Edgar Filing: MITSUBISHI UFJ FINANCIAL GROUP INC

Company name:

Mitsubishi UFJ Financial Group, Inc.

Stock exchange listings: Tokyo, Nagoya, New York

Code number:

URL http://www.mufg.jp/

Representative:

Nobuyuki Hirano, President & Group CEO

For inquiry:

Kazutaka Yoneda, General Manager - Financial Planning Division / Financial Accounting Office

TEL (03) 3240-3110

FORM 6-K

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 February 2016

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):

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: February 1, 2016


Mitsubishi UFJ Financial Group, Inc.

By:		/s/ Yasuo Matsumoto
Name:		Yasuo Matsumoto
Title:		Chief Manager, Documentation & Corporate Secretary Department, Corporate Administration Division

LOGO

Consolidated Summary Report

<under Japanese GAAP>

for the nine months ended December 31, 2015

February 1, 2016

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

1. Consolidated Financial Data For the Nine Months ended December 31, 2015

(1) Results of Operations


	(% represents the change from the same period in the previous fiscal year)
	Ordinary Income				Ordinary Profits					Profits Attributable to Owners of Parent
Nine months ended	million yen		%		million yen		%			million yen		%
December 31, 2015		4,290,963		0.7		1,340,801		(9.7	)		852,279		(8.1	)
December 31, 2014		4,260,328		11.7		1,484,363		17.8			926,971		18.0

(*)	Comprehensive income December 31, 2015: 433,130 million yen (81.7) %; December 31, 2014: 2,365,619 million yen 93.4 %


	Basic earnings per share		Diluted earnings per share
Nine months ended	yen		yen
December 31, 2015		61.23		60.95
December 31, 2014		65.50		65.20

(2) Financial Conditions


	Total Assets		Total Net Assets		*Equity-to-asset ratio ()**
As of	million yen		million yen		%
December 31, 2015		295,777,179		17,239,626		5.2
March 31, 2015		286,149,768		17,287,533		5.4

(Reference) Shareholders’ equity as of December 31, 2015: 15,269,453 million yen; March 31, 2015: 15,317,940 million yen

(*)	“Equity-to-asset ratio” is computed under the formula shown below

(Total net assets - Subscription rights to shares - Non-controlling interests) / Total assets

2. Dividends on Common Stock


	Dividends per Share
	1st quarter-end		2nd quarter-end		3rd quarter-end		Fiscal year-end		Total
Fiscal year	yen		yen		yen		yen		yen
ended March 31, 2015		—		9.00		—		9.00		18.00
ending March 31, 2016		—		9.00		—		——		——
ending March 31, 2016 (Forecast)		——		——		——		9.00		18.00

(*)	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, 2016 (Consolidated)

MUFG has the target of 950.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2016. (There is no change to our earnings target released on May 15, 2015.)

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.

Notes

(1)	Changes in significant subsidiaries during the period: No

(2)	Adoption of any particular accounting methods for quarterly consolidated financial statements: No

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

(A) Changes in accounting policies due to revision of accounting standards: No

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

(D) Restatements: No

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


(A) Total stocks outstanding including treasury stocks:	December 31, 2015	14,168,853,820 shares
	March 31, 2015	14,168,853,820 shares
(B) Treasury stocks:	December 31, 2015	380,246,747 shares
	March 31, 2015	151,014,803 shares
(C) Average outstanding stocks:	Nine months ended December 31, 2015	13,918,899,596 shares
	Nine months ended December 31, 2014	14,152,425,073 shares

ø Disclosure regarding the execution of the quarterly review process

This “Consolidated Summary Report” (Quarterly “Tanshin”) is outside the scope of the external auditor’s quarterly review procedure which is required by “Financial Instruments and Exchange Act”. Therefore, the quarterly review process has not been completed as of this disclosure in the “Consolidated Summary Report”.

ø Notes for using forecasted information etc.

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.

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. To date, we have published U.S. GAAP financial results only on a semiannual and annual basis, and currently do not expect to publish U.S. GAAP financial results for the period reported in this financial summary report.

Mitsubishi UFJ Financial Group, Inc.

(Appendix)

Contents of Appendix


1. Consolidated Financial Statements			2
(1) Consolidated Balance Sheets			2
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			4
(3) Notes on Going-Concern Assumption			6
(4) Notes for Material Changes in Shareholders’ Equity			6
Supplemental Information:

“Selected Financial Information under Japanese GAAP for the Nine Months Ended December 31, 2015”

Mitsubishi UFJ Financial Group, Inc.

