Business Segments [Text Block] | Business Segment Analysis Starting from April 1, 2018, as part of our current medium-term business plan, we have reorganized our business groups in an effort to further integrate the expertise and capabilities of our subsidiaries to respond to the needs of our customers more effectively and efficiently. We make and execute unified group-wide strategies based on customer characteristics and the nature of business and have accordingly integrated the operations of our group companies into six business groups—Retail & Commercial Banking, Japanese Corporate & Investment Banking, Global Corporate & Investment Banking, Global Commercial Banking, Asset Management & Investor Services, and Global Markets. Our reporting segments consist of these six business groups, which serve as the core sources of our revenue, as well as “Other,” which represents the operations that are not covered under the six core business groups and the elimination of duplicated amounts of net revenues among business segments, as further described below. We measure the performance of each of our business segments primarily in terms of “operating profit.” Operating profit and other segment information in this Report are based on the financial information prepared in accordance with Japanese GAAP as adjusted in accordance with internal management accounting rules and practices. Accordingly, the format and information are not consistent with our unaudited condensed consolidated financial statements prepared in accordance with U.S. GAAP. For example, operating profit does not reflect items such as a component of the provision for (reversal of) credit losses (primarily equivalent to the formula allowance under U.S. GAAP), foreign exchange gains (losses) and investment securities gains (losses). We do not use information on the segments’ total assets to allocate our resources and assess performance. Accordingly, business segment information on total assets is not presented. The following is a brief explanation of our business segments: Retail & Commercial Banking Business Group medium-sized Japanese Corporate & Investment Banking Business Group Global Corporate & Investment Banking Business Group non-Japanese Global Commercial Banking Business Group medium-sized Asset Management & Investor Services Business Group Global Markets Business Group Other Below we have restated our prior business segment information and relevant discussion to reflect the reorganization of our business groups described above and the transfer of corporate loan-related businesses of the Trust Bank to the Bank in April 2018. The following tables set forth our business segment information based on our reorganized business groups for the fiscal years ended March 31, 2016, 2017 and 2018: Customer Business Fiscal year ended March 31, 2016 Retail & Japanese Global Global Asset Total Global Other Total (1) (in billions) Net revenue ¥ 1,645.9 ¥ 568.1 ¥ 431.0 ¥ 599.0 ¥ 176.2 ¥ 3,420.2 ¥ 715.5 ¥ 57.7 ¥ 4,193.4 BK and TB (2) 885.5 476.6 292.4 (2.0 ) 74.2 1,726.7 531.6 137.7 2,396.0 Net interest income 524.3 161.5 114.2 (2.0 ) — 798.0 271.9 256.6 1,326.5 Net fees 319.7 227.9 175.3 — 74.2 797.1 (23.7 ) (79.7 ) 693.7 Other 41.5 87.2 2.9 — — 131.6 283.4 (39.2 ) 375.8 Other than BK and TB 760.4 91.5 138.6 601.0 102.0 1,693.5 183.9 (80.0 ) 1,797.4 Operating expenses 1,234.9 292.0 233.2 436.9 104.4 2,301.4 212.5 152.4 2,666.3 Operating profit (loss) ¥ 411.0 ¥ 276.1 ¥ 197.8 ¥ 162.1 ¥ 71.8 ¥ 1,118.8 ¥ 503.0 ¥ (94.7 ) ¥ 1,527.1 Notes: (1) In accordance with internal management accounting rules and practices, the transfer of corporate loan-related businesses of the Trust Bank to the Bank in April 2018 resulted in a decrease of the total operating profit by ¥23.9 billion for the fiscal year ended March 31, 2016. (2) “BK and TB” is a sum of MUFG Bank, Ltd. on a stand-alone basis and Mitsubishi UFJ Trust and Banking Corporation on a stand-alone basis. Customer Business Fiscal year ended Retail & Japanese Global Global Asset Total Global Other Total (1) (in billions) Net revenue ¥ 1,568.0 ¥ 527.1 ¥ 418.3 ¥ 628.6 ¥ 176.7 ¥ 3,318.7 ¥ 686.8 ¥ 56.3 ¥ 4,061.8 BK and TB (2) 817.0 446.9 275.6 (1.8 ) 72.7 1,610.4 491.5 88.6 2,190.5 Net interest income 482.0 143.8 107.3 (1.7 ) — 731.4 291.0 199.4 1,221.8 Net fees 300.6 245.0 177.3 — 72.7 795.6 (8.2 ) (98.8 ) 688.6 Other 34.4 58.1 (9.0 ) (0.1 ) — 83.4 208.7 (12.0 ) 280.1 Other