Fiscal 2023 Results
Fixed Income Investors
Presentation
June 2024

Mitsubishi UFJ Financial Group, Inc.

Disclaimer
This document contains forward-looking statements in regard to forecasts, targets and plans of Mitsubishi UFJ Financial Group, Inc. (“MUFG”) and its groupcompanies (collectively, the “group”). These forward-looking statements are based on information currently available to the group and are stated here on thebasis of the outlook at the time when this document was produced. In addition, in making these statements, certain assumptions (premises) have been utilized.
These statements and assumptions (premises) are subjective and may prove to be incorrect or may not be realized in the future. Underlying such assumptions
are a large number of risks and uncertainties. Please see other disclosures and public filings made or to be made by MUFG and the other companies comprising
the group, including our latest consolidated summary report, financial report, securities report, quarterly securities report, annual report, and our latest annual
report on Form 20-F and other reports submitted to the U.S. Securities and Exchange Commission, for additional information regarding such risks anduncertainties. The group has no obligation or intent to update any forward-looking statements contained in this document.
In addition, information on companies and other entities outside the group that is included in this document has been obtained from publicly available
information and other sources. The accuracy and appropriateness of that information has not been verified by the group and cannot be guaranteed.
The financial information used in this document was prepared in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”), unlessotherwise stated. Accounting principles generally accepted in the United States (“U.S. GAAP”) differ in certain important respects. You should consult your own
professional advisers for a more complete understanding of the differences between U.S. GAAP and Japanese GAAP and the generally accepted accounting
principles of other jurisdictions and how those differences might affect the financial information contained in this document.
This document may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose, without our priorwritten consent.
The information included in this document is not an offer to sell, or a solicitation of an offer to buy, any securities in the United States, Japan or any otherjurisdiction.
This document is as of June 5, 2024.

Definitions of abbreviations used in this document
the Bank (BK):
the Trust Bank (TB):
the Securities HD (SCHD):NICOS:MUMSS:
MUAH:
KS:
BDI:
FSI:
MUB:

MUFG Bank, Ltd.
Mitsubishi UFJ Trust & Banking Corporation
Mitsubishi UFJ Securities Holdings Co., Ltd.
Mitsubishi UFJ NICOS Co., Ltd.
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
MUFG Americas Holdings Corporation
Bank of Ayudhya Public Company Limited (Krungsri)
PT Bank Danamon Indonesia, Tbk.
First Sentier Investors (Australia) Services Pty Limited
MUFG Union Bank, N.A.

DS:
R&C:
JCIB:
GCIB:
GCB:
AM/IS:
Global Markets:
FSA:

Digital Service Business Group
Retail & Commercial Banking Business Group
Japanese Corporate & Investment Banking Business Group
Global Corporate & Investment Banking Business Group
Global Commercial Banking Business Group
Asset Management & Investor Services Business Group
Global Markets Business Group
Financial Services Agency of Japan

Definitions of figures used in this document
Consolidated:the Bank consolidated:
Non-consolidated:the Bank non-consolidated:

Mitsubishi UFJ Financial Group Inc. (consolidated)
MUFG Bank, Ltd. (consolidated)
Simple sum of MUFG Bank, Ltd. (non-consolidated) and Mitsubishi UFJ Trust & Banking Corporation (non-consolidated)
MUFG Bank, Ltd. (non-consolidated)

2

Contents
Section 1 Overview

4

Section 2 Financial results

8

Section 3 Capital raising strategy

19

Appendix27

3Section 1
Overview

4Overview

Financial results

Capital raising strategy

Group structure
As of End March 2024

Mitsubishi UFJ Financial Group, Inc.
(MUFG)

Strategic
alliance

Morgan Stanley*1

Holding Company

MUFG Bank, Ltd.
(the Bank)

Mitsubishi UFJ
Trust and Banking
Corporation(the Trust Bank)

Mitsubishi UFJ
Securities
Holdings Co., Ltd.
(the Securities HD)

Bank of Ayudhya
Public Company
Limited (KS)First Sentier
Investors(Australia) Services
Pty Limited (FSI)

Mitsubishi UFJ
Morgan Stanley
Securities
Co., Ltd. (MUMSS)PT Bank Danamon
Indonesia, Tbk.
(BDI)

MUFG Investor
Services Holdings
LimitedMorgan Stanley
MUFG
Securities Co.,
Ltd.*1

Mitsubishi UFJ AssetManagement Co., Ltd.*2*1 Morgan Stanley and Morgan Stanley MUFG Securities are equity method investees of MUFG as of end March 2024
*2 All shares of Mitsubishi UFJ Asset Management Co., Ltd. owned by the Trust Bank were transferred to MUFG on April 1, 2024.

Mitsubishi UFJ
NICOS Co., Ltd.
(NICOS)

ACOM Co., Ltd.

5

Overview

Financial results

Capital raising strategy

MUFG at a glance
Financials*1

Consolidated

Consolidated gross profits(before credit costs for trust accounts)￥4,732.5bn / US$31.2bn

2 Profits attributable to owners of parent￥1,490.7bn / US$9.8bn
End March 2024

3 Total assets
4 Loans (banking + trust accounts)
5 Deposits
6 Market capitalization*2
7￥403.7tn / US$2,666.2bn￥118.3tn / US$781.3bn￥224.0tn / US$1,479.4bn￥19.3tn / US$122.5bn

Consolidated LCR*3

161.7%

8 NPL ratio*4

Consolidated

13.5%

FY 2023
1

Capital1.51%

Common Equity Tier 1 Capital Ratio as ofend March 2024 (financial strength)(Finalized Basel Ⅲ

reforms transitional basis)*5

15.0%

Pre-Finalized Basel Ⅲ basis (-End March 23),
Finalized Basel Ⅲ reforms transitional basis (End March 24)

14.0%

Finalized Basel III reforms full implementation basis

12.0%

11.5%

11.0%
10.0%

End
End
End
End
End
End
End
End
End
Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21 Mar 22 Mar 23 Mar 24

Issuer ratings (holding company)(As of end March 2024)*7(As of end May 2024)

431 locations*8

Moody’s

S&P

Fitch

Long-term

A1

A-

A-

Short-term

P-1

-

F1

Global Network:

Approx. 2,000 locations*9
across over 40 countries*1 Exchange rate applied is ¥151.41/US$*2 As of end May 2024. Exchange rate applied is ¥157.74/US$*3 The ratio is the three-month average of daily LCR for the three months ended March 31,
2024, that is calculated by dividing the balance of High-Quality Liquid Assets by theamount of total net cash flows on a daily basis for the same three months*4 The calculation of the NPL ratio has been changed per amendments to the definition ofrisk-monitored loans under the Japanese Banking Act. Please see P.15
*5 Calculated on the basis of the finalized Basel Ⅲ reforms applied with phase-in at the endof March 2024

13.5%

13.0%

Group network
Domestic Network:*6*6 Estimated CET1 ratio reflecting the RWA difference calculated on the basis of the finalized
Basel III reforms expected to be fully applied in March 2029, according to the amended
notification on capital adequacy ratio published by the FSA on April 28, 2022 andNovember 30, 2022
*7 For BDI, as of end December 2023
*8 A facility that houses several branches for retail clients is counted as a single location.
Total of the Bank, the Trust Bank and the Securities HD*9 Including 466 locations of Adira Finance, a subsidiary of BDI
6

Overview

Financial results

Capital raising strategy

MUFG credit highlights
Profit track record

Consolidated

Ample liquidity

Consolidated

Sound asset quality
Previous standard

926.4

989.6

1,130.8
1,116.4
872.6

1.5%

161.7%

777.0
528.1

FY18

FY19

1.17%

0.99%
0.90%

1.14% 1.18%

1.26%

0.5%
0.0%

(End March 2024)
FY17

1.51%

1.45% 1.41%

1.0%

Consolidated Liquidity Coverage Ratio*1
FY16

New standard

2.0%

1,490.7（¥bn）

Consolidated

FY20

FY21

FY22

FY23

Consolidated

End
Mar
17

End
Mar
18

End
Mar
19

End
Mar
20

End
Mar
21

End
Mar
22

End
Mar
23

End
Mar
24

NPL Ratio*2*3

Profits attributable to owners of parent

Sufficient capital

End
Mar
16

Issuance track record*5

Credit ratings

AT1, Tier 2 debt securities *6（¥bn）
Holdco Senior (TLAC)
AT1
Tier2
1,200
997
805
1,000
210
523
800
640
547
405
600
Moody’s / S&P / Fitch
320 290
250 272
787
400
190
457
135
200
400
(End May 2024)
0
212
320
273
150 40
90
155
60
0
*7
TLAC-eligible senior debt
(US$bn)AT1 Security Rating
25
CET1 capital ratio
21.5
USD
EUR
2.3
20
AUD
JPY
12.5
(Finalized Bases III reforms transitional basis*4)
3.3
14.1 11.7
15
8.6
0.9
0.7 0.5
8.8
0.3
1.1
10
(End March 2024)
4.6
1.3
Moody’s / S&P / Fitch
5.0 11.3 15.9
13.2 10.3
1.62.55
7.5
4.5 0.5
2.5
2.5
0.5
0
(End May 2024)
FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24*8
YTD*1 The ratio is the three-month average of daily LCR for the three months ended March 31, 2024, that is calculated by dividing the balance of High-Quality Liquid Assets by the amountof total net cash flows on a daily basis for the same three months *2 Total non-performing loans / Total loans under the Japanese Banking Act (Previous standard: Total riskmonitored loans / Total loans and bills discounted (banking accounts as of period end)) *3 NPL Ratios as of and after the end of March 2021 are calculated as per the amendments tothe definition of risk-monitored loans under the Japanese Banking Act. See Note 1 on P.15 *4 Calculated on the basis of finalized Bases III reforms applied with phase-in at the end of
March 2024 *5 Total of public issuance (excluding the amount of buyback) as of the end of May 2024
*6 All figures are converted into JPY using actual exchange rates as of the end of Mar 2024
*7 All figures are converted into US$ using actual exchange rates as of the end of May 2024 *8 From April 1, 2024 to May 31, 2024

A1 / A- / A-

13.5%

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24
YTD

Baa3 / BB+ / BB+7

Section 2
Financial results

8

Overview

Financial results

Capital raising strategy

Income statement summary
FY22

FY23

4,503.0

1 4,732.5

229.5

2,907.5

2,457.8(449.6)

1,695.4

1,820.6

125.2(99.9)

453.9

553.8

(884.6)(450.7)433.8

6 G&A Expenses

2,908.7

2 2,888.7(19.9)

7 Net operating profits

1,594.2

1,843.7

249.4

8 Total credit costs(674.8)3 (497.9)

176.9

9 Net gains (losses) on equity securities

288.0

371.2

83.2

10

303.9

381.4

77.5

(15.9)(10.1)

5.7

*2

105.9

YoY

Consolidated (¥bn)

Gross profits

1 (Before credit costs for trust accounts)
2
3
4
5

Net interest income
Trust fees ＋
Net fees and commissions
Net trading profits ＋
Net other operating profits

Net gains (losses) on debt securities

Net gains (losses) on sales of equity
securities

Losses on write-down of equity securities
Equity in earnings of equity method
12 investees
13 Other non-recurring gains (losses)

425.8

531.8

(612.5)4 (120.9)

