REGISTERED BANKDISCLOSURE STATEMENT
30 SEPTEMBER 2021

MUFG BANK, LTD.
AUCKLAND BRANCHTABLE OF CONTENTS
Disclosure Statement

Page

1.

Corporate Information

1

2.

Recognition and Priority of Claims of Creditors or Classes in the Event of Insolvency

1

3.

Excess of Assets Over Deposit Liabilities

1

4.

Guarantee Arrangement

1

5.

Directorate

1

6.

Auditors

3

7.

Conditions of Registration

3

8.

Credit Rating

4

9.

Other Material Matters

5

10. Financial Statements of the Registered Bank and the Overseas Banking Group5

11. Directors’ and Managing Directors Auckland Branch’s Statement

6

Condensed Interim Financial Statements
Condensed Statement of Comprehensive Income

7

Condensed Statement of Changes in Equity

8

Condensed Statement of Financial Position

9

Condensed Statement of Cash Flows10

Notes to Condensed Interim Financial Statements
1.

Statement of Significant Accounting Policies

122.

Profit Before Income Tax Expense

133.

Property, Plant and Equipment

14

4.

Loans and Advances

145.

Deposits

14

6.

Total Liabilities of the Branch Net of Amounts Due to Related Parties

14

7.

Provision for Impairment Losses

15

8.

Other Liabilities

16

9.

Commitments and Contingent Liabilities

16

10. Related Party Disclosures

17

11. Concentration of Credit Risk

18

12. Concentration of Funding

24

MUFG Bank, Ltd.
Auckland BranchTABLE OF CONTENTS
Notes to Condensed Interim Financial Statements
13. Interest Rate Risk

25

14. Maturity Analysis for Assets and Liabilities

26

15. Fair Value of Financial Instruments

27

16. Liquidity Risk Management29

17. Profitability and Size

29

18. Asset Quality29

19. Exposures to Market Risk

31

20. Capital Adequacy

32

21. Insurance Business34

22. Non-Consolidated Activities

34

23. Securitization, Funds Management, and Other Fiduciary Activities

34

24. Risk Management Policies

34

25. Financial Support

34

26. Subsequent Events

35

Auditor’s Review Report

MUFG Bank, Ltd.
Auckland Branch

Disclosure Statement
For the Six Months Ended 30 September 2021
This Disclosure Statement contains information as required by the Registered Bank Disclosure Statements(Overseas Incorporated Registered Banks) Order 2014 (as amended) (‘the Order’).
1.

Corporate Information
The ‘Overseas Banking Group’ includes all entities consolidated for the purposes of public reporting inJapan including MUFG Bank, Ltd., its subsidiaries, and associated companies.
The Disclosure Statement and Condensed Interim Financial Statements are for the Auckland Branch (the‘Branch’) of MUFG Bank, Ltd. It is the only member in the ‘Banking Group’ in New Zealand.
The Ultimate Holding Company of MUFG Bank, Ltd. is Mitsubishi UFJ Financial Group, Inc.
incorporated in Japan.
Since the balance date of the last full year Disclosure Statement, there has been no change in the Ultimate
Holding Company and no material changes in regulations, legislation, or other restrictions of a legally
enforceable nature that may materially inhibit the Ultimate Holding Company from providing material
financial support to the Banking Group.

2.

Recognition and Priority of Claims of Creditors or Classes in the Event of Insolvency
Since the balance date for the last full year Disclosure Statement there have been no material changes inany material legislative or regulatory restrictions in Japan that, in the event of a liquidation of theRegistered Bank, subordinate the claims of any class of unsecured creditors of the Branch on the assetsof the Registered Bank to those of any other class of unsecured creditors of the Registered Bank.

3.

Excess of Assets Over Deposit Liabilities
There have been no material changes in any statute that requires the Registered Bank to hold in New
Zealand an excess of assets over deposit liabilities since the balance date of the last full year DisclosureStatement.
There have been no material changes in any regulatory or legislative requirements in Japan that require
the Registered Bank to maintain sufficient assets to cover an ongoing obligation to pay deposit liabilities
in Japan since the balance date for the last full year Disclosure Statement.

4.

Guarantee Arrangement
The obligations of the Banking Group are not guaranteed under any guarantee (including government
guarantee and cross guaranteeing arrangements) as at the date of signing this Disclosure Statement.

5.

Directorate
5.1

Directors of MUFG Bank, Ltd. as of 30 September 2021:
Name

Occupation

Residence

Naoki Hori
Junichi Hanzawa

ChairmanPresident & CEO

Japan
Japan

1
MUFG Bank, Ltd.
Auckland Branch

Disclosure Statement
For the Six Months Ended 30 September 2021
5.

Directorate (continued)
Akihiko Nakamura
Masato Miyachi
Takayoshi Futae
Muneya Taniguchi
Atsushi Miyata
Masahiro Kuwahara
Tetsuya Yonehana
Shigeru Yoshifuji
Naomi Hayashi
Hiroki Kameda
Hiroshi Mori
Yutaka Miyashita
Masakazu Oosawa
Keitaro Tsukiyama
Teruyuki Sasaki
Takeshi Suzuki
Akio Negishi
Masahito Monguchi
Minoru Hagio
Tadayuki Matsushige
Shigeo Ohyagi
Masahiko Kato
Hironori Kamezawa
Fumikazu Tatsumi
Shinichi Koide
Toshifumi Kitazawa

Deputy President
Deputy President
Deputy President
Deputy President
Senior Managing Executive Officer
Senior Managing Executive Officer
Senior Managing Executive Officer
Senior Managing Executive Officer
Senior Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Managing Executive Officer
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director

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

The following changes in Directors of MUFG Bank, Ltd. since the last full year DisclosureStatement were:
Kiyoshi Sono resigned as Chairman on 1 April 2021.
Kanetsugu Mike resigned as President & CEO on 1 April 2021.
Kenji Yabuta resigned as Deputy President on 28 June 2021.
Masakazu Ikeda resigned as Senior Managing Executive Officer on 28 June 2021.
Kenji Matsuo resigned as Director on 28 June 2021.
Naoto Hirota resigned as Director on 28 June 2021.
Akira Hamamoto resigned as Director on 28 June 2021.
Naoki Hori appointed as Chairman on 1 April 2021.
Junichi Hanzawa appointed as President & CEO on 1 April 2021.
Takayoshi Futae appointed as Deputy President on 1 April 2021.
Muneya Taniguchi appointed as Deputy President on 1 April 2021.
Atsushi Miyata appointed as Senior Managing Executive Officer on 1 April 2021.
Naomi Hayashi appointed as Senior Managing Executive Officer on 1 April 2021.
Teruyuki Sasaki appointed as Managing Executive Officer on 28 June 2021.
Keitaro Tsukiyama appointed as Managing Executive Officer on 1 April 2021.
Akio Negishi appointed as Director on 28 June 2021.
Minoru Hagio appointed as Director on 28 June 2021.
Masahiko Kato appointed as Director on 28 June 2021.

2
MUFG Bank, Ltd.
Auckland Branch

Disclosure Statement
For the Six Months Ended 30 September 2021
5.

Directorate (continued)
5.2

6.

Signatories who have signed the Disclosure Statement. Responsible Person signing on behalf of
Directors and New Zealand Chief Executive Officer:
Name

Occupation

Residence

Hiroto Fukashiro

Managing Director,
Australia
Head of Oceania,
Head of Sydney Branch(Responsible Person on behalf of the Directors)

Masami Yoshitake

Managing Director,
Head of Auckland Branch(New Zealand Chief Executive Officer)

New ZealandAuditors
Name and Address of Auditor whose report is referred to in this Disclosure Statement:
Deloitte Limited
Deloitte Centre
80 Queen Street
Auckland 1010
New Zealand7.

Conditions of Registration
There has been changes to the conditions of registration since the last Disclosure Statement as at 31
March 2021. These conditions of registration apply on and after 1 October 2021.
The changes are:1.

That, for a loan-to-valuation measurement period, the total of the business of the registered bank in
New Zealand’s qualifying new mortgage lending amount in respect of property-investment
residential mortgage loans with a loan-to-valuation ratio of more than 60%, must not exceed 5% of
the total of the qualifying new mortgage lending amount in respect of property-investment residential
mortgage loans arising in the loan-to-valuation measurement period.

2.

That, for a loan-to-valuation measurement period ending on or before 31 March 2022, the total of
the bank’s qualifying new mortgage lending amount in respect of non property-investment
residential mortgage loans with a loan-to-valuation ratio of more than 80%, must not exceed 20% of
the total of the qualifying new mortgage lending amount in respect of non property-investment
residential mortgage loans arising in the loan-to-valuation measurement period.

3.

That, for a loan-to-valuation measurement period ending on or after 30 April 2022, the total of thebusiness of the registered bank in New Zealand’s qualifying new mortgage lending amount in respectof non property-investment residential mortgage loans with a loan-to-valuation ratio of more than
80%, must not exceed 10% of the total of the qualifying new mortgage lending amount in respect of
non property-investment residential mortgage loans arising in the loan-to-valuation measurement
period.

3
MUFG Bank, Ltd.
Auckland Branch

Disclosure Statement
For the Six Months Ended 30 September 2021
7.

Conditions of Registration (continued)
4.

“loan-to-valuation ratio”, “non property-investment residential mortgage loan”, “propertyinvestment residential mortgage loan”, “qualifying new mortgage lending amount in respect ofproperty-investment residential mortgage loans”, “qualifying new mortgage lending amount inrespect of non property-investment residential mortgage loans”, and “residential mortgage loan”
have the same meaning as in the Reserve Bank of New Zealand document entitled “Framework for
Restrictions on High-LVR Residential Mortgage Lending” (BS19) dated October 2021, and wherethe version dates of the Reserve Bank of New Zealand Banking Prudential Requirement (BPR)
documents referred to in BS19 for the purpose of defining these terms are—
BPR document

Version date

BPR131: Standardised credit risk RWAs

1 October 2021

BPR001: Glossary

1 July 2021

“loan-to-valuation measurement period” means—a-the six calendar month period ending on the last day of March 2022; andb- thereafter a period of six calendar months ending on the last day of the sixth calendar month, thefirst of which ends on the last day of April 2022
The Branch has complied with all conditions of registration over the six months accounting period ended
30 September 2021.
8.

