Loans and Allowance for Credit Losses [Text Block] | 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans at March 31, 2018 and September 30, 2018 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, 2018 September 30, (in millions) Domestic: Manufacturing ¥ 10,876,625 ¥ 10,717,304 Construction 781,262 698,783 Real estate 11,763,769 11,746,501 Services 2,689,086 2,576,921 Wholesale and retail 7,989,080 7,837,551 Banks and other financial institutions (1) 4,818,364 4,892,078 Communication and information services 1,551,533 1,550,557 Other industries 8,939,291 8,943,344 Consumer 16,287,332 15,964,092 Total domestic 65,696,342 64,927,131 Foreign: Governments and official institutions 920,538 836,116 Banks and other financial institutions (1) 12,851,570 13,029,862 Commercial and industrial 30,591,173 31,936,891 Other 7,270,928 7,228,511 Total foreign 51,634,209 53,031,380 Unearned income, unamortized premiums—net and deferred loan fees—net (294,656 ) (295,279 ) Total (2) ¥ 117,035,895 ¥ 117,663,232 Notes: (1) Loans to so-called “non-bank Non-bank (2) The above table includes loans held for sale of ¥226,923 million at March 31, 2018 and ¥238,564 million at September 30, 2018, respectively. The MUFG Group classifies its loan portfolio into the following portfolio segments—Commercial, Residential, Card, MUFG Americas Holdings, and Bank of Ayudhya Public Company Limited (“Krungsri”) 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, 2018 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, 2018 for further information. The nonaccrual loans by class at March 31, 2018 and September 30, 2018 is shown below: March 31, September 30, (in millions) Commercial Domestic ¥ 332,994 ¥ 307,725 Manufacturing 77,163 70,201 Construction 10,791 9,675 Real estate 33,317 26,098 Services 30,717 29,222 Wholesale and retail 108,175 101,210 Banks and other financial institutions 1,145 1,654 Communication and information services 13,815 13,151 Other industries 37,549 40,314 Consumer 20,322 16,200 Foreign-excluding MUAH and Krungsri 109,516 93,786 Residential 69,464 68,732 Card 61,387 61,694 MUAH 52,282 39,248 Krungsri 121,286 113,328 Total (1) ¥ 746,929 ¥ 684,513 Note: (1) The above table does not include loans held for sale of ¥61 million and ¥3,969 million at March 31, 2018 and September 30, 2018, respectively, and loans acquired with deteriorated credit quality of ¥6,659 million and ¥5,899 million, at March 31, 2018 and September 30, 2018, respectively. Impaired Loans The MUFG Group’s impaired loans primarily include nonaccrual loans and troubled debt restructurings (“TDRs”). The following table shows information about impaired loans by class at March 31, 2018 and September 30, 2018: Recorded Loan Balance At March 31, 2018: Requiring Not Requiring (1) Total (2) Unpaid Related (in millions) Commercial Domestic ¥ 626,469 ¥ 188,984 ¥ 815,453 ¥ 875,795 ¥ 331,851 Manufacturing 361,268 36,566 397,834 408,124 166,098 Construction 10,936 7,172 18,108 18,490 7,921 Real estate 43,553 23,053 66,606 71,809 10,665 Services 38,097 16,600 54,697 59,335 25,890 Wholesale and retail 128,661 49,628 178,289 189,404 94,832 Banks and other financial institutions 1,125 26 1,151 1,151 972 Communication and information services 18,782 7,852 26,634 28,082 16,041 Other industries 12,978 34,282 47,260 67,525 5,350 Consumer 11,069 13,805 24,874 31,875 4,082 Foreign-excluding MUAH and Krungsri 122,243 40,249 162,492 190,518 82,855 Loans acquired with deteriorated credit quality 7,837 — 7,837 15,470 4,324 Residential 105,089 6,261 111,350 134,777 16,928 Card 66,964 388 67,352 74,840 21,223 MUAH 48,895 33,650 82,545 94,565 7,743 Krungsri 58,529 25,565 