Loans and Allowance for Credit Losses [Text Block] | 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans at March 31, 2018 and 2019 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. 2018 2019 (in millions) Domestic: Manufacturing ¥ 10,876,625 ¥ 11,153,996 Construction 781,262 717,664 Real estate 11,763,769 11,706,419 Services 2,689,086 2,653,191 Wholesale and retail 7,989,080 7,643,397 Banks and other financial institutions (1) 4,818,364 5,213,020 Communication and information services 1,551,533 1,510,596 Other industries 8,939,291 8,756,483 Consumer 16,287,332 15,802,024 Total domestic 65,696,342 65,156,790 Foreign: Governments and official institutions 920,538 841,695 Banks and other financial institutions (1) 12,851,570 11,641,373 Commercial and industrial 30,591,173 31,951,169 Other 7,270,928 7,597,502 Total foreign 51,634,209 52,031,739 Unearned income, unamortized premiums—net and deferred loan fees—net (294,656 ) (304,588 ) Total (2) ¥ 117,035,895 ¥ 116,883,941 Notes: (1) Loans to so-called “non-bank Non-bank (2) The above table includes loans held for sale of ¥226,923 million and ¥291,794 million at March 31, 2018 and 2019, respectively. The MUFG Group classifies its loan portfolio into the following portfolio segments—Commercial, Residential, Card, MUFG Americas Holdings, and Krungsri based on the grouping used by the MUFG Group to determine the allowance for credit losses. See Note 1 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 for further information. The nonaccrual loans by class at March 31, 2018 and 2019 is shown below: 2018 2019 (in millions) Commercial Domestic ¥ 332,994 ¥ 272,777 Manufacturing 77,163 65,896 Construction 10,791 9,813 Real estate 33,317 23,152 Services 30,717 26,188 Wholesale and retail 108,175 94,531 Banks and other financial institutions 1,145 898 Communication and information services 13,815 11,955 Other industries 37,549 25,406 Consumer 20,322 14,938 Foreign-excluding MUAH and Krungsri 109,516 111,002 Residential 69,464 68,499 Card 61,387 61,419 MUAH 52,282 46,549 Krungsri 121,286 127,424 Total (1) ¥ 746,929 ¥ 687,670 Note: (1) The above table does not include loans held for sale of ¥61 million and ¥12,702 million at March 31, 2018 and 2019, respectively, and loans acquired with deteriorated credit quality of ¥6,659 million and ¥6,284 million at March 31, 2018 and 2019, respectively. Impaired Loans The MUFG Group’s impaired loans primarily include nonaccrual loans and TDRs. The following table shows information about impaired loans by class at March 31, 2018 and 2019: 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 (4) 105,089 6,261 111,350 134,777 16,928 Card (4) 66,964 388 67,352 74,840 21,223 MUAH (4) 48,895 33,650 82,545 94,565 7,743 Krungsri (4) 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 March 31, 2019: Requiring Not Requiring (1) Total (2) Unpaid Related (in millions) Commercial Domestic ¥ 560,474 ¥ 157,465 ¥ 717,939 ¥ 759,399 ¥ 227,004 Manufacturing 349,597 28,189 377,786 384,306 92,919 Construction 8,366 5,975 14,341 14,779 6,574 Real estate 20,848 29,961 50,809 55,943 5,704 Services 30,239 13,020 43,259 46,838 20,059 Wholesale and retail 118,253 45,620 163,873 175,714 84,503 Banks and other financial institutions 1,012 21 1,033 1,033 830 Communication and information services 8,794 6,929 15,723 16,587 6,817 Other industries 13,772 17,989 31,761 38,342 6,874 Consumer 9,593 9,761 19,354 25,857 2,724 Foreign-excluding MUAH and Krungsri 127,521 34,484 162,005 183,133 85,966 Loans acquired with deteriorated credit quality 8,136 — 8,136 14,990 5,450 Residential (4) 97,176 6,495 103,671 120,526 14,357 Card (4) 64,691 330 65,021 72,226 21,829 MUAH (4) 46,552 23,208 69,760 83,300 8,294 Krungsri (4) 57,066 26,193 83,259 90,377 28,254 Total (3) ¥ 961,616 ¥ 248,175 ¥ 1,209,791 ¥ 1,323,951 ¥ 391,154 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 2019 are accrual TDRs as follows: ¥536,748 million and ¥497,013 million—Commercial; ¥40,734 million and ¥34,449 million—Residential; ¥28,541 million and ¥26,183 million—Card; ¥39,333 million and ¥33,155 million—MUFG Americas Holdings; and ¥24,899 million and ¥26,851 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 ¥12,702 million at March 31, 2018 and 2019, respectively. (4) Impaired Loans for Residential, Card, MUAH and Krungsri segments in the above table include loans acquired with deteriorated credit quality. The following table shows information regarding the average recorded loan balance and recognized interest income on impaired loans for the fiscal years ended March 31, 2017, 2018 and 2019: 2017 2018 2019 Average Recognized Average Recognized Average Recognized (in millions) Commercial Domestic ¥ 1,137,501 ¥ 14,116 ¥ 918,093 ¥ 9,441 ¥ 766,847 ¥ 12,383 Manufacturing 601,256 5,845 472,081 3,787 387,725 6,057 Construction 26,684 434 19,465 281 15,721 291 Real estate 96,229 1,593 74,087 1,146 57,850 1,069 Services 81,967 1,236 59,916 794 48,945 1,044 Wholesale and retail 238,798 3,466 186,356 2,347 171,687 2,848 Banks and other financial institutions 2,272 11 1,729 8 1,330 8 Communication and information services 27,531 570 25,461 388 22,478 491 Other industries 24,709 397 50,377 215 39,178 234 Consumer 38,055 564 28,621 475 21,933 341 Foreign-excluding MUAH and Krungsri 291,612 5,132 209,297 4,244 159,999 3,127 Loans acquired with deteriorated credit quality 9,974 432 8,591 492 7,814 182 Residential 133,876 1,883 119,409 1,563 107,165 1,620 Card 75,809 2,483 69,831 1,993 66,187 1,614 MUAH 91,690 1,664 83,504 1,993 71,162 2,292 Krungsri 51,597 2,201 75,370 3,899 83,165 4,995 Total ¥ 1,792,059 ¥ 27,911 ¥ 1,484,095 ¥ 23,625 ¥ 1,262,339 ¥ 26,213 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 fiscal years ended March 31, 2017, 2018 and 2019: 2017 2018 2019 (in millions) Accrual TDRs: Balance at beginning of fiscal year ¥ 613,844 ¥ 819,819 ¥ 670,255 Additions (new accrual TDR status) (1) 492,269 144,368 71,033 Transfers to other impaired loans (including nonaccrual TDRs) (40,182 ) (25,122 ) (19,053 ) Loans sold (1,637 ) (39,378 ) (26 ) Principal payments and other (244,475 ) (229,432 ) (104,558 ) Balance at end of fiscal year (1) ¥ 819,819 ¥ 670,255 ¥ 617,651 Other impaired loans (including nonaccrual TDRs): Balance at beginning of fiscal year ¥ 1,111,306 ¥ 896,031 ¥ 660,868 Additions (new other impaired loans (including nonaccrual TDRs) status) (1)(2) 541,789 281,275 222,003 Charge-off (106,097 ) (98,355 ) (55,309 ) Transfers to accrual TDRs (333,478 ) (43,858 ) (22,110 ) Loans sold (44,984 ) (31,581 ) (26,022 ) Principal payments and other (272,505 ) (342,644 ) (187,290 ) Balance at end of fiscal year (1) ¥ 896,031 ¥ 660,868 ¥ 592,140 Notes: (1) For the fiscal year ended March 31, 2017, lease receivables of ¥875 million and ¥74 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 ¥4,065 million and ¥389 million, are also excluded from the balance of accrual TDRs and other impaired loans, respectively, as of March 31, 2017. For the fiscal year ended March 31, 2018, lease receivables of ¥1,809 million and ¥113 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 ¥4,282 million and ¥1,286 million, are also excluded from the balance of accrual TDRs and other impaired loans, respectively, as of March 31, 2018. For the fiscal year ended March 31, 2019, lease receivables of ¥2,947 million and ¥2,088 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 ¥5,060 million and ¥3,361 million, are also excluded from the balance of accrual TDRs and other impaired loans, respectively, as of March 31, 2019. (2) Included in the additions of other impaired loans for the fiscal