1. Consolidated Financial Statements

(1) Consolidated Balance Sheets


(in millions of yen)	As of March 31, 2015			As of December 31, 2015
Assets:
Cash and due from banks		40,488,318			50,621,650
Call loans and bills bought		604,625			504,704
Receivables under resale agreements		7,342,335			7,240,433
Receivables under securities borrowing transactions		4,633,544			6,253,417
Monetary claims bought		4,570,712			4,931,258
Trading assets		20,810,617			22,860,530
Money held in trust		700,218			724,433
Securities		73,538,191			65,233,402
Loans and bills discounted		109,368,340			113,348,181
Foreign exchanges		2,187,311			1,961,574
Other assets		10,119,936			10,116,082
Tangible fixed assets		1,352,727			1,357,124
Intangible fixed assets		1,297,277			1,238,600
Net defined benefit assets		504,761			569,857
Deferred tax assets		114,919			98,931
Customers’ liabilities for acceptances and guarantees		9,511,714			9,619,611
Allowance for credit losses		(995,784	)		(902,614	)

Total assets		286,149,768			295,777,179

Liabilities:
Deposits		153,357,410			156,099,498
Negotiable certificates of deposit		16,073,850			15,180,248
Call money and bills sold		3,600,104			4,647,829
Payables under repurchase agreements		21,899,506			24,960,980
Payables under securities lending transactions		8,205,350			10,795,183
Commercial papers		2,179,634			2,418,612
Trading liabilities		15,521,917			16,048,128
Borrowed money		13,866,196			14,750,539
Foreign exchanges		1,496,476			2,056,870
Short-term bonds payable		789,512			876,985
Bonds payable		8,141,713			8,312,697
Due to trust accounts		3,183,295			2,469,508
Other liabilities		9,530,371			8,966,841
Reserve for bonuses		90,360			49,898
Reserve for bonuses to directors		454			276
Net defined benefit liabilities		62,121			57,538
Reserve for retirement benefits to directors		1,086			1,032
Reserve for loyalty award credits		15,375			16,940
Reserve for contingent losses		204,790			151,404
Reserves under special laws		3,771			4,121
Deferred tax liabilities		988,550			916,318
Deferred tax liabilities for land revaluation		138,669			136,487
Acceptances and guarantees		9,511,714			9,619,611

Total liabilities		268,862,234			278,537,553

Mitsubishi UFJ Financial Group, Inc.


(in millions of yen)	As of March 31, 2015			As of December 31, 2015
Net assets:
Capital stock		2,141,513			2,141,513
Capital surplus		1,428,403			1,426,371
Retained earnings		7,860,410			8,485,337
Treasury stock		(101,661	)		(298,917	)

Total shareholders’ equity		11,328,666			11,754,303

Net unrealized gains (losses) on other securities		2,835,091			2,419,899
Net deferred gains (losses) on hedging instruments		83,194			200,330
Land revaluation excess		172,350			172,686
Foreign currency translation adjustments		951,547			769,541
Remeasurements of defined benefit plans		(52,909	)		(47,308	)

Total accumulated other comprehensive income		3,989,274			3,515,149

Subscription rights to shares		8,271			8,034
Non-controlling interests		1,961,322			1,962,139

Total net assets		17,287,533			17,239,626

Total liabilities and net assets		286,149,768			295,777,179

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 nine months ended December 31, 2014		For the nine months ended December 31, 2015
Ordinary income		4,260,328		4,290,963
Interest income		2,047,164		2,071,759
Interest on loans and bills discounted		1,342,778		1,361,475
Interest and dividends on securities		458,696		473,210
Trust fees		80,331		84,658
Fees and commissions		1,080,952		1,114,399
Trading income		252,093		257,422
Other business income		354,015		367,458
Other ordinary income		445,770		395,265
Ordinary expenses		2,775,965		2,950,161
Interest expenses		458,565		475,793
Interest on deposits		214,760		218,818
Fees and commissions		146,756		159,523
Other business expenses		96,253		163,831
General and administrative expenses		1,917,061		1,941,117
Other ordinary expenses		157,329		209,895

Ordinary profits		1,484,363		1,340,801

Extraordinary gains		12,514		2,477
Gains on disposition of fixed assets		2,871		2,477
Gains on change in equity		9,643		—
Extraordinary losses		86,095		45,992
Losses on disposition of fixed assets		5,496		7,100
Losses on impairment of fixed assets		5,997		2,528
Provision for reserve for contingent liabilities from financial instruments transactions		669		349
Losses on change in equity		33,291		36,013
Settlement package		37,097		—
Losses on sales of equity securities of subsidiaries		3,542		—

Income before income taxes and others		1,410,782		1,297,286

Income taxes—current		306,759		270,583
Income taxes—deferred		76,465		84,256

Total taxes		383,225		354,840

Profits		1,027,556		942,446

Profits attributable to non-controlling interests		100,585		90,167

Profits attributable to owners of parent		926,971		852,279

Mitsubishi UFJ Financial Group, Inc.

