Edgar Filing: MITSUBISHI UFJ FINANCIAL GROUP INC

(in millions of yen)

Amount on
consolidated
balance sheet

Net unrealized gains (losses) recorded on the consolidated

statement of income during the current fiscal year

Money held in trust for trading purpose

Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of May 2016

Commission File No. 000-54189

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

7-1, Marunouchi 2-chome, Chiyoda-ku

Tokyo 100-8330, Japan

(Address of principal executive office)

Indicate by check mark whether the registrant files or

will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(1):

Indicate by check mark if the registrant is submitting the Form 6-K

in paper as permitted by Regulation S-T Rule 101(b)(7):

THIS REPORT ON FORM 6-K SHALL BE DEEMED TO BE INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM F-3 (NO. 333-209455) OF MITSUBISHI UFJ FINANCIAL GROUP, INC. AND TO BE A PART THEREOF FROM THE DATE ON WHICH THIS REPORT IS FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION TO THE EXTENT NOT SUPERSEDED BY DOCUMENTS OR REPORTS SUBSEQUENTLY FILED WITH OR FURNISHED TO THE U.S. SECURITIES AND EXCHANGE COMMISSION.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: May 16, 2016


Mitsubishi UFJ Financial Group, Inc.

By:		/s/ Yasuo Matsumoto
Name:		Yasuo Matsumoto
Title:		Chief Manager, Documentation & Corporate Secretary Department, Corporate Administration Division

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Consolidated Summary Report

<under Japanese GAAP>

for the fiscal year ended March 31, 2016

May 16, 2016


Company name:		Mitsubishi UFJ Financial Group, Inc.
Stock exchange listings:		Tokyo, Nagoya, New York
Code number:		8306
URL		http://www.mufg.jp/
Representative:		Nobuyuki Hirano, President & Group CEO
For inquiry:		Kazutaka Yoneda, General Manager - Financial Planning Division / Financial Accounting Office
		TEL (03) 3240-3110
General meeting of shareholders:		June 29, 2016
Dividend payment date:		June 29, 2016
Securities report issuing date:		June 29, 2016
Trading accounts:		Established
Supplemental information for financial statements:		Available
Investor meeting presentation:		Scheduled (for investors and analysts)

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Data for the Fiscal Year ended March 31, 2016

(1)	Results of Operations


	(% represents the change from the previous fiscal year)
	Ordinary Income				Ordinary Profits					Profits Attributable to Owners of Parent
	million yen		%		million yen		%			million yen		%
Fiscal year ended
March 31, 2016		5,714,419		1.3		1,539,486		(10.1	)		951,402		(8.0	)
March 31, 2015		5,638,402		8.9		1,713,001		1.1			1,033,759		5.0

(*)	Comprehensive income

March 31, 2016: 620,662 million yen (82.0)% ; March 31, 2015: 3,455,231 million yen 102.2%


	Basic earnings per share		Diluted earnings per share		Net Income to Net Assets Attributable to MUFG shareholders		Ordinary Profits to Total Assets		Ordinary Profits to Ordinary Income
	yen		yen		%		%		%
Fiscal year ended
March 31, 2016		68.51		68.17		6.2		0.5		26.9
March 31, 2015		73.22		72.94		7.4		0.6		30.4

(Reference) Income from investment in affiliates (Equity method)

March 31, 2016: 230,415 million yen; March 31, 2015: 159,637 million yen

(2)	Financial Conditions


	Total Assets		Total Net Assets		Equity-to-asset *ratio ()**		Total Net Assets per Common Stock
	million yen		million yen		%		yen
As of
March 31, 2016		298,302,898		17,386,769		5.2		1,121.07
March 31, 2015		286,149,768		17,287,533		5.4		1,092.75

(Reference) Shareholders’ equity as of March 31, 2016: 15,457,970 million yen ; March 31, 2015: 15,317,940 million yen

(*)

“Equity-to-asset ratio” is computed under the formula shown below

(Total net assets - Subscription rights to shares - Non-controlling interests) / Total assets

(3)	Cash Flows


	Cash Flows from Operating Activities			Cash Flows from Investing Activities		Cash Flows from Financing Activities			Cash and Cash Equivalents at the end of the period
	million yen			million yen		million yen			million yen
Fiscal year ended
March 31, 2016		6,754,428			2,240,209		(105,602	)		18,763,856
March 31, 2015		(2,095,748	)		6,501,689		(1,156,621	)		9,990,035

2. Dividends on Common Stock


	Dividends per Share										Total dividends		Dividend payout ratio (Consolidated)		Dividend on net assets ratio (Consolidated)
	1st quarter-end		2nd quarter-end		3rd quarter-end		Fiscal year-end		Total		Total dividends		Dividend payout ratio (Consolidated)		Dividend on net assets ratio (Consolidated)
	yen		yen		yen		yen		yen		million yen		%		%
Fiscal year
ended March 31, 2015		—		9.00		—		9.00		18.00		253,695		24.6		1.8
ended March 31, 2016		—		9.00		—		9.00		18.00		249,329		26.3		1.6
ending March 31, 2017 (Forecast)		—		9.00		—		9.00		18.00		——		29.2		——

(*)	Revision of forecasts for dividends on the presentation date of this Consolidated Summary Report : None

3. Earnings Target for the Fiscal Year ending March 31, 2017 (Consolidated)

MUFG has set an earnings target of 850.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2017.

MUFG is engaged in financial service businesses such as banking business, trust banking business, securities business and credit card/loan businesses. Because there are various uncertainties caused by economic situation, market environments and other factors in these businesses, MUFG discloses a target of its profits attributable to owners of parent instead of a forecast of its performance. Please see “3. Management Policy (4) Management Target”, for further information of the target.

ø Notes

(1)	Changes in significant subsidiaries during the period: No

(2)	Changes in accounting policies, changes in accounting estimates and restatements

(A) Changes in accounting policies due to revision of accounting standards: No

(B) Changes in accounting policies due to reasons other than (A): No

(D) Restatements: No

(3)	Number of common stocks outstanding at the end of the period


(A) Total stocks outstanding including treasury stocks:	March 31, 2016	14,168,853,820 shares
	March 31, 2015	14,168,853,820 shares
(B) Treasury stocks:	March 31, 2016	380,255,157 shares
	March 31, 2015	151,014,803 shares
(C) Average outstanding stocks:	Fiscal year ended March 31, 2016	13,886,503,497 shares
	Fiscal year ended March 31, 2015	14,119,202,720 shares

(Reference) Summary of non-consolidated financial data

1. Non-consolidated Financial Data for the Fiscal Year ended March 31, 2016

(1) Results of Operations


	( % represents the change from the previous fiscal year)
	Operating Income				Operating Profits				Ordinary Profits					Net Income
	million yen		%		million yen		%		million yen		%			million yen		%
Fiscal year ended
March 31, 2016		588,340		0.4		564,684		0.1		543,069		(1.6	)		545,738		(1.4	)
March 31, 2015		585,805		126.5		564,394		135.4		551,691		143.5			553,400		128.9

	Basic earnings per share				Diluted earnings per share
	yen				yen
Fiscal year ended
March 31, 2016		39.29				39.24
March 31, 2015		39.19				39.14

(2) Financial Conditions


	Total Assets		Total Net Assets		Equity-to-asset ratio		Total Net Assets per Common Stock
	million yen		million yen		%		yen
As of
March 31, 2016		12,043,230		8,482,329		70.4		614.47
March 31, 2015		10,646,262		8,357,950		78.4		595.56


(Reference) Shareholders’ equity as of March 31, 2016: 8,474,069 million yen ; March 31, 2015: 8,349,679 million yen

*Disclosure regarding the execution of the audit process

This “Consolidated Summary Report” (“Tanshin”) is outside the scope of the external auditor’s audit procedure which is required by “Financial Instruments and Exchange Act”. Therefore, the audit process has not been completed as of this disclosure in the “Consolidated Summary Report”.

*Notes for using forecasted information etc.

This financial summary report contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overall management of the company and/or the group as a whole (the “forward-looking statements”). The forward-looking statements are made based upon, among other things, the company’s current estimations, perceptions and evaluations. In addition, in order for the company to adopt such estimations, forecasts, targets and plans regarding future events, certain assumptions have been made. Accordingly, due to various risks and uncertainties, the statements and assumptions are inherently not guarantees of future performance, may be considered differently from alternative perspectives and may result in material differences from the actual result. For the main factors that may affect the current forecasts, please see Consolidated Summary Report, Annual Securities Report, Disclosure Book, Annual Report, and other current disclosures that the company has announced.

The financial information included in this financial summary report is prepared and presented in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”). Differences exist between Japanese GAAP and the accounting principles generally accepted in the United States (“U.S. GAAP”) in certain material respects. Such differences have resulted in the past, and are expected to continue to result for this period and future periods, in amounts for certain financial statement line items under U.S. GAAP to differ significantly from the amounts under Japanese GAAP. For example, differences in consolidation basis or accounting for business combinations, including but not limited to amortization and impairment of goodwill, could result in significant differences in our reported financial results between Japanese GAAP and U.S. GAAP. Readers should consult their own professional advisors for an understanding of the differences between Japanese GAAP and U.S. GAAP and how those differences might affect our reported financial results. We will publish U.S. GAAP financial results in a separate disclosure document when such information becomes available.

Mitsubishi UFJ Financial Group, Inc.

(Appendix)

Contents of Appendix


1. Results of Operations and Financial Condition			2
(1) Analysis of results of operations			2
(2) Analysis of financial condition			3
(3) Basic policy regarding profit distribution and dividends for fiscal years 2015 and 2016			5
2. Information on Mitsubishi UFJ Financial Group (MUFG Group)			6
3. Management Policy			9
(1) Principal management policy			9
(2) Medium- and long-term management strategy			9
(3) Key issues			10
(4) Management Target			12
4. Basic Views on Selection of Accounting Standards			12
5. Consolidated Financial Statements			13
(1) Consolidated Balance Sheets			13
(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			15
(3) Consolidated Statements of Changes in Net Assets			18
(4) Consolidated Statements of Cash Flows			20
Notes to the Consolidated Financial Statements			22
Notes on Going-Concern Assumption
Significant Accounting Policies Applied in the Preparation of the Consolidated Financial Statements
Changes in Method of Presentation
Consolidated Balance Sheet
Consolidated Statements of Income
Consolidated Statements of Changes in Net Assets
Consolidated Statements of Cash Flows
Financial Instruments
Securities
Money Held in Trust
Net Unrealized Gains (Losses) on Other Securities
Segment Information
Per Share Information
Significant Subsequent Events
6. Non-consolidated Financial Statements			48
(1) Non-consolidated Balance Sheets			48
(2) Non-consolidated Statements of Income			50
(3) Non-consolidated Statements of Changes in Net Assets			51
Notes on Going-Concern Assumption			53
7. Other			53
(1) Changes of Directors, Corporate Auditors and Executive Officers			53

Supplemental Information:

“Selected Financial Information under Japanese GAAP For the fiscal year ended March 31, 2016”

(*)	The following is the schedule of internet conference and explanation for investors and analysts. You can confirm those contents over the internet. Materials distributed for those will be uploaded in our homepage soon after the internet conference or the explanation is held.


Internet Conference:		May 16, 2016 (Monday)
Explanation for investors and analysts:		May 23, 2016 (Monday)

Mitsubishi UFJ Financial Group, Inc.

1. Results of Operations and Financial Condition

(1) Analysis of results of operations

(Results of operations for the fiscal year ended March 31, 2016)

The outlook has become increasingly clouded, even as the global economy—especially developed countries—remained on a gradual recovery course in FY15. Share prices around the world dropped owing to concerns surrounding China, weak oil and other resource prices. However, US domestic demand, in particular, remained on a path of self-sustained recovery as the employment picture steadily improved, despite weakness in the energy industry and some other sectors. Europe’s economy continued to pick up, propelled by the weak EUR and cheap oil, in spite of the Greek debt issue and NPLs in southern countries. In Asia, China continued to slow due to suppressed investment, while weak exports weighed on other Asian economies. Even so, private consumption remained firm throughout the region, bolstered by lower inflation. Against this backdrop, Japan’s economy continued on a gradual recovery trajectory, even with some apparent weak spots. The warm winter dampened private consumption, which remained fairly flat overall despite higher incomes. Exports to the US and Europe were strong overall, but exports to China and other emerging economies were weak, including resource-producing countries. On the other hand, capital expenditures continued to rise gradually due to robust corporate profits as the glut of capital stock was erased.

With regard to the financial situation, the US Fed hiked interest rates for the first time in nine-and-a-half years in December, as employment conditions improved. In the Eurozone, on the other hand, the ECB bolstered monetary easing, including cutting the deposit rate in December and again in March. The Bank of Japan introduced Quantitative and Qualitative Monetary Easing with Negative Interest rates in January, and the benchmark yield turned and stayed negative through to the end of the fiscal year. Share prices have fallen and the Japanese yen has rallied since the start of the year: a reflection of heightened risk aversion around the globe.

Under such business environment, consolidated gross profits for the fiscal year ended March 31, 2016 decreased 85.8 billion yen from the previous fiscal year to 4,143.2 billion yen. This was mainly due to the appreciation of the Japanese yen against the U.S. dollar since January, a decrease in net interest income from domestic loans and deposits as well as a decrease in gains on ALM, whereas an increase in overseas profit from MUFG’s group collaboration businesses in the U.S. and overseas subsidiaries’ businesses contributed to increase gross profit. General and administrative (G&A) expenses for the fiscal year ended March 31, 2016 increased 1.1 billion yen from the previous fiscal year, mainly due to higher regulatory costs in overseas businesses despite cost cutting of MUFG and a positive impact from exchange rate. As a result, net business profits were 1,557.9 billion yen, a decrease of 87.0 billion yen from the previous fiscal year.

Total credit costs for the fiscal year ended March 31, 2016 increased 93.5 billion yen from the previous fiscal year, mainly due to an increase in provision for specific allowance for credit losses. Net gains (losses) on equity securities decreased 4.8 billion yen from the previous fiscal year, mainly due to an increase in losses on write-down of equity securities.

Mitsubishi UFJ Financial Group, Inc.

As a result, ordinary profits for the fiscal year ended March 31, 2016 were 1,539.4 billion yen, a decrease of 173.5 billion yen from the previous fiscal year, and profits attributable to owners of parent for the fiscal year ended March 31, 2016 was 951.4 billion yen, a decrease of 82.3 billion yen from the previous fiscal year.


(in billions of Japanese yen)	For the fiscal year ended March 31, 2016			For the fiscal year ended March 31, 2015			Increase (Decrease)
Gross profits before credit costs for trust accounts		4,143.2			4,229.0			(85.8	)
General and administrative expenses		2,585.2			2,584.1			1.1
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		1,557.9			1,644.9			(87.0	)
Credit costs		(315.7	)		(227.8	)		(87.9	)
Net gains (losses) on equity securities		88.3			93.1			(4.8	)
Other non-recurring gains (losses)		209.0			202.8			6.2
Profits (Losses) from investments in affiliates		230.4			159.6			70.7
Ordinary profits		1,539.4			1,713.0			(173.5	)
Net extraordinary gains (losses)		(40.7	)		(98.2	)		57.5
Total of income taxes-current and income taxes-deferred		(460.2	)		(467.7	)		7.5
Profits attributable to non-controlling interests		(87.1	)		(113.2	)		26.0
Profits attributable to owners of parent		951.4			1033.7			(82.3	)
Total credit costs *1		(255.1	)		(161.6	)		(93.5	)

*1	Included gains on loans written-offs

(Earnings Target for the fiscal year ending March 31, 2017)

MUFG has set an earnings target of 850.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2017.

