UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of May 2023

Commission File No. 000-54189

 

 

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

 

7-1, Marunouchi 2-chome, Chiyoda-ku

Tokyo 100-8330, Japan

(Address of principal executive office)

 

 

Indicate by check mark whether the registrant files or

will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F      X      Form 40-F              

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

 

 

 

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-242048) OF MITSUBISHI UFJ FINANCIAL GROUP, INC. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 15, 2023

 

Consolidated Summary Report

<under Japanese GAAP>

for the fiscal year ended March 31, 2023

May 15, 2023

 

Company name:		Mitsubishi UFJ Financial Group, Inc.
Stock exchange listings:		Tokyo, Nagoya, New York
Code number:		8306
URL		https://www.mufg.jp/
Representative:		Hironori Kamezawa, President & Group CEO
For inquiry:		Masahisa Takahashi, Managing Director, Head of Financial Accounting and Reporting, Financial Accounting Office, Financial Planning Division
		TEL 050-3613-1179
General meeting of shareholders:		June 29, 2023
Dividend payment date:		June 30, 2023
Securities report issuing date:		June 27, 2023
Trading accounts:		Established
Supplemental information for financial statements:		Available
Investor meeting presentation:		Scheduled (for investors and analysts)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Data for the Fiscal Year ended March 31, 2023

 

(1)	Results of Operations

 

		( % represents the change from the previous fiscal year)
		Ordinary Income								Ordinary Profits								Profits Attributable to Owners of Parent
		million yen				%				million yen				%				million yen				%
Fiscal year ended
March 31, 2023			9,281,027				52.8				1,020,728				(33.6	)			1,116,496				(1.3	)
March 31, 2022			6,075,887				0.8				1,537,649				45.9				1,130,840				45.5

 

(*)	Comprehensive income

                March 31, 2023: 1,158,800 million yen     45.3 %                 ;         March 31, 2022: 797,310 million yen     (39.8) %

 

		Basic earnings per share				Diluted earnings per share				Net Income to Net Assets Attributable to MUFG shareholders				Ordinary Profits to Total Assets				Ordinary Profits to Ordinary Income
		yen				yen				%				%				%
Fiscal year ended
March 31, 2023			90.73				90.41				6.5				0.3				11.0
March 31, 2022			88.45				88.05				6.7				0.4				25.3

(Reference) Income from investment in affiliates (Equity method)

                March 31, 2023: 425,829 million yen                                       ;       March 31, 2022: 441,595 million yen

 

(2)	Financial Conditions

 

		Total Assets				Total Net Assets				Equity-to-asset ratio (*)				Total Net Assets per Common Stock
		million yen				million yen				%				yen
As of
March 31, 2023			386,799,477				18,272,857				4.5				1,433.12
March 31, 2022			373,731,910				17,988,245				4.6				1,349.52
(Reference) Shareholders’ equity as of     March 31, 2023: 17,231,291 million yen ;     March 31, 2022: 17,023,773 million yen   (*)   “Equity-to-asset ratio” is computed under the formula shown below               (Total net assets - Non-controlling interests) / Total assets   (3)   Cash Flows
		Cash Flows from Operating Activities				Cash Flows from Investing Activities				Cash Flows from Financing Activities				Cash and Cash Equivalents at the end of the period
		million yen				million yen				million yen				million yen
Fiscal year ended
March 31, 2023			13,431,773				(10,675,096	)			(977,138	)			113,630,172
March 31, 2022			9,839,899				(2,202,726	)			(1,080,428	)			110,763,205

2. Dividends on Common Stock

 

		Dividends per Share																				Total dividends				Dividend payout ratio (Consolidated)				Dividend on net assets ratio (Consolidated)
		1st quarter-end				2nd quarter-end				3rd quarter-end				Fiscal year-end				Total
		yen				yen				yen				yen				yen				million yen				%				%
Fiscal year
ended March 31, 2022			—				13.50				—				14.50				28.00				357,188				31.7				2.1
ended March 31, 2023			—				16.00				—				16.00				32.00				389,991				35.3				2.3
ending March 31, 2024 (Forecast)			—				20.50				—				20.50				41.00								37.9

 

(*)	Revision of forecasts for dividends on the presentation date of this Consolidated Summary Report : None

3. Earnings Target for the Fiscal Year ending March 31, 2024 (Consolidated)

MUFG has set an earnings target of 1,300.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2024. MUFG is engaged in financial service businesses such as banking business, trust banking business, securities business and credit card/loan businesses. Because there are various uncertainties caused by economic situation, market environments and other factors in these businesses, MUFG discloses a target of its profits attributable to owners of parent instead of a forecast of its performance.

øNotes

 

(1)	Changes in significant subsidiaries during the period (Changes in specified subsidiaries accompanying change in scope of consolidation): No

 

(2)	Changes in accounting policies, changes in accounting estimates and restatements

(A) Changes in accounting policies due to revision of accounting standards: Yes

(B) Changes in accounting policies due to reasons other than (A): No

(C) Changes in accounting estimates: No

(D) Restatements: No

 

(3)	Number of common stocks outstanding at the end of the period

 

(A) Total stocks outstanding including treasury stocks:		March 31, 2023			12,687,710,920 shares
		March 31, 2022			13,281,995,120 shares
(B) Treasury stocks:		March 31, 2023			664,065,483 shares
		March 31, 2022			667,296,084 shares
(C) Average outstanding stocks:		Fiscal year ended March 31, 2023			12,305,714,018 shares
		Fiscal year ended March 31, 2022			12,785,341,295 shares

*This “Consolidated Summary Report” (“Tanshin”) is outside the scope of the external auditor’s audit procedure.

*Notes for using forecasted information etc.

 

1.