Consolidated Statements of Comprehensive Income


(in millions of yen)	For the nine months ended December 31, 2014			For the nine months ended December 31, 2015
Profits		1,027,556			942,446
Other comprehensive income
Net unrealized gains (losses) on other securities		1,062,871			(418,271	)
Net deferred gains (losses) on hedging instruments		112,099			114,314
Land revaluation excess		—			297
Foreign currency translation adjustments		163,705			(190,477	)
Remeasurements of defined benefit plans		7,480			4,820
Share of other comprehensive income of associates accounted for using equity method		(8,093	)		(20,000	)

Total other comprehensive income		1,338,062			(509,315	)

Comprehensive income		2,365,619			433,130

(Comprehensive income attributable to)
Comprehensive income attributable to owners of parent		2,255,609			366,944
Comprehensive income attributable to non-controlling interests		110,010			66,185

Mitsubishi UFJ Financial Group, Inc.

(3)	Notes on Going-Concern Assumption

Not applicable

(4)	Notes for Material Changes in Shareholders’ Equity

Not applicable

Selected Financial Information

under Japanese GAAP

For the Nine Months Ended December 31, 2015


Mitsubishi UFJ Financial Group, Inc.

Mitsubishi UFJ Financial Group, Inc.

[Contents]



1. Financial Results	[ MUFG Consolidated ]1[ BTMU and MUTB Combined ]234	——	1
	[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

2. Non Performing Loans Based on the Financial Reconstruction Law	[ BTMU and MUTB Combined including Trust Account ]	——	5
	[ BTMU Non-consolidated ][ MUTB Non-consolidated ]
	[ MUTB Non-consolidated : Trust Account ]

3. Securities	[ MUFG Consolidated ]	——	6
	[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

4. ROE	[ MUFG Consolidated ]	——	9

5. Average Interest Rate Spread	[ BTMU and MUTB Combined ]	——	10
	[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

6. Loans and Deposits	[ BTMU and MUTB Combined ]	——	11
	[ BTMU Non-consolidated ][ MUTB Non-consolidated ]

7. Statements of Trust Assets and Liabilities	[ MUTB Non-consolidated ]	——	12

(Reference)

Exposure to “Securitized Products and Related Investments”		——	13

(*1)	“MUFG” means Mitsubishi UFJ Financial Group, Inc.

(*2)	“BTMU” means The Bank of Tokyo-Mitsubishi UFJ, Ltd.

(*3)	“MUTB” means Mitsubishi UFJ Trust and Banking Corporation.

(*4)	“BTMU and MUTB Combined” means simple sum of “BTMU” and “MUTB” without consolidation processes.

Mitsubishi UFJ Financial Group, Inc.

1. Financial Results

MUFG Consolidated


	(in billions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2015 (A)			December 31, 2014 (B)			Increase (Decrease) (A) - (B)
Gross profits		3,096.5			3,113.0			(16.5	)
Gross profits before credit costs for trust accounts		3,096.5			3,112.6			(16.0	)
Net interest income		1,596.0			1,588.7			7.2
Trust fees		84.6			80.3			4.3
Credit costs for trust accounts (1)		0.0			0.4			(0.4	)
Net fees and commissions		954.8			934.1			20.6
Net trading profits		257.4			252.0			5.3
Net other business profits		203.6			257.7			(54.1	)
Net gains (losses) on debt securities		93.5			129.8			(36.3	)
General and administrative expenses		1,927.6			1,894.2			33.3
Amortization of goodwill		12.5			12.2			0.3
Net business profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill		1,181.5			1,230.6			(49.0	)
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		1,168.9			1,218.3			(49.3	)
Provision for general allowance for credit losses (2)		—			—			—
Net business profits*		1,168.9			1,218.8			(49.8	)
Net non-recurring gains (losses)		171.8			265.5			(93.6	)
Credit costs (3)		(136.7	)		(101.8	)		(34.9	)
Losses on loan write-offs		(97.1	)		(87.1	)		(9.9	)
Provision for specific allowance for credit losses		—			—			—
Other credit costs		(39.6	)		(14.7	)		(24.9	)
Reversal of allowance for credit losses (4)		34.7			84.4			(49.6	)
Reversal of reserve for contingent losses included in credit costs (5)		—			2.1			(2.1	)
Gains on loans written-off (6)		42.8			45.6			(2.7	)
Net gains (losses) on equity securities		63.6			78.9			(15.3	)
Gains on sales of equity securities		85.6			93.2			(7.5	)
Losses on sales of equity securities		(13.2	)		(10.6	)		(2.6	)
Losses on write-down of equity securities		(8.7	)		(3.6	)		(5.1	)
Profits (losses) from investments in affiliates		191.3			161.5			29.7
Other non-recurring gains (losses)		(24.0	)		(5.4	)		(18.5	)