491.5

14 Ordinary profits

1,020.7

2,127.9

1,107.2(77.8)(627.0)11

15 Net extraordinary gains (losses)

549.1

5

Total of income taxes-current and
16 income taxes-deferred(369.6)(478.3)(108.7)17 Profits attributable to owners of parent

1,116.4

6 1,490.7

374.2

90.73

124.65

33.92

7.0%

8.5%

1.5ppt18

EPS (¥)<Reference>

19 ROE (MUFG basis)
20 ROE (JPX basis)

6.5%

21 Expense ratio

64.5%

*3

2

8.1%

1.6ppt61.0%(3.5ppt)*3

Afteradjustment
of MUB*1

ー 1 Gross profits• Net interest income was down due to the absence of gains onーinvestment trusts cancellation of ¥555.7bn included in FY22 andー
the impact of the sale of MUB, while foreign interest income ofloans and deposits increasedー• Net fees and commissions were up, largely driven by increases infees related to foreign loans, AM/IS business, wealthーmanagement business, and various other businessesー• Net trading profits and Net other operating profits were up mainly
due to the absence of net losses on debt securities of ¥(884.6)bnーincluded in FY22 through rebalancing our bond portfolio(217.0)
2 G&A expenses / Expense ratioー• Down by ¥(19.9)bn YoY, due to the impact of the sale of MUB
ー• Expense ratio improved to 61.0%, along with an increase in grossprofitsー
Total credit costs
ー 3• Decreased by ¥176.9bn YoY, due to the absence of valuation
150.4
losses on loans held by MUB, partially offset by an increase inallowance for credit losses and the absence of the reversal of
372.1
allowance included in FY22
108.0
4 Other non-recurring gains (losses)ー• Up by ¥491.5bn YoY, due to the absence of valuation losses onbonds held by MUB included in FY22ーー 5 Net extraordinary gains (losses)• Down by ¥627.0bn YoY, due to the absence of gains on the saleof MUB included in FY22－
6 Profits attributable to owners of parent－• Up by ¥374.2bn YoY, marking the highest profits in MUFG history－*1 Adjusted to reflect the impact of partial reversal (recorded as extraordinary gains in FY22) of valuation losses on assets held by MUB, etc., which losses totaled ¥893.7bn (after tax) in FY22, on each of thefollowing line-items. Total credit costs：¥393.9bn, Other non-recurring gains (losses) : ¥341.0bn, Ordinary profits：¥735.0bn, Net extraordinary gains (losses) : (¥735.0bn)*2 Reflects equity in earnings of Morgan Stanley ("MS") for the 15 months ended March 31, 2024, including ¥84.1bn for the quarter ended March 31, 2023, as a result of the change of the closing date in theequity method of accounting for MS*3 MUFG basis : approx. 8.1%, JPX(Japan Exchange Group) basis : approx. 7.6%, respectively excluding the ¥84.1bn impact relating to MS described in Note *2 above. For the method of calculation of ROE(MUFG basis), see below
Profits attributable to owners of parent
×100{(Total shareholders' equity at the beginning of the period + Foreign currency translation adjustments at the beginning of the period)+ (Total shareholders' equity at the end of the period + Foreign currency translation adjustments at the end of the period)} / 2

9Overview

Financial results

Capital raising strategy

Net operating profits results by business group
Net operating profits by business group*1(¥bn)

Consolidated

Changes by business group(¥bn)

FY23 ¥1,842.9bn*2

AM/IS
JCIB GCB*3 +19.9+199.7 +11.9

Global Markets
23.4*4
(1%)

501.7
(24%)

AM/IS

DS
DS
+25.3

245.9
(12%)

GCIB

125.0
(6%)
302.1*3(14%)
GCB

Consolidated

GCIB+123.8R&C+89.8

1,577.6

245.4
(11%)

R&C

1,842.9
Global *4
Markets
Others(111.7)(93.3)

Total of customer segments+470.3

669.8
(32%)
JCIB

FY22

*1 On a managerial accounting basis *2 Include net operating profits for “Others” segment (FY22:¥(177.2)bn, FY23:¥(270.5)bn)*3 Include the impact of the sale of MUB: Approx. ¥(66)bn*4 Include the impact of improvement in the book value of the bond portfolio: Approx. ¥(200)bn

FY23

10

Overview

Financial results

Capital raising strategy

Outline of profits attributable to owners of parent
Profits attributable to owners of parent(¥bn)

Consolidated

1,490.7

Breakdown by entity*1
(¥bn)

the
Bank
804.2

872.6
777.0

MS*2

401.2

1,130.8 1,116.4
989.6

Consolidated

thethe Securities
Trust
HD
Bank 48.7
ACOM
NICOS
57.8
21.0
2.7

KS
96.3

BDI
28.1

Others*3 MUFG
5.5 Consolidated
1,490.7

FSI
24.8

528.1

FY17

FY18

FY19

FY20

FY21

FY22

FY23

*1 The figures reflect the percentage holding in each subsidiary and equity method investee*2 Include the impact amount of ¥84.1bn associated with the change of the closing date in the equity method of accounting for MS. See Note 2 on P.9*3 Include consolidation adjustments for special dividend paid by domestic subsidiaries of the Bank of approx. ¥(80)bn

11

Overview

Financial results

Capital raising strategy

Balance sheet summary
Balance sheet summary

Consolidated

As of end Mar 2024

AssetsLiabilities¥403.7tn¥382.9tn

Loans (period end balance) *1(¥tn)¥118.3tn

Investment
Securities

Deposits¥224.0tn(Banking accounts)¥86.8tn

Overseas*4: +5.6 from end Mar 23(+0.8 excluding impact of FX fluctuation）
110.4
2.5

39.3

43.0

41.2

46.8

2.5

2.1

1.7

2.6

48.4

48.9

50.2

52.1

14.9

15.0

End
Mar 21

EndMar 22

14.6
EndMar 23

14.2
EndMar 24

Deposits (period end balance)
(¥tn)

46.9

¥20.7tn

Consumerfinance / others
Overseas*4
Government
Domestic
Corporate*2,3
Housing Loan*2

Consolidated

Overseas and others: +7.1 from end Mar 23(+1.8 excluding impact of FX fluctuation）

211.5

Net Assets

118.3
2.4

111.5
2.2

107.5
2.2

Loans

(Banking + Trust accounts)

Consolidated

215.4
47.1

213.6

224.0

40.6

47.7

Overseas andothersDomestic
corporate etc.*5
Domestic
individual*5

79.7

80.0

82.1

83.5

84.8

88.2

90.8

92.7

End
Mar 21

EndMar 22

EndMar 23

End
Mar 24*1 Sum of banking and trust accounts *2 Non-consolidated + trust accounts*3 Excluding loans to government and governmental institutions and including foreign currency denominated loans
MUAH, KS, BDI, the Bank (China), the Bank (Malaysia) and the Bank (Europe)*5 Non-consolidated*4 Loans booked in overseas branches,

12

Overview

Financial results

Capital raising strategy

Domestic loans
Loan balance (period end balance)*1(¥tn)

Consolidated

Deposit / lending rate*5*6
1.0%+2.4 from end Mar 23

Lending rate

65.9
2.5

24.4

66.1
2.1

24.2

66.6
1.7

25.2

Government

Deposit / lending spread

0.81%

0.8%

0.81%

0.7%

26.1

Large
corporate*2,3

0.79%

0.80%

0.79%

0.80%

23.9

24.7

24.9

26.0

0.0%

FY21
Q4

0.8%

15.0

14.6

14.2

End Mar 21

End Mar 22

End Mar 23

End Mar 24

0.81%

0.004% 0.003% 0.004% 0.004%

0.00%

FY22
Q4

FY23
Q4

0.58%
0.55%

*7

*6

0.56%

0.5%
0.4%

Non-Consolidated

0.66%

0.6%

14.9

0.89%

Large Corporate
Medium-sized Corporate and SME *7

0.7%

Housing loan*2

0.81%

0.6%

Corporate lending spread*4*5*6
SME*2,3,4

Deposit rate
0.89%

0.9%

69.1
2.6

Non-Consolidated

FY21
Q4

列6

22年度
2Q

0.56%

FY22
Q4

*1 Sum of banking and trust accounts *2 Non-consolidated + trust accounts *3 Including non-JPY loans *4 Domestic loans to small / medium-sizedcompanies and proprietors (“SME”) (excluding domestic consumer loans) *5 On a managerial accounting basis*6 Excluding impact of the collective recording of interest received at fiscal year-end via COVID-19 government subsidized interest payment programs*7 Calculation method modified from FY23Q4 and retroactively applied in this document

0.60%

0.59%

23年度
2Q

0.64%

0.65%
0.66%

0.58%

*6

0.59%

F23
Q4

13

Overview

Financial results

Capital raising strategy

Overseas loans
Loan balance (period end balance)*1(¥tn)

MUAH*2

Consolidated+5.6 from end Mar 23(+0.8 excluding impact of FX fluctuation)
43.0
0.0
0.9
4.9

39.3
0.0
0.8
4.6

41.2
0.0
1.0
5.6

9.1

8.3

6.7

6.8

7.3

8.8

End Mar 21

End Mar 22

2.0%

End Mar 23

End Mar 24

Lending spread*4

Non-Consolidated

1.45%

1.24%

1.25%

1.25%

1.33%

1.39% 1.39%

5.79%

6.12%

6.31%

6.20%

4.32%

4.44%

4.52%

1.80%

1.87%

1.68%

5.07%
3.49%

3.96%

1.0%
0.0%

1.58%

1.83%

FY21

FY22

FY23

Q4

Q4

Q4

Net interest margin
8.0%
10.0%

KS *5

KS / BDI

BDI*6
8.2%

6.0%
8.0%

3.56%

4.0%

8.4%

8.1%

3.55%

3.64%

8.1%
4.05%

8.0%
4.50%

2.0%

1.05%
0.85%

Non-Consolidated

3.0%

Americas

16.2

13.8

5.0%

Asia /
Oceania

8.3

7.6

6.0%
4.0%

EMEA

Lending rate
Deposit / lending spread
Deposit rate

7.0%

Others*3
BDI
KS

14.5

12.8

12.3

11.2

46.8
0.0
1.4
6.3

Deposit / lending rate*4

0.0%
FY21

22

FY22

22

FY22

FY23

FY24

Q4

1Q

Q2

1Q

Q4

Q2

Q4

FY21

FY22

FY23

Q4

Q4

Q4

*1 Loans booked in overseas branches, MUAH, KS, BDI, the Bank (China), the Bank (Malaysia), and the Bank (Europe)*2 “MUAH” is included in “Americas” from End Mar 23. Approx. ¥2.7tn loans were transferred from MUAH to overseas offices of the Bank upon the sale of MUB*3 Loans booked at offshore markets etc. *4 Managerial accounting basis*5 Financial results as disclosed in KS’s financial reports based on Thai GAAP
*6 Financial results as disclosed in BDI’s financial reports based on Indonesia GAAP

14

Overview

Financial results

Capital raising strategy

Loan assets
Non-performing loans*1(¥bn)

Total credit costs*3 / Credit cost ratio*4

Consolidated(¥bn)