MUFG is engaged in financial service businesses such as banking business, trust banking business, securities business and credit card/loan businesses.

Because there are various uncertainties caused by economic situation, market environments and other factors in these businesses, MUFG discloses a target of its profits attributable to owners of parent instead of a forecast of its performance. Please see “3. Management Policy (4) Management Target”, for further information of the target.

(2) Analysis of financial condition

Total assets as of March 31, 2016 increased 12,153.1 billion yen from March 31, 2015 to 298,302.8 billion yen, and total net assets as of March 31, 2016 increased 99.2 billion yen from March 31, 2015 to 17,386.7 billion yen. The increase in total net assets was mainly due to increases in retained earnings.

Mitsubishi UFJ Financial Group, Inc.

With regard to major items of assets, securities as of March 31, 2016 decreased 3,544.3 billion yen from March 31, 2015 to 69,993.8 billion yen and loans and bills discounted as of March 31, 2016 increased 4,387.9 billion yen from March 31, 2015 to 113,756.3 billion yen. With regard to major items of liabilities, deposits as of March 31, 2016 increased 7,607.6 billion yen from March 31, 2015 to 160,965.0 billion yen.

With regard to MUFG’s consolidated risk-adjusted capital ratio based on the Basel III Standards as of March 31, 2016, Common Equity Tier 1 capital ratio was 11.63%, Tier 1 capital ratio was 13.24% and Total capital ratio was 16.01%.

Mitsubishi UFJ Financial Group, Inc.

(3) Basic policy regarding profit distribution and dividends for fiscal years 2015 and 2016

MUFG considers the return of earnings to shareholders to be one of the most important management priorities and makes it a basic policy to aim for a stable and continuous increase in dividends per share through growth in profits.

With respect to the year-end dividend for common stock for fiscal year 2015, MUFG plans to pay ¥9 per share. As a result, the annual dividend for fiscal year 2015, including the interim dividend of ¥9 per share, is expected to be ¥18 per share, which is the same amount as the annual dividend of ¥18 paid for the previous fiscal year.

The annual dividend forecast for common stock for fiscal year 2016 is ¥18 per share, which is the same amount as the annual dividend to be paid for fiscal year 2015.

Mitsubishi UFJ Financial Group, Inc.

2. Information on Mitsubishi UFJ Financial Group (MUFG Group)

MUFG Group comprises the holding company, 224 consolidated subsidiaries, and 65 equity-method affiliates. MUFG’s goal is to be the world’s most trusted financial group, and it is engaged primarily in the banking, trust banking and securities businesses, while also conducting business in credit cards and consumer finance, leasing, asset management and other areas. The Group conducts consolidated reporting of its main entities on a segmental basis and the relationships between MUFG and its major related companies are as shown in the chart below.

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Mitsubishi UFJ Financial Group, Inc.

*1.	As of April 1, 2016, Security Bank Corporation became an equity-method affiliate of The Bank of Tokyo-Mitsubishi UFJ, Ltd. following a share acquisition by The Bank of Tokyo-Mitsubishi UFJ, Ltd.

*2.	The ownership of BTMU Capital Corporation is planned to be transferred to MUFG Americas Holdings Corporation on July 1, 2016.

*3.	As of May 1, 2016, Mitsubishi UFJ Global Custody S.A. was renamed Mitsubishi UFJ Investor Services & Banking (Luxembourg) S.A.

*4.	Mitsubishi UFJ Securities International plc plans to be renamed MUFG Securities EMEA plc on July 1, 2016.

*5.	Mitsubishi UFJ Securities (USA), Inc. is planned to be renamed MUFG Securities Americas Inc. and its ownership transferred to MUFG Americas Holdings Corporation on July 1, 2016.

*6.	Mitsubishi UFJ Securities (Singapore), Limited plans to be renamed MUFG Securities Asia (Singapore) Limited on July 1, 2016.

*7.	Consumer finance subsidiaries.

Mitsubishi UFJ Financial Group, Inc.

The Group has a combined group organization through which it seeks as a unified group to meet the financial needs of its customers by providing financial products and services that transcend traditional business boundaries. A system of business groups has been introduced under which the group formulates a unified strategy and pursues its business based on coordination between group companies.

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**	The Nominating and Governance Committee is a nomination committee under the Companies Act.

***	On July 1, 2016, an Americas Enterprise Risk Management Division is planned to be established within the Global Business Group, and the Americas Enterprise Risk Management Office in the Americas Holdings Division will be abolished.

Mitsubishi UFJ Financial Group, Inc.

3. Management Policy

(1) Principal management policy

MUFG Group has formulated the Group Corporate Vision to clarify the nature of the Group’s overall mission and the type of group it should aspire to be, and as a shared credo to unify the hearts and minds of Group employees, while meeting the expectations of customers and society. Throughout the Group, the people of MUFG are working under three shared values—Integrity and Responsibility, Professionalism and Teamwork, and Challenging Ourselves to Grow—while aiming to be the world’s most trusted financial group.

•

Corporate Vision

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(2) Medium- and long-term management strategy

The operating environment for financial institutions is transforming substantially amidst such trends as changing patterns of consumption stemming from an aging Japanese population and its declining birthrate and the advance of information and communications technology. It is crucial to the continued progress of MUFG for us to maintain an accurate understanding of such changes, and evolve and reform our business model as a preemptive response to these changes. Based on this recognition, the MUFG Group turned its eye toward the expected operating environment changes over the next decade, and launched its medium-term business plan, which outlines the strategies that will be implemented over the first three years of this period (Fiscal 2015–Fiscal 2017).

The basic policy of the medium-term business plan was defined as “Evolution and reformation to achieve sustainable growth for MUFG,” and we formulated the Group business strategies and the administrative practices and business foundation strategies of the plan based on three strategic focuses: “Customer perspective,” “Group-driven approach,” and “Productivity improvements.” “Customer perspective” calls on us to develop businesses based on changing customer needs. “Group-driven approach” inspires us to bolster inter-Group company unity and consider how to optimize our business on a Group-wide basis. “Productivity improvements” encapsulates our commitment to boosting competitiveness by pursuing higher levels of rationality and efficiency.

Mitsubishi UFJ Financial Group, Inc.

By swiftly responding to environmental changes and continuing to accelerate and broaden the business and administration strategies outlined in MUFG’s medium-term business plan, the Group will pursue improved corporate value and work to live up to the expectations of its customers, shareholders, employees, and other stakeholders.

(3) Key issues

In fiscal 2015, the outlook for the world economy grew more uncertain as markets were affected by the United States’ exit strategy from quantitative easing and the large impact of China’s economic slowdown on developing economies. Financial markets experienced large fluctuations, partly due to the Bank of Japan’s adoption of negative interest rates early in 2016. In this environment, MUFG implemented the first year of its medium-term business plan in a concerted, Group-wide effort to advance and revolutionize its business model ahead of structural changes in the future.

Advancing Group business strategies

As part of our Group business strategies, we will maintain our focus on the Japanese market while simultaneously working to incorporate the growth of the global market and evolving and reforming our business model.

For individual customers, the Group will band together to provide asset management, asset administration, and inheritance services and encourage the flow of assets from savings to investment while helping to stimulate consumption by strengthening payment and consumer finance businesses.

To address the needs of SME customers, MUFG will work to provide smooth support for customers’ funding needs while also implementing initiatives in new business fields. Initiatives in new fields will include enhancing M&A advisory service functions to respond to the rising number of business transfers and bolstering the Group’s ability to provide asset management solutions. At the same time, the Group will also accelerate efforts to contribute to the growth of customers through means such as offering business matching services.

Meanwhile, MUFG will respond to the ever more advanced, diverse, and global needs of large companies through concerted efforts conducted on a Group-wide and global basis, and will establish a unique global Corporate & Investment Banking (CIB)*1 model to aid in this endeavor. As part of this process, the Group will consolidate the its sector-specific expertise while deepening strategic collaboration with Morgan Stanley.

In sales and trading operations*2, we intend to advance integrated operations to boost our competitiveness. Specifically, MUFG will push forward with efforts to strengthen its ability to provide products and services that address the diverse needs of various customers, such as corporations and institutional investors, on a global basis.

As for asset management and investor service operations, MUFG is committed to establishing a strong position as a global player in the fields of alternative investment investor services and asset management operations in the United States, Asia, and other regions. Both organic and non-organic strategies will be employed in pursuing this goal.

Mitsubishi UFJ Financial Group, Inc.

In transaction banking*3 operations, we aim to build an unrivaled position in the domestic market. At the same time, we will redouble efforts to address cross-border business flows, and expand trade finance operations. In addition, we will bolster product competitiveness and step up inter-regional collaboration to increase deposit balances.

Outside Japan, MUFG is working to establish and strengthen unique, comprehensive commercial banking platforms. These efforts are centered around Bank of Ayudhya Public Company Limited and MUFG Union Bank, N.A and also include developing our new capital and business alliance with Security Bank Corporation. The Group’s overseas operations have previously focused primarily on transactions with large companies, but in strengthening platforms we are branching out to accommodate local individual and SME customers.

*1	A business model that provides customers with end-to-end, comprehensive financial services including both Corporate Banking (e.g. deposits and loans) and Investment Banking (e.g. M&A advisory) services, in order to help customers increase their corporate value

*2	General term for sales operations involving the provision of financial products and solutions including foreign exchange and derivatives, and trading operations to buy and sell marketable products through inter-bank trading or trading on exchanges

*3	General term for deposit business, domestic exchange business, foreign exchange business, and related businesses such as cash management and trade finance

Enhancement of management fundamentals and controls

Strategies for enhancing management fundamentals and controls include the following measures to improve upon the financial base and administration practices that will underpin the evolution and reformation of business models.

BTMU, MUTB, and MUSHD will transition to Company with Audit and Supervisory Committee. Through building effective frameworks for business supervision by the Board of Directors, MUFG aims to further strengthen corporate governance systems, and governance on both a Group and global basis. At the same time, MUFG is developing more evolved and advanced comprehensive risk management practices that address new regulations and progress in businesses while placing emphasis on managing risks in an integrated and preventative manner.

We aim to strengthen and streamline the Group business platform, and this will be done in part through shared usage of systems, back-office functions, and facilities on a Group-wide basis.

In managing the Group’s finances and capital, we will work to entrench frameworks for increasing returns on risks taken, which will be done while maintaining a strong capital base as the first priority. We will also diversify funding methods in consideration of global financial regulations.

Communication with external stakeholders and Group employees will be conducted strategically and in a manner that is integrated on a Group-wide and global basis to maximize the benefits of this communication. We recognize internal communication as a means of fostering a corporate culture and creating sense of cohesion within the Group. Meanwhile, communication with outside parties contributes to improving customer satisfaction and brand value and helps accomplish corporate social responsibility activities.

Mitsubishi UFJ Financial Group, Inc.

(4) Management Target

MUFG has set an earnings target of 850.0 billion yen of profits attributable to owners of parent for the fiscal year ending March 31, 2017.

[Reference]

MUFG Consolidated


(in billions of Japanese yen)	For the fiscal year ending March 31, 2017			For the six months ending September 30, 2016			For the fiscal year ended March 31, 2016 (Results)			For the six months ended September 30, 2015 (Results)
Total credit costs		(210.0	)		(110.0	)		(255.1	)		(31.0	)
Ordinary profits		1,320.0			610.0			1,539.4			969.9
Profits attributable to owners of parent		850.0			360.0			951.4			599.3

<2 Banks on a stand-alone basis>

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Net business profits before provision for general allowance for credit losses		670.0			320.0			888.1			480.4
Total credit costs		(40.0	)		(20.0	)		(103.4	)		21.2
Ordinary profits		600.0			290.0			863.7			538.3
Net income		430.0			210.0			586.0			379.6

Mitsubishi UFJ Trust and Banking Corporation
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		170.0			80.0			193.0			95.6
Total credit costs		(10.0	)		(5.0	)		(0.2	)		1.3
Ordinary profits		165.0			75.0			206.5			99.5
Net income		120.0			55.0			159.9			70.3

4. Basic Views on Selection of Accounting Standards

MUFG group, currently adopting Japanese GAAP, is preparing for its future adoption of IFRS by considering the development of its infrastructures and organizations within the group, and the timing of adoption.

Mitsubishi UFJ Financial Group, Inc.

5. Consolidated Financial Statements

(1) Consolidated Balance Sheets


(in millions of yen)	As of March 31, 2015			As of March 31, 2016
Assets:
Cash and due from banks		40,488,318			49,158,293
Call loans and bills bought		604,625			660,015
Receivables under resale agreements		7,342,335			7,466,633
Receivables under securities borrowing transactions		4,633,544			6,041,983
Monetary claims bought		4,570,712			4,733,393
Trading assets		20,810,617			20,460,863
Money held in trust		700,218			679,678
Securities		73,538,191			69,993,869
Loans and bills discounted		109,368,340			113,756,325
Foreign exchanges		2,187,311			1,792,888
Other assets		10,119,936			12,255,764
Tangible fixed assets		1,352,727			1,362,044
Buildings		333,430			349,761
Land		744,416			730,130
Lease assets		11,181			10,856
Construction in progress		35,774			38,494
Other tangible fixed assets		227,924			232,801
Intangible fixed assets		1,297,277			1,254,727
Software		552,345			570,884
Goodwill		309,119			278,628
Lease assets		730			648
Other intangible fixed assets		435,082			404,566
Net defined benefit assets		504,761			377,955
Deferred tax assets		114,919			125,739
Customers’ liabilities for acceptances and guarantees		9,511,714			9,240,310
Allowance for credit losses		(995,784	)		(1,057,585	)

Total assets		286,149,768			298,302,898

Mitsubishi UFJ Financial Group, Inc.


(in millions of yen)	As of March 31, 2015			As of March 31, 2016
Liabilities:
Deposits		153,357,410			160,965,056
Negotiable certificates of deposit		16,073,850			11,591,578
Call money and bills sold		3,600,104			1,360,238
Payables under repurchase agreements		21,899,506			23,515,240
Payables under securities lending transactions		8,205,350			4,710,407
Commercial papers		2,179,634			2,292,282
Trading liabilities		15,521,917			17,251,302
Borrowed money		13,866,196			12,482,277
Foreign exchanges		1,496,476			2,054,937
Short-term bonds payable		789,512			752,492
Bonds payable		8,141,713			9,190,542
Due to trust accounts		3,183,295			13,296,033
Other liabilities		9,530,371			10,834,564
Reserve for bonuses		90,360			90,219
Reserve for bonuses to directors		454			396
Net defined benefit liabilities		62,121			62,791
Reserve for retirement benefits to directors		1,086			1,113
Reserve for loyalty award credits		15,375			15,971
Reserve for contingent losses		204,790			210,087
Reserves under special laws		3,771			4,232
Deferred tax liabilities		988,550			866,815
Deferred tax liabilities for land revaluation		138,669			127,237
Acceptances and guarantees		9,511,714			9,240,310

Total liabilities		268,862,234			280,916,129

Net assets:
Capital stock		2,141,513			2,141,513
Capital surplus		1,428,403			1,425,637
Retained earnings		7,860,410			8,587,578
Treasury stock		(101,661	)		(298,922	)

Total shareholders’ equity		11,328,666			11,855,806

Net unrealized gains (losses) on other securities		2,835,091			2,486,627
Net deferred gains (losses) on hedging instruments		83,194			337,297
Land revaluation excess		172,350			176,364
Foreign currency translation adjustments		951,547			791,401
Remeasurements of defined benefit plans		(52,909	)		(189,526	)

Total accumulated other comprehensive income		3,989,274			3,602,163

Subscription rights to shares		8,271			8,260
Non-controlling interests		1,961,322			1,920,538

Total net assets		17,287,533			17,386,769

Total liabilities and net assets		286,149,768			298,302,898

Mitsubishi UFJ Financial Group, Inc.

