Mitsubishi UFJ Financial Group

Corporate Review 2010
Year ended March 31, 2010

Mitsubishi UFJ Financial Group (MUFG) is one of the world's largest and most diversified
financial groups with total assets of ¥204 trillion as of March 31, 2010. The Group
comprises five primary companies, including The Bank of Tokyo-Mitsubishi UFJ, Ltd.,
Mitsubishi UFJ Trust and Banking Corporation, Mitsubishi UFJ Securities Holdings
Co., Ltd., Mitsubishi UFJ NICOS Co., Ltd. and Mitsubishi UFJ Lease & Finance Company
Limited. MUFG's services include commercial banking, trust banking, securities, credit
cards, consumer finance, asset management, leasing and many more fields of financial
services. The Group has the largest overseas network of any Japanese bank, comprising
offices and subsidiaries, including Union Bank, in more than 40 countries.

Disclaimer for Corporate Review 2010

Contents

All figures contained in this report are calculated according to Japanese

Major MUFG Companies

1

GAAP, unless otherwise noted.

MUFG Worldwide

2

This document contains statements that constitute forward-looking

Financial Highlights

4

To Our Shareholders

6

Executive Committee

10

Financial and Operation Review

12

Global Activities

28

Corporate Social Responsibility

34

Corporate Governance

38

Group Business Management

40

Risk Management

42

Compliance

56Internal Audit

60

Corporate Management

62

Global Network

64

Recent History of MUFG

71

Company Overview

72

statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995. Such forward-looking statements represent
targets that management will strive to achieve by implementing MUFG’s
business strategies, but are neither projections nor a guarantee of future
performance. All forward-looking statements involve risks and uncertainties.
MUFG may not be successful in implementing its business strategies, andmanagement may fail to achieve its targets, for a wide range of possible
reasons, including instability in the financial markets, particularly in Europe,and fluctuations in securities markets globally as a result of such instability;
adverse economic conditions and decreased business activity in Japan,
the United States, Europe, or other markets; declining real estate or stock
prices; additional corporate bankruptcies or additional problems in businesssectors to which MUFG companies lend; difficulties or delays in integrating
MUFG’s businesses and achieving strategic goals of the integration;
increased competitive pressures as a result of global consolidation or allianceforming among financial institutions; operational or reputational impact
from regulatory actions in Japan, the United States and other jurisdictions;changes in laws and regulations applicable to MUFG’s businesses; andadverse operating environment for financial institutions globally. Pleasesee our annual report on Form 20-F for the fiscal year ended March 31,
2010, which we plan to file with the SEC in August 2010, for additional
information regarding the risks relating to our businesses. Unlike this report,
all figures that will be contained in the annual report on Form 20-F will becalculated according to U.S. GAAP, unless otherwise noted. We are under
no obligation, and disclaim any obligation to update or alter our forwardlooking statements, whether as a result of new information, future eventsor otherwise.

● Securities● Finance

Mitsubishi UFJ Morgan Stanley

Tokyo Associates Finance

Securities

Nippon Mutual Housing Loan

● Credit Cards/Consumer Loans/● Asset Administration

Installment Credit

The Master Trust Bank of Japan

Mitsubishi UFJ NICOS● Factoring

Ryoshin DC Card

Mitsubishi UFJ Factors

JALCARD

Major
MUFG Companies● Holding Company

Mitsubishi UFJ Financial Group(MUFG)● Commercial Bank

JACCS

● Shareholder Relations

ACOM

Consulting Services

Mobit

Japan Shareholder Services● Housing Loans● Research/Consulting

Mitsubishi UFJ Loan Business

Mitsubishi UFJ Research andConsulting● Regional Banks

Mitsubishi Asset Brains

Senshu Ikeda Holdings

Mitsubishi UFJ Trust Investment

The Chukyo Bank

Technology Institute

TAISHO Bank

The Bank of Tokyo-Mitsubishi UFJ(BTMU)● Leasing● Foreign Exchange

Mitsubishi UFJ Lease & FinanceTokyo Credit Services● Trust Bank

Mitsubishi UFJ Trust and Banking(MUTB)(World Currency Shop)

NBL● Real-estate Brokerage

Mitsubishi UFJ Real Estate Services● Securities Company● Debt Collection

Mitsubishi UFJ Securities Holdings

MU Frontier Servicer(MUSHD)

BOT Lease● Venture Capital

Mitsubishi UFJ Capital
MU Hands-on Capital● Information Technology● Wealth Management

Mitsubishi Research Institute DCS

Mitsubishi UFJ Merrill Lynch

Mitsubishi UFJ Information

PB Securities

Technology

Mitsubishi UFJ Personal

MU Business Engineering

Financial Advisers● DC Pensions● Asset Management

Mitsubishi UFJ Asset Management
KOKUSAI Asset Management
MU Investments

Defined Contribution Plan
Consulting of Japan● Overseas

Union Bank

● Online Securities/

Mitsubishi UFJ Securities

Internet Settlements/

International

Mobile Internet BankBTMU Capital Corporation

kabu.com Securities
Paygent
Jibun Bank

(As of May 1, 2010)

Mitsubishi UFJ Financial Group Corporate Review 2010

1

MUFG Worldwide
Shanghai
Wuxi

Warsaw
BTMU Polska

Amsterdam

Edinburgh

BTMU Holland

Mitsubishi UFJ Baillie Gifford
Asset Management

Saint-Petersburg
ZAO BTMU Eurasia

ChengduMoscow

BTMU China

BTMU
ZAO BTMU Eurasia

Dusseldorf
Hamburg

Birmingham

BTMU

BTMU China

BTMU
BTMU China
MU Trust Consulting
Ling Zheng Investment Consulting

Beijing

Guangzhou

BTMU China
MUTB
MUS

BTMU China

BTMU
BTMU Lease (Deutschland)

Tianjin

BTMU

LondonBerlinBTMU
MUTB
Mitsubishi UFJ Asset Management (UK)
Mitsubishi UFJ Trust International
MUS International

BTMU

BTMU China

Brussels
BTMU

Luxembourg
Mitsubishi UFJ Global Custody

Paris
BTMU

LisbonBTMU

TokyoMadridBTMU

Barcelona
BTMU

GeneveMitsubishi UFJ Wealth Management Bank (Switzerland)

ManilaBTMU

MilanoKarachi

BTMU

BTMU

Munchen
MumbaiBTMU

BTMUFrankfurt

Cairo

BTMU

BTMU

New Delhi
BTMU

ViennaBTMU Holland

PragueBTMU Holland

AlmatyBTMU

Johannesburg

Chennai

BTMU

BTMU

Istanbul
BTMU

Tehran
BTMU

Doha
BTMU

Bahrain(As of June 30, 2010)

BTMU

Dhaka

Ho Chi Minh City

BTMU

BTMU

YangonLabuanBTMU

BTMU

Kuala Lumpur

SurabayaBTMU
BTMU Malaysia

BTMU

BTMU

Singapore

Abu Dhabi

BTMU
MUTB
MUS Singapore

BTMU

Hanoi

Bandung
BTMU

Dubai

Bangkok

BTMU

BTMU
BTMU Participation Thailand
BTMU Holding Thailand
Bangkok BTMU

JakartaBTMU
PT. BTMU-BRI Finance
PT U Finance Indonesia

BekasiBTMU

Karawang
BTMU

Kota Bukit Indah Purwakarta
BTMU

2

Corporate Review 2010 Mitsubishi UFJ Financial GroupMinnesota

Portland

BTMU

BTMU

Shenyang

SeattleChicago

BTMU

BTMU

TorontoVancouver

BTMU Canada

BTMU Canada

BTMU

Montreal

DalianBTMU Canada

BTMU China

BostonBTMU Capital Corporation

New York
BTMU
MUTB
BTMU Trust Company
MUTB U.S.A.
BTMU Leasing & Finance
MUS U.S.A.

Seoul

Washington, D.C.

BTMU

BTMU

Shenzhen
BTMU China

Taipei
Kentucky

BTMU

BTMU

Atlanta
KowloonMexico City

BTMU

BTMU
BTMU Mexico

BTMU

Houston
BTMU

Hong Kong

CaymanDallasBTMU
MUTB
MUS HK Holdings
MUS HK Capital
MUS HK

BTMU
MUTB

BTMU

Los Angeles
BTMU

San Francisco
BTMU
Union BankMUS U.S.A.

Rio de Janeiro
BTMU Brasil

Caracas
AucklandSao Paulo

BTMU

BTMU

SydneyBTMU

BTMU Brasil

BogotaBuenos Aires

BTMU

Melbourne

Santiago

BTMU

BTMU

BTMU

Domestic Network
West Japan Region

Central Japan Region

East Japan Region

Retail branches and offices: 239

Retail branches and offices: 156

Retail branches and offices: 436

Corporate banking offices: 114

Corporate banking offices: 69

Corporate banking offices: 171

Numbers are as of March 31, 2010

Mitsubishi UFJ Financial Group Corporate Review 20103

Financial Highlights
Consolidated Financial Summary and Data of MUFG under Japanese GAAP (not U.S. GAAP*1)
In billions of yen

FY 2009*2

FY 2008*2¥3,600.4¥3,272.9

10.0%

2,177.1

1,975.9

10.1%

Trust fees

103.8

119.4

(13.0%)Net fees and commissions

989.8

970.0

2.0%

Net trading profits

259.7

253.0

2.6%

Net other business profits

69.7(45.6)–

2,084.8

2,083.7

0.0%

1,515.5

1,189.1

27.4%

Ordinary profit

545.6

82.8

558.9%Net income (loss)

388.7(256.9)–Total credit costs*3(825.2)(608.4)–

Mar 31, 2010

Mar 31, 2009

% change¥204,106.9¥198,733.9

2.7%

Loans and bills discounted

84,880.6

92,056.8(7.7%)

Total liabilities

192,807.4

190,163.2

1.3%

Deposits

123,891.9

120,149.5

3.1%

Total net assets

11,299.4

8,570.6

31.8%¥1,348.7¥1,189.9

13.3%

NPL ratio

1.50%

1.24%

Net unrealized gains (losses) on securities available for sale

812.7

(917.7)

BIS risk-adjusted capital ratio*4

14.87%

11.77%

Tier 1 ratio*4

10.63%

7.76%

Total net assets per common share (yen)¥612.05¥528.67% change

Operating Results
Gross profits before credit costs for trust accounts
Net interest income

General and administrative expenses
Net business profits before credit costs for trust accounts
and provision for general allowance for credit losses

In billions of yen except per share amounts

Balance Sheet Data
Total assets

Asset Data
Disclosed claims under the financial reconstruction law–

Capital Data

15.7%

*1 Please refer to Form 20-F for financial numbers under U.S. GAAP (to be released in August 2010)*2 FY2009: Fiscal year ended March 31, 2010, FY2008: Fiscal year ended March 31, 2009
*3 Total credit costs=Credit costs for trust accounts+Provision for general allowance for credit losses+Credit costs (included in nonrecurring gains/losses)+Reversal of allowance for credit losses+Reversal of reserve for contingent losses included in credit costs*4 Based on the capital adequacy regulations (Basel II)
These financial highlights are prepared solely for your convenience and do not include the notes to financial information. Readers are strongly
recommended to refer to the notes contained in the Consolidated Summary Report <under Japanese GAAP>. (http://www.mufg.jp/english/ir/fs/)

4

Corporate Review 2010 Mitsubishi UFJ Financial GroupGross Profits*/Net Business Profits*

Net Income (Loss)
Billions of Yen

3,726.7

3,512.7

3,272.9

3,600.4

Billions of Yen
880.9
636.6
388.7

1,652.7

FY06

1,515.5

1,396.9

FY07

Gross profits(256.9)1,189.1

FY08

FY09

FY06

FY07

FY08

FY09

Net business profits* Before credit costs for trust accounts

Loans

Deposits
Trillions of Yen

Trillions of Yen

84.8

88.5

92.0

84.8

118.7

121.3

120.1

123.8

Mar

Mar

Mar

Mar

Mar

Mar

Mar

Mar

07

08

09

10

07

08

09

10

Non Performing LoansBIS Risk-adjusted Capital Ratios%, Trillions of Yen

%

1.50

1.46

14.87
1.15

1.24
12.54
11.19

1.34

1.32
1.05

11.77

1.18
10.63
7.57

7.60

7.76

Mar

Mar

Mar

Mar

Mar

Mar

Mar

Mar

07

08

09

10

07

08

09

10

NPL ratio

BIS risk-adjusted capital ratio

Non performing loans

Tier 1 ratio

Mitsubishi UFJ Financial Group Corporate Review 20105

To Our Shareholders

From left: Kinya Okauchi, Deputy Chairman; Katsunori Nagayasu, President & CEO; Takamune Okihara, Chairman

MUFG recently changed its leadership to a new management team led by Chairman
Takamune Okihara, Deputy Chairman Kinya Okauchi, and President & CEO Katsunori
Nagayasu. Leveraging the operating platform built over the years since the founding of
MUFG, we aim to enhance corporate value and maximize shareholder value by integrating
the various strengths within the MUFG group through high-quality services that satisfy ourcustomers’ needs. We look forward to your continued support in meeting this challenge.

Performance in Fiscal 2009
In the year ended March 31, 2010 (fiscal 2009), MUFG recorded consolidated net incomeof ¥388.7 billion, a significant improvement of ¥645.6 billion from the net loss recorded ayear earlier. The rebound is mainly due to an increase in consolidated gross profits
reflecting strong improvements in market-related income, and domestic and overseas loanrelated income. In addition, an improvement in operating efficiency resulting from ourrecent IT systems integration and efforts to reduce operating costs, and a substantial
improvement in net gains (losses) on equity securities attributable to the recovery of thestock market contributed to the rebound.

6

Corporate Review 2010 Mitsubishi UFJ Financial GroupThe loan balance, however, decreased mainly due to many corporate borrowers
seeking direct financing again through issuances of bonds, equities and other securities,
and The Senshu Bank, Ltd. no longer being part of MUFG’s scope of consolidation. On theother hand, the deposit balance continued to increase firmly, led by a substantial increasein domestic deposits.
With respect to our financial position, we strengthened our capital base through a ¥1
trillion common share issuance in December 2009. Combined with the net income of fiscal
2009, we further solidified our financial base, and our consolidated-risk adjusted capitalratio and the Tier 1 ratio increased significantly compared with the previous fiscal year-end,
to 14.87% and 10.63%, respectively. We also continued to maintain our non performing
loan ratio at a low level of 1.50%.

Addressing Key Management Issues
We launched our three-year medium-term business plan last year in which we devoted thefirst half to the enhancement of core business fundamentals. In addition to fulfilling socialand economic responsibility by facilitating smooth flows of funds, we have strived to
streamline our operation and reduce risks by decreasing operational costs, re-allocating
personnel, and reducing equity holdings. Furthermore, as mentioned previously, we
worked to further fortify our financial positions by a capital increase last December, in
anticipation of new regulatory capital requirements.
With respect to our growth strategies, we further reinforced our network in Asia, aregion that continues to enjoy high rates of growth, and otherwise worked to lay thefoundation for future growth. In addition to promoting global collaboration through astrategic alliance with Morgan Stanley, we launched a joint venture securities business inJapan this May, with the aim of becoming a leading company in the Japanese securities
industry.
In fiscal 2009, despite a difficult business environment after the global financial crisis,
we managed to post earnings that surpassed our initial targets and implemented strategic
initiatives with an eye towards securing future growth. Fiscal year 2010 is a very important
year for MUFG, since this year is the turning year in our three-year business plan. We shift

Mitsubishi UFJ Financial Group Corporate Review 20107

gears from the phase of “enhancement of core business fundamentals” with an emphasis
on risk management to the new phase of “accelerating growth.” In order to realize further
earnings growth and enhance shareholder returns while further promoting efficiency andmaintaining soundness, we will focus on the priority issues set forth below.
●

Pursuing growth strategies

We have positioned Retail, Corporate, and Trust Assets as our three core businesses. The
integrated business groups established in the holding company exercise the comprehensive
group strength beyond the business boundaries and pursue growth strategies.
In the Retail Business, we will focus on offering products that meet our customers’
diverse needs in accordance with their life stages, such as asset management, inheritance,
real estate and loans.
The priority of our Corporate Business is to drive forward with our Corporate andInvestment Banking (CIB) strategy through such actions as pursuing global collaboration
with Morgan Stanley and to quickly achieve the synergies of the integration of our
securities companies in Japan. In addition, we seek to expand our business in Asia, wherehigh growth potential is expected, and in the United States and Europe. The expansion
includes both organic and non organic strategies.
The growth efforts of our Trust Assets Business are focused on expanding assets
under management and custody by strengthening intra-Group cooperation and productdevelopment. At the same time, we will also endeavor to increase the Group’s presence asa global asset management institution.
Combining the capabilities of the Group, we will seek to strengthen our profitability
as we are heading into the growth phase.
●Strengthening operating foundations

We will continue to build stronger operating foundations.
We are working to achieve further gains in the efficiency of our operating cost
structure, such as reducing head office personnel as part of our efforts to simplify our head
office organization and improve operating efficiency, and reassigning them to businesspromotion and strategic areas.