84,094 90,957 29,402 Total (3) ¥ 1,036,026 ¥ 295,097 ¥ 1,331,123 ¥ 1,476,922 ¥ 494,326 Recorded Loan Balance At September 30, 2018: Requiring Not Requiring (1) Total (2) Unpaid Related (in millions) Commercial Domestic ¥ 585,995 ¥ 191,468 ¥ 777,463 ¥ 834,391 ¥ 240,718 Manufacturing 351,225 36,331 387,556 397,682 88,726 Construction 8,117 6,563 14,680 15,238 6,355 Real estate 24,030 32,229 56,259 61,461 7,386 Services 33,550 15,285 48,835 52,350 23,329 Wholesale and retail 126,183 46,559 172,742 183,688 89,851 Banks and other financial institutions 1,771 25 1,796 1,796 1,583 Communication and information services 17,373 7,701 25,074 26,641 15,141 Other industries 13,004 35,894 48,898 67,095 5,376 Consumer 10,742 10,881 21,623 28,440 2,971 Foreign-excluding MUAH and Krungsri 124,631 23,959 148,590 169,822 69,774 Loans acquired with deteriorated credit quality 7,621 — 7,621 14,920 5,679 Residential 99,610 6,865 106,475 128,263 14,488 Card 65,783 391 66,174 73,590 21,686 MUAH 39,445 28,533 67,978 85,520 6,464 Krungsri 54,165 26,290 80,455 87,871 27,900 Total (3) ¥ 977,250 ¥ 277,506 ¥ 1,254,756 ¥ 1,394,377 ¥ 386,709 Notes: (1) 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, loans’ observable market price, or the fair value of the collateral if the loan is a collateral-dependent loan. (2) Included in impaired loans at March 31, 2018 and September 30, 2018 are accrual TDRs as follows: ¥536,748 million and ¥525,746 million—Commercial; ¥40,734 million and ¥36,915 million—Residential; ¥28,541 million and ¥27,377 million—Card; ¥39,333 million and ¥37,281 million—MUFG Americas Holdings; and ¥24,899 million and ¥26,453 million—Krungsri, respectively. (3) In addition to impaired loans presented in the above table, there were impaired loans held for sale of ¥61 million and ¥1,946 million at March 31, 2018 and September 30, 2018, respectively. The following table shows information regarding the average recorded loan balance and recognized interest income on impaired loans for the six months ended September 30, 2017 and 2018: 2017 2018 Average Recognized Average Recognized (in millions) Commercial Domestic ¥ 952,510 ¥ 4,830 ¥ 796,431 ¥ 5,846 Manufacturing 509,211 1,812 392,695 2,787 Construction 20,112 144 16,393 162 Real estate 77,940 574 61,434 544 Services 62,750 381 51,767 420 Wholesale and retail 190,328 1,109 175,516 1,385 Banks and other financial institutions 2,030 7 1,474 4 Communication and information services 24,872 192 25,854 246 Other industries 34,783 387 48,080 91 Consumer 30,484 224 23,218 207 Foreign-excluding MUAH and Krungsri 235,723 3,573 153,708 1,598 Loans acquired with deteriorated credit quality 8,817 563 7,648 194 Residential 123,441 846 108,914 856 Card 71,080 1,052 66,762 857 MUAH 64,293 898 66,505 955 Krungsri 71,176 1,788 83,239 2,640 Total ¥ 1,527,040 ¥ 13,550 ¥ 1,283,207 ¥ 12,946 Interest income on nonaccrual loans for all classes was recognized on a cash basis when ultimate collectibility of principal was certain. Otherwise, cash receipts were applied as principal reductions. Interest income on accruing impaired loans, including TDRs, was recognized on an accrual basis to the extent that the collectibility of interest income was reasonably certain based on management’s assessment. The following table shows a roll-forward of accrual TDRs and other impaired loans (including nonaccrual TDRs) for the six months ended September 30, 2017 and 2018: 2017 2018 (in millions) Accrual TDRs: Balance at beginning of period ¥ 819,819 ¥ 670,255 Additions (new accrual TDR status) (1) 65,483 40,021 Transfers to other impaired loans (including nonaccrual TDRs) (16,624 ) (9,623 ) Loans sold (16,776 ) (26 ) Principal payments and other (140,664 ) (46,855 ) Balance at end of period (1) ¥ 711,238 ¥ 653,772 Other impaired loans (including nonaccrual TDRs): Balance at beginning of period ¥ 896,031 ¥ 660,868 Additions (new other impaired loans (including nonaccrual TDRs) status) (1)(2) 145,885 97,596 Charge-off (57,238 ) (28,410 ) Transfers to accrual TDRs (20,000 ) (14,548 ) Loans sold (22,482 ) (2,496 ) Principal payments and other (137,124 ) (112,026 ) Balance at end of period (1) ¥ 805,072 ¥ 600,984 Notes: (1) For the six months ended September 30, 2017, lease receivables of ¥880 million and ¥70 million in the Krungsri segment, which were accrual TDRs and nonaccrual TDRs, respectively, are excluded from the additions of accrual TDRs and other impaired loans, respectively, and the related ending balances of such TDRs amounting to ¥4,644 million and ¥628 million, are also excluded from the balance of accrual TDRs and other impaired loans, respectively, as of September 30, 2017. For the six months ended September 30, 2018, lease receivables of ¥538 million and ¥50 million in the Krungsri segment, which were accrual TDRs and nonaccrual TDRs, respectively, are excluded from the additions of accrual TDRs and other impaired loans, respectively, and the related ending balances of such TDRs amounting to ¥3,642 million and ¥1,135 million, are also excluded from the balance of accrual TDRs and other impaired loans, respectively, as of September 30, 2018. (2) Included in the additions of other impaired loans for the six months ended September 30, 2017 and 2018 are nonaccrual TDRs as follows: ¥6,489 million and ¥6,870 million—Card; ¥3,366 million and ¥9,809 million—MUFG Americas Holdings; and ¥6,108 million and ¥6,499 million—Krungsri, respectively. Troubled Debt Restructurings The following table summarizes the MUFG Group’s TDRs by class for the six months ended September 30, 2017 and 2018: 2017 2018 Troubled Debt Troubled Debt Troubled Debt Troubled Debt Pre- Post- Recorded Pre- Post- Recorded (in millions) Commercial (1)(3) Domestic ¥ 28,645 ¥ 28,603 ¥ 2,996 ¥ 20,440 ¥ 20,440 ¥ 1,643 Manufacturing 12,502 12,460 368 4,594 4,594 74 Construction 142 142 — 43 43 — Real estate 1,107 1,107 10 561 561 — Services 2,343 2,343 680 1,505 1,505 436 Wholesale and retail 9,889 9,889 1,778 12,240 12,240 615 Banks and other financial institutions 246 246 — — — — Communication and information services 1,072 1,072 135 156 156 518 Other industries 425 425 — 312 312 — Consumer 919 919 25 1,029 1,029 — Foreign-excluding MUAH and Krungsri 9,983 9,983 — 5,649 5,649 — Loans acquired with deteriorated credit quality — — — — — — Residential (1)(3) 5,459 5,459 124 4,235 4,235 83 Card (2)(3) 9,570 9,334 1,977 10,382 9,953 1,810 MUAH (2)(3) 18,878 18,878 2,331 11,621 11,621 199 Krungsri (2)(3) 9,856 9,856 1,735 11,889 11,889 3,545 Total ¥ 82,391 ¥ 82,113 ¥ 9,163 ¥ 64,216 ¥ 63,787 ¥ 7,280 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 and Krungsri segments include accrual and nonaccrual loans. (3) For the six months ended September 30, 2017 and 2018, extension of the stated maturity date of loans was the primary concession type in the Commercial, Residential, MUFG Americas Holdings and Krungsri segments, reduction in the stated rate was the primary concession type in the Card segment. The following table summarizes outstanding recorded investment balances of TDRs by class at March 31, 2018 and September 30, 2018: March 31, September 30, (in millions) Commercial (1) Domestic ¥ 482,566 ¥ 469,793 Manufacturing 320,702 317,379 Construction 7,362 5,008 Real estate 33,289 30,160 Services 23,987 19,619 Wholesale and retail 70,119 71,529 Banks