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Consolidated Statements of Income


(in millions of yen)	For the fiscal year ended March 31, 2015		For the fiscal year ended March 31, 2016
Ordinary income		5,638,402		5,714,419
Interest income		2,806,238		2,769,248
Interest on loans and bills discounted		1,835,445		1,812,133
Interest and dividends on securities		627,946		628,882
Interest on call loans and bills bought		11,813		9,887
Interest on receivables under resale agreements		53,712		41,818
Interest on receivables under securities borrowing transactions		9,237		6,520
Interest on deposits		63,470		79,087
Other interest income		204,612		190,919
Trust fees		111,916		117,046
Fees and commissions		1,508,698		1,536,719
Trading income		352,950		306,354
Other business income		407,668		469,265
Other ordinary income		450,930		515,784
Gains on loans written-off		64,735		60,645
Others		386,194		455,138
Ordinary expenses		3,925,400		4,174,932
Interest expenses		624,743		655,735
Interest on deposits		296,887		292,909
Interest on negotiable certificates of deposit		44,009		48,093
Interest on call money and bills sold		7,226		8,204
Interest on payables under repurchase agreements		39,075		48,263
Interest on payables under securities lending transactions		8,424		7,449
Interest on commercial papers		3,445		6,347
Interest on borrowed money		47,826		46,856
Interest on short-term bonds payable		661		749
Interest on bonds payable		132,499		142,728
Other interest expenses		44,686		54,133
Fees and commissions		200,094		216,165
Other business expenses		133,275		183,583
General and administrative expenses		2,619,867		2,602,450
Other ordinary expenses		347,420		516,997
Provision for allowance for credit losses		62,012		132,691
Others		285,407		384,305

Ordinary profits		1,713,001		1,539,486

Mitsubishi UFJ Financial Group, Inc.


(in millions of yen)	For the fiscal year ended March 31, 2015		For the fiscal year ended March 31, 2016
Extraordinary gains		14,655		21,316
Gains on disposition of fixed assets		5,011		21,316
Gains on change in equity		9,643		—
Extraordinary losses		112,899		62,033
Losses on disposition of fixed assets		9,938		12,144
Losses on impairment of fixed assets		11,487		13,415
Provision for reserve for contingent liabilities from financial instruments transactions		918		460
Losses on change in equity		33,291		36,013
Settlement package		37,097		—
Losses on sales of equity securities of subsidiaries		20,167		—

Income before income taxes and others		1,614,757		1,498,769

Income taxes-current		421,941		424,814
Income taxes-deferred		45,845		35,389

Total taxes		467,786		460,204

Profits		1,146,970		1,038,565

Profits attributable to non-controlling interests		113,211		87,162

Profits attributable to owners of parent		1,033,759		951,402

Mitsubishi UFJ Financial Group, Inc.

Consolidated Statements of Comprehensive Income


(in millions of yen)	For the fiscal year ended March 31, 2015		For the fiscal year ended March 31, 2016
Profits		1,146,970		1,038,565
Other comprehensive income
Net unrealized gains (losses) on other securities		1,595,505		(346,220	)
Net deferred gains (losses) on hedging instruments		77,367		252,671
Land revaluation excess		14,149		7,055
Foreign currency translation adjustments		442,466		(214,273	)
Remeasurements of defined benefit plans		27,880		(141,896	)
Share of other comprehensive income of associates accounted for using equity method		150,891		24,759

Total other comprehensive income		2,308,260		(417,903	)

Comprehensive income		3,455,231		620,662

(Comprehensive income attributable to)
Comprehensive income attributable to owners of the parent		3,313,220		556,163
Comprehensive income attributable to non-controlling interests		142,011		64,498

Mitsubishi UFJ Financial Group, Inc.

(3) Consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2015


	(in millions of yen)
	Shareholders’ equity														Accumulated other comprehensive income
	Capital stock		Capital surplus			Retained earnings			Treasury stock			Total shareholders’ equity			Net unrealized gains (losses) on other securities			Net deferred gains (losses) on hedging instruments
Balance at the beginning of the period		2,140,488		2,174,384			7,033,125			(1,699	)		11,346,299			1,218,397			8,295
Cumulative effects of changes in accounting policies				(346,454	)		57,909						(288,545	)
Restated balance		2,140,488		1,827,929			7,091,035			(1,699	)		11,057,754			1,218,397			8,295
Changes during the period
Issuance of new shares-exercise of subscription rights to shares		1,024		1,023									2,048
Dividends from retained earnings							(263,959	)					(263,959	)
Profits attributable to owners of parent							1,033,759						1,033,759
Repurchase of treasury stock										(490,045	)		(490,045	)
Disposal of treasury stock				68						82			150
Retirement of treasury stock				(390,000	)					390,000			—
Reversal of land revaluation excess							(424	)					(424	)
Changes in subsidiaries’ equity				(10,617	)								(10,617	)
Net changes of items other than shareholders’ equity																1,616,693			74,898

Total changes during the period		1,024		(399,526	)		769,374			(99,962	)		270,911			1,616,693			74,898

Balance at the end of the period		2,141,513		1,428,403			7,860,410			(101,661	)		11,328,666			2,835,091			83,194


	(in millions of yen)
	Accumulated other comprehensive income											Subscription rights to shares			Non-controlling interests			Total net assets
	Land revaluation excess		Foreign currency translation adjustments			Remeasurements of defined benefit plans			Total accumulated other comprehensive income			Subscription rights to shares			Non-controlling interests			Total net assets
Balance at the beginning of the period		157,776		407,229			(81,937	)		1,709,760			8,732			2,048,101			15,112,895
Cumulative effects of changes in accounting policies				(219	)		(152	)		(371	)					(14,360	)		(303,277	)
Restated balance		157,776		407,010			(82,090	)		1,709,388			8,732			2,033,741			14,809,617
Changes during the period
Issuance of new shares-exercise of subscription rights to shares																			2,048
Dividends from retained earnings																			(263,959	)
Profits attributable to owners of parent																			1,033,759
Repurchase of treasury stock																			(490,045	)
Disposal of treasury stock																			150
Retirement of treasury stock																			—
Reversal of land revaluation excess																			(424	)
Changes in subsidiaries’ equity																			(10,617	)
Net changes of items other than shareholders’ equity		14,574		544,537			29,180			2,279,885			(461	)		(72,419	)		2,207,004

Total changes during the period		14,574		544,537			29,180			2,279,885			(461	)		(72,419	)		2,477,916

Balance at the end of the period		172,350		951,547			(52,909	)		3,989,274			8,271			1,961,322			17,287,533

Mitsubishi UFJ Financial Group, Inc.

For the fiscal year ended March 31, 2016


	(in millions of yen)
	Shareholders’ equity														Accumulated other comprehensive income
	Capital stock		Capital surplus			Retained earnings			Treasury stock			Total shareholders’ equity			Net unrealized gains (losses) on other securities			Net deferred gains (losses) on hedging instruments
Balance at the beginning of the period		2,141,513		1,428,403			7,860,410			(101,661	)		11,328,666			2,835,091			83,194
Changes during the period
Dividends from retained earnings							(251,392	)					(251,392	)
Profits attributable to owners of parent							951,402						951,402
Repurchase of treasury stock										(200,077	)		(200,077	)
Disposal of treasury stock				(1,182	)					2,815			1,633
Reversal of land revaluation excess							3,042						3,042
Change of application of equity method							24,394						24,394
Changes in subsidiaries’ equity				(1,584	)								(1,584	)
Changes in foreign affiliates’ interests in their subsidiaries							(278	)					(278	)
Net changes of items other than shareholders’ equity																(348,464	)		254,103

Total changes during the period				(2,766	)		727,168			(197,261	)		527,140			(348,464	)		254,103

Balance at the end of the period		2,141,513		1,425,637			8,587,578			(298,922	)		11,855,806			2,486,627			337,297


	(in millions of yen)
	Accumulated other comprehensive income
	Land revaluation excess		Foreign currency translation adjustments			Remeasurements of defined benefit plans			Total accumulated other comprehensive income			Subscription rights to shares			Non-controlling interests			Total net assets
Balance at the beginning of the period		172,350		951,547			(52,909	)		3,989,274			8,271			1,961,322			17,287,533
Changes during the period
Dividends from retained earnings																			(251,392	)
Profits attributable to owners of parent																			951,402
Repurchase of treasury stock																			(200,077	)
Disposal of treasury stock																			1,633
Reversal of land revaluation excess																			3,042
Change of application of equity method																			24,394
Changes in subsidiaries’ equity																			(1,584	)
Changes in foreign affiliates’ interests in their subsidiaries																			(278	)
Net changes of items other than shareholders’ equity		4,013		(160,146	)		(136,616	)		(387,110	)		(10	)		(40,783	)		(427,904	)

Total changes during the period		4,013		(160,146	)		(136,616	)		(387,110	)		(10	)		(40,783	)		99,236

Balance at the end of the period		176,364		791,401			(189,526	)		3,602,163			8,260			1,920,538			17,386,769

Mitsubishi UFJ Financial Group, Inc.

(4) Consolidated Statements of Cash Flows


	For the fiscal year			For the fiscal year
	ended			ended
(in millions of yen)	March 31, 2015			March 31, 2016
Cash flows from operating activities:
Income before income taxes and others		1,614,757			1,498,769
Depreciation		300,163			298,527
Impairment losses		11,487			13,415
Amortization of goodwill		17,787			16,931
Equity in losses (gains) of affiliates		(159,637	)		(230,415	)
Increase (decrease) in allowance for credit losses		46,037			71,084
Increase (decrease) in reserve for bonuses		10,321			955
Increase (decrease) in reserve for bonuses to directors		(172	)		(58	)
Decrease (increase) in net defined benefit assets		(62,696	)		(88,908	)
Increase (decrease) in net defined benefit liabilities		(1,601	)		(2,255	)
Increase (decrease) in reserve for retirement benefits to directors		(115	)		27
Increase (decrease) in reserve for loyalty award credits		969			1,313
Increase (decrease) in reserve for contingent losses		(43,807	)		5,572
Interest income recognized on statement of income		(2,806,238	)		(2,769,248	)
Interest expenses recognized on statement of income		624,743			655,735
Losses (gains) on securities		(208,271	)		(221,235	)
Losses (gains) on money held in trust		639			(10,689	)
Foreign exchange losses (gains)		(1,213,235	)		1,439,205
Losses (gains) on sales of fixed assets		4,926			(9,171	)
Net decrease (increase) in trading assets		(1,337,542	)		49,544
Net increase (decrease) in trading liabilities		1,181,142			1,980,093
Adjustment of unsettled trading accounts		889,029			(821,034	)
Net decrease (increase) in loans and bills discounted		(5,909,031	)		(4,990,628	)
Net increase (decrease) in deposits		6,793,900			7,888,704
Net increase (decrease) in negotiable certificates of deposit		488,549			(4,482,406	)
Net increase (decrease) in borrowed money (excluding subordinated borrowings)		3,247,294			(1,362,550	)
Net decrease (increase) in due from banks (excluding cash equivalents)		(13,003,581	)		80,699
Net decrease (increase) in call loans and bills bought and others		261,206			(633,599	)
Net decrease (increase) in receivables under securities borrowing transactions		(370,559	)		(1,438,094	)
Net increase (decrease) in call money and bills sold and others		(350,881	)		(435,883	)
Net increase (decrease) in commercial papers		667,730			119,203
Net increase (decrease) in payables under securities lending transactions		2,657,417			(3,446,893	)
Net decrease (increase) in foreign exchanges (assets)		(137,770	)		380,193
Net increase (decrease) in foreign exchanges (liabilities)		375,867			544,080
Net increase (decrease) in short-term bonds payable		353,597			(37,019	)
Net increase (decrease) in issuance and redemption of unsubordinated bonds payable		906,637			649,951
Net increase (decrease) in due to trust accounts		1,238,144			10,112,737
Interest income (cash basis)		2,917,319			2,897,378
Interest expenses (cash basis)		(636,368	)		(654,026	)
Others		(26,303	)		175,151

Sub-total		(1,658,147	)		7,245,155

Income taxes		(463,446	)		(537,036	)
Refund of income taxes		25,845			46,308

Net cash provided by (used in) operating activities		(2,095,748	)		6,754,428

Mitsubishi UFJ Financial Group, Inc.


	For the fiscal year			For the fiscal year
	ended			ended
(in millions of yen)	March 31, 2015			March 31, 2016
Cash flows from investing activities:
Purchases of securities		(138,305,190	)		(86,422,400	)
Proceeds from sales of securities		110,348,143			60,274,528
Proceeds from redemption of securities		34,682,841			28,452,434
Increase in money held in trust		(479,026	)		(641,740	)
Decrease in money held in trust		576,140			672,854
Purchases of tangible fixed assets		(176,368	)		(116,931	)
Purchases of intangible fixed assets		(223,581	)		(231,615	)
Proceeds from sales of tangible fixed assets		12,393			35,494
Proceeds from sales of intangible fixed assets		19			166
Decrease related to purchases of subsidiaries’ equity affecting the scope of consolidation		(1,015	)		—
Increase related to purchases of subsidiaries’ equity affecting the scope of consolidation		—			218,639
Increase related to sales of subsidiaries’ equity affecting the scope of consolidation		67,952			—
Others		(619	)		(1,221	)

Net cash provided by (used in) investing activities		6,501,689			2,240,209

Cash flows from financing activities:
Increase in subordinated borrowings		55,000			38,000
Decrease in subordinated borrowings		(74,800	)		(92,500	)
Increase in subordinated bonds payable and bonds with warrants		190,000			793,218
Decrease in subordinated bonds payable and bonds with warrants		(284,324	)		(294,460	)
Proceeds from issuance of common stock to non-controlling shareholders		2,949			1,081
Decrease in redemption of preferred stocks		(137,400	)		—
Dividend paid by MUFG		(263,978	)		(251,497	)
Dividend paid by subsidiaries to non-controlling shareholders		(106,964	)		(94,825	)
Repayments to non-controlling shareholders		(17,602	)		—
Purchases of treasury stock		(490,044	)		(200,053	)
Proceeds from sales of treasury stock		2			1
Decrease related to purchases of subsidiaries’ equity not affecting the scope of consolidation		(29,463	)		(4,572	)
Others		4			3

Net cash provided by (used in) financing activities		(1,156,621	)		(105,602	)

Effect of foreign exchange rate changes on cash and cash equivalents		252,797			(115,214	)

Net increase (decrease) in cash and cash equivalents		3,502,117			8,773,820

Cash and cash equivalents at the beginning of the period		6,487,918			9,990,035

Cash and cash equivalents at the end of the period		9,990,035			18,763,856

Mitsubishi UFJ Financial Group, Inc.

