Loans and Allowance for Credit Losses | LOANS AND ALLOWANCE FOR CREDIT LOSSESThe MUFG Group classifies its loan portfolio into the following portfolio segments—Commercial, Residential, Card, MUFG Americas Holdings, 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 for further information. Total Outstanding Loans and Past Due Analysis The table below presents total outstanding loans and past due analysis by class at March 31, 2021 and 2022. Past Due At March 31, 2021: 1-3 months Greater Total Current Loans Total Past Due 90 Days and (in millions) Commercial Domestic ¥ 4,763 ¥ 22,996 ¥ 27,759 ¥ 54,605,452 ¥ 47,632 ¥ 54,680,843 ¥ 4,673 Foreign 7,302 22,473 29,775 31,262,476 194,696 31,486,947 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 22,945 502,241 — MUAH 42,082 29,337 71,419 8,424,325 87,822 8,583,566 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 ¥ 353,095 ¥ 116,027,745 ¥ 20,540 Unearned income, unamortized premiums—net and deferred loan fees—net (308,882) Total ¥ 115,718,863 Past Due At March 31, 2022: 1-3 months Greater Total Current Loans Total Past Due 90 Days and Accruing (in millions) Commercial Domestic ¥ 12,556 ¥ 9,138 ¥ 21,694 ¥ 53,953,767 ¥ 69,257 ¥ 54,044,718 ¥ 3,260 Foreign 17,405 10,598 28,003 34,578,265 374,011 34,980,279 — Residential 32,078 13,598 45,676 13,255,829 — 13,301,505 3,360 Card 10,250 26,818 37,068 427,198 — 464,266 — MUAH 625 — 625 2,741,503 70,841 2,812,969 — Krungsri 115,636 126,494 242,130 6,580,635 — 6,822,765 — Other 21,729 21,152 42,881 1,002,240 — 1,045,121 — Total ¥ 210,279 ¥ 207,798 ¥ 418,077 ¥ 112,539,437 ¥ 514,109 ¥ 113,471,623 ¥ 6,620 Unearned income, unamortized premiums—net and deferred loan fees—net (322,230) Total ¥ 113,149,393 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 for further information. The information on nonaccrual loans by class at March 31, 2021 and 2022, and recognized interest income on nonaccrual loans by class for the fiscal years ended March 31, 2021 and 2022 are shown below: Recorded Loan Balance March 31, 2021: Nonaccrual Loans (1) Nonaccrual Loans Not Requiring an Allowance for Credit Losses (2) Recognized (in millions) Commercial Domestic ¥ 565,671 ¥ 111,141 ¥ 4,355 Foreign 258,391 96,833 5,110 Residential 67,968 4,720 923 Card 60,200 — 37 MUAH 73,706 30,242 1,057 Krungsri 161,338 3,042 5,562 Other 26,567 29 4,203 Total ¥ 1,213,841 ¥ 246,007 ¥ 21,247 Recorded Loan Balance March 31, 2022: Nonaccrual Loans (1) Nonaccrual Loans Not Requiring an Allowance for Credit Losses (2) Recognized Interest Income (in millions) Commercial Domestic ¥ 633,768 ¥ 109,919 ¥ 6,532 Foreign 224,566 84,837 4,734 Residential 56,175 3,579 811 Card 62,578 — 25 MUAH 15,349 — 77 Krungsri 165,775 2,824 4,076 Other 26,618 7 3,688 Total ¥ 1,184,829 ¥ 201,166 ¥ 19,943 Notes: (1) Nonaccrual loans in the above table do not include loans held for sale of ¥8,562 million and ¥7,946 million at March 31, 2021 and 2022, respectively. (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. Troubled Debt Restructurings The following table summarizes the MUFG Group’s TDRs by class for the fiscal years ended March 31, 2020, 2021 and 2022: 2020 2021 2022 Troubled Debt Restructurings Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment Pre- Modification Outstanding Recorded Investment Post- Modification Outstanding Recorded Investment (in millions) Commercial (1)(3) Domestic ¥ 61,735 ¥ 61,735 ¥ 39,282 ¥ 39,282 ¥ 168,348 ¥ 167,342 Foreign 39,827 39,827 33,839 33,839 16,144 16,144 Loans acquired with deteriorated credit quality 10,786 10,786 — — — — Residential (1)(3) 5,137 5,137 18,121 18,121 22,484 22,484 Card (2)(3) 22,625 21,561 20,857 19,737 20,937 19,824 MUAH (2)(3) 33,782 33,564 22,801 22,763 11,384 11,384 Krungsri (2)(3) 31,238 31,209 18,548 18,548 14,869 14,869 Other (2)(3) 12,781 12,780 24,968 24,956 11,403 11,403 Total ¥ 217,911 ¥ 216,599 ¥ 178,416 ¥ 177,246 ¥ 265,569 ¥ 263,450 2020 2021 2022 Troubled Debt Restructurings That