New standard

Risk-monitored loans（previous standard）

Total credit costs*3

Consolidated

Credit cost ratio*4

NPL ratio*2
1.45% 1.41%

1.25%
1.17%
0.99%
1.14%
0.90%

1.51%

1.18% 1.26%

2,007.5

Reversal ofcredit costs
Increase incredit costs

1,655.8
1,539.2
1,341.0
1,271.7

1,471.8
1,363.9

1,563.4(155.3)(161.6)(255.1)0.15%

1,089.8
967.0

0.22%

(46.1)(5.8)(497.9)

0.04%

0.01%

(222.9)(331.4)

0.14%

0.20%
0.30%

0.43%

0.48%
(515.5)0.62%(674.8)*9

End

End

End

End

End

End

End

End

End

End

Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21

Mar 21 Mar 22 Mar 23 Mar 24

133.9

134.7

138.7

124.0

155.2

171.5

［Breakdown］
EMEA

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

(71.1)(103.7)(47.9)

79.5

129.8

12.6

(223.2)(233.8)(98.8)(44.1)(51.6)(64.5)(83.6)(81.7)(87.6)(64.4)(66.0)(76.5)

FY23［Breakdown］
116.0

71.3

64.0

63.7

Nonconsolidated*5

Americas

199.4

216.0

157.5

148.2

145.5

224.7

226.7

178.1

102.1

601.5

Asia

145.3

142.3

155.8

170.3

259.1

300.5

305.8

302.9

370.2

420.7

Overseas

Domestic 1,177.1 1,064.7 887.0

584.3

621.3

680.9

692.5

866.6

935.8

813.7

Others*8*1 Due to amendments to the Japanese Banking Act, the scope of risk-monitored loans disclosed under theJapanese Banking Act was changed and became the same as the scope of non-performing loans disclosed
under the Japanese Financial Reconstruction Act (FRA). Under the previous standard, these loans were "riskmonitored loans," but they are now "non-performing loans." Regions are based on the borrowers' location.
*2 Total non-performing loans / Total loans under the Japanese Banking Act (Previous standard: Total riskmonitored loans / Total loans and bills discounted (banking accounts as of period end))*3 Includes gains from recovery of loans written off*4 Total credit costs / loan balance as of end of each fiscal year
*5 Includes overseas branches

CF

*6
*7

(63.2)(100.8)(45.0)(42.7)(52.3)(141.6)(232.3)(28.9)(508.3)

16.9

1.0

2.1

0.8

(1.5)

(6.2)

4.5

(2.6)

8.9

(250.4)(96.5)*9(151.2)
0.3*6 Sum of NICOS and ACOM on a consolidated basis*7 Sum of overseas subsidiaries of the Bank and the Trust Bank. It is currently estimated that the total
credit costs of the major overseas subsidiaries (which were consolidated based on their financial
statements for the fiscal year ended December 31, 2023) for the quarter ended March 31, 2024 will
be approx. ¥50bn. This amount will be reflected in consolidated financial statements for the quarter
ending June 30, 2024
*8 Sum of other subsidiaries and consolidation adjustment*9 Including ¥(393.9)bn of valuation losses on loans sold inconnection with MUB’s share transfer etc.

15

Overview

Financial results

Capital raising strategy

Investment securities
Investment securities
Balance

Unrealized gains (losses)

Changes fromEnd Mar 24
End Mar 23(¥bn)

Changes fromEnd Mar 23

End Mar 24

1 Held-to-maturity securities

24,843.9

3,323.8

2 Available-for-sale (AFS) Securities

61,736.3(3,384.7)

2,725.8

1,305.6

5,101.6

829.7

3,758.8

1,038.1

25,074.6(4,677.2)(129.9)(9.9)

21,365.2(2,153.5)(70.7)

15.5

709.5

301.1

12.7

78.3

20,990.4(719.6)(997.3)118.9

9,859.9

881.2

81.4

80.1

3

Domestic equity securities

4

Domestic bonds

5Japanese government bonds

6

Foreign equity securities

7

Foreign bonds

8

OthersBalance of JGB portfolio*3 and duration
Over 10 years
1 year to 5 years
Average duration (year) *4

(¥tn)
2.9

2.5

4.0

3.5
6.0

37.0

*1

3.35

Unrealized gains (losses)
on foreign bonds
reflecting hedging
positions etc*2 (¥tn) :End
Mar 21

4.0
11.0

2.5

35.9

4.2
8.7

30

0.6

20

10

22.8

21.0

20.8

22.3

End
Mar 22

EndMar 23

End
Mar 24

1.7

13.5

14.6

0

End
Mar 21
Held-to-maturity
securities (¥tn)：*1 Approx. ¥0.2tn excluding FX impact*2 Managerial accounting basis. Approximate amount

1.42
3.75

2.72

(0.85)(1.11)(0.99)

Approx.
(0.4)

Approx.
(0.7)

Approx.
(0.5)

End
Mar 22

EndMar 23

End
Mar 24

5.8

18.5

18.4

6.5

7.5

4.4
5.5
1.9
End
Mar 21
Held-to-maturity
securities (¥tn)：

2.72

2.91

Over 10 years
1 year to 5 years
Average duration (year) *4

5.2

Consolidated

Domestic bonds
OthersBalance of foreign bonds*3 and duration
(¥tn)

1.0

1.1

2.39

ー

Non-consolidated

1.5

Domestic equity securities
Foreign bonds

3.74

40

33.1

3.8

ー

(¥tn)

5 years to 10 years
Within 1 year

2.8

33.4

Unrealized gains (losses) on available-for-sale securities

Consolidated

Non-consolidated

5 years to 10 years
Within 1 year

5.1

5.0

24.9

25.2

9.5

10.8

4.9

4.6

7.2

5.6
3.2
1.9
End
Mar 22

3.1

6.7
2.9

End
Mar 23

End
Mar 24

2.0

5.9

7.1

*3 Available-for-sale securities and held-to-maturity securities*4 Available-for-sale securities

16

Overview

Financial results

Capital raising strategy

Capital
CET1 / Total capital ratio

Consolidated

Capital summary

Pre-Finalized Basel Ⅲ basis*1 (-End March 2023)
Finalized Basel Ⅲ reform transitional basis*1 (End March 2024)

CET1 Ratio
16.5

16.0

15.8

(¥bn)

Excluding impact of net unrealized gains(losses) on available for sale securities

AT1 / Tier2 Ratio

17.8

16.3
14.2

13.9

Finalized
Basel Ⅲ reform
transitional basis*1

13.5

Finalized
Basel Ⅲ
reforms full
implementationbasis*2

11.5

12.5

12.2

11.9

12.3

13.5
11.0

10.7

11.8

10.1

5.01%

4.94%

End
Mar 20End
Mar 21

EndMar 22

EndMar 23

End
Mar 24

End
Mar 24

End
Mar 24

5.45%*4

5.14%*4

4.70%*4

5.19%*4*1 Calculated on the basis of regulations applicable to the respective dates shown*2 Estimated CET1 ratio reflecting the RWA difference calculated on the basis of the finalized
Basel III reforms expected to be fully applied in March 2029, according to the amended
notification on capital adequacy ratio published by the FSA on April 28, 2022 andNovember 30, 2022
*3 Adjustments made for the difference between risk–weighted assets under Basel I andBasel III
*4 Based on FSA notification, deposits with the Bank of Japan are excluded from total
exposuresEnd
Mar 24

Changes

13.53%

2.77%pt

2 Tier 1 capital ratio

12.04%

15.72%

3.68%pt

3 Total capital ratio

13.91%

17.82%

3.91%pt

4 Leverage ratio

4.70%

5.19%

0.49%pt

13,280.8

15,041.3

1,760.4

5

Common Equity Tier 1 capital

6

Retained earnings

12,739.2

13,791.6

1,052.4

7

Other comprehensive income

2,481.9

4,185.0

1,703.1

8Regulatory adjustments(4,003.0)(4,577.3)(574.3)9Additional Tier 1 capital

1,582.8

2,438.4

855.5

10Preferred securities andsubordinated debt

1,464.0

2,268.5

804.5

11 Tier 1 capital

14,863.7

17,479.7

2,616.0

12 Tier 2 capital

2,302.3

2,338.1

35.7

Subordinated debt

1,754.0

1,739.8(14.2)

14 Total capital (Tier 1+Tier 2)

17,166.1

19,817.8

2,651.7

123,363.3

111,160.1(12,203.2)

15 Risk weighted assets
4.42%

End
Mar 2310.76%

1

13
End
End
Mar 18 Mar 19
Leverage
Ratio

Common Equity Tier 1
capital ratio

Consolidated

16

Credit risk

87,666.4

99,505.6

11,839.1

17

Market risk

6,682.9

2,513.1(4,169.8)

18

Operational risk

8,474.3

9,141.3

667.0

19

Floor adjustment

20 Total exposures*4

20,539.5*3316,034.5

0.0 (20,539.5)
336,425.6

20,391.1

17

Overview

Financial results

Capital raising strategy

Rating matrix of global financial institutions
As of May 31, 2024

Holdco senior (TLAC)*1

Opco senior*1

Moody’s
Aaa
Aa1
Aa2
Aa3
A1
A2
A3
Baa1
Baa2
Baa3
Ba1
Ba2

Tier2

AT1*1

Issue by Holdco

Issue by Opco (Single issuing entity)

Country Rating of each financial institutions’ home country

*2

S&P

AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+
BB
BB-

Fitch

AAA
AA+
AA
AAA+
A
ABBB+
BBB
BBBBB+Japan

US

Europe*1 Holdco senior includes Senior non-preferred, and Opco senior includes Senior preferred by banks (e.g. BNP and DB), who have a single issuing entity. AT1
includes Preferred Stock by US banks *2 Indicates Moody’s MTN program tier 2 rating for MUFG

18

Section 3
Capital raising strategy

19

Overview

Financial results

Capital raising strategy

Capital and TLAC requirements– The best capital mix and required ratios– Aiming for optimal balance between capital efficiency and capital adequacy in qualitative and quantitative aspects• Seeking to secure necessary and sufficient level of capital ratio with utilization of AT1 / Tier2• Seeking to maintain sustainable external TLAC ratio for the long term by raising external TLAC eligible senior debt

MUFG’s capital ratio and external TLAC ratio*1

MUFG’s leverage ratio

Minimum requirement

Minimum requirement

As of end Mar 2024
7.89%

April 2024*5

3.50%
Other TLAC
Eligible Debt*2

External
TLAC
ratio
18%

Tier1 ratio：10.16%
CET1 ratio：8.66%DIFR*3:
3.5%

External
TLAC
ratio
25.06%

2.10%
2.19%

Tier2

Leverage
ratio
3.75%
Tier1 ratio：15.72%

Regulatory
CapitalBuffers*4（4.16%）

9.37%

Total
capitalratio
17.82%

4.16%

As of end Mar 24

Minimum
requirement

Risk weighted asset basis

25.06%

18.0%

Total exposure basis

9.65%

6.75%*8

AT1
0.72%

CET1
4.47%

4.9%

Total
capitalratio
12.16%

Leverage
ratio
5.19%

Leveragebuffer(0.80%)

CET1 ratio：13.53%

AT1
CET1
minimum
requirement（4.5%）

Leveragebuffer
(0.75%)

Leverage
ratio
3.95%

As of end Mar 2024

Minimum
requirement（3.00%）

1.24%

*6
0.97%

Average buffer ofU.S. GSIBs above
required SLR*7 plus
required minimum
leverage ratio