Notes to the Consolidated Financial Statements

(Notes on Going-Concern Assumption)

Not applicable

(Significant Accounting Policies Applied in the Preparation of the Consolidated Financial Statements)

1.	Scope of Consolidation

(1)

Number of Consolidated Subsidiaries: 224

Principal companies:


The Bank of Tokyo-Mitsubishi UFJ, Ltd.		Mitsubishi UFJ Securities Holdings Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation		Mitsubishi UFJ NICOS Co., Ltd.
ACOM CO., LTD.

(Changes in the scope of consolidation)

In the current fiscal year, Mitsubishi UFJ Capital V, Limited Partnership and 12 other companies were newly consolidated following new establishments or for other reasons.

In the current fiscal year, Mitsubishi UFJ Venture Fund II, Limited Partnership and 14 other companies were excluded from the scope of consolidation because they were no longer subsidiaries due to liquidation or other reasons.

(2)

Non-consolidated Subsidiaries: None

(3)

Entities not Accounted for as Subsidiaries even though MUFG owns the Majority of Voting Rights:

Hygeia Co., Ltd.

OiDE CapiSEA, Inc.

These were not treated as subsidiaries because Hygeia was established as a property management agent for a land trust project without any intent to control, or because OiDE CapiSEA, Inc. was established as ownership to benefit from the appreciation of their investments resulting from growth of the investees’ businesses without any intent to control.

2.	Application of the Equity Method

(1)

Number of Non-consolidated Subsidiaries Accounted for under the Equity Method: None

(2)

Number of Affiliates Accounted for under the Equity Method: 65

Principal companies:

Mitsubishi UFJ Lease & Finance Company Limited

Morgan Stanley

(Changes in the scope of application of the equity method)

In current fiscal year, GOLDEN ASIA FUND II, L.P. and 2 other companies were newly included in the scope of application of the equity method following new establishments.

(3)

Number of Non-consolidated Subsidiaries not Accounted for under the Equity Method: None

(4)

Affiliates not Accounted for under the Equity Method: None

(5)

Entities not Recognized as Affiliates in which MUFG Owns 20% to 50% of their Voting Rights:

TECHTOM Ltd.

Osteopharma Inc.

Hirosaki Co., Ltd.

EDP Corporation

ISLE Co.,Ltd.

Fun Place Co.,Ltd.

AKITAYA Co,.Ltd.

These were not treated as affiliates because MUFG’s consolidated venture capital subsidiaries owned 20% to 50% of voting rights primarily to benefit from the appreciation of their investments resulting from growth or restructuring of the investees’ businesses, without any intent to control.

Mitsubishi UFJ Financial Group, Inc.

3.	The Balance Sheet Dates of Consolidated Subsidiaries

(1)

The balance sheet dates of consolidated subsidiaries were as follows:


August 31:	1	subsidiary
October 31:	1	subsidiary
December 31:	140	subsidiaries
January 24:	17	subsidiaries
March 31:	65	subsidiaries

(2)

A subsidiary whose balance sheet date is August 31 was consolidated based on its preliminary financial statements as of February 29.

A subsidiary whose balance sheet date is October 31 was consolidated based on its preliminary financial statements as of January 31.

Subsidiaries other than specified above were consolidated based on the financial statements as of their balance sheet dates.

Adjustments were made to the consolidated financial statements to reflect the significant transactions that occurred between the balance sheet dates of the subsidiaries and the consolidated balance sheet date.

4.	Accounting Policies

(1)

Trading Assets and Trading Liabilities; Trading Income and Expenses

Transactions involving short-term fluctuations or arbitrage opportunities in interest rates, currency exchange rates, market prices of financial instruments or other market indices (“trading purposes”) are presented in “Trading assets” and “Trading liabilities” on the consolidated balance sheet on a trade-date basis, and gains and losses from trading transactions (interest and dividends, gains or losses on sales and gains or losses on valuation) are presented in “Trading income” and “Trading expenses” on the consolidated statement of income on a trade-date basis.

Trading assets and trading liabilities are stated at their fair values on the consolidated balance sheet date.

(2)

Securities

(A)

Debt securities being held to maturity are stated at amortized cost (using the straight-line method) computed using the moving average method. Other securities are primarily stated at their quoted market prices on the consolidated balance sheet date (cost of securities sold is calculated primarily using the moving average method), and other securities whose fair value is extremely difficult to estimate are stated at acquisition costs computed using the moving average method. Net unrealized gains (losses) on other securities are included directly in net assets, net of applicable income taxes, except in the case of application of the fair value hedge accounting method, in which the change in fair value recognized is recorded in current earnings.

(B)

Securities that are held as trust assets in money held in trust are accounted for under the same basis as noted above in Notes (1) and (2)(A). Unrealized gains and losses on securities in money held in trust, which are not held for trading purposes or held to maturity, are included directly in net assets, net of applicable income taxes.

(3)

Derivatives

Derivative transactions (other than trading purposes) are calculated primarily based on fair value.

Mitsubishi UFJ Financial Group, Inc.

(4)

Depreciation and Amortization of Fixed Assets

(A)

Tangible Fixed Assets (Except for Lease Assets)

Depreciation of tangible fixed assets of MUFG and its domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries is computed using the declining-balance method.

The useful lives are primarily estimated as follows:

Buildings: 15 to 50 years

Equipment: 2 to 20 years

Depreciation of tangible fixed assets of other consolidated subsidiaries is computed primarily using the straight-line method based on their estimated useful lives.

(B)

Intangible Fixed Assets (Except for Lease Assets)

Amortization of intangible fixed assets is computed using the straight-line method. Development costs for internally used software are amortized using the straight-line method over the estimated useful lives of primarily 3 to 10 years.

(C)

Lease Assets

Depreciation or amortization of lease assets in “Tangible fixed assets” or “Intangible fixed assets” of the finance leases other than those that are deemed to transfer the ownership of leased property to the lessees is computed using the straight-line method over the lease periods with zero residual value unless residual value is guaranteed by the corresponding lease contracts.

(5)

Deferred Assets

Bond issuance costs and stock issuance costs are expensed as incurred.

(6)

Allowance for Credit Losses

Principal domestic consolidated subsidiaries provide an allowance for credit losses in accordance with the internal standards for self-assessment of asset quality and the internal standards for write-offs and provisions.

For claims on borrowers that have entered into bankruptcy, special liquidation proceedings or similar legal proceedings or whose notes have been dishonored and suspended from processing through clearing houses (“bankrupt borrowers”) or borrowers that are not legally or formally bankrupt but are regarded as substantially in a similar condition (“substantially bankrupt borrowers”), allowances are provided based on the amount of claims, after the write-offs as stated below, net of expected amounts to be collected through the disposal of collateral and the execution of guarantees.

For claims on borrowers that are not yet legally or formally bankrupt but deemed to have a high possibility of becoming bankrupt (“potentially bankrupt borrowers”) excluding a portion of which principal and interest payment can be reasonably estimated from borrower’s cash flows, allowances are provided based on an overall solvency assessment of the claims, net of expected amounts to be collected through the disposal of collateral and the execution of guarantees.

For claims on potentially bankrupt borrowers and claims on borrowers requiring close monitoring, of which principal and interest payment can be reasonably estimated from borrower’s cash flows, allowances are provided in an amount equal to the difference between the book value of the claims and the relevant cash flows discounted by the initial contractual interest rates.

For other claims, allowances are provided based on historical credit loss experience.

For claims originated in specific foreign countries, additional allowances are provided based on an assessment of political and economic conditions of these countries.

All claims are assessed by branches and the credit supervision departments in accordance with the internal standards for self-assessment of asset quality. The credit review department, which is independent from those operating sections, subsequently audits these assessments.

For claims on bankrupt borrowers and substantially bankrupt borrowers, the amount of claims exceeding the estimated value of collateral or guarantees, which is deemed uncollectible, has been written-off. The total amount of write-offs was ¥397,076 million.

Mitsubishi UFJ Financial Group, Inc.

Consolidated subsidiaries, not adopting procedures stated above, provide allowances based on their historical credit loss experience for general claims and based on individual assessments of the possibility of collection for specific deteriorated claims.

(7)

Reserve for Bonuses

Reserve for bonuses, which is provided for future bonus payments to employees, reflects an estimated amount accrued on the consolidated balance sheet date.

(8)

Reserve for Bonuses to Directors

Reserve for bonuses to directors, which is provided for future bonus payments to directors, reflects an estimated amount accrued on the consolidated balance sheet date.

(9)

Reserve for Retirement Benefits to Directors

Reserve for retirement benefits to directors, which is provided for future payments of retirement benefits to directors of subsidiaries, is recorded in the amount deemed accrued on the consolidated balance sheet date based on the estimated amount of benefits.

(10)

Reserve for Loyalty Award Credits

Reserve for loyalty award credits, which is provided to meet future use of credits granted to credit card (such as Super IC Card) customers, is recorded in the amount deemed necessary based on the estimated future use of unused credits.

(11)

Reserve for Contingent Losses

Reserve for contingent losses, which is provided for possible losses from contingent events related to off-balance -sheet and other transactions, is calculated by estimating the impact of such contingent events and includes future claims for repayment of excess interest payments on consumer loans that are estimated based on the past and pending claims.

(12)

Reserves under Special Laws

Reserves under special laws represent the reserve for contingent liabilities from financial instrument transactions set aside in accordance with Article 46-5-1 and Article 48-3-1 of the Financial Instruments and Exchange Law and Article 175 and Article 189 of the Cabinet Office Ordinance on Financial Instruments Business.

(13)

Retirement Benefits

In calculating benefit obligation, the portion of projected benefit obligation attributed to the current fiscal year is determined using the benefit formula basis.

Unrecognized prior service cost is amortized using the straight-line method for a fixed period, primarily over 10 years, within the employees’ average remaining service period.

Unrecognized net actuarial gains (losses) are amortized using the straight-line method for a fixed period, primarily over 10 years, within the employees’ average remaining service period, starting from the subsequent fiscal year after its occurrence.

For certain overseas branches of domestic consolidated subsidiaries and some of consolidated subsidiaries, net defined benefit liability and retirement benefit expenses are calculated by the simplified method.

(14)

Translation of Assets and Liabilities Denominated in Foreign Currencies

Assets and liabilities denominated in foreign currencies or booked at overseas branches of domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries are translated into yen primarily at exchange rates prevailing at the consolidated balance sheet date, except for investments in non-consolidated affiliates which are translated into yen at exchange rates prevailing at the acquisition dates.

Assets and liabilities denominated in foreign currencies of other consolidated subsidiaries are translated into yen at the exchange rates prevailing at the respective balance sheet date.

Mitsubishi UFJ Financial Group, Inc.

(15)

Leasing Transactions

(As Lessees)

Domestic consolidated subsidiaries’ finance leases other than those that are deemed to transfer the ownership of leased property to the lessees are accounted for in a similar way to purchases, and depreciation for lease assets is computed using the straight-line method over the lease term with zero residual value unless residual value is guaranteed by the corresponding lease contracts.

(As Lessors)

Finance leases other than those that are deemed to transfer the ownership of leased property to the lessees are accounted for in a similar way to sales and income and expenses related to such leases are recognized by allocating interest equivalents to applicable fiscal periods instead of recording sales as “Other ordinary income.”

(16)

Hedge Accounting

(A)

Hedge Accounting for Interest Rate Risks

Domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries have adopted the deferred hedge accounting method for hedging transactions for interest rate risks arising from financial assets and liabilities. Portfolio hedging or individual hedging, as described in the Japanese Institute of Certified Public Accountants (“JICPA”) Industry Audit Committee Report No. 24, “Treatment of Accounting and Auditing of Application of Accounting Standard for Financial Instruments in Banking Industry” (February 13, 2002) and JICPA Accounting Committee Report No. 14, “Practical Guidelines for Accounting for Financial Instruments” (January 31, 2000), are primarily applied to determine hedged items.

With respect to hedging transactions to offset fluctuations in the fair value of fixed rate deposits, loans and other instruments, hedging instruments (e.g. interest rate swaps) are designated to hedged items individually or collectively by their maturities in accordance with JICPA Industry Audit Committee Report No. 24. With respect to hedging transactions to offset fluctuations in fair value of fixed rate bonds classified as other securities, hedging instruments (e.g. interest rate swaps) are designated to hedged items collectively by the type of bond. Since material terms related to hedged items and hedging instruments are substantially identical, and such hedging transactions are deemed highly effective, the assessment of effectiveness is based on the similarity of the terms.

With respect to hedging transactions to fix the cash flows related to floating rate deposits and loans as well as forecasted transactions related to short-term fixed rate deposits, loans and other instruments, hedging instruments (e.g. interest rate swaps) are designated to hedged items collectively by interest rate indices and tenors in accordance with JICPA Industry Audit Committee Report No. 24. Since material terms related to hedged items and hedging instruments are substantially identical, and such hedging transactions are deemed highly effective, the assessment of effectiveness is based on the similarity of the terms. The effectiveness of hedging transactions is also assessed by the correlation between factors that cause fluctuations in interest rates of hedged items and those of hedging instruments.

(B)

Hedge Accounting for Foreign Currency Risks

Domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries have adopted the deferred hedge accounting method for hedging foreign currency risks arising from financial assets and liabilities denominated in foreign currencies. Portfolio hedging is applied to determine hedged items as described in JICPA Industry Audit Committee Report No. 25 “Treatment of Accounting and Auditing concerning Accounting for Foreign Currency Transactions in the Banking Industry” (July 29, 2002). Hedging instruments (e.g. currency swaps and forward exchange contracts) are designated to hedged items collectively by currencies.

Portfolio hedging and individual hedging are applied to hedge foreign currency risks arising from equity investments in foreign subsidiaries and foreign affiliates, and other securities (other than bonds) denominated in foreign currencies. Monetary claims and liabilities denominated in the same foreign currencies or forward exchange contracts are used as hedging instruments. As for the hedge accounting method applied to equity investments in foreign subsidiaries and foreign affiliates, foreign currency translation differences arising from hedging instruments are recorded as foreign currency translation adjustments. The fair value hedge accounting method is applied to other securities (other than bonds) denominated in foreign currencies.

Mitsubishi UFJ Financial Group, Inc.

(C)

Hedge Accounting for Stock Price Fluctuation Risks

Individual hedging is applied to hedge market fluctuation risks arising from strategic equity securities held by domestic consolidated banking subsidiaries. Instruments such as total return swaps are used as hedging instruments. The effectiveness of hedging transactions is assessed by the correlation between changes in fair value of hedged items and changes in fair value of hedging instruments. The fair value hedge accounting method is applied.

(D)

Transactions among Consolidated Subsidiaries

Derivative transactions including interest rate swaps and currency swaps which are designated as hedging instruments among consolidated subsidiaries or between trading accounts and other accounts (or among internal sections) are not eliminated from the consolidated statements of income or valuation difference, but are recognized as related gains or losses or deferred under hedge accounting because these derivative transactions are executed, meeting certain criteria under JICPA Industry Audit Committee Reports No. 24 and No. 25 and they are regarded as equivalent to external third-party transactions.