8

Corporate Review 2010 Mitsubishi UFJ Financial GroupFrom a risk-return perspective, we will continue efforts to reduce our equity holdings
while also seeking to control credit risks on a Group-wide basis.
We will monitor international developments with respect to capital adequacy
requirements. At the same time, we will endeavor to appropriately manage and utilize ourcapital and will make efforts to smoothly provide funds to our customers.
●

Promoting CSR management and brand enhancement

We will focus on raising the level of customer satisfaction by offering services that can beoffered only by MUFG, while managing our business with an emphasis on corporate social
responsibility (CSR). To that end, each officer and employee of the Group will proactively
think and act with a “customer-oriented approach” and a “field-oriented approach.”
Our Group’s CSR activities are focused on two principal themes – addressing global
environmental issues and nurturing society’s next generation. With respect to global
environmental issues in particular, we have formulated an MUFG Environmental Action
Policy under which we are taking specific actions. As a comprehensive financial group, weseek to provide financing support to companies and individuals dedicated to contributing tosolutions for social and environmental issues as well as aim to offer products and services
that directly support our customers’ social contributions and environmental measures.
With “No.1 in Service, No.1 in Reliability, and No.1 in Global Coverage” as ourmotto, we will strive to strengthen the MUFG brand, making it one that is widely
recognized and supported by society at large.
With a commitment to strong profitability and integrity, which are the cornerstones oftrust and credibility, MUFG aims to become a globally respected leading financial group, andall of our executives and employees will join forces towards the attainment of this goal.
Your continued support will be vital to our success going forward.

August 2010

Takamune Okihara

Kinya Okauchi

Katsunori Nagayasu

Chairman

Deputy Chairman

President & CEO

Mitsubishi UFJ Financial Group Corporate Review 20109

Executive Committee❻
Nobushige Kamei

❶

❻

❺
❸

❹

Chairman

Kyota Omori
Deputy President
and Chief Compliance Officer❼❷

Takamune Okihara❷❹

Deputy Chairman and Chief
Audit Officer, President of
Mitsubishi UFJ Trust andBanking Corporation❸
Katsunori Nagayasu
President & CEO, President of
The Bank of Tokyo-Mitsubishi
UFJ, Ltd.

10

Corporate Review 2010 Mitsubishi UFJ Financial Group❼
Masao Hasegawa

Kinya Okauchi❶

Senior Managing Director
and Chief Planning Officer❺
Hiroshi Saito
Senior Managing Director
and Chief Financial Officer

Managing Director
and Chief Risk Management
Officer❶Fumiyuki Akikusa❺

Director, President of Mitsubishi UFJ Securities
Holdings Co., Ltd. (President & CEO of Mitsubishi
UFJ Morgan Stanley Securities Co., Ltd.)

Toshiro Toyoizumi
Managing Officer,
Group Head of Integrated
Corporate Banking Business Group❷
Kazuo Takeuchi

❺

❶

❼
❷

Director, Deputy President of
Mitsubishi UFJ Securities Holdings Co., Ltd.

❻

❸

❹

❻
Tatsuo Wakabayashi
Managing Officer,
Group Head of Integrated
Trust Assets Business Group❸
Kaoru Wachi
Director, Senior Managing Director of
Mitsubishi UFJ Trust and Banking Corporation❼
Hidekazu Fukumoto❹
Takashi Oyamada

Managing Officer,
Group Head of Integrated
Retail Banking Business Group

Director, Managing Director of
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Mitsubishi UFJ Financial Group Corporate Review 201011

Financial andOperation Review

Financial Review

12

Retail Business16

Corporate Business

20

Trust Assets Business24

Business Portfolio (Net Operating Profits Basis)
Global Markets, others
9%
Trust Assets
5%

UNBC
7%

Retail32%

Overseas
13%
Domestic
corporate
34%

FY
2009

12

Corporate Review 2010 Mitsubishi UFJ Financial GroupFinancial Review for the Fiscal Year Ended March 31, 2010

Highlights of Consolidated Statements of Operations
Consolidated gross profits increased by ¥327.5 billion year on year to ¥3,600.4 billion,
mainly due to steady growth in market product income and domestic and overseas
loan income. Another factor was that income from ACOM CO., LTD. was reflected inconsolidated business results, following its consolidation in December 2008.
General and administrative expenses were ¥2,084.8 billion, mostly unchanged from theprevious fiscal year. However, excluding the impact of the consolidation of ACOM CO.,LTD., general and administrative expenses decreased ¥68.6 billion year on year, thanks
to Group-wide efforts to reduce operating expenses, in addition to system integration
benefits. Consequently, consolidated net business profits increased by ¥326.3 billion year
on year to ¥1,515.5 billion.
Total credit costs of parent banks BTMU and MUTB on a non-consolidated basis werelargely unchanged from the previous year. However, consolidated total credit costs
increased by ¥216.7 billion year on year to ¥825.2 billion due to higher credit costs fromother subsidiaries and the consolidation of ACOM CO., LTD. On the other hand, net gains(losses) on equity securities improved significantly by ¥441.2 billion year on year thanks toa stock market recovery.
As a result of the foregoing, consolidated net income was ¥388.7 billion, an improvementof ¥645.6 billion from a net loss in the previous fiscal year.

Earnings (Losses)

Billions of Yen
3,600.4

3,272.9

1,515.5
1,189.1
388.7(256.9)

FY
2008
Gross
profits

FY2009
Net businessprofits

Net income(loss)

Mitsubishi UFJ Financial Group Corporate Review 201013• Net operating profits by segment (Managerial Accounts Basis*)
Net operating profits increased by ¥274.8 billion year on year. The Global Markets andOthers segment was a major driver of this increase, but all customer segments except Trust
Assets also posted increases.
In the Retail segment, net operating profits increased substantially due to a recovery
in investment product sales and securities income, as well as a contribution from theconsolidation of ACOM CO., LTD., which were partly offset by reduced deposit income
accompanying lower interest rates. The Domestic Corporate segment posted higher net
operating profits as lower deposit income was more than offset by increased profits of
the Securities company and lending income as well as reduced operating expenses andother factors. The Overseas Corporate segment sustained a strong performance centeredon non-Japanese business, leading to increased net operating profits. The Trust Assets
segment posted lower net operating profits, due to the impact of decreased asset balances
caused by the stock market downturn in the previous fiscal year.
*Consolidated net business profits before consolidation adjustments. Gains and losses on credit derivatives for
credit risk hedging are recorded in “Global Markets and Others.”

Highlights of Consolidated Balance Sheets• Loans and deposits
Loans decreased by ¥7.1 trillion year on year to ¥84.8 trillion, mainly due to decreased
domestic and overseas corporate lending accompanying the normalization of bond, equity and other
Loans and Deposits

Trillions of Yen

capital markets, as well as the deconsolidation of

Deposits increased by ¥3.7 trillion to ¥123.8 trillion

123.8

120.1

the Senshu Bank.
92.0

84.8

compared with March 31, 2009, mainly reflecting asubstantial increase in domestic deposits.

14

Corporate Review 2010 Mitsubishi UFJ Financial GroupMar 31
2009

Mar 312010

Loans

Deposits• Non performing loans (total of two banks**)
Non performing loans (NPLs) as of March 31, 2010 were ¥1.34 trillion, an increase of ¥158.8
billion from March 31, 2009. The NPL ratio increased 0.25 of a point from March 31, 2009
to 1.50%, but remained at a low level.
**Bank of Tokyo-Mitsubishi UFJ, Ltd. and Mitsubishi UFJ Trust and Banking Corporation.

• BIS risk-adjusted capital ratio
The BIS risk-adjusted capital ratio was 14.87%, 3.09 points higher than March 31, 2009.
The Tier 1 ratio was 10.63%, 2.86 points higher than March 31, 2009. This was mainly due
to a capital increase through the offering of new common shares, as well as the fact that net
unrealized losses on securities available for sale turned to net unrealized gains.
• Net unrealized gains (losses) on securities (total of other securities available for sale)Net unrealized gains (losses) on securities (total of other securities available for sale) improved¥1,730.4 billion to net unrealized gains of ¥812.7 billion. This mainly reflected an improvement in net
unrealized gains on domestic equity securities following a stock market recovery.

NPL Status

Trillions of Yen

Capital Ratios*1

14.87%

1.50%
1.24%

11.77%
0.30

Trillions of Yen

10.63%

7.76%

10.00

0.29
7.57
0.65

0.84

0.24

0.19

Mar 31
2009

Mar 31
2010

Special attention

Mar 31
2009
Tier 1Mar 31
2010

Doubtful

BIS risk-adjusted
capital ratio

Bankrupt or De facto bankrupt

Tier 1 ratio

NPL ratio*1 Based on the capital adequacy regulations (Basel II)

Mitsubishi UFJ Financial Group Corporate Review 201015

Retail BusinessIn billions of yen

FY2009FY2008% Change

Gross Profits

1,433.3

1,320.0

9%

445.1

344.9

29%

Net Operating Profits

Corporate

RetailTrust
AssetsFY2009 Performance Summary and Future Plans
Gross profits in the Retail Business increased ¥113.3 billion, or 9%, year on year to¥1,433.3 billion. Net operating profits rose ¥100.2 billion, or 29%, year on year to¥445.1 billion.
This performance reflected the full-year contribution of consumer finance income from
ACOM CO., LTD., which was consolidated in December 2008, as well as an increase inincome from investment product sales as market conditions recovered. On the other hand,income from yen deposits and loans decreased, mainly due to a decline in interest spreads
accompanying the lowering of interest rates in 2008. In addition, a consumer financesubsidiary posted lower earnings, mainly because of a reduced loan interest rate and loanbalance in response to new regulation.
In the Retail Business, we aim to expand earnings by providing products addressing avariety of needs for asset management, inheritance and real estate, borrowing and otherfinancial services according to the life stages of our customers.

Mitsubishi UFJ Financial Group Corporate Review 201017

Corporate

RetailTrust
AssetsInvestment Product Sales
FY2009 Performance Summary and Future Plans
Gross profits from investment product sales increased ¥8.2 billion year on year to ¥108.0
billion. Total sales of investment products (equity investment trusts, insurance annuities andfinancial products intermediation) increased 25% from a year earlier to ¥3.1 trillion. Thiswas mainly due to increased sales of equity investment trusts due to improving market
conditions. The customer account balance of investment products as of March 31, 2010was ¥13.5 trillion, an increase of 18% from March 31, 2009. This increase reflected an
upturn in the fair value of the investment products, as well as the ongoing inflow of funds
from customers.
In regard to insurance product sales, in fiscal 2009 we offered training to approximately
3,700 bank staff, and began the full-scale handling of insurance products by these staff.
We increased the number of locations handling insurance products from 377 as of March
31, 2009 to 465 as of March 31, 2010.
Going forward, we will continue to actively
promote our segment-based strategies in order

Customer Account Balances:
Equity Investment Trusts,
Insurance Annuities, andFinancial Products Intermediationto accurately meet diversifying customer needs.

15

While providing products attuned to customer

12

characteristics through optimal sales channels,

9

we also intend to further strengthen

6collaboration within the Group.

Trillions of Yen

3
0

18

Corporate Review 2010 Mitsubishi UFJ Financial GroupMar 31
2008

Mar 31
2009

Financial
products
intermediation

Equityinvestment
trustsMar 31
2010
Insurance
annuities

Consumer Finance
FY2009 Performance Summary and Future Plans
Gross profits from consumer finance increased ¥159.9 billion year on year to ¥619.0
billion. The main reason for this increase was the full-year contribution of consumer
finance income from ACOM CO., LTD., which was consolidated in December 2008. Grossprofits of Mitsubishi UFJ NICOS Co., Ltd. declined mainly due to decreases in loan income
resulting from the lowering of interest rates and loan balance.
The loan balance of “BANQUIC,” an ACOM-guaranteed card loan that BTMU began
handling in November 2007, has steadily increased.
The consumer finance market is contracting in scale due to drastic changes in the regulatoryenvironment, and this trend is expected to continue for the foreseeable future. Nonetheless,
MUFG intends to accurately satisfy customer needs through the development of a soundconsumer finance business.

Change in Loan Balance

Trillions of Yen

1.5

1.0

0.5

0

Sep 302008

Mar 312009

ACOM

MU NICOS

Sep 302009

Mar 31
2010
Commercial bankand trust bank

ACOM: Receivables outstanding of loan business and banking business
MU NICOS: Operating receivables of card cashing and financeCommercial bank and trust bank: Card loan outstanding, etc.

Mitsubishi UFJ Financial Group Corporate Review 201019

Corporate BusinessIn billions of yen

FY2009FY2008% Change

Gross Profits

1,643.7

1,603.6

3%

759.3

718.7

6%

Net Operating Profits

Corporate

RetailTrust
AssetsFY2009 Performance Summary and Future Plans
Gross profits increased ¥40.1 billion, or 3%, to ¥1,643.7 billion. Net operating profits
increased ¥40.6 billion, or 6%, to ¥759.3 billion. In domestic operations, increased income
from Securities company and loan operations, reduced operating expenses and otherfactors outweighed a decline in income from deposits. In global operations, we achieved astrong performance in Asia, the Americas, and Europe centered on business with large-cap
corporate customers. There was also a substantial increase in income from securities
operations.
The Corporate Business is vigorously promoting its Corporate and Investment Banking (CIB)
strategy. For example, by promoting global collaboration with Morgan Stanley, we aim togenerate synergies as early as possible through the integration of securities companies inJapan. In addition, the Corporate Business aims to drive business expansion on many
fronts, including through an M&A strategy, in Asia, where strong growth is anticipated, as
well as in the Americas and Europe.

Mitsubishi UFJ Financial Group Corporate Review 201021

Corporate

RetailTrust
AssetsDomestic Deposits and Loans Operations
FY2009 Performance Summary and Future Plans
Gross profits from domestic deposits and loans operations declined ¥22.9 billion year on
year to ¥443.1 billion. Lending income was up ¥13.7 billion from the previous fiscal year.
While the average domestic corporate lending balance decreased as companies shifted
their fund procurement sources from borrowing to the capital markets, where market
conditions are improving, lending income increased due to improvement in the loan
spread.
Deposit income decreased by ¥36.7 billion year on year due to a decline in the deposit
spread, reflecting falling market interest rates. The average domestic yen-denominatedcorporate deposit balance increased steadily.
Looking ahead, we will continue to meet the needs of small and medium-sized enterprises
by promoting lending guaranteed by credit guarantee associations, among other measures,
while striving to ensure appropriate returns.

Domestic Corporate
Deposit Balance

Domestic Corporate
Loan Balance%

Trillions of Yen

%

50

0.8

35

0.5

45

0.7

Trillions of Yen

0.4

30

0.3
25
0.2

0.6

40

20

0

0.5

FY 2008
H1

FY 2008
H2

FY 2009
H1

Average loan balance(left scale)

22

Corporate Review 2010 Mitsubishi UFJ Financial GroupFY 2009
H2
Loan spread(right scale)

0.1

0

0

FY 2008
H1

FY 2008
H2

FY 2009
H1

Average deposit balance(left scale)

FY 2009
H2
Deposit spread(right scale)Global Business
FY2009 Performance Summary and Future Plans
In the global business, gross profits increased by ¥41.6 billion year on year to ¥360.6 billion(commercial bank consolidated basis excluding UNBC). Income rose substantially in all three
regions of Asia, the Americas and Europe. Loan income and related fees and commissions
increased, centered on large-cap corporate business, despite a decline in income from
deposits due to a fall in interest rates. We have made steady progress in corporate finance incollaboration with Morgan Stanley around the world, including in Europe and Asia,
beginning with a loan marketing joint venture that commenced operations in the U.S. in July
2009. We have already successfully concluded nearly 100 deals on a cumulative basis.
Looking ahead, we will work to drive income growth by pursuing further collaboration with
Morgan Stanley to win highly profitable corporate finance projects.