Ordinary profits		1,340.8			1,484.3			(143.5	)

Net extraordinary gains (losses)		(43.5	)		(73.5	)		30.0
Net gains (losses) on change in equity		(36.0	)		(23.6	)		(12.3	)
Settlement package		—			(37.0	)		37.0
Income before income taxes and others		1,297.2			1,410.7			(113.4	)
Income taxes-current		270.5			306.7			(36.1	)
Income taxes-deferred		84.2			76.4			7.7
Total taxes		354.8			383.2			(28.3	)
Profits		942.4			1,027.5			(85.1	)
Profits attributable to non-controlling interests		90.1			100.5			(10.4	)

Profits attributable to owners of parent		852.2			926.9			(74.6	)

Note: * Net business profits = Banking subsidiaries’ net business profits + Other consolidated entities’ gross profits - Other consolidated entities’ general and administrative expenses - Other consolidated entities’ provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions
(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		(59.1	)		30.9			(90.0	)

Mitsubishi UFJ Financial Group, Inc.

BTMU and MUTB Combined


	(in billions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2015 (A)			December 31, 2014 (B)			Increase (Decrease) (A) - (B)
Gross profits		1,776.7			1,871.7			(94.9	)
Gross profits before credit costs for trust accounts		1,776.7			1,871.2			(94.5	)
Net interest income		1,027.9			1,064.5			(36.6	)
Trust fees		65.3			62.0			3.3
Credit costs for trust accounts (1)		0.0			0.4			(0.4	)
Net fees and commissions		426.6			434.4			(7.8	)
Net trading profits		96.0			112.1			(16.0	)
Net other business profits		160.6			198.4			(37.8	)
Net gains (losses) on debt securities		86.5			127.6			(41.0	)
General and administrative expenses		996.0			1,024.4			(28.4	)
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		780.6			846.7			(66.0	)
Provision for general allowance for credit losses (2)		—			—			—
Net business profits		780.7			847.2			(66.5	)
Net non-recurring gains (losses)		86.0			135.1			(49.1	)
Credit costs (3)		(67.9	)		(36.1	)		(31.7	)
Losses on loan write-offs		(26.9	)		(20.6	)		(6.2	)
Provision for specific allowance for credit losses		—			—			—
Other credit costs		(41.0	)		(15.5	)		(25.5	)
Reversal of allowance for credit losses (4)		80.8			109.3			(28.5	)
Reversal of reserve for contingent losses included in credit costs (5)		0.2			5.7			(5.5	)
Gains on loans written-off (6)		13.2			13.4			(0.1	)
Net gains (losses) on equity securities		56.3			52.3			3.9
Gains on sales of equity securities		77.1			67.3			9.7
Losses on sales of equity securities		(12.3	)		(9.2	)		(3.1	)
Losses on write-down of equity securities		(8.4	)		(5.7	)		(2.6	)
Other non-recurring gains (losses)		3.3			(9.5	)		12.8

Ordinary profits		866.7			982.4			(115.6	)

Net extraordinary gains (losses)		14.3			(44.8	)		59.2
Net gains (losses) on disposition of fixed assets		(4.4	)		(2.5	)		(1.8	)
Losses on impairment of fixed assets		(1.5	)		(5.2	)		3.6
Gains on sales of equity securities of subsidiaries		18.3			—			18.3
Gains on sales of equity securities of affiliates		1.9			—			1.9
Settlement package		—			(37.0	)		37.0
Income before income taxes		881.1			937.5			(56.4	)
Income taxes-current		198.4			258.1			(59.7	)
Income taxes-deferred		70.3			31.3			39.0
Total taxes		268.7			289.4			(20.7	)

Net income		612.3			648.0			(35.7	)


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		26.3			92.8			(66.4	)

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated


	(in billions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2015 (A)			December 31, 2014 (B)			Increase (Decrease) (A) - (B)
Gross profits		1,507.4			1,601.2			(93.8	)
Net interest income		890.6			932.7			(42.0	)
Net fees and commissions		356.3			368.4			(12.0	)
Net trading profits		77.2			85.4			(8.1	)
Net other business profits		183.0			214.6			(31.5	)
Net gains (losses) on debt securities		89.3			131.7			(42.3	)
General and administrative expenses		857.5			886.2			(28.6	)
Amortization of goodwill		0.2			0.2			0.0
Net business profits before provision for general allowance for credit losses and amortization of goodwill		650.0			715.2			(65.1	)
Net business profits before provision for general allowance for credit losses		649.8			715.0			(65.1	)
Provision for general allowance for credit losses (1)		—			—			—
Net business profits		649.8			715.0			(65.1	)
Net non-recurring gains (losses)		78.9			104.4			(25.5	)
Credit costs (2)		(67.8	)		(35.8	)		(31.9	)
Losses on loan write-offs		(26.8	)		(20.6	)		(6.1	)
Provision for specific allowance for credit losses		—			—			—
Other credit costs		(41.0	)		(15.1	)		(25.8	)
Reversal of allowance for credit losses (3)		79.6			96.1			(16.5	)
Reversal of reserve for contingent losses included in credit costs (4)		—			5.1			(5.1	)
Gains on loans written-off (5)		13.0			12.8			0.1
Net gains (losses) on equity securities		52.2			41.7			10.4
Gains on sales of equity securities		68.8			54.4			14.4
Losses on sales of equity securities		(9.2	)		(7.3	)		(1.9	)
Losses on write-down of equity securities		(7.3	)		(5.3	)		(2.0	)
Other non-recurring gains (losses)		1.8			(15.6	)		17.5

