Loans and Allowance for Credit Losses | LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans at March 31, 2021 and September 30, 2021 by domicile and industry of the borrower are summarized below. Classification of loans by industry is based on the industry segment loan classifications as defined by the Bank of Japan. March 31, September 30, (in millions) Domestic: Manufacturing ¥ 13,133,360 ¥ 12,529,819 Construction 763,958 692,467 Real estate 11,997,301 12,014,585 Services 2,908,975 2,735,763 Wholesale and retail 7,766,070 7,729,051 Banks and other financial institutions (1) 6,443,296 5,904,659 Communication and information services 1,407,738 1,336,456 Other industries 8,838,718 8,681,345 Consumer 15,066,986 14,826,762 Total domestic 68,326,402 66,450,907 Foreign: Governments and official institutions 655,367 640,035 Banks and other financial institutions (1) 10,649,029 11,703,363 Commercial and industrial 29,574,176 27,672,268 Other 6,822,771 6,617,255 Total foreign 47,701,343 46,632,921 Unearned income, unamortized premiums—net and deferred loan fees—net (308,882) (301,543) Less: Loans in transferred business of MUFG Union Bank (3) — (6,431,831) Total (2) ¥ 115,718,863 ¥ 106,350,454 Notes: (1) Loans to so-called “non-bank finance companies” are generally included in the “Banks and other financial institutions” category. Non-bank finance companies are primarily engaged in consumer lending, factoring and credit card businesses. (2) The above table includes loans held for sale of ¥353,095 million at March 31, 2021 and ¥325,921 million at September 30, 2021, respectively. (3) Represents loans in transferred business of MUFG Union Bank, which is included in Other assets in the accompanying condensed consolidated balance sheets at September 30, 2021. See Note 2 for more information. The MUFG Group classifies its loan portfolio into the following portfolio segments—Commercial, Residential, Card, MUFG Americas Holdings, Bank of Ayudhya Public Company Limited (“Krungsri”), and Other based on the grouping used by the MUFG Group to determine the allowance for credit losses. The MUFG Group further classifies the Commercial segment into classes based on initial measurement attributes, risk characteristics, and its method of monitoring and assessing credit risk. See Note 1 to the consolidated financial statements for the fiscal year ended March 31, 2021 for further information. Nonaccrual Loans Originated loans are generally placed on nonaccrual status when substantial doubt exists as to the full and timely collection of either principal or interest, when principal or interest is contractually past due one month or more with respect to loans within all classes of the Commercial segment, three months or more with respect to loans within the Card, MUFG Americas Holdings, and Krungsri segments, and six months or more with respect to loans within the Residential segment. See Note 1 to the consolidated financial statements for the fiscal year ended March 31, 2021 for further information. The information on nonaccrual loans by class at March 31, 2021 and September 30, 2021 are shown below: Recorded Loan Balance March 31, 2021: Nonaccrual Loans (1) Nonaccrual Loans Not Requiring an Allowance for Credit Losses (2) (in millions) Commercial Domestic ¥ 565,671 ¥ 111,141 Foreign 258,391 96,833 Residential 67,968 4,720 Card 60,200 — MUAH 73,706 30,242 Krungsri 161,338 3,042 Other 26,567 29 Total ¥ 1,213,841 ¥ 246,007 Recorded Loan Balance September 30, 2021: Nonaccrual Loans (1) Nonaccrual Loans Not Requiring an Allowance for Credit Losses (2) (in millions) Commercial Domestic ¥ 541,779 ¥ 110,425 Foreign 246,097 88,415 Residential 61,314 5,144 Card 61,723 — MUAH 75,344 30,864 Krungsri 157,215 1,861 Other 28,018 — Total ¥ 1,171,490 ¥ 236,709 Notes: (1) Nonaccrual loans in the above table do not include loans held for sale of ¥8,562 million and ¥14,832 million at March 31, 2021 and September 30, 2021, respectively. These loans include