Minimum
requirement（3.15%）*1 Finalized Basel Ⅲ reforms transitional basis*2 Including adjustment of difference between calculation method of total capital ratio and external TLAC ratio and adjustment ofamount of other TLAC-eligible liabilities owned by the issuer’s group, etc.
*3 Contribution of Deposit Insurance Fund Reserves : Japanese Deposit Insurance Fund Reserves fulfill the requirements for exante commitments to recapitalize a G-SIB in resolution set out in the FSB’s TLAC termsheet（Can include 3.5% of RWAs after end
Mar 2022, in external TLAC ratio）*4 CET1 Buffer applicable to MUFG: G-SIB Surcharge:1.5%, Capital Conservation Buffer:2.5%, and Counter-cyclical Buffer:0.16%*5 Starting from April 2024, the minimum requirement was changed to 3.15%, the leverage buffer for Japanese GSIBs to 0.80%
and the minimum leverage ratio to 3.95%*6 Calculated based on the data from JPMorgan 1Q24 Earnings Presentation, Bank of America
Q1 2024 Earnings Release, and Citi Q1 2024 Financial Supplement*7 Supplementary Leverage Ratio (SLR) represents end-of-period Tier 1 Capital to Total Leverage Exposure. Advanced
Approaches banking organizations are required to maintain a stated minimum SLR of 3.0%.
Further, U.S. GSIBs are subject to a 2.0% leverage buffer in addition to the 3.0% statedminimum SLR requirement, resulting in a 5.0% SLR*8 7.1% on and after April 2024

20

Overview

Financial results

Capital raising strategy

MUFG issuance track record and redemption schedule• In FY2023, maintained stable capital ratios and external TLAC ratio by capital raising, mainly JPY-denominated AT1-eligible bonds• Issued USD-denominated AT1-eligible bond in October 2023 (US$750mm), which was the first USD-denominated AT1-eligible bondissuance by Japanese issuer and contributed to diversifying our capital raising sources

AT1 bond*1

JPY(¥bn equi)

USD

Issuance track record*2

1,000

Earliest possible redemption schedule*3
787

800
600
400

450

400

623

114
320

200

155

273
60

0

40

673

90

0

157

173

247

236

300

114
200

509

253
40

37

40

209

Tier2 bond
(¥bn)
800
600
400

345

405

457

320
135

200

250

212

210

150

(US$bn equi)
25

(1.0)

15
5
0

EUR

AUD

5.0

8.6

362
96

21.5

14.1
12.5
11.7
0.9
0.7
0.3
8.8
0.5
1.1 5.0
1.3
15.9
13.2 10.3
0.511.3
7.5
4.5

167
0

73

88

The amount of buyback

JPY

20.3

2.3
3.3

20
10

(1.6)

USD

298

0

0

TLAC-eligible senior debt*4311

1.8 0.3
4.4
4.6
1.6 0.5
2.5

13.9

2.5

FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24

*5

5.9
5.4

7.5
0.5

6.7

0.3
0.5

7.1
6.6

0.5 3.3

4.9
4.4

0.5 1.8

3.7

5.4

0.8 1.0
0.2
0.5
4.2 0.4
1.3 3.5

FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33

*1 All figures are converted into JPY using actual exchange rates as of end Mar 2024
YTD
*2 Total of public issuance (excluding the amount of buyback), as of end May 2024
*3 Annual figures assuming that all callable notes are to be redeemed on their respective first callable dates. Tier2 contains Basel II Tier2 sub notes issued by the Bankand the Trust Bank (including their respective overseas special purpose companies)*4 All figures are converted into US$ using actual exchange rates as of end Mar 2024
*5 From April 1, 2024 to May 31, 2024

21

Overview

Financial results

Capital raising strategy

MUFG AT1 / Tier 2 debt issuance summary• Track record of AT1 / Tier2 debt issuance every year
AT1 by term*1*2(¥bn equi)

JPY Perp NC 5

USD Perp NC 5

JPY Perp NC 10

Outstanding

Issuance

1,200

2,400

900
600

787
272

450

400
150

300
0

250
FY15

FY16

320
150

155

FY18

FY19

1,800
1,200

114

116
157

60

170
FY17

95

273

60
FY20

37
23

40
FY21

90
FY22

40
50

401
FY23

2,096

600

1,351

114
631

0

End Mar 24

Tier2 by term*1(¥bn)

10 years

Outstanding

15 yearsIssuance

1,000

2,000
1,600

750
500
250
0

345

405
15

250
135

330
FY15

FY16

1,200

457
320

FY17

FY18

FY19

*1 Total of public issuance as of end Mar 2024
*2 All figures are converted into JPY using actual exchange rates as of end Mar 2024

212

FY20

210

150

FY21

1,682
15

800

1,667

400
FY22

FY23

0

End Mar 24

22

Overview

Financial results

Capital raising strategy

MUFG TLAC-eligible senior debt issuance summary
By currency*1*2
USD(US$bn equi)

AUD

EUR

JPY
Outstanding

Issuance

40

80

30
20
10
0

Averageissuance
amount(FY15-23)
：10bn

5
100%

FY15
By term*1*2*3

60

22
14
9

9

100%

85%

FY16

FY17

(US$bn equi)

3 years

15%

6%

94%

5 years

9%

5

88%

FY18

4 years

12

3%
11%

89%

FY19

7 years

13

FY20

10 years

20 years

2NC1

11%

5%
4%

34%
12%

15%

90%

74%

FY21

FY22

3NC2

4NC3

69

5

6NC5

8NC7

40

54%

100% 20
3
FY24 YTD *4

FY23

7%
10%

0

82%

End Mar 24

11NC10

Outstanding
40

80

Issuance

60

30
20
10
0

5

FY15

50%
50%

9

29%
6%

9

17%
19%

14

65%

44%

13%
30%
12

25%

65%
FY16

7%
24%

29%
25%

38%
19%

22

5

34%
12%

13
30%
44%

21%
22%
41%

26%
FY17

FY18

FY19

*1 Total of public issuance (excluding the amount of buyback) as of end May 2023
*2 All figures are converted into US$ using actual exchange rates as of end May 2023

FY20

FY21

FY22

2%
5%
5%
4%

5

FY23

69
16%
17%

22%
12%
15%
17%
34%

40

3

64%
36% 20

FY24 YTD*3 Re-opening bonds are included in the original bonds’ terms*4 From April 1, 2024 to May 31, 2024

*4

0

14%
23%
9%

2%
9%
4%
4%
2%
1%

End Mar 24

23

Overview

Financial results

Capital raising strategy

Comparison of loss absorption mechanism of AT1
capital securities
Japan

USA

UK

EU

Switzerland

Capital injection prior to PONV

✓

-

-

-

-

Loss absorption
trigger

5.125%

-

*2

7%*3

5.125%*5

High: 7%
Low: 5.125%

Loss absorption
mechanism

Write-down
or conversion-*2

Conversion

Write-down orconversion

Write-down orconversion

Write-upprovisions

✓

-

✓

-

Loss absorption
mechanism

Contractual
write-down orconversion

Statutory
write-down orconversion

Statutory
write-down orconversion

Contractual
write-down orconversion

✓

✓

-

✓

*1

Going
Concern

Gone
Concern

Dividend Stopper

*2

-

*4

*4

Statutory
write-down orconversion-*6*1 Measures to be taken depend on each case
*2 As AT1 securities in USA are generally preferred securities, they typically do not have trigger, loss absorption mechanism or write-up provisions applicable to debt securities*3 Some institutions have defined the 7% trigger as a contractual base to include AT1 capital in their leverage ratio calculations*4 The loss absorption mechanism of most of the AT1 securities in the UK is equity conversion, hence such securities do not have write-up provisions*5 7% or 8% in some jurisdictions in the EU*6 Some jurisdictions in the EU have write-up provisions

24

Overview

Financial results

Capital raising strategy

Illustrative summary of multiple treatments prior to
PONV*1• In addition to the existence of “Principal Recovery Rider” to Japanese AT1, there are multiple measures that cancontribute to ensure the remoteness to PONV. *1 Capital injection can occur prior to PONV (See P.31 for details)

Treatment at each trigger point and effects on AT1 debt securities and capital securities
CET1:13.5%*2

8.66%*2
Ccy
Buffer
（0.16%）

Surplus CET1
（4.9%）•

5.125% 4.5%
G-SIB Surcharge（1.5%）

Capital Conservation
Buffer
（2.5%）

CET1 Minimum Standard（4.5%）

Point① CET1 (incl. Regulatory Capital Buffers*2)<8.66%
Capital Distribution Constraints•

Point②CET1<5.125%*3
Loss-Absorption Trigger•

Effects on AT1 debt securities
and capital securities

Trigger points
not directly
related to CET1
ratios

AT1
Tier2
TLAC

PONV*1

Point③CET1<4.5%
Prompt Corrective Action•

Specified Item 1 Measures*4
Special Supervision•

Specified Item 2 Measures (PONV)*4
Special Supervision•

Provision of Financial Liquidity•

Special Control (Specified Merger, etc.)•

Possible Capital Injection•

MUFG’s Recovery Plan•

Early Warning System

Suspension of optional
interest payment orredemption• Specified Financial Assistance
Other Measures

Exempt fromprincipal payment
for required
amount*3 ofLoss-Absorption

Japanese AT1 has a “Principal
Recovery Rider,” that allows theprincipal to be recovered if theissuer obtains prior confirmationfrom the FSA that a sufficiently highlevel of CET1 can be maintained

Exempt from principal payment(unrecoverable) for entire
amountExempt from principal payment(unrecoverable) for entire
amountAfter PONV, AT1 and Tier 2
should contribute first as abuffer and then TLAC loss
absorption

May exempt fromprincipal payment
in the insolvency
proceedings*1 The illustrative cases only where PONV occurs when CET1 falls below 4.5%. However, the circumstances that could trigger PONV is uncertain, and PONV may be triggered even where CET1 is above 5.125% andwithout triggering AT1 going concern write-down *2 As of March 31, 2024 *3 Required amount for CET1 to increase to a sufficient level exceeding 5.125%, which is determined through consultation with the FSA*4 Implementation of Specified Item 1 and 2 Measures will depend on economic conditions and the financial institution’s soundness. Also, Specified Item 1 Measures may not necessarily be applied before Specified Item 2 Measures

25

Overview

Financial results

Capital raising strategy

Corporate structure and issuing entities
EntityStraightforward balance
sheet with the Bank andthe Trust Bank as the
directly-held operating
subsidiaries

Mitsubishi UFJ Financial Group, Inc.
A1 / A- / A-*1
AT1 Security Rating
Baa3 / BB+ / BB+

Status of Securities and offering method
Senior (TLAC), Additional Tier1, Tier2•

SEC-Registered (benchmark)•Reg S EMTN programme(benchmark and private placement)•

Japanese domestic issuance (JPY)100% ownership

The Bank holds othersubsidiaries of the group
Global banking branches

MUFG Bank, Ltd.
A1 / A / A*1
Global banking branches

Mitsubishi UFJ Trust andBanking Corporation
A1 / A / A*1*1 Issuer credit ratings assigned by Moody’s, S&P and Fitch, respectively, as of end May 2024

Senior•Reg S EMTN programme (private placement)•

Formosa (Taiwan)

Senior•Certificates of deposit•

Local currency of relevant branch (AUD, NZD etc.)