This financial summary report contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overall management of the company and/or the group as a whole (the “forward-looking statements”). The forward-looking statements are made based upon, among other things, the company’s current estimations, perceptions and evaluations. In addition, in order for the company to adopt such estimations, forecasts, targets and plans regarding future events, certain assumptions have been made. Accordingly, due to various risks and uncertainties, the statements and assumptions are inherently not guarantees of future performance, may be considered differently from alternative perspectives and may result in material differences from the actual result. For the main factors that may affect the current forecasts, please see Consolidated Summary Report, Annual Securities Report, Disclosure Book, Annual Report, and other current disclosures that the company has announced.

 

2.

The financial information included in this financial summary report is prepared and presented in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”). Differences exist between Japanese GAAP and the accounting principles generally accepted in the United States (“U.S. GAAP”) in certain material respects. Such differences have resulted in the past, and are expected to continue to result for this period and future periods, in amounts for certain financial statement line items under U.S. GAAP to differ significantly from the amounts under Japanese GAAP. For example, differences in consolidation basis or accounting for business combinations, including but not limited to amortization and impairment of goodwill, could result in significant differences in our reported financial results between Japanese GAAP and U.S. GAAP. Readers should consult their own professional advisors for an understanding of the differences between Japanese GAAP and U.S. GAAP and how those differences might affect our reported financial results. We will publish U.S. GAAP financial results in a separate disclosure document when such information becomes available.

Mitsubishi UFJ Financial Group, Inc.

 

(Appendix)

Contents of Appendix

 

1. Results of Operations and Financial Condition			2
(1) Analysis of results of operations			2
(2) Analysis of financial condition			3
2. Basic Views on Selection of Accounting Standards			3
3. Consolidated Financial Statements and Notes			4
(1) Consolidated Balance Sheets			4
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			6
(3) Consolidated Statements of Changes in Net Assets			9
(4) Consolidated Statements of Cash Flows			11
Notes to the Consolidated Financial Statements			13
Notes on Going-Concern Assumption
Changes in Accounting Policies
Changes in Presentation of Financial Information
Additional Information
Segment Information
Per Share Information

Supplemental Information:

“Selected Financial Information under Japanese GAAP For the Fiscal Year Ended March 31, 2023”

 

(*)	The following is the schedule of internet conference and explanation for investors and analysts. You can confirm those contents over the internet.

 

Internet Conference:		May 15, 2023 (Monday)
Explanation for investors and analysts:		May 17, 2023 (Wednesday)

 

1

Mitsubishi UFJ Financial Group, Inc.

 

1. Results of Operations and Financial Condition

(1) Analysis of results of operations

(Results of operations for the fiscal year ended March 31, 2023)

Consolidated gross profits for the fiscal year ended March 31, 2023 increased 539.0 billion yen from the previous fiscal year to 4,503.0 billion yen. This was due to an increase in net interest income resulting from the gains on cancellations of investment trusts, improvement in loan spread, and an increase in earnings from foreign deposits and loans, partially offset by a decrease in net gains on debt securities due to record of losses on sales of foreign bonds during the period of rising interest rate. General and administrative expenses increased 161.4 billion yen from the previous fiscal year to 2,908.7 billion yen, mainly due to the impact of foreign exchange translation. As a result, net operating profits increased 377.5 billion yen from the previous fiscal year to 1,594.2 billion yen.

Total credit costs increased 343.4 billion yen from the previous fiscal year to 674.8 billion yen, mainly due to the recording of valuation losses on loans sold in connection with the transfer shares of MUFG Union Bank, N.A. Other non-recurring losses increased 490.6 billion yen from the previous fiscal year, mainly due to losses related to the accounting treatment in connection with the transfer of MUFG Union Bank, N.A.. As a result, ordinary profits for the fiscal year ended March 31, 2023 decreased 516.9 billion yen from the previous fiscal year to 1,020.7 billion yen. Net extraordinary gains increased 596.9 billion yen from the previous fiscal year, mainly due to a gain of 699.5 billion yen on the sale of shares of MUFG Union Bank, N.A. As a result, profits attributable to owners of parent for the fiscal year ended March 31, 2023 was 1,116.4 billion yen, an decrease of 14.3 billion yen from the previous fiscal year.

 

(in billions of Japanese yen)		For the fiscal year ended March 31, 2023				For the fiscal year ended March 31, 2022				Increase (Decrease)
Gross profits before credit costs for trust accounts			4,503.0				3,964.0				539.0
General and administrative expenses			2,908.7				2,747.2				161.4
Net operating profits before credit costs for trust accounts and provision for general allowance for credit losses			1,594.2				1,216.7				377.5
Total credit costs			(674.8	)			(331.4	)			(343.4	)
Net gains (losses) on equity securities			288.0				332.6				(44.6	)
Equity in earnings of equity method investees			425.8				441.5				(15.7	)
Other non-recurring gains (losses)			(612.5	)			(121.9	)			(490.6	)
Ordinary profits			1,020.7				1,537.6				(516.9	)
Net extraordinary gains (losses)			549.1				(47.7	)			596.9
Total taxes			369.6				283.4				86.1
Profits attributable to non-controlling interests			83.8				75.6				8.2
Profits attributable to owners of parent			1,116.4				1,130.8				(14.3	)

 

2

Mitsubishi UFJ Financial Group, Inc.

 

(2) Analysis of financial condition

Total assets as of March 31, 2023 increased 13,067.5 billion yen from March 31, 2022 to 386,799.4 billion yen, and total net assets as of March 31, 2023 increased 284.6 billion yen from March 31, 2022 to 18,272.8 billion yen. The increase in total net assets was mainly due to an increase of Retained earnings.