Credit Rating
The Registered Bank has the following long term credit ratings which are applicable to the Banking
Group in New Zealand.
Current RatingStandard & Poor’s
Moody’s
Fitch

A
A1
A-

Previous Rating(if changed in theprevious two years)
A

Date of Change
8-Apr-2020

4
MUFG Bank, Ltd.
Auckland Branch

Disclosure Statement
For the Six Months Ended 30 September 2021
8.

Credit Rating (Continued)
Rating scales are:
Credit Ratings

S&P’s

Moody’s

Fitch

Highest quality/Extremely strong capacity to pay interest and principal

AAA

Aaa

AAA

High quality/Very strong capacity to pay interest and principal

AA

Aa

AA

Upper medium grade/Strong capacity to pay interest and principal

A

A

A

Medium grade (lowest investment grade)/Adequate ability to pay interest andprincipal

BBB

Baa

BBB

Predominantly speculative/Less near term vulnerability to default

BB

Ba

BB

Speculative, low grade/Great vulnerability

B

B

B

Poor to default/identifiable vulnerability

CCC

Caa

CCC

Highest speculations

CC

Ca

CC

Lowest quality, no interest

C

C

C

Defaulted on obligations

D

-

D

Standard & Poor’s and Fitch – Ratings are modified by the addition of a plus (+) or minus (-) sign toshow relative standing within the major rating categories.
Moody’s – A numeric modifier is applied to each generic rating category from Aa to B, indicating thatthe counterparty is (1) in the higher end of its letter-rating category, (2) in mid-range, (3) in lower end.
9.

Other Material Matters
There are no matters relating to the business or affairs of the Registered Bank and its Banking Group thatare not contained elsewhere in the Disclosure Statement, and would, if disclosed, materially affect thedecision of a person to subscribe for debt securities of which the Registered Bank or any member of its
Banking Group is the issuer.

10.

Financial Statements of the Registered Bank and the Overseas Banking GroupThe most recent publicly available Disclosure Statement for the Banking Group can be accessed via the
Branch’s website: www.nz.bk.mufg.jp. Copies of the most recent publicly available DisclosureStatement for the Banking Group will be provided within two working days at no charge to any person
who requests a copy.
The most recent publicly available Financial Statements of the Registered Bank and the Overseas
Banking Group may be accessed via the Bank’s global website: www.mufg.jp. In addition, Financial
Statements are also prepared and filed with the United States Securities and Exchange Commission,
Washington, D.C.

5
MUFG Bank, Ltd.
Auckland Branch

Disclosure Statement
For the Six Months Ended 30 September 202111.

Directors’ and Managing Directors Auckland Branch’s Statement

After due enquiry, each Director and the Managing Directors Auckland Branch believe that:as at the date on which the Disclosure Statement is signed;the Disclosure Statement contains all the information that is required by the Registered Bank
Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (as amended);the Disclosure Statement is not false or misleading;and over the six-month accounting period ended 30 September 2021:


MUFG Bank, Ltd., Auckland Branch had systems in place to monitor and control adequately thematerial risks of the Banking Group, including credit risk, concentration of credit risk, interest raterisk, currency risk, equity risk, liquidity risk and other business risks, and that those systems werebeing properly applied; and

MUFG Bank, Ltd. has complied with all Conditions of Registration that applied during the period.

Signed for and on behalf of the Board of Directors of MUFG Bank, Ltd. by their agent duly appointed in writing,and by the Managing Director, Auckland Branch.

_______________________________________
Mr. Hiroto Fukashiro
Managing Director, Head of Oceania
Head of Sydney Branch(and Authorised Attorney on behalf of
the Directors)
Dated (Sydney): 25 November 2021_______________________________________Mr. Masami Yoshitake
Managing Director,
Head of Auckland Branch(New Zealand Chief Executive Officer)
Dated (Auckland): 25 November 2021

6
MUFG Bank, Ltd.
Auckland Branch

Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
Condensed Statement of Comprehensive Income

Note

Six Months ended
30 September 2021

Six Months ended
30 September 2020

Unaudited

Unaudited

NZD

NZD

Interest income
Interest expense
Net interest income

22

33,052,466(18,134,112)
14,918,354

37,662,097(26,173,360)
11,488,737

Fees and commission income
Net gains on financial instruments

2
2

14,789,585
1,366,251
16,155,836

13,272,700
980,445
14,253,145

Occupancy expenses
Personnel expenses
Auditor’s remuneration
Administration and other expenses
Profit before credit impairment losses andincome tax expense

2
2
2
2

(44,301)(2,310,186)(121,550)(2,413,697)(69,597)(2,407,739)(75,850)(443,486)

26,184,456

22,745,210

Expected credit gain/(losses)
Profit before income tax expense

7206,234
26,390,690(107,160)
22,638,050

Income tax expense(5,002,476)(4,289,826)

Profit from continuing operations

21,388,214

18,348,224(2,816,191)

1,894,788

788,534(530,541)

Other comprehensive income, net of tax(2,027,657)

1,364,247

Total comprehensive income, net of tax

19,360,557

19,712,471

Other comprehensive income
Items that may be reclassified subsequently
to profit or loss
Debt instruments measured at FVOCI- Profit arising during the year
- Income tax benefit/(expense) on
Debt instruments measured at FVOCIThe condensed interim statement of comprehensive income is to be read in conjunction with the accompanying notes to andforming part of the condensed interim financial statements.

7
MUFG Bank, Ltd.
Auckland Branch

Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
Condensed Statement of Changes in Equity
Unaudited
NZD

Retained Earnings

Investment
Revaluation
Reserve

Total

83,000,000

135,904,917

2,822,113

221,727,030

Profit from continuing operations-

18,348,224-

18,348,224

Other comprehensive income, net of tax--

1,364,247

1,364,247

Total comprehensive income, net of tax-

18,348,224

1,364,247

19,712,471

Balance at 30 September 2020

83,000,000

154,253,141

4,186,360

241,439,501

Balance at 1 April 2021

83,000,000

172,490,270

2,106,360

257,596,630

Profit from continuing operations-

21,388,214-

21,388,214

Other comprehensive (expense), netof tax--(2,027,657)(2,027,657)

Total comprehensive income, net of tax-

21,388,214(2,027,657)

19,360,557

83,000,000

193,878,484

78,703276,957,187

Balance at 1 April 2020

Balance at 30 September 2021

Head
OfficeCapitalThe condensed interim statement of changes in equity is to be read in conjunction with the accompanying notes to and forming
part of the condensed interim financial statements.

8
MUFG Bank, Ltd.
Auckland Branch

Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
Condensed Statement of Financial Position
As at
30 September
2021

As at
30 September
2020

As at
31 March
2021

Unaudited

Unaudited

Audited

NZD

NZD

NZD

516,647,282
652,167,470
164,999,409
500,052,736
3,686,113,359
12,384,166
96,141,989
1,784,749
353,305
1,418,317

594,524,778
208,544,641
149,999,493
835,602,962
3,909,469,069
2,463,987
145,184,549
2,255,309
130,724
372,269
1,407,850

1,045,056,782
606,883,993
164,999,004
455,852,935
4,045,883,065
14,356,200
122,833,075
2,107,696
404,8211,315,919

5,632,062,782

5,849,955,631

6,459,693,490

2,771,135,605
2,467,435,305
12,384,166
76,64899,497,436
4,576,435

3,804,274,230
1,638,812,496
2,463,987
4,148,093
150,587,671
8,229,653

3,771,780,745
2,270,309,362
14,356,200
8,454,775
127,182,572
10,013,206

5,355,105,595

5,608,516,130

6,202,096,860

83,000,000
193,878,484
78,70383,000,000
154,253,141
4,186,360

83,000,000
172,490,270
2,106,360

276,957,187

241,439,501

257,596,630

Total Liabilities and Equity

5,632,062,782

5,849,955,631

6,459,693,490

Total Interest Earning and Discount Bearing
Assets

4,913,019,084

5,565,434,218

5,814,239,198

Total Interest and Discount Bearing
Liabilities

5,232,689,382

5,434,291,803

6,031,921,441

Note

AssetsCash and short term liquid assets
Amounts due from related parties
Amounts due from other financial institutions
Investment in debt instruments
Corporate loans originated by the Bank
Acceptances of customers
Derivative instruments
Other assets
Current tax asset
Deferred tax asset
Property, plant and equipment

10

4

3

Total Assets
Liabilities
Amounts due to related parties
Deposits
Acceptances
Current tax payable
Derivative instruments
Other liabilities

10
5

8

Total Liabilities
EquityHead Office capital
Retained earnings
Investment revaluation reserve
Total Equity

10

The condensed interim statement of financial position is to be read in conjunction with the accompanying notes to and forming
part of the condensed interim financial statements.

9
MUFG Bank, Ltd.
Auckland Branch

Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
Condensed Statement of Cash FlowsSix Months ended
30 September 2021
Unaudited
NZD

Six Months ended
30 September 2020
Unaudited
NZD

Cash Flows from Operating Activities
Interest income received
Commission fees & trading income
Interest paid
Payment to suppliers, employees and others
Tax paid

35,443,610
16,427,485(17,860,700)(9,454,116)(12,540,553)

43,739,313
12,697,160(28,957,989)(4,582,666)(10,160,401)

Net cash flows from operating activities before changes
in operating assets and liabilities

12,015,726

12,735,417

359,799,589

1,269,317,440(405)(49,230,786)(45,283,477)
2,127,182

69,997,263(239,638,795)(92,017,947)
15,394,780

267,412,103

1,023,052,741

196,570,030(1,000,362,639)(3,416,573)

576,844,397(1,236,568,809)(13,969,208)(807,209,182)(673,693,080)(527,781,353)

362,095,078

Payment for property, plant and equipment(372,086)-

Net cash flows used in investing activities(372,086)-

Remittance to the Overseas Bank
Lease payment(256,061)(84,636)

Net cash flows from financing activities(256,061)(80,636)(528,409,500)
1,045,056,782

362,010,442
232,514,336

516,647,282

594,524,778

Cash and short term liquid assets

516,647,282

594,524,778

Closing cash and cash equivalents

516,647,282

594,524,778

Net decrease / (increase) in operating assets:
Net decrease in corporate loans originated by the Bank
Net (increase)/decrease in amounts due from other financial
institutions
Net (increase) in investment in debt instruments
Net (increase) in amounts due from related parties
Net decrease in other assets
Net (decrease) / increase in operating liabilities:
Net increase in commercial paper and deposits
Net (decrease) in amounts due to related parties
Net (decrease) in other liabilities

Net cash flows from operating activities
Cash Flows from Investing Activities

Cash Flows from Financing Activities

Net Change in Cash and Cash Equivalents
Net (decrease) / increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of the period
Reconciliation of Closing Cash and Cash Equivalents

The condensed interim statement of cash flows is to be read in conjunction with the accompanying notes to and forming partof the condensed interim financial statements.