Senior•Certificates of deposit

26

Appendix

27

Japanese TLAC framework summary
TLAC minimum requirement*1

18%
TLAC Min.

TLAC Total Exposure
based Requirement

TLAC RWA based
Requirement• Contribution of Deposit Insurance Fund Reserves*2• Multiple treatments prior to loss absorption point, even after Pointof Non-Viability (“PONV”)*5• Multiple precedents of prompt corrective action and preemptive
capital infusion*5

*2

TLAC

Japanese resolution system’s features

3.5%

*2

6.75%
Total
Exposurebasis*3

7.1%
Total
Exposurebasis*3• The Holding Company is a resolution entity in Japan (“Domestic
Resolution Entity”) designated by the FSA• External TLAC-eligible debt is issued by the Holding Company as
the Domestic Resolution Entity

Enhanced requirements for leverage ratio and
TLAC ratio

4.5%
Regulatory*4
CapitalBuffers

Requirements for external TLAC-Eligible Debt
(excerpt)

As of March 2024
From April 2024
(for Japanese G-SIBs) (for Japanese G-SIBs)

As of March 2024
(for Japanese G-SIBs)
Regulatory Capital Buffers
AT1
Contribution of Deposit Insurance Fund Reserves

CET1
T2
Other TLAC Eligible Debt

• From April 2024, the total minimum leverage ratio is increased from
3.75% to 3.95% (minimum leverage ratio increase: 3% to 3.15%;
G-SIB buffer increase: 0.75% to 0.8%). The TLAC total exposurebasis requirement is also increased from 6.75% to 7.1%
• Deposits with the Bank of Japan remain excluded from thecalculation of the leverage ratio and the TLAC ratio on a total
exposure basis from April 2024

*1 Finalized Basel Ⅲ reform transitional basis*2 Japanese Deposit Insurance Fund Reserves fulfill the requirements for ex-ante commitments to recapitalize a G-SIB in resolution set out in the FSB’s TLAC
termsheet*3 Based on FSA notification, deposits with the Bank of Japan are excluded from total exposures.
*4 CET1 Buffer applicable to MUFG: G-SIB Surcharge:1.5%, Capital Conservation Buffer:2.5%, Counter-cyclical Buffer: ranging from 0% to 2.5% to be calculated
as the weighted average of the buffers deployed across all the jurisdictions to which MUFG has credit exposures is imposed*5 Prior precedents (especially those prior to 2014 amendments to the Japanese Deposit Insurance Act) are not indicative of measures to be taken in a given
case, and ordinary resolution measures may be applied without implementing any prompt corrective action or preemptive capital infusion or other measures28

Summary of Basel Capital Accord and Implementationin Japan
Capital adequacy ratio2010 Basel III rules text
2011 Basel III rules text
amended20122013 Liquidity coverage
ratio full text
2014 Net stable funding
ratio full text
2015 TLAC related reports*3
2016 IRRBB, TLAC holdings
reports
2017 Basel III standards
finalized
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
Transitional Period

Tier1+
Tier2
8%(Same asbefore）

Tier1
4%

CET1 IRRBB*1(2)% Ratio tocapital
20%

4.5%

3.5%

5.5%

4%

6.0%

4.5%

Capital
Floor

Ratio to
Tier1
15%

1

1

Capital Buffer*2
CapitalConservation
G-SIBs
BufferSurcharge

Leverage

Leverage
Ratio

Liquidity
TLAC
Liquidity Net Stable Ratio toRatio toG-SIBs Coverage
Funding
Risk
Total
Buffer
Ratio
Ratio
Asset Exposure

Publicationof the0.625% 0.25%-0.875% regulatory
notices
1.25%
0.5%-1.25%

70%

1.875% 0.75%-2.125%
2.5%
1%-3.5%

90%
100%

50%
Adoption of new risk weight55%(including output floor)
60%(Deferred to March 2024)*4
65%
70%
72.5%
(Deferred by one year, respectively)
Finalized Period

60%

80%

3%

2

1

Adopt new
3 3.15%method
(3.20%（Deferred to for G-SIBs)
March 2024)*4

100%*6

0.5–1.75%*5

16%

2

6.75%

18%

1

6%

3

7.1%

Post-COVID-19 response framework• In 2020, the FSA announced a deferral of the national implementation date of the Basel III standards and the revised market risk by one year
1
(deferred from March 2022 to March 2023) due to the announcement of GHOS*7• From June 2020 to March 2024, from the perspective of securing the lending capacity of financial institutions during the COVID-19 pandemic, a2

temporary measure was introduced to exclude the outstanding balance of financial institutions' current accounts at the Bank of Japan (BOJ) from thecalculation of leverage ratio exposures and TLAC ratio total exposure• After April 2024, while excluding the outstanding balance of financial institutions' current accounts at the BOJ from the leverage or total exposure;3•

The minimum required level of leverage ratio is increased to from 3% to 3.15% (3.20% for G-SIBs)•

The minimum required level of TLAC ratio on a total exposure basis is increased from 6.75% to 7.1%

*1 Interest rate risk in the banking book *2 Excluding countercyclical buffer*3 Principles on the Loss Absorbing and Recapitalisation Capacity of G-SIBs in Resolution and Total Loss Absorbing Capacity (TLAC) term sheet*4 In April 2022, deferred to March 2024 for banks implementing international standard and banks implementing domestic standard and internal models*5 Introduction of the leverage ratio buffer across Japanese G-SIBs took effect on March 31, 2023 *6 Introduction of the NSFR requirements in Japan took effect on September 30, 2021
*7 GHOS announced a deferral of the national implementation date of the Basel III standards finalized in December 2017 and the revised market risk framework finalized in January 2019 by one year (deferred fromJanuary 2022 to January 2023) in light of the expansion of the impact of COVID-19

29

Basel Ⅲ risk-weighted assets (RWA) floor adjustment• From March 2024, RWA capital floors based on standardized approach are being implemented in phases
RWA floor adjustment: RWA to be adopted

Year

Mar 24

Mar 25

Mar 26

Mar 27

Mar 28Mar 29Output Floor

50%

55%

60%

65%

70%

72.5%

As of March 2024 (MUFG)

As of March 2029 (MUFG)*1¥171tnFlooradjustment
72.5%¥111tn50%

1

RWA
Calculations

Floor

2

1

Floor

2

•1 RWA calculated using only the finalized Basel III standardized approach•2 RWA calculated using only the finalized Basel III nominated approach*1 The length of the bars in this chart is intended to show relative amounts only for the purpose of demonstrating the particular scenarios presented,
including the assumption that the assets to which the several RWA calculation approaches are applied will remain unchanged. Accordingly, any actual
results may change materially from the above presentation.

30

Treatments prior to PONV*1*2 in detail
Treatment at each trigger point and effects on AT1 debt securities and capital securities
CET1 (incl. Regulatory Capital
Buffers*3) requirement as of theend of March 2024: 8.66%(MUFG)

Loss-Absorption
Trigger*4
CET1: 5.125%

Multiple measures
help lower the
PONV probability
PONV*1*4
Negative net worth
or suspension of
payment obligations(incl. the likelihood
thereof)

Regulatory
CapitalBuffers*3

Action Items (MUFG, FSA)
• Early Warning System• MUFG’s Recovery Plan
• Capital distribution
constraints*5

Suspension of
optional
interest
payment orredemption

Specified Item 1
Measures*2*6– Special Supervision– Provision of Financial Liquidity– Possible Capital Injection

Triggering factor*7

CET1
MinimumStandard(4.5%)––

Significant disruptions could
be caused to the financial
market and other parts ofthe financial system in Japan
Financial institutions withpositive net worth

Effects on AT1 debt securities and capital securities
TLAC
AT1
Tier2

• Prompt Corrective Action*8• Specified Item 2 Measures*6*7– Special Supervision– Special Control- Specified Merger, etc.
– Specified Financial Assistance• Insolvency proceedings*10– Senior bonds of MUFG absorb loss in the proceeding after
systemically significant assets and liabilities are transferred toa bridge financial institution

Japanese AT1 has a “Principal
Recovery Rider,” that allows theprincipal to be recovered if the issuer
obtains prior confirmation from the
FSA that a sufficiently high level of
CET1 can be maintained

Exempt fromprincipal payment
for required
amount*9 of
Loss-Absorption

Exempt fromprincipal payment(unrecoverable)
for entire amount

Exempt fromprincipal payment
for entire amount

After PONV, AT1 andTier 2 should
contribute first as abuffer and then TLAC
loss absorption
May exempt fromprincipal payment in
the insolvency
proceedings

Specified Item 1 and 2 Measures upon deliberation by the Financial Crisis Response Council may be designated by the*1 PONV will be deemed to have occurred when the Prime Minister of Japan, following deliberation by Japan’s Financial
Prime Minister as entities whose execution of business operations and management and disposal of property should be
Crisis Response Council pursuant to the Deposit Insurance Act, confirms that “Specified Item 2 Measures” need to be
applied to a financial institution if its liabilities exceed or are likely to exceed its assets, or it has suspended or is likely to supervised by the Deposit Insurance Corporation of Japan. The entities designated as such shall be called “financial
institutions under special supervision”
suspend payment of its obligations*8 In the case that TLAC ratio falls below minimum requirement, Business Improvement Order may be issued*2 Prior precedents (especially those prior to 2014 amendments to the Deposit Insurance Act) are not indicative of*9 Required amount for CET1 to increase to a sufficient level exceeding 5.125%, which is determined throughmeasures to be taken in a given case, and ordinary resolution measures may be applied without implementing any
consultation with the FSA
prompt corrective action or preemptive capital infusion or other measures*3 CET1 Buffer applicable to MUFG: G-SIB Surcharge:1.5%, Capital Conservation Buffer:2.5%, Counter-cyclical Buffer:*10 Executed as legal insolvency proceedings after being taken over by a specified
successor financial institution
ranging from 0% to 2.5% to be calculated as the weighted average of the buffers deployed across all the jurisdictions
to which MUFG has credit exposures is imposed*4 The illustrative cases only where PONV occurs when CET1 falls below 4.5%. However, the circumstances that could
trigger PONV is uncertain, and PONV may be triggered even where CET1 is above 5.125% and without triggering AT1
going concern write-down.
*5 In the case that the applicable regulatory capital buffer requirements are not met, cancellation of interest on AT1 debt
securities may be determined in the issuer’s sole discretion under a capital distribution constraints plan submitted to
the FSA pursuant to an order of the FSA under the Japanese capital distribution constraints system*6 Implementation of Specified Item 1 and 2 Measures will depend on economic conditions and the financial institution’ssoundness. Also, Specified Item 1 Measures may not necessarily be applied before Specified Item 2 Measures*7 Under the framework for orderly resolution of financial institutions, financial institutions recognized as targets of31

Requirements for external TLAC-eligible debt in Japan(Summary)• Relevant obligations must be issued by a holding company designated as the Domestic Resolution
Entity by the FSA;
– There is no requirement for contractual loss absorption provisions as Japanese law provides forstatutory loss absorption through bankruptcy proceedings• Relevant obligations must be paid-in, unsecured and have a tenor of at least one year;• Relevant obligations must not be subject to set-off or netting rights at the time of a PONV;• Relevant obligations must not be redeemable by the holder prior to maturity, other than whenredeemed at the option of the holder no less than one year after issuance;• Relevant obligations must not be redeemable prior to maturity, other than when redeemed at theoption of the issuer, in general, no less than one year after issuance, and with the FSA’s priorconfirmation;• Relevant obligations must be subordinated (including by way of structural subordination only where
the amount of excluded liabilities of the issuer ranking pari passu or junior to the issuer’s unsecured
senior liabilities does not exceed 5% of the issuer’s external TLAC)

