221,263(614,111)
17,645,662
831,551
18,477,213¥ 58,399,535

Note:(1) Total short-term borrowings consist of call money and funds purchased, payables under repurchase agreements, payables under securities lending transactions, due
to trust account and other short-term borrowings.

Exhibit 99(b)UNAUDITED REVERSE RECONCILIATION OF
SELECTED FINANCIAL INFORMATIONOur consolidated financial statements are prepared in accordance with U.S. GAAP as described in the notes thereto. The basis of
our consolidated financial statements prepared under U.S. GAAP is significantly different from Japanese GAAP in certain respects.
Under Japanese banking regulations and Tokyo Stock Exchange rules, we are required to report our annual and quarterly results
prepared in accordance with Japanese GAAP. We present below a reverse reconciliation of total equity under U.S. GAAP to net assets
under Japanese GAAP as of March 31, 2024 and net income before attribution of noncontrolling interests for the fiscal year ended
March 31, 2024.
As ofMarch 31, 2024
(in millions)

Total equity in accordance with U.S. GAAP
Differences arising from different accounting for:1. Investment securities
2. Loans
3. Allowance for credit losses
4. Fixed assets
5. Pension liability
6. Derivative financial instruments and hedging activities
7. Compensated absences
8. Long-term debt
9. Consolidation
10. Goodwill
11. Intangible assets
12. Investments in equity method investees
Other
Deferred income tax effects, when applicable
Net assets in accordance with Japanese GAAP

¥ 18,477,213
7,441
80,084
161,223
293,262(8,737)555,180
61,818(13,425)
245,855364,920(53,165)
753,013(339,885)
162,181¥ 20,746,978

For the fiscal year
ended
March 31, 2024
(in millions)

Net income before attribution of noncontrolling interests in accordance with U.S. GAAP
Differences arising from different accounting for:1. Investment securities
2. Loans
3. Allowance for credit losses
4. Fixed assets
5. Pension liability
6. Derivative financial instruments and hedging activities
7. Compensated absences
8. Long-term debt
9. Consolidation
10. Goodwill
11. Intangible assets
12. Investments in equity method investees
Other
Deferred income tax effects, when applicable
Net income before attribution of noncontrolling interests in accordance with Japanese GAAP¥

1,381,027¥(1,104,391)
33,954(94,284)(1,645)24,5391,083,024
4,922
2,371
172,418(27,877)
30,90639,3083,030
24,4591,571,761

Explanation of Differences between U.S. GAAP and Japanese GAAP
Major factors which explain the differences shown in the above table are as follows:
1. Investment securities
The cost basis of certain securities is different under U.S. GAAP and Japanese GAAP due primarily to the following:•

On October 1, 2005, Mitsubishi Tokyo Financial Group, Inc. (“MTFG”) merged with UFJ Holdings, Inc. (“UFJ Holdings”),
with MTFG being the surviving entity, and was renamed “Mitsubishi UFJ Financial Group, Inc.” Under U.S. GAAP, in
accordance with the guidance on accounting for business combinations, the assets and liabilities of companies acquired inpurchase transactions are recorded at fair value at the date of acquisition. Therefore, the new cost basis of investment
securities, including available-for-sale and other investment securities, of UFJ Holdings was established and they wererecognized at fair value as of October 1, 2005. Under Japanese GAAP, which was effective as of October 1, 2005, the newcost basis was not established for such investment securities and they were carried over at their historical cost basis.

•

Under U.S. GAAP, available-for-sale debt securities are considered to be impaired if the fair value is less than the amortizedcost basis. An impairment loss is recognized in earnings for a security if the MUFG Group has intent to sell such a debt
security or if it is more likely than not the MUFG Group will be required to sell such a debt security before recovery of its
amortized cost basis. If not, the credit component of an impairment loss is recognized in earnings by recording an allowancefor credit losses, limited by the amount of impairment loss. However, the noncredit component of an impairment loss isrecognized in accumulated OCI. For Held-to-maturity debt securities, an allowance for expected credit losses over theremaining expected life is required to be provided. In addition, marketable equity securities are measured at fair value withunrealized gains or losses reflected in net income. Under Japanese GAAP, significant declines in the fair value of securities
below cost are recorded in earnings for both debt security and marketable equity security. In determining a significant
decline, the extent of the decline in fair value below cost and credit standing of the issuers are considered.

•

Under U.S. GAAP, measurement alternative is elected for nonmarketable equity securities, and these securities are primarily
measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderlytransactions for the identical or a similar investment of the same issuer. Under Japanese GAAP, these securities are measured
at cost minus impairment, but changes resulting from observable price changes are not recognized.