10
MUFG Bank, Ltd.
Auckland Branch

Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
Condensed Statement of Cash Flows (continued)

Six Months ended
30 September 2021

Six Months ended
30 September 2020

Unaudited

Unaudited

NZD

NZD

Reconciliation of profit from continuing operations to net
cash flows from operating activities
Profit from continuing operations

21,388,214

18,348,224

Decrease in corporate loans(Increase) / Decrease in due from other financial institutions

359,964,953(405)

1,272,796,846
69,997,263(Increase) in investment in debt instruments(47,015,993)(236,929,229)(Increase) in due from related parties(45,283,477)(92,017,947)

322,948

848,662(Decrease) / Increase in certificate of deposit(47,144,722)

331,690,764

Increase in deposits

244,270,665

244,503,292(1,000,645,140)(1,238,702,557)(4,519,421)(43,335)(206,234)

107,160(7,538,077)(5,870,575)

Decrease in other assets(Decrease) in due to related parties(Decrease) in other liabilities(Decrease) / Increase in provision for expected credit losses
Movement in tax provision and deferred tax
Non-Cash items:
Depreciation of property, plant and equipment
Other
Net cash flows from operating activities

91,683

104,738(1,466,347)(2,738,228)(527,781,353)

362,095,078

The condensed interim statement of cash flows is to be read in conjunction with the accompanying notes to and forming partof the condensed interim financial statements.

11
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
1.

Statement of Significant Accounting Policiesa) Reporting entity and Statement of Compliance
MUFG Bank Ltd., Auckland Branch (“The Branch”) operates in Auckland, New Zealand and the Registered Bankis incorporated in Japan. The Branch is profit-oriented and is an FMC Reporting Entity under the Financial Markets
Conduct Act 2013. The condensed interim financial statements of the Branch incorporated in this DisclosureStatement have been prepared in accordance with Generally Accepted Accounting Practice in New Zealand (“NZ
GAAP”) and comply with requirements of NZ IAS 34 Interim Financial Reporting and the Registered Bank
Disclosure Statements (Overseas Incorporated Registered Banks) Order 2014 (as amended). These condensed
interim financial statements also comply with IAS 34 Interim Financial Reporting. The condensed interim financial
statement should be read in conjunction with the financial statements for the year ended 31 March 2021.
The condensed interim financial statements were authorised for issue by the directors on the date of signing thisDisclosure Statement.
b) Basis of preparation
The condensed interim financial statements are presented in New Zealand dollars.
The condensed interim financial statements have been prepared on the historical cost basis, except for therevaluation of certain non-current assets and financial instruments.
Cost is based on the fair-value of the consideration given in exchange for assets.
c) Changes in accounting policy
There have been no material changes in accounting policies since the last financial statements for year ended 31
March 2021d) Comparative figures
There has been no re-statement on comparatives figures for these financial statements.

12
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
2.

Profit Before Income Tax Expense

Operating revenue(a) Interest income
Corporate loans and other accounts
Related parties(b) Fees and commissions income
Fees and commissions income(c) Gains less losses on financial instruments
Net gain on interest rate derivatives
Net gain on currency derivatives
Net gain on foreign currency
Other income

Six Months ended
30 September
2021
Unaudited
NZD

Six Months ended
30 September
2020
Unaudited
NZD

32,878,920
173,546

37,482,305
179,792

33,052,466

37,662,097

14,789,585
14,789,585

13,272,700
13,272,700

584,966
760,047
21,2381,366,251
49,208,302

875,780
46,82957,836
980,445
51,915,242

31,668,257
1,384,209-

35,989,852
1,672,246-

14,725,867
994,050
372,200
63,71949,208,302

13,272,700
1,088,824(108,380)
51,915,242

7,531,583
10,602,529
18,134,112

5,542,025
20,631,335
26,173,360

18,134,112
18,134,112

26,173,360
26,173,360

44,301

69,597

12,2486,446
72,9893,432
6,947
94,359121,550
2,296,940
13,24630,4382,291,576(206,234)
4,683,500
26,390,690

75,8502,386,157
21,582
338,748
107,160
3,103,832
22,638,050

Total interest income derived from financial assets:
At amortised cost
Investment in debt instruments (FVOCI)
Designated at fair value through profit or loss
Total fee income derived from financial assets that are not at fair value
through profit or loss
Net unrealised gain on financial assets/liabilities (FVTPL)Net realised gain / (loss) on financial assets/liabilities (FVTPL)Other income
Expenses(a) Interest expense
Deposits and other accounts
Related parties
Total interest expense was derived from financial liabilities:
At amortised cost(b) Other operating expenses
Occupancy expenses
Depreciation
Furniture, fixtures and fittings
Office equipment
Motor vehicles
Right of use assets
Auditors' remuneration
Audit fees
Salaries
Staff related cost
Net losses from the disposal of fixed assets
General administration and other operating expenses
Provision for credit impairment
Profit before income tax expense

Total income excluding any net loss for six months ended 30 September 2021 is NZD 49,208,302 (six months ended 30 September 2020: NZD 51,915,242 )13
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
3.

Property, Plant and Equipment
During the six months ended 30 September 2021 the Branch acquired property, plant and equipment of NZD
1,467,293 (six months ended 30 September 2020: Nil; twelve months ended 31 March 2021: NZD 12,987).
During the six months ended 30 September 2021 the Branch disposed of property, plant and equipment of NZD
1,273,211 (six months ended 30 September 2020: Nil; twelve months ended 31 March 2021: Nil).
There was no impairment loss for property, plant and equipment recognised during the six months ended 30
September 2021 (six months ended 30 September 2020: Nil; twelve months ended 31 March 2021: Nil).
Right-of-use assets included property, plant and equipment of NZD 1,053,177 (six months ended 30 September
2020: NZD 1,367,918; twelve months ended 31 March 2021: NZD 1,273,732).

4.

Loans and Advances

Corporate loans originated by the Bank
Less: collective impairment allowance
Total net loans

5.

As at
30 September 2020
Unaudited
NZD

As at
31 March 2021
Audited
NZD

3,686,936,311(822,952)
3,686,113,359

3,910,299,735(830,666)
3,909,469,069

4,046,901,264(1,018,199)
4,045,883,065

As at
30 September 2021
Unaudited
NZD

As at
30 September 2020
Unaudited
NZD

As at
31 March 2021
Audited
NZD

204,734,392
6,843,721
791,505,554
341,381,054
1,122,970,584
2,467,435,305

195,960,775
6,118,524
662,188,287
205,237,493
569,307,417
1,638,812,496

173,963,431
9,397,875
838,697,399
262,796,712
985,453,945
2,270,309,362

Deposits

Retail deposit bearing interest
Retail deposit not bearing interest
Certificate deposit
Call deposit
Term deposit

6.

As at
30 September 2021
Unaudited
NZD

Total Liabilities of the Branch Net of Amounts Due to Related Parties

Total Liabilities
Less: total amounts due to related parties(Note : 10)
Total liabilities net of amounts due to relatedparties

As at
30 September 2021
Unaudited
NZD

As at
30 September 2020
Unaudited
NZD

As at
31 March 2021
Audited
NZD

5,355,105,595

5,608,516,130

6,202,096,860(2,812,567,715)(3,903,394,294)(3,857,530,889)

2,542,537,880

1,705,121,836

2,344,565,971

14
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
7.

Provision for Impairment Losses

Financial assets and credit commitmentsCollective provision for doubtful debts measured on a
12 months ECL
Provision for doubtful debts for assets measured on alifetime ECL
Collective provision for doubtful debts for assets notcredit impaired
Collective provision for doubtful debts for credit
impaired assets
Individual provision for doubt debts for credit impaired
assetsTotal provision for impairment losses

Residential
mortgages

Corporate exposures

Other
exposures

Total credit
exposures-

1,275,565-

1,275,565

-

-

-

-

-

-

-

-

-

-

-

-

-

1,275,565-

1,275,565

The following table reconciles the opening balance to the closing balance of provision for impairment losses and shows the
movement in opening balance where financial assets have transferred between provision stages during the reporting period.

Corporate exposures
Balance at beginning of period 1-Apr-21
Charge to income statement excluding transfer between
ECL stages – Stage 1
Movement to the opening balance due to transfer
between ECLTransferred to collective provision 12 months ECLTransferred to collective provision lifetime ECL not
creditTransferred to collective provision lifetime ECL credit
impairedTransferred to individual provision lifetime ECL credit
Impact on period end ECL of exposures transferred
between stages during the period
Total provision for impairment losses*

Collective
provision 12
months ECL

Collective
provision lifetime
ECL not credit
impairedCollective
provision
lifetime ECL
credit impaired

Total

1,481,799--

1,481,799(206,234)--(206,234)

-

-

-

-

-

-

-

-

-

-

-

-

1,275,565--

1,275,565* Refer to Note 4 for total provision for ECL on loan, and Note 8 for total provision for ECL on financial guarantee and commitments

15
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
8.