Ordinary profits		728.7			819.5			(90.7	)

Net extraordinary gains (losses)		15.0			(38.6	)		53.6
Net gains (losses) on disposition of fixed assets		(4.3	)		(0.9	)		(3.4	)
Losses on impairment of fixed assets		(0.9	)		(0.6	)		(0.3	)
Gains on sales of equity securities of subsidiaries		18.3			—			18.3
Gains on sales of equity securities of affiliates		1.9			—			1.9
Settlement package		—			(37.0	)		37.0
Income before income taxes		743.7			780.8			(37.0	)
Income taxes-current		167.6			214.3			(46.7	)
Income taxes-deferred		60.4			27.0			33.4
Total taxes		228.0			241.4			(13.3	)

Net income		515.7			539.4			(23.7	)


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)		24.8			78.3			(53.5	)

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated


	(in billions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2015 (A)			December 31, 2014 (B)			Increase (Decrease) (A) - (B)
Gross profits		269.3			270.4			(1.1	)
Gross profits before credit costs for trust accounts		269.3			269.9			(0.6	)
Trust fees		65.3			62.0			3.3
Credit costs for trust accounts (1)		0.0			0.4			(0.4	)
Net interest income		137.3			131.8			5.4
Net fees and commissions		70.2			66.0			4.2
Net trading profits		18.7			26.6			(7.8	)
Net other business profits		(22.4	)		(16.1	)		(6.2	)
Net gains (losses) on debt securities		(2.7	)		(4.0	)		1.2
General and administrative expenses		138.4			138.2			0.2
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		130.8			131.7			(0.8	)
Provision for general allowance for credit losses (2)		—			—			—
Net business profits		130.8			132.2			(1.3	)
Net non-recurring gains (losses)		7.1			30.6			(23.5	)
Credit costs (3)		(0.1	)		(0.3	)		0.1
Losses on loan write-offs		(0.1	)		(0.0	)		(0.1	)
Provision for specific allowance for credit losses		—			—			—
Other credit costs		(0.0	)		(0.3	)		0.3
Reversal of allowance for credit losses (4)		1.2			13.1			(11.9	)
Reversal of reserve for contingent losses included in credit costs (5)		0.2			0.5			(0.3	)
Gains on loans written-off (6)		0.2			0.5			(0.3	)
Net gains (losses) on equity securities		4.1			10.6			(6.4	)
Gains on sales of equity securities		8.2			12.9			(4.6	)
Losses on sales of equity securities		(3.1	)		(1.8	)		(1.2	)
Losses on write-down of equity securities		(1.0	)		(0.4	)		(0.6	)
Other non-recurring gains (losses)		1.4			6.0			(4.6	)

Ordinary profits		137.9			162.9			(24.9	)

Net extraordinary gains (losses)		(0.6	)		(6.2	)		5.5
Net gains (losses) on disposition of fixed assets		(0.0	)		(1.6	)		1.5
Losses on impairment of fixed assets		(0.5	)		(4.5	)		4.0
Income before income taxes		137.3			156.6			(19.3	)
Income taxes-current		30.7			43.7			(12.9	)
Income taxes-deferred		9.8			4.3			5.5
Total taxes		40.6			48.0			(7.3	)

Net income		96.6			108.6			(11.9	)


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		1.5			14.4			(12.9	)

Mitsubishi UFJ Financial Group, Inc.