With regard to major items of assets, loans and bills discounted as of March 31, 2023 decreased 1,279.9 billion yen from March 31, 2022 to 109,146.2 billion yen and securities as of March 31, 2023 increased 7,186.3 billion yen from March 31, 2022 to 86,746.9 billion yen. With regard to major items of liabilities, deposits as of March 31, 2023 decreased 1,817.7 billion yen from March 31, 2022 to 213,609.5 billion yen.

2. Basic Views on Selection of Accounting Standards

MUFG group, currently adopting Japanese GAAP, is preparing for its future adoption of IFRS by considering the development of its infrastructures and organizations within the group, and the timing of adoption.

 

3

Mitsubishi UFJ Financial Group, Inc.

 

3. Consolidated Financial Statements and Notes

(1) Consolidated Balance Sheets

 

(in millions of yen)		As of     March 31, 2022				As of     March 31, 2023
Assets:
Cash and due from banks			110,763,205				113,630,172
Call loans and bills bought			872,268				618,223
Receivables under resale agreements			12,308,310				14,000,846
Receivables under securities borrowing transactions			4,517,952				4,549,792
Monetary claims bought			6,466,822				7,325,185
Trading assets			17,704,455				18,013,184
Money held in trust			1,332,492				1,287,020
Securities			79,560,579				86,746,900
Loans and bills discounted			110,426,224				109,146,272
Foreign exchanges			2,300,859				2,300,198
Other assets			14,050,293				15,195,896
Tangible fixed assets			1,236,012				1,220,172
Buildings			304,935				286,879
Land			646,197				629,782
Lease assets			11,422				12,390
Construction in progress			33,273				34,649
Other tangible fixed assets			240,183				256,469
Intangible fixed assets			1,344,225				1,358,124
Software			507,629				555,235
Goodwill			271,353				252,009
Lease assets			1				17
Other intangible fixed assets			565,241				550,862
Net defined benefit assets			1,374,607				1,325,434
Deferred tax assets			213,922				322,021
Customers’ liabilities for acceptances and guarantees			10,481,838				11,005,758
Allowance for credit losses			(1,222,162	)			(1,245,727	)
Total assets			373,731,910				386,799,477

 

4

Mitsubishi UFJ Financial Group, Inc.

 

 

(in millions of yen)		As of     March 31, 2022				As of     March 31, 2023
Liabilities:
Deposits			215,427,299				213,609,501
Negotiable certificates of deposit			10,938,831				13,632,559
Call money and bills sold			2,429,791				3,449,234
Payables under repurchase agreements			27,619,262				39,982,955
Payables under securities lending transactions			1,072,578				1,171,947
Commercial papers			2,108,531				2,220,723
Trading liabilities			12,397,702				14,716,820
Borrowed money			31,763,332				24,856,340
Foreign exchanges			2,182,400				2,570,412
Short-term bonds payable			1,316,803				1,047,499
Bonds payable			13,257,347				15,708,720
Due to trust accounts			12,811,123				11,689,414
Other liabilities			10,861,695				12,132,972
Reserve for bonuses			136,724				196,850
Reserve for bonuses to directors			1,866				3,639
Reserve for stocks payment			8,437				9,304
Net defined benefit liabilities			86,355				86,445
Reserve for retirement benefits to directors			812				830
Reserve for loyalty award credits			17,113				17,962
Reserve for contingent losses			232,291				164,891
Reserves under special laws			4,656				4,659
Deferred tax liabilities			492,451				157,651
Deferred tax liabilities for land revaluation			94,414				89,525
Acceptances and guarantees			10,481,838				11,005,758
Total liabilities			355,743,665				368,526,620
Net assets:
Capital stock			2,141,513				2,141,513
Capital surplus			770,277				349,661
Retained earnings			11,998,157				12,739,228
Treasury stock			(451,288	)			(481,091	)
Total shareholders’ equity			14,458,659				14,749,310
Net unrealized gains (losses) on available-for-sale securities			1,615,060				800,955
Net deferred gains (losses) on hedging instruments			(81,145	)			(387,079	)
Land revaluation excess			140,628				135,526
Foreign currency translation adjustments			734,588				1,792,840
Remeasurements of defined benefit plans			193,865				140,485
Debt value adjustments of foreign subsidiaries and affiliates			(37,883	)			(747	)
Total accumulated other comprehensive income			2,565,114				2,481,980
Non-controlling interests			964,471				1,041,565
Total net assets			17,988,245				18,272,857
Total liabilities and net assets			373,731,910				386,799,477

 

5

Mitsubishi UFJ Financial Group, Inc.

 

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Consolidated Statements of Income

 

(in millions of yen)		For the fiscal year ended     March 31, 2022				For the fiscal year ended     March 31, 2023
Ordinary income			6,075,887				9,281,027
Interest income			2,587,445				5,298,944
Interest on loans and bills discounted			1,654,635				2,810,147
Interest and dividends on securities			546,968				1,452,461
Interest on call loans and bills bought			4,724				19,104
Interest on receivables under resale agreements			20,461				111,940
Interest on receivables under securities borrowing transactions			3,029				43,509
Interest on deposits			59,072				364,406
Other interest income			298,551				497,373
Trust fees			144,147				140,637
Fees and commissions			1,729,100				1,883,428
Trading income			232,471				373,347
Other operating income			411,301				631,365
Other ordinary income			971,421				953,304
Gains on loans written-off			88,558				96,569
Others			882,862				856,735
Ordinary expenses			4,538,237				8,260,299
Interest expenses			543,957				2,372,735
Interest on deposits			187,510				887,987
Interest on negotiable certificates of deposit			19,348				283,076
Interest on call money and bills sold			610				3,173
Interest on payables under repurchase agreements			17,906				454,200
Interest on payables under securities lending transactions			8,440				2,193
Interest on commercial papers			3,289				78,041
Interest on borrowed money			9,974				61,677
Interest on short-term bonds payable			104				135
Interest on bonds payable			264,270				355,003
Other interest expenses			32,501				247,246
Fees and commissions			298,450				328,660
Trading expenses			—				284
Other operating expenses			298,166				1,622,838
General and administrative expenses			2,746,840				2,969,325
Other ordinary expenses			650,822				966,453
Provision for allowance for credit losses			225,714				225,416
Others			425,108				741,037
Ordinary profits			1,537,649				1,020,728