loans in transferred business of MUFG Union Bank of ¥55,035 million at September 30, 2021. See Note 2 for more information. (2) These loans do not require an allowance for credit losses because the recorded loan balance equals, or does not exceed, the present value of expected future cash flows discounted at the loans’ original effective interest rate, or the fair value of the collateral if the loan is a collateral-dependent loan. Loans held for sale of ¥8,562 million and ¥14,832 million at March 31, 2021 and September 30, 2021, respectively, are not included in nonaccrual loans not requiring an allowance for credit losses. These loans include loans in transferred business of MUFG Union Bank of ¥30,864 million at September 30, 2021. See Note 2 for more information. The following table shows information regarding recognized interest income on nonaccrual loans for the six months ended September 30, 2020 and 2021: September 30, 2020 September 30, 2021 (in millions) Commercial Domestic ¥ 2,229 ¥ 2,004 Foreign 2,061 2,301 Residential 488 422 Card 20 13 MUAH 483 377 Krungsri 3,498 2,950 Other 3,153 1,922 Total ¥ 11,932 ¥ 9,989 Troubled Debt Restructurings The following table summarizes the MUFG Group’s TDRs by class for the six months ended September 30, 2020 and 2021: Six months ended September 30, 2020: Troubled Debt Restructurings Troubled Debt Restructurings that Subsequently Defaulted Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Recorded Investment (in millions) Commercial (1)(3) Domestic ¥ 43,717 ¥ 43,717 ¥ 9,280 Foreign 10,292 10,292 3,940 Residential (1)(3) 27,985 27,985 41 Card (2)(3) 10,694 10,185 1,556 MUAH (2)(3) 13,958 13,920 3,113 Krungsri (2)(3) 9,130 9,130 1,875 Other (2)(3) 7,121 7,109 180 Total ¥ 122,897 ¥ 122,338 ¥ 19,985 Six months ended September 30, 2021: Troubled Debt Restructurings Troubled Debt Restructurings that Subsequently Defaulted Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Recorded Investment (in millions) Commercial (1)(3) Domestic ¥ 94,584 ¥ 93,578 ¥ 7,048 Foreign 529 529 8,447 Residential (1)(3) 13,707 13,707 117 Card (2)(3) 11,485 10,877 1,269 MUAH (2)(3)(4) 14,233 14,243 258 Krungsri (2)(3) 8,135 8,135 2,104 Other (2) 5,104 5,104 1,641 Total ¥ 147,777 ¥ 146,173 ¥ 20,884 Notes: (1) TDRs for the Commercial and Residential segments include accruing loans, and do not include nonaccrual loans. (2) TDRs for the Card, MUFG Americas Holdings, Krungsri and Other segments include accrual and nonaccrual loans. (3) For the six months ended September 30, 2020, extension of the stated maturity date of loans was the primary concession type in the Commercial, Residential and Krungsri segments, reduction in the stated rate was the primary concession type in the Card and Other segments and forbearance was the primary concession type in the MUFG Americas Holdings segment. For the six months ended September 30, 2021, extension of the stated maturity date of loans was the primary concession type in the Commercial, Residential and Krungsri segments, reduction in the stated rate was the primary concession type in the Card segment and forbearance was the primary concession type in the MUFG Americas Holdings segment. (4) The above table includes the loans in transferred business of MUFG Union Bank at September 30, 2021. See Note 2 for more information. A modification of terms of a loan under a TDR mainly involves: (i) a reduction in the stated interest rate applicable to the loan, (ii) an extension of the stated maturity date of the loan, (iii) a partial forgiveness of the principal of the loan, or (iv) a combination of all of these. The amount of pre-modification outstanding recorded investment and post-modification outstanding recorded investment may differ due to write-offs made as part of the concession. The impact of write-offs associated with TDRs on the MUFG Group’s results of operations for the six months ended September 30, 2020 and 2021 was not material. TDRs for the Commercial and