than BK and TB 751.0 80.2 142.7 630.4 104.0 1,708.3 195.3 (32.3 ) 1,871.3 Operating expenses 1,234.1 290.0 236.0 435.8 114.7 2,310.6 217.4 162.3 2,690.3 Operating profit (loss) ¥ 333.9 ¥ 237.1 ¥ 182.3 ¥ 192.8 ¥ 62.0 ¥ 1,008.1 ¥ 469.4 ¥ (106.0 ) ¥ 1,371.5 Notes: (1) In accordance with internal management accounting rules and practices, the transfer of corporate loan-related businesses of the Trust Bank to the Bank in April 2018 resulted in a decrease of the total operating profit by ¥24.3 billion for the fiscal year ended March 31, 2017. (2) “BK and TB” is a sum of MUFG Bank, Ltd. on a stand-alone basis and Mitsubishi UFJ Trust and Banking Corporation on a stand-alone basis. Customer Business Fiscal year ended March 31, 2018 Retail & Japanese Global Global Asset Total Global Other Total (1) (in billions) Net revenue ¥ 1,584.3 ¥ 522.6 ¥ 378.6 ¥ 666.3 ¥ 190.4 ¥ 3,342.2 ¥ 565.2 ¥ 10.7 ¥ 3,918.1 BK and TB (2) 785.9 439.8 246.3 (3.5 ) 83.8 1,552.3 368.6 109.0 2,029.9 Net interest income 465.8 150.7 95.2 (3.4 ) — 708.3 182.0 229.4 1,119.7 Net fees 288.4 233.2 153.1 — 83.8 758.5 (12.2 ) (79.1 ) 667.2 Other 31.7 55.9 (2.0 ) (0.1 ) — 85.5 198.8 (41.3 ) 243.0 Other than BK and TB 798.4 82.8 132.3 669.8 106.6 1,789.9 196.6 (98.3 ) 1,888.2 Operating expenses 1,227.6 295.6 242.8 463.6 119.4 2,349.0 225.7 142.8 2,717.5 Operating profit (loss) ¥ 356.7 ¥ 227.0 ¥ 135.8 ¥ 202.7 ¥ 71.0 ¥ 993.2 ¥ 339.5 ¥ (132.1 ) ¥ 1,200.6 Notes: (1) In accordance with internal management accounting rules and practices, the transfer of corporate loan-related businesses of the Trust Bank to the Bank in April 2018 resulted in a decrease of the total operating profit by ¥23.5 billion for the fiscal year ended March 31, 2018. (2) “BK and TB” is a sum of MUFG Bank, Ltd. on a stand-alone basis and Mitsubishi UFJ Trust and Banking Corporation on a stand-alone basis. Fiscal Year Ended March 31, 2018 Compared to Fiscal Year Ended March 31, 2017 Retail & Commercial Banking Business Group Net revenue of the Retail & Commercial Banking Business Group increased ¥16.3 billion to ¥1,584.3 billion for the fiscal year ended March 31, 2018 from ¥1,568.0 billion for the fiscal year ended March 31, 2017. The Retail & Commercial Banking Business Group’s net revenue mainly consists of interest income from lending and deposit-taking operations and fees relating to credit card settlement, consumer financing, real estate and stock transfer services for Japanese domestic individual and small to medium-sized Operating expenses of the Retail & Commercial Banking Business Group decreased ¥6.5 billion to ¥1,227.6 billion for the fiscal year ended March 31, 2018 from ¥1,234.1 billion for the fiscal year ended March 31, 2017, mainly resulting from our cost reduction measures. As a result, operating profit of the Retail & Commercial Banking Business Group increased ¥22.8 billion to ¥356.7 billion for the fiscal year ended March 31, 2018 from ¥333.9 billion for the fiscal year ended March 31, 2017. Japanese Corporate & Investment Banking Business Group Net revenue of the Japanese Corporate & Investment Banking Business Group decreased ¥4.5 billion to ¥522.6 billion for the fiscal year ended March 31, 2018 from ¥527.1 billion for the fiscal year ended March 31, 2017. The Japanese Corporate & Investment Banking Business Group’s net revenue mainly consists of interest income from lending and deposit-taking operations and fees relating to financing, investment banking, real estate and stock transfer services for large Japanese corporate customers. The lower net revenue mainly reflected a decrease in fee income from the sales of derivative instruments and lower net revenues from the M&A and underwriting businesses, mainly reflecting reduced corporate investment and financing activities due to uncertainties surrounding the financial market. The lower net revenue was also attributable to decreases in net interest income related to domestic operations funded by deposits and net revenue from loans to domestic corporate clients due to tighter interest rate spreads in the near-zero interest rate environment in Japan, which more than offset the increases in net interest income related to overseas operations funded by deposits and net revenue from loans to overseas corporate clients. Operating expenses of the Japanese Corporate & Investment Banking Business Group increased ¥5.6 billion to ¥295.6 billion for the fiscal year ended March 31, 