(17)

Amortization Method and Amortization Period of Goodwill

Goodwill is primarily amortized using the straight-line method over 20 years starting from the period of the acquisition. Other goodwill with insignificant balances is expensed as incurred.

(18)

Cash and Cash Equivalents in the Consolidated Statements of Cash Flows

Cash and cash equivalents in the consolidated statements of cash flows are defined as “Cash and due from banks” on the consolidated balance sheet, excluding time deposits and negotiable certificates of deposits in other banks.

(19)

Consumption Taxes

National and local consumption taxes are excluded from transaction amounts. Non-deductible portions of consumption taxes on the purchases of tangible fixed assets are expensed when incurred.

(20)

Adoption of Consolidated Taxation System

MUFG and some of its domestic consolidated subsidiaries adopt the consolidated taxation system.

(21)

Accounting Standard for Foreign Subsidiaries

Financial statements of foreign subsidiaries are used for consolidated accounting as long as they are prepared in accordance with the International Financial Reporting Standards (“IFRS”) or Accounting Principles Generally Accepted in the United States (“U.S. GAAP”).

If they are prepared in accordance with generally accepted accounting principles in each domicile country and not in accordance with IFRS or U.S. GAAP, the financial statements of foreign subsidiaries are mainly rearranged in accordance with U.S. GAAP. They were also adjusted when necessary in the process of consolidation.

Mitsubishi UFJ Financial Group, Inc.

(Changes in Method of Presentation)

Change in presentation for “Net income,” etc. as well as change in presentation from “Minority interests” to “Non-controlling interests” has been carried out, in compliance with the provisions, etc. in Article 39 of the “Revised Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22 issued on September 13, 2013).

Mitsubishi UFJ Financial Group, Inc.

(Consolidated Balance Sheet)

1.	Securities include ¥2,559,559 million in stock and ¥29,730 million in investments of affiliates.

For borrowed securities under securities borrowing transactions and securities purchased under resale agreements which were permissible to be sold or re-pledged without restrictions, ¥12,388,598 million of such securities were re-pledged, ¥222,362 million were re-loaned and ¥3,091,874 million were held by MUFG as of the consolidated balance sheet date.

3.	Loans to bankrupt borrowers: ¥54,913 million.

Non-accrual delinquent loans: ¥1,110,576 million.

Loans to bankrupt borrowers are loans, after write-offs, to bankrupt borrowers as defined in Article 96-1-3-1 to 5 and 96-1-4 of the Enforcement Ordinance of the Corporate Tax Law (No. 97 in 1965) on which accrued interest income is not recognized (“Non-accrual loans”) as there is substantial doubt as to the collection of principal and/or interest because of delinquencies in payment of principal and/or interest for a significant period of time or for some other reasons.

Non-accrual delinquent loans represent non-accrual loans other than loans to bankrupt borrowers and loans renegotiated at concessionary terms including reduction or deferral of interest due to borrowers’ weakened financial condition.

4.	Loans past due for 3 months or more: ¥51,620 million.

Loans past due for 3 months or more represent loans whose principal and/or interest payments have been past due for 3 months or more excluding loans to bankrupt borrowers and non-accrual delinquent loans.

5.	Restructured loans: ¥438,767 million.

Restructured loans represent loans renegotiated at concessionary terms including reduction or deferral of interest or principal and waiver of the claims for the purpose of business reconstruction or support for the borrower, excluding loans to bankrupt borrowers, non-accrual delinquent loans and loans past due for 3 months or more.

6.	The total amount of loans to bankrupt borrowers, non-accrual delinquent loans, loans past due for 3 months or more and restructured loans was ¥1,655,877 million.

The amounts provided in Notes 3 to 6 represent gross amounts before the deduction of allowances for credit losses.

Bills discounted were accounted for as financial transactions in accordance with JICPA Industry Audit Committee Report No. 24. MUFG’s banking subsidiaries and trust banking subsidiaries have rights to sell or pledge bank acceptances bought, commercial bills discounted, documentary bills and foreign exchanges bought without restrictions. The total face value of these bills was ¥1,088,768 million.

8.	Assets pledged as collateral were as follows:


Cash and due from banks			¥6,194 million
Trading assets			¥125,562 million
Securities			¥2,843,706 million
Loans and bills discounted			¥7,587,495 million

Mitsubishi UFJ Financial Group, Inc.

Liabilities related to pledged assets were as follows:


Deposits			¥755,683 million
Trading liabilities			¥25,015 million
Borrowed money			¥9,323,452 million
Bonds payable			¥19,301 million
Acceptances and guarantees			¥130,389 million

In addition to the items listed above, ¥3,425 million of cash and due from banks, ¥792,042 million of monetary claims bought, ¥273,007 million of trading assets, ¥7,231,961 million of securities, and ¥11,285,082 million of loans and bills discounted were pledged as collateral for cash settlements and other transactions or as deposits for margin accounts of futures and other transactions. ¥1,718,168 million of trading assets and ¥14,804,600 million of securities were sold under repurchase agreements or loaned under secured lending transactions with cash collateral. Payables corresponding to the assets sold or loaned under repurchase agreements and under securities lending transactions were ¥13,081,752 million and ¥3,069,990 million, respectively.

Bills rediscounted were accounted for as financial transactions in accordance with JICPA Industry Audit Committee Report No. 24. The total face value of bills of exchange rediscounted was ¥8,860 million.

Overdraft facilities and commitment lines of credit are binding contracts under which MUFG’s consolidated subsidiaries have obligations to disburse funds up to predetermined limits upon the borrower’s request as long as there have been no breach of contracts. The total amount of the unused portion of these facilities was ¥88,241,307 million.

The total amount of the unused portion does not necessarily represent actual future cash requirements because many of these contracts are expected to expire without being drawn upon. In addition, most of these contracts include clauses which allow MUFG’s consolidated subsidiaries to decline the borrower’s request for disbursement or decrease contracted limits for cause, such as changes in financial condition or deterioration in the borrower’s creditworthiness. MUFG’s consolidated subsidiaries may request the borrowers to pledge real property and/or securities as collateral upon signing of the contract and will perform periodic monitoring on the borrower’s business conditions in accordance with internal procedures, which may lead to renegotiation of the terms and conditions of the contracts and/or initiate the request for additional collateral and/or guarantees.

10.

In accordance with the “Law concerning Revaluation of Land” (the “Law”) (No. 34, March 31, 1998), land used for business operations of domestic consolidated banking subsidiaries and domestic consolidated trust banking subsidiaries has been revalued as of the dates indicated below. The total excess from revaluation, net of income taxes corresponding to the excess which were recognized as “Deferred tax liabilities for land revaluation,” is stated as “Land revaluation excess” in net assets. Land revaluation excess includes MUFG’s share of affiliated companies’ land revaluation excess.

Dates of revaluation:


Domestic consolidated banking subsidiaries		March 31, 1998

Domestic consolidated trust banking subsidiaries		March 31, 1998, December 31, 2001 and March 31, 2002

The method of revaluation as set forth in Article 3, Paragraph 3 of the “Law”:

Fair values are determined based on (1) “published land price under the Land Price Publication Law” stipulated in Article 2-1 of the “Enforcement Ordinance of the Law concerning Revaluation of Land” (“Ordinance”) (No. 119, March 31, 1998), (2) “standard land price determined on measurement spots under the Enforcement Ordinance of National Land Planning Law” stipulated in Article 2-2 of the “Ordinance,” (3) “land price determined by the method established and published by the Director General of the National Tax Agency in order to calculate land value which is used for determining taxable amounts subject to landholding tax articulated in Article 16 of the Landholding Tax Law” stipulated in Article 2-4 of the “Ordinance” with price adjustments by shape and time and (4) appraisal by certified real estate appraisers stipulated in Article 2-5 of the “Ordinance” with price adjustments for time.

In addition, some of our affiliates that were accounted under equity method did the revaluation for land used for business operations on March 31, 2002.

Mitsubishi UFJ Financial Group, Inc.

11.	Accumulated depreciation on tangible fixed assets: ¥1,218,922 million.

12.	Deferred gains on tangible fixed assets deducted for tax purposes: ¥91,132 million.

13.	Borrowed money included ¥616,500 million of subordinated borrowings.

14.	Bonds payable included ¥2,579,457 million of subordinated bonds.

15.	The principal amount of money trusts entrusted to domestic trust banking subsidiaries, for which repayment of the principal to the customers was guaranteed, was ¥7,111,058 million.

16.	With regard to bonds and other securities in “Securities,” guarantee obligations for private placement bonds (provided in accordance with the Article 2-3 of the Financial Instruments and Exchange Law) were ¥580,398 million.

Mitsubishi UFJ Financial Group, Inc.

(Consolidated Statements of Income)

1.	“Other ordinary income” included ¥230,415 million of equity in gains of the equity method investees and ¥145,347 million of gains on sales of equity securities.

2.	“Other ordinary expenses” included ¥143,946 million of write-offs of loans and ¥101,239 million of provision for reserve for contingent losses.

Mitsubishi UFJ Financial Group, Inc.

(Consolidated Statements of Changes in Net Assets)

1.	Detailed Information regarding Outstanding Shares


	(Thousand shares)
	Number of shares as of April 1, 2015		Number of shares increased		Number of shares decreased		Number of shares as of March 31, 2016		Note
Outstanding shares
Common stock		14,168,853		—		—		14,168,853
Total		14,168,853		—		—		14,168,853
Treasury stock
Common stock		151,014		232,946		3,706		380,255		Note
Total		151,014		232,946		3,706		380,255

(Note)

Increase in the number of common stock held in treasury by 232,946 thousand shares was mainly due to the acquisition pursuant to the provisions of Articles of Incorporation, repurchase of stocks in response to requests made by shareholders holding shares constituting less than a unit, and an increase in the number of shares held by affiliates accounted for under the equity method. Decrease in the number of common stock held in treasury by 3,706 thousand shares was mainly due to delivery of shares for exercising stock options, sale of stocks in response to requests made by shareholders holding shares constituting less than a unit, and a decrease in the number of shares held by affiliates accounted for under the equity method.

2.	Information regarding Subscription Rights to Shares


Issuer	Type of subscription rights to shares	Type of stock to be issued		Number of shares subject to subscription rights								Balance as of March 31, 2016 (in millions of yen)
Issuer	Type of subscription rights to shares	Type of stock to be issued		As of April 1, 2015		Increase		Decrease		As of March 31, 2016		Balance as of March 31, 2016 (in millions of yen)
MUFG	Stock options		—		—		—		—		—	8,260
Total			—		—		—		—		—	8,260

Mitsubishi UFJ Financial Group, Inc.

3.	Detailed Information regarding Cash Dividends

(A)

Dividends Paid in the Fiscal Year Ended March 31, 2016

Date of approval

Type of stock

Total Dividends
(in millions of
yen)

Dividend

per share

(¥)

Dividend

record date

Effective date

Annual General Meeting of Shareholders on June 25, 2015

Common stock

126,179

March 31,
2015

June 25,
2015

Meeting of Board of Directors on November 13, 2015

Common stock

125,212

September 30,
2015

December 4,
2015

(B)

Dividends with Record Dates on or before March 31, 2016 and Effective Dates after March 31, 2016

The following matters relating to dividends are planned to be brought up at the Annual General Meeting of Shareholders scheduled to be held on June 29, 2016.

Date of approval

(scheduled)

Type of stock

Total Dividends
(in millions of
yen)

Source of

dividends

Dividend

per share

(¥)

Dividend

record date

Effective

date

Annual General Meeting of Shareholders on June 29, 2016 (tentative)

Common stock

124,116

Retained

earnings

March 31,
2016

June 29,
2016

Mitsubishi UFJ Financial Group, Inc.

(Consolidated Statements of Cash Flows)

The difference between “cash and cash equivalents” and items presented on the consolidated balance sheet

As of March 31, 2016


Cash and due from banks on the consolidated balance sheet:	¥ 49,158,293 million
Time deposits and negotiable certificates of deposit in other banks:	(¥30,394,436 million	)

Cash and cash equivalents:	¥ 18,763,856 million

Mitsubishi UFJ Financial Group, Inc.

(Financial Instruments)

Disclosure on the Fair Value and Other Matters of Financial Instruments

(1)	The following table summarizes the amount stated on the consolidated balance sheet and the fair value of financial instruments as of March 31, 2016 together with their differences.

Note that the following table does not include non-listed equity securities and certain other securities of which fair value is extremely difficult to determine.


	(in millions of yen)
	Amount on consolidated balance sheet			Fair value		Difference
(1) Cash and due from banks		49,158,293			49,158,293		—
(2) Call loans and bills bought		660,015			660,015		—
(3) Receivables under resale agreements		7,466,633			7,466,633		—
(4) Receivables under securities borrowing transactions		6,041,983			6,041,983		—
(5) Monetary claims bought (*1)		4,733,393			4,730,669		(2,723	)
(6) Trading assets		4,569,638			4,569,638		—
(7) Money held in trust		679,678			679,243		(435	)
(8) Securities
Debt securities being held to maturity		2,334,278			2,399,033		64,754
Other securities		64,843,522			64,843,522		—
(9) Loans and bills discounted		113,756,325
Allowance for credit losses (*1)		(921,546	)

		112,834,779			114,507,040		1,672,261

(10) Foreign exchanges (*1)		1,792,888			1,792,888		—

Total assets		255,115,104			256,848,961		1,733,857

(1) Deposits		160,965,056			161,003,509		38,452
(2) Negotiable certificates of deposit		11,591,578			11,596,148		4,569
(3) Call money and bills sold		1,360,238			1,360,238		—
(4) Payables under repurchase agreements		23,515,240			23,515,240		—
(5) Payables under securities lending transactions		4,710,407			4,710,407		—
(6) Commercial papers		2,292,282			2,292,282		—
(7) Trading liabilities		1,655,277			1,655,277		—
(8) Borrowed money		12,482,277			12,527,811		45,533
(9) Foreign exchanges		2,054,937			2,054,937		—
(10) Short-term bonds payable		752,492			752,492		—
(11) Bonds payable		9,190,542			9,342,105		151,563
(12) Due to trust accounts		13,296,033			13,296,033		—

Total liabilities		243,866,364			244,106,483		240,118

Derivative transactions (*2)
Activities not qualifying for hedge accounting		345,179			345,179		—
Activities qualifying for hedge accounting		513,695			513,695		—

Total derivative transactions		858,875			858,875		—

(*1)	General and specific reserves for credit losses corresponding to loans are deducted. However, with respect to items other than loans, the amount stated on the consolidated balance sheet is shown since the amount of reserve for credit losses corresponding to these items is insignificant.

(*2)	Derivative transactions in trading assets and liabilities as well as other assets and liabilities are shown together. Assets and liabilities arising from derivative transactions are presented on a net basis.

(2)

The following table summarizes financial instruments on the consolidated balance sheet whose fair value is extremely difficult to estimate. These securities are not included in the amount presented under the line item “Assets – (8) Other securities” in the table summarizing fair value of financial instruments.