32

Requirements for AT1-eliglible debt in Japan (Summary)• Relevant obligations:– must be issued, paid-in, unsecured and subordinated to all liabilities including Tier 2 Capital other than
Additional Tier1 Capital under the occurrence of a Liquidation or Bankruptcy Event– must be perpetual obligations with no step-up or other incentive to redeem– may be redeemed on or after the fifth year anniversary of the issuance date at the option of the issuer
subject to certain requirements, including:o

The issuer should obtain the prior confirmation of the FSA on the capital adequacyoThe issuer should not create the expectation for redemption or buybacko

The issuer replaces the redeemed obligations with capital instruments of equal or higher quality on
terms appropriate for the issuer’s income capacity before redemption, or is expected to maintain its
regulatory capital ratios sufficiently in excess of the minimum requirements after redemption– must not be recognized as debt to determine whether the issuer’s liabilities exceed its assets in its
insolvency proceedings– must be written down or converted into common equity, in full or in part, when the issuer’s consolidated
Common Equity Tier 1 ratio declines below the required level, or in full, when it is confirmed that write
down or conversion, public financial aid or other equivalent measures need to be applied without which theissuer would be recognized to be non-viable• Interest Payments:– must be cancellable in the issuer’s sole discretion, non-payment of such cancelled interest shall notconstitute a default, the issuer must have the right to use the funds from the cancelled payments ofinterest without restriction and the cancellation must be subject to no restriction despite the cancellation ofinterest payments except in relation to dividends or interest on Common Equity Tier 1 or Additional Tier 1
Capital– will be subject to a limitation on the distributable amount defined by the law and regulation– must not be calculated based on the issuer’s credit status after issuance33

Precedents of capital infusions in Japan• A measure similar to Specified Item 1 Measures*1 was implemented in one case in 2003*2
Preemptive capital infusion, resolutions and temporary nationalization
Measures
Preemptive
capitalinfusion

Resolution

Temporary
Nationalization

Capitalconditions

Applicable rules

Bank

Positive net
worth

Article 102, Paragraph
1, Item 1 of the
Deposit Insurance Act

Resona Bank

Positive net
worth

Act on Special
Measures forStrengthening
Financial Functions*3

Negative net
worth or failed

DateAmount(¥bn)

Description

Jun 2003

296

Jun 2003

1,663

Public funds infusion in common shares—government ownership of
50.1%
Public funds infusion in convertible preferred shares

Kirayaka Bank (Jimoto Holdings)
Howa Bank
Kirayaka Bank (Jimoto Holdings)
Tohoku Bank
77 Bank
Tsukuba Bank
Sendai bank (Jimoto Holdings)
Miyazaki Taiyo Bank
Hokuto Bank (Fidea Holdings)
Kochi Bank
Towa Bank
Daisan Bank
Kirayaka Bank (Jimoto Holdings)
Michinoku Bank
Minaminihon Bank
Fukuho Bank
Hokuyo Bank
Howa Bank
Kiyo Holdings (Kiyo Bank)

Sep 2023
Mar 2014
Dec 2012
Sep 2012
Dec 2011
Sep 2011
Sep 2011
Mar 2010
Mar 2010
Dec 2009
Dec 2009
Sep 2009
Sep 2009
Sep 2009
Mar 2009
Mar 2009
Mar 2009
Dec 2006
Nov 2006

18
16
30
10
20
35
30
13
10
15
35
30
20
20
15
6
100
9
31.5

Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in subordinated loans
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred shares
Public funds infusion in convertible preferred share

Article 74 of the
Deposit Insurance Act

Incubator Bank of JapanSep 2010

N.A.

First resolution in which deposit payoff rule was actually invoked

Negative net
worth or failed

Article 102, Paragraph
1, Item 2 of the
Deposit Insurance Act

N.A.

Negative net
worth and failed

Article 102, Paragraph
1, Item 3 of the
Deposit Insurance Act

Ashikaga Bank

Nov 2003

N.A.

DIC acquired all shares of the bank－

Act on Emergency
Measures for the
Revitalization of the
Financial Functions

Nippon Credit Bank
Long-term Credit Bank of Japan

Dec 1998
Dec 1998

3.6tn
3.2tn

Purchases the shares, unsuitable assets using special financial
assistance, compensation for losses and purchase of shares,
capital injection etc.

*1 For the details of Specified Item 1 Measures, refer to P.31
*2 It is uncertain which measure is to be taken in a given case, and ordinary resolution measures may be applied without implementing any preemptive capitalinfusion*3 Capital infusion under the Act on Special Measures for Strengthening Financial Functions has historically been implemented only to regional banks, etc.

34

Structural comparison of AT1 debt

Pricing Date

18 Oct 2023

28 Feb 2023

15 Nov 2023

14 Feb 2024

4 Jan 2022

11 Feb 2020

8.200%

8.000%

9.625%

8.000%

4.750%

6.000%

Size & Currency

US$ 750Mn

US$2Bn

US$1.75Bn

US$2.7Bn

US$1.25Bn

US$1.25Bn

Tenor

PerpNC5.25

PerpNC5.5

PerpNC5.5

PerpNC7.5

PerpNC7

PerpNC5.75

Coupon Cancellation

Discretionary,
non-cumulative

Discretionary,
non-cumulative

Discretionary,
non-cumulative

Discretionary,
non-cumulative

Discretionary,
non-cumulative

Discretionary,
non-cumulative

Security Rating(Moody’s/S&P/Fitch)Baa3 / BB+ / BB+

Baa3 / - / BBB

Ba1 / BB- / BBB-

Ba1 / BBB- / BBB- / BBB- / BBB

B1 / B+ / -5.125% Group

CouponCET1 Trigger Level

5.125% Group

7.000% Group

7.000% Group

5.125% Group

Credit Agricole
S.A. Group
5.125% / Credit
Agricole Group
7.000%

Going Concern Loss
Absorption Mechanism

Temporary
Write-Down

EquityConversion

EquityConversion

EquityConversion

Temporary
Write-Down

Temporary
Write-Down

Optional Redemption
EventsTax, Regulatory

Tax, Regulatory

Tax, Regulatory

Tax, Regulatory

Tax, Regulatory

Tax, Regulatory

Contractual

Statutory

Statutory

Statutory

Statutory

Statutory

US$200k + US$1k

US$200k +US$1k

US$200k +US$1k

US$200k +US$1k

US$200k +US$1k

US$200k +
US$1k

PONV
Denominations

35

MUFG TLAC-eligible senior debt issuance summary
Past issuance calendar
Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb
$

FY15
FY16

5y/10yUS$5.0Bn$$$

5y/10yUS$4.0Bn

€

FY18

€

FY21

6NC5
EUR0.5Bn

FY24

$

€

$

$

3NC2/6NC5/
11NC10
US$2.5Bn¥

5y/10yUS$3.0Bn

3NC2/10y
EUR1.75Bn$$$

10y Green
US$120MM (Sold in domestic market)

3y/5y/10y/20y
US$5.5Bn$

10y Social
US$90MM (Sold in domestic market)

5y/10yUS$3.75Bn$

4NC3
US$1.5Bn$

3NC2/6NC5/
11NC10
US$4.5Bn$

5y/7y/10y
US$3.5Bn$

5y Green
AU$0.5Bn$

4NC3/6NC5/
11NC10
US$6.0Bn€

2NC1/4NC3/
6NC5/11NC10
JPY120Bn€

5y Green
EUR0.5BnA$
5y/10y Green
EUR1.0Bn$

4y Sustainability
EUR0.5Bn€

5y Green
EUR0.5Bn

5y(Re-open)/10y
US$3.0Bn$ €3y/5y/10y/20y
US$6.5Bn

FY20

FY23

€

3y/5y/10y(Re-open)/20y
US$4.6Bn

FY19

5y/10yUS$2.5Bn

7y
EUR0.75Bn$

5y
EUR0.35Bn

4NC3/6NC5/
11NC10
US$2.0Bn$

5y/7y Green /10y
US$4.0Bn

5y/10y (Re-open)
US$2.0Bn

FY17

FY22

Mar

4NC3/6NC5/
11NC10
US$3.0Bn$ €3NC2/6NC5/
3NC2
11NC10
EUR1.3Bn
US$4.4Bn¥

4NC3/6NC5/
11NC10
JPY100Bn$

6NC5/11NC10
US$2.3Bn$

3NC2/6NC5/
8NC7/11NC10
US$5.0Bn¥

2NC1/4NC3/
6NC5/11NC10
JPY232.5Bn

€ ¥
8NC7
EUR0.5Bn

2NC1
JPY240Bn$

6NC5/
11NC10
US$2.5Bn

36

MUFG AT1 debt issuance summary
Past issuance calendar
(¥bn)

Apr

May

Jun

Jul

Aug

Sep

Oct

FY15

¥

Dec

Jan

Feb

Mar
¥

Perp NC 10
150Bn

Perp NC 10
300Bn

¥

FY16

Perp NC 5/Perp NC 10
400Bn

¥

FY17

Perp NC 5/Perp NC 10
320Bn

¥

FY18

Perp NC 5/Perp NC 10
155Bn

¥

FY19

Perp NC 5/Perp NC 10
273Bn

FY20

Perp NC 5/ Perp NC 10
60Bn

FY21

Perp NC 10
40Bn

¥

¥

¥

FY22
FY23

Nov

Perp NC 5/ Perp NC 10
90Bn¥

Perp NC 5/Perp NC 10
330Bn

¥

Perp NC 5/Perp NC 10
143Bn

$

Perp NC 5
US$750MM¥

Perp NC 5/Perp NC 10
200Bn

FY24

37

MUFG Tier 2 debt issuance summary
Past issuance calendar
(¥bn)

Apr

May

Jul

10y/15y
65Bn

10y
80Bn

¥

FY15
FY16

Jun

¥

Aug

¥

FY21
FY22
FY23

Nov

Dec

Jan

Feb

¥

10y
35Bn

Mar
¥

¥

10y
220Bn

10y
150Bn

¥

10y
320Bn

¥

¥

10y
100Bn

10y
35Bn

¥

FY19
FY20

Oct

10y
200Bn

FY17
FY18

Sep

10y
200Bn

¥

¥

10y
50Bn

¥

10y
62Bn

10y
150Bn

¥

10y
20Bn

¥

10y
130Bn

¥

¥

10y
257Bn

10y
200Bn

¥

10y
210Bn

FY24

38

Macroeconomics
GDP level*1

Output gap*1(2019=100)

115

Japan

U.S.

Euro

4

Japan

U.S.

Euro

2
110

0

*2

-2

105

-4
100

-6
-8

95

-10
90
85

-12
-14
2019

2020

2021

2022

2023

2020

2021

Japan

14

U.S.