Cumulative Number of Deals
with Morgan Stanley*2
100
80
60

Gross Profits*1
Billions of Yen

40

400
20
300

0

Mar 31
2009

200

100

Jun 302009

Sep 302009

Dec 312009

Apr 302010*2 MUFG figures, including mandates won0

FY 2008

Asia

FY 2009

Americas

Europe*1 Excluding gains (losses) on CDSs

Mitsubishi UFJ Financial Group Corporate Review 201023

Trust Assets BusinessIn billions of yen

FY2009FY2008% Change

Gross Profits

157.2

171.1

(8%)

Net Operating Profits

65.8

77.8

(15%)
Corporate

RetailTrust
AssetsFY2009 Performance and Future Plans
Gross profits decreased ¥13.9 billion, or 8%, year on year to ¥157.2 billion. Income waslower mainly from the pension business and investment trust management business, partly
due to the impact of a decline in asset balances prompted by worsening market conditions
in fiscal 2008. Net operating profits decreased ¥12.0 billion, or 15%, to ¥65.8 billion,
despite efforts to reduce operating costs.
In the Trust Assets Business, our strategy is to maintain our strong presence in Japan, while
stepping up our overseas initiatives. First, we will expand alliances with overseas investment
management firms in response to growing needs for overseas investment products withstrong growth prospects among Japanese customers. We started to provide Japanesecustomers with the investment products of Aberdeen Asset Management, a UK-based
asset manager with whom we entered into a capital and business alliance in October
2008. In November 2009, we raised our equity interest in Aberdeen Asset Management
and made it an equity method affiliate to further strengthen the alliance.
Another important strategy is developing our overseas customer base. We are considering
providing Japanese products to overseas customers, and exploring the possibility ofentering the overseas retail and institutional investor business, primarily in Asia.

Mitsubishi UFJ Financial Group Corporate Review 201025

Corporate

RetailTrust
AssetsPension Business
FY2009 Performance and Future Plans
Gross profits declined ¥2.4 billion year on year to ¥59.0 billion due to the impact ofdeteriorating market conditions. However, in our core pension trust business, we maintained
the top share of the market in terms of the Pension Trust Balance by continuously launching
new products that fit customer needs.
In defined contribution (DC) pensions, the asset administration balance and investment productsales balance exceeded ¥1.7 trillion and ¥900 billion, respectively, allowing us to maintain oneof the highest shares of the domestic market.
Looking ahead, we will strengthen comprehensive consulting services addressing customers’
pension financial management and bolster the development of new products designed tomeet increasingly diversifying customer needs. In DC pensions, we will work to win accounts tobecome the plan administrator for major large and medium-sized pensions and to further
strengthen investment product sales to these pensions.

Balance of Investment Product Sales andAsset Administration in DC Pensions
Billions of Yen

Trillions of Yen

1,250

2.0

1,000

1.5

750
1.0
500
0.5

250
0

0

Mar 31
2008

Mar 31
2009

Investment product sales(left scale)

26

Corporate Review 2010 Mitsubishi UFJ Financial GroupMar 31
2010
Asset administration(right scale)Investment Trust Management and Administration
FY2009 Performance and Future Plans
Gross profits from the Investment Trust Management

Investment Trust: Management /Administration Asset Balances

Business decreased ¥3.1 billion year on year to ¥59.2 bil-

40

lion. Gross profits from the investment trust administra-

30

tion business decreased ¥1.2 billion year on year to ¥13.2

20

billion. In both businesses, the decline in gross profits was

10

attributable to the impact of deteriorating market condi-

0

tions since the second half of fiscal 2008. However, thebalance of investment trust assets under management

Sep 302008

Mar 31
2009

Investment trust
administration assets

Sep 302009

Trillions of Yen

Mar 31
2010

Investment trust
management assets

was maintained at the industry's top level, mainly owing
to the inflow of funds to high-dividend investment trust products and increases in fairvalue. We also maintained the investment trust administration balance at the industry’s top
position, as highlighted by the entrustment of Japan’s first crude oil futures ETF. Looking
ahead, in the Investment Trust Management Business, we will strengthen our product lineup to meet diversifying customer needs. In the Investment Trust Administration Business,
we aim to further expand our asset balance by promoting an approach focused on asset
management companies.
Global Custody Services
FY2009 Performance and Future Plans
Gross profits in the Global Custody Business decreased ¥3.3 billion year on year to ¥8.4
billion. Securities lending and other value-added businesses that performed well in fiscal
2008 were impacted by the adverse market conditions and struggled in fiscal 2009.
However, the global custody asset balance improved to ¥43 trillion, thanks to Group-wide
collaboration on cultivating new customers and other initiatives.
Going forward, we intend to strengthen foreign investment trust administration
operations, for which there are strong customer needs, as well as securities lending andother value-added operations. We also plan to further pursue Group-wide collaboration inorder to cultivate new customers.

Mitsubishi UFJ Financial Group Corporate Review 201027

Global Activities

By harnessing the strengths of our global network
and utilizing capital and business alliances,
we are enhancing our presence in various regions
around the world.

MUFG has the largest overseas network of any Japanese bank. As of March 31, 2010, theGroup had a presence in over 40 countries, with 463 outlets outside Japan. MUFG
leverages this broad network to offer fund-raising support through syndicated loans,project finance and other methods. The Group also seeks to meet the needs of corporateclients by providing global cash management services (CMS) and M&A advisory, among
other services.
MUFG is also expanding its network in various regions through capital and businessalliances with leading financial institutions worldwide, and strengthening overseas
Corporate and Investment Banking (CIB) operations. Through these strategies, MUFG aims
to raise the share of net operating profits derived from international operations over the
medium and long terms. In regard to the strategic alliance with Morgan Stanley, in which
MUFG took an equity stake, we achieved steady results in overseas operations. In theAmericas, we executed loan projects concerning large acquisitions through a loan
marketing joint venture in corporate finance. In Europe, the Middle East and Africa (EMEA),
we formed a syndicated loan leveraging MUFG’s trade finance expertise and Morgan
Stanley’s commodities expertise. In Asia, we implemented a fund-raising project combining
loans from MUFG and bond issuance arrangements from Morgan Stanley. Going forward,
we will continue to actively expand operations through collaboration that leverages thetwo partners’ strengths in various regions.

Mitsubishi UFJ Financial Group Corporate Review 201029

Asia & Oceania
In Asia & Oceania, MUFG has built a superior network underpinned by its extensive history
in the region. As of March 31, 2010, MUFG had a total of 54 branches, sub-branches,
representative offices and subsidiaries in the region. MUFG aims to become the number one
bank in Asia. We have built a business organization closely tied to local regions and we havea competitive edge in providing our customers with solutions that take full advantage of theGroup's comprehensive strengths.
We have secured a strong position and network in doing business with Japanese companies,
especially in the area of settlement services, and we will maintain this edge in the future. In
terms of business with non-Japanese companies, we are working to further increasebusiness with blue-chip companies in Asia and multinational corporations by strengthening
our Corporate and Investment Banking (CIB) operations, among other measures. MUFG
achieved strong results, including ranking No.1 in Asia in terms of syndicated loanarrangements in international currencies (excluding Japanese and Australian markets) in thefirst half of 2009 (January to June). Furthermore, in order to incorporate the medium- andlong-term growth of Asia's economies into the Group's overall growth strategy, we arelooking at proactively developing retail and other new operations where markets are
predicted to grow in the future.
In China, where prospects for economic growth remain strong, MUFG is enhancing
products and services, while bolstering its framework. In March 2010, the MUFG Group
provided the first RMB trade settlement services between Japan and China. Furthermore, in
May 2010, Bank of Tokyo-Mitsubishi UFJ (China), Ltd., a wholly owned local subsidiary of

30

Corporate Review 2010 Mitsubishi UFJ Financial GroupBTMU, became the first foreign bank to issue RMB bonds in mainland
China, and has developed a framework to further respond to
customers’ RMB-based financing needs.
Working to expand its network in China, BTMU (China) opened theChengdu branch in March 2010 and the Guangzhou Nansha subbranch in July. Combining BTMU (China)’s total of 8 branches and 3
sub-branches in the country with 1 BTMU representative office, MUFG

Opening ceremony
for the Chengdu branch, China

now has a local network of 12 bases from which it plans to fulfill a diverse range ofcustomer needs.
The Americas
As of March 31, 2010, MUFG had a total of 30 branches, sub-branches, representative
offices and subsidiaries in the Americas. In addition, Union Bank has a network of 341
branches, mainly concentrated in the State of California.
In North America, MUFG provides a broad scope of services centered on fund-raising
support through syndicated loans, securitization, leases, structured finance and otherservices. In 2009 (January to December), MUFG ranked No.1 in the Americas in terms ofproject finance arrangement, as a result of proactive efforts to develop project finance
operations. In addition, MUFG conducts comprehensive investment banking operations
such as securities underwriting and dealing operations, and satisfies a diverse array ofcustomer needs by offering optimal investment banking proposals.
In Central and South America, MUFG has the largest network of any Japanese bank, with
10 locations in 7 countries. Leveraging this network, MUFG is developing services that
include syndicated loans and project finance for natural resource development. In Brazil,
which is the largest market in Central and South America, MUFG provides a broad range ofservices by utilizing its 36-year business alliance with Banco Bradesco, one of Brazil’s largest
private-sector banks, in addition to Banco de Tokyo-Mitsubishi UFJ Brasil S/A, whose history
can be traced back to the pre-World War II years.

Mitsubishi UFJ Financial Group Corporate Review 201031

• Union Bank
Union Bank (Union Bank, N.A.), headquartered in San Francisco, is one of the top 20
commercial banks in the U.S. in terms of total deposits (as of March 31, 2010). Through its
parent holding company UnionBanCal Corporation (UNBC), Union Bank is a wholly owned
consolidated subsidiary of BTMU. The bank has approximately 10,000 employees and offers
a wide range of services, including lending, cash management services, and trade financing
services to corporate clients, and deposit, housing loans, investment
products, private banking and other financial services to individuals. In
April 2010, Union Bank acquired certain assets and liabilities of
Tamalpais Bank of the State of California, and Frontier Bank of theState of Washington in May 2010. Through these acquisitions, Union
Bank has expanded its branch network to cover the U.S. West Coastfrom Seattle in the north to San Diego in the south.
In February 2010, BTMU and Union Bank introduced an alliance
between their existing power and utility groups in the United States.
The groups now jointly market BTMU and Union Bank products under
Union Bank

the Mitsubishi UFJ Financial Group (MUFG) brand. Looking ahead, we
intend to further increase MUFG’s presence in the U.S. by further enhancing such internalgroup collaboration in the country and promoting our growth strategies.
Europe, Russia, the Middle East and Africa
As of March 31, 2010, MUFG had a total of 38 branches, sub-branches, representative
offices and subsidiaries in Europe, Russia, the Middle East and Africa.
In Western Europe, MUFG has established operating bases in major cities. The Group hasconstructed a solid network of operating bases to assist in meeting the complex business
requirements of clients, including cross-border transactions that are increasing sharply in the
EU region. In July 2009, MUFG arranged a large fund-raising project for Electricite de France
S.A. (EDF) as the sole lead managing underwriter. This project raised funds through the firstissuance of non-government-guaranteed samurai bonds since the financial crisis.

32

Corporate Review 2010 Mitsubishi UFJ Financial GroupIn Central and Eastern Europe and Russia, MUFG opened a representative office in Almaty,
Kazakhstan. As the number of Japanese firms developing business in Central Asia continues
to rise, MUFG aims to contribute to regional development by meeting the needs ofcorporate clients at the frontline of their operations.
In the Middle East, we address our customers’ needs mainly through our Bahrain branch,
offices in Abu Dhabi, Dubai and Doha, and three representative offices (Cairo, Tehran and
Istanbul). We also address our customers’ needs through a partnership with the DubaiJapan desk of the National Bank of Abu Dhabi. In a region that has many large-scale
projects thanks to its ample oil and natural gas resources, we are also proactively developing
our operations in the areas of project finance, syndicated loans, and trade finance. In June
2009, we arranged a US$5 billion syndicated loan for International Petroleum Investment
Company (IPIC) in Abu Dhabi of the United Arab Emirates. This was the largest syndicatedloan formed by a Japanese bank for a customer in the Middle East.
In Africa, in May 2010, MUFG signed a memorandum of
understanding on business cooperation with The African
Export-Import Bank, a multinational financial institution in
the region. Looking ahead, while leveraging this partnership,
MUFG will actively work to provide services in Africa.

Signing ceremony with The African Export-Import Bank

Mitsubishi UFJ Financial Group Corporate Review 201033

Corporate Social Responsibility (CSR)

What CSR Means for MUFG
MUFG’s management philosophy incorporates our aspirations to promote harmony and prosperity for all of our stakeholders, and to contribute to the realization of a sustainable society. The
essence of MUFG’s CSR is for each employee to put our management philosophy into practice,based on “customer-oriented” and “field-oriented” approaches.
MUFG operates in many locations throughout the world, and does business with a vast number of customers. While we operate globally as a financial group, we are also a member of thelocal communities in which we do business, with ties to many of the people in each of thosecommunities. From these dual points of view, we work to recognize both our responsibilities andour potential, and to act accordingly.
MUFG has adopted “Addressing Global Environmental Issues” and “Nurturing Society’s Next
Generation” as the two priority themes of its CSR activities. These priority themes have been
established based on our belief in working to solve key issues for society as a whole, given that
MUFG exists only with the support of our customers and society at large.

Group CSR Priority Themes

Addressing
GlobalEnvironmental
Issues・ Address global warming, climate change, andother global environmental issues which arebecoming increasingly serious.

・ Nurture society’s next generation which will
NurturingSociety’s Next
Generation

address issues such as global environmental
problems and poverty on a global scale, as well as
domestic problems in Japan such as low
population growth, the aging of the population,and local or regional issues.

34

Corporate Review 2010 Mitsubishi UFJ Financial GroupThe MUFG Group is particularly concerned about environmental issues. To turn those concerns
into action, in June 2008 we formulated the MUFG Environmental Action Policy (the “Action
Policy”) to promote concrete efforts for the environment. Under the Action Policy, we areworking to reaffirm our understanding of environmental issues, and, in our core business offinancial services, provide products and services that support the concerns of customers in relation to the environment. Through this, we will devote our energies to the creation of an environmentally conscious society. We will also work to reduce the environmental impact of ourown business activities, with the Bank of Tokyo-Mitsubishi UFJ (BTMU), Mitsubishi UFJ Trustand Banking Corporation (MUTB), and Mitsubishi UFJ Morgan Stanley Securities (MUMSS) eachhaving set a target of a 25% reduction in emissions of CO2 and other greenhouse gases from2000 levels by 2012.
With an awareness of its role as a comprehensive financial group, MUFG will continue
strengthening its initiatives to contribute to the realization of a sustainable society.

Contributing Through Our Financial Functions
MUFG will continue to leverage its unique capabilities as a comprehensive financial group to provide financial support so that funds flow to companies and individuals that are passionate aboutsocial and environmental initiatives, and we will continue to offer products and services that
directly tie into our clients’ social and environmental projects.
• Promotion of Financial Schemes that Help Protect the Ecosystem
At MUMSS, the staff is working with the government of Ecuador to promote a break from reliance on diesel-based electric power, through a project that proposes raising funds utilizing a
Clean Development Mechanism (CDM). The initiative aims to protect the ecosystem by replacing diesel with renewable natural energy sources such as wind and biofuel power generation.
MUMSS is also the first Japanese company to be registered with the United
Nations as a CDM consultant for reforestation in Paraguay.