Other Liabilities
As at
30 September 2021
Unaudited
NZD

As at
30 September 2020
Unaudited
NZD

As at
31 March 2021
Audited
NZD

145,824
2,672,645-

199,636
1,598,632
4,352,421

144,051
1,697,792
4,060,474

452,613
1,056,471
248,882
4,576,435

484,397
1,399,825
194,7428,229,653

463,600
1,312,532
2,334,757
10,013,206

As at
30 September 2021
Unaudited
NZD

As at
30 September 2020
Unaudited
NZD

As at
31 March 2021
Audited
NZD

2,340,141,242

2,468,833,514

2,252,390,739

58,354,747
142,653,957
17,642,890
218,651,594

32,815,637
156,417,334
30,619,161
219,852,132

49,586,637
202,124,744
15,358,641
267,070,022

Provision for employee entitlements
Unearned income
Management fee charged by related parties
Provisions for ECL on financial guarantee andcommitment
Lease liabilities
Others9.

Commitments and Contingent Liabilitiesa) Other commitments
Undrawn facility commitmentsb) Contingent liabilities
Guarantees given
Performance related contingencies
Trade related contingencies

The Branch provides guarantees in its normal course of business on behalf of its customers and there are three principal
types of guarantee:Guarantee given – a financial guarantee that is an agreement by which the Branch agrees to pay an amountof money on demand on behalf of a customer to a third party during the life of the guarantee.

Performance related contingencies – a guarantee given by the Branch that undertakes to pay a sum ofmoney to a third party where the customer fails to fulfil certain terms and conditions of a contract.



Trade related contingencies – contingent liabilities arising from trade-related obligations secured against
an underlying shipment of goods to make a payment to a third party if a counterparty fails to perform acontractual non-monetary obligation.

The credit risk involved in issuing guarantees is essentially the same as that involved in extending loan facilities tocustomers. Apart from the normal documentation for a facility of this type, the customer must also provide the Branchwith a written indemnity, undertaking that, in the event the Branch is called upon to pay, the Branch will be fully
reimbursed by the customer.
The Branch has no financial assets that have been pledged as collateral for liabilities or contingent liabilities.

16
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
10.

Related Party Disclosures
The Auckland Branch is a branch of an overseas company, MUFG Bank, Ltd., which is incorporated in Japan andis the ultimate parent bank.
Related party transactions are unsecured and entered into in the normal course of business. During the period there
have been dealings between Auckland Branch, other overseas branches and Head Office. Amounts due from relatedparties are only related to settlement account which is due on demand. Amounts due to related parties are mainly
term deposits which are due in accordance with an agreed date. The maturity analysis for these balances is presented
in Note 14. The interest rate risk analysis for these balances is presented in Note 13. No related party debts havebeen written off or forgiven during the reporting period.
Derivative instruments with related parties are used to manage interest rate and currency exposures and include
foreign exchange forwards, interest rate swaps and currency options.
Six Months
ended
30 September
2021
Unaudited
NZDA) Balances
AssetsAmounts due from related parties
Derivative instruments
OthersSix Months
ended
30 September
2020
Unaudited
NZD

Twelve Months
ended
31 March
2021
Audited
NZD

652,167,470
56,740,259
57,232708,964,961

208,544,641
55,295,604
344
263,840,589

606,883,993
45,077,635
651,961,628

2,771,135,605
41,432,110
2,812,567,715

3,804,274,230
94,767,643
4,352,421
3,903,394,294

3,771,780,745
81,689,670
4,060,474
3,857,530,889

EquityHead Office capital

83,000,000

83,000,000

83,000,000

Off Balance Sheet
Guarantee given
Performance related contingencies

1,034,864
1,150,000

6,183,941
1,150,000

6,183,941
1,150,000

2,184,864

7,333,941

7,333,941

173,546
10,602,529
38,077,172
2,528(1,906,658)

179,792
20,631,335(35,078,796)
3,256(4,352,421)

385,938
31,954,375(12,136,941)
5,734(4,060,474)

Liabilities
Amounts due to related parties
Derivative instruments
OtherB) Transactions
Interest income
Interest expense
Net (loss) from derivative instruments
Fees and commissions income
Management fee expense

The Branch’s Head Office capital comprises of funds provided by the overseas bank to support the Branch’s daily operationand to fulfil local thin capitalisation requirements. It is non-interest bearing and there is no fixed date for repatriation. The
capital of the registered bank is managed by the overseas bank. The Branch does not separately manage capital other thanfor the purpose of the Reserve Bank of New Zealand’s requirements as disclosed in Note 19 and Note 20.
Other transactions like sundry administrative charges are not material to the results and are therefore not disclosed separately.

17
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
11.

Concentration of Credit Risk
Credit risk is the risk of loss to the Branch arising from the failure of a counterparty to repay principal and/or interest
under a commitment entered into with the Branch. Credit risk arises from the lending, treasury and trade financeactivities of the Branch. Credit risk also arises from the possibility that the counterparty to a derivative financial
instrument will not adhere to the terms of the contract with the Branch when settlement becomes due.
Corporate loans originated by the Bank are secured partially by following collateral/credit enhancements:i.
financial guarantee by either third parties or customer’s parent company
ii.
deposit assignmentiii.
asset assignment such as aircraft
Concentration of credit risk is determined by management to be by industry sector, geographical location andcustomer credit rating. Industry sectors are determined by reference to the categories in the RBNZ Bank Balance
Sheet Survey. The geographical locations reflect the primary location of the underlying borrower.
The following table details the Branch’s maximum credit risk exposure without taking account of any
collateral/credit enhancement held of recognized financial assets and derivative financial instruments as at thereporting date.
As at
30 September 2021
Unaudited
NZD

As at
30 September 2020
Unaudited
NZD

On Balance Sheet
Cash and short term liquid assets
Amounts due from related parties
Amounts due from other financial institutions
Investment in debt instruments
Corporate loans originated by the Bank*
Acceptances of customers
Other assets
Total

516,647,282
652,167,470
164,999,409
500,052,736
3,686,936,311
12,384,166
1,768,299
5,534,955,673

594,524,778
208,544,641
149,999,493
835,602,962
3,910,299,735
2,463,987
2,148,502
5,703,584,098

Off Balance Sheet
Guarantee given
Performance related contingencies
Trade related contingencies
Undrawn facility commitments
Total

58,354,747
142,653,957
17,642,890
2,340,141,242
2,558,792,836

32,815,637
156,417,334
30,619,161
2,468,833,514
2,688,685,646

96,141,989

145,184,549

Notional Principal

Fair Value
Derivative instruments* Total gross loans, excluding provision. Refer to Note 4

18
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
11.

Concentration of Credit Risk (continued)i.

Concentration of Credit Risk by Customer Industry Sector
As at
30 September 2021
Unaudited

As at
30 September 2020
Unaudited

NZD

NZD

151,823,996
74,667,133
74,003,729
700,793,787
2,415,329,988
81,892,206
303,332,499
75,817,714
250,075,277
84,870,032
404,761,256
149,994,273
80,130,037
308,007,194
364,039,675
15,416,877
5,534,955,673

169,104,837
170,278,178
60,011,749
835,910,666
2,326,098,386
77,798,347
340,933,002
100,349,224
174,948,815
49,889,869
427,866,609
293,348,688
60,080,838
318,428,496
274,936,524
23,599,870
5,703,584,098

29,307,245
171,656,345
9,874,341
609,349,573
425,263,932
560,076,000
13,028,020
11,585,860
149,841,517
104,701,078
76,874,665
279,167,870
103,003,883
15,062,507
2,558,792,836

73,714,286
139,067,194
723,487,361
355,833,941
626,274,174
1,858,020
98,814125,112,619
6,401,681
97,692,429
102,229,763
272,400,739
151,796,869
12,717,756
2,688,685,646

Notional Principal
On Balance Sheet
Communications
Construction
Education
Electricity, gas and water
Finance
Fishing
Food manufacturing
Forestry
Health care & social assistanceMiningOther manufacturing
Property and business services
Retail Trade
Transport and storage
Wholesale trade
Wood and paper manufacturing
Total

Notional Principal
Off Balance Sheet
Communications
Construction
Education
Electricity, gas and water
Finance
Food manufacturing
Forestry
Health care & social assistance
Other manufacturing
Property and Business Services
Public administration and safety
Retail trade
Transport and storage
Wholesale trade
Wood and paper manufacturing
Total

19
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
11.

Concentration of Credit Risk (continued)

Fair Value
Derivatives
Communications
Construction
Electricity, gas and water
Finance
Fishing
Food manufacturing
Forestry
MiningOther manufacturing
Transport and storage
Wholesale trade
Wood and paper manufacturing
Total

ii.

2,079,258
14,160,731
57,025,461
1,974,741
1,756,245
232,057
1,438,894
5,334,402
7,562,004
1,428,548
3,149,648
96,141,989

1,439,493
591,175
44,911,270
60,386,809
3,548,649
6,906,667
91,446
13,500,042
10,247,644
3,432,843
128,511145,184,549

Concentration of Credit Risk by Customer Geographical Location
As at
30 September 2021
Unaudited
NZD

As at
30 September 2020
Unaudited
NZD

Notional Principal
On Balance Sheet
New ZealandJapan
Australia
U.S.A.
FranceMalaysia
Total

4,128,968,513
685,288,893
587,298,219
3,550,379
16
129,849,653
5,534,955,673

4,747,802,642
265,784,735
689,206,622
790,099
5,703,584,098

2,547,441,816
2,184,864
164,388
9,001,768
2,558,792,836

2,676,464,371
7,333,941
4,887,334
2,688,685,646

39,257,432
56,761,514
123,043
96,141,989

88,993,260
55,395,819
795,470
145,184,549

Off Balance Sheet
New ZealandJapan
Australia
Other
Total
Fair value
Derivatives
New ZealandJapan
Australia
Total

20
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
11.

Concentration of Credit Risk (continued)iii.