 

6

Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)		For the fiscal year ended     March 31, 2022				For the fiscal year ended     March 31, 2023
Extraordinary gains			159,376				715,667
Gains on disposition of fixed assets			30,226				16,157
Gains on sales of shares of subsidiaries			4,240				699,509
Gains on change in equity			64,919				—
Gains on transfer of businesses			31,021				—
Gains on sales of shares of affiliates			28,968				—
Extraordinary losses			207,168				166,472
Losses on disposition of fixed assets			13,363				17,076
Losses on impairment of fixed assets			174,133				18,167
Provision for reserve for contingent liabilities from financial instruments transactions			14				2
Losses on pension buyout			—				78,111
Losses on sales of shares of affiliates			—				29,401
Losses on change in equity			19,657				23,711
Profits before income taxes			1,489,857				1,569,923
Income taxes-current			413,935				493,256
Refund of income taxes			(22,300	)			(56,288	)
Income taxes-deferred			(108,224	)			(67,361	)
Total taxes			283,410				369,607
Profits			1,206,447				1,200,316
Profits attributable to non-controlling interests			75,606				83,820
Profits attributable to owners of parent			1,130,840				1,116,496

 

7

Mitsubishi UFJ Financial Group, Inc.

 

Consolidated Statements of Comprehensive Income

 

(in millions of yen)		For the fiscal year ended     March 31, 2022				For the fiscal year ended     March 31, 2023
Profits			1,206,447				1,200,316
Other comprehensive income
Net unrealized gains (losses) on available-for-sale securities			(925,323	)			(676,883	)
Net deferred gains (losses) on hedging instruments			(217,906	)			(315,870	)
Land revaluation excess			1				—
Foreign currency translation adjustments			516,390				701,427
Remeasurements of defined benefit plans			32,281				(54,790	)
Share of other comprehensive income of associates accounted for using equity method			185,420				304,600
Total other comprehensive income			(409,136	)			(41,515	)
Comprehensive income			797,310				1,158,800
(Comprehensive income attributable to)
Comprehensive income attributable to owners of parent			717,398				1,038,465
Comprehensive income attributable to non-controlling interests			79,912				120,335

 

8

Mitsubishi UFJ Financial Group, Inc.

 

(3) Consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2022

 

 

		(in millions of yen)
		Shareholders’ equity																				Accumulated other comprehensive income
		Capital stock				Capital surplus				Retained earnings				Treasury stock				Total shareholders’ equity				Net unrealized gains (losses) on available- for-sale securities				Net deferred gains (losses) on hedging instruments
Balance at the beginning of the period			2,141,513				977,287				11,200,087				(502,794	)			13,816,094				2,583,417				131,566
Cumulative effects of changes in accounting policies											(6,617	)							(6,617	)
Restated balance			2,141,513				977,287				11,193,470				(502,794	)			13,809,476				2,583,417				131,566
Changes during the period
Cash dividends											(334,710	)							(334,710	)
Profits attributable to owners of parent											1,130,840								1,130,840
Repurchase of treasury stock															(158,529	)			(158,529	)
Disposal of treasury stock							0								5,579				5,580
Retirement of treasury stock							(204,456	)							204,456				—
Reversal of land revaluation excess											8,556								8,556
Changes in subsidiaries’ equity							(2,554	)											(2,554	)
Net changes of items other than shareholders’ equity																							(968,357	)			(212,712	)
Total changes during the period			—				(207,010	)			804,687				51,505				649,182				(968,357	)			(212,712	)
Balance at the end of the period			2,141,513				770,277				11,998,157				(451,288	)			14,458,659				1,615,060				(81,145	)
		(in millions of yen)
		Accumulated other comprehensive income
		Land revaluation excess				Foreign currency translation adjustments				Remeasurements of defined benefit plans				Debt value adjustments of foreign subsidiaries and affiliates				Total accumulated other comprehensive income				Non- controlling interests				Total net assets
Balance at the beginning of the period			149,183				9,953				163,189				(50,832	)			2,986,478				913,684				17,716,257
Cumulative effects of changes in accounting policies																							(14	)			(6,632	)
Restated balance			149,183				9,953				163,189				(50,832	)			2,986,478				913,669				17,709,625
Changes during the period
Cash dividends																											(334,710	)
Profits attributable to owners of parent																											1,130,840
Repurchase of treasury stock																											(158,529	)
Disposal of treasury stock																											5,580
Retirement of treasury stock																											—
Reversal of land revaluation excess																											8,556
Changes in subsidiaries’ equity																											(2,554	)
Net changes of items other than shareholders’ equity			(8,554	)			724,635				30,675				12,949				(421,363	)			50,801				(370,562	)
Total changes during the period			(8,554	)			724,635				30,675				12,949				(421,363	)			50,801				278,620
Balance at the end of the period			140,628				734,588				193,865				(37,883	)			2,565,114				964,471				17,988,245

 

9

Mitsubishi UFJ Financial Group, Inc.

