Loans and Allowance for Credit Losses [Text Block] | 4. LOANS AND ALLOWANCE FOR CREDIT LOSSES Loans at March 31, 2020 and 2021 by domicile and industry of the borrower are summarized below. Classification of loans by industry is based on the industry segment loan classifications as defined by the Bank of Japan. 2020 2021 (in millions) Domestic: Manufacturing ¥ 11,448,778 ¥ 13,133,360 Construction 733,212 763,958 Real estate 12,054,671 11,997,301 Services 2,585,111 2,908,975 Wholesale and retail 7,504,561 7,766,070 Banks and other financial institutions (1) 5,161,093 6,443,296 Communication and information services 1,572,344 1,407,738 Other industries 8,673,871 8,838,718 Consumer 15,319,721 15,066,986 Total domestic 65,053,362 68,326,402 Foreign: Governments and official institutions 726,347 655,367 Banks and other financial institutions (1) 11,788,225 10,649,029 Commercial and industrial 32,565,030 29,574,176 Other 8,404,062 6,822,771 Total foreign 53,483,664 47,701,343 Unearned income, unamortized premiums—net and deferred loan fees—net (350,287 ) (308,882 ) Total (2) ¥ 118,186,739 ¥ 115,718,863 Notes: (1) Loans to so-called “non-bank Non-bank (2) The above table includes loans held for sale of ¥344,790 million and ¥353,095 million at March 31, 2020 and 2021, respectively. The 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. Effective as of April 1, 2020, all of the domestic classes within the Commercial segment were combined into one class. 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, 2020 and 2021, and recognized interest income on nonaccrual loans by class for the fiscal year ended March 31, 2021 are shown below: March 31, 2020: Nonaccrual (1) (in millions) Commercial Domestic ¥ 312,972 Foreign 127,001 Residential 63,998 Card 61,172 MUAH 35,840 Krungsri 149,732 Other 27,754 Total ¥ 778,469 Recorded Loan Balance March 31, 2021: Nonaccrual (1) Nonaccrual Loans (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 Notes: (1) Nonaccrual loans in the above table do not include loans held for sale of ¥330 million and ¥8,562 million at March 31, 2020 and 2021, respectively, and do not include loans acquired with deteriorated credit quality of ¥25,427 million at March 31, 2020. (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. 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, 2020: Recorded Loan Balance At March 31, 2020: Requiring Not Requiring (1) Total Unpaid Related (in millions) Commercial Domestic ¥ 598,737 ¥ 147,890 ¥ 746,627 ¥ 784,298 ¥ 268,070 Foreign 141,897 56,464 198,361 220,283 96,009 Loans acquired with deteriorated credit quality 12,906 — 12,906 19,947 4,767 Residential (3) 88,075 4,822 92,897 107,629 12,770 Card (3) 65,240 280 65,520 72,714 19,799 MUAH (3) 33,884 33,835 67,719 84,737 5,977 Krungsri (3) 68,126 30,833 98,959 106,265 30,198 Other (3) 22,749 1,091 23,840 26,091 6,152 Total (2) ¥ 1,031,614 ¥ 275,215 ¥ 1,306,829 ¥ 1,421,964 ¥ 443,742 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) In addition to impaired loans presented in the above table, there were impaired loans held for sale of ¥330 million at March 31, 2020. (3) Impaired Loans for Residential, Card, MUAH, Krungsri and Other 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, 2019 and 2020: 2019 2020 Average Recognized Average Recognized (in millions) Commercial Domestic ¥ 766,847 ¥ 12,383 ¥ 726,794 ¥ 8,722 Foreign 159,999 3,127 174,831 3,013 Loans acquired with deteriorated credit quality 7,814 182 9,395 74 Residential 107,165 1,620 98,238 1,252 Card 66,187 1,614 65,270 1,241 MUAH 71,162 2,292 82,832 2,801 Krungsri 83,165 4,995 91,577 5,274 Other — — 11,854 494 Total ¥ 1,262,339 ¥ 26,213 ¥ 1,260,791 ¥ 22,871 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. Troubled Debt Restructurings The following table summarizes the MUFG Group’s TDRs by class for the fiscal years ended March 31, 2019, 2020 and 2021: 2019 2020 2021 Troubled Debt Restructurings Pre- Post- Pre- Post- Pre- Post- (in millions) Commercial (1)(3) Domestic ¥ 36,693 ¥ 36,693 ¥ 61,735 ¥ 61,735 ¥ 39,282 ¥ 39,282 Foreign 5,692 5,692 39,827 39,827 33,839 33,839 Loans acquired with deteriorated credit quality 50 50 10,786 10,786 — — Residential (1)(3) 7,379 7,379 5,137 5,137 18,121 18,121 Card (2)(3) 19,685 18,837 22,625 21,561 20,857 19,737 MUAH (2)(3) 19,837 19,837 33,782 33,564 22,801 22,763 Krungsri (2)(3) 24,392 24,330 31,238 31,209 18,548 18,548 Other (2)(3) — — 12,781 12,780 24,968 24,956 Total ¥ 113,728 ¥ 112,818 ¥ 217,911 ¥ 216,599 ¥ 178,416 ¥ 177,246 2019 2020 2021 Troubled Debt Restructurings Recorded Investment (in millions) Commercial (1)(3) Domestic ¥ 11,002 ¥ 8,857 ¥ 16,179 Foreign — 2,337 9,861 Residential (1)(3) 362 31 157 Card (2)(3) 3,442 3,320 2,733 MUAH (2)(3) 349 4,656 3,437 Krungsri (2)(3) 7,926 7,305 6,226 Other (2)(3) — 15 857 Total ¥ 23,081 ¥ 26,521 ¥ 39,450 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, 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. 