Subsequently defaulted Recorded Investment (in millions) Commercial (1)(3) Domestic ¥ 8,857 ¥ 16,179 ¥ 12,020 Foreign 2,337 9,861 13,180 Residential (1)(3) 31 157 203 Card (2)(3) 3,320 2,733 2,746 MUAH (2)(3) 4,656 3,437 — Krungsri (2)(3) 7,305 6,226 5,657 Other (2)(3) 15 857 4,715 Total ¥ 26,521 ¥ 39,450 ¥ 38,521 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 fiscal year ended March 31, 2020, extension of the stated maturity date of loans was the primary concession type in the Commercial, Residential, MUFG Americas Holdings and Krungsri segments and reduction in the stated rate was the primary concession type in the Card and Other segments. For the fiscal year ended March 31, 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. For the fiscal year ended March 31, 2022, 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. 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 fiscal years ended March 31, 2020, 2021 and 2022 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. The MUFG Group provided commitments to extend credit to customers with TDRs. The amounts of such commitments were ¥130,788 million and ¥132,456 million at March 31, 2021 and 2022, respectively. See Note 24 for further discussion of commitments to extend credit. 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 2022 are shown below: Term Loans Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis 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 Amortized Cost Basis by Origination Year Revolving Loans Amortized Cost Basis Revolving Loans Converted to Term Loans Amortized Cost Basis Total (1) At March 31, 2022: 2021 2020 2019 2018 2017 Prior (in millions) Commercial: ¥ 27,445,726 ¥ 10,850,943 ¥ 7,634,337 ¥ 6,509,048 ¥ 3,924,194 ¥ 8,827,987 ¥ 23,380,258 ¥ 9,236 ¥ 88,581,729 Domestic 19,038,698 7,937,529 5,003,439 4,499,174 2,817,819 6,639,931 8,038,871 — 53,975,461 Normal 18,756,933 7,646,272 4,669,784 4,335,640 2,698,956 6,205,070 7,686,772 — 51,999,427 Close Watch 257,276 266,311 167,387 150,834 104,047 307,367 306,193 — 1,559,415 Likely to become Bankrupt or Legally/Virtually Bankrupt 24,489 24,946 166,268 12,700 14,816 127,494 45,906 — 416,619 Foreign 8,407,028 2,913,414 2,630,898 2,009,874 1,106,375 2,188,056 15,341,387 9,236 34,606,268 Normal 8,250,729 2,814,362 2,501,594 1,881,532 1,031,105 2,031,243 15,089,995 1,912 33,602,472 Close Watch 149,502 90,355 73,253 110,170 36,274 93,622 223,203 7,324 783,703 Likely to become Bankrupt or Legally/Virtually Bankrupt 6,797 8,697 56,051 18,172 38,996 63,191 28,189 — 220,093 Residential ¥ 782,446 ¥ 641,706 ¥ 976,736 ¥ 866,282 ¥ 900,959 ¥ 9,104,691 ¥ 28,685 ¥ — ¥ 13,301,505 Accrual 782,314 641,499 976,162 865,761 900,120 9,054,326 26,460 — 13,246,642 Nonaccrual 132 207 574 521 839 50,365 2,225 — 54,863 Card ¥ 19 ¥ 106 ¥ 182 ¥ 175 ¥ 276 ¥ 437 ¥ 400,552 ¥ 62,519 ¥ 464,266 Accrual 1 8 8 9 13 41 387,648 13,960 401,688 Nonaccrual 18 98 174 166 263 396 12,904 48,559 62,578 MUAH ¥ 364,236 ¥ 306,134 ¥ 147,821 ¥ 62,455 ¥ 50,264 ¥ 122,149 ¥ 1,689,069 ¥ — ¥ 2,742,128 Credit Quality Based on Internal Credit Ratings Pass 357,334 298,658 126,083 48,653 43,938 117,778 1,642,946 — 2,635,390 Special Mention 3,106 — 20,013 2,415 5,981 805 33,471 — 65,791 Classified 3,796 7,476 1,725 11,387 345 3,566 12,652 — 40,947 Krungsri ¥ 1,350,265 ¥ 964,094 ¥ 901,955 ¥ 680,090 ¥ 329,847 ¥ 481,981 ¥ 2,099,727 ¥ 14,806 ¥ 6,822,765 Performing 1,297,054 891,374 788,828 573,840 270,783 363,905 1,961,481 — 6,147,265 Under-Performing 42,326 58,084 90,519 80,841 45,982 78,690 113,283 — 509,725 Non-Performing 10,885 14,636 22,608 25,409 13,082 39,386 24,963 14,806 165,775 Other ¥ 400,482 ¥ 143,336 ¥ 85,496 ¥ 40,445 ¥ 35,346 ¥ — ¥ 340,016 ¥ — ¥ 1,045,121 Accrual 398,744 136,317 83,278 38,609 32,934 — 328,621 — 1,018,503 Nonaccrual 1,738 7,019 2,218 1,836 2,412 — 11,395 — 26,618 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. The MUFG Group classifies loans