 

For the fiscal year ended March 31, 2023

 

		(in millions of yen)
		Shareholders’ equity																				Accumulated other comprehensive income
		Capital stock				Capital surplus				Retained earnings				Treasury stock				Total shareholders’ equity				Net unrealized gains (losses) on available- for-sale securities				Net deferred gains (losses) on hedging instruments
Balance at the beginning of the period			2,141,513				770,277				11,998,157				(451,288	)			14,458,659				1,615,060				(81,145	)
Changes during the period
Cash dividends											(380,528	)							(380,528	)
Profits attributable to owners of parent											1,116,496								1,116,496
Repurchase of treasury stock															(450,018	)			(450,018	)
Disposal of treasury stock							0								2,118				2,118
Retirement of treasury stock							(418,097	)							418,097				—
Reversal of land revaluation excess											5,102								5,102
Changes in subsidiaries’ equity							1,510												1,510
Change from transaction under common control involving overseas subsidiary							(4,028	)											(4,028	)
Net changes of items other than shareholders’ equity																							(814,104	)			(305,933	)
Total changes during the period			—				(420,616	)			741,070				(29,802	)			290,651				(814,104	)			(305,933	)
Balance at the end of the period			2,141,513				349,661				12,739,228				(481,091	)			14,749,310				800,955				(387,079	)
		(in millions of yen)
		Accumulated other comprehensive income
		Land revaluation excess				Foreign currency translation adjustments				Remeasurements of defined benefit plans				Debt value adjustments of foreign subsidiaries and affiliates				Total accumulated other comprehensive income				Non- controlling interests				Total net assets
Balance at the beginning of the period			140,628				734,588				193,865				(37,883	)			2,565,114				964,471				17,988,245
Changes during the period
Cash dividends																											(380,528	)
Profits attributable to owners of parent																											1,116,496
Repurchase of treasury stock																											(450,018	)
Disposal of treasury stock																											2,118
Retirement of treasury stock																											—
Reversal of land revaluation excess																											5,102
Changes in subsidiaries’ equity																											1,510
Change from transaction under common control involving overseas subsidiary																											(4,028	)
Net changes of items other than shareholders’ equity			(5,102	)			1,058,251				(53,380	)			37,136				(83,133	)			77,094				(6,039	)
Total changes during the period			(5,102	)			1,058,251				(53,380	)			37,136				(83,133	)			77,094				284,612
Balance at the end of the period			135,526				1,792,840				140,485				(747	)			2,481,980				1,041,565				18,272,857

 

10

Mitsubishi UFJ Financial Group, Inc.

 

(4) Consolidated Statements of Cash Flows

 

(in millions of yen)		For the fiscal year     ended March 31, 2022				For the fiscal year     ended March 31, 2023
Cash flows from operating activities:
Profits before income taxes			1,489,857				1,569,923
Depreciation and amortization			345,199				314,708
Impairment losses			174,133				18,167
Amortization of goodwill			18,051				19,928
Equity in losses (gains) of equity method investees			(441,595	)			(425,829	)
Losses on pension buyout			—				78,111
Increase (decrease) in allowance for credit losses			96,652				(32,780	)
Increase (decrease) in reserve for bonuses			15,217				71,053
Increase (decrease) in reserve for bonuses to directors			(18	)			1,727
Increase (decrease) in reserve for stocks payment			(2,477	)			866
Decrease (increase) in net defined benefit assets			(106,980	)			(53,774	)
Increase (decrease) in net defined benefit liabilities			645				123
Increase (decrease) in reserve for retirement benefits to directors			(60	)			17
Increase (decrease) in reserve for loyalty award credits			(540	)			(213	)
Increase (decrease) in reserve for contingent losses			47,681				(64,789	)
Interest income recognized on statement of income			(2,587,445	)			(5,298,944	)
Interest expenses recognized on statement of income			543,957				2,372,735
Losses (gains) on securities			(225,395	)			481,930
Losses (gains) on money held in trust			21,347				6,088
Foreign exchange losses (gains)			(2,788,581	)			(2,255,057	)
Losses (gains) on sales of fixed assets			(16,862	)			918
Net decrease (increase) in trading assets			3,575,115				(42,347	)
Net increase (decrease) in trading liabilities			(2,045,592	)			2,219,838
Adjustment of unsettled trading accounts			793,285				(651,611	)
Net decrease (increase) in loans and bills discounted			(2,101,763	)			(4,211,367	)
Net increase (decrease) in deposits			3,015,798				7,118,314
Net increase (decrease) in negotiable certificates of deposit			2,822,861				2,869,240
Net increase (decrease) in borrowed money (excluding subordinated borrowings)			573,366				(6,264,775	)
Net decrease (increase) in call loans and bills bought and others			1,110,169				(1,804,036	)
Net decrease (increase) in receivables under securities borrowing transactions			(977,957	)			153,662
Net increase (decrease) in call money and bills sold and others			2,166,231				12,597,828
Net increase (decrease) in commercial papers			288,342				179,650
Net increase (decrease) in payables under securities lending transactions			227,626				83,926
Net decrease (increase) in foreign exchanges (assets)			(365,896	)			(3,533	)
Net increase (decrease) in foreign exchanges (liabilities)			75,450				389,405
Net increase (decrease) in short-term bonds payable			273,801				(269,304	)
Net increase (decrease) in issuance and redemption of unsubordinated bonds payable			917,007				2,595,987
Net increase (decrease) in due to trust accounts			1,602,553				(1,121,708	)
Interest income (cash basis)			2,657,591				4,923,477
Interest expenses (cash basis)			(546,500	)			(2,098,922	)
Others			(555,008	)			440,666
Sub-total			10,089,269				13,909,305
Income taxes			(300,616	)			(549,466	)
Refund of income taxes			51,246				71,934
Net cash provided by (used in) operating activities			9,839,899				13,431,773

 

11

Mitsubishi UFJ Financial Group, Inc.