2018 from ¥290.0 billion for the fiscal year ended March 31, 2017. This increase was primarily due to the increased volume of overseas Japanese corporate business and higher expenses for global financial regulatory compliance purposes. As a result, operating profit of the Japanese Corporate & Investment Banking Business Group decreased ¥10.1 billion to ¥227.0 billion for the fiscal year ended March 31, 2018 from ¥237.1 billion for the fiscal year ended March 31, 2017. Global Corporate & Investment Banking Business Group Net revenue of the Global Corporate & Investment Banking Business Group decreased ¥39.7 billion to ¥378.6 billion for the fiscal year ended March 31, 2018 from ¥418.3 billion for the fiscal year ended March 31, 2017. The Global Corporate & Investment Banking Business Group’s net revenue mainly consists of interest income from lending and deposit-taking operations and fees and commissions from investment banking services and foreign exchange and derivatives transactions for large non- Japanese corporate and institutional customers outside Japan. The lower net revenue was mainly due to a decrease in the volume of M&A finance business in the United States as well as the application of stricter business acceptance criteria as part of our effort to improve profitability. Operating expenses of the Global Corporate & Investment Banking Business Group increased ¥6.8 billion to ¥242.8 billion for the fiscal year ended March 31, 2018 from ¥236.0 billion for the fiscal year ended March 31, 2017, reflecting higher expenses for global financial regulatory compliance purposes. As a result, operating profit of the Global Corporate & Investment Banking Business Group decreased ¥46.5 billion to ¥135.8 billion for the fiscal year ended March 31, 2018 from ¥182.3 billion for the fiscal year ended March 31, 2017. Global Commercial Banking Business Group Net revenue of the Global Commercial Banking Business Group increased ¥37.7 billion to ¥666.3 billion for the fiscal year ended March 31, 2018 from ¥628.6 billion for the fiscal year ended March 31, 2017. The Global Commercial Banking Business Group’s net revenue mainly consists of interest income from lending and deposit-taking operations and fees from remittances and transfers, consumer finance and wealth related services for individual and small to medium-sized Operating expenses of the Global Commercial Banking Business Group increased ¥27.8 billion to ¥463.6 billion for the fiscal year ended March 31, 2018 from ¥435.8 billion for the fiscal year ended March 31, 2017, reflecting higher expenses in Krungsri primarily due to increased business volume. As a result, operating profit of the Global Commercial Banking Business Group increased ¥9.9 billion to ¥202.7 billion for the fiscal year ended March 31, 2018 from ¥192.8 billion for the fiscal year ended March 31, 2017. Asset Management & Investor Services Business Group Net revenue of the Asset Management & Investor Services Business Group increased ¥13.7 billion to ¥190.4 billion for the fiscal year ended March 31, 2018 from ¥176.7 billion for the fiscal year ended March 31, 2017. The Asset Management & Investor Services Business Group’s net revenue mainly consists of fees from asset management and administration services for products, such as pension trusts and mutual funds. Net revenue of the Trust Assets Business Group increased mainly due to an increase in income from the fund administration and custody services globally, reflecting the contributions of our recently acquired overseas subsidiaries. Operating expenses of the Asset Management & Investor Services Business Group increased ¥4.7 billion to ¥119.4 billion for the fiscal year ended March 31, 2018 from ¥114.7 billion for the fiscal year ended March 31, 2017. This was mainly due to the expansion of our fund administration and custody businesses globally through acquisitions. As a result, operating profit of the Asset Management & Investor Services Business Group increased ¥9.0 billion to ¥71.0 billion for the fiscal year ended March 31, 2018 from ¥62.0 billion for the fiscal year ended March 31, 2017. Global Markets Business Group Net revenue of the Global Markets Business Group decreased ¥121.6 billion to ¥565.2 billion for the fiscal year ended March 31, 2018 from ¥686.8 billion for the fiscal year ended March 31, 2017. This was mainly due to a decrease in net revenue from the asset liability