Concentration of Credit Risk by Customer Credit Rating

The following tables set out the credit quality information for balances which are neither past due nor impaired.
Please refer to Note 18 for impaired assets.
30 September 2021
Unaudited
Credit Rating
1-2
3-7
8-9

S&P Rating
A- and above
B- to BBB+
CCC+/- andbelow

Notional principal
On balance Sheet
1,540,432,259
3,342,298,712-

Off balance Sheet
885,198,694
1,671,409,278-

Derivative financial
instruments
2,247,252
37,133,223
21,255652,224,702
5,534,955,673

2,184,864
2,558,792,836

56,740,259
96,141,989

On balance Sheet
1,693,305,682
3,801,733,431-

Off balance Sheet
411,482,656
2,269,869,049-

Derivative financial
instruments
16,320,380
73,317,664
250,901

208,544,985
5,703,584,098

7,333,941
2,688,685,646

55,295,604
145,184,549

Not rated**

30 September 2020
Unaudited
Credit Rating
1-2
3-7
8-9

S&P Rating
A- and above
B- to BBB+
CCC+/- andbelow

Notional principal

Not rated**

There is no period end aggregate exposure equal to or exceeding 10% of the global equity of the Overseas Banking
Group.
**The ‘not rated’ exposure is related to inter-branch exposure.

Collateral and other credit enhancements
The general nature and amount of collateral or other credit enhancements taken to mitigate the credit risk of eachfinancial asset class are summarized as follows:a.

Cash and short term liquid assets
These exposures are mainly to relatively low risk banks (rate A+, AA- or better). These balances are notcollateralised.

b. Amounts due from related parties
These exposures are generally considered to be low risk due to the nature of the counterparties. There are
typically no collateral or other credit enhancements obtained in respect of amounts due from related parties.
c.

Amounts due from other financial institutions
The balance is short term deposit to other financial institutions. Collateral is not generally sought on thesebalances as exposures are considered to be of low risk.

21
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
11.

Concentration of Credit Risk (continued)
d. Investment in debt instruments
These exposures are with the New Zealand government. Collateral is not sought directly with respect to these
exposures.
e.

Derivative instruments
The Branch is exposed to credit risk on derivative contracts, which arises as a result of counterparty credit risk.
This credit risk from derivatives is mitigated where possible through master netting agreements whereby
derivative assets and liabilities with the same counterparty can be offset. A master netting agreement provides
the contractual framework within which dealing activities across a range of over-the-counter products are
conducted and contractually binds both parties to apply close-out netting across all outstanding transactions
covered by an agreement if either party defaults or other predetermined events occur. There have been noamounts set off in the statement of financial position for derivative assets and derivative liabilities as at 30
September 2021 (2020: Nil).
Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements.
As at 30 September 2021
NZD
Gross amounts ofrecognized financial
assets(a)

Derivatives

96,141,989

Gross amounts ofrecognized financial
liabilities set off inthe statement offinancial position(b)

Net amounts offinancial assets
presented in thestatement offinancial position(c) = (a) – (b)-96,141,989

6,486,511

89,655,478

Related amounts notsetoff in thestatement offinancial position(d)

Net amount(e) = (c) – (d)As at 30 September 2020
NZD

Derivatives

Gross amounts ofrecognized financial
assets(a)Gross amounts ofrecognizedfinancial liabilities
set off in thestatement offinancial position(b)

Net amounts offinancial assets
presented in thestatement offinancial position(c) = (a) – (b)Related amounts notsetoff in thestatement offinancial position(d)

Net amount(e) = (c) – (d)145,184,549-

145,184,549

5,544,289

139,640,260

22
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
11.

Concentration of Credit Risk (continued)
Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements.
As at 30 September 2021
NZD
Gross amounts ofrecognized financial
liabilities(a)Gross amounts ofrecognized financial
assets set off in thestatement of financial
position(b)

Net amounts of financial
liabilities presented in thestatement of financial
position(c) = (a) – (b)Related amounts notsetoff in the statementof financial position(d)

Net amount(e) = (c) – (d)99,497,436-

99,497,436

6,486,511

93,010,925

Gross amounts ofrecognized financial
liabilities(a)Gross amounts ofrecognized financial
assets set off in thestatement of financial
position(b)

Net amounts of financial
liabilities presented in thestatement of financial
position(c) = (a) – (b)Related amounts notsetoff in thestatement offinancial position(d)

Net amount(e) = (c) – (d)150,587,671-

150,587,671

5,544,290

145,043,381

Derivatives

As at 30 September 2020
NZD

Derivatives

Collateral is obtained against derivative assets, depending on the creditworthiness of the counterparty. There has
been no collateral obtained against derivative assets for the six months ended 30 September 2021 (2020: Nil).
f.

Acceptances of customers and other assets
Collateral is generally not sought on these balances. For acceptances of customers, similar credit review
processes as corporate loans originated by the Bank are performed.

g.

Corporate loans originated by the Bank
The Branch assesses the integrity and ability of counterparties to meet their contracted financial obligation for
repayment. Principal collateral types for corporate loans include:i. Cash (usually in the form of a charge over a deposit)
ii. Guarantee received from third parties
iii. Charges over business assets such as real estate, aircraft and ships
In other instances, a client’s facilities may be secured by collateral with value less than the carrying amount of
the credit exposure. These facilities are deemed secured, partially secured or unsecured.
The Branch lending is generally to large corporate counterparties of strong financial standing, the majority ofwhich borrow on unsecured terms. If there is collateral received during loan drawdown, the value of thecollateral will be checked against the agreement to ensure that it is either equal to or over the agreed value. The
total collateral value as at 30 September 2021 is over NZD 1,064,291,580 which is based on guarantees received
from third parties, the current unaudited financial accounts, and market value of business assets.

On Balance Sheet

Maximum exposure

As at
30 September 2021
Unaudited
NZD%
5,534,955,673 100.00

As at
30 September 2020
Unaudited
NZD%
5,703,584,098
100.00Collateral classification
SecuredPartially secured
Unsecured

765,248,166
23,631,091
4,746,076,416

711,862,382
12,921,849
4,978,799,867

13.83
0.43
85.75

12.48
0.23
87.29
23

MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
11.

Concentration of Credit Risk (continued)
h. Undrawn facility commitments and contingent liabilities
The Branch applies the same principle for off balance sheet risk as it does for its on balance sheet risks.
In the case of undrawn facility commitments, counterparties will be subject to the same principle as corporateloans and collateral may be sought depending on the strength of the counterparty and the nature of thetransaction.
Off Balance Sheet

12.

Maximum exposure

As at
30 September 2021
Unaudited
NZD%
2,558,792,836
100.00As at
30 September 2020
Unaudited
NZD%
2,688,685,646 100.00

Collateral classification
SecuredPartially secured
Unsecured

282,036,740
2,276,756,096

260,438,169
2,428,247,477

11.02
88.98

9.69
90.31

Concentration of Funding
Concentration of funding is determined by management to be by counterparty type and geographical location.
The geographical locations reflect the primary location of the underlying depositor.
As at
30 September 2021
Unaudited
NZDa) Category analysis
Customer deposits
Due to related partiesb) Counterparty analysis
Agriculture
Communications
Constructions
Electricity, gas and water
Finance
Fishing
Food Manufacturing
Forestry
Insurance
Other Industries
Other Manufacturing
Property and business services
Public administration and safety
Retail trade
Transport and Storage
Wholesale Trading
Wood and Paper Manufacturing

As at
30 September 2020
Unaudited
NZD

2,467,435,305
2,771,135,605
5,238,570,910

1,638,812,496
3,804,274,230
5,443,086,726

3,586,108
1,811,156
59,164,597
302,971,697
3,776,817,176
7,912
24,761,555
70,035,962
26,010,154
200,775,917
46,664,666
20,009,359
180,262,603
67,715349,396,119
169,715,266
6,512,948
5,238,570,910

6,962,497
8,928,586
60,758,381
132,599,403
4,599,346,635
8,356
18,819,368
15,218,589
32,017,886
172,815
68,832,272
20,029,838
20,026,575
68,578279,214,610
176,970,951
3,111,386
5,443,086,726

1,556,198,319
2,451,469,432
1,223,170,755
7,732,404
5,238,570,910

3,119,438,411
1,625,104,860
615,866,258
69,719,367
12,957,830
5,443,086,726c) Geographical analysis
Australia
New ZealandJapan
SingaporeFiji

24
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
13.

Interest Rate Risk
Interest rate risk is the risk of loss to the Branch arising from movements in interest rates thereby having an adverse
effect on the net interest earnings of the Branch in the current reporting period and in future years.
The following table represents the interest rate sensitivity gap of the Branch as at the reporting date. It analyses the
Branch’s assets and liabilities into relevant maturity groupings based on the earlier of residual contractual maturity
or interest repricing date. One of the major causes of the mismatches is timing differences in the repricing of theassets and liabilities. These mismatches are managed by the Sydney Branch as part of the overall risk management
process conducted in accordance with strict policy guidelines.