Residential segments in the above tables include accruing loans, and do not include nonaccrual loans. Once a loan is classified as a nonaccrual loan, a modification would have little likelihood of resulting in the recovery of the loan in view of the severity of the financial difficulty of the borrower. Therefore, even if a nonaccrual loan is modified, the loan continues to be classified as a nonaccrual loan. The vast majority of modifications to nonaccrual loans are temporary extensions of the maturity dates, typically for periods up to 90 days, and continually made as the borrower is unable to repay or refinance the loan at the extended maturity. Accordingly, the impact of such TDRs on the outstanding recorded investment is immaterial, and the vast majority of nonaccrual TDRs have subsequently defaulted. TDRs that subsequently defaulted in the Commercial and Residential segments in the above tables include those accruing loans that became past due one month or more within the Commercial segment and six months or more within the Residential segment, and those accruing loans reclassified to nonaccrual loans due to financial difficulties even without delinquencies. This is because classification as a nonaccrual loan is regarded as default under the MUFG Group’s credit policy. Also, the MUFG Group defines default as payment default for the purpose of the disclosure. In regards to the Card, MUFG Americas Holdings, Krungsri and Other segments, the TDRs in the above tables represent nonaccrual and accruing loans, and the defaulted loans in the above table represent non-accruing and accruing loans that became past due one month or more within the Card segment, 60 days or more within the MUFG Americas Holdings segment, and six months or more within the Krungsri segment. Historical payment defaults are one of the factors considered when projecting future cash flows in determining the allowance for credit losses for each segment. In the MUFG Americas Holdings segment, TDR accounting was suspended for loan modifications, where COVID-19 related modifications were granted to loans that were current as of December 31, 2019, based on the Coronavirus Aid, Relief, and Economic Security Act, or where COVID-19 related short-term modifications (i.e., six months or less) were granted to loans that were current as of the loan modification date, based on interagency statements issued by the U.S. federal bank regulatory agencies. These loan modifications were primarily payment deferrals, and the related borrowers’ past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan. In the Krungsri segment, TDR accounting was suspended for loan modifications, where COVID-19 related short-term modifications (i.e., six months or less) were granted to loans that were current as of the loan modification date, based on interagency statements issued by the U.S. federal bank regulatory agencies. These loan modifications included payment deferrals and reductions in stated rate, and the related borrowers’ past due and nonaccrual status will not be impacted during the deferral period. Interest income will continue to be recognized over the contractual life of the loan. Credit Quality Indicator Credit quality indicators of loans and fiscal year of origination by class at March 31, 2021 and September 30, 2021 are shown below: Term Loans Revolving Revolving Total (1) At March 31, 2021: 2020 2019 2018 2017 2016 Prior (in millions) Commercial: ¥ 29,805,641 ¥ 10,256,709 ¥ 9,410,172 ¥ 5,360,221 ¥ 4,736,515 ¥ 6,945,092 ¥ 19,401,336 ¥ 9,776 ¥ 85,925,462 Domestic 22,402,694 6,392,946 6,126,746 3,840,964 3,649,145 5,286,408 6,934,308 — 54,633,211 Normal 21,936,776 6,058,126 5,915,318 3,666,734 3,551,332 4,847,597 6,604,586 — 52,580,469 Close Watch 431,223 319,073 195,630 162,176 74,698 317,622 306,236 — 1,806,658 Likely to become Bankrupt or Legally/Virtually Bankrupt 34,695 15,747 15,798 12,054 23,115 121,189 23,486 — 246,084 Foreign 7,402,947 3,863,763 3,283,426 