and other financial institutions 6 142 Communication and information services 12,837 11,939 Other industries 9,712 8,594 Consumer 4,552 5,423 Foreign-excluding MUAH and Krungsri 54,182 55,953 Residential (1) 40,734 36,915 Card (2) 67,352 66,174 MUAH (2) 65,373 63,543 Krungsri (2) 54,036 56,026 Total ¥ 764,243 ¥ 748,404 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 and Krungsri segments include accrual and nonaccrual loans. Included in the outstanding recorded investment balances as of March 31, 2018 and September 30, 2018 are nonaccrual TDRs as follows: ¥38,811 million and ¥38,797 million—Card; ¥26,040 million and ¥26,262 million—MUFG Americas Holdings; and ¥24,855 million and ¥25,931 million—Krungsri, respectively. 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. Those loans are also considered impaired loans, and hence the allowance for credit losses is separately established for each loan. As a result, the amount of allowance for credit losses increases in many cases upon classification as a TDR loan. The amount of pre-modification 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 and Krungsri segments, the TDRs in the above tables represent nonaccrual and accruing loans, and the defaulted loans in the above table represent nonaccruing 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. Credit Quality Indicator Credit quality indicators of loans by class at March 31, 2018 and September 30, 2018 are shown below: At March 31, 2018: Normal Close Likely to become Total (1) (in millions) Commercial Domestic ¥ 49,050,274 ¥ 1,690,924 ¥ 271,456 ¥ 51,012,654 Manufacturing 10,215,497 596,662 57,730 10,869,889 Construction 727,932 43,673 9,116 780,721 Real estate 11,379,291 279,931 32,692 11,691,914 Services 2,467,540 175,733 24,081 2,667,354 Wholesale and retail 7,518,383 374,706 77,870 7,970,959 Banks and other financial institutions 4,800,281 10,923 1,145 4,812,349 Communication and information services 1,491,093 48,153 11,958 1,551,204 Other industries 8,780,517 120,466 36,951 8,937,934 Consumer 1,669,740 40,677 19,913 1,730,330 Foreign-excluding MUAH and Krungsri 36,049,123 569,137 108,276 36,726,536 Loans acquired with deteriorated credit quality 12,035 11,728 3,562 27,325 Total ¥ 85,111,432 ¥ 2,271,789 ¥ 383,294 ¥ 87,766,515 Accrual Nonaccrual Total (1) (in millions) Residential ¥ 14,012,978 ¥ 67,258 ¥ 14,080,236 Card ¥ 528,108 ¥ 61,707 ¥ 589,815 Credit Quality Based on Credit Quality Based on Accrual Nonaccrual Pass Special Classified Total (1)(2) (in millions) MUAH ¥ 4,360,445 ¥ 14,238 ¥ 4,509,044 ¥ 59,890 ¥ 116,842 ¥ 9,060,459 Normal Special Substandard or Total (1) (in millions) Krungsri ¥ 5,284,018 ¥ 198,526 ¥ 123,106 ¥ 5,605,650 At September 30, 2018: Normal Close Likely to become Total (1) (in millions) Commercial Domestic ¥ 48,890,218 ¥ 1,341,229 ¥ 250,970 ¥ 50,482,417 Manufacturing 10,346,070 312,971 51,563 10,710,604 Construction 647,261 42,713 8,362 698,336 Real estate 11,404,353 252,057 25,158 11,681,568 Services 2,369,508 173,272 24,350 2,567,130 Wholesale and retail 7,414,787 345,008 72,928 7,832,723 Banks and other financial institutions 4,863,465 7,860 1,654 4,872,979 Communication and information services 1,494,291 44,645 11,340 1,550,276 Other industries 8,778,527 124,001 39,829 8,942,357 Consumer 1,571,956 38,702 15,786 1,626,444 Foreign-excluding MUAH and Krungsri 37,231,943 537,483 93,785 37,863,211 Loans acquired with deteriorated credit quality 11,194 12,391 3,270 26,855 Total ¥ 86,133,355 ¥ 1,891,103 ¥ 348,025 ¥ 88,372,483 Accrual Nonaccrual Total (1) (in millions) Residential ¥ 13,794,000 ¥ 66,329 ¥ 13,860,329 Card ¥ 519,794 ¥ 61,995 ¥ 581,789 Credit Quality Based