 

(in millions of yen)		For the fiscal year     ended March 31, 2022				For the fiscal year     ended March 31, 2023
Cash flows from investing activities:
Purchases of securities			(97,893,977	)			(103,993,341	)
Proceeds from sales of securities			60,280,489				58,441,528
Proceeds from redemption of securities			36,458,516				36,986,139
Payments for increase in money held in trust			(1,165,165	)			(1,040,424	)
Proceeds from decrease in money held in trust			1,110,030				1,075,874
Purchases of tangible fixed assets			(101,275	)			(118,147	)
Purchases of intangible fixed assets			(282,728	)			(283,478	)
Proceeds from sales of tangible fixed assets			82,256				46,360
Proceeds from sales of intangible fixed assets			1,277				180
Payments for transfer of businesses			(724,428	)			—
Proceeds from transfer of businesses			33,038				—
Payments for acquisition of subsidiaries’ equity affecting the scope of consolidation			(1,165	)			—
Payments for sales of subsidiaries’ equity affecting the scope of consolidation			—				(1,784,755	)
Proceeds from sales of subsidiaries’ equity affecting the scope of consolidation			2,813				—
Others			(2,409	)			(5,032	)
Net cash provided by (used in) investing activities			(2,202,726	)			(10,675,096	)
Cash flows from financing activities:
Proceeds from subordinated borrowings			—				29,000
Repayments of subordinated borrowings			—				(28,000	)
Proceeds from issuance of subordinated bonds payable and bonds with warrants			226,091				670,246
Payments for redemption of subordinated bonds payable and bonds with warrants			(789,480	)			(787,754	)
Proceeds from issuance of common stock to non-controlling shareholders			3,569				227
Dividends paid by MUFG			(334,619	)			(380,447	)
Dividends paid by subsidiaries to non-controlling shareholders			(32,622	)			(32,050	)
Purchases of treasury stock			(158,515	)			(450,153	)
Proceeds from sales of treasury stock			5,399				2,237
Payments for purchases of subsidiaries’ equity not affecting the scope of consolidation			(250	)			(444	)
Net cash provided by (used in) financing activities			(1,080,428	)			(977,138	)
Effect of foreign exchange rate changes on cash and cash equivalents			1,228,889				1,089,328
Net increase (decrease) in cash and cash equivalents			7,785,634				2,868,867
Cash and cash equivalents at the beginning of the period			102,980,711				110,763,205
Decrease in cash and cash equivalents resulting from exclusion of subsidiaries from consolidation			(3,109	)			(1,900	)
Decrease in cash and cash equivalents resulting from absorption via corporate separation			(30	)			—
Cash and cash equivalents at the end of the period			110,763,205				113,630,172

 

12

Mitsubishi UFJ Financial Group, Inc.

 

Notes to the Consolidated Financial Statements

(Notes on Going-Concern Assumption)

None.

(Changes in Accounting Policies)

  (Implementation Guidance on Accounting Standard for Fair Value Measurement)

Accounting Standard Board of Japan (“ASBJ”) Implementation Guidance No. 31, “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ, June 17, 2021) (“Implementation Guidance on Fair Value Measurement”), has been applied from the beginning of the fiscal year ended March 31, 2023. In accordance with the transitional treatment set forth in paragraph 27-2 of the Implementation Guidance on Fair Value Measurement, MUFG has applied new accounting policies based on the Implementation Guidance on Fair Value Measurement prospectively.

There is no impact on our consolidated financial statements as of the end of and for the fiscal year ended March 31, 2023 due to the application of this Guidance.

(Changes in Presentation of Financial Information)

“Refund of income taxes”, which was previously included in “Income taxes” on a net basis for the fiscal year ended March 31, 2022 is presented separately on a disaggregated basis from the fiscal year ended March 31, 2023 due to the increased significance in the recorded amount. In order to reflect this change in presentation, the consolidated financial statements for the fiscal year ended March 31 have been reclassified.

As a result, “Income taxes” of ¥391,634 million previously presented in the consolidated statements of income for the fiscal year ended March 31 has been disaggregated and reclassified into “Current” of ¥413,935 million and “Refund” of ¥(22,300) million.

(Additional Information)

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

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

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

When calculating allowance for credit losses, MUFG Bank, Ltd. (“the Bank”), our principal consolidated domestic banking subsidiary, determines expected loss rates primarily by calculating a rate of loss based on a historical average of the credit loss rate or a historical average of the default probability derived from actual credit loss experience or actual bankruptcy experience and making necessary adjustments based on future projections and other factors. The subsidiary makes such adjustments based on future loss projections and other factors to loss rates calculated based on historical loss experience, when and to the extent such adjustments are deemed appropriate, by taking into account the rate of increase in the credit loss rate or the default probability in a more recent period, additional expected losses and other factors, especially in light of the uncertain business environment caused by such factors as the prolonged COVID-19 pandemic and Russia-Ukraine situation. The amount of impact of these adjustments was ¥69,569 million as of March 31, 2023 (¥77,572 million as of March 31, 2022).

 

13

Mitsubishi UFJ Financial Group, Inc.

 

In addition, certain overseas subsidiaries which apply Generally Accepted Accounting Principles in the United States (“U.S. GAAP”) have adopted Accounting Standards Codification (“ASC”) Topic 326, “Financial Instruments—Credit losses,” and provide for allowance for credit losses by estimating credit losses currently expected for the remaining term of the relevant contracts. Expected credit losses are calculated using a quantitative model that reflects economic forecast scenarios based on macroeconomic variables. The calculation process includes determination of macroeconomic variables used in multiple economic forecast scenarios and the weightings applied to each economic forecast scenario. Expected credit losses are adjusted for qualitative factors to compensate for expected credit losses that are not reflected in a quantitative model.

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

The outlook relating to the COVID-19 pandemic and the Russia-Ukraine situation, which are expected to further impact our counterparties’ operating environment and the economic environment, remains subject to significant uncertainty. Accordingly, we make certain assumptions, including that, although the impact of the COVID-19 pandemic will continue, restrictions on economic activity will be eased globally, resulting in a gradual decrease in the economic impact, and that the uncertainty in the business environment caused by the Russia-Ukraine situation will remain. The recorded allowance for credit losses represents our best estimation made in a manner designed to ensure objectivity and rationality.