management operations, primarily reflecting a decrease in realized gains on sales of foreign government bonds as well as a decrease in interest income due to the reduction of our foreign government bond portfolio and the flattening of the yield curve of U.S. Treasury bonds. The decrease in net revenue was also attributable to lower net revenue from the sales and trading business in Japan, reflecting the low volatility in interest rates. Operating expenses of the Global Markets Business Group increased ¥8.3 billion to ¥225.7 billion for the fiscal year ended March 31, 2018 from ¥217.4 billion for the fiscal year ended March 31, 2017, reflecting higher expenses in our overseas securities subsidiaries primarily with larger volumes of sales and trading business as well as higher expenses for financial regulatory compliance purposes. As a result, operating profit of the Global Markets Business Group decreased ¥129.9 billion to ¥339.5 billion for the fiscal year ended March 31, 2018 from ¥469.4 billion for the fiscal year ended March 31, 2017. Fiscal Year Ended March 31, 2017 Compared to Fiscal Year Ended March 31, 2016 Retail & Commercial Banking Business Group Net revenue of the Retail & Commercial Banking Business Group decreased ¥77.9 billion to ¥1,568.0 billion for the fiscal year ended March 31, 2017 from ¥1,645.9 billion for the fiscal year ended March 31, 2016. The Retail & Commercial Banking Business Group’s net revenue mainly consists of interest income from lending and deposit-taking operations and fees relating to credit card settlement, consumer financing, real estate and stock transfer services for Japanese domestic individual and small to medium-sized Operating expenses of the Retail & Commercial Banking Business Group decreased ¥0.8 billion to ¥1,234.1 billion for the fiscal year ended March 31, 2017 from ¥1,234.9 billion for the fiscal year ended March 31, 2016. This decrease mainly resulted from our cost reduction measures, partially offset by an increase in the investments for a system integration project in our consumer finance subsidiary to establish an efficient and effective business platform for cashless payment and credit card services. As a result, operating profit of the Retail & Commercial Banking Business Group decreased ¥77.1 billion to ¥333.9 billion for the fiscal year ended March 31, 2017 from ¥411.0 billion for the fiscal year ended March 31, 2016. Japanese Corporate & Investment Banking Business Group Net revenue of the Japanese Corporate & Investment Banking Business Group decreased ¥41.0 billion to ¥527.1 billion for the fiscal year ended March 31, 2017 from ¥568.1 billion for the fiscal year ended March 31, 2016. The Japanese Corporate & Investment Banking Business Group’s net revenue mainly consists of interest income from lending and deposit-taking operations and fees relating to financing, investment banking, real estate and stock transfer services for large Japanese corporate customers. The lower net revenue mainly reflected decreases in net revenue related to operations funded by deposits and net revenue from loans to corporate clients due to tighter interest rate spreads in the near-zero interest rate environment in Japan, as well as a decrease in fee income from the sales of derivative instruments. These decreases were offset in part by an increase in fees and commissions from hybrid financing transactions, including syndicated loans. Operating expenses of the Japanese Corporate & Investment Banking Business Group decreased ¥2.0 billion to ¥290.0 billion for the fiscal year ended March 31, 2017 from ¥292.0 billion for the fiscal year ended March 31, 2016. This decrease mainly reflected a decrease in expenses associated with domestic operations, which was partially offset by an increase in expenses for overseas operations. As a result, operating profit of the Japanese Corporate & Investment Banking Business Group decreased ¥39.0 billion to ¥237.1 billion for the fiscal year ended March 31, 2017 from ¥276.1 billion for the fiscal year ended March 31, 2016. Global Corporate & Investment Banking Business Group Net revenue of the Global Corporate & Investment Banking Business Group decreased ¥12.7 billion to ¥418.3 billion for the fiscal year ended March 31, 2017 from ¥431.0 billion for the fiscal year ended March 31, 2016. The Global Corporate & Investment Banking Business Group’s net revenue mainly consists of interest income