1,519,257 1,087,370 1,658,684 12,467,028 9,776 31,292,251 Normal 7,158,793 3,704,240 3,155,261 1,423,064 1,032,052 1,534,943 12,231,018 9,776 30,249,147 Close Watch 200,305 118,027 91,867 60,422 51,433 69,436 197,405 — 788,895 Likely to become Bankrupt or Legally/Virtually Bankrupt 43,849 41,496 36,298 35,771 3,885 54,305 38,605 — 254,209 Residential ¥ 623,328 ¥ 847,314 ¥ 822,883 ¥ 892,166 ¥ 1,304,110 ¥ 8,660,022 ¥ 32,984 ¥ 8 ¥ 13,182,815 Accrual 623,035 846,787 822,411 891,407 1,302,427 8,599,621 30,897 — 13,116,585 Nonaccrual 293 527 472 759 1,683 60,401 2,087 8 66,230 Card ¥ 14 ¥ 96 ¥ 171 ¥ 304 ¥ 110 ¥ 513 ¥ 417,804 ¥ 60,284 ¥ 479,296 Accrual 1 10 13 19 7 79 404,301 14,666 419,096 Nonaccrual 13 86 158 285 103 434 13,503 45,618 60,200 MUAH ¥ 1,406,996 ¥ 1,366,930 ¥ 915,570 ¥ 861,742 ¥ 770,568 ¥ 1,291,561 ¥ 1,882,377 ¥ — ¥ 8,495,744 Credit Quality Based on the Number of Delinquencies Accrual 472,892 608,580 324,369 552,380 516,051 656,087 130,514 — ¥ 3,260,873 Nonaccrual — 725 518 1,139 1,035 14,801 828 — 19,046 Credit Quality Based on Internal Credit Ratings Pass 920,959 707,841 486,354 287,316 236,715 542,634 1,625,799 — 4,807,618 Special Mention 4,865 31,361 49,784 14,904 9,522 30,015 76,487 — 216,938 Classified 8,280 18,423 54,545 6,003 7,245 48,024 48,749 — 191,269 Krungsri ¥ 1,316,031 ¥ 1,197,815 ¥ 958,241 ¥ 506,919 ¥ 285,427 ¥ 402,752 ¥ 1,922,946 ¥ 14,514 ¥ 6,604,645 Performing 1,251,246 1,086,710 855,915 434,818 241,811 314,114 1,754,840 — 5,939,454 Under-Performing 52,821 85,408 74,848 57,314 31,886 57,129 144,447 — 503,853 Non-Performing 11,964 25,697 27,478 14,787 11,730 31,509 23,659 14,514 161,338 Other ¥ 338,342 ¥ 164,650 ¥ 84,115 ¥ 37,394 ¥ 11,030 ¥ 8,538 ¥ 342,619 ¥ — ¥ 986,688 Accrual 335,830 159,363 79,608 35,366 10,556 8,201 331,197 — 960,121 Nonaccrual 2,512 5,287 4,507 2,028 474 337 11,422 — 26,567 Term Loans Revolving Revolving Total (1) At September 30, 2021: 2021 2020 2019 2018 2017 Prior (in millions) Commercial: ¥ 18,453,877 ¥ 14,031,765 ¥ 8,729,077 ¥ 7,934,655 ¥ 4,617,515 ¥ 10,141,926 ¥ 19,085,841 ¥ 3,618 ¥ 82,998,274 Domestic 13,682,280 9,706,901 5,701,452 5,531,710 3,431,971 8,069,620 6,836,453 — 52,960,387 Normal 13,476,976 9,379,217 5,374,910 5,347,194 3,288,990 7,592,772 6,511,649 — 50,971,708 Close Watch 187,910 303,221 311,227 172,855 128,990 348,587 302,139 — 1,754,929 Likely to become Bankrupt or Legally/Virtually Bankrupt 17,394 24,463 15,315 11,661 13,991 128,261 22,665 — 233,750 Foreign 4,771,597 4,324,864 3,027,625 2,402,945 1,185,544 2,072,306 12,249,388 3,618 30,037,887 Normal 4,629,791 4,176,598 2,943,456 2,301,257 1,102,141 1,948,945 12,074,150 3,618 29,179,956 Close Watch 109,375 104,006 68,176 72,739 48,437 72,635 140,307 — 615,675 Likely to become Bankrupt or Legally/Virtually Bankrupt 32,431 44,260 15,993 28,949 34,966 50,726 34,931 — 242,256 Residential ¥ 341,196 ¥ 607,300 ¥ 825,437 ¥ 798,135 ¥ 862,156 ¥ 9,504,401 ¥ 30,350 ¥ 8 ¥ 12,968,983 Accrual 341,125 607,036 824,939 797,610 861,322 9,448,841 28,306 — 12,909,179 Nonaccrual 71 264 498 525 834 55,560 2,044 8 59,804 Card ¥ 1 ¥ 75 ¥ 149 ¥ 188 ¥ 299 ¥ 520 ¥ 404,682 ¥ 62,406 ¥ 468,320 Accrual — 4 10 11 16 55 391,619 14,882 406,597 Nonaccrual 1 71 139 177 283 465 13,063 47,524 61,723 MUAH ¥ 957,613 ¥ 1,218,450 ¥ 1,192,906 ¥ 795,520 ¥ 715,342 ¥ 1,761,857 ¥ 2,060,216 ¥ — ¥ 8,701,904 Credit Quality Based on the Number of Delinquencies Accrual 521,772 439,777 437,123 225,583 410,915 942,916 120,864 — 3,098,950 Nonaccrual — — 332 332 995 14,265 663 — 16,587 Credit Quality Based on Internal Credit Ratings Pass 428,211 758,437 707,238 483,020 286,292 736,337 1,853,100 — 5,252,635 Special Mention 442 5,087 31,847 25,655 14,597 13,491 58,829 — 149,948 Classified 7,188 15,149 16,366 60,930 2,543 54,848 26,760 — 183,784 Krungsri ¥ 640,591 ¥ 1,115,181 ¥ 1,041,784 ¥ 834,107 ¥ 398,161 ¥ 572,795 ¥ 1,950,932 ¥ 15,320 ¥ 6,568,871 Performing 616,680 1,034,730 918,713 724,790 328,519 443,815 1,780,963 — 5,848,210 Under-Performing 20,246 