years ended March 31, 2017, 2018 and 2019 are nonaccrual TDRs as follows: ¥11,699 million, ¥12,002 million and ¥13,493 million—Card; ¥25,023 million, ¥12,799 million and ¥12,738 million—MUFG Americas Holdings; and ¥7,471 million, ¥12,280 million and ¥10,519 million—Krungsri, respectively. Troubled Debt Restructurings The following table summarizes the MUFG Group’s TDRs by class for the fiscal years ended March 31, 2017, 2018 and 2019: 2017 2018 2019 Troubled Debt Restructurings Pre- Post- Pre- Post- Pre- Post- (in millions) Commercial (1)(3) Domestic ¥ 377,563 ¥ 377,563 ¥ 70,380 ¥ 69,021 ¥ 36,693 ¥ 36,693 Manufacturing 335,347 335,347 35,954 35,954 11,654 11,654 Construction 1,377 1,377 1,020 1,020 703 703 Real estate 7,457 7,457 1,269 1,269 948 948 Services 5,268 5,268 4,139 4,139 2,141 2,141 Wholesale and retail 22,868 22,868 16,280 14,921 19,315 19,315 Banks and other financial institutions — — 246 246 — — Communication and information services 2,405 2,405 9,643 9,643 268 268 Other industries 1,493 1,493 761 761 472 472 Consumer 1,348 1,348 1,068 1,068 1,192 1,192 Foreign-excluding MUAH and Krungsri 58,178 58,178 25,522 25,522 5,692 5,692 Loans acquired with deteriorated credit quality 1,030 1,030 — — 50 50 Residential (1)(3) 13,092 13,092 9,763 9,763 7,379 7,379 Card (2)(3) 17,256 16,759 17,436 16,912 19,685 18,837 MUAH (2)(3) 38,558 38,449 40,578 38,224 19,837 19,837 Krungsri (2)(3) 32,340 32,340 24,015 23,929 24,392 24,330 Total ¥ 538,017 ¥ 537,411 ¥ 187,694 ¥ 183,371 ¥ 113,728 ¥ 112,818 2017 2018 2019 Troubled Debt Restructurings Recorded Investment (in millions) Commercial (1)(3) Domestic ¥ 4,587 ¥ 4,067 ¥ 11,002 Manufacturing 1,373 839 312 Construction 11 — 89 Real estate 38 10 — Services 217 822 473 Wholesale and retail 2,530 2,231 1,713 Banks and other financial institutions — — — Communication and information services 385 140 8,365 Other industries — — 50 Consumer 33 25 — Foreign-excluding MUAH and Krungsri 11,268 — — Loans acquired with deteriorated credit quality — — — Residential (1)(3) 231 159 362 Card (2)(3) 3,661 4,191 3,442 MUAH (2)(3) 6,624 2,565 349 Krungsri (2)(3) 3,984 4,789 7,926 Total ¥ 30,355 ¥ 15,771 ¥ 23,081 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 fiscal year ended March 31, 2017, extension of the stated maturity date of loans was the primary concession type in the Residential segment, reduction in the stated rate was the primary concession type in the Commercial and Card segments and payment deferrals were the primary concession type in the MUFG Americas Holdings and Krungsri segments. For the fiscal year ended March 31, 2018, 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 payment deferrals were the primary concession type in the MUFG Americas Holdings segment. For the fiscal year ended March 31, 2019, 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. The following table summarizes outstanding recorded investment balances of TDRs by class at March 31, 2018 and 2019: 2018 2019 (in millions) Commercial (1) Domestic ¥ 482,566 ¥ 445,312 Manufacturing 320,702 311,890 Construction 7,362 4,591 Real estate 33,289 27,657 Services 23,987 17,135 Wholesale and retail 70,119 69,350 Banks and other financial institutions 6 135 Communication and information services 12,837 3,780 Other industries 9,712 6,357 Consumer 4,552 4,417 Foreign-excluding MUAH and Krungsri 54,182 51,701 Residential (1) 40,734 34,449 Card (2) 67,352 65,021 MUAH (2) 65,373 48,128 Krungsri (2) 54,036 62,980 Total ¥ 764,243 ¥ 707,591 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 2019 are nonaccrual TDRs as follows: ¥38,811 million and ¥38,838 million—Card; ¥26,040 million and ¥14,973 million—MUFG Americas Holdings; and ¥24,855 million and ¥31,069 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. The MUFG Group provided