on Credit Quality Based on Accrual Nonaccrual Pass Special Classified Total (1)(2) (in millions) MUAH ¥ 4,517,991 ¥ 13,596 ¥ 4,403,693 ¥ 57,260 ¥ 103,156 ¥ 9,095,696 Normal Special Substandard or Total (1) (in millions) Krungsri ¥ 5,496,214 ¥ 197,527 ¥ 115,084 ¥ 5,808,825 Notes: (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. (2 ) Total loans of MUFG Americas Holdings do not include Federal Deposit Insurance Corporation (“FDIC”) covered loans which are not individually rated totaling ¥953 million and ¥825 million at March 31, 2018 and September 30, 2018, respectively. The MUFG Group will be reimbursed for a substantial portion of any future losses on FDIC covered loans under the terms of the FDIC loss share agreements. 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, 2018. For the Commercial, Residential and Card segments, credit quality indicators at March 31, 2018 and September 30, 2018 are based on information as of March 31, 2018 and September 30, 2018, respectively. For the MUFG Americas Holdings and Krungsri segments, credit quality indicators at March 31, 2018 and September 30, 2018 are generally based on information as of December 31, 2017 and June 30, 2018, respectively. Past Due Analysis Ages of past due loans by class at March 31, 2018 and September 30, 2018 are shown below: At March 31, 2018: 1-3 months Greater Total Current Total (1)(2) Recorded (in millions) Commercial Domestic ¥ 13,290 ¥ 43,913 ¥ 57,203 ¥ 50,955,451 ¥ 51,012,654 ¥ 6,419 Manufacturing 1,495 1,300 2,795 10,867,094 10,869,889 — Construction 359 437 796 779,925 780,721 — Real estate 2,090 3,225 5,315 11,686,599 11,691,914 1,633 Services 1,025 620 1,645 2,665,709 2,667,354 26 Wholesale and retail 3,886 4,198 8,084 7,962,875 7,970,959 1,349 Banks and other financial institutions — 21 21 4,812,328 4,812,349 — Communication and information services 657 328 985 1,550,219 1,551,204 — Other industries 251 28,315 28,566 8,909,368 8,937,934 — Consumer 3,527 5,469 8,996 1,721,334 1,730,330 3,411 Foreign-excluding MUAH and Krungsri 12,512 19,655 32,167 36,694,369 36,726,536 1,083 Residential 78,073 19,399 97,472 13,974,118 14,071,590 10,806 Card 18,887 32,218 51,105 528,284 579,389 — MUAH 23,145 13,648 36,793 9,009,426 9,046,219 771 Krungsri 116,665 99,315 215,980 5,383,477 5,599,457 — Total ¥ 262,572 ¥ 228,148 ¥ 490,720 ¥ 116,545,125 ¥ 117,035,845 ¥ 19,079 At September 30, 2018: 1-3 months Greater Total Current Total (1)(2) Recorded (in millions) Commercial Domestic ¥ 13,946 ¥ 46,030 ¥ 59,976 ¥ 50,422,441 ¥ 50,482,417 ¥ 5,551 Manufacturing 1,368 1,694 3,062 10,707,542 10,710,604 — Construction 589 313 902 697,434 698,336 13 Real estate 2,302 4,744 7,046 11,674,522 11,681,568 1,948 Services 707 789 1,496 2,565,634 2,567,130 — Wholesale and retail 4,181 1,960 6,141 7,826,582 7,832,723 73 Banks and other financial institutions — 24 24 4,872,955 4,872,979 — Communication and information services 1,170 181 1,351 1,548,925 1,550,276 — Other industries 229 30,648 30,877 8,911,480 8,942,357 — Consumer 3,400 5,677 9,077 1,617,367 1,626,444 3,517 Foreign-excluding MUAH and Krungsri 12,655 18,383 31,038 37,832,173 37,863,211 916 Residential 70,006 16,581 86,587 13,765,686 13,852,273 7,422 Card 17,700 32,058 49,758 528,174 577,932 — MUAH 21,226 13,764 34,990 9,048,818 9,083,808 763 Krungsri 121,122 94,001 215,123 5,587,828 5,802,951 — Total ¥ 256,655 ¥ 220,817 ¥ 477,472 ¥ 117,185,120 ¥ 117,662,592 ¥ 14,652 Notes: (1 ) Total loans in the above table do not include loans held for sale and loans acquired with deteriorated credit quality and represent balances without adjustments in relation to unearned income, unamortized premiums and