	(in millions of yen)
Category	Carrying amount
(1) Non-listed equity securities (1) (2)		196,345
(2) Investments in partnerships and others (2) (3)		59,513
(3) Others (*2)		966
Total		256,825

(*1)

Non-listed equity securities do not carry quoted market prices. Since it is extremely difficult to estimate the fair value of these securities, their fair value is not disclosed.

(*2)

With respect to non-listed equity securities, an impairment loss of ¥15,378 million was recorded in the current fiscal year.

(*3)

Investments in partnerships and others mainly include silent partnerships and investment partnerships and other partnerships, and they do not carry quoted market prices. Since it is extremely difficult to estimate the fair value of these securities, their fair value is not disclosed.

Mitsubishi UFJ Financial Group, Inc.

(Securities)

In addition to “Securities” on the consolidated balance sheet, the figures in the following tables include trading account securities, securities related to trading transactions and short-term corporate bonds classified as “Trading assets,” negotiable certificates of deposit in “Cash and due from banks” and beneficiary certificates of commodities investment trusts in “Monetary claims bought” and others.

1. Trading Securities (as of March 31, 2016)


	(in millions of yen)
	Net unrealized gains (losses) recorded on the consolidated statement of income during the current fiscal year
Trading securities		4,196

2. Debt Securities Being Held to Maturity (as of March 31, 2016)


	(in millions of yen)
	Type of securities	Amount on consolidated balance sheet		Fair value		Difference
Securities of which the fair value exceeds the amount recorded on the consolidated balance sheet	Domestic bonds		1,101,107		1,159,115		58,008
	Government bonds		1,101,107		1,159,115		58,008
	Municipal bonds		—		—		—
	Corporate bonds		—		—		—
	Other securities		1,157,524		1,179,101		21,576
	Foreign bonds		714,485		727,290		12,805
	Other		443,039		451,810		8,771
	Subtotal		2,258,631		2,338,216		79,584
Securities of which the fair value does not exceed the amount recorded on the consolidated balance sheet	Domestic bonds		—		—		—
	Government bonds		—		—		—
	Municipal bonds		—		—		—
	Corporate bonds		—		—		—
	Other securities		1,627,607		1,612,541		(15,066	)
	Foreign bonds		518,685		512,627		(6,058	)
	Other		1,108,922		1,099,914		(9,007	)
	Subtotal		1,627,607		1,612,541		(15,066	)
Total			3,886,239		3,950,758		64,518

Mitsubishi UFJ Financial Group, Inc.

3. Other Securities (as of March 31, 2016)


	(in millions of yen)
	Type of securities	Amount on consolidated balance sheet		Acquisition cost		Difference
Securities of which the fair value exceeds the acquisition cost	Domestic equity securities		4,470,335		2,174,567		2,295,767
	Domestic bonds		25,972,881		25,251,159		721,722
	Government bonds		23,143,622		22,511,489		632,132
	Municipal bonds		412,716		401,093		11,623
	Corporate bonds		2,416,542		2,338,575		77,966
	Other securities		24,976,085		24,287,079		689,005
	Foreign equity securities		92,567		57,122		35,445
	Foreign bonds		23,029,536		22,484,665		544,870
	Other		1,853,981		1,745,292		108,689
	Subtotal		55,419,301		51,712,806		3,706,495
Securities of which the fair value does not exceed the acquisition cost	Domestic equity securities		402,877		493,219		(90,342	)
	Domestic bonds		4,349,610		4,353,085		(3,475	)
	Government bonds		4,112,375		4,112,607		(231	)
	Municipal bonds		36,613		36,697		(84	)
	Corporate bonds		200,621		203,780		(3,159	)
	Other securities		5,346,690		5,474,071		(127,380	)
	Foreign equity securities		56,509		68,134		(11,624	)
	Foreign bonds		3,620,897		3,654,781		(33,883	)
	Other		1,669,284		1,751,156		(81,872	)
	Subtotal		10,099,178		10,320,377		(221,198	)
Total			65,518,480		62,033,183		3,485,297

(Note)

The total difference amount shown in the table above includes ¥5,480 million revaluation losses of securities by application of the fair value hedge accounting method.

Mitsubishi UFJ Financial Group, Inc.

4.	Other Securities Sold during the Current Fiscal Year (from April 1, 2015 to March 31, 2016)


	(in millions of yen)
	Amount sold		Gains on sales		Losses on sales
Domestic equity securities		226,737		109,614		1,846
Domestic bonds		41,274,799		123,202		29,464
Government bonds		41,035,107		121,845		29,234
Municipal bonds		68,124		293		107
Corporate bonds		171,568		1,063		122
Other securities		18,141,520		183,499		130,113
Foreign equity securities		13,692		1,066		1,164
Foreign bonds		16,918,883		142,276		102,273
Other		1,208,943		40,156		26,674
Total		59,643,057		416,315		161,424

5.	Securities Incurred Impairment Losses

Securities other than those held for trading purposes and investment in affiliates (excluding certain securities of which fair value is extremely difficult to determine) are subject to write-downs when their fair value has been impaired considerably and it is not probable that the value will recover to the acquisition cost as of the end of the current fiscal year. In such case, the fair value is recorded on the consolidated balance sheet and the difference between fair value and acquisition cost is recognized as losses for the fiscal year (referred to as “impairment losses”).

For the current fiscal year, impairment losses were ¥10,351 million consisting of ¥ 10,063 million of impairment losses on equity securities and ¥ 287 million of impairment losses on bonds and other securities in which securities whose fair value was extremely difficult to estimate were included.

“Considerable decline in fair value” was determined based on the classification of issuers in accordance with the internal standards for self-assessment of asset quality as follows:

Bankrupt, Substantially bankrupt or Potentially bankrupt issuers:

Fair value is lower than acquisition cost.

Issuers requiring close monitoring:

Fair value has declined 30% or more from acquisition cost.

Other issuers:

Fair value has declined 50% or more from acquisition cost.

“Bankrupt issuers” mean issuers who have entered into bankruptcy, special liquidation proceedings or similar legal proceedings or whose notes have been dishonored and suspended from processing through clearing houses. “Substantially bankrupt issuers” mean issuers who are not legally or formally bankrupt but are regarded as substantially in a similar condition. “Potentially bankrupt issuers” mean issuers who are not yet legally or formally bankrupt but deemed to have a high possibility of becoming bankrupt. “Issuers requiring close monitoring” mean issuers who are financially weak and under close monitoring conducted by MUFG’s subsidiaries. “Other issuers” mean issuers who do not correspond to any of the four categories of issuers mentioned above.

Mitsubishi UFJ Financial Group, Inc.

(Money Held in Trust)

1.	Money Held in Trust for Trading Purpose (as of March 31, 2016)

2.	Money Held in Trust Being Held to Maturity (as of March 31, 2016)


	(in millions of yen)
	(a) Amount on consolidated balance sheet		(b) Fair value		Difference (b)-(a)		Money held in trust with respect to which (b) exceeds (a)		Money held in trust with respect to which (b) does not exceed (a)
Money held in trust being held to maturity		46,266		46,761		494		494		—

(Note)

“Money held in trust with respect to which (b) exceeds (a)” and “Money held in trust with respect to which (b) does not exceed (a)” show the breakdown of the difference between (a) and (b).

3.	Money Held in Trust not for Trading Purpose or Being Held to Maturity (as of March 31, 2016)


	(in millions of yen)
	(a) Amount on consolidated balance sheet		(b) Acquisition cost		Difference (a)-(b)		Money held in trust with respect to which (a) exceeds (b)		Money held in trust with respect to which (a) does not exceed (b)
Money held in trust not for trading purpose or being held to maturity		563,215		561,853		1,361		1,361		—

(Note)

“Money held in trust with respect to which (a) exceeds (b)” and “Money held in trust with respect to which (a) does not exceed (b)” show the breakdown of the difference between (a) and (b).

(Net Unrealized Gains (Losses) on Other Securities)

Detailed information regarding net unrealized gains (losses) on other securities (as of March 31, 2016)


	(in millions of yen)
Net unrealized gains (losses) on other securities		3,473,305
Other securities		3,499,436
Money held in trust not for trading purpose or being held to maturity		1,361
Reclassification from “Other securities” to “Debt securities being held to maturity”		(27,492	)
Deferred tax liabilities		(1,011,562	)
Net unrealized gains (losses) on other securities, net of deferred tax liabilities (before MUFG’s ownership share of affiliates’ unrealized gains (losses) adjustments)		2,461,743
Non-controlling interests		9,785
MUFG’s ownership share of affiliates’ unrealized gains (losses) on other securities		15,098
Total		2,486,627


(Notes)		(1) “Net unrealized gains (losses) on other securities” shown in the above table excluded ¥5,480 million revaluation losses of securities by application of the fair value hedge accounting method, which were recorded in current earnings.
		(2) “Net unrealized gains (losses) on other securities” shown in the above table included ¥8,659 million of unrealized gains on securities in investment limited partnerships.

Mitsubishi UFJ Financial Group, Inc.

(Segment Information)

1.	Information regarding the Amounts of Ordinary Income, Ordinary Profits (Losses), Assets and other items by Segment

For the Fiscal Year Ended March 31, 2016


	(in millions of yen)
	The Bank of Tokyo- Mitsubishi UFJ, Ltd.		Mitsubishi UFJ Trust and Banking Corporation		Mitsubishi UFJ Securities Holdings Co., Ltd.		Consumer Finance Subsidiaries			Others			Total		Adjustments			Amount recorded in the consolidated financial statements
Ordinary income		4,033,796		728,186		487,969		509,022			677,339			6,436,315		(721,895	)		5,714,419
Interest income		2,323,774		237,123		38,315		196,460			644,809			3,440,483		(671,234	)		2,769,248
Investment gains on equity method		25,000		11,020		19,578		195			—			55,794		174,621			230,415
Ordinary income from customers		3,906,856		714,368		411,727		487,845			193,621			5,714,419		—			5,714,419
Ordinary income from internal transactions		126,939		13,818		76,242		21,176			483,718			721,895		(721,895	)		—

Segment income (loss)		685,835		160,919		41,926		(26,307	)		608,171			1,470,546		(519,143	)		951,402

Segment assets		222,797,387		45,685,976		31,021,997		4,249,166			13,344,284			317,098,811		(18,795,913	)		298,302,898

Other items
Depreciation		212,656		32,288		20,794		25,256			2,452			293,449		5,077			298,527
Amortization of goodwill		15,943		1,049		2,077		984			—			20,055		(3,124	)		16,931
Interest expenses		535,643		83,767		30,912		20,010			32,153			702,486		(46,751	)		655,735
Extraordinary gains		36,950		81		—		8			—			37,040		(15,723	)		21,316
Extraordinary losses		21,247		2,677		3,596		1,919			91			29,532		32,501			62,033
Impairment losses on fixed assets		11,011		1,605		710		6			81			13,415		—			13,415
Income tax expenses		350,207		66,095		33,329		19,981			(2,590	)		467,024		(6,820	)		460,204
Unamortized balance of goodwill		258,760		20,520		37,320		6,459			—			323,061		(44,432	)		278,628
Investment to companies accounted for under the equity method		282,910		139,749		251,025		5,016			823,721			1,502,423		1,086,866			2,589,290
Increases in tangible and intangible fixed assets		223,441		51,035		48,147		28,606			5,938			357,169		—			357,169


(Notes)	(1)	Ordinary income, interest income and interest expenses are presented, respectively, in lieu of net sales, interest on deposits and interest on borrowings of the companies in non-banking industries.
	(2)	“Others” includes MUFG.
	(3)	Segment income for “Others” includes ¥574,251 million of dividends from MUFG’s subsidiaries and affiliates.
	(4)	Interest income adjustments include elimination of the dividends from affiliates recorded by MUFG.
	(5)	Segment income (loss) adjustments include minus ¥721,513 million elimination of internal transactions, as well as ¥202,369 million comprising investment gains (losses) on equity method, amortization of goodwill, tax expenses, and profits attributable to non-controlling interests that are not attributable to specific segments.
	(6)	Segment assets adjustments are primarily elimination of assets and liabilities between segments.
	(7)	Adjustments for extraordinary losses include losses on change in equity
	(8)	Segment income (loss) is reconciled to profits attributable to owners of parent in the consolidated statement of income.

Mitsubishi UFJ Financial Group, Inc.

(Per Share Information)


	For the fiscal year ended March 31, 2016
Net assets per common share		¥1,121.06
Basic earnings per common share		¥68.51
Diluted earnings per common share		¥68.17


(Notes)		(1) Basis for computing basic earnings per common share and diluted earnings per common share is as follows:


		For the fiscal year ended March 31, 2016
Basic earnings per common share
Profits attributable to owners of parent	million yen	951,402
Amounts not attributable to common shareholders	million yen	—
Profits attributable to common shareholders of parent	million yen	951,402
Average number of common share outstanding for the fiscal period	thousand shares	13,886,503
Diluted earnings per common share
Adjustments in profits attributable to owners of parent	million yen	(3,539)
Adjustments made to reflect dilutive shares of consolidated subsidiaries and others	million yen	(3,539)
Increase in common share	thousand shares	17,474
Subscription rights to shares	thousand shares	17,474
Antidilutive securities which were not included in the calculation of diluted earnings per common share		Subscription rights to shares of affiliates accounted for under the equity method: Morgan Stanley Stock options - 11 million units as of December 31, 2015

(2) Basis for computing net assets per common share is as follows:


		For the fiscal year ended March 31, 2016
Total net assets	million yen	17,386,769
Amounts deducted from total net assets	million yen	1,928,799
Subscription rights to shares	million yen	8,260
Non-controlling interests	million yen	1,920,538
Net assets attributable to common shareholders at the end of the fiscal period	million yen	15,457,970
Number of common stock outstanding at the end of the fiscal period (excluding treasury stock)	thousand shares	13,788,598

Mitsubishi UFJ Financial Group, Inc.

(Significant Subsequent Events)

(Share Acquisition of Security Bank)

The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), a consolidated subsidiary of MUFG, has concluded the Subscription Agreement with Security Bank Corporation (Security Bank), a leading commercial bank in the Philippines on January 14, 2016, and on April 1, 2016, BTMU acquired 20.0% of Security Bank’s newly issued common shares and preferred shares and appointed 2 directors of Security Bank’s Board of Directors (BOD), and Security Bank became an equity method affiliate of BTMU.

1.	Outline of Share Acquisition


(1) Total number of shares acquired:		150,707,778shares of common shares

		200,000,000shares of preferred shares

(2) Acquisition rate:		20.0%of Security Bank’s common shares and preferred shares with voting rights

(3) Acquisition Price:		PHP 245 per common share

		PHP 0.1 per preferred share

(4) Investment Amount:		PHP 36,943 million

(5) Board Representation:		BTMUhas already appointed 2 directors to the Security Bank’s BOD

2.	Outline of Business Alliance

Leveraging both banks’ expertise and customer base, BTMU will enhance its services offered to the enlarged customer base in the Philippines through promoting the collaboration in the areas described below:

(1)

Work-site business to Japanese corporate employees

(2)

Trade Finance

(3)

Project Finance

(4)

Reciprocal long-term funding support

(5)

Capture Japan-related business opportunities including large-size projects Japanese corporates are engaged in

(6)

Exchange of knowledge and technological expertise

(7)

Explore other collaboration areas between MUFG’s key subsidiaries/affiliates companies, including leasing, securities, and asset management.