A species of iguana native to the Galapagos Islands (Ecuador)

Mitsubishi UFJ Financial Group Corporate Review 201035

• Project Finance for Renewable Energy
BTMU has been involved in many renewable energy financing projects in Europe and North
America. In October 2009, BTMU closed the financing for a portfolio of offshore wind farm
assets invested in by Centrica Plc. of the UK as a mandated lead arranger. Despite
severe market turmoil, BTMU successfully brought together the deal with a total of
fourteen banks from six different countries. This deal marks an important milestone
as the first successful wind portfolio project financed in the UK where the majorityof assets are situated offshore.

Centrica Plc.

• Support for Environmentally Conscious Fund Raising
Financial institutions are expected to engage in initiatives to ensure that the funds they provide
for development projects in industrializing countries, or for business activities worldwide, do
not lead to the destruction of the global environment. At BTMU, the staff employ our Equator
Principles as a framework for considering the environment when working on large-scale project
finance deals, and operate according to those principles. Our staff provides advice to ensurethat the customer’s project is operated with consideration for the environment in line withinternational standards, supporting both fund raising and environmental protection.

Local Communities and Global Society• Scholarships for Students from Asia
The Mitsubishi UFJ Foundation provides scholarships to 16 graduate students and three
undergraduate students from Asian countries studying in Japan, to support the development of
human capital in the region. The foundation holds networking events several times each year
where these students can meet employees. The foundation also provides scholarships toapproximately 550 local students at 27 universities in eight countries, including China, Vietnam
and Myanmar.

36

Corporate Review 2010 Mitsubishi UFJ Financial Group• Next Generation Leaders Training Program for Asia
Since fiscal 2008, MUFG has joined with the Organization for Industrial, Spiritual, and Cultural
Advancement (OISCA) to conduct the Next Generation Leaders Training Program for Asia. The
program invites youth from developing countries in Asia for one yearof training in management and organic agricultural technology, sothey can become leaders when they return to their countries. In fiscal
2008 and 2009, a total of 20 trainees successfully completed their
one year of training and returned home. Since returning to theirhome countries, these future leaders have begun activities towards
realizing their dreams, making use of the knowledge they gained during the training.
Next generation training for Asia

• Activities by Overseas Offices
Based on its policy of encouraging community-centric, employee participation-based activities
even overseas, MUFG is working to contribute to the development of local communities.
In the United States, MUFG participates in the March of Dimes/March For Babies, a nationwide
charity walk that raises money to help prevent premature births and protect the health of
expectant mothers. In April 2009, employees of BTMU, MUTB, and MUS (USA) and their families combined in a 350-person MUFG team to participate in the event in New York. A total of$59,348 was donated, including matching funds from BTMU and MUTB.
In January 2010, a total of 200 BTMU, MUTB, and MUS (Hong Kong) staff participated in
the “Walk for Millions” event organized by the Community Chest of Hong Kong, and donated
HK $232,300.
At the BTMU Dusseldorf branch in Germany, employees participated in the annual citizens’
clean-up campaign organized by the city as part of its efforts to create a litter-free city. In fiscal
2009, more than 80 employees and their families gathered to clean Hofgarten Park.
At the BTMU Brussels branch in Belgium, employees collect old clothing, towels, and otheritems, and donate them to social welfare facilities. A temporary blood donor station was also
set up in the branch by the Belgian Red Cross Society, and many employees participated ingiving blood.
At the BTMU London branch in England, electrical power used in the office now comes froma renewable energy source, as part of initiatives
to reduce emissions of greenhouse gases.

The March of Dimes/March for Babies

Mitsubishi UFJ Financial Group Corporate Review 201037

Corporate Governance

MUFG regards the establishment and operationof properly functioning corporate governance systems as an important management issue.

• Oversight from the Board of Corporate
Auditors
The Board of Corporate Auditors is made up of
five members, with the three outside corporate

Corporate Governance Framework at Holding
Company
The holding company has established a corporate
governance structure of high integrity and transparency with an emphasis on incorporating external perspectives, mainly through the establishment of a Board of Corporate Auditors and a

auditors comprising a majority and each satisfying
the independence requirements of stock exchanges. The outside members help to improve thequality of auditing activities by corporate auditors
by expressing opinions at meetings of the Boardof Corporate Auditors from an independent andobjective viewpoint.

system of voluntary committees. Ongoing efforts
are being made to refine this structure.

• External support from the Advisory Board
Composed of external experts, the Advisory• Outside directors and voluntarycommittees
Three members of the 16-member Board of
Directors are outside directors who satisfy the
independence requirements of stock exchanges.

Board convenes regularly and reports to the
Executive Committee. This body provides valuable
input to senior management by actively discussing group-wide management issues from an
independent standpoint.

This ensures that the outside directors provide
advice on management as a whole, and checks toGroup Corporate Governance Frameworkstrengthen oversight of directors who have oper-

Cross-Group governance frameworks covering

ational responsibilities. Outside directors help torisk management, compliance and internal audits

maintain and enhance corporate governancebolster the governance of MUFG and aid thefunctions by overseeing the operational execution

holding company in supervising group businessduties of directors at board meetings.

activities. The holding company assigns directors

The holding company has also established twoto The Bank of Tokyo-Mitsubishi UFJ, Mitsubishi

voluntary committees that report to the Board of

UFJ Trust and Banking and Mitsubishi UFJ

Directors. Outside directors chair the Internal

Securities Holdings to provide additional oversight

Audit and Compliance Committee, and theof the operations of these major subsidiaries.

Nomination and Compensation Committee.
Outside members constitute a majority of each ofthese committees.

38

Corporate Review 2010 Mitsubishi UFJ Financial GroupIn addition, The Bank of Tokyo-Mitsubishi UFJ,subsidiaries has also voluntarily established an au-

Mitsubishi UFJ Trust and Banking and Mitsubishi

dit committee that reports to their respective di-

UFJ Securities Holdings have each appointed out-

rectors. These committees are made up of a ma-side directors as a means of actively stimulating

jority of external members, including outside

objective discussion at board meetings and pro-directors and externally appointed legal or ac-

moting greater transparency. Each of these majorcounting experts.

Group Corporate Governance Structure
General Meeting of Shareholders
Corporate Auditors/Board of Corporate Auditors(3 of 5 auditors are external)

Corporate Auditors
OfficeChairman
Board of Directors(Several outside directors)

Advisory Board(External experts)

Voluntary committee
Reports andrecommendations

Internal Audit andCompliance Committee

AdviceExecutive Committee
President & CEO

Nomination andCompensation Committee

ReportVarious Committees
ReportIntegrated
Business Group

Corporate Staff
Units

Audit

Corporate Risk
Management Units

Internal Audit
DivisionInternal Audit and Compliance Committee of
The Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Trust and Banking
and Mitsubishi UFJ Securities Holdings

Includes external members

Overview of Internal Audit and Compliance Committee and Nomination and Compensation Committee(As of June 29, 2010)

Scope of committee deliberations

Members

Internal Audit andCompliance Committee

Matters related to internal audits and statutorycompliance at the holding company and groupsubsidiaries

Chairman: Ryuji Araki (Outside director)
Kazuhiro Watanabe (Outside director)
Koji Tajika (External expert/certified public accountant)
Yoshinari Tsutsumi (External expert/attorney at law)
Kinya Okauchi (Deputy Chairman and CAO, MUFG)

Nomination andCompensation Committee

Matters related to the selection of candidates for
directorships at the holding company, important
personnel affairs at the holding company andgroup subsidiaries, and remuneration for senior
management of the holding company and groupsubsidiaries

Chairman: Takuma Otoshi (Outside director)
Ryuji Araki (Outside director)
Kazuhiro Watanabe (Outside director)
Katsunori Nagayasu (President & CEO, MUFG)

Advisory Board Members(As of June 29, 2010)

Kazuhito Ikeo

Naotake Okubo

Yuko Kawamoto

Professor of Economics,

Chairman,Professor, Waseda University,

Yoshihide Munekuni
Former Chairman,

Keio University

Sekisui Chemical Co., Ltd.

Graduate School of Finance,

Honda Motor Co., Ltd.

Accounting & Law

Mitsubishi UFJ Financial Group Corporate Review 201039

Group Business Management

Operational Management Framework

Business Management Indicators

MUFG has adopted a group organizational struc-

MUFG has introduced a system to monitor andture that features cross-integration along func-

allocate capital across subsidiary banks, businesstional lines to deliver timely and value-added fi-groups and segments, and between different cat-nancial products and services that address theegories of risk. Based on quantitative measure-needs of a wide range of customers. This frame-ment of the various risks faced by MUFG using in-work involves close cooperation among groupternal risk management methods, the systemcompanies and is based on an integrated businessguides the risk-weighted allocation of capitalgroup system to develop operations in line with a(economic capital) with the aim of improving theunified strategy. The holding company has estab-overall risk-return profile for MUFG and ensuring

lished integrated business groups to focus onthat the proper allocation of economic resources

MUFG’s three core businesses of Retail, Corporatedelivers returns that are commensurate with risk.

and Trust Assets. This framework aims to ensure

Under this system, the holding company formu-that MUFG can address customer needs withlates a capital allocation plan for each six-month

speed and accuracy.

period based on discussions with subsidiarybanks. In addition, MUFG has introduced business

Integrated Business Group Systemmanagement indicators (cost of capital-adjusted
return and consolidated operating ROE, etc.) forBank ofTokyo-Mitsubishi UFJ

Mitsubishi UFJ
Trust and Banking

Mitsubishi UFJ
Securities Holdings

Card business andleasing, etc.

Retail Banking Businessthe purpose of assessing and managing riskweighted profitability and capital productivity,
and applies some of these indicators to perfor-

Corporate Banking Businessmance assessments.

Trust Assets Business

Overview of Internal Capital Adequacy
Assessment Process
The holding company assesses its internal capital
Glossary of terms:

adequacy from two perspectives, namely regula-● Cost of capital-adjusted return is a

● Consolidated operating ROE is apost-tax performance indicator (derived

post-tax performance indicator (derived

from Japanese GAAP data) equal to seg-from Japanese GAAP data) equal totions, and its own economic capital based onment net income minus the cost of capital.

segment net income divided by the val-internal risk assessment.

MUFG aims to build corporate value overue of allocated capital. MUFG pursues

the medium and long term by assessing thehigher returns on capital by seeking toreturns from business development after

maximize the returns generated fromfully taking into account the cost of capital

allocated capital at each business group(the expected return for shareholders).

and segment.

tory capital based on capital adequacy regula-Internal capital adequacy assessment based on
regulatory capital is carried out by using a capital
adequacy ratio and Tier 1 ratio calculated fromrisk-weighted assets and capital which are stipu-*Segment net income = net operating profits + net profits from capital investment– credit costs + other net non-recurring gains (losses) – income taxes (all of theforegoing are non-consolidated) + profits (losses) from investments in affiliates + net
income of other subsidiaries

40

Corporate Review 2010 Mitsubishi UFJ Financial Group

lated in the capital adequacy regulation. The

Management of Allocated CapitalMulti-risk quantification
Monitoring of risk-return profile

Tier 1
capitalEconomic
capitalEconomic capital

ReturnEconomic capital

ReturnEconomic capital

ReturnRisk controlled within scope ofTier 1 capital

Assessment of risk-weighted profitability
and capital productivity
Application to performance assesment

Economic capital allocated acrossbanks, business groups and segments
Capital allocation plan

Summation acrossbanks, business groups
and segments

Cost of capital-adjusted return, consolidated operating ROE

Risk assumed within
scope ofcapital allocation plan

holding company compares these figures with its

available for sale, is compared with Tier 1 capitaltargets—a capital ratio of 12% and Tier 1 ratio ofto assess internal capital adequacy, and the capi-

8%—when formulating its internal risk-weighted

tal allocation plan is then formulated. Thereafter,

assets plan and capital plan. In addition, the capi-

the use of allocated capital is regularly checked

tal adequacy ratio and Tier 1 ratio are regularly cal-against the plan during the fiscal year, including

culated and reported to management during therisk assessment with a 99.9% confidence interval,

fiscal year in order to monitor internal capitaland compared with Tier 1 capital to provide on-adequacy.

going monitoring of internal capital adequacy.

Internal capital adequacy assessment based on

When drawing up a regulatory capital plan

economic capital is carried out within the frame-and economic capital plan, both methods under-

work of the capital allocation system, which allo-go stress testing. The plans for regulatory andcates capital in accordance with credit risk,

economic capital are formulated following de-strategic equity portfolio risk, market risk, andtailed analysis of the impact of the stress testing

operational risk. Included within these risks areon capital and risk, and assessment of internal

credit concentration risk and interest rate risk incapital adequacy.

the banking book as stipulated by the Second

The major banking subsidiaries, namely the

Pillar of Basel II. Each risk is calculated using the

Bank of Tokyo-Mitsubishi UFJ and Mitsubishi UFJ

basic assumptions of a confidence interval of

Trust and Banking, utilize a similar framework to

99% and a holding period of one year. The total

assess their internal capital adequacy.

risk amount, taking into account the effect of diversification and net unrealized gains on securities

Mitsubishi UFJ Financial Group Corporate Review 2010

41

Risk Management

Numerous changes in our business environment

value. Based on this policy, we identify, measure,

have occurred as a result of globalization of thecontrol and monitor a wide variety of risks so as

financial industry, the advancement of informa-

to achieve a stable balance between earnings andtion technology and changes in economic condi-

risks. We undertake risk management to create

tions. We aim to be a global and comprehensive

an appropriate capital structure and to achievefinancial group encompassing leading commercial

optimal allocation of resources.

and trust banks, and securities firms in Japan. Risk
management plays an increasingly important roleas the risks faced by financial groups such as us
increase in scope and variety.
We identify various risks arising from businesses based on uniform criteria, and implement integrated risk management to ensure a stronger

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

financial condition and to maximize shareholder

42Type of Risk

Definition

Credit Risk

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

Market Risk

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

Liquidity Risk

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

Operational Risk

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

Operations Risk

The risk of incurring loss that might be caused by negligence of correct operational
processing, or by incidents or misconduct by either officers or staff, as well as risks similar
to this risk.

Information
Asset Risk

The risk of loss caused by loss, alteration, falsification or leakage of information, or by
destruction, disruption, errors or misuse of information systems, as well as risks similar tothis risk.

Reputation
Risk

The risk of loss due to deterioration in reputation as a consequence of the spread ofrumors among customers or in the market, or as a consequence of inadequate response to
the circumstance by MUFG, as well as risks similar to this risk.