from lending and deposit-taking operations and fees and commissions from investment banking services and foreign exchange and derivatives transactions for large non-Japanese Operating expenses of the Global Corporate & Investment Banking Business Group increased ¥2.8 billion to ¥236.0 billion for the fiscal year ended March 31, 2017 from ¥233.2 billion for the fiscal year ended March 31, 2016, reflecting an increase in expenses for global financial regulatory compliance purposes. As a result, operating profit of the Global Corporate & Investment Banking Business Group decreased ¥15.5 billion to ¥182.3 billion for the fiscal year ended March 31, 2017 from ¥197.8 billion for the fiscal year ended March 31, 2016. Global Commercial Banking Business Group Net revenue of the Global Commercial Banking Business Group increased ¥29.6 billion to ¥628.6 billion for the fiscal year ended March 31, 2017 from ¥599.0 billion for the fiscal year ended March 31, 2016. The Global Commercial Banking Business Group’s net revenue mainly consists of interest income from lending and deposit-taking operations and fees from remittances and transfers, consumer finance and wealth related services for individual and small to medium-sized Operating expenses of the Global Commercial Banking Business Group decreased ¥1.1 billion to ¥435.8 billion for the fiscal year ended March 31, 2017 from ¥436.9 billion for the fiscal year ended March 31, 2016, reflecting an increase in expenses in Krungsri primarily due to the larger volumes of business. The increase was partially mitigated by our cost management measures, particularly in the Americas. As a result, operating profit of the Global Commercial Banking Business Group increased ¥30.7 billion to ¥192.8 billion for the fiscal year ended March 31, 2017 from ¥162.1 billion for the fiscal year ended March 31, 2016. Asset Management & Investor Services Business Group Net revenue of the Asset Management & Investor Services Business Group increased ¥0.5 billion to ¥176.7 billion for the fiscal year ended March 31, 2017 from ¥176.2 billion for the fiscal year ended March 31, 2016. The Asset Management & Investor Services Business Group’s net revenue mainly consists of fees from asset management and administration services for products, such as pension trusts and mutual funds. Net revenue of the Trust Assets Business Group increased mainly due to an increase in income from the fund administration and custody services globally, which was largely offset by a decrease in net revenue attributable to the lower market values of pension funds and investment products, reflecting weaker equity prices in Japan between April 2016 and the U.S. presidential election in November 2016. Operating expenses of the Asset Management & Investor Services Business Group increased ¥10.3 billion to ¥114.7 billion for the fiscal year ended March 31, 2017 from ¥104.4 billion for the fiscal year ended March 31, 2016. This was mainly due to the expansion of our fund administration and custody services globally. As a result, operating profit of the Asset Management & Investor Services Business Group decreased ¥9.8 billion to ¥62.0 billion for the fiscal year ended March 31, 2017 from ¥71.8 billion for the fiscal year ended March 31, 2016. Global Markets Business Group Net revenue of the Global Markets Business Group decreased ¥28.7 billion to ¥686.8 billion for the fiscal year ended March 31, 2017 from ¥715.5 billion for the fiscal year ended March 31, 2016. This was mainly due to a decrease in profits on sales of foreign currency-denominated bonds as we reduced the balance of our foreign government bond portfolio in anticipation of, and reaction to, rising interest rates in the United States. Operating expenses of the Global Markets Business Group increased ¥4.9 billion to ¥217.4 billion for the fiscal year ended March 31, 2017 from ¥212.5 billion for the fiscal year ended March 31, 2016, reflecting higher costs for a system integration project to enhance coordination and collaboration in the sales and trading business between our commercial banking subsidiaries and our securities subsidiaries as well as higher expenses for financial regulatory compliance purposes. As a result, operating profit of the Global Markets Business Group decreased ¥33.6 billion to ¥469.4 billion for the fiscal year ended March 31, 2017 from ¥503.0 billion for the fiscal year ended March 31, 2016. |