2. Non Performing Loans Based on the Financial Reconstruction Law

BTMU and MUTB Combined including Trust Account


	(in billions of yen)
	As of December 31, 2015			As of March 31, 2015
Bankrupt or De facto Bankrupt		119.1			89.8
Doubtful		519.2			571.4
Special Attention		484.5			561.9

Non Performing Loans		1,122.9			1,223.2

Total loans		110,098.0			105,335.6

Non Performing Loans / Total loans		1.01	%		1.16	%

BTMU Non-consolidated
	(in billions of yen)
	As of December 31, 2015			As of March 31, 2015
Bankrupt or De facto Bankrupt		117.2			87.9
Doubtful		502.9			549.6
Special Attention		463.0			539.3

Non Performing Loans		1,083.1			1,176.9

Total loans		96,389.0			92,293.9

Non Performing Loans / Total loans		1.12	%		1.27	%

MUTB Non-consolidated
	(in billions of yen)
	As of December 31, 2015			As of March 31, 2015
Bankrupt or De facto Bankrupt		1.9			1.8
Doubtful		16.1			21.6
Special Attention		21.0			21.8

Non Performing Loans		39.0			45.4

Total loans		13,685.0			13,014.6

Non Performing Loans / Total loans		0.28	%		0.34	%

MUTB Non-consolidated: Trust Account
	(in billions of yen)
	As of December 31, 2015			As of March 31, 2015
Bankrupt or De facto Bankrupt		0.0			0.0
Doubtful		0.1			0.1
Special Attention		0.5			0.7

Non Performing Loans		0.6			0.9

Total loans		23.9			27.0

Non Performing Loans / Total loans		2.65	%		3.41	%

Mitsubishi UFJ Financial Group, Inc.

3. Securities

MUFG Consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

(in billions of yen)

As of December 31, 2015

As of March 31, 2015

Amount on
consolidated
balance sheet

Differences

Amount on
consolidated
balance sheet

Differences

Debt securities being held to maturity

4,003.1

60.9

4,133.6

53.7

(in billions of yen)

As of December 31, 2015

As of March 31, 2015

Amount on
consolidated
balance sheet

Differences

Amount on
consolidated
balance sheet

Differences

Other securities

60,760.9

3,491.2

69,336.2

4,133.2

Domestic equity securities

5,714.2

2,977.0

5,721.3

2,930.0

Domestic bonds

28,150.5

361.2

36,520.2

326.3

Other

26,896.1

152.9

27,094.6

876.8

Foreign equity securities

132.6

2.4

191.4

58.4

Foreign bonds

23,144.8

127.5

22,564.9

597.3

Other

3,618.6

23.0

4,338.2

220.9

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

(in billions of yen)

As of December 31, 2015

As of March 31, 2015

Amount on
balance sheet

Differences

Amount on
balance sheet

Differences

Debt securities being held to maturity

2,754.8

37.7

3,102.2

37.8

Stocks of subsidiaries and affiliates

843.4

(141.7

)

865.6

206.0

(in billions of yen)

As of December 31, 2015

As of March 31, 2015

Amount on
balance sheet

Differences

Amount on
balance sheet

Differences

Other securities

41,431.7

2,590.7

48,785.0

3,073.2

Domestic equity securities

4,654.1

2,310.7

4,673.9

2,291.3

Domestic bonds

22,313.0

305.6

29,967.1

275.0

Other

14,464.5

(25.6

)

14,143.9

506.7

Foreign equity securities

123.0

(2.9

)

178.5

53.5

Foreign bonds

11,923.5

19.4

10,872.2

352.5

Other

2,418.0

(42.1

)

3,093.0

100.5

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

The tables include beneficiary rights to the trust in “Monetary claims bought” in addition to “Securities”.

(in billions of yen)

As of December 31, 2015

As of March 31, 2015

Amount on
balance sheet

Differences

Amount on
balance sheet

Differences

Debt securities being held to maturity

—

24.9

0.0

Stocks of subsidiaries and affiliates

57.7

66.4

57.7

133.9

(in billions of yen)

As of December 31, 2015

As of March 31, 2015

Amount on
balance sheet

Differences

Amount on
balance sheet

Differences

Other securities

15,888.7

821.1

16,903.4

966.8

Domestic equity securities

1,113.6

599.1

1,081.8

556.0

Domestic bonds

5,864.0

54.7

6,479.4

50.3

Other

8,911.1

167.1

9,342.1

360.4

Foreign equity securities

0.0

0.0

Foreign bonds

8,144.8

103.2

8,455.7

243.3

Other

766.2

63.9

886.3

117.0

Mitsubishi UFJ Financial Group, Inc.

4. ROE

MUFG Consolidated


	(%)
	For the nine months ended December 31, 2015		For the nine months ended December 31, 2014
ROE		9.16		10.68

Mitsubishi UFJ Financial Group, Inc.