commitments to extend credit to customers with TDRs. The amounts of such commitments were ¥172,159 million and ¥169,819 million at March 31, 2018 and 2019, respectively. See Note 25 for further discussion of commitments to extend credit. Credit Quality Indicator Credit quality indicators of loans by class at March 31, 2018 and 2019 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 March 31, 2019: Normal Close Watch Likely to become Total (1) (in millions) Commercial Domestic ¥ 49,391,991 ¥ 1,242,075 ¥ 217,745 ¥ 50,851,811 Manufacturing 10,819,594 279,801 47,968 11,147,363 Construction 672,152 37,236 7,857 717,245 Real estate 11,403,613 222,791 22,515 11,648,919 Services 2,436,489 174,784 19,953 2,631,226 Wholesale and retail 7,240,801 329,249 68,736 7,638,786 Banks and other financial institutions 5,199,889 7,654 898 5,208,441 Communication and information services 1,465,652 34,542 10,172 1,510,366 Other industries 8,610,464 119,581 24,947 8,754,992 Consumer 1,543,337 36,437 14,699 1,594,473 Foreign-excluding MUAH and Krungsri 35,418,267 562,854 112,103 36,093,224 Loans acquired with deteriorated credit quality 11,622 10,833 3,790 26,245 Total ¥ 84,821,880 ¥ 1,815,762 ¥ 333,638 ¥ 86,971,280 Accrual Nonaccrual Total (1) (in millions) Residential ¥ 13,661,794 ¥ 66,290 ¥ 13,728,084 Card ¥ 516,983 ¥ 61,599 ¥ 578,582 Credit Quality Based on Credit Quality Based on Accrual Nonaccrual Pass Special Classified Total (1)(2) (in millions) MUAH ¥ 4,752,021 ¥ 15,540 ¥ 4,699,698 ¥ 51,948 ¥ 88,356 ¥ 9,607,563 Normal Special Substandard or Total (1) (in millions) Krungsri ¥ 5,682,245 ¥ 199,070 ¥ 129,222 ¥ 6,010,537 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 FDIC covered loans which are not individually rated totaling ¥953 million and ¥689 million as of March 31, 2018 and 2019, 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. 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 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, The accrual status is a primary credit quality indicator for loans within the Residential segment, the Card 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 Normal, Special Mention, Substandard, Doubtful, and Doubtful of Loss primarily based on their delinquency status. Loans categorized as Special Mention generally represent those that have the overdue principal or interest payments for a cumulative period exceeding one month commencing from the contractual due date. Loans categorized as Substandard, Doubtful or Doubtful of Loss generally represent those that have the overdue principal or interest payments for a cumulative period exceeding three months commencing from the contractual due date. For the Commercial, Residential and Card segments, credit quality indicators are based on information as of March 31. For the MUFG Americas Holdings and Krungsri segments, credit quality indicators are generally based on information as of December 31. Past Due Analysis Ages of past due loans by class at March 31, 2018 and 2019 are shown below: At March 31, 2018: 1-3 months Greater Total Current Total (1) 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 March 31, 2019: 1-3 months Greater Total Current Total (1) Recorded (in millions) Commercial Domestic ¥ 11,551 ¥ 30,648 ¥ 42,199 ¥ 50,809,612 ¥ 50,851,811 ¥ 6,900 Manufacturing 1,597 3,036 4,633 11,142,730 11,147,363 — Construction 218 60 278 716,967 717,245 1 Real estate 2,034 4,256 6,290 11,642,629 11,648,919 2,524 Services 778 569 1,347 2,629,879 2,631,226 1 Wholesale and retail 2,791 2,390 5,181 7,633,605 7,638,786 62 Banks and other financial institutions — 21 21 5,208,420 5,208,441 — Communication and information services 411 758 1,169 1,509,197 1,510,366 — Other industries 365 13,037 13,402 8,741,590 8,754,992 — Consumer 3,357 6,521 9,878 1,584,595 1,594,473 4,312 