These assumptions change to reflect developments in the economic environment, and changes in the assumptions may result in an increase or decrease in the allowance for credit losses in the following fiscal year.

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

In connection with the planned sale of the shares in MUB, MUAH recognized an aggregate of ¥952,590 million of losses for the fiscal year ended December 31, 2022, primarily in accordance with ASC Topic 326, “Financial Instruments—Credit losses,” and ASC Topic 310, “Receivables,” issued by the FASB. The aggregate losses reflected ¥555,421 million of valuation losses related to securities held for sale recorded as Other operating expenses and ¥400,511 million of valuation losses related to loans held for sale recorded as Other ordinary expenses. All of the losses recognized by MUAH are reflected in MUFG’s consolidated financial statements as of the end of and for the fiscal year ending March 31, 2023.

 

14

Mitsubishi UFJ Financial Group, Inc.

 

  (Sale of MUFG Union Bank, N.A. and Transfer of Certain Businesses of MUFG Union Bank, N.A.)

On December 1, 2022, MUFG Americas Holdings Corporation (“MUAH”), a subsidiary of MUFG whose financial statements as of the end of and for the fiscal year ended December 31, 2022 have been consolidated with MUFG’s financial statements, completed the sale of all of the shares in MUFG Union Bank, N.A. (“MUB”) held by MUAH to U.S. Bancorp (“USB”) (hereinafter referred to as the “Share Transfer”).

The MUB businesses that were transferred to USB through the Share Transfer excluded the GCIB (Global Corporate & Investment Banking) business (with certain exceptions as agreed to by the parties, including certain deposits of the GCIB business that are retained by MUB), the Global Markets business to the extent related to the GCIB business, which consisted of transactions with clients and investors, and certain assets and liabilities, etc. that were part of shared middle and back office functions, etc. Such businesses, and the customer assets and liabilities, etc. related to these businesses (including related transactions with such customers) were transferred to the Bank and MUAH prior to the Share Transfer for consideration paid in the form of cash.

1. Business divestiture

(1) Outline of the business divestiture

(a) Name of the acquiring entity

 U.S. Bancorp

(b) Description of the divested businesses

 Retail and Commercial Banking businesses of MUB

(c) Main objectives of the business divestiture

 MUFG has viewed the U.S. regional banking business as an important business for the group’s strategy. At the same time, given MUB’s current business environment, including the need for increased technology investments as part of digital transformation, a certain scale is required to maintain and strengthen MUB’s competitiveness.

 Under these circumstances, MUFG concluded that transferring MUB to USB, a major U.S. bank with a strong business foundation, would be the most appropriate decision that was expected to lead to providing higher quality financial services to customers and communities and unlock MUB’s potential franchise value. From the perspective of MUFG’s optimization of management resources under the current medium-term business plan, MUFG determined that the sale of MUB and the shift of focus to corporate transactions in the United States would help maximize shareholder value through an increase in capital efficiency.

(d) Date of the business divestiture

 December 1, 2022

(e) Legal form of the business divestiture

 Transfer of shares for consideration paid in the form of cash and shares

(2) Overview of the accounting treatment applied

(a) Amount of gains or losses on the Share Transfer

 Gains on sales of shares of subsidiaries: ¥699,509 million

(b) Amounts of assets and liabilities related to the divested businesses

 Assets: ¥13,639,869 million (including loans of ¥7,572,598 million and securities of ¥3,123,184 million)

 Liabilities: ¥12,981,874 million (including deposits of ¥11,801,118 million)

The above amounts of assets and liabilities related to the divested businesses are provisional since the price adjustments have not been completed.

 

15

Mitsubishi UFJ Financial Group, Inc.

 

(c) Accounting treatment

 The difference between the sale price and the consolidated book value of the transferred shares is recorded in extraordinary gains as gains on sales of shares of subsidiaries.

(3) Name of the reporting segment in which the divested businesses were mainly included

Global Commercial Banking Business Group

 

(4)

Approximate amount of income or loss related to the divested businesses recorded in the consolidated statement of income for the fiscal year ended March 31, 2023

 Ordinary income: ¥422,914 million

 Ordinary loss: ¥849,624 million

(5) Overview of continued involvement related to the business divestiture

 MUFG received shares of USB as part of the consideration for the Share Transfer.

 In addition, the Bank and USB have entered into a Transitional Service Agreement and a Reverse Transitional Service Agreement with an aim for both the Bank and MUB to be able to smoothly continue to provide high quality financial services even after the Share Transfer. The Bank provides and receives certain services based on such agreements.

 In addition, as of the end of the reporting period (ended March 31, 2023), the corporate credit card business for GCIB business customers and certain Japanese customers was expected to be transferred from MUB to the Bank, subject to contractual conditions precedent. Such transfer was completed subsequent to the reporting period.

2. Transaction under common control

(1) Overview and objectives of the business transfer

 The GCIB business (with certain exceptions as agreed to by the parties, including certain deposits of the GCIB business that are retained by MUB), the Global Markets business to the extent related to the GCIB business, which consisted of transactions with clients and investors, and certain assets and liabilities, etc. that were part of shared middle and back office functions, etc., were transferred to the Bank and MUAH prior to the Share Transfer by the end of November 2022.

 The MUFG group continues to view the U.S. market as a strategically important market after the Share Transfer and, through this transaction, aims to optimize management resources with a strategic focus on corporate transactions where the MUFG group believes it can leverage its strengths.