deferred loan fees. (2 ) Total loans of MUFG Americas Holdings do not include ¥5 million and nil of FDIC covered loans at March 31, 2018 and September 30, 2018, respectively, which are not subject to the guidance on loans and debt securities acquired with deteriorated credit quality. Allowance for Credit Losses Changes in the allowance for credit losses by portfolio segment for the six months ended September 30, 2017 and 2018 are shown below: Six months ended September 30, 2017: Commercial Residential Card MUAH Krungsri Total (in millions) Allowance for credit losses: Balance at beginning of period ¥ 900,686 ¥ 67,336 ¥ 30,165 ¥ 73,733 ¥ 110,268 ¥ 1,182,188 Provision for (reversal of) credit losses (207,025 ) (16,024 ) 10,669 (5,882 ) 31,694 (186,568 ) Charge-offs 55,204 2,238 11,047 9,241 26,274 104,004 Recoveries 12,376 666 695 1,547 8,372 23,656 Net charge-offs 42,828 1,572 10,352 7,694 17,902 80,348 Others (1) 1,709 — — (2,679 ) 1,879 909 Balance at end of period ¥ 652,542 ¥ 49,740 ¥ 30,482 ¥ 57,478 ¥ 125,939 ¥ 916,181 Six months ended September 30, 2018: Commercial Residential Card MUAH Krungsri Total (in millions) Allowance for credit losses: Balance at beginning of period ¥ 491,098 ¥ 42,546 ¥ 32,119 ¥ 53,765 ¥ 144,596 ¥ 764,124 Provision for (reversal of) credit losses (104,297 ) (1,651 ) 12,400 1,423 21,065 (71,060 ) Charge-offs 22,432 1,648 12,401 7,909 30,213 74,603 Recoveries 6,616 416 500 1,448 10,119 19,099 Net charge-offs 15,816 1,232 11,901 6,461 20,094 55,504 Others (1) 3,368 — — (1,274 ) (5,045 ) (2,951 ) Balance at end of period ¥ 374,353 ¥ 39,663 ¥ 32,618 ¥ 47,453 ¥ 140,522 ¥ 634,609 Note: (1 ) Others are principally comprised of gains or losses from foreign exchange translation. Allowance for credit losses and recorded investment in loans by portfolio segment at March 31, 2018 and September 30, 2018 are shown below: At March 31, 2018: Commercial Residential Card MUAH Krungsri Total (in millions) Allowance for credit losses: Individually evaluated for impairment ¥ 414,706 ¥ 16,644 ¥ 21,223 ¥ 7,743 ¥ 29,402 ¥ 489,718 Collectively evaluated for impairment 64,375 24,718 10,884 45,571 115,161 260,709 Loans acquired with deteriorated credit quality 12,017 1,184 12 451 33 13,697 Total ¥ 491,098 ¥ 42,546 ¥ 32,119 ¥ 53,765 ¥ 144,596 ¥ 764,124 Loans: Individually evaluated for impairment ¥ 977,945 ¥ 110,197 ¥ 66,957 ¥ 82,545 ¥ 84,094 ¥ 1,321,738 Collectively evaluated for impairment 86,761,245 13,961,393 512,432 8,963,679 5,515,363 115,714,112 Loans acquired with deteriorated credit quality 27,325 8,646 10,426 15,188 6,193 67,778 Total (1) ¥ 87,766,515 ¥ 14,080,236 ¥ 589,815 ¥ 9,061,412 ¥ 5,605,650 ¥ 117,103,628 At September 30, 2018: Commercial Residential Card MUAH Krungsri Total (in millions) Allowance for credit losses: Individually evaluated for impairment ¥ 310,492 ¥ 14,275 ¥ 21,686 ¥ 6,464 ¥ 27,900 ¥ 380,817 Collectively evaluated for impairment 50,080 24,042 10,921 40,655 112,592 238,290 Loans acquired with deteriorated credit quality 13,781 1,346 11 334 30 15,502 Total ¥ 374,353 ¥ 39,663 ¥ 32,618 ¥ 47,453 ¥ 140,522 ¥ 634,609 Loans: Individually evaluated for impairment ¥ 926,053 ¥ 105,647 ¥ 65,805 ¥ 67,978 ¥ 80,455 ¥ 1,245,938 Collectively evaluated for impairment 87,419,575 13,746,626 512,127 9,015,830 5,722,496 116,416,654 Loans acquired with deteriorated credit quality 26,855 8,056 3,857 12,713 5,874 57,355 Total (1) ¥ 88,372,483 ¥ 13,860,329 ¥ 581,789 ¥ 9,096,521 ¥ 5,808,825 ¥ 117,719,947 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 sold ¥580 billion and ¥590 billion of loans within the Commercial segment during the six months ended September 30, 2017 and 2018, respectively. |