Corporate Review 2010 Mitsubishi UFJ Financial GroupRisk Management System

quantitative perspectives. The board of directors

We have adopted an integrated risk management

determines risk management policies for various

system to promote close cooperation among thetypes of risk based on the discussions held byholding company and group companies. The hold-these committees.

ing company and the major subsidiaries (which in-

The holding company seeks to enhance group-

clude The Bank of Tokyo-Mitsubishi UFJ, Ltd., orwide risk identification, to integrate and improve

BTMU, Mit subishi U FJ Trust and Banking

the Group’s risk management system and related

Corporation, or MUTB, and Mitsubishi UFJ

methods, to maintain asset quality, and to elimi-

Securities Holdings Co., Ltd., or MUSHD) each ap-

nate concentrations of specific risks. Group-wide

point a Chief Risk Management Officer and estab-risk management policy is determined at the hold-lish an independent risk management division. At

ing company level and each group company im-

the Risk Management Committees, our manage-

plements and improves its own risk management

ment members discuss and dynamically manage

system based on this policy.

various types of risks from both qualitative andRisk Management

Holding company (Mitsubishi UFJ Financial Group)

SystemBoard of Directors
Corporate Risk Management
Committee

Executive Committee

Managemant Planning
Committee(includes ALM)

(includes crisis management)Group Credit Management
Committee

Corporate Risk Management
Division(Coordinates risk management)

Market Risk, Liquidity Risk,
Operational Risk,
Operations Risk,
Information Asset Risk

Credit & Investment
Management Division

Credit Risk

Public Relations Division

Reputation Risk

Establish fundamental
policyGuidance and advice

Discuss andreportDiscuss andreportGroup Companies
Mitsubishi UFJ Trust and Banking

Bank of Tokyo-Mitsubishi UFJ

Board of Directors

Executive Committee

ALM Comm ttee

Corporate Risk Management
Division

Market Risk,
Liquidity Risk,
Operational Risk

Credit and Investment
Council(includes crisis management)

Credit & Investment
Management Committee(Coordinates risk management)

Credit Policy & Planning
Division

Credit Risk

Operational Risk
Management Committee

Transaction Services
Division

Settlement Risk

Operations Services
Planning Division

Operations Risk

Compliance & Legal Division,
Systems Department

Information Asset Risk

Corporate Administration
Division

Tangible Asset Risk

Human Resources Division

Personnel Risk

Compliance & Legal Division

Legal Risk

Public Relations Division

Reputation Risk

Information Security
Management Committee

Capital Management
Committee
Internal Administration
Enhancement Committee
Crisis Management
Committee

Corporate Risk Management
Division(Coordinates risk management)

ALM Council

Market Risk, Liquidity Risk,
Operational Risk,
Information Asset Risk

Credit Risk Management
Division

Credit Risk

Operations Planning
Division

Operations Risk

Corporate Administration
Division

Tangible Asset Risk

Personnel Division

Personnel Risk

Compliance & Legal Division

Legal Risk

Corporate Planning Division

Reputation Risk

Other Subsidiaries

Credit Committee

Executive Committee

Mitsubishi UFJ Securities Holdings

Board of Directors
Risk Management
Committee

Mitsubishi UFJ Financial Group Corporate Review 201043

Business Continuity Management

regulations. In addition, with respect to credit risk

Based on a clear critical response rationale andand operational risk, as compared to the previous

associated decision-making criteria, we have de-framework, Basel II provides more risk-sensitive ap-

veloped systems to ensure that operations are notproaches and a range of options for measuring

interrupted or can be restored to normal quickly

risks and determining the capital requirements. As

in the event of a natural disaster or system failurea result, Basel II also reflects the nature of risks at

so as to minimize any disruption to customers andeach bank more closely. Basel II has been appliedmarkets. A crisis management team within the

to Japanese banks since March 31, 2007.

holding company is the central coordinating body

Based on the principles of Basel II, MUFG hasin the event of any emergency. Based on informa-

adopted the Advanced Internal Ratings-Basedtion collected from crisis management personnel

Approach to calculate its capital requirements forat the major subsidiaries, this central body would

credit risk since March 31, 2009. The Standardized

assess the overall impact of a crisis on the Group’s

Approach is used for some subsidiaries that arebusiness and establish task forces that could im-considered to be immaterial to our overall capital

plement all countermeasures to restore full opera-

requirements and a few subsidiaries have adopted

tions. We have business continuity plans to main-a phased rollout of the internal ratings-based ap-

tain continuous operational viability in the event

proach. MUFG has adopted the Standardizedof natural disasters, system failures and otherApproach to calculate its capital requirements fortypes of emergencies. Regular training drills areoperational risk. As for market risk, MUFG has ad-

conducted to upgrade the practical effectiveness

opted the Internal Models Approach mainly to cal-of these systems.

culate general market risk and adopted theStandardized Method to calculate specific risk.

Implementation of Basel II
Basel II is a comprehensive regulatory framework
for ensuring the soundness and stability of the international banking system. It is based on “threepillars”: (1) minimum capital requirements, (2) the
self-regulation of financial institutions based on supervisory review process, and (3) market discipline
through the disclosure of information. The goal of
Basel II is to have these three pillars mutually reinforce each other to ensure the effectiveness of

44

Corporate Review 2010 Mitsubishi UFJ Financial Group

The Basel Committee of Banking Supervision
has proposed revisions to Basel II in response to therecent global financial crisis. We intend to continue
to monitor discussions and other developments
relating to the proposed revisions.

Credit Risk Management
Credit risk is the risk of losses due to deterioration

Under our credit risk management system,in the financial condition of a borrower. We haveeach major banking subsidiary manages its respec-

established risk management systems to maintaintive credit risk on a consolidated and global basis,

asset quality, manage credit risk exposure andwhile the holding company oversees and manages

achieve earnings commensurate with risk.

credit risk on an overall group-wide basis. The

Our major banking subsidiaries (which include

holding company also convenes regular commit-

BTMU and MUTB) apply a uniform credit ratingtee meetings to monitor credit risk management

system for asset evaluation and assessment, loan

at banking subsidiaries and to issue guidance

pricing, and quantitative measurement of credit

where necessary.

risk. This system also underpins the calculation ofEach major banking subsidiary has in place acapital requirements and management of credit

system of checks and balances in which a credit

portfolios. We continually seek to upgrade credit

administration section that is independent of theportfolio management, or CPM, expertise tobusiness promotion sections screens individual

achieve an improved risk-adjusted return basedtransactions and manages the extension of credit.

on the Group’s credit portfolio status and flexible

At the management level, regular meetings ofresponse capability to economic and otherCredit & Investment Management Committee andexternal changes.

related deliberative bodies ensure full discussion ofimportant matters related to credit risk manage-

Credit Risk Management System
The credit portfolios of our major banking subsidiaries are monitored and assessed on a regularbasis by the holding company to maintain andment. Besides such checks and balances and internal oversight systems, credit examination sections
also undertake credit testing and evaluation to ensure appropriate credit risk management.

improve asset quality. A uniform credit rating andasset evaluation and assessment system is used toensure timely and proper evaluation of all credit

Management System of the Major Banking Subsidiaries

risks.

Board of Directors/Executive Comm ttee
Credit & Investment Management Committee/related deliberative bodies
Decisions regarding
important matters
Delegation of
authority

Discussion ofimportant matters
Transaction report

Credit administration
sections
Creditscreening andmanagement
Business promotion
sections

Monitoring by
MUFG Credit Management
Committee

Regular report

Quantitative risk monitoring

Credit risk management
sections

Credit testingand evaluation
Credit examination
sections

Mitsubishi UFJ Financial Group Corporate Review 201045

Credit Rating System
MUFG and its major banking subsidiaries have in-riodically to take into account relevant political

troduced an integrated credit rating system toand economic factors, including foreign currency

evaluate credit risk. The credit rating system con-availability.

sists primarily of borrower rating, facility risk rat-

Risk exposure for small retail loans, such asing, structured finance rating and asset securitiza-

residential mortgage loans, is managed by group-

tion rating.

ing loans into various pools and assigning ratings

Country risk is also rated on a uniform group-at the pool level.

wide basis. Our country risk rating is reviewed pe-

Definitions of Borrower Ratings
Borrower
rating46

Definition

1~2

Borrower capacity to meet financial obligations deemed high and stable

3~5

Borrower capacity to meet financial obligations deemed free of problems

6~8

Borrower capacity to meet short-term financial obligations deemed free ofproblems

9

Borrower capacity to meet financial obligations deemed slightly insufficient

10~12

Close monitoring of borrower required due to one or more of following conditions:[1] Borrower who has problems meeting financial obligations (e.g. principal
repayments or interest payments in arrears)[2] Borrower whose business performance is poor or unsteady, or in an
unfavorable financial condition[3] Borrower who has problems with loan conditions (e.g. interest rates havebeen reduced or deferred)

Borrower
category

NormalNormalclaims

10

Causes for concern identified in borrower’s business management necessitate
ongoing monitoring, despite only minor problems or significant ongoing
improvement

11

Emergence of serious causes for concern in borrower’s business management
signal need for caution in debt repayment due to major problems or requiring
protracted resolution

12

Borrower meeting the definition of rating 10 or 11 and holds restructured
loan, or borrower with loan contractually past due 90 days or more due toparticular reasons, such as an inheritance-related issue

13

Borrower with respect to whom losses are expected due to major debt
repayment problems (that is, although not yet bankrupt, borrower deemed
likely to become bankrupt due to financial difficulties and failure to makesignificant progress with restructuring plans)

Likely to
becomebankrupt

14

Although not legally or officially bankrupt, borrower in virtual bankruptcy
due to serious financial difficulties, without any realistic prospect of businessrecovery

Virtuallybankrupt

15

Borrower legally or officially bankrupt and subject to specific procedures,such as legal liquidation/business suspension/winding up of business/private
liquidation

Bankrupt

Corporate Review 2010 Mitsubishi UFJ Financial GroupNPL
Classifications
under FRL

Close
watch

Claims under close
observation
Doubtful

claimsClaims overbankrupt or
virtuallybankrupt
borrowers• Borrower rating

The system is used to conduct write-offs and al-

Our borrower rating classifies borrowers into 15

locate allowances against credit risk in a timely andgrades based on evaluations of their expected debt-

adequate manner.

service capability over the next three to five years.
Quantitative Analysis of Credit Risk
• Facility risk rating
Facility risk rating is used to evaluate and classify
the quality of individual credit facilities, including
guarantees and collateral. Ratings are assigned byquantitatively measuring the estimated loss rate ofa facility in the event of a default.
• Structured finance rating and asset securitization rating

MUFG and its major banking subsidiaries manage
credit risk by monitoring credit amount and expected losses, and run simulations based on internal models to estimate the maximum amount ofcredit risk. These models are used for internalmanagement purposes, including loan pricing andmeasuring economic capital.
When quantifying credit risk amounts using

These ratings are also used to evaluate and classify

the internal models, MUFG and its major banking

the quality of individual credit facilities, including

subsidiaries consider various parameters, includ-guarantees and collateral, and focus on the struc-ing, probability of default, or PD, loss given de-ture, including the applicable credit period, of eachfault, or LGD, and exposure at default, or EAD,

credit facility. In evaluating the debt service potential

used in their borrower ratings, facility risk ratingsof a credit facility, we scrutinize its underlying struc-and pool assignments as well as any credit con-ture to determine the likelihood of the planned fu-

centration risk in particular borrower groups orture cash flows being achieved.

industry sectors. MUFG and its major banking• Pool assignment
Each major banking subsidiary has its own system

subsidiaries also share credit portfolio data in appropriate cases.

for pooling and rating small retail loans designed
to reflect the risk profile of its loan portfolios.

Glossary of terms:● PD (Probability of Default)● EAD (Exposure at Default)

Asset Evaluation and Assessment System

The estimated default rate or the prob-

The amount expressed in relevant

The asset evaluation and assessment system isability that the borrower will default.

currency of exposure to loss at time

The definition of default is nonperfor-of default, or in other words, the es-

mance in payments of interest or prin-

timated amount of exposure to loss

cipal in the narrow sense; however, in

on loan when a borrower defaults

quantifying credit risk, a wider defini-due to bankruptcy or other reasons.

used to classify assets held by financial institutions
according to the probability of collection and therisk of any impairment in value based on borrower

tion of default is used.

classifications consistent with the borrower ratings● LGD (Loss Given Default)

and the status of collateral, guarantees, and other

The percentage loss at time of de-factors.

fault, or in other words, the estimated percentage of loss on loan whena borrower defaults due to bankruptcy or other reasons.

Mitsubishi UFJ Financial Group Corporate Review 201047

Loan Portfolio Management

Continuous CPM Improvement

We aim to achieve and maintain levels of earnings

With the prevalence of securitized products andcommensurate with credit risk exposure. Products

credit derivatives in global markets, we seek toare priced to take into account expected losses,

supplement conventional CPM techniques withbased on the internal credit ratings.

advanced methods based on the use of such

We assess and monitor loan amounts andmarket-based instruments.

credit exposure by credit rating, industry and re-Through credit risk quantification and portfolio

gion. Portfolios are appropriately managed to lim-

management, we aim to improve the risk returnit concentrations of risk in specific categories by

profile of the Group’s credit portfolio, using fi-

establishing Large Credit Guidelines.

nancial markets to rebalance credit portfolios in a

To manage country risk, we have establishedspecific credit ceilings by country. These ceilings

dynamic and active manner based on an accurate
assessment of credit risk.

are reviewed when there is any material change
in a country’s credit standing, in addition to regular review.

Credit Portfolio Management (CPM) Framework

Implementation of Basel II

Risk-based earnings management

Risk-based pricing management

Asset evaluation and assessment

48

Market-based advanced CPM

Corporate Review 2010 Mitsubishi UFJ Financial Group

Appropriate write-offs
and allowance

Execute business strategies

Objective credit rating system

Risk quantification

Quantitative monitoring of credit risk
Portfolio risk concentration checks

Risk Management of Strategic Equity Portfolio
Strategic equity investment risk is the risk of loss

approximately ¥4.2 billion when TOPIX indexcaused by a decline in the prices of our equity

moves one point in either direction.

investments.

We seek to manage and reduce strategic equity

We use quantitative analysis to manage theportfolio risk based on such types of simulation.

risks associated with the portfolio of equities held

The aim is to keep this risk at appropriate levels

for strategic purposes. According to internal

compared with Tier 1 capital while generating

calculations, the market value of our strategically

returns commensurate with the degree of risk

held (Tokyo Stock Exchange-listed) stocks as of

exposure.

March 31, 2010 was subject to a variation ofMarket Risk Management
Market risk is the risk that the value of our assets

At each of the major subsidiaries, checks andand liabilities could be adversely affected bybalances are maintained through a system inchanges in market variables such as interest rates,

which back and middle offices operate indepen-

securities prices, or foreign exchange rates.

dently from front offices. In addition, separate

Management of market risk at MUFG aims toAsset-Liability Management, or ALM, Committee,

control related risk exposure across the GroupALM Council and Risk Management Meetings arewhile ensuring that earnings are commensurate

held at each of the major subsidiaries every

with levels of risk.

month to deliberate important matters related tomarket risk and control.

Market Risk Management System
We have adopted an integrated system to manage market risk from its trading and non-trading

Management System of Our Major Subsidiaries

activities. The holding company monitors groupBoard of Directors / Executive Committee
ALM Committee / ALM Council / Risk Management Meetingwide market risk, while each of the major subsidiaries manages its market risks on a consolidated

Delegation of
authorityand global basis.

Trading result
reportFront Office
Quantitative risk monitoring

ReportMiddle Office(Market risk management
departments)

Confirmation of contracts
and agreements
Back Office

Mitsubishi UFJ Financial Group Corporate Review 2010

49

The holding company and the major subsidiar-At the business unit levels in the major subsidiar-ies allocate economic capital commensurate withies, the market risks on their marketable assets

levels of market risk and determined within theand liabilities, such as interest rate risk and for-scope of their capital bases. The major subsidiar-eign exchange rate risk, are controlled by entering

ies have established quantitative limits relating to

into various hedging transactions using market-

market risk based on their allocated economic

able securities and derivatives.

capital. In addition, in order to keep losses within

These market risk management activities arepredetermined limits, the major subsidiaries have

performed in accordance with the predeterminedalso set limits for the maximum amount of losses

rules and procedures. The internal auditors as wellarising from market activities.

as independent accounting auditors regularly verify the appropriateness of the management con-Market Risk Management and Control
At the holding company and the major subsidiar-trols over these activities and the risk evaluation
models adopted.

ies, market risk exposure is reported to the Chief
Risk Management Officers on a daily basis. At theMarket Risk Measurement Modelholding company, the Chief Risk Management

Market risks consist of general risks and specific

Officer monitors market risk exposure across therisks. General market risks result from changes inGroup as well as the major subsidiaries’ control

entire markets, while specific risks relate toover their quantitative limits for market risk andchanges in the prices of individual stocks andlosses. Meanwhile, the Chief Risk Management

bonds which are independent of the overall direc-

Officers at the major subsidiaries monitor theirtion of the market. New methodology to measureown market risk exposure and their control overmarket risk more promptly has been implemented

their quantitative limits for market risk and losses.

since October 2009. Relevant divisions examined

In addition, various analyses on risk profiles, in-a magnitude of this new methodology and decid-

cluding stress testing, are conducted and reported

ed not to make a comment at this point.

to the Executive Committees and the Corporate

To measure market risks, MUFG uses the VaR

Risk Management Committees on a regular basis.

method which estimates changes in the market
value of portfolios within a certain period by statistically analyzing past market data. Since the daily
variation in market risk is significantly greater thanthat in other types of risk, MUFG measures andmanages market risk using VaR on a daily basis.