into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, historical and current financial information, historical and current payment experience, credit documentation, public and non-public information about borrowers and current economic trends as deemed appropriate to each segment. The primary credit quality indicator for loans within all classes of the Commercial segment is the internal credit rating assigned to each borrower based on the MUFG Group’s internal borrower ratings of 1 through 15, with the rating of 1 assigned to a borrower with the highest quality of credit. When assigning a credit rating to a borrower, the MUFG Group evaluates the borrower’s expected debt-service capability based on various information, including financial and operating information of the borrower as well as information on the industry in which the borrower operates, and the borrower’s business profile, management and compliance system. In evaluating a borrower’s debt-service capability, the MUFG Group also conducts an assessment of the level of earnings and an analysis of the borrower’s net worth. Based on the internal borrower rating, loans within the Commercial segment are categorized as Normal (internal borrower ratings of 1 through 9), Close Watch (internal borrower ratings of 10 through 12), and Likely to become Bankrupt or Legally/Virtually Bankrupt (internal borrower ratings of 13 through 15). Loans to borrowers categorized as Normal represent those that are not deemed to have collectibility issues. Loans to borrowers categorized as Close Watch represent those that require close monitoring as the borrower has begun to exhibit elements of potential concern with respect to its business performance and financial condition, the borrower has begun to exhibit elements of serious concern with respect to its business performance and financial condition, including business problems requiring long-term solutions, or the borrower’s loans are TDRs or loans contractually past due 90 days or more for special reasons. Loans to borrowers categorized as Likely to become Bankrupt or Legally/Virtually Bankrupt represent those that have a higher probability of default than those categorized as Close Watch due to serious debt repayment problems with poor progress in achieving restructuring plans, the borrower being considered virtually bankrupt with no prospects for an improvement in business operations, or the borrower being legally bankrupt with no prospects for continued business operations because of non-payment, suspension of business, voluntary liquidation or filing for legal liquidation. The accrual status is a primary credit quality indicator for loans within the Residential segment, the Card segment, the Other segment and consumer loans within the MUFG Americas Holdings segment. The accrual status of these loans is determined based on the number of delinquent payments. See Note 1 for further details of categorization of Accrual and Nonaccrual. Commercial loans within the MUFG Americas Holdings segment are categorized as either pass or criticized based on the internal credit rating assigned to each borrower. Criticized credits are those that are internally risk graded as Special Mention, Substandard or Doubtful. Special Mention credits are potentially weak, as the borrower has begun to exhibit deteriorating trends, which, if not corrected, may jeopardize repayment of the loan and result in further downgrade. Classified credits are those that are internally risk graded as Substandard or Doubtful. Substandard credits have well-defined weaknesses, which, if not corrected, could jeopardize the full satisfaction of the debt. A credit classified as Doubtful has critical weaknesses that make full collection improbable on the basis of currently existing facts and conditions. Loans within the Krungsri segment are categorized as Performing, Under-Performing or Non-Performing based on their delinquency status. Loans categorized as Under-Performing