5. Average Interest Rate Spread

BTMU and MUTB Combined

(Domestic business segment)


	(percentage per annum)
	For the nine months ended December 31, 2015		For the nine months ended December 31, 2014
Average interest rate on loans and bills discounted		0.89		0.99
Average interest rate on deposits and NCD		0.04		0.04
Interest rate spread		0.85		0.94

(After excluding loans to the Japanese government and governmental organizations)	(percentage per annum)
Average interest rate on loans and bills discounted		1.04		1.13
Interest rate spread		1.00		1.08

BTMU Non-consolidated

(Domestic business segment)


	(percentage per annum)
	For the nine months ended December 31, 2015		For the nine months ended December 31, 2014
Average interest rate on loans and bills discounted		0.93		1.03
Average interest rate on deposits and NCD		0.03		0.03
Interest rate spread		0.90		1.00

(After excluding loans to the Japanese government and governmental organizations)	(percentage per annum)
Average interest rate on loans and bills discounted		1.12		1.21
Interest rate spread		1.09		1.17

MUTB Non-consolidated

(Domestic business segment)


	(percentage per annum)
	For the nine months ended December 31, 2015		For the nine months ended December 31, 2014
Average interest rate on loans and bills discounted		0.67		0.76
Average interest rate on deposits and NCD		0.13		0.13
Interest rate spread		0.54		0.62

(After excluding loans to the Japanese government and governmental organizations)	(percentage per annum)
Average interest rate on loans and bills discounted		0.67		0.76
Interest rate spread		0.54		0.62

Mitsubishi UFJ Financial Group, Inc.

6. Loans and Deposits

BTMU and MUTB Combined


	(in billions of yen)
	As of December 31, 2015		As of March 31, 2015
Deposits (ending balance)		141,051.9		137,332.3
Deposits (average balance)		138,161.4		132,006.8
Loans (ending balance)		100,121.1		95,350.2
Loans (average balance)		97,918.6		94,794.2

	(in billions of yen)
	As of December 31, 2015		As of March 31, 2015
Domestic deposits (ending balance)*		118,248.2		117,864.3
Individuals		71,916.5		70,415.1

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

BTMU Non-consolidated


	(in billions of yen)
	As of December 31, 2015		As of March 31, 2015
Deposits (ending balance)		128,205.3		124,590.9
Deposits (average balance)		125,379.3		119,381.2
Loans (ending balance)		86,887.8		82,740.3
Loans (average balance)		85,164.2		82,699.4

	(in billions of yen)
	As of December 31, 2015		As of March 31, 2015
Domestic deposits (ending balance)*		106,867.6		106,458.7
Individuals		63,959.7		62,194.0

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

MUTB Non-consolidated


	(in billions of yen)
	As of December 31, 2015		As of March 31, 2015
Deposits (ending balance)		12,846.6		12,741.4
Deposits (average balance)		12,782.1		12,625.6
Loans (ending balance)		13,233.2		12,609.8
Loans (average balance)		12,754.3		12,094.8

	(in billions of yen)
	As of December 31, 2015		As of March 31, 2015
Domestic deposits (ending balance)*		11,380.6		11,405.5
Individuals		7,956.7		8,221.1

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

Mitsubishi UFJ Financial Group, Inc.

7. Statements of Trust Assets and Liabilities

MUTB Non-consolidated

Including trust assets under service-shared co-trusteeship


(in billions of yen)	As of March 31, 2015		As of December 31, 2015
Assets:
Loans and bills discounted		112.3		139.2
Securities		58,086.9		52,912.2
Beneficiary rights to the trust		49,353.2		59,527.1
Securities held in custody accounts		3,172.3		3,696.4
Monetary claims		10,619.0		9,731.6
Tangible fixed assets		10,805.0		11,339.0
Intangible fixed assets		192.5		198.7
Other claims		5,040.4		5,623.8
Call loans		2,307.4		2,395.1
Due from banking account		3,184.7		2,469.4
Cash and due from banks		3,449.1		3,893.7

Total		146,323.3		151,926.8

Liabilities:
Money trusts		23,452.5		19,873.4
Pension trusts		15,360.6		14,868.2
Property formation benefit trusts		8.3		7.8
Investment trusts		48,930.3		59,153.3
Money entrusted other than money trusts		3,218.8		3,641.4
Securities trusts		5,066.0		5,735.3
Monetary claim trusts		10,266.6		9,276.7
Equipment trusts		44.4		59.3
Land and fixtures trusts		82.3		68.2
Composite trusts		39,893.1		39,242.7

Total		146,323.3		151,926.8


Note:		The table shown above includes master trust assets under the service-shared co-trusteeship between MUTB and The Master Trust Bank of Japan, Ltd.

Mitsubishi UFJ Financial Group, Inc.

(Reference)

Exposure to “Securitized Products and Related Investments”

Our exposure to securitized products and related investments as of the end of December 2015 is outlined below. (Figures are on a managerial basis and rounded off to billion yen or to the second decimal point of trillion yen)

1.	Balance, net unrealized gains (losses), realized gains (losses)

(1)	The balance as of the end of December 2015 was ¥3.17 trillion in total, a decrease of ¥0.22 trillion from the balance as of the end of March 2015, mainly due to a decrease in CLOs.