30 September 2021
Unaudited
Over 3 months
and up to 6
monthsNZD

Up to 3 months
NZD

Over 6 months
and up to 1
year
NZD

Over 1 year
and up to 2
years
NZD

Over 2years
NZD

NON INTERESTSENSITIVE
NZD

WEIGHTED
AVE. EFF.
RATE
%

TOTAL
NZD

ASSETSCash and short term liquid assets

516,647,282

-

-

-

-

-

516,647,282

0.00%

Amounts due from related parties
Amounts due from other financial
institutions
Investment in debt instruments
Corporate loans originated by theBank
Acceptances of customers
Property, plant and equipment
Other assets

28,972,622

15,410,724

-

-

-

607,784,124

652,167,470

0.62%

164,999,409
229,195,256

30,267,091-

215,801,494

24,788,895-

164,999,409
500,052,736

0.52%
0.85%

3,216,231,949-

277,226,357-

77,778,294-

90,729,534-

24,970,177-(822,952)
12,384,166
1,418,317
98,280,043

3,686,113,359
12,384,166
1,418,317
98,280,043

1.62%

Total assets

4,156,046,518

322,904,172

77,778,294

306,531,028

49,759,072

719,043,698

5,632,062,782

Amounts due to related parties
Deposits
Lease liability
Liability for acceptances
Other liabilities

2,575,400,544
2,300,242,076-

186,018,310
160,349,508-

2,054,608-

7,567,865-

94,278
6,843,721--

1,056,471-

12,384,166
103,094,048

2,771,135,605
2,467,435,305
1,056,471
12,384,166
103,094,048

Total liabilities

4,875,642,620

346,367,818

2,054,608

7,567,865

1,056,471

122,416,213

5,355,105,595

Over 6 months
and up to 1
year
NZD

Over 1 year
and up to 2
years
NZD

Over 2years
NZD

LIABILITIES
0.74%
0.61%
2.61%

30 September 2020
Unaudited
Over 3 months
and up to 6
monthsNZD

Up to 3 months
NZD

NON INTERESTSENSITIVE
NZD

WEIGHTED
AVE. EFF.
RATE
%

TOTAL
NZD

ASSETSCash and short term liquid assets

594,524,778

-

-

-

-

-

594,524,778

0.00%

Amounts due from related parties
Amounts due from other financial
institutions
Investment in debt instruments
Corporate loans originated by theBank
Acceptances of customers
Property, plant and equipment
Other assets

75,007,250

-

-

-

-

133,537,391

208,544,641

0.58%

149,999,493
445,728,415

55,434,630

104,502,937-

229,936,980-

149,999,493
835,602,962

0.35%
0.46%

3,648,101,848-

194,097,550-

32,056,386-

16,388,780-

19,655,171-(830,666)
2,463,987
1,407,850
147,942,851

3,909,469,069
2,463,987
1,407,850
147,942,851

1.32%

Total assets

4,913,361,784

249,532,180

136,559,323

16,388,780

249,592,151

284,521,413

5,849,955,631

Amounts due to related parties
Deposits
Lease liability
Liability for acceptances
Other liabilities

3,634,261,019
1,358,087,019

8,003,170
27,371,423

3,757,220---

11,631,956
1,398,035-

4,076,224
6,118,524-

142,544,641
247,235,530
1,790-

2,463,987
161,565,592

3,804,274,230
1,638,812,496
1,399,825
2,463,987
161,565,592

Total liabilities

4,992,348,038

389,781,961

35,374,593

3,757,220

13,029,991

174,224,327

5,608,516,130

LIABILITIES25
MUFG Bank, Ltd.
Auckland Branch

0.64%
0.69%
1.70%

Notes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
13.

Interest Rate Risk (continued)
At 30 Sep 2021, assuming that all other variables held constant, if interest rates had been 50 basis points higher,
post-tax profit for the year would have been NZD 3 million lower (2020: NZD 0.6M lower) due to decrease in net
interest income. It is due to the increase in funding cost by using shorter term of funding to longer term of lending.
If interest rate had been 50 basis points lower with all the variables held constant, post-tax profit would have been
NZD 3 million higher (2020: NZD 0.6M higher) due to increase in net interest income as a result of the funding
gap. The impact of interest rate movement on pre-tax profit is immaterial due to the back to back transactions withSydney Branch to minimize any long term interest rate risk.

14.

Maturity Analysis for Assets and Liabilities
The tables below analyse the Branch’s financial assets and liabilities, as required by NZ IFRS 7 “Financial
Instruments: Disclosures”, in relevant maturity groupings based on the remaining period at the reporting date to thecontractual maturity date. The tables have been drawn up based on the undiscounted cash flows of financial assets
and liabilities based on the earliest date on which the obligation is crystallised. There is no expectation that the
principal or interest will be repaid or received earlier than the obligation. The table includes both interest andprincipal cash flows. Therefore, they may differ to the carrying amounts on the condensed statement of financial
position.

30 September 2021
Unaudited
On Demand
NZD

To 1 Month
NZD

1 to 3Months
NZD

3 to 12Months
NZD

1 to
5 Years
NZD

Over 5
Years
NZD

Total
NZD

ASSETSCash and short term liquid assets
Amounts due from related parties
Amounts due from other financial
institutions
Investment in debt instruments
Corporate loans originated by theBank

516,647,282
607,784,123

10,392,997

18,579,626

15,410,724--

516,647,282
652,167,470-

80,000,000
131,125,000

85,000,000
102,000,000

36,125,000

238,500,000-

165,000,000
507,750,000
3,826,216,942

504,339,012

27,676,318

96,084,683

641,946,401

2,467,337,354

88,833,174

Acceptances of customers-

4,944,934

7,439,232---

12,384,166

Derivative instruments-

5,051,041

12,313,603

40,273,675

126,775,979

65,343,259

249,757,557

1,628,770,417

1,768,299
260,958,589

321,417,144

733,755,800

2,832,613,333

154,176,433

1,768,299
5,931,691,716

552,959,168
2,340,141,242
2,893,100,410

1,170,446,452
867,964,737
4,944,934
5,051,015
9,686
850,000
47,114,118
161,929
2,096,542,871

609,958,393
686,532,498
7,439,232
12,311,195
19,43330,000,000
24,842,126
1,371,102,877

695,204,953
360,645,377
40,337,866
88,484
12,635,020
61,045,556
17,480,961
1,187,438,217

307,155,587
117,628,028
529,285
14,126,500
9,652,157
449,091,557

68,388,064
409,583
743,227
69,540,874

2,782,765,385
2,468,101,780
12,384,166
243,716,168
1,056,471
2,340,141,242
58,354,747
142,653,957
17,642,890
8,066,816,806

Other assets

LIABILITIESAmounts due to related parties
Deposits
Acceptances
Derivative instruments
Lease liability
Gross loan commitment
Guarantee given
Performance related contingencies
Trade related contingencies

26
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
14.

Maturity Analysis for Assets and Liabilities (continued)

30 September 2020
Unaudited
On Demand
NZD

1 to 3MonthsNZD

To 1 Month
NZD

3 to 12Months
NZD

1 to
5 Years
NZD

Over 5
Years
NZD

Total
NZD

ASSETSCash and short term liquid assets
Amounts due from related parties
Amounts due from other financial
institutions
Investment in debt instruments
Corporate loans originated by theBank594,524,778
133,537,391-

75,007,250

-

-

-

594,524,778
208,544,641-

215,500,000

150,000,000
235,000,000

163,500,000

222,000,000-

150,000,000
836,000,000
4,034,737,360

385,980,565

34,588,506

35,909,430

832,345,961

2,630,476,525

115,436,373

Acceptances of customers-

2,238,349

225,638---

2,463,987

Derivative instruments-

4,833,560

7,966,708

32,624,566

98,555,570

22,163,831

166,144,235

1,114,042,734

2,148,502
259,308,917

504,109,026

1,028,470,527

2,951,032,095

137,600,204

2,148,502
5,994,563,503

407,316,792
2,468,833,514
2,876,150,306

2,330,539,736
494,597,974
2,238,349
4,835,418
14,649350,000
10,530,922
2,843,107,048

1,112,327,216
262,330,995
225,638
7,838,116
29,35575,630,489
1,458,381,809

355,706,476
275,444,632
33,393,240
129,51030,590,910
67,155,923
30,619,161
793,039,852

10,731,035
199,850,000
107,298,523
777,918
1,131,500
3,100,000
322,888,976

21,015,421
448,393743,227
22,207,041

3,809,304,463
1,639,540,393
2,463,987
174,380,718
1,399,825
2,468,833,514
32,815,637
156,417,334
30,619,161
8,315,775,032

Other assets

LIABILITIESAmounts due to related parties
Deposits
Acceptances
Derivative instruments
Lease liability
Gross loan commitment
Guarantee given
Performance related contingencies
Trade related contingencies

15.

Fair Value of Financial Instruments

Quoted market prices, where available, are used to estimate the fair value of financial instruments. However, quoted market
prices are not available for a substantial portion of financial instruments and fair value for such financial instruments is
estimated using discounted cash flow models that utilise prices from observable current market transactions or othervaluation techniques. The summary table shows the carrying amounts and estimated fair values of financial instruments asat the reporting date. The methodologies and assumptions used to estimate the fair value of the financial instruments are:a.

For those assets or liabilities that are short term in nature, the related carrying value is equivalent to their fair value.

b.

For floating rate loans and deposits, the carrying amount in the statement of financial position is considered areasonable estimate of their fair value after making allowances for impairment. For fixed rate loans and deposits, fairvalue is estimated using discounted cash flow models based on current market rates. The differences between
estimated fair value of loans and deposits and carrying value reflect the difference between observable market interest
rates and customer rates on day one and changes in interest rates since loans and deposits origination.

c.

The fair values of derivative instruments are calculated using the discounted cash flow model. Swap transactions aremeasured at the present value of future cash flows estimated and discounted based on the applicable yield curves
derived from observable interest rates. Foreign currency forward contracts are measured using observable forward
exchange rates and yield curves derived from observable interest rates matching maturities of the contracts.

d.

The fair values of investment of debt instruments are derived from quoted prices in the active market.

27
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
15.