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. 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 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 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 ¥90,097 million and ¥130,788 million at March 31, 2020 and 2021, 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 that occurred from March 1, 2020, through June 30, 2020, where COVID-19 COVID-19 In the Krungsri segment, TDR accounting was suspended for loan modifications that occurred during the six months ended June 30, 2020, where COVID-19 Credit Quality Indicator Credit quality indicators of loans by class at March 31, 2020 are shown below: At March 31, 2020: Normal Close Likely to become Total (1) (in millions) Commercial Domestic ¥ 49,695,889 ¥ 1,186,044 ¥ 220,245 ¥ 51,102,178 Foreign 34,719,041 636,523 128,073 35,483,637 Loans acquired with deteriorated credit quality 8,255 9,739 18,978 36,972 Total ¥ 84,423,185 ¥ 1,832,306 ¥ 367,296 ¥ 86,622,787 Accrual Nonaccrual Total (1) (in millions) Residential ¥ 13,256,744 ¥ 61,746 ¥ 13,318,490 Card ¥ 504,357 ¥ 61,286 ¥ 565,643 Credit Quality Based on Credit Quality Based on Accrual Nonaccrual Pass Special Classified Total (1)(2) (in millions) MUAH ¥ 4,590,805 ¥ 15,119 ¥ 4,877,863 ¥ 87,648 ¥ 84,033 ¥ 9,655,468 Performing Under- Non-Performing Total (1) (in millions) Krungsri ¥ 6,241,696 ¥ 508,847 ¥ 161,047 ¥ 6,911,590 Accrual Nonaccrual Total (1) (in millions) Other ¥ 1,086,517 ¥ 31,376 ¥ 1,117,893 Credit quality indicators of loans and fiscal year of origination by class at March 31, 2021 are shown below: Term Loans Revolving Revolving Total (1) At March 31, 2021: 2020 2019 2018 2017 2016 Prior (in millions) Commercial: ¥ 29,805,641 ¥ 10,256,709 ¥ 9,410,172 ¥ 5,360,221 ¥ 4,736,515 ¥ 6,945,092 ¥ 19,401,336 ¥ 9,776 ¥ 85,925,462 Domestic 22,402,694 6,392,946 6,126,746 3,840,964 3,649,145 5,286,408 6,934,308 — 54,633,211 Normal 21,936,776 6,058,126 5,915,318 3,666,734 3,551,332 4,847,597 6,604,586 — 52,580,469 Close Watch 431,223 319,073 195,630 162,176 74,698 317,622 306,236 — 1,806,658 Likely to become Bankrupt or Legally/Virtually Bankrupt 34,695 15,747 15,798 12,054 23,115 121,189 23,486 — 246,084 Foreign 7,402,947 3,863,763 3,283,426 1,519,257 1,087,370 1,658,684 12,467,028 9,776 31,292,251 Normal 7,158,793 3,704,240 3,155,261 1,423,064 1,032,052 1,534,943 12,231,018 9,776 30,249,147 Close Watch 200,305 118,027 91,867 60,422 51,433 69,436 197,405 — 788,895 Likely to become Bankrupt or Legally/Virtually Bankrupt 43,849 41,496 36,298 35,771 3,885 54,305 38,605 — 254,209 Residential ¥ 623,328 ¥ 847,314 ¥ 822,883 ¥ 892,166 ¥ 1,304,110 ¥ 8,660,022 ¥ 32,984 ¥ 8 ¥ 13,182,815 Accrual 623,035 846,787 822,411 891,407 1,302,427 8,599,621 30,897 — 13,116,585 Nonaccrual 293 527 472 759 1,683 60,401 2,087 8 66,230 Card ¥ 14 ¥ 96 ¥ 171 ¥ 304 ¥ 110 ¥ 513 ¥ 417,804 ¥ 60,284 ¥ 479,296 Accrual 1 10 13 19 7 79 404,301 14,666 419,096 Nonaccrual 13 86 158 285 103 434 13,503 45,618 60,200 MUAH (2) ¥ 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 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 ¥365 million and nil 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, 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 based on their delinquency status. Effective as of April 1, 2020, the category of the Krungsri segment’s credit quality indicator was changed to Performing, Under-Performing, and Non-Performing. Loans categorized as Under-Performing generally represent those that have significant increases in credit risk since origination, including, among other things, loans that are or more past due. The above table showing the loans within the Krungsri segment by credit quality indicator category as of March 31, 2020 has been restated based on the new categories. 