3.	Overview of Security Bank


(1) Name:		SecurityBank Corporation

(2) Type of business:		CommercialBank

(3) Year of establishment:		1951

(4) Headquarters:		ManilaCity, Republic of the Philippines

(5) Representative:		Mr. Alfonso L. Salcedo, Jr. President and CEO

(6) Capital Stock:		PHP 6,089 million (as of September 30, 2015)

(7) Relationship with MUFG and BTMU:

MUFG and BTMU, on one hand, and Security Bank, on the other, do not have any capital, personal or transactional relationship that are required to be disclosed.



(8) Number of Employees:		4,014(as of December 31, 2014)

(9) Number of branches:		262 (as of January 13, 2016)

Mitsubishi UFJ Financial Group, Inc.

(10)

Business sizes (for the fiscal year ended December 31, 2015)


	(in millions of PHP)
Total operating income		18,308
Income before income tax		8,302
Profits attributable to owners of parent		7,536
Total assets		532,200
Net assets		53,214


(Notes)		(1) The amount of “Income before income tax” is the difference between “Total operating income” and “Operating expenses.”
		(2) The above figures are based on the Form 17-C of Security Bank prepared in accordance with the Securities Regulation Code of the Philippines.

Mitsubishi UFJ Financial Group, Inc.

(Capital and Business Alliance of Hitachi Capital)

MUFG and Mitsubishi UFJ Lease & Finance Company Limited (MUL), an affiliate accounted for under the equity method of MUFG, has concluded the Share Purchase Agreement to transfer common shares of Hitachi Capital Corporation (Hitachi Capital) held by Hitachi, Ltd. (Hitachi) on May 13, 2016 and the five companies, MUFG, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), a consolidated subsidiary of MUFG, MUL, Hitachi, and Hitachi Capital have agreed to execute a business alliance as follows. MUFG will acquire 23.0% of Hitachi Capital’s shares, subject to the execution of the definitive agreement on business alliance and approval of relevant regulatory authorities, and will appoint a director of Hitachi Capital’s Board of Directors (BOD). Hitachi Capital will become an equity method affiliate of MUFG.

1.	Outline of Capital Alliance


(1)	Acquisition structure:	MUFG will acquire 26,884,484 shares of Hitachi Capital’s
		common shares (23.0%) from Hitachi, the parent company of
		Hitachi Capital, through off-market trading and Hitachi
		Capital will become an equity method affiliate of MUFG.
		In addition, MUFG and MUL signed the
		Agreement on Capital Alliance with Hitachi Capital.

(2)	Acquisition Price:	JPY 3,400 in common shares

(3)	Acquisition Amount:	JPY 91,400 million

(4)	Implementation Date:	The transaction is expected to close in August 2016, subject
		to regulatory approval and other conditions precedents

(5)	Board Representation:	MUFG will appoint a director to the Hitachi Capital’s BOD

2.	Outline of Business Alliance

MUFG, BTMU, MUL, Hitachi, and Hitachi Capital will make a discussion on building an open financial platform, mainly operated by MUL and Hitachi Capital through promoting the collaboration, in order to provide support for infrastructure industry from financial perspective. The areas of main collaboration are as follows:

(1)

Environment and energy

(2)

Urban infrastructure and public facilities

(3)

Real estate

(4)

Overseas market mainly in the Americas, ASEAN, and China

3.	Overview of Hitachi Capital


(1)	Name:	Hitachi Capital Corporation

(2)	Type of business:	General leasing business

(3)	Year of establishment:	1957

(4)	Headquarters:	Nishi-Shimbashi Square, 3-1, Nishi Shimbashi 1-chome,
		Minato-ku, Tokyo

(5)	Representative:	Mr. Seiji Kawabe President and CEO

(6)	Capital Stock:	JPY 9,983 million (as of March 31, 2016)

(7)	Relationship with MUFG:

	MUFG and Hitachi Capital, on the other, do not have any capital, personal or transactional relationship that are required to be disclosed.

(8)	Number of Employees:	5,397 (consolidated, as of March 31, 2015)

Mitsubishi UFJ Financial Group, Inc.

(9)

Business sizes (for the fiscal year ended March 31, 2016)


	(in millions of JPY)
Gross profit		130,014
Adjusted operating income		45,230
Net income attributable to owners of the parent		32,694
Total assets		3,081,201
Total equity		347,559


(Notes)	(1)	The amount of “Adjusted operating income” is the difference between “Gross profit” and “Selling, general and administrative expenses.”
	(2)	The above figures are based on the consolidated earnings report of Hitachi Capital prepared in accordance with IFRS.

Mitsubishi UFJ Financial Group, Inc.

6. Non-consolidated Financial Statements

(1)	Non-consolidated Balance Sheets


(in millions of yen)	As of March 31, 2015			As of March 31, 2016
Assets:
Current assets:
Cash and due from banks		71,674			160,467
Prepaid expenses		45			117
Deferred tax assets		203			307
Accounts receivable		147,935			63,428
Others		2,249			5,947
Allowance for credit losses		(0	)		(1	)

Total current assets		222,109			230,267

Fixed assets:
Tangible fixed assets:
Buildings		22			21
Equipment and furniture		380			412

Total tangible fixed assets		402			433

Intangible fixed assets:
Trademarks		72			136
Software		8,302			9,207
Lease assets		59			38
Others		1			1

Total intangible fixed assets		8,436			9,384

Investments and other assets:
Investments in subsidiaries and affiliates		10,186,842			10,186,842
Long-term loans receivable from subsidiaries and affiliates		190,000			1,586,400
Deferred tax assets		38,412			30,523
Others		172			172
Allowance for credit losses		(114	)		(793	)

Total investments and other assets		10,415,313			11,803,145

Total fixed assets		10,424,152			11,812,962

Total assets		10,646,262			12,043,230

Mitsubishi UFJ Financial Group, Inc.


(in millions of yen)	As of March 31, 2015			As of March 31, 2016
Liabilities:
Current liabilities:
Short-term borrowings		1,824,447			1,703,000
Lease liabilities		21			20
Accounts payable		16,346			9,782
Accrued expenses		2,324			5,985
Income taxes payable		67			1,415
Deposits received		143			142
Reserve for bonuses		422			569
Reserve for bonuses to directors		51			105
Others		1			0

Total current liabilities		1,843,826			1,721,022

Fixed liabilities:
Bonds payable		440,500			1,798,024
Long-term borrowings		—			38,000
Long-term borrowings from subsidiaries and affiliates		3,938			3,826
Lease liabilities		34			14
Others		11			11

Total fixed liabilities		444,484			1,839,877

Total liabilities		2,288,311			3,560,900

Net assets:
Shareholders’ equity:
Capital stock		2,141,513			2,141,513
Capital surplus:
Capital reserve		2,141,524			2,141,524
Other capital surplus		1,470,006			1,468,824

Total capital surplus		3,611,530			3,610,348

Retained earnings:
Other retained earnings:
Other reserve		150,000			150,000
Earned surplus brought forward		2,682,257			2,976,603

Total retained earnings		2,832,257			3,126,603

Treasury stock		(100,147	)		(297,385	)

Total shareholders’ equity		8,485,153			8,581,079

Valuation and translation adjustments:
Net deferred gains (losses) on hedging instruments		(135,474	)		(107,010	)

Total valuation and translation adjustments		(135,474	)		(107,010	)

Subscription rights to shares		8,271			8,260

Total net assets		8,357,950			8,482,329

Total liabilities and net assets		10,646,262			12,043,230

Mitsubishi UFJ Financial Group, Inc.

(2)	Non-consolidated Statements of Income


(in millions of yen)	For the fiscal year ended March 31, 2015			For the fiscal year ended March 31, 2016
Operating income:
Dividends		563,746			563,953
Management fees from subsidiaries and affiliates		22,059			24,387

Total operating income		585,805			588,340

Operating expenses:
General and administrative expenses		21,411			23,655

Total operating expenses		21,411			23,655

Operating profits		564,394			564,684

Non-operating income:
Interest on deposits		413			8,043
Interest on securities		35			—
Dividends		15,524			10,298
Others		1,042			990

Total non-operating income		17,016			19,331

Non-operating expenses:
Interest on borrowings		13,117			13,701
Interest on bonds payable		15,063			18,410
Provision for allowance for credit losses		114			681
Bonds payable issuance cost		1,193			7,717
Others		230			436

Total non-operating expenses		29,719			40,946

Ordinary profits		551,691			543,069

Extraordinary losses:
Losses on retirement of fixed assets		53			7
Losses on impairment of fixed assets		—			81

Total extraordinary losses		53			88

Income before income taxes		551,637			542,980

Income taxes-current		(16,534	)		(2,307	)
Income taxes-deferred		14,771			(450	)

Total taxes		(1,762	)		(2,758	)

Net income		553,400			545,738

Mitsubishi UFJ Financial Group, Inc.

(3)	Non-consolidated Statements of Changes in Net Assets

For the fiscal year ended March 31, 2015


	(in millions of yen)
	Shareholders’ equity
	Capital stock			Capital surplus						Retained earnings
										Other retained earnings
				Capital reserve			Other capital surplus			Other reserve			Earned surplus brought forward
Balance at the beginning of the period		2,140,488			2,140,501			1,860,006			150,000			2,392,816
Changes during the period
Issuance of new shares-exercise of subscription rights to shares		1,024			1,023
Dividends from retained earnings														(263,959	)
Net income														553,400
Repurchase of treasury stock
Disposal of treasury stock								0
Retirement of treasury stock								(390,000	)
Net changes of items other than shareholders’ equity

Total changes during the period		1,024			1,023			(390,000	)		—			289,440

Balance at the end of the period		2,141,513			2,141,524			1,470,006			150,000			2,682,257


	(in millions of yen)
	Shareholders’ equity						Valuation and translation adjustments
	Treasury stock			Total shareholders’ equity			Net deferred gains (losses) on hedging instruments			Subscription rights to shares			Total net assets
Balance at the beginning of the period		(105	)		8,683,707			(69,224	)		8,732			8,623,215
Changes during the period
Issuance of new shares-exercise of subscription rights to shares					2,048									2,048
Dividends from retained earnings					(263,959	)								(263,959	)
Net income					553,400									553,400
Repurchase of treasury stock		(490,045	)		(490,045	)								(490,045	)
Disposal of treasury stock		2			2									2
Retirement of treasury stock		390,000			—									—
Net changes of items other than shareholders’ equity								(66,249	)		(461	)		(66,711	)

Total changes during the period		(100,042	)		(198,553	)		(66,249	)		(461	)		(265,264	)

Balance at the end of the period		(100,147	)		8,485,153			(135,474	)		8,271			8,357,950

Mitsubishi UFJ Financial Group, Inc.

For the fiscal year ended March 31, 2016


	(in millions of yen)
	Shareholders’ equity
	Capital stock			Capital surplus						Retained earnings
				Capital reserve			Other capital surplus			Other retained earnings
				Capital reserve			Other capital surplus			Other reserve			Earned surplus brought forward
Balance at the beginning of the period		2,141,513			2,141,524			1,470,006			150,000			2,682,257
Changes during the period
Dividends from retained earnings														(251,392	)
Net income														545,738
Repurchase of treasury stock
Disposal of treasury stock								(1,182	)
Net changes of items other than shareholders’ equity

Total changes during the period		—			—			(1,182	)		—			294,346

Balance at the end of the period		2,141,513			2,141,524			1,468,824			150,000			2,976,603


	(in millions of yen)
	Shareholders’ equity						Valuation and translation adjustments			Subscription rights to shares			Total net assets
	Treasury stock			Total shareholders’ equity			Net deferred gains (losses) on hedging instruments			Subscription rights to shares			Total net assets
Balance at the beginning of the period		(100,147	)		8,485,153			(135,474	)		8,271			8,357,950
Changes during the period
Dividends from retained earnings					(251,392	)								(251,392	)
Net income					545,738									545,738
Repurchase of treasury stock		(200,053	)		(200,053	)								(200,053	)
Disposal of treasury stock		2,815			1,633									1,633
Net changes of items other than shareholders’ equity								28,463			(10	)		28,453

Total changes during the period		(197,237	)		95,926			28,463			(10	)		124,379

Balance at the end of the period		(297,385	)		8,581,079			(107,010	)		8,260			8,482,329

Mitsubishi UFJ Financial Group, Inc.

Notes on Going-Concern Assumption

Not applicable

7. Other

(1)

Changes of Directors, Corporate Auditors and Executive Officers

Please refer to “Directors, Corporate Auditors and Executive Officers, Planned Changes and Candidates” posted on May 16, 2016 with regard to the changes of directors.

Selected Financial Information

under Japanese GAAP

For the fiscal year Ended March 31, 2016


Mitsubishi UFJ Financial Group, Inc.

Mitsubishi UFJ Financial Group, Inc.

[Contents]


1. Financial Results	[ MUFG Consolidated ]1[ BTMU and MUTB Combined ]234 [ BTMU Consolidated ][ BTMU Non-consolidated ] [ MUTB Consolidated ][ MUTB Non-consolidated ]	1

2. Average Interest Rate Spread	[ BTMU Non-consolidated ][ MUTB Non-consolidated ] [ BTMU and MUTB Combined ]	7

3. Notional Principal by the Remaining Life of the Interest Rate Swaps for Hedge-Accounting	[ MUFG Consolidated ][ BTMU Consolidated ] [ MUTB Consolidated ]	8

4. Securities	[ MUFG Consolidated ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ]	9

5. ROE	[ MUFG Consolidated ]	12

6. Risk-Adjusted Capital Ratio	[ MUFG Consolidated ][ BTMU Consolidated ] [ MUTB Consolidated ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ]	13

7. Risk-Monitored Loans	[ MUFG Consolidated ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ] [ MUTB Non-consolidated : Trust Account ]	14

8. Non Performing Loans Based on the Financial Reconstruction Law (the “FRL”)	[ BTMU and MUTB Combined including Trust Account ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ] [ MUTB Non-consolidated : Trust Account ]	18

9. Progress in Disposition of Problem Assets	[ BTMU Non-consolidated ] [ MUTB Non-consolidated including Trust Account ]	23

10. Loans Classified by Type of Industry, Domestic Consumer Loans, Domestic Loans to Small/Medium-Sized Companies and Proprietors	[ BTMU and MUTB Combined including Trust Accounts ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ] [ MUTB Non-consolidated : Trust Accounts ]	25

11. Overseas Loans	[ BTMU and MUTB Combined ]	29

12. Loans and Deposits	[ BTMU and MUTB Combined ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ]	30

13. Domestic Deposits	[ BTMU and MUTB Combined ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ]	31

14. Status of Deferred Tax Assets	[ BTMU Non-consolidated ][ MUTB Non-consolidated ]	32

15. Retirement Benefits	[ MUFG Consolidated ] [ BTMU Non-consolidated ][ MUTB Non-consolidated ]	34

(References)

1. Exposure to “Securitized Products and Related Investments”		37

2. Financial Statements	[ BTMU Non-consolidated ][ MUTB Non-consolidated ]	39

(*1)	“MUFG” means Mitsubishi UFJ Financial Group, Inc.

(*2)	“BTMU” means The Bank of Tokyo-Mitsubishi UFJ, Ltd.