•

Under U.S. GAAP, changes in the fair value of foreign securities held by MUFG Bank and Mitsubishi UFJ Trust andBanking are recognized in earnings since the fair value option was elected for these foreign securities in accordance with theguidance on accounting for fair value options for financial assets and financial liabilities. Under Japanese GAAP, only thechanges attributable to movements in foreign currency exchange rates are recognized in earnings and the other changes in thefair value are recognized in other comprehensive income.

2. Loans
Under U.S. GAAP, loan origination fees, net of certain direct origination costs, are deferred and recognized as income over thecontractual life of the loans, while under Japanese GAAP, they are primarily recognized in earnings at the time of origination.
3. Allowance for credit losses
Under U.S. GAAP, the credit loss allowance is measured on a collective basis over the contractual term of the loans, whensimilar risk characteristics exist, based on relevant information about past events, including historical experience, current conditions,and reasonable and supportable forecasts that affect the collectibility of the loan or a group of loans. For loans that do not share similarrisk characteristics, the credit loss allowance is measured on an individual basis, primarily based on the present value of expected
future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral if the loan is collateral dependent.
Under Japanese GAAP, the allowance for loans, which is measured on a collective basis, is provided based mainly on historical loss
experience for the immediately following one-year period or the average remaining term to maturity of loans. In addition, theallowance for certain types of loans, which is measured on an individual basis, is provided based on historical loss experience. These
differences between U.S. GAAP and Japanese GAAP generally result in a larger amount of allowance for credit losses under U.S.
GAAP.
4. Fixed assets
The differences between Japanese GAAP and U.S. GAAP principally consist of (1) Premises and equipment, and (2) Landrevaluation.
(1) Premises and equipment
Under U.S. GAAP, a nonmonetary asset acquired in exchange for another nonmonetary asset is generally recorded at the fairvalue of the asset surrendered or that of the asset received, and a gain or loss is recognized on the exchange. Under Japanese GAAP,
the asset received is recorded at the cost of the asset surrendered in relevant types of exchange transactions, resulting in no gain or
loss.
(2) Land revaluation
U.S. GAAP does not allow revaluation of operating assets and requires land to be recorded at cost. Under Japanese GAAP, land
used for business operations of domestic subsidiaries was revalued as of March 31, 1998 for Bank of Tokyo-Mitsubishi, as ofMarch 31, 2002 for The Mitsubishi Trust and Banking Corporation and as of December 31, 2001 for other domestic subsidiaries of
MTFG with the corresponding impact recorded directly in equity as well as related deferred tax assets/liabilities, pursuant to the Law
concerning Revaluation of Land. Accordingly, land held on the revaluation dates are recorded at different values.
5. Pension liability
Under both U.S. GAAP and Japanese GAAP, the funded status of defined benefit plans is recognized as assets or liabilities in aconsolidated balance sheet, and actuarial gains or losses and prior service costs or benefits that have not yet been recognized throughearnings as net periodic benefit cost are recognized in other comprehensive income, net of tax, until they are amortized as acomponent of net periodic benefit cost. Actuarial gains or losses are amortized based on corridor approach under U.S. GAAP, while
they are amortized over a specified number of years under Japanese GAAP.
6. Derivative financial instruments and hedging activities
MUFG utilizes derivatives to manage its exposures to fluctuations in market factors such as interest rates and foreign exchange
rates arising from mismatches in the risk profiles of assets and liabilities. Under U.S. GAAP, most derivatives used by MUFG are
accounted for as trading assets or liabilities because they do not qualify for hedge accounting under the criteria prescribed in theguidance on accounting for derivative instruments and hedging activities. Japanese GAAP permits hedge accounting for certain
derivative hedging activities, including portfolio hedges, using less restrictive hedging criteria.
In addition, bifurcation requirements are different between U.S. GAAP and Japanese GAAP. Under U.S. GAAP, if theeconomic characteristics and risks of the embedded derivatives are deemed “clearly and closely related” to the economic
characteristics and risks of the host contracts, the embedded derivatives are not bifurcated from their host contracts. Under Japanese
GAAP, the embedded derivatives may be bifurcated from their host contracts if the risk of the embedded derivatives and hostcontracts are managed separately.