Euro

6

10

5

8

4

6

3

4

2

2

1

0

0

-2

-1

-4

-2

-6

-3
2017

2018

2019

2020

2021

2022

2023

Japan

7

12

2024

2015

2023

2016

2017

2024

excluding food & energy

(%)

(%)

2016

2022

Core CPI (YoY)*3

CPI (YoY)*2

2015

2019

2024

2018

2019

*1 Oxford economics, Cabinet Office (CAO of Japan), Congressional Budget Office (CBO), Eurostat (official website of the European Union),*2 The actual value of Japan in 2024Q1 is not available*3 Statistics Bureau of Japan, Congressional Budget Office (CBO), Eurostat (official website of the European Union)

2020

U.S.

2021

2022

Euro

2023

2024

39

BOJ’s monetary policy
Timeline

Recent announcements

Apr 2013

Introduction of the Quantitative and Qualitative Monetary
Easing (QQE)

Jan 2016

Introduction of Negative Interest Rate Policy

Sep 2016

Introduction of QQE with yield curve control (YCC)

Jul 2018

Introduction of forward guidance for policy rates

Mar 2021

Further Effective and Sustainable Monetary Easing

Sep 2021

Introduction of Climate Response Financing Operations

Apr 2022

Clarification of consecutive fixed-rate purchase
operations

Dec 2022

Modification of the conduct of YCC

Apr 2023

First Monetary Policy Meeting led by New Bank of Japan
Gov. Ueda

Oct 2023

Conducting YCC with greater flexibility

Mar 2024

Modification of the monetary policy framework

Uncollateralized overnight call rate(%)
0.2

< Before >< After >Rate on the Current AccountBalances 0.1%

(The rate had been in
the range of -0.1 to 0.0%)

BOJ will encourage the rate toremain at around 0.0 to 0.1%

0.1
0.0
-0.1
-0.2

Rate on the Policy-Rate
Balances -0.1%

March
Monetary Policy Meetings

Apr 2023
First Monetary Policy Meeting led by New Bank of Japan
Gov. Ueda• Clarified that BOJ will retain monetary easing with Yield Curve
Control (YCC) as long as necessary to attain its 2% inflation target

Oct 2023
Conducting Yield Curve Control (YCC) with greater
flexibility• BOJ will regard the upper bound of 1.0 percent for 10-year JGB
yields as a reference

March 2024
Modification of the monetary policy framework• End of negative interest rates– Change the uncollateralized overnight call rate to remain at around
0 to 0.1% from minus 0.1%
• Elimination of Yield Curve Control– Abolish JGB purchase operations to maintain 10-year JGB yield
below target upper limits, while continuing with JGB purchases insimilar volumes– In case of a rapid rise in long-term interest rates, BOJ will makenimble responses by, for example, increasing the amount of JGB
purchases and conducting fixed-rate purchase operations of JGBs,
both of which can be done so regardless of the monthly schedule of
JGB purchases and the Funds-Supplying Operations against Pooled
Collateral• Changes in the asset purchase policy– Discontinue purchases of ETFs and J-REITs– Gradually reduce the amount of purchases of CP and corporate
bonds and will discontinue the purchases in about one year

40

External ESG evaluation
Evaluation by ESG rating agencies
Entities
MSCI

FTSE

Inclusion in ESG indicesMar 2024
A

3.9

ESG indices selected by GPIF*1• MSCI Nihonkabu ESG Select Leaders Index• MSCI Japan Empowering Women Select Index(WIN)• FTSE Blossom Japan Index

Sustainalytics

22.3• FTSE Blossom Japan Sector Relative Index• S&P / JPX Carbon Efficient Index

S&P Dow Jones

50

CDP

A-

• Morningstar Japan ex-REIT Gender
Diversity Tilt Index

OthersNikkei SDGs

★4.5

• Bloomberg Gender-Equality Index• FTSE4Good

Toyo Keizai

386.8• SOMPO Sustainability Index：Indicators in executive compensation*1 Government Pension Investment Fund of Japan41

Human Capital Investment (DEI - Diversity, Equity & Inclusion)• Continue to invest in recruitment, development, and promotion of diverse talent, and seek to enhance
corporate value through decision-making and innovation that reflects diverse opinions
Results

TargetRatio of women in managerial positions*1

22.3%(as of Apr 2024)

27.0%
By end Mar 2027

Number of female directors and executive
officers*2

17(as of Apr 2024)–

Ratio of female directors (MUFG)

26.6%(as of Apr 2024)

Agree with the “Challenge initiatives for 30% of
Executives to be women by 2030”*3

Ratio of male employees taking childcare leave*4(the Bank, the Trust Bank, MUMSS)

78%, 93％, 100%
(FY2023)

100%

Ratio of employees

63%(As of Mar 2024)–

Number of executive officers (the Bank)

10（Inc. 1 woman,
as of Mar 2024）–

Ratio of foreign nationals in middle managerial
positions*5

26.4%(as of Mar 2024)

Maintain or improve the current level

Mid-career hires

Ratio of mid-career hired in managerial positions*6

12.2%(as of Mar 2024)

Maintain or improve the current level

People withdisabilities

Number of people with disabilities

Approx. 1,400(As of Jun 2023)–

GenderForeign nationals*1 Ratio of women in line manager (jicho or kacho) or higher positions in the Bank, the Trust Bank and MUMSS in Japan*2 Total of MUFG, the Bank, the Trust Bank, MUMSS, and NICOS*3 The initiative led by the Nippon Keidanren *4 Actual childcare leave exercise rate calculated based on the Act on Childcare and Caregiver Leave taking into account the applicable
exercise period. The exercise rates for subsidiaries were as follows: 83% for the Bank, 94% for the Trust Bank, and 121% for MUMSS *5 Ratio of individuals hired overseas (theBank and MUMSS cover overseas branches and affiliates which are substantially treated as a branch. The Trust Bank only covers overseas branches) in
positions equivalent to director or above to the number of those in positions equivalent to director or above in Japan and abroad*6 Ratio of mid-career hired in managerial positions in Japan (including senior managers (jicho chosayaku) and others tasked with supervision (kanri kantokusha) )42

Governance (Structure of the Board of Directors)(Planned for end June 2024)

Knowledge, expertise and experience

Name

Committeerelated duties*1

Independent
Outside1 Mariko Fujii

Nominating
Compensation
Risk*

●

‐

●

2 Keiko Honda

Audit

●

‐

3 Kaoru Kato

Nominating
Compensation
Audit

●

4 Satoko Kuwabara

Nominating
Compensation*

5 Hirofumi Nomoto

Nominating*Compensation

Corporate
Finance &manage- Financeaccounting
ment

Legal
affairs

GlobalIT/digital

Sustainability

‐

‐

●

‐

‐

●

‐

‐

●

‐

●

●

‐

‐

‐

‐

●

●

●

‐

‐

‐

●

●

‐

●

●

●

‐

‐

‐

‐

●

●

6 Mari Elka Pangestu Risk

●

‐

●

‐

‐

●

‐

●

7 Hiroshi Shimizu

Risk

●

●

●

‐

‐

‐

●

●

8 David Sneider

Risk

●

‐

‐

‐

●

●

‐

‐

9 Koichi Tsuji

Audit*

●

‐

‐

●

‐

●

‐

‐

10 Kenichi Miyanaga

Audit

●

‐

‐

11 Ryoichi Shinke

Audit

●

‐

‐

●

●

●

●

●

●

●

‐

●

15 Junichi Hanzawa

‐

‐

●

16 Makoto Kobayashi

●

‐

●

12 Kanetsugu Mike
13

Hironori
Kamezawa

14 Iwao Nagashima

Nominating
Compensation‐

Extensive knowledge of MUFG’s
business and the ability toappropriately perform managementof MUFG*1 Nominating: Nominating and Governance Committee member Compensation: Compensation Committee member
Audit: Audit Committee member Risk: Risk Committee member*Chairperson

Independent
outside directors
9/16

56.2%

Female directors
4/16

25.0%

Foreign nationals
2/16

12.5%

43

Governance (Corporate executive compensation system)• Updated the compensation system based on new medium-term business plan (MTBP) starting in FY2024
Major updates
The performance-based stockcompensation indicators

Type ofcompensation

Linkage withperformance

Performan
ce-basedrange

AnnualbasesalaryFixed-・Paid based on positions, etc.
・Includes Director Allowance, Committee and Chair Allowance,
Housing Allowance, etc.

-

Nonperformance
based

-

・Base amount by position-

1 Consolidated ROE/Consolidated

expense ratio

Standards for payment→ Updated in line with financial targets
under new MTBP

2 ESG assessment→ Newly added 3 unique indicators andraised the weightStockcompensation*4

3 Total Shareholder Return (“TSR”)

Medium- tolong-term
performance
based

0%–
150%

Base
amount byposition ×→ Newly adopted TSR from the viewpointof improving corporate value over the
medium- to long-term and sharing a
sense of profit with shareholders

The ratio of compensation
compositions
The ratio of performance-based
portions→ Raised the ratio of performance-based

portions for the Deputy President*1 andothers to increase incentive

Cash *4
bonuses

Short-term
performance
based

0%–
150%

Base
amount byposition ×

WeightTarget attainment rate of indices below in MTBP
（1）Consolidated ROE
1（2）Consolidated expenses ratio（3）ESG assessment
2• Reduction of GHG emissions from ourown operations• MUFG Employees survey score• Ratio of women in management• Ratings granted by ESG rating agencies*2（4）Total Shareholder Return (“TSR”) 3

＜55%＞
30%
10%
10%

Comparison of YoY growth rate of indices below withcompetitors*3（1）Consolidated net operating profits（2）Profits attributable to owners of parent＜45%＞

Performance factor(e.g., quantitative evaluation factor applied to theGroup CEO)
Rate of YoY change and target attainment rate ofindices below（1) Consolidated net operating profits（2) Profits attributable to owners of parent（3) Consolidated ROE（4) Consolidated expense ratio＜60%＞

Status of individual execution of duties(e.g., qualitative evaluation factor applied to GroupCEO)・Improvement in customer-segment profitability
・Risks handling・Advances in sustainability management, etc.

＜40%＞

*1 The ratio of compensation compositions for the Group CEO is maintained. Annual base salary : Stock compensation : Cash bonuses=1:1:1*2 A relative evaluation basis in light of the degree of improvement in external ratings by major five ESG rating agencies (CDP, FTSE, MSCI, S&P Dow Jones and Sustainalytics)*3 Evaluated based on comparisons with main competitors (Mizuho Financial Group and Sumitomo Mitsui Financial Group)*4 Subject to malus (confiscation) and clawback (restitution claim)

05%

25%
20%

20%
10%
20%
10%

44

Ample liquidity• Liquidity coverage ratio is consistently over the minimum requirement• Loan amounts controlled stably according to deposit amounts• JPY and Non-JPY deposit amounts have been stable
Liquidity coverage ratio (%)

144.8

141.2

End
Mar 18End
Mar 19

154.6

168.4

Consolidated

169.4

152.2

161.7

Loan to deposit ratio*1 (%)
61.1

59.8

58.3

End
Mar 19End
Mar 20Consolidated

50.9

51.8

52.9

52.8

End
Mar 21

EndMar 22

EndMar 23

End
Mar 24

Minimum
requirement
：100%
End
Mar 20End
Mar 21

JPY deposits (￥tn)

End
Mar 22

EndMar 23

End
Mar 24The Bank non-consolidated

150

154

152

158

156

End
Mar 21

EndMar 22End
Sep 22

EndMar 23

End
Sep 23

End
Mar 18Non-JPY deposits (US$bn)*2

169

279

End
Mar 24

End
Mar 21*1 Calculated by dividing loans （Banking + Trust accounts） by deposits*2 The Bank consolidated excl. MUAH, KS and BDI. Managerial accounting basis

248

246

End
Mar 22End
Sep 22

262

260

272

End
Mar 23

End
Sep 23

End
Mar 2445

Non-JPY Liquidity*1• Managed soundness of balance sheet based on stability(US$bn)Characteristics of MUFG Bank*1’s non-JPY liquidity management

As of end Mar 24

1. Deposits: Seeking to secure stickiness*2 with regional and industry diversification
2. Mid-to long-term market funding:
Emphasizing diversification of method and term

Deposits

Loans
304

（incl. deposits from
central banks）

272

Corp bonds/
I/C borrowings 67: Internal TLAC loans funded by TLAC eligible senior debt issued by MUFG, etc.
: Cross-currency repos*3 (utilizing JGB) etc.