64,569 97,874 84,307 56,641 90,904 148,905 — 563,446 Non-Performing 3,665 15,882 25,197 25,010 13,001 38,076 21,064 15,320 157,215 Other ¥ 248,301 ¥ 191,687 ¥ 121,279 ¥ 58,672 ¥ 28,283 ¥ 19,768 ¥ 329,934 ¥ — ¥ 997,924 Accrual 248,155 181,373 118,153 56,396 27,053 18,866 319,911 — 969,907 Nonaccrual 146 10,314 3,126 2,276 1,230 902 10,023 — 28,017 Note: (1) Total loans in the above table do not include loans held for sale, and represent balances without adjustments in relation to unearned income, unamortized premiums and deferred loan fees. These loans include loans in transferred business of MUFG Union Bank of ¥6,378,200 million at September 30, 2021. See Note 2 for more information. For a discussion and explanation of the MUFG Group’s credit quality indicator, see Note 4 to the consolidated financial statements for the fiscal year ended March 31, 2021. For the Commercial, Residential and Card segments, credit quality indicators at March 31, 2021 and September 30, 2021 are based on information as of March 31, 2021 and September 30, 2021, respectively. For the MUFG Americas Holdings, Krungsri and Other segments, credit quality indicators at March 31, 2021 and September 30, 2021 are generally based on information as of December 31, 2020 and June 30, 2021, respectively. Past Due Analysis Ages of past due loans by class at March 31, 2021 and September 30, 2021 are shown below: At March 31, 2021: 1-3 months Greater Total Current Total Loans (1) 90 Days and (in millions) Commercial Domestic ¥ 4,763 ¥ 22,996 ¥ 27,759 ¥ 54,605,452 ¥ 54,633,211 ¥ 4,673 Foreign 7,302 22,473 29,775 31,262,476 31,292,251 91 Residential 39,577 28,375 67,952 13,114,863 13,182,815 11,150 Card 2,127 26,786 28,913 450,383 479,296 — MUAH 42,082 29,337 71,419 8,424,325 8,495,744 4,626 Krungsri 131,573 127,533 259,106 6,345,539 6,604,645 — Other 21,776 24,201 45,977 940,711 986,688 — Total ¥ 249,200 ¥ 281,701 ¥ 530,901 ¥ 115,143,749 ¥ 115,674,650 ¥ 20,540 At September 30, 2021: 1-3 months Greater Total Current Total Loans (1) 90 Days and (in millions) Commercial Domestic ¥ 8,314 ¥ 10,101 ¥ 18,415 ¥ 52,941,972 ¥ 52,960,387 ¥ 3,956 Foreign 9,966 15,288 25,254 30,012,633 30,037,887 — Residential 36,733 17,456 54,189 12,914,794 12,968,983 4,899 Card 2,330 27,037 29,367 438,953 468,320 — MUAH 46,954 19,925 66,879 8,635,025 8,701,904 3,202 Krungsri 130,628 121,735 252,363 6,316,508 6,568,871 — Other 23,232 21,867 45,099 952,825 997,924 — Total ¥ 258,157 ¥ 233,409 ¥ 491,566 ¥ 112,212,710 ¥ 112,704,276 ¥ 12,057 Note: (1) Total loans in the above table do not include loans held for sale and represent balances without adjustments in relation to unearned income, unamortized premiums and deferred loan fees. These loans include loans in transferred business of MUFG Union Bank of ¥6,378,200 million at September 30, 2021. See Note 2 for more information. Allowance for Credit Losses Changes in the allowance for credit losses of loans by portfolio segment for the six months ended September 30, 2020 and 2021 are shown below: Six months ended September 30, 2020: Commercial Residential Card MUAH Krungsri Other Total (in millions) Allowance for credit losses: Balance at beginning of period ¥ 482,275 ¥ 34,746 ¥ 35,180 ¥ 58,995 ¥ 169,626 ¥ 28,718 ¥ 809,540 Effect of adopting new guidance on measurement of credit losses on financial instruments (1) 83,828 49,494 14,262 25,037 118,333 32,750 323,704 Provision for (reversal of) credit losses 37,154 (947) 8,822 89,812 47,529 27,436 209,806 Charge-offs 34,833 997 11,230 17,453 44,882 25,795 135,190 Recoveries collected 3,362 7 486 1,749 11,405 2,528 19,537 Net charge-offs 31,471 990 10,744 15,704 33,477 23,267 115,653 Other (2) (3,968) — — (1,757) (10,860) (2,277) (18,862) Balance at end of period ¥ 567,818 ¥ 82,303 ¥ 47,520 ¥ 156,383 ¥ 291,151 ¥ 63,360 ¥ 1,208,535 Six months ended September 30, 2021: Commercial Residential Card MUAH Krungsri Other Total (in millions) Allowance for credit losses: Balance at beginning of period ¥ 