7. Compensated absences
Under U.S. GAAP, in accordance with the guidance on accounting for compensated absences, an employer is required to accrue
a liability for employees’ rights to receive compensation for future absences such as unused vacations and holidays when certain
conditions are met (for example, unexpired vacation benefits that employees have earned but have not yet taken). Under Japanese
GAAP, employers are not required to recognize liabilities and accordingly, no liabilities are recognized for such short-term employee
benefits.
8. Long-term debt
Under U.S. GAAP, in accordance with the guidance on accounting for business combinations, the new cost basis of long-term
debt of UFJ Holdings was established and it was recognized at fair value as of October 1, 2005. Under Japanese GAAP, which was
effective as of October 1, 2005, the new cost basis was not established and the long-term debt was recorded at its historical cost basis.
9. Consolidation
The scope of consolidation is different under U.S. GAAP and Japanese GAAP primarily because, under U.S. GAAP, theprimary beneficiary must consolidate variable interest entities based on variable interests, which resulted in additional consolidation ofcertain variable interest entities. Japanese GAAP does not have a concept of variable interest entities.
On the other hand, certain variable interest entities including funding vehicles, which are consolidated under Japanese GAAP
due to the majority ownership of the voting rights, are not consolidated under U.S. GAAP because MUFG and its consolidated
subsidiaries are not their primary beneficiaries.
The breakdown of the impact of the difference on total equity is as follows.
Consolidation
under
U.S. GAAP

Investment securities
Loans
Trading account assets
Short-term borrowings
Long-term debt
Others
Total¥¥

Deconsolidation
under
U.S. GAAP(in millions)

3,840,276 ¥(4,278,179)(2,813,281)
4,359,492
289,716(1,449,942)(51,918) ¥99,538 ¥976,729(10,218)(39,087)(379,015)(350,174)
297,773 ¥Total

3,939,814(3,301,450)(2,823,499)
4,320,405(89,299)(1,800,116)
245,855

The breakdown of the impact of the difference on net income before attribution of noncontrolling interests is as follows.
Consolidation
under
U.S. GAAP

Investment securities
Loans
Trading account assets
Short-term borrowings
Long-term debt
Others
Total¥¥

Deconsolidation
under
U.S. GAAP(in millions)

32,943 ¥(128,005)
81,346
155,924
2,587(63,504)
81,291 ¥

4,912 ¥
182,080947(81)(3,801)(92,930)
91,127 ¥Total

37,85554,07582,293
155,843(1,214)(156,434)
172,418

10.Goodwill
Under U.S. GAAP, in accordance with the guidance on accounting for business combinations, identifiable assets acquired,liabilities assumed, and any noncontrolling interest in an acquired company are recorded at fair value at the date of acquisition.
Goodwill is the excess of the fair value of noncontrolling interest and consideration transferred, over the fair value of identifiableassets acquired and liabilities assumed. Goodwill is not amortized, but is subject to an annual impairment test at the reporting unit
level, and also reviewed more frequently if events or changes in circumstance indicate that the goodwill might be impaired. Under
Japanese GAAP, goodwill is the difference between the purchase price consideration and the acquirer’s share of fair value of the net
assets acquired. Goodwill is amortized by straight-line method over the estimated period not exceeding 20 years, and an impairment
test is required only if indication of impairment is identified.
In addition, the acquisition of UFJ Holdings has been accounted for by a method similar to pooling-of-interests, andconsequently goodwill has not been recognized in accordance with Japanese GAAP, which was effective as of October 1, 2005.
11.Intangible assets
Under U.S. GAAP, in accordance with the guidance on accounting for business combinations, all identifiable intangible assets
acquired in purchase transactions are recorded at fair value at the date of acquisition. Intangible assets with definite useful lives areamortized over their estimated useful life and reviewed for impairment whenever events or changes in circumstance indicate that theircarrying amount may not be recoverable. Intangible assets with indefinite useful lives are tested for impairment at least annually, andalso reviewed more frequently if events or changes in circumstance indicate that the assets might be impaired. Under Japanese GAAP,
which was effective as of October 1, 2005, intangible assets have not been recognized in connection with the acquisition of UFJ
Holdings.
12.Investments in equity method investees
Under U.S. GAAP, a portion of a difference between the cost of an investment and the amount of underlying equity in net assetsof an investee is not amortized. A loss in value of an investment that is other than a temporary decline is recognized as an impairment
loss. Under Japanese GAAP, goodwill which is included in investments in equity method investees is amortized by straight-line
method. If a decline in the market value below the cost is substantial, based on the extent of decline in market value and the credit
standing of the issuers, an impairment loss is recognized within the limit of the amount of unamortized goodwill.