Fair Value of Financial Instruments (continued)

30 September 2021
Unaudited

Note

FVTPL

FVOCI

NZD
AssetsCash and cash equivalents
Amounts due from related parties
Amounts due from other financial
institutions
Investment in debt instruments
Corporate loans originated by the
Bank
Other assets
Total financial assets
Liabilities
Amounts due to related parties
Deposits
Other liabilities
Total financial liabilities

30 September 2020
Unaudited

AssetsCash and cash equivalents
Amounts due from related parties
Amounts due from other financial
institutions
Investment in debt instruments
Corporate loans originated by the
Bank
Other assets
Total financial assets
Liabilities
Amounts due to related parties
Deposits
Other liabilities
Total financial liabilities

NZD

a
a

-

a
d

Amortised
cost

Other
Amortised Cost

Total Carrying
AmountFair Value

NZD

NZD

NZD

NZD

-

516,647,282
652,167,470-

516,647,282
652,167,470

516,647,282
652,167,470--

164,999,409-

164,999,409

164,999,409-

500,052,736--

500,052,736

500,052,736

b

-

-

3,686,113,359-

3,686,113,359

3,686,878,727

c, a

96,141,989
96,141,989

500,052,736

14,152,465
5,034,079,985-

110,294,454
5,630,274,710

110,294,454
5,631,040,078

b
a, b
c

99,497,436
99,497,436-

12,384,166
12,384,166

2,771,135,605
2,467,435,305
5,238,570,910

2,771,135,605
2,467,435,305
111,881,602
5,350,452,512

2,772,850,518
2,468,776,085
111,881,602
5,353,508,205

Note

FVTPL

FVOCI

Amortised
cost

Other
Amortised Cost

Total Carrying
AmountFair Value

NZD

NZD

NZD

NZD

NZD

NZD

a
a

-

-

594,524,778
208,544,641-

594,524,778
208,544,641

594,524,778
208,544,641

a
d

-

-

149,999,493-

149,999,493

149,999,493-

835,602,962--

835,602,962

835,602,962

b

-

-

3,909,469,069-

3,909,469,069

3,911,459,477

c, a

145,184,549
145,184,549

835,602,962

4,571,371
4,867,109,352-

149,755,920
5,847,896,863

149,755,920
5,849,887,271

b
a, b
c

150,587,671
150,587,671-

2,463,987
2,463,987

3,804,274,230
1,638,812,496
5,443,086,726

3,804,274,230
1,638,812,496
153,051,658
5,596,138,384

3,807,452,515
1,643,097,894
153,051,658
5,603,602,067

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fairvalue, grouped into Level 1 to 3 based on the degree to which the fair value is observable.


Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets
or liabilities.



Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 thatare observable for the asset or liability for substantially the entire term of the instrument, either directly (i.e. as prices)or indirectly (i.e. derived from prices).
28
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
15.


Fair Value of Financial Instruments (continued)
Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability
that are not based on observable market data (unobservable inputs).
30 September 2021
Level 1
Level 230 September 2020
Level 1
Level 2Derivative financial assets
Interest rate swaps
Currency swaps
Currency options
FX forwards
Total derivative financial assets-

45,516,801
30,704,000
19,921,188
96,141,989-

96,264,063
33,243,791
15,676,695
145,184,549

Derivative financial liabilities
Interest rate swaps
Currency Swaps
Currency Options
FX forwards
Total derivative financial liabilities-

47,455,999
32,092,146
19,949,291
99,497,436-

101,184,696
33,687,141
15,715,834
150,587,671

500,052,736-

835,602,962-

Investment in debt instruments

Financial assets and financial liabilities, other than the items on the above table, are carried at amortised cost. Their fairvalue is represented by level 2 fair value measurements.
There were no financial assets and liabilities carried at fair value categorised under Level 3 in this period.
16.

Liquidity Risk Management
Liquidity risk is the risk that the Branch will not have sufficient funds to meet its financial obligations. The Branch
has policies to ensure that sufficient funds are available to meet its obligations as and when they fall due, and tomaintain a prudent level of liquidity buffer to meet unexpected demands for funds under adverse market conditions.
To achieve this objective, the Branch adopts a set of liquidity management strategies which limits the liquidity risk toacceptable levels. The compliance of such internal limits are being independently monitored and regularly reported to
the Regional Head for Oceania. A contingency plan has been developed in the event of a major liquidity problem. The
operations of the Branch are subject to these policies.
The Branch measures its liquidity requirements by undertaking scenario analysis under the following three scenarios:
Going-concern – which refers to the normal behavior of cash flows in the ordinary course of business and would form
the day-to-day focus of the Branch’s liquidity management.
Bank-specific (“name”) crisis – which covers the behavior of cash flows where there is some actual or perceived
problem with the Branch.
Liquidity Coverage Ratio – a one month liquidity stress described in the APRA APS 210 standard
The Branch is committed to raising its liabilities from a wide range of institutional and corporate lenders. This reduces
dependence upon certain lenders and the possibility that a large portion of the deposit base will be withdrawn withlittle notice. As part of its liquidity management policies, the Branch maintains a portfolio of readily liquid assets andhas established committed funding arrangements from other institutions. Liquidity is managed by the Treasury
Department of the Sydney Branch with oversight from the Oceania Region Asset and Liability Management
Committee. Reports on liquidity are reviewed by the Regional Head for Oceania, sent to the Parent Bank daily andpresented to the Oceania Region Asset and Liability Management Committee monthly.

29
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
16.

Liquidity Risk Management (continued)
The Branch holds the following liquid assets in order to manage its liquidity risk:
As at
30 September 2021
Unaudited
NZD
Cash and short term liquid assets
Amounts due from related parties
Amounts due from other financial institutions
Investment in debt instruments

17.

516,647,282
652,167,470
164,999,409
500,052,736
1,833,866,897

As at
30 September 2020
Unaudited
NZD
594,524,778
208,544,641
149,999,493
835,602,962
1,788,671,874

Profitability and Sizea)Profitability

The Overseas Banking GroupSix Months
ended
30 September 2021
JPY(000’s)
Net Profit After Tax
Net Profit After Tax over the previous 12 months
period as a percentage of average total assetsb)471,638,000

216,749,000

0.20%-0.02%Size
Six Months
ended
30 September 2021
JPY(000’s)

Total Assets% Change in total assets over the previous 12 months

18.

Six Months
ended
30 September 2020
JPY(000’s)

Six Months
ended
30 September 2020
JPY(000’s)

289,269,608,000

281,614,967,000

2.72%

11.61%

Asset Quality(i)

The Overseas Banking GroupAs at
30 September 2021
JPY(000’s)

As at
30 September 2020
JPY(000’s)

Total individually impaired assets (before allowances
for credit impairment loss and net of interest held insuspense)

1,121,828,000

1,077,595,000

Total individually impaired assets expressed as apercentage of total assets

0.39%

0.38%

256,234,000

257,758,000

22.84%

23.92%

617,268,000

629,628,000

Total individually credit impairment allowance
Total individually credit impairment allowance
expressed as percentage of total individually impaired
assetsTotal collective credit impairment allowance30
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
18.

Asset Quality (continued)(ii)

MUFG Bank, Ltd., Auckland Branch.

The provision for impairment is based on NZ IFRS 9’s impairment model which requires the Branch to recognised
expected credit losses (ECL) based on unbiased forward looking information. The Branch will incorporate allavailable information which is relevant to the assessment including information about past events, current
conditions and reasonable and supportable forecasts of economic conditions at the reporting date.
In estimating individual and collective provision for ECL, the Branch based the judgments and assumptions under
MUFG Bank’s policy and procedure on determining borrower rating which is considering the quantitative analysis(the financial analysis and performance, etc.) and qualitative analysis (industry trend, corporate competitiveness,management policy, etc.) for the customer. This borrower rating already includes forward looking factors including
the continuing impact of COVID-19 and the resulting government policies which reflect the Branch’s view of themost likely future macro-economic conditions.
The modelling methodology applied in estimating ECL in this financial statement is consistent with that applied in
the Branch’s Financial Statements for the year ended 30 March 2021.
The Branch does not have any individually impaired assets that have been recognized, any individual credit
impairment allowances, and any assets that are less than 30 days past due; at least 30 days but less than 60 days
past due; at least 60 days but less than 90 days past due; and at least 90 days past due but not impaired as at 30
September 2021 (30 September 2020: Nil).
The Branch did not charge or credit to the condensed statement of comprehensive income for any increase or
decrease in individual credit impairment allowances during the half year accounting period ended 30 September
2021 (30 September 2020: Nil).
The total interest income recognized on impaired assets over the half year accounting period ended 30 September
2021 is Nil (30 September 2020: Nil).
There is no undrawn balance on lending commitments to counterparties for whom drawn balances are classified as
individually impaired. There are no other amounts under administration.
The Branch does not have any financial assets designated as at fair value through profit or loss on which there havebeen changes in fair value that are attributable to changes in credit risk of the financial asset.
Movement in balance of collective credit impairment allowance:
The following table reconciles the opening balance to the closing balance of provision for impairment losses:

Stage 1Loan

NZD
Provision for impairment charges as at 31 March 2021
Net transfers in / (out) of stages *New financial assets originatedFinancial assets derecognized during the period
Change in ECL due to net further lending / repayment
Change in ECL due to amounts written-off
Total provision for ECL as at 30 September 2021

1,018,199
112,191(187,318)(120,120)
822,952

Financialguarantee
andcommitments
463,600
123,515(110,368)(24,134)
452,613

Total

1,481,799
235,706(297,686)(144,254)
1,275,565* Represents the transfers between stages

31
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
18.

Asset Quality (continued)
Impacts of changes in gross financial assets on credit impairment allowance:
The following table reconciles the opening balance to the closing balance of the pre-allowance corporate loans
originated by the Bank:
As at
30 September 2021
Unaudited
NZD
Balance at beginning of the period
Additions
Amounts written off
Deletions
Balance at the end of the period (Note 4)19.

4,046,901,264
993,665,374(1,353,630,327)
3,686,936,311

Exposures to Market Risk
Aggregate market risk exposures of MUFG Bank, Ltd., Auckland Branch have been derived in accordance with
Schedule 9 of the Reserve Bank Order.
Six Months ended
30 September 2021
Unaudited
NZD(000’s)Six Months ended
30 September 2020
Unaudited
NZD(000’s)(1) Aggregate Interest Rate Exposure(a)Notional capital charge*

2,459

5,568

(b)

Implied risk weighted exposure

30,73869,600* The Notional Capital Charge is calculated in accordance with Capital Adequacy Framework (Standardized
Approach) BS2A.
Peak End of Day
Ending30 September 2021
Unaudited
NZD(000’s)Peak End of Day
Ending30 September 2020
Unaudited
NZD(000’s)(2) Aggregate Interest Rate Exposure(a)Notional capital charge**

6,358

6,860

(b)

Implied risk weighted exposure

79,47585,750** The peak end of day notional capital charge has been derived by determining the maximum over the period at
the close of each business day derived in accordance with capital adequacy framework (Standardized approach)
BS2A.
(3) Aggregate Foreign Currency Exposure

MUFG Bank, Ltd., Auckland Branch does not have any significant foreign currency exposures.
32
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
18.