50

Corporate Review 2010 Mitsubishi UFJ Financial GroupMarket risk for trading and non-trading activi-

For the purpose of internally evaluating capitalties is measured using a uniform market risk mea-adequacy on an economic capital basis in terms

surement model. The principal model used forof market risk, we use this market risk measure-these activities is historical simulation (HS) model

ment model to calculate risk amounts based on a(holding period, 10 business days; confidence in-holding period of one year and a confidence in-terval, 99%; and observation period, 701 businessterval of 99%.

days). The HS model calculates VaR amounts by

Monitoring and managing our sensitivity to in-estimating the profit and loss on the current port-terest rate fluctuations is the key to managing mar-folio by applying actual fluctuations in market

ket risk in MUFG’s non-trading activities. The major

rates and prices over a fixed period in the past.

banking subsidiaries take the following approachThis method is designed to capture certain statis-

to measuring risks concerning core deposits, loantically infrequent movements, such as a fat tail,prepayments and early deposit withdrawals.

and accounts for the characteristics of financial

To measure interest rate risk relating to depos-

i n s t r u m e n t s w i t h n o n - l i n e a r b e h a v i o r.

its without contract-based fixed maturities, theIndependent auditors, who were engaged only inamount of “core deposits” is calculated through athe particular audit, verified the accuracy and ap-

statistical analysis based on deposit balance trend

propriateness of this internal market risk model.

data and the outlook for interest rates on depos-

The holding company and banking subsidiaries

its, business decisions, and other factors. The

use the HS model to calculate Basel II regulatory

amount of “core deposit” is categorized into vari-capital adequacy ratios.

ous groups of maturity terms of up to five years

In calculating VaR using the HS method, we(2.5 years on average) to recognize interest rate

have implemented an integrated market risk mea-

risk. The calculation assumptions and methods tosurement system throughout the Group. Our ma-

determine the amount of core deposits and ma-

jor subsidiaries calculate their VaR based on theturity term categorization are regularly reviewed.

risk and market data prepared by the information

Meanwhile, deposits and loans with contract-systems of their front offices and other depart-based maturities are sometimes cancelled or re-ments. The major subsidiaries provide this risk data

paid before their maturity dates. To measure in-to the holding company, which calculates overall

terest rate risk for these deposits and loans, we

VaR taking into account the diversification effectreflect these early termination events mainly byamong all portfolios of the major subsidiaries.

applying early termination rates calculated basedon a statistical analysis of historical repayment
and cancellation data together with historicalmarket interest rate data.

Mitsubishi UFJ Financial Group Corporate Review 2010

51

Stress Testing
We have adopted an HS-VaR model, which calcu-

risk by applying various scenarios. For example,

lates a VaR as a statistically possible amount ofdaily stress testing at the holding company esti-

losses in a fixed confidence interval based on his-mates maximum potential losses in each market

torical market volatility. However, the HS-VaR

on the current trading portfolio based on themodel is not designed to capture certain abnor-

worst ten-day historical volatility recorded during

mal market fluctuations. In order to complement

the VaR observation period of 701 days.

this weakness of the model, MUFG conducts

In light of increased market volatility since theportfolio stress testing to measure potential losses

second half of 2007, we have implemented addi-

using a variety of scenarios.

tional tests under various stress scenarios to sup-The holding company and the major subsidiaries conduct stress testing on a daily, monthly andplement VaR and are applying the test results torisk management.

quarterly basis to monitor their overall portfolio

Liquidity Risk Management
Liquidity risk is the risk of incurring losses if amanagement offices of the major subsidiaries andpoor financial position hampers the ability to

the holding company exchange information andmeet funding requirements, or necessitates funddata on liquidity risk even at the Normal stage. At

procurement at interest rates markedly higher

higher alert stages, we centralize information

than normal.

about liquidity risk and discuss issues relating to

Our major subsidiaries maintain appropriate li-group-wide liquidity control actions among groupquidity in both Japanese yen and foreign curren-

companies, if necessary. We have also establishedcies by managing their funding sources anda system for liaison and consultation on funding

mechanism, such as liquidity gap, liquidity-supply-in preparation for contingency, such as natural di-ing products such as commitment lines, and buf-

sasters, wars and terrorist attacks. The holding

fer assets.

company and the major subsidiaries conduct

We have established a group-wide system forgroup-wide contingency preparedness drills on a

managing liquidity risk by categorizing the risk inregular basis to ensure smooth implementation in

the following three stages: Normal, With-

the event of an emergency.

Concern, and Critical. The front offices and risk

52

Corporate Review 2010 Mitsubishi UFJ Financial GroupOperational Risk Management
Operational risk refers to the risk of loss caused

requires the board of directors and the Executive

by either internal control issues, such as inade-Committee to formulate fundamental principles

quate operational processes or misconduct, sys-of operational risk management and establish andtem failures, or external factors such as a natural

maintain an appropriate risk management system.

disaster. The term includes a broad range of risks

The Chief Risk Management Officer is responsiblethat could lead to losses, including operations

for recognizing, evaluating, and appropriately

risk, information asset risk, reputation risk, legal

managing operational risk in accordance with therisk, and tangible asset risk. These risks that com-

fundamental principles formulated by the board

prise operational risk are referred to as sub-cate-of directors and the Executive Committee. A divi-gory risks.

sion in charge of operational risk management

MUFG’s board of directors has approved themust be established that is independent of busi-

MUFG Operational Risk Management Policy as aness promotion sections to manage overall opera-group-wide policy for managing operational risk.

tional risk in a comprehensive manner. These fun-This policy sets forth the core principles regarding

damental principles have also been approved byoperational risk management, including the defi-

the boards of directors of the major subsidiaries,

nition of operational risk, and the risk manage-

providing a consistent framework for operational

ment system and processes. The policy alsorisk management of the Group.

Management System of Our Major Banking Subsidiaries

Board of Directors / Executive Committee
Committees regarding risk management

Reporting on risk profile

Instruction
Head OfficeandBranches

Instruction

Division in charge ofOperational Risk Management
Coordination

Reporting

Divisions in charge ofSub-category Risk Management

Mitsubishi UFJ Financial Group Corporate Review 201053

As set forth in the following diagram, we have

Operations Risk Management

established a risk management framework forOperations risk refers to the risk of loss that is at-loss data collection, control self assessment (CSA),

tributable to the actions of executives or employ-and measurement of operational risk in order toees, whether accidental or the result of neglect orappropriately identify, recognize, evaluate, mea-deliberate misconduct. The Group companies offer

sure, control, monitor and report operational risk.

a wide range of financial services, ranging fromWe have also established group-wide report-commercial banking products such as deposits, ex-

ing guidelines with respect to loss data collectionchange services and loans to trust and related ser-and its monitoring. We focus our efforts on en-vices covering pensions, securities, real estate andsuring accurate assessment of the status of opera-

securitization, as well as transfer agent services.

tional risk losses and the implementation of ap-

Cognizant of the potentially significant impact thatpropriate countermeasures, while maintaining

operations risk-related events could have in terms

databases of internal and external loss events.

of both economic losses and damage to our reputation, our banking subsidiaries continue to im-

Risk Management Framework

Identify and
Recognize

Evaluate andMeasureControl

Incident
occurredCausal analysis

Implement preventive
measures

RecordMonitoring

Prompt reportingto the management
and relevantsupervisors

Major incidents and misconduct

Internal loss data

Monitor andReportCreate potential loss
scenario

External loss data
Risk measurement

Allocate economic capital tobusiness units/subsidiaries

Risk evaluation and management through Control Self-Assessment

54

Corporate Review 2010 Mitsubishi UFJ Financial Group

Monitoring of
economic capitalprove their management systems to create and ap-

the establishment of internal procedures, training

ply appropriate operations risk-related controls.

courses designed for all staff, and the implemen-

Specific ongoing measures to reduce operations

tation of measures to ensure stable IT systems

risk include the development of databases to man-control. We have also formulated the Personalage, analyze and prevent the recurrence of relatedInformation Protection Policy as the basis for on-

loss events; efforts to tighten controls over admin-going programs to protect the confidentiality of

istrative procedures and related operating authori-personal information.

ty, while striving to improve human resources

Systems planning, development and operations

management; investments in systems to improve

include appropriate design and extensive testing

the efficiency of administrative operations; andphases to ensure that systems are designed toprograms to expand and upgrade internal auditing

help prevent failures while providing sufficientand operational guidance systems.

safeguards for the security of personal informa-

Senior management receives regular reports ontion. The status of the development of any mis-

the status of our businesses from an operations

sion-critical IT systems is reported regularly to se-risk management perspective. We work to pro-nior management. We have developed disastermote the sharing within the Group of information

countermeasures systems and have also been in-and expertise concerning any operational incidents

vesting in duplication of the Group’s IT infrastruc-and the measures implemented to prevent any re-ture to minimize damage in the event of any sys-

currence.

tem failure. Emergency drills are conducted toEfforts to upgrade the management of opera-

help increase staff preparedness.

tions risk continue with the aim of providing ourWith the aim of preventing any recurrence, wecustomers with a variety of high-quality services.

also work to promote sharing of information
within the Group related to the causes of any loss

Information Asset Risk Management

or leakage of information, or system failure.

Information asset risk refers to the risk of loss
caused by loss, alteration, falsification or leakage
of information, or by destruction, disruption, errors or misuse of information systems, as well as
risks similar to this risk. In order to ensure proper
handling of information and prevent loss or leakage of information, our major banking subsidiaries strive to better manage and reduce such risks
through the appointment of managers with specific responsibilities for information security issues,

Mitsubishi UFJ Financial Group Corporate Review 201055

Compliance

Basic Policy
The MUFG Group’s policy is to strictly observe

culture in which we act with integrity and fairness

laws, regulations and internal rules, and conduct

in conformity with these guidelines.

its business in a fair, trustworthy and highly trans-

Despite these measures, some of our Group

parent manner based on the Group’s manage-

companies have recently received administrative

ment philosophy of obtaining the trust and confi-

orders from government authorities in Japan anddence of society as a whole. Furthermore, weabroad. We view these actions with the deepest

have established an ethical framework and code

concern. We continue to work to ensure an ap-of conduct as the basic ethical guidelines for the

propriate compliance structure in Japan andGroup’s directors and employees. We have ex-abroad across the MUFG Group to enable soundpressed our commitment to building a corporate

and appropriate business management.

■

Ethical Framework
We, the directors and employees of MUFG, will comply with this Ethical Framework and Code of
Conduct as the basis of our daily work, seeking to put into practice the management philosophy ofour global comprehensive financial group and to build a corporate culture in which we act withintegrity and fairness.
1. Establishment of trust
We will remain keenly aware of the Group’s social responsibilities and public mission and will exercise care and responsibility in the handling of customer and other information. By conducting soundand appropriate business operations and disclosing corporate information in a timely and appropriate manner we will seek to establish enduring public trust in the Group.
2. Putting customers first
We will always consider our customers, and through close communication will endeavor to satisfy
them and gain their support by providing financial services that best meet their needs.
3. Strict observance of laws, regulations and internal rules
We will strictly observe applicable laws, regulations and internal rules, and will conduct our businessin a fair and trustworthy manner that conforms to societal norms. As a global comprehensive financial group we will also respect internationally accepted standards.
4. Respect for human rights and the environment
We will respect the character and individuality of others, work to maintain harmony with society, andplace due importance on the protection of the global environment that belongs to all mankind.
5. Disavowal of anti-social elements
We will stand resolutely against any anti-social elements that threaten public order and safety.

56

Corporate Review 2010 Mitsubishi UFJ Financial Group

Compliance Framework

CCO of Holding Company

Management and coordination of compliance-

Directors responsible for compliance at the hold-related matters are the responsibility of separate

ing company and the major subsidiaries havecompliance management divisions established atbeen named the CCOs of their respective compa-

the holding company and the major subsidiaries.

nies. The CCOs of the major subsidiaries have also

Each compliance management division formulates

been appointed as the deputy CCOs of the hold-compliance programs and organizes training

ing company to assist the CCO of the holding

courses to promote compliance, and regularly re-company. This system promotes the prompt re-ports to each company’s board of directors andporting of group-wide compliance-related infor-

Executive Committee on the status of compliancemation to the holding company and also allows

activities.

the CCO of the holding company to effectively

The holding company and each major subsidiary have also established voluntary committees,

provide compliance-related guidance, advice, andinstructions to MUFG Group companies.

such as an Internal Audit and Compliance
Committee, where members from outside theGroup account for a majority, and a Compliance
Committee. Through these measures, we haveestablished a structure for deliberating key issues
related to compliance. Additionally, the holding
company has the Group Chief Compliance Officer,
or CCO, Committee which deliberates importantmatters related to compliance and compliancerelated issues for which the Group should share acommon understanding.

Group CCO Committee
A Group CCO Committee has been establishedunder the Executive Committee of the holding
company. The committee consists of the CCO of
the holding company as the committee chairman
and the CCOs of the major subsidiaries.
By timely holding meetings, the Group CCO
Committee seeks to promote greater sharing ofcompliance-related information among the MUFG
Group companies and works to strengthen theGroup’s incident prevention controls and to help
the Group companies respond to unforeseen
problems. The Committee also continues to strive
to improve compliance systems throughout theGroup.

Mitsubishi UFJ Financial Group Corporate Review 201057

Internal Reporting System and Accounting

Compliance Helpline that acts in parallel with group-

Auditing Hotline

company internal reporting systems and provides a

The major subsidiaries have established internalreporting channel for directors and employees ofreporting systems that aim to identify compliancegroup companies.

issues early so that any problems can be quickly

In addition to these internal reporting systems,

rectified. This system includes an independent

the holding company has also established an

external compliance hotline. Furthermore, theaccounting auditing hotline that provides a means toholding company has set up an MUFG Group

report any problems related to MUFG accounting.

Compliance Framework
Holding Company (MUFG)

Board of Corporate Auditors

Board of Directors

Executive Committee

Internal Audit and Compliance
Committee

Group Compliance Committee
Group CCO Committee

CCO (Chief Compliance Officer)

Compliance Management Division(Coordinates compliance issues)

Internal reporting system

Guidance, advice
and instruction

Consultation
and report

Bank of Tokyo-Mitsubishi UFJ

Mitsubishi UFJ Trust and Banking

Mitsubishi UFJ Securities HoldingsGroup Companies

58

Corporate Review 2010 Mitsubishi UFJ Financial Group

Other Subsidiaries

● MUFG Accounting Auditing Hotline

MUFG has set up an accounting auditing hotline to be used to make reports related to instancesof improper practices (violations of laws and regulations) and inappropriate practices, or of practices raising questions about such impropriety or inappropriateness, regarding accounting andinternal control or audits related to accounting in Group companies. The reporting process works
as follows, and may be carried out via letter or e-mail:Hokusei Law Office
Address: Kojimachi 4-3-4, Chiyoda-ku, Tokyoe-mail: MUFG-accounting-audit-hotline@hokusei-law.com
When reporting information please pay attention to the following:• Please include the name of the company concerned, and provide detailed information withrespect to the matter. Without detailed factual information there is a limit to how much our investigations can achieve.
• Anonymous information will be accepted.
• No information regarding the identity of the informant will be passed on to third parties without the approval of the informant him- or herself. However, this excludes instances wheredisclosure is legally mandated, or to the extent that the information is necessary for surveys orreports, when data may be passed on following the removal of the informant’s name.
• Please submit reports in either Japanese or English.
• If the informant wishes, we will endeavor to report back to the informant on the response taken
within a reasonable period of time following the receipt of specific information, but cannot
promise to do so in all instances.

Mitsubishi UFJ Financial Group Corporate Review 201059

Internal Audit

The Role of Internal Audit

In addition to having primary responsibility forInternal audit functions within MUFG seek toinitiating and preparing plans and proposals

provide independent verification of the adequacy

related to internal audits of the entire group, theand effectiveness of internal control systems. This

Internal Audit Division at the holding company

i n c l u d e s m o n i to r i n g t h e s t a t u s o f r i s kmonitors and, as necessary, guides, advises andmanagement and compliance systems, which areadministers the internal audit divisions ofcritical to the maintenance of sound andsubsidiaries and affiliated companies. The internal

appropriate business operations. Internal audit

audit divisions within the major subsidiaries

results are reported to senior management. An

conduct audits of the respective head office andadditional role of internal audit is to makebranch operations of these companies. In

suggestions to help improve or rectify any issues

addition, each of these internal audit divisionsor specific problems that are identified.

undertakes direct audits of their respective
subsidiaries, and monitors and oversees theGroup Internal Audit Framework
The board of directors at the holding company
level has instituted MUFG’s internal audit policy
to define the policy, function and organizational

separate internal audit functions establishedwithin them. This helps to evaluate and verify theadequacy and effectiveness of internal controls
within MUFG on a consolidated basis.

position of internal audits. Separate internal audit
divisions have been created within the holding

Implementing Effective and Efficient Internal

company and certain subsidiaries. Through close

Auditscooperation and collaboration among the internal

To ensure that internal audit processes use

audit divisions in each of these subsidiaries, theseavailable resources with optimal effectiveness andinternal audit divisions provide coverage for

efficiency, the internal audit divisions implement

the entire group and also support the board ofrisk-focused internal audits in which the nature

directors in monitoring and overseeing all MUFG

and magnitude of the associated risks areoperations.

considered in determining audit priorities and thefrequency and depth of internal audit activities.
The internal audit divisions ensure that audit
personnel attend key meetings, collect importantinternal control documents and access databases
to facilitate efficient off-site monitoring.