generally represent those that have significant increases in credit risk since origination, including, among other things, loans that are 30 days or more past due, and loans categorized as Non-Performing generally represent those that are 90 days or more past due. For the Commercial, Residential and Card segments, credit quality indicators are based on information as of March 31. For the MUFG Americas Holdings, Krungsri and Other segments, credit quality indicators are generally based on information as of December 31. Allowance for Credit Losses Effective as of April 1, 2020, the MUFG Group adopted new guidance on measurement of credit losses on financial instruments. See Note 1 for more information. Changes in the allowance for credit losses by portfolio segment for the fiscal years ended March 31, 2020, 2021 and 2022 are shown below: Fiscal year ended March 31, 2020: Commercial Residential Card MUAH Krungsri Other Total (in millions) Allowance for credit losses: Balance at beginning of fiscal year ¥ 389,615 ¥ 38,626 ¥ 32,550 ¥ 52,581 ¥ 144,812 ¥ — ¥ 658,184 Provision for (reversal of) credit losses 153,782 (1,028) 26,542 30,825 70,023 41,569 321,713 Charge-offs 85,326 3,227 25,149 27,934 77,907 23,592 243,135 Recoveries collected 26,427 375 1,237 4,173 23,170 8,476 63,858 Net charge-offs 58,899 2,852 23,912 23,761 54,737 15,116 179,277 Other (1) (2,223) — — (650) 9,528 2,265 8,920 Balance at end of fiscal year ¥ 482,275 ¥ 34,746 ¥ 35,180 ¥ 58,995 ¥ 169,626 ¥ 28,718 ¥ 809,540 Fiscal year ended March 31, 2021: Commercial Residential Card MUAH Krungsri Other Total (in millions) Allowance for credit losses: Balance at beginning of fiscal year ¥ 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 (2) 83,828 49,494 14,262 25,037 118,333 32,750 323,704 Provision for credit losses 235,584 1,385 17,876 90,064 90,167 49,134 484,210 Charge-offs 77,904 2,745 24,564 40,376 93,192 51,725 290,506 Recoveries collected 9,262 13 1,463 4,362 23,415 6,567 45,082 Net charge-offs 68,642 2,732 23,101 36,014 69,777 45,158 245,424 Other (1) 1,532 — — (6,327) (14,953) (3,891) (23,639) Balance at end of fiscal year ¥ 734,577 ¥ 82,893 ¥ 44,217 ¥ 131,755 ¥ 293,396 ¥ 61,553 ¥ 1,348,391 Fiscal year ended March 31, 2022: Commercial Residential Card MUAH Krungsri Other Total (in millions) Allowance for credit losses: Balance at beginning of fiscal year ¥ 734,577 ¥ 82,893 ¥ 44,217 ¥ 131,755 ¥ 293,396 ¥ 61,553 ¥ 1,348,391 Provision for (reversal of) credit losses 236,659 (10,899) 15,473 (101,112) 90,514 47,360 277,995 Charge-offs 57,848 2,121 20,153 19,208 83,474 55,208 238,012 Recoveries collected 11,898 14 1,231 9,532 22,890 13,150 58,715 Net charge-offs 45,950 2,107 18,922 9,676 60,584 42,058 179,297 Other (1) 8,800 — — 9,398 (940) 6,354 23,612 Balance at end of fiscal year ¥ 934,086 ¥ 69,887 ¥ 40,768 ¥ 30,365 ¥ 322,386 ¥ 73,209 ¥ 1,470,701 Notes: (1) Other is principally comprised of gains or losses from foreign exchange translation. (2) See Note 1 for more information. Nonperforming loans were actively disposed of by sales during recent years. The allocated allowance for credit losses for such loans was removed from the allowance for credit losses and transferred to the valuation allowance for loans held for sale upon a decision to sell. Net charge-offs in the above table include a decrease from charge-offs in the allowance for credit losses amounting to ¥19.4 billion, ¥16.8 billion and ¥0.4 billion for the fiscal years ended March 31, 2020 , 2021 and 2022, respectively, due to loan disposal activity. The MUFG Group sold ¥2,136 billion, ¥1,684 billion and ¥2,011 billion of loans within the Commercial segment during the fiscal years ended March 31, 2020, 2021 and 2022, respectively. The MUFG Group sold ¥586 billion and ¥518 billion of loans within the MUFG Americas Holdings segment during the fiscal years ended March 31, 2021 and 2022, respectively. 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. |