Collateralized 12
funding, etc.
Mid-long term 35
currency swap

: Currency swaps are transacted in mid-to long-term

3. Investment securities: Holding a large volume of high-liquidity assetsthat are expected to be quickly converted into cash, such as foreign government bonds
4. Loans: Within the balances of deposits and mid-to long-term market funding

Investment
securities
111
Interbank mkt
operations, etc.
87
OthersAssetsMid-to long-term
market funding
114

Historical loan-to-deposit gap & mid-to long-term market funding(US$bn)Loan-to-deposit gap

200

Other market
funding, etc.
144

OthersLiabilities

Mid-to long-term market funding

Partial restoration of mid-to long-term market fundingin line with the widening loan-to-deposit gap

100

0

End
Mar
18

End
Sep
18

End
Mar
19

End
Sep
19

End
Mar
20

End
Sep
20

End
Mar
21

End
Sep
21

End
Mar
22

End
Sep
22

End
Mar
23

End
Sep
23

End
Mar
24

*1 The Bank consolidated excl. MUAH, KS and BDI. Managerial accounting basis*2 Deposits that are considered to remain in the bank during times of stress*3 Repurchase agreement in which denominated currency is different in cash transaction and security

46

Overseas corporate credit exposure
Credit exposure*1 to overseas corporate by region

Consolidated(¥tn)

East Asia

Americas

OthersEast Asia

TaiwanBrazil

Korea

China

30

Saudi Arabia

Others

*3

0

US

Italy
Luxembourg

Asia / Oceania*2
OthersUK

Malaysia
FranceIreland
Americas

Hong
Kong

EMEA

EMEA

Indonesia
ThailandGermany
Switzerland

India

Netherlands
Singapore

End Mar 24

OthersCanadaAsia/Oceania*2

60

MexicoAustralia*1 Based on borrower’s location. Including undrawn commitment, exposure in project finance etc. Excluding market risk exposure, inter-bank transactions
and exposures to government agencies and central banks. Exchange rate applied is ¥151.41/US$*2 Excludes BDI’s exposure*3 Others in EMEA are comprised of approximately 50 countries to which MUFG held less than 2.5% exposure(Note) All figures are on managerial accounting basis

47

Exposures to Russia*1• Exposures to Russia*1 was approx. ¥210bn (End March 24)• Balance excluding central bank and inter-bank transactions was approx. ¥140bn, less than 0.1% of thetotal balance of the Bank consolidated*2
the Bank consolidated, incl local subsidiary, excl MUAH, KS, BDI

the Bank consolidated*2

Japanese*4
14%Central bank /inter-bank*3

To
Russia32%

0.1%

Approx.
¥210bnEnd Mar 24

54%
NonJapanese*5*1 Based on borrower’s location. Including undrawn commitment, market risk exposure and etc. All figures are on managerial accounting basis*2 Excluding the balance of central bank and inter-bank transactions etc.
*3 Including due from banks and Russian government bond
*4 Affiliated with Japanese companies*5 Affiliated with non-Japanese companies

48

Reduction of equity holdings• In the previous MTBP, a total of ¥539bn*1,2 exceeding the target was soldSet the new target of ¥350bn*1,2 in the new MTBP
Historical performance and target
（¥tn）
1.86

Approx. selling amount*1

Selling amount inthree years¥539bn*1,2

In the previous MTBP,
the target was raised
from ¥300bn to ¥500bn*1,2

Target in the MTBP

1.34

¥350bn*1,2(¥bn)

Amount ofSale

Acquisition
cost basis

Net gains(losses)

FY15

211

117

94

FY16

267

149

118

FY17

318

201

117

FY18

242

127

115

FY19

240

139

101

FY20

267

137

130

1,545

870

675

FY21

470

169

301

FY22

425

154

271

FY23

622

216

406

1,518

539

979

-

350

-

FY15–20
total

End

End

End

Mar. 21Mar. 24

Mar. 27*3

Domestic equity（Acquisition price）

FY21–23
total
FY24-26
Target*1 Sum of the Bank and the Trust Bank *2 Total amount of sale on an acquisition cost basis*3 Acquisition price of domestic equity securities in the category of “other securities” with market value (consolidated)

49

Strategic investments for sustainable growth• Consider capital utilization, albeit in a disciplined manner, as a key measure for securing sustainablegrowth. Conduct a periodic review of the existing investments
Disciplined investment criteria
Strategy• Consider investments in new
businesses and growth areas such as
digital, global AM/IS and Asia, etc.

Current situationof consideration

Profitability• Profitability criteria for enhancing
corporate values• Periodic monitoring after investments

2024

2023

2023

Divestment

Digital related

Global AM/IS

2023

2024

2022

Approx. ¥2.1tn*7
Approx. ¥66bn

Approx. ¥87bn

Approx. ¥32bn

Approx. ¥16bn

Approx.¥110bn*5

2023

2023

2022

2022

2023

Approx. ¥50bn*6

Capital Nomura
Securities*1

MUIP
Garuda Fund

MUFG
Ganesha FundApprox. ¥21bn

Approx. ¥13bn

Approx. ¥37bn

Approx. ¥14bn

2012–20192022

2020–2023

2016-2024

Commercial Banks(VTB, KS, SBC, BDI)

Approx. ¥1.4tn*2• Reallocate capital tostrategic areas• Focus on capturing returns in existing investments• In spite of continuous consideration, no major investment projects will be considered for the time being• If there is no candidate satisfying our criteria, excess capital is planned to be allocated for additional shareholder return

Strategic Investment
Asia

Capitalefficiency

Approx. ¥26bn
2020

Approx. ¥78bn

Approx. ¥233bn*3Investment inopen innovation
Approx. 20investees
Approx. ¥50bn*4

2019

Approx. ¥300bn
2013–2020

Approx. ¥76bn

2022

Approx. ¥10bn

2020

Approx. ¥36bn

2019

Approx. ¥10bn

2019

Approx. ¥49bn

2018

Approx. ¥45bn

2017

Approx. ¥68bn*1 Rebranded to Krungsri Capital Securities *2 Initial investment total amount into Vietin Bank, KS, Security Bank Corporation, BDI*3 Total amount of Mars Growth Capital(approx. ¥166bn) and Mars Equity Fund(approx. ¥67bn) *4 Internal managerial basis. Reflects subsequent liquidation and dispositions*5 JPY equivalent of share acquisition amount of AUD1,110mm using actual exchange rate as of end April 2024
*6 JPY equivalent of initial investment amount of EUR300mm using actual exchange rate as of end April 2024
*7 Total transaction amount50

US GAAP consolidated financials - Balance sheet
Balance sheet
(¥mm)

(¥mm)
AssetsEnd Mar 23

Liabilities and shareholders' equity

Cash and due from banks

60,050,640

Total Deposits

Interest-earning deposits in other banks

53,989,863

Call money, funds purchased, and payables under repurchaseagreements

Call loans, funds sold, and receivables under resale agreements

15,861,426

Receivables under securities borrowing transactions

4,555,748

Payables under securities lending transactions

End Mar 23
235,276,781
43,570,073
1,137,693

Due to trust account and other short-term borrowings

14,309,258

Trading account liabilities

14,178,275

Trading account assets

46,168,461

Obligations to return securities received as collateral

Investment securities

62,261,931

Bank acceptances outstanding

378,525

Accrued interest

385,921Long-term debt

39,071,755

Net loans

118,682,562

6,891,545

Premises and equipment

860,578

Other liabilities

10,069,740

Accrued interest

500,506

Total liabilities

365,269,566

Customers’ acceptance liability

378,525

Intangible assets—net

1,174,223

Goodwill

296,772

Deferred tax assets

182,388

Other assets

16,772,110

Total assets

381,735,733

Capital stock

2,090,270

Capital surplus

4,902,155

Retained earnings

8,409,281

Accumulated other comprehensive income, net of taxes

844,192

Treasury stock, at cost(482,552)

Noncontrolling interests

702,821

Total equity
Total liabilities and shareholders’ equity

16,466,167
381,735,733

51

US GAAP consolidated financials- Statement of operations

Statement of operations(¥mm)
Statement of Operations Data

End Mar 23

Interest income

4,611,410

Interest expense

2,221,996

Net interest income

2,389,414
8,148

Provision for (reversal of) credit losses
Net interest income after provision for (reversal of) credit losses

2,381,266

Non-interest income

1,695,422

Non-interest expense

3,419,954

Income (loss) before income tax expense

656,734

Income tax expense (benefit)

26,413

Net income before attribution of noncontrolling interests

630,321

Net income (loss) attributable to noncontrolling interests

30,413

Net income attributable to Mitsubishi UFJ Financial Group599,908(¥)
Earnings (loss) per share

End Mar 23

Basic earnings
Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group

48.70

Diluted earnings
Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group

48.39

52

US GAAP consolidated financials- Reverse reconciliation from US GAAP to Japanese GAAP

Reverse reconciliation of shareholders’ equity and net income
(¥mm)

(¥mm)

End Mar 23

End Mar 23
Total equity in accordance with U.S. GAAP
Differences arising from different accounting for:Net Income before attribution of noncontrollinginterests in accordance with U.S. GAAP
Differences arising from different accounting for:16,466,167

630,321(40,079)1

Investment securities

601,329

Loans

46,1482

Loans

44,617

3

Allowance for credit losses

274,540

3

Allowance for credit losses

4

Fixed assets

294,908

4

Fixed assets

5

Pension liability(12,550)5Pension liability

46,977

6

Derivative financial instruments and hedging
activities

243,755

6

Derivative financial instruments and hedging
activities

472,070

7Compensated absences

56,6137

Compensated absences

8

Long-term debt

(15,718)

8

Long-term debt

(1,159)9Consolidation

294,6369Consolidation

156,935

10Goodwill

397,629

10

Goodwill

92,62911

Intangible assets(84,070)

11

Intangible assets

35,65812Investments in equity method investees

707,314

12

Investments in equity method investees(31,597)

13

Others(547,028)

13

Others(355,357)

1

Investment securities

2

Deferred income tax effects of the above
adjustments, when applicable
Net assets in accordance with Japanese GAAP

190,592
18,272,857(156,153)
(837)

6,180

Deferred income tax effects of the above adjustments,
when applicable(341,297)

Net Income before attribution of noncontrollinginterests in accordance with Japanese GAAP

1,200,316

53