(2) Overview of the accounting treatment applied

 The transaction is treated as a transaction under common control under ASBJ Statement No. 21, “Accounting Standard for Business Combinations” (ASBJ, January 16, 2019), and ASBJ Guidance No. 10, “Implementation Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ, January 16, 2019).

(3) Amounts of assets and liabilities transferred to the Bank in connection with the business transfer

 Assets: ¥3,310,900 million (including loans of ¥2,741,641 million)

 Liabilities: ¥503,791 million (including acceptances and guarantees of ¥337,944 million)

 The above amounts are provisional since the price adjustments have not been completed.

  (Provisional closing of accounts of a significant equity-method affiliate for the fiscal year ending March 31, 2024)

Morgan Stanley, a significant equity-method affiliate of MUFG, closes its financial accounts based on a fiscal year-end of December 31, and the equity method of accounting is applied to its consolidated financial statements as of the fiscal year-end. However, from the perspective of providing financial information in a more timely manner, MUFG has decided to make modifications so that the equity method of accounting will be applied to Morgan Stanley based on a provisional closing of accounts to be implemented as of March 31, which is the consolidated fiscal year-end of MUFG, effective from the first quarter of the fiscal year ending March 31, 2024.

Accordingly, for the fiscal year ending March 31, 2024, Morgan Stanley’s financial results for the 15-month period from January 1, 2023 to March 31, 2024 will be reflected in MUFG’s consolidated financial statements.

 

16

Mitsubishi UFJ Financial Group, Inc.

 

(Segment Information)

 

1.	Information on net revenue, operating profit (loss), and fixed assets for each reporting segment

For the Fiscal Year Ended March 31, 2023

 

		(in millions of yen)
		Digital Service Business Group				Retail & Commercial Banking Business Group				Japanese Corporate & Investment Banking Business Group				Global Commercial Banking Business Group				Asset Management & Investor Services Business Group				Global Corporate & Investment Banking Business Group				Total of Customer Business				Global Markets Business Group				Other				Total
Net revenue			747,572				614,056				805,684				870,584				360,754				712,863				4,111,515				408,897				(4,657	)			4,515,756
Operating expenses			533,131				456,776				331,063				580,318				255,623				336,876				2,493,790				271,779				172,603				2,938,173
Operating profit (loss)			214,440				157,280				474,621				290,265				105,130				375,987				1,617,725				137,118				(177,261	)			1,577,583
Fixed assets at period end			156,944				201,909				161,198				1,135				18,822				171,172				711,182				110,630				546,288				1,368,101

(Notes)

 

1.

“Net revenue” in the above table is used in lieu of net sales generally used by Japanese non-financial companies.

 

2.

“Net revenue” includes net interest income, trust fees, net fees and commissions, net trading profit, and net other operating profit.

 

3.

“Operating expenses” includes personnel expenses and premise expenses.

 

4.

“Fixed assets at period end” for each reporting segment in the above table represent those related to the Bank and Mitsubishi UFJ Trust and Banking Corporation. Those fixed assets and consolidation adjustments related to MUFG and its other consolidated subsidiaries, which are not allocated to reporting segments, were ¥1,210,195 million. With respect to such fixed assets not allocated to reporting segments, certain related expenses are allocated to each reporting segment on a reasonable basis.

 

2.	Reconciliation of the total operating profit in each of the above tables to the ordinary profit in the consolidated statement of income for the corresponding fiscal year period

 

Operating profit		For the fiscal year ended March 31, 2023
Total operating profit of reporting segments			1,577,583
Operating profit of consolidated subsidiaries excluded from reporting segments			(1,420	)
Provision for general allowance for credit losses			(36,608	)
Credit related expenses			(746,353	)
Gains on reversal of reserve for contingent losses included in credit costs			11,550
Gains on loans written-off			96,569
Net gains on equity securities and other securities			288,000
Equity in earnings of equity method investees			425,829
Others			(594,421	)
Ordinary profit in the consolidated statement of income			1,020,728

(Note)

In connection with the planned sale of the shares in MUB, an aggregate of ¥952,590 million of losses were recognized primarily in accordance with ASC Topic 326, “Financial Instruments—Credit losses,” and ASC Topic 310, “Receivables.” These losses consist mainly of ¥555,421 million of valuation losses related to securities held for sale, which are included in “Others”, and ¥400,511 million of valuation losses related to loans held for sale, which are included in “Credit related expenses.”

 

17

Mitsubishi UFJ Financial Group, Inc.

 

(Per Share Information)

 

		For the fiscal year ended March 31, 2023
Total equity per common share			¥1,433.11
Basic earnings per common share			¥90.72
Diluted earnings per common share			¥90.41

(Notes)

 

1.	The bases for the calculation of basic earnings per common share and diluted earnings per common share for the periods indicated were as follows:

 

				For the fiscal year ended March 31, 2023
Basic earnings per common share
Profits attributable to owners of parent		million yen		1,116,496
Profits not attributable to common shareholders		million yen		—
Profits attributable to common shareholders of parent		million yen		1,116,496
Average number of common shares during the period		thousand shares		12,305,714
Diluted earnings per common share
Adjustment to profits attributable to owners of parent		million yen		(3,912)
Adjustment related to dilutive shares of consolidated subsidiaries and others		million yen		(3,912)
Increase in common shares		thousand shares		—
Description of antidilutive securities which were not included in the calculation of diluted earnings per share				Share subscription rights issued by equity method affiliates: Morgan Stanley Stock options and others - 3 million units as of December 31, 2022

 

2.	The bases for the calculation of total equity per common share for the period indicated were as follows:

 

				As of March 31, 2023
Total equity		million yen		18,272,857
Deductions from total equity:		million yen		1,041,565
Non-controlling interests		million yen		1,041,565
Total equity attributable to common shares		million yen		17,231,291
Number of common shares at period end used for the calculation of total equity per common share		thousand shares		12,023,645

 

18