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. Past Due Analysis Ages of past due loans by class at March 31, 2020 and 2021 are shown below: At March 31, 2020: 1-3 months Greater Total Current Total (1) 90 Days and (in millions) Commercial Domestic ¥ 9,215 ¥ 26,971 ¥ 36,186 ¥ 51,065,992 ¥ 51,102,178 ¥ 4,720 Foreign 9,927 23,548 33,475 35,450,162 35,483,637 164 Residential 48,404 15,443 63,847 13,248,278 13,312,125 6,288 Card 14,735 29,997 44,732 518,008 562,740 — MUAH 31,052 14,435 45,487 9,603,339 9,648,826 2,101 Krungsri 160,253 129,186 289,439 6,616,104 6,905,543 — Other 16,442 24,348 40,790 1,069,186 1,109,976 — Total ¥ 290,028 ¥ 263,928 ¥ 553,956 ¥ 117,571,069 ¥ 118,125,025 ¥ 13,273 At March 31, 2021: 1-3 months Greater Total Current Total (1) 90 Days and (in millions) Commercial Domestic ¥ 4,763 ¥ 22,996 ¥ 27,759 ¥ 54,605,452 ¥ 54,633,211 ¥ 4,673 Foreign 7,302 22,473 29,775 31,262,476 31,292,251 91 Residential 39,577 28,375 67,952 13,114,863 13,182,815 11,150 Card 2,127 26,786 28,913 450,383 479,296 — MUAH 42,082 29,337 71,419 8,424,325 8,495,744 4,626 Krungsri 131,573 127,533 259,106 6,345,539 6,604,645 — Other 21,776 24,201 45,977 940,711 986,688 — Total ¥ 249,200 ¥ 281,701 ¥ 530,901 ¥ 115,143,749 ¥ 115,674,650 ¥ 20,540 Note: (1) At March 31, 2020, 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. At March 31, 2021, 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. 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, 2019, 2020 and 2021 are shown below: 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 collected 17,565 834 932 3,733 21,053 44,117 Net charge-offs 59,099 (560 ) 23,378 9,491 38,516 129,924 Other (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 Fiscal year ended 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 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 Notes: (1) Other is principally comprised of gains or losses from foreign exchange translation. (2) See Note 1 for more information. Allowance for credit losses and recorded investment in loans by portfolio At March 31, 2020: Commercial Residential Card MUAH Krungsri Other Total (in millions) Allowance for credit losses: Individually evaluated for impairment ¥ 364,079 ¥ 12,651 ¥ 19,799 ¥ 5,977 ¥ 30,198 ¥ 5,073 ¥ 437,777 Collectively evaluated for impairment 108,100 21,130 15,369 53,013 139,401 22,566 359,579 Loans acquired with deteriorated credit quality (2) 10,096 965 12 5 27 1,079 12,184 Total ¥ 482,275 ¥ 34,746 ¥ 35,180 ¥ 58,995 ¥ 169,626 ¥ 28,718 ¥ 809,540 Loans: Individually evaluated for impairment ¥ 944,988 ¥ 92,448 ¥ 65,292 ¥ 67,719 ¥ 98,959 ¥ 17,512 ¥ 1,286,918 Collectively evaluated for impairment 85,640,827 13,219,677 497,448 9,581,107 6,806,584 1,092,464 116,838,107 Loans acquired with deteriorated credit quality (2) 36,972 6,365 2,903 7,007 6,047 7,917 67,211 Total (1) ¥ 86,622,787 ¥ 13,318,490 ¥ 565,643 ¥ 9,655,833 ¥ 6,911,590 ¥ 1,117,893 ¥ 118,192,236 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 ¥19.4 billion and ¥16.8 billion for the fiscal years ended March 31, 2020 and 2021, respectively, and an increase from recoveries in the allowance for credit losses amounting to ¥15.1 billion for the fiscal year ended March 31, 2019 due to loan disposal activity. The MUFG Group sold ¥1,769 billion, ¥2,136 billion and ¥1,684 billion of loans within the Commercial segment during the fiscal years ended March 31, 2019, 2020 and 2021, respectively. The MUFG Group sold ¥586 billion of loans within the MUFG Americas Holdings segment during the fiscal year ended March 31, 2021. The MUFG Group consolidates certain subsidiaries based on financial information for the year ended December 31 as this date and MUFG’s fiscal year which ends on March 31 have been treated as coterminous. For the fiscal year ended March 31, 2020, the effect of recording a provision for credit losses and a provision for off-balance COVID-19 , and off-balance , billion and would have resulted in a decrease of ¥ billion to net income attributable to Mitsubishi UFJ Financial Group. Collateral Dependent Loans The MUFG Group uses, as a practical expedient, the fair value of the collateral when recording the net carrying amounts of loans and determining the allowance for credit losses of such loans, for which the repayment is expected to be provided substantially through the operation or sale of the collateral, when the borrower is experiencing financial difficulty based on the assessment as of the reporting date. As of March 31, 2020 and 2021, for the Commercial, MUFG Americas Holdings, Krungsri and Other segments, collateral relating to these loans comprised primarily of real estate, and to a lesser extent, exchange traded equity securities and deposits etc. For the Residential segment, collateral on these loans was mainly real estate. |