60

Corporate Review 2010 Mitsubishi UFJ Financial GroupThe Independence of Internal Audit

committees. These committees receive reports

Divisionsfrom the internal audit divisions on important

To strengthen the respective boards of directors’

matters, including the results of all internal audits

monitoring and super vision of operationaland basic policies for planning internal audits. The

execution status and to enhance thedeliberations of the internal audit and complianceindependence of the internal audit divisions, thecommittees concerning such matters are thenholding company and the major subsidiaries havereported to the respective boards of directors.

established internal audit and complianceInternal Audit
Holding Company (MUFG)

Internal Audit and Compliance Committee(Committee chairman: Outside director)

Board of Directors

Executive Committee

Reports

Audit
MUFG Each DivisionInternal Audit Division

Report s / mutual
consultation, etc.

Guidance / advice /administration, etc.

MUFG Group Companies

Mitsubishi UFJ Financial Group Corporate Review 201061

Corporate Management● Mitsubishi UFJ Financial GroupAs of June 29, 2010

Board of Directors

Kaoru Wachi

Haruhisa Yazaki

Akira Hamamoto

ChairmanTakashi Oyamada

Takami Onodera

Naoki Hori

Takamune Okihara

Ryuji Araki

Takehiko Nemoto

Atsushi Murakami

Deputy Chairman

Kazuhiro Watanabe

Masaaki Tanaka

Satoshi Takizawa

Takuma Otoshi

Takeshi Ogasawara

Hironori Kamezawa

Akira Kamiya

Saburo Araki

Fuminori Yano

Hiroshi Naruse

Kenichi Ihara

Takayuki Nakazato

Tsutomu Takasuka

Executive Officers

Hiroshi Matsuo

Kunie Okamoto

Akihiko Kagawa

Muneaki Tokunari

Yasushi Ikeda

Masaaki Yamagishi

Yukio Nakamori*Full-time

Mutsumi Matsushita

Masahiko Kato

Katsumi Hatao

Eisaku Imazato

Yasushi Marumori

Junichi Okamoto

Mikio Ikegaya

Kiyoshi Mizutani

Keiichi Riko

Takashi Saitoh

Satoshi Murabayashi

Shigeru Asai

Takahiro Yanai

Hirokuni Sakamoto

Shuzo Iwasaki

Kouji Kawahara

Masahiro Nakamura

Kouji Yoda

Kinya Okauchi
President & CEO

Corporate Auditors

Katsunori Nagayasu

Shota Yasuda*

Deputy President

Kyota Omori
Senior Managing Directors

Hiroshi Saito

Tetsuo Maeda*

Nobushige Kamei
Officers
Managing Director

Masao Hasegawa

Managing Officers

Toshiro Toyoizumi

Directors

Tatsuo Wakabayashi

Fumiyuki Akikusa

Hidekazu Fukumoto

Kazuo Takeuchi

Tatsuo Tanaka

Nobuyuki Hirano

Yuji Suzuki

Shunsuke Teraoka

Junichi Itoh

● The Bank of Tokyo-Mitsubishi UFJ

Board of Directors

Managing Directors

Corporate Auditors

Officers

ChairmanTakeshi Ogasawara

Tatsunori Imagawa*Senior Managing

Nobuo Kuroyanagi

Hitoshi Suzuki

Jun Sato*

Executive Officers

Deputy Chairman

Hidekazu Fukumoto

Mikiyasu Hiroi*

Junichi Itoh

Takehiko Nemoto

Hiroshi Sato*

Takashi Morimura

Takashi Oyamada

Tsutomu Takasuka*

Takashi Nagaoka

Hidenobu Fujii

Kotaro Muneoka

Kiyoshi Sono

Directors

Kenji Matsuo

Managing Executive

Tetsuya Nakagawa

Officers*Full-time

Masaaki Tanaka

Takamune Okihara
President

Katsunori Nagayasu
Deputy Presidents

Tatsuo Tanaka
Toshiro Toyoizumi
Nobuyuki Hirano

Hiroshi Saito
Kunio Ishihara
Teruo Ozaki

Tamotsu Kokado
Takashi Hara62

As of June 28, 2010

Corporate Review 2010 Mitsubishi UFJ Financial Group

Takashi Morisaki
Takashi Muraoka
Ichiro Hamakawa

Muneo Kurauchi

Saburo Araki

Shuzo Iwasaki

Takayoshi Futae

Kanetsugu Mike

Katsumi Hatao

Kanji Morioka

Toshihiko Goto

Masashi Oka

Satoshi Murabayashi

Akihiko Nakamura

Naoki Hori

Hirokazu Yanaoka

Eiichi Yoshikawa

Hidemitsu Otsuka

Kouji Kawahara

Takeshi Ashizaki

Koji Ikeya

Go Watanabe

Yukio Nakamori

Yasuhiro Maeda

Tadashi Kuroda

Shigeru Asai

Takashi Saitoh

Shoji Nakano

Yasushi Marumori

Masahiro Nakamura

Kei Andou

Shinichi Nishikawa

Keiichi Riko

Makoto Sone

Katsuhiko Ishizuka

Takami Onodera

Hiroshi Matsuo

Kenji Yabuta

Hironori Kamezawa

Tadachiyo Osada

Takehiko Shimamoto

Masamichi Yasuda

Masahiko Kato

Takehiko Yamana

Takahiro Yanai

Yoichi Kondo

Masato Miyachi

Executive Officers

Toshimitsu Funaoka

Kiyoshi Mizutani

Atsushi Murakami

Makoto Motooka

Naoto Hirota

Yuichi Okura

Kouji Yoda

Akihiko Kagawa

Hiroyuki Noguchi

Hiroaki Fujisue● Mitsubishi UFJ Trust and Banking

Board of Directors
Chairman

Haruya Uehara
President

Kinya Okauchi
Deputy President

Yuji Suzuki
Shunsuke Teraoka
Senior Managing Directors

As of June 28, 2010

Managing Directors

Officers

Masatoshi Kaneko

Haruhisa Yazaki

Senior Managing

Nobuyuki Takeuchi

Kenichi Ihara

Executive Officer

Kazumasa Matano

Takashi Kawasaki

Toshiaki Kajiura

Mutsumi Matsushita

Takashi Mikumo

Managing

Muneaki Tokunari

Toru Matsuda

Executive Officers

Hidenori Mizuno

Hatsuhito Kaneko

Kenichi Miyanaga

Koji Yoshida

Keiichiro Takeda

Junichi Okamoto

Nobuyoshi Matsutani

Executive Officers

Minoru Tomita

Shinya Kada

Takayuki Nakazato

Toru Hayashi

Mitsunori Matsumoto

Yasushi Sawamura

Hisashi Ito

Hiroyuki Shimizu

Hirokuni Sakamoto

Masaaki Yamagishi

Masaki Miyake

Mikio Ikegaya

Seiichiro Asano

Hiroshi Naruse

Satoshi Takizawa

Directors

Nobushige Kamei
Tadao Takashima

Taihei Yuki

Corporate Auditors

Tatsuo Wakabayashi

Tadashi Takahashi*

Yoshiyuki Hirano

Shingo Asakura*

Kaoru Wachi

Shigetsugu Nakata
Takeshi Fukuzawa
Eiji Katayama
Yoshinobu Shimizu*Full-time

Masahiro Fuse

Mitsubishi UFJ Financial Group Corporate Review 201063

Global Network
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Corporate Review 2010 Mitsubishi UFJ Financial GroupBank of Tokyo-Mitsubishi UFJ’s operations appear in black
Mitsubishi UFJ Trust and Banking in blue Mitsubishi UFJ Securities Holdings in green

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Mitsubishi UFJ Financial Group Corporate Review 201065

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352-44-51-80-1

World Trade Center, Tower D-5th Floor, Strawinskylaan 565,
1077 XX Amsterdam, The Netherlands(mailing address: P.O. Box 75682, 1070 AR, Amsterdam, The Netherlands)

31-20-5737737

ul. Emilii Plater 53, 00-113 Warszawa, Republic of Poland(mailing address: Warsaw Financial Center 19F, ul. Emilii Plater
53, 00-113 Warszawa, Republic of Poland)

48-22-520-5233

Avenida da Liberdade, 180 E-6ESQ. 1250-146 Lisboa, Portugal

351-21-351-4550

Moscow Representative Office

Building 2, Romanov per.4 Moscow 125009,
Russian Federation

7-495-797-4501

ZAO Bank of Tokyo-Mitsubishi
UFJ (Eurasia)

Building 2, Romanov per.4 Moscow 125009,
Russian Federation

7-495-225-8999

Premises 3-H, 10, A, Nevsky Prospect, Saint-Petersburg, 191186,
Russian Federation

7-812-495-4766
7-812-495-4767

Italy
Milano Branch
Kazakhstan
Almaty Representative
OfficeLuxembourg
Mitsubishi UFJ Global
Custody S.A.
Netherlands
Bank of Tokyo-Mitsubishi UFJ(Holland) N.V.
PolandBank of Tokyo-Mitsubishi UFJ(Polska) Spolka Akcyjna
Portugal
Lisbon Office
Russia(Saint-Petersburg
Representative Office)Spain
Madrid BranchJose Ortega y Gasset 29, 28006 Madrid, Spain

34-91-432-8500

Paseo de Gracia, 56, 6-C, 08007 Barcelona, Spain

34-93-494-7450

Rue du Rhone 67, 1207 Geneve, Switzerland

41-22-718-6600

Finsbury Circus House, 12-15 Finsbury Circus, London EC2M 7BT, U.K.
(mailing address: P.O. Box 280, London EC2M 7DX, U.K.)

44-20-7577-1000(Birmingham Sub-Branch)

3rd Floor, Bank House, 8 Cherry Street, Birmingham B2 5AL, U.K.

44-121-633-7953(Broadgate Sub-Branch)

6 Broadgate, London EC2M 2SX, U.K.
(mailing address: P.O. Box 280, London EC2M 7DX, U.K.)

44-20-7577-1000(Barcelona Sub-Branch)
Switzerland
Mitsubishi UFJ WealthManagement Bank
(Switzerland), Ltd.
U.K.
London Branch

66

Corporate Review 2010 Mitsubishi UFJ Financial GroupBank of Tokyo-Mitsubishi UFJ’s operations appear in black
Mitsubishi UFJ Trust and Banking in blue Mitsubishi UFJ Securities Holdings in green

London Branch

24 Lombard Street, London EC3V 9AJ, U.K.

44-20-7618-6802

Mitsubishi UFJ AssetManagement (UK) Ltd.

Finsbury Circus House, 12-15 Finsbury Circus, London EC2M 7BT, U.K.

44-20-7577-2149

Mitsubishi UFJ TrustInternational Limited

24 Lombard Street, London EC3V 9AJ, U.K.

44-20-7929-2866

Mitsubishi UFJ Baillie Gifford
Asset Management Limited

Calton Square, 1 Greenside Row, Edinburgh EH1 3AN, Scotland, U.K.

44-131-275-3143

Mitsubishi UFJ Securities
International plc

6 Broadgate, London EC2M 2AA, U.K.

44-20-7628-5555

Level 26 of the West Tower, Financial Centre, Bahrain Financial Harbour,
P.O. Box 5850, Manama, Kingdom of Bahrain973-1710-3300

10th Floor, Nile City Towers, South Tower, Cornish El-Nil, Cairo,
Arab Republic of Egypt

20-2-2461-9690
20-2-2461-9691

2nd Floor, No.48 Parvin Alley, Vali Asr Ave.,
Tehran, Islamic Republic of Iran

98-21-2621-8044

Suite A3, Mezzanine Floor, Tornado Tower, West Bay,
P.O. Box 23153, Doha, State of Qatar

974-417-3355

15th Floor, The Forum, Corner Fifth and Maude Streets, Sandown,
Sandton 2146, Republic of South Africa(mailing address: P.O. Box 78519, Sandton 2146, Republic of South Africa)

27-11-884-4721

Maya-Akar Center, Buyukdere Caddesi, No. 100-102, B Blok D.79,
Esentepe 34394, Istanbul, Republic of Turkey

90-212-288-5645

Abu Dhabi Office

17th Floor, Office 17A, One NBAD Tower, Shaikh Khalifa Street,
Abu Dhabi, United Arab Emirates(mailing address: P.O. Box 2174, Abu Dhabi, United Arab Emirates)971-2-627-7762(Dubai Office)Level 1 GV6, The Gate Village, Dubai International Financial Centre,
P.O. Box 506614, Dubai, United Arab Emirates

971-4-323-0311

MIDDLE EAST AND AFRICA
Bahrain
Bahrain Branch
Egypt
Cairo Representative Office
IranTehran Representative
Office
Qatar
Doha OfficeSouth Africa
Johannesburg Representative
OfficeTurkeyIstanbul Representative Office
U.A.E.

ASIA AND OCEANIA
Australia
Sydney Branch(Melbourne Branch)

Level 25, Gateway, 1 Macquarie Place, Sydney, N.S.W. 2000 Australia

61-2-9296-1111

Level 18, 600 Bourke Street, Melbourne, Victoria 3000 Australia

61-3-9602-8999

Pan Pacific Sonargaon Dhaka, Annex Building (3rd Floor) 107,
Kazi Nazrul Islam Avenue, Dhaka 1215, Bangladesh

880-2-9118982

Bangladesh
Dhaka Representative Office

Mitsubishi UFJ Financial Group Corporate Review 201067

China＿Shanghai Branch2303, AZIA Center, No.1233, Lujiazui Ring Road, Pudong New District,
Shanghai 200120, People’s Republic of China

Shenyang Representative Office

Room 705, 7F Fangyuan Mansion, No.1 Yuebin Street, Shenhe District,
Shenyang, Liaoning Province 110013, People’s Republic of China

86-24-2250-5599

Bank of Tokyo-Mitsubishi UFJ(China), Ltd.
Head Office

22F, AZIA Center, No.1233, Lujiazui Ring Road, Pudong New District,
Shanghai 200120, People’s Republic of China

86-21-6888-1666(Shanghai Branch)

20F, AZIA Center, No.1233, Lujiazui Ring Road, Pudong New District,
Shanghai 200120, People’s Republic of China

86-21-6888-1666(Beijing Branch)

2F, Beijing Fortune Building, 5 Dong Sanhuan Bei-Lu, Chaoyang District,
Beijing 100004, People’s Republic of China

86-10-6590-8888(Tianjin Branch)

21F Tianjin International Building, 75 Nanjing Road,
Heping District, Tianjin 300050, People’s Republic of China

86-22-2311-0088

3F, W2A Building, Binhai Finance Zone, 3rd Street, TEDA,
Tianjin 300457, People’s Republic of China

86-22-5982-8855

11F, Senmao Building, 147 Zhongshan Road, Xigang District, Dalian,
Liaoning Province 116011, People’s Republic of China

86-411-8360-6000

18F, International Business Buildings of Gugeng, 138 Jinma Road,
Dalian Economic & Technological Development Area, Dalian,
Liaoning Province 116600, People’s Republic of China

86-411-8793-5300(Wuxi Branch)

10F, Wuxi Software Park, No. 16 Changjiang Road, Wuxi New District,Wuxi, Jiangsu Province 214028, People’s Republic of China

86-510-8521-1818(Guangzhou Branch)

24F, International Finance Place, No.8 Huaxia Road, Pearl River New Town,
Guangzhou, Guangdong Province 518001, People’s Republic of China

86-20-8550-6688(Shenzhen Branch)

9-10/F, Tower One, Kerry Plaza, 1 Zhongxinsi Road, Futian District,
Shenzhen, Guangdong Province 518048, People's Republic of China,

86-755-8256-0808(Chengdu Representative
Office)18F, Tower 2, Plaza Central, 8 Shun Cheng Dajie, Jinjiang District,Chengdu, Sichuan Province, 610016, People's Republic of China

86-28-8671-7666

Beijing Representative
OfficeRoom 304, 3rd Floor, Chang Fu Gong Office Building, No. Jia 26,
Jianguomenwai Dajie, Chaoyang District, Beijing 100022,
People’s Republic of China

86-10-6513-9016
86-10-6513-9017

MU Trust Consulting(Shanghai) Co., Ltd.