(2)	Net unrealized losses were ¥22 billion, worsened by ¥19 billion compared to the end of March 2015.

(3)	P/L impact for the quarter ended December 31, 2015 was small, an increase of ¥0.2 billion.


	(¥bn)
												of which securities being held to maturity²
	Balance¹		Change from end of March 2015			Net unrealized gains (losses)			Change from end of March 2015			Balance		Net unrealized gains (losses)
RMBS		18		(3	)		0			(4	)		0		0
Sub-prime RMBS		0		0			0			0			0		0
CMBS		399		(7	)		(6	)		(9	)		210		(4	)
CLOs		2,702		(176	)		(17	)		(4	)		1,634		(9	)
Other securitized products (card, etc.)		54		(32	)		1			(2	)		18		0
CDOs		0		0			0			0			0		0
Sub-prime ABS CDOs		0		0			0			0			0		0
SIV		0		0			0			0			0		0

Total		3,173		(217	)		(22	)		(19	)		1,862		(13	)

1.	Balance is the amount after impairment and before deducting net unrealized gains (losses).

The above table does not include mortgage-backed securities arranged and guaranteed by U.S. government sponsored enterprises, etc., Japanese RMBS such as Japanese Housing Finance Agency securities, and products held by funds such as investment trusts. These are also applicable to the tables in this document.

Following the publication of “Tentative Solution on Reclassification of Debt Securities” (Practical Issue Task Force No.26, The Accounting Standards Board of Japan, December 5, 2008), some of our securitized products were reclassified into “securities being held to maturity” from “securities available for sale” at and after the end of January 2009. The balance and net unrealized gains (losses) of the securities being held to maturity in the above table are based on book value before reclassification.

2.	Distribution by rating

(1)

AAA-rated products accounted for 88% of our investments in securitized products as of the end of December 2015, an increase of 1 percentage point from the end of March 2015. The volume of holdings of high-rated securitized product decreased, while the total volume of holdings of securitized product also decreased, resulted in an increase in the ratio.

(2)	AAA and AA-rated products accounted for 99% of our investments in securitized products.


	(¥bn)
	AAA			AA			A			BBB			BB or lower			Unrated			Total
RMBS		4			1			0			9			4			0			18
Sub-prime RMBS		0			0			0			0			0			0			0
CMBS		159			240			0			0			0			0			399
CLOs		2,588			76			35			3			0			0			2,702
Other securitized products (card, etc.)		28			24			0			1			0			2			54
CDOs		0			0			0			0			0			0			0
Sub-prime ABS CDOs		0			0			0			0			0			0			0
SIV		0			0			0			0			0			0			0

Total		2,778			340			36			12			5			2			3,173

Percentage of total		88	%		11	%		1	%		0	%		0	%		0	%		100	%

Percentage of total (End of March 2015)		87	%		10	%		1	%		0	%		0	%		1	%		100	%

Mitsubishi UFJ Financial Group, Inc.

3.	Credit exposure related to leveraged loan (LBO loan)

(1)	We are not engaged in origination or distribution of securitized products relating to LBO loans, and therefore, there is no balance of LBO loans for securitization.

(2)	The following table shows the balances of LBO loans as of the end of December 2015.


	(¥bn)
	Americas		Europe		Asia		Japan		Total		Change from end of March 2015
LBO Loan³ (Balance on a commitment basis)		7		149		0		408		564		90
Balance on a booking basis		7		123		0		379		509		103

³ Includes balance after refinancing. (Figures are rounded off.)

4.	Special Purpose Entities (SPEs)

(1)	We are engaged in sponsoring ABCP issuance for securitizing our clients’ assets.

(2)	The balance of assets purchased by ABCP conduits (special purpose companies for issuing ABCP) as of the end of December 2015 was ¥4.81 trillion (including ¥2.60 trillion in overseas).

(3)	The purchased assets are mainly receivables.

End


<Terminology>

RMBS	:	Asset-backed securities collateralized by residential mortgages
CMBS	:	Asset-backed securities collateralized by commercial mortgages
CLOs	:	Collateralized loan obligations backed by whole commercial loans, revolving credit facilities, or letters of credit
CDOs	:	Structured credit securities backed by a pool of securities, loans, or credit default swaps
ABS CDOs	:	Collateralized debt obligations backed by asset backed securities
SIVs	:	Investment companies established mainly for gaining profit margin by raising funds through subordinated notes and short-term CPs, etc. and investing in relatively long-term securitized products and bonds, etc.
LBO Loans	:	Loans collateralized by assets and/or future cash flows of an acquired company
ABCP	:	Commercial papers issued by a Special Purposed Company (SPC) collateralized by receivables