Exposure to Market Risk (continued)(4) Aggregate Equity Exposure

MUFG Bank, Ltd., Auckland Branch does not have any equity exposures.
By entering into foreign exchange transactions, interest rate swap transactions, currency swap
transactions and long term fixed interest deposits with the Sydney Branch, the Branch does not holdany significant foreign exchange exposure and long term interest rate exposure. Under thisarrangement, the Branch is exposed to limited market risk which is immaterial.
20.

Capital Adequacy
The capital adequacy guidelines adopted by the Financial Services Agency (FSA) in Japan 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 31 March, 2007. Certain provisions ofBasel III have been adopted by the FSA for Japanese banking institutions with international operations conducted
through their foreign offices and became effective 31 March 2013. As a result, the minimum capital required by
FSA is at least equal to Basel II.
The Financial Stability Board identified the Overseas Banking Group as a global systematically important bank,or G-SIB, in its most recent annual report published in November 2017.
Effective 31 March, 2016, the FSA’s capital conservation buffer, countercyclical buffer and G-SIB surcharge
requirements became applicable to Japanese banking institutions with international operations conducted throughforeign offices. From 31 March 2019, the Overseas Banking Group will be required to maintain a capitalconservation buffer of 2.5%, a countercyclical buffer of up to 2.5%, and a G-SIB surcharge of 1.5%, assuming theOverseas Banking Group will be in Bucket 2 of the G-SIB list.
The table below presents the minimum consolidated risk-based capital ratios from 31 March 2021:

Minimum Common Equity Tier 1 ratio
Capital Conservation Buffer
Countercyclical Buffer
G-SIB Surcharge
Total
Minimum Tier 1 ratio
Minimum Capital ratio

2020
4.50%
2.50%
0.01%
1.50%
8.51%
10.01%
12.01%

2021
4.50%
2.50%
0.00%
1.50%
8.50%
10.00%
12.00%

Both the Overseas Banking Group and the Overseas Bank met those requirements at the reporting date.
Overseas Banking Group
Capital ratios:
Common Equity Tier 1 capital
Tier 1 capital
Total capital

As at
30 September 2021
Unaudited

As at
30 September 2020
Unaudited

12.05%
13.69%
15.81%

11.13%
12.66%
15.00%

33
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
20.

Capital Adequacy (continued)
Overseas Bank
Capital ratios:
Common Equity Tier 1 capital
Tier 1 capital
Total capital

As at
30 September 2021
Unaudited

As at
30 September 2020
Unaudited

11.47%
13.31%
15.32%

11.15%
12.90%
15.22%The most recent publicly available information in relation to capital adequacy framework implemented by theoverseas bank and overseas banking group are disclosed under the ultimate holding company’s annual reportwhich can be accessed via the Bank’s global website: www.mufg.jp.
21.

Insurance Business
MUFG Bank, Ltd., Auckland Branch does not conduct any insurance business in or outside New Zealand.

22.

Non-Consolidated Activities
MUFG Bank, Ltd. does not conduct any insurance business or non-financial activities in New Zealand outside
MUFG Bank, Ltd., Auckland Branch.

23.

Securitization, Funds Management, and Other Fiduciary Activities(a) MUFG Bank, Ltd., Auckland Branch is not involved in any establishment, marketing, or sponsorship of trust,custodial, funds management or other fiduciary activities.
(b) MUFG Bank, Ltd., Auckland Branch is not involved in any origination of securitized assets or in the marketingor servicing of securitization schemes.
(c) MUFG Bank, Ltd., Auckland Branch is not involved in the marketing and distribution of insurance products.

24.

Risk Management Policies
The risk management policies and procedures of the Branch conform to those of the ultimate parent bank, MUFG
Bank, Ltd. (“the Parent Bank”).
The Branch's application of risk management systems is subject to review by the Parent Bank Internal Audit Office
on a regular basis.
There have been no material changes to the risk management polices since publication of the previous DisclosureStatement.

25.

Financial Support
The Auckland Branch is part of MUFG Bank, Ltd. The assets of the Branch are legally available for the satisfactionof debts of the entire company, not solely those appearing in the accompanying statement of financial position, andits debts may result in claims against assets not appearing thereon.

34
MUFG Bank, Ltd.
Auckland BranchNotes to the Condensed Interim Financial Statements
For the Six Months Ended 30 September 2021
26.

Subsequent Events
There has not been any matter or circumstance, other than that referred to in the financial statements or notes thereto,that has arisen since the six months ended 30 September 2021, that has significantly affected, or may significantly
affect, the operations of the Branch, the results of the operations, or the state of affairs of the Branch in futurefinancial years.
The impact of COVID-19 pandemic has not resulted in any specific subsequent event.

35
MUFG Bank, Ltd.
Auckland Branch

INDEPENDENT AUDITOR’S REVIEW REPORTTO THE SHAREHOLDERS OF MUFG BANK, LTD. AUCKLAND BRANCH
Conclusion
We have reviewed pages 7 to 35 of the Disclosure Statement of MUFG Bank, Ltd. Auckland Branch (‘the Branch’),which consists of the condensed interim financial statements of the Branch and the supplementary information
required to be disclosed under Schedules 5, 7, 9, 12 and 14 of the Registered Bank Disclosure Statements (Overseas
Incorporated Registered Banks) Order 2014 (as amended) (the ‘Order’).
The condensed interim financial statements comprise the condensed statement of financial position of the Branchas at 30 September 2021, and the condensed statement of comprehensive income, condensed statement ofchanges in equity and statement of cash flows for the six months ended on that date, and a summary of significant
accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that:•the condensed interim financial statements on pages 7 to 35 (excluding the supplementary information)
have not been prepared and do not present fairly, in all material respects, the financial position of the
Branch as at 30 September 2021 and its financial performance and cash flows for the six months ended onthat date in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial Reporting;•the supplementary information (excluding information relating to credit and market risk exposures andcapital adequacy) disclosed in accordance with Schedules 5, 7, 12 and 14 of the Order does not fairly state
the matters to which it relates in accordance with those Schedules; and•the supplementary information disclosed on pages 32 to 34 relating to credit and market risk exposures andcapital adequacy as required by Schedule 9 of the Order is not, in all material respects, disclosed inaccordance with Schedule 9 of the Order.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by
the Independent Auditor of the Entity (‘NZ SRE 2410 (Revised)’). Our responsibilities are further described in the
Auditor’s Responsibilities for the Review of the Interim Financial Statements section of our report.
We are independent of the Branch in accordance with the relevant ethical requirements in New Zealand relating to
the audit of the annual financial statements, and we have fulfilled our other ethical responsibilities in accordancewith these requirements.
Other than in our capacity as auditor, we have no relationship with or interests in MUFG Bank, Ltd. Auckland
Branch, except that partners and employees of our firm deal with MUFG Bank, Ltd. Auckland Branch on normal
terms within the ordinary course of trading activities of the business of MUFG Bank, Ltd. Auckland Branch.
Emphasis of Matter
The Branch is part of MUFG Bank, Ltd. As described in note 25, the assets of the Branch are legally available for thesatisfaction of debts of the entire company, not solely those appearing on the accompanying condensed statementof financial position and its debts may result in claims against assets not appearing thereon. Our conclusion is not
qualified in respect of this matter.
Directors’ responsibilities for the interim financial statements
The directors are responsible on behalf of the Branch for the preparation and fair presentation of the condensed
interim financial statements in accordance with NZ IAS 34 Interim Financial Reporting and IAS 34 Interim Financial
Reporting and for such internal control as the directors determine is necessary to enable the preparation and fairpresentation of the condensed interim financial statements that are free from material misstatement, whether due
to fraud or error.

36

The Directors are also responsible for the preparation and presentation of supplementary information which fairly
states the matters required to be disclosed under Schedules 3, 5, 7, 9, 12 and 14 of the Order.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the condensed interim financial statements and the supplementary
information based on our review. NZ SRE 2410 (Revised) requires us to conclude whether anything has come to ourattention that causes us to believe that:•the condensed interim financial statements (excluding the supplementary information), taken as a whole,are not prepared, in all material respects, in accordance with NZ IAS 34 Interim Financial Reporting and IAS
34 Interim Financial Reporting;•the supplementary information (excluding the supplementary information relating to credit and market risk
exposures and capital adequacy), taken as a whole, does not fairly state the matters to which it relates inaccordance with Schedules 5, 7, 12 and 14; and•the supplementary information relating to credit and market risk exposure and capital adequacy, taken as awhole, is not, in all material respects, disclosed in accordance with Schedule 9 of the Order.
A review of the condensed interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited
assurance engagement. We perform procedures, primarily consisting of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. The
procedures performed in a review are substantially less than those performed in an audit conducted in accordancewith International Standards on Auditing (New Zealand) and consequently do not enable us to obtain assurance
that we might identify in an audit. Accordingly we do not express an audit opinion on the condensed interim
financial statements and the supplementary information.
Restriction on use
This report is made solely to the Branch’s shareholders, as a body. Our review has been undertaken so that wemight state to the Branch’s shareholders those matters we are required to state to them in a review report and forno other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the Branch’s shareholders as a body, for our engagement, for this report, or for the conclusions we haveformed.

Bindi ShahPartnerfor Deloitte Limited
Auckland, New Zealand
25 November 2021

This review report relates to the unaudited disclosure statement of MUFG Bank, Ltd. Auckland Branch for the six
months ended 30 September 2021 included on Branch’s website. The Branch’s Board of Directors are responsible
for the maintenance and integrity of the Branch’s website. We have not been engaged to report on the integrity of
the Branch’s website. We accept no responsibility for any changes that may have occurred to the unaudited
disclosure statement since they were initially presented on the website. The review report refers only to theunaudited disclosure statement named above. It does not provide an opinion on any other information which may
have been hyperlinked to/from these unaudited disclosure statement. If readers of this report are concerned with
the inherent risks arising from electronic data communication they should refer to the published hard copy of theunaudited disclosure statement and related review report dated 25 November 2021 to confirm the information
included in the unaudited disclosure statement presented on this website. Legislation in New Zealand governing
the preparation and dissemination of disclosure statement may differ from legislation in other jurisdictions.

37