Room 1705 ShengGao International Building, 137 Xianxia Road,
Shanghai 200051, People’s Republic of China

86-21-5206-7171

Ling Zheng Investment
Consulting (Shanghai) Co., Ltd.

Unit 3106, Azia Center, 1233 Lujiazui Ring Road, Pudong New Area,
Shanghai 200120, People's Republic of China

86-21-6841-3018

Beijing Representative Office

Unit 1705, Tower 2, Prosper Center, No. 5, Guanghua Road,
Chaoyang District, Beijing 100020, People’s Republic of China

86-10-6590-8770

8F, AIA Central, 1 Connaught Road, Central, Hong Kong,
People’s Republic of China

852-2823-6666

Room 1701, Miramar Tower, 132 Nathan Road, Tsim Sha Tsui,
Kowloon, Hong Kong, People’s Republic of China

852-2378-5111

15F Peninsula Office Tower, 18 Middle Road, Tsim Sha Tsui,
Kowloon, Hong Kong, People’s Republic of China

852-2315-4333

Rooms 127-130, 1st Floor East Ocean Centre, 98 Granville Road,
Tsim Sha Tsui East, Kowloon, Hong Kong, People’s Republic of China

852-2369-5407(Tianjin Binhai Sub-Branch)(Dalian Branch)(Dalian Economic &Technological Development
Area Sub-Branch)<Hong Kong>
Hong Kong Branch(Tsim Sha Tsui Sub-Branch)
Kowloon Branch(East Tsim Sha Tsui
Sub-Branch)

68

Corporate Review 2010 Mitsubishi UFJ Financial GroupBank of Tokyo-Mitsubishi UFJ’s operations appear in black
Mitsubishi UFJ Trust and Banking in blue Mitsubishi UFJ Securities Holdings in green

Hong Kong Branch

Suites 2102-7, Tower 6, The Gateway, Harbour City, 9 Canton Road,
Tsim Sha Tsui, Kowloon, Hong Kong, People’s Republic of China

852-2844-8000

Mitsubishi UFJ Securities(HK) Holdings, Limited

11/F AIA Central, 1 Connaught Road, Central, Hong Kong,
People’s Republic of China

852-2860-1500

Mitsubishi UFJ Securities(HK) Capital, Limited

11/F AIA Central, 1 Connaught Road, Central, Hong Kong,
People’s Republic of China

852-2860-1500

Mitsubishi UFJ Securities(HK), Limited

11/F AIA Central, 1 Connaught Road, Central, Hong Kong,
People’s Republic of China

852-2860-1500

8th & 9th Floor, Union Enterprise Plaza,
109 Min Sheng East Road Sec. 3, Taipei 10544, Taiwan

886-2-2514-0598

New Delhi Branch

Jeevan Vihar 3, Parliament Street, New Delhi 110001, India(mailing address: P.O. Box 717, New Delhi, India)

91-11-4100-3456

Mumbai Branch

15th Floor, Hoechst House, 193 Vinay K. Shah Marg,(Backbay Reclamation) Nariman Point, Mumbai 400 021, India

91-22-6669-3000

Chennai Branch

6th Floor, Venkataramana Centre, 563/2 Anna Salai,
Teynampet, Chennai 600018, India

91-44-2432-0034

Midplaza Building 1F-3F, Jl. Jenderal Sudirman Kav. 10-11,
Jakarta 10227, Republic of Indonesia

62-21-570-6185(Bekasi Service Point)

EJIP Center, EJIP Industrial Park, Cikarang Selatan, Bekasi 17550,
Republic of Indonesia

62-21-570-6185(MM2100 Industrial Town
Service Point)

Ruko Mega Mall D-12, MM2100 Industrial Town,
Cikarang Barat, Bekasi 17520, Republic of Indonesia

62-21-570-6185(Karawang Service Point)

Graha KIIC, Kawasan Industri KIIC, Jl. Permata Raya Lot C 1B,
Karawang 41361, Republic of Indonesia

62-21-570-6185(Sunter Service Point)

Graha Kirana Building, 1st Floor Jl. Yos Sudarso No. 88,
Jakarta 14350, Republic of Indonesia

62-21-570-6185(Cengkareng Service Point)

Wisma Soewarna, 3rd Floor, Suite 3W, Soewarna Business Park,
Block E Lot 1 & 2, Soekarno-Hatta International Airport, Jakarta 19110,
Republic of Indonesia

62-21-570-6185(Cikampek Service Point)

Wisma Bukit Indah 1st Floor, Block L, Kota Bukit Indah Purwakarta 41181,
Republic of Indonesia

62-21-570-6185(Surabaya Sub-Branch)

Graha Bumi Modern, Jl. Jenderal Basuki Rakhmat 106-128,
Surabaya 60271, Republic of Indonesia

62-31-531-6711(Bandung Sub-Branch)

Graha Internasional Jl. Asia Afrika No. 129, Bandung 40112,
Republic of Indonesia

62-22-424-1870
62-22-424-1871
62-22-423-2958

PT U Finance Indonesia

ANZ TOWER, 20 & 21 Floor, Jl. Jenderal Sudirman Kav. 33A,
Jakarta 10220, Republic of Indonesia

62-21-571-1109

PT. BTMU-BRI FinanceWisma 46, 6th and 10th Floor, Kota BNI, Jl. Jenderal Sudirman Kav. 1,
Jakarta 10220, Republic of Indonesia

62-21-574-5333<Taiwan>Taipei Branch
India

Indonesia
Jakarta Branch

Mitsubishi UFJ Financial Group Corporate Review 201069

Bank of Tokyo-Mitsubishi UFJ’s operations appear in black
Mitsubishi UFJ Trust and Banking in blue Mitsubishi UFJ Securities Holdings in green

Korea
Seoul Branch

4th Floor Young Poong Bldg., 33 Seorin-Dong, Chongro-ku,
Seoul, Republic of Korea

82-2-399-6400

Level 12 (A & F), Main Office Tower Financial Park Labuan,
Jalan Merdeka, 87000 Federal Territory of Labuan, Malaysia

60-87-410-487

Level 9, Menara IMC, No. 8, Jalan Sultan Ismail, 50250
Kuala Lumpur, Malaysia

60-3-2034-8080

Level 9, 10 and 11, Menara IMC, No. 8, Jalan Sultan Ismail,50250 Kuala Lumpur, Malaysia

60-3-2034-8000
60-3-2034-8008

Room No. 04-09, Sedona Business Suites, Sedona Hotel, No. 1 Kaba Aye
Pagoda Road, Yankin Township, Yangon, Union of Myanmar

95-1-557080
95-1-557085

Level 22, 151 Queen Street, Auckland, New Zealand(mailing address: P.O. Box 105160, Auckland, New Zealand)

64-9-302-3554

1st Floor Shaheen Complex, M.R. Kayani Road, Karachi,
Islamic Republic of Pakistan

92-21-3263-0171

15th Floor, 6788 Ayala Avenue, Makati City, Philippines

63-2-886-7371

Singapore Branch

9 Raffles Place, #01-01 Republic Plaza, Singapore 048619,
Republic of Singapore

65-6538-3388

Singapore Branch

50 Raffles Place #42-01, Singapore Land Tower, Singapore 048623,
Republic of Singapore

65-6225-9155

Mitsubishi UFJ Securities(Singapore), Limited

9 Raffles Place, #01-01, Republic Plaza, Singapore 048619,
Republic of Singapore

65-6536-7818

Bangkok BranchHarindhorn Tower, 54 North Sathorn Road, Bangrak, Bangkok
10500, Kingdom of Thailand

66-2-266-3011

BTMU Participation(Thailand) Co., Ltd.

4th Floor, Harindhorn Tower, 54 North Sathorn Road, Bangrak,
Bangkok 10500, Kingdom of Thailand

66-2-266-3070

BTMU Holding (Thailand)Co., Ltd.

4th Floor, Harindhorn Tower, 54 North Sathorn Road, Bangrak,
Bangkok 10500, Kingdom of Thailand

66-2-266-3056

Bangkok BTMU Limited

4th Floor, Harindhorn Tower, 54 North Sathorn Road, Bangrak,
Bangkok 10500, Kingdom of Thailand

66-2-266-3075

Ho Chi Minh City Branch

8th Floor, The Landmark, 5B Ton Duc Thang Street, District 1,
Ho Chi Minh City, Socialist Republic of Vietnam

84-8-3823-1560

Hanoi Branch

6th Floor, Pacific Place, 83B Ly Thuong Kiet Street, Hanoi,
Socialist Republic of Vietnam

84-4-3946-0600

Malaysia
Labuan Branch(Kuala Lumpur Marketing
Office)Bank of Tokyo-Mitsubishi UFJ(Malaysia) Berhad
Myanmar
Yangon Representative Office
New Zealand
Auckland Branch
Pakistan
Karachi BranchPhilippines
Manila Branch
Singapore

Thailand

Vietnam(As of June 30, 2010)70

Corporate Review 2010 Mitsubishi UFJ Financial GroupRecent History of MUFG
MUFG was formed in October 2005, but can trace its roots back to the 19th century. Through the changing times
and against the backdrop of mergers and reorganizations, we have been consistently providing high-quality
financial services to our customers.
2001

April
The Bank of Tokyo-Mitsubishi, Ltd. (BTM), The Mitsubishi Trust and Banking Corporation (Mitsubishi Trust) andNippon Trust Bank Limited (NTB) jointly established holding company Mitsubishi Tokyo Financial Group, Inc.
(MTFG) through a share exchange.
The Sanwa Bank, Limited, The Tokai Bank, Limited and The Toyo Trust and Banking Company, Limited (Toyo
Trust) jointly established holding company UFJ Holdings, Inc. (UFJH) through a share exchange.
October
NTB and The Tokyo Trust Bank, Ltd. merged into Mitsubishi Trust.

2002

January
UFJ Bank Limited was created through the merger of The Sanwa Bank and The Tokai Bank.
Toyo Trust was renamed UFJ Trust Bank Limited.
September
Mitsubishi Securities Co., Ltd. was created through the merger of Tokyo-Mitsubishi Securities Co., Ltd.,Tokyo-Mitsubishi Personal Securities Co., Ltd., KOKUSAI Securities Co., Ltd. and Issei Securities Co., Ltd.

2004

April
UFJH changed the status of UFJ Tsubasa Securities Co., Ltd. to a wholly owned subsidiary.

2005

October
Mitsubishi UFJ Financial Group, Inc. (MUFG) was created through the merger of MTFG and UFJH.
Mitsubishi UFJ Trust and Banking Corporation (MUTB) and Mitsubishi UFJ Securities Co., Ltd. (MUS) were createdthrough the mergers of Mitsubishi Trust and UFJ Trust Bank and Mitsubishi Securities and UFJ Tsubasa Securities,
respectively.
UFJ NICOS Co., Ltd. was created through the merger of UFJ Card Co., Ltd. and Nippon Shinpan Co., Ltd. andbecame a consolidated subsidiary of MUFG.

2006

January
The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU) was created through the merger of the BTM and UFJ Bank.

2007

April
Mitsubishi UFJ Lease & Finance Company Limited was created through the merger of Diamond Lease Company
Limited and UFJ Central Leasing Co., Ltd.
Mitsubishi UFJ NICOS Co., Ltd. was created through the merger of UFJ NICOS and DC Card Co., Ltd.
SeptemberMUS became a wholly owned subsidiary of MUFG through a share exchange.

2008

AugustMitsubishi UFJ NICOS was made a wholly owned subsidiary of MUFG by means of a share exchange, and then
MUFG transferred a portion of its shares of Mitsubishi UFJ NICOS common stock to The Norinchukin Bank.
October
MUFG and Morgan Stanley implemented their strategic and capital alliance and MUFG invested U.S. $9 billion in
Morgan Stanley.
November
UnionBanCal Corporation was made a wholly owned subsidiary of BTMU.
December
ACOM was made a consolidated subsidiary of MUFG.

2010

May
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and Morgan Stanley MUFG Securities Co., Ltd. were formed
through a joint investment by MUFG and Morgan Stanley, and started operations.
Mitsubishi UFJ Financial Group Corporate Review 201071

Company Overview
Mitsubishi UFJ Financial Group, Inc.
Date of Establishment:

April 2, 2001

Head Office:7-1, Marunouchi 2-Chome, Chiyoda-ku, Tokyo 100-8330, Japan

Amount of Capital:¥2,136.8 billion

Stock Exchange Listings:

Tokyo, Osaka, Nagoya, New York (NYSE ticker: MTU)

Long-term Ratings:

AA– (JCR), A (R&I), A (S&P)

BIS Risk-adjusted Capital Ratio:

14.87%(As of March 31, 2010)

Contact:

Investor Relations Office, Corporate Planning DivisionTel:81-3-3240-8111

Website:www.mufg.jp/english/

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Date of Establishment:

August 15, 1919

Head Office:7-1, Marunouchi 2-Chome, Chiyoda-ku, Tokyo 100-8388, Japan

Amount of Capital:¥1,711.9 billion

Long-term Ratings:

Aa2 (Moody’s), A+ (S&P), A (FITCH), AA (JCR), A+ (R&I)

BIS Risk-adjusted Capital Ratio:

15.54%(As of March 31, 2010)

Contact:

Public Relations DivisionTel:81-3-3240-1111

Website:www.bk.mufg.jp/english/

Mitsubishi UFJ Trust and Banking Corporation
Date of Establishment:

March 10, 1927

Head Office:4-5, Marunouchi 1-Chome, Chiyoda-ku, Tokyo 100-8212, Japan

Amount of Capital:¥324.2 billion

Long-term Ratings:

Aa2* (Moody’s), A+ (S&P), A (FITCH), AA (JCR), A+ (R&I)*Deposit Rating Only

BIS Risk-adjusted Capital Ratio:

16.02%(As of March 31, 2010)72

Contact:

Public Relations Section, Corporate Planning DivisionTel:81-3-3212-1211

Website:www.tr.mufg.jp/english/

Corporate Review 2010 Mitsubishi UFJ Financial GroupMitsubishi UFJ Securities Holdings Co., Ltd.
Date of Establishment:

March 4, 1948

Head Office:4-1, Marunouchi 2-Chome, Chiyoda-ku, Tokyo 100-6317, Japan

Amount of Capital:¥65.5 billion

Long-term Ratings:

Aa2* (Moody’s), AA (JCR), A+ (R&I)*On review for possible downgrade.

Contact:

Corporate Planning DivisionTel:81-3-6213-6584

Website:www.hd.sc.mufg.jp/english/

Mitsubishi UFJ NICOS Co., Ltd.
Date of Establishment:

June 7, 1951

Head Office:33-5, Hongo 3-Chome, Bunkyo-ku, Tokyo 113-8411, Japan

Amount of Capital:¥109.3 billion

Long-term Ratings:

A1 (Moody’s), AA– (JCR), A (R&I)

Contact:

Corporate Planning DepartmentTel:81-3-3811-3111

Website:www.cr.mufg.jp/

Mitsubishi UFJ Lease & Finance Company Limited
Date of Establishment:

April 12, 1971

Head Office:5-1, Marunouchi 1-Chome, Chiyoda-ku, Tokyo 100-6525, Japan

Amount of Capital:¥33.1 billion

Stock Exchange Listings:

Tokyo, Nagoya

Long-term Ratings:

A1 (Moody’s), AA– (JCR), A+ (R&I)

Contact:

Corporate Communications DepartmentTel:81-3-6865-3000

Website:www.lf.mufg.jp/english/(As of June 30, 2010)

This corporate review is printed on recycled paper with soy ink.

www.mufg.jp

Corporate Review 2010

Printed in Japan