Foreign-excluding MUAH and Krungsri 10,881 19,993 30,874 36,062,350 36,093,224 236 Residential 62,686 16,615 79,301 13,641,449 13,720,750 6,584 Card 17,203 30,568 47,771 527,421 575,192 — MUAH 28,696 10,827 39,523 9,557,501 9,597,024 2,287 Krungsri 126,313 106,777 233,090 5,771,541 6,004,631 — Total ¥ 257,330 ¥ 215,428 ¥ 472,758 ¥ 116,369,874 ¥ 116,842,632 ¥ 16,007 Note: (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. Allowance for Credit Losses Changes in the allowance for credit losses by portfolio segment for the fiscal years ended March 31, 2017, 2018 and 2019 are shown below: Fiscal year ended March 31, 2017: Commercial Residential Card MUAH Krungsri Total (in millions) Allowance for credit losses: Balance at beginning of fiscal year ¥ 816,559 ¥ 58,598 ¥ 31,187 ¥ 108,454 ¥ 96,332 ¥ 1,111,130 Provision for (reversal of) credit losses 177,295 12,224 13,289 (62 ) 50,942 253,688 Charge-offs 108,262 5,339 16,309 32,074 51,774 213,758 Recoveries 21,124 1,853 1,998 2,916 16,058 43,949 Net charge-offs 87,138 3,486 14,311 29,158 35,716 169,809 Others (1) (6,030 ) — — (5,501 ) (1,290 ) (12,821 ) Balance at end of fiscal year ¥ 900,686 ¥ 67,336 ¥ 30,165 ¥ 73,733 ¥ 110,268 ¥ 1,182,188 Fiscal year ended March 31, 2018: Commercial Residential Card MUAH Krungsri Total (in millions) Allowance for credit losses: Balance at beginning of fiscal year ¥ 900,686 ¥ 67,336 ¥ 30,165 ¥ 73,733 ¥ 110,268 ¥ 1,182,188 Provision for (reversal of) credit losses (297,401 ) (22,291 ) 23,422 (9,309 ) 64,732 (240,847 ) Charge-offs 134,807 3,838 22,696 14,701 56,067 232,109 Recoveries 24,913 1,339 1,228 6,140 17,490 51,110 Net charge-offs 109,894 2,499 21,468 8,561 38,577 180,999 Others (1) (2,293 ) — — (2,098 ) 8,173 3,782 Balance at end of fiscal year ¥ 491,098 ¥ 42,546 ¥ 32,119 ¥ 53,765 ¥ 144,596 ¥ 764,124 Fiscal year ended March 31, 2019: Commercial Residential Card MUAH Krungsri Total (in millions) Allowance for credit losses: Balance at beginning of fiscal year ¥ 491,098 ¥ 42,546 ¥ 32,119 ¥ 53,765 ¥ 144,596 ¥ 764,124 Provision for (reversal of) credit losses (43,850 ) (4,480 ) 23,809 9,277 49,574 34,330 Charge-offs 76,664 274 24,310 13,224 59,569 174,041 Recoveries 17,565 834 932 3,733 21,053 44,117 Net charge-offs 59,099 (560 ) 23,378 9,491 38,516 129,924 Others (1) 1,466 — — (970 ) (10,842 ) (10,346 ) Balance at end of fiscal year ¥ 389,615 ¥ 38,626 ¥ 32,550 ¥ 52,581 ¥ 144,812 ¥ 658,184 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 2019 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 (2) 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 (2) 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 March 31, 2019: Commercial Residential Card MUAH Krungsri Total (in millions) Allowance for credit losses: Individually evaluated for impairment ¥ 312,970 ¥ 14,175 ¥ 21,829 ¥ 8,294 ¥ 28,254 ¥ 385,522 Collectively evaluated for impairment 63,366 23,413 10,708 44,282 116,529 258,298 Loans acquired with deteriorated credit quality (2) 13,279 1,038 13 5 29 14,364 Total ¥ 389,615 ¥ 38,626 ¥ 32,550 ¥ 52,581 ¥ 144,812 ¥ 658,184 Loans: Individually evaluated for impairment ¥ 879,944 ¥ 102,948 ¥ 64,752 ¥ 69,760 ¥ 83,259 ¥ 1,200,663 Collectively evaluated for impairment 86,065,091 13,617,802 510,440 9,527,264 5,921,372 115,641,969 Loans acquired with deteriorated credit quality (2) 26,245 7,334 3,390 11,228 5,906 54,103 Total (1) ¥ 86,971,280 ¥ 13,728,084 ¥ 578,582 ¥ 9,608,252 ¥ 6,010,537 ¥ 116,896,735 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) Loans acquired with deteriorated credit quality in the above table include impaired loans which are individually evaluated for impairment. 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 ¥11.0 billion and ¥12.2 billion for the fiscal years ended March 31, 2017 and 2018, respectively, and an increase fro |