734,577 ¥ 82,893 ¥ 44,217 ¥ 131,755 ¥ 293,396 ¥ 61,553 ¥ 1,348,391 Provision for (reversal of) credit losses (36,415) (6,943) 7,595 (38,568) 42,836 20,657 (10,838) Charge-offs 36,033 1,399 8,704 9,459 46,405 30,040 132,040 Recoveries collected 6,360 10 691 3,335 11,741 5,593 27,730 Net charge-offs 29,673 1,389 8,013 6,124 34,664 24,447 104,310 Less: Loans in transferred business of MUFG Union Bank (3) — — — (72,098) — — (72,098) Other (2) (17) — — 7,815 (141) 2,656 10,313 Balance at end of period ¥ 668,472 ¥ 74,561 ¥ 43,799 ¥ 22,780 ¥ 301,427 ¥ 60,419 ¥ 1,171,458 Notes: (1) See Note 1 to the consolidated financial statements for the fiscal year ended March 31, 2021 for more information. (2) Other is principally comprised of gains or losses from foreign exchange translation. (3) Represents allowance for credit losses relating to loans in transferred business of MUFG Union Bank, which is included in Other assets in the accompanying condensed consolidated balance sheets at September 30, 2021. See Note 2 for more information. The MUFG Group sold ¥613 billion and ¥850 billion of loans within the Commercial segment during the six months ended September 30, 2020 and 2021, respectively. The MUFG Group sold ¥519 billion of loans within the MUFG Americas Holdings segment during the six months ended September 30, 2021. Collateral Dependent Loans The MUFG Group uses, as a practical expedient, the fair value of the collateral when recording the net carrying amounts of loans and determining the allowance for credit losses of such loans, for which the repayment is expected to be provided substantially through the operation or sale of the collateral, when the borrower is experiencing financial difficulty based on the assessment as of the reporting date. As of September 30, 2021, for the Commercial, MUFG Americas Holdings, Krungsri and Other segments, collateral relating to these loans comprised primarily of real estate, and to a lesser extent, exchange traded equity securities and deposits, etc. For the Residential segment, collateral on these loans was mainly real estate. Other Financial Receivable Accounts receivable-Other, which is included in Other assets in the accompanying condensed consolidated balance sheets, amounted to ¥1,162,424 million and ¥1,040,049 million as of March 31, 2021 and September 30, 2021, respectively, and were primarily comprised of receivables relating to card business. The provision or reversal of the allowance for credit losses relating to the receivables was included in Non-interest expense on the condensed consolidated statements of income. The receivables relating to card business included ¥4,980 million of past due receivables (1-3 months past due receivables of ¥2,252 million and greater than 3 months past due receivables of ¥2,728 million) as of March 31, 2021, and ¥5,172 million of past due receivables (1-3 months past due receivables of ¥2,279 million and greater than 3 months past due receivables of ¥2,893 million) as of September 30, 2021, respectively. The credit quality for these receivables is primarily evaluated based on the extent of past due. The outstanding balance of these account receivables are presented on a net basis after allowance for credit losses. The change of allowance for credit losses during the six months ended September 30, 2020 and 2021 is primarily due to provision or reversal of the allowance for the receivables. There are de minimis or zero expected credit losses, for example, for lending and financing transactions, such as Interest-earning deposits in other banks, Call loans and funds sold, Receivables under resale agreements and Receivables under securities borrowing transactions because the term is short and the credit quality of the borrowers is normal. Accrued interest receivable totaled ¥259,336 million and ¥223,222 million as of March 31, 2021 and September 30, 2021, respectively, and is included in Other assets on the condensed consolidated balance sheets. |