(*3)	“MUTB” means Mitsubishi UFJ Trust and Banking Corporation.

(*4)	“BTMU and MUTB Combined” means simple sum of “BTMU” and “MUTB” without consolidation processes.

Mitsubishi UFJ Financial Group, Inc.

1. Financial Results

MUFG Consolidated


	(in millions of yen)
	For the fiscal year ended						Increase (Decrease) (A) - (B)
	March 31, 2016 (A)			March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Gross profits		4,143,202			4,229,501			(86,298	)
Gross profits before credit costs for trust accounts		4,143,202			4,229,030			(85,827	)
Net interest income		2,113,564			2,181,637			(68,072	)
Trust fees		117,046			111,916			5,130
Credit costs for trust accounts (1)		0			471			(470	)
Net fees and commissions		1,320,554			1,308,604			11,950
Net trading profits		306,354			352,950			(46,595	)
Net other business profits		285,682			274,393			11,288
Net gains (losses) on debt securities		132,928			115,162			17,766
General and administrative expenses		2,585,279			2,584,104			1,175
Amortization of goodwill		16,931			17,787			(856	)
Net business profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill		1,574,853			1,662,713			(87,859	)
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		1,557,922			1,644,925			(87,003	)
Provision for general allowance for credit losses (2)		175,712			(86,849	)		262,561
Net business profits*		1,733,635			1,558,547			175,087
Net non-recurring gains (losses)		(194,148	)		154,454			(348,602	)
Credit costs (3)		(491,503	)		(141,486	)		(350,016	)
Losses on loan write-offs		(143,946	)		(144,845	)		899
Provision for specific allowance for credit losses		(305,131	)		17,700			(322,832	)
Other credit costs		(42,425	)		(14,342	)		(28,083	)
Reversal of allowance for credit losses (4)		—			—			—
Reversal of reserve for contingent losses included in credit costs (5)		—			1,504			(1,504	)
Gains on loans written-off (6)		60,645			64,735			(4,089	)
Net gains (losses) on equity securities		88,306			93,109			(4,802	)
Gains on sales of equity securities		145,347			114,477			30,870
Losses on sales of equity securities		(31,656	)		(16,532	)		(15,124	)
Losses on write-down of equity securities		(25,384	)		(4,836	)		(20,548	)
Profits (losses) from investments in affiliates		230,415			159,637			70,778
Other non-recurring gains (losses)		(82,012	)		(23,045	)		(58,967	)

Ordinary profits		1,539,486			1,713,001			(173,515	)

Net extraordinary gains (losses)		(40,717	)		(98,244	)		57,527
Net gains (losses) on change in equity		(36,013	)		(23,648	)		(12,365	)
Settlement package		—			(37,097	)		37,097
Income before income taxes and others		1,498,769			1,614,757			(115,987	)
Income taxes-current		424,814			421,941			2,873
Income taxes-deferred		35,389			45,845			(10,455	)
Total taxes		460,204			467,786			(7,582	)
Profits		1,038,565			1,146,970			(108,405	)
Profits attributable to non-controlling interests		87,162			113,211			(26,048	)

Profits attributable to owners of parent		951,402			1,033,759			(82,356	)


Note:
* Net business profits = Banking subsidiaries’ net business profits + Other consolidated entities’ gross profits - Other consolidated entities’ general and administrative expenses - Other consolidated entities’ provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions

(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		(255,145	)		(161,624	)		(93,520	)

Number of consolidated subsidiaries		224			226			(2	)
Number of affiliated companies accounted for under the equity method		65			62			3

Mitsubishi UFJ Financial Group, Inc.

BTMU and MUTB Combined


	(in millions of yen)
	For the fiscal year ended						Increase (Decrease) (A) - (B)
	March 31, 2016 (A)			March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Gross profits		2,395,985			2,482,560			(86,575	)
Gross profits before credit costs for trust accounts		2,395,985			2,482,089			(86,104	)
Domestic gross profits		1,403,459			1,373,910			29,549
Net interest income		785,955			794,076			(8,121	)
Trust fees		90,917			86,728			4,188
Credit costs for trust accounts (1)		0			471			(470	)
Net fees and commissions		388,072			411,579			(23,506	)
Net trading profits		34,720			21,864			12,856
Net other business profits		103,793			59,660			44,133
Net gains (losses) on debt securities		93,105			47,521			45,584
Non-domestic gross profits		992,525			1,108,650			(116,124	)
Net interest income		540,512			614,482			(73,970	)
Net fees and commissions		214,689			200,104			14,584
Net trading profits		123,133			131,130			(7,997	)
Net other business profits		114,191			162,931			(48,740	)
Net gains (losses) on debt securities		29,423			62,193			(32,769	)
General and administrative expenses		1,314,796			1,360,202			(45,406	)
Personnel expenses		485,797			525,372			(39,575	)
Non-personnel expenses		756,043			757,409			(1,365	)
Taxes		72,955			77,421			(4,465	)
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		1,081,189			1,121,886			(40,697	)
Provision for general allowance for credit losses (2)		208,285			(96,146	)		304,432
Net business profits		1,289,474			1,026,211			263,263
Net non-recurring gains (losses)		(219,230	)		86,500			(305,730	)
Credit costs (3)		(332,201	)		1,410			(333,612	)
Losses on loan write-offs		(43,430	)		(40,366	)		(3,064	)
Provision for specific allowance for credit losses		(248,863	)		56,970			(305,834	)
Other credit costs		(39,907	)		(15,193	)		(24,714	)
Reversal of allowance for credit losses (4)		—			—			—
Reversal of reserve for contingent losses included in credit costs (5)		36			4,259			(4,223	)
Gains on loans written-off (6)		20,122			18,854			1,267
Net gains (losses) on equity securities		76,933			63,059			13,873
Gains on sales of equity securities		134,500			83,418			51,082
Losses on sales of equity securities		(32,994	)		(14,482	)		(18,511	)
Losses on write-down of equity securities		(24,573	)		(5,875	)		(18,697	)
Other non-recurring gains (losses)		15,879			(1,083	)		16,963

Ordinary profits		1,070,243			1,112,711			(42,467	)

Net extraordinary gains (losses)		33,071			(51,038	)		84,109
Net gains (losses) on disposition of fixed assets		9,387			(5,014	)		14,401
Losses on impairment of fixed assets		(11,100	)		(8,926	)		(2,173	)
Gains on sales of equity securities of subsidiaries		18,319			—			18,319
Dividends from foreign subsidiary due to the organizational restructuring		14,467			—			14,467
Settlement package		—			(37,097	)		37,097
Income before income taxes		1,103,314			1,061,672			41,642
Income taxes-current		314,662			332,121			(17,458	)
Income taxes-deferred		42,603			17,015			25,588
Total taxes		357,266			349,137			8,129

Net income		746,048			712,535			33,512


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		(103,757	)		(71,151	)		(32,606	)

Mitsubishi UFJ Financial Group, Inc.

BTMU Consolidated


	(in millions of yen)
	For the fiscal year ended						Increase (Decrease) (A) - (B)
	March 31, 2016 (A)			March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Gross profits		2,932,824			3,009,471			(76,646	)
Net interest income		1,788,159			1,872,860			(84,701	)
Trust fees		13,150			12,562			588
Net fees and commissions		717,796			732,803			(15,007	)
Net trading profits		135,629			149,311			(13,682	)
Net other business profits		278,088			241,932			36,155
Net gains (losses) on debt securities		116,010			119,275			(3,264	)
General and administrative expenses		1,743,302			1,780,970			(37,668	)
Amortization of goodwill		15,943			16,920			(976	)
Net business profits before provision for general allowance for credit losses and amortization of goodwill		1,205,466			1,245,420			(39,954	)
Net business profits before provision for general allowance for credit losses		1,189,522			1,228,500			(38,977	)
Provision for general allowance for credit losses (1)		169,662			(83,180	)		252,843
Net business profits*		1,359,184			1,145,319			213,865
Net non-recurring gains (losses)		(275,483	)		75,880			(351,364	)
Credit costs (2)		(413,323	)		(78,253	)		(335,069	)
Losses on loan write-offs		(82,670	)		(90,946	)		8,276
Provision for specific allowance for credit losses		(288,056	)		26,712			(314,768	)
Other credit costs		(42,597	)		(14,019	)		(28,577	)
Reversal of allowance for credit losses (3)		—			—			—
Reversal of reserve for contingent losses included in credit costs (4)		—			1,039			(1,039	)
Gains on loans written-off (5)		39,170			43,900			(4,730	)
Net gains (losses) on equity securities		73,973			62,070			11,903
Gains on sales of equity securities		126,056			77,253			48,802
Losses on sales of equity securities		(28,831	)		(11,461	)		(17,369	)
Losses on write-down of equity securities		(23,252	)		(3,722	)		(19,529	)
Profits (losses) from investments in affiliates		25,000			24,691			308
Other non-recurring gains (losses)		(303	)		22,431			(22,735	)

Ordinary profits		1,083,701			1,221,200			(137,498	)

Net extraordinary gains (losses)		15,702			(68,299	)		84,002
Net gains (losses) on disposition of fixed assets		11,006			(1,276	)		12,283
Losses on impairment of fixed assets		(11,011	)		(4,249	)		(6,761	)
Net gains (losses) on sales of shares of subsidiaries		15,595			(25,151	)		40,746
Settlement package		—			(37,097	)		37,097
Income before income taxes and others		1,099,404			1,152,900			(53,496	)
Income taxes-current		322,969			327,545			(4,575	)
Income taxes-deferred		27,237			19,690			7,547
Total taxes		350,207			347,236			2,971
Profits		749,196			805,663			(56,467	)
Profits attributable to non-controlling interests		63,360			74,041			(10,680	)

Profits attributable to owners of parent		685,835			731,622			(45,786	)


Note:
* Netbusiness profits = Net business profits of BTMU + Other consolidated entities’ gross profits - Other consolidated entities’ general and administrative expenses - Other consolidated entities’ provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions

(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)		(204,490	)		(116,493	)		(87,997	)

Number of consolidated subsidiaries		128			130			(2	)
Number of affiliated companies accounted for under the equity method		58			58			—

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated


	(in millions of yen)
	For the fiscal year ended						Increase (Decrease) (A) - (B)
	March 31, 2016 (A)			March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Gross profits		2,017,254			2,107,430			(90,175	)
Domestic gross profits		1,091,206			1,097,286			(6,079	)
Net interest income		701,264			711,957			(10,692	)
Net fees and commissions		288,222			315,053			(26,831	)
Net trading profits		(1,672	)		(5,700	)		4,027
Net other business profits		103,392			75,974			27,417
Net gains (losses) on debt securities		84,927			58,753			26,173
Non-domestic gross profits		926,048			1,010,144			(84,095	)
Net interest income		461,266			524,537			(63,271	)
Net fees and commissions		209,732			198,351			11,380
Net trading profits		138,509			133,322			5,187
Net other business profits		116,540			153,932			(37,391	)
Net gains (losses) on debt securities		22,565			58,153			(35,588	)
General and administrative expenses		1,129,145			1,175,990			(46,845	)
Personnel expenses		415,730			455,664			(39,934	)
Non-personnel expenses		648,506			651,529			(3,022	)
Amortization of goodwill		293			298			(4	)
Taxes		64,907			68,796			(3,888	)
Net business profits before provision for general allowance for credit losses and amortization of goodwill		888,403			931,738			(43,334	)
Net business profits before provision for general allowance for credit losses		888,109			931,439			(43,330	)
Provision for general allowance for credit losses (1)		202,639			(92,159	)		294,799
Net business profits		1,090,749			839,280			251,469
Net non-recurring gains (losses)		(227,013	)		63,352			(290,365	)
Credit costs (2)		(325,772	)		(136	)		(325,636	)
Losses on loan write-offs		(43,410	)		(40,251	)		(3,158	)
Provision for specific allowance for credit losses		(242,455	)		54,984			(297,440	)
Other credit costs		(39,907	)		(14,870	)		(25,037	)
Reversal of allowance for credit losses (3)		—			—			—
Reversal of reserve for contingent losses included in credit costs (4)		—			3,736			(3,736	)
Gains on loans written-off (5)		19,661			17,847			1,814
Net gains (losses) on equity securities		67,816			49,000			18,816
Gains on sales of equity securities		117,940			64,752			53,188
Losses on sales of equity securities		(27,538	)		(10,316	)		(17,222	)
Losses on write-down of equity securities		(22,585	)		(5,436	)		(17,149	)
Other non-recurring gains (losses)		11,281			(7,094	)		18,376

Ordinary profits		863,736			902,632			(38,896	)

Net extraordinary gains (losses)		20,966			(42,369	)		63,335
Net gains (losses) on disposition of fixed assets		10,188			(1,800	)		11,989
Losses on impairment of fixed assets		(9,539	)		(3,470	)		(6,068	)
Gains on sales of equity securities of subsidiaries		18,319			—			18,319
Settlement package		—			(37,097	)		37,097
Income before income taxes		884,702			860,263			24,438
Income taxes-current		262,781			269,709			(6,928	)
Income taxes-deferred		35,854			18,775			17,078
Total taxes		298,635			288,485			10,150

Net income		586,066			571,778			14,288


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)		(103,471	)		(70,712	)		(32,758	)

Mitsubishi UFJ Financial Group, Inc.

MUTB Consolidated


	(in millions of yen)
	For the fiscal year ended						Increase (Decrease) (A) - (B)
	March 31, 2016 (A)			March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Gross profits		480,237			460,643			19,593
Gross profits before credit costs for trust accounts		480,236			460,171			20,064
Trust fees		104,043			99,625			4,417
Trust fees before credit costs for trust accounts		104,042			99,154			4,888
Money trusts fees (Jointly operated designated money trusts before credit costs for trust account)		11,777			7,584			4,193
Other trust fees		92,264			91,570			694
Credit costs for trust accounts (1)		0			471			(470	)
Net interest income		153,296			162,690			(9,394	)
Net fees and commissions		196,693			174,179			22,514
Net trading profits		25,808			30,034			(4,226	)
Net other business profits		395			(5,887	)		6,282
Net gains (losses) on debt securities		14,927			(7,192	)		22,120
General and administrative expenses		264,440			253,529			10,910
Amortization of goodwill		1,049			1,049			0
Net business profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill		216,846			207,691			9,154
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		215,796			206,642			9,154
Provision for general allowance for credit losses (2)		5,656			(4,024	)		9,681
Net business profits*		221,453			203,088			18,364
Net non-recurring gains (losses)		16,927			34,482			(17,555	)
Credit costs (3)		(6,507	)		1,491			(7,999	)
Losses on loan write-offs		(103	)		(158	)		55
Provision for specific allowance for credit losses		(6,406	)		1,972			(8,379	)
Other credit costs		2			(323	)		325
Reversal of allowance for credit losses (4)		—			—			—
Reversal of reserve for contingent losses included in credit costs (5)		36			522			(486	)
Gains on loans written-off (6)		500			1,049			(548	)
Net gains (losses) on equity securities		9,130			15,627			(6,497	)
Gains on sales of equity securities		16,573			20,279			(3,706	)
Losses on sales of equity securities		(5,455	)		(4,166	)		(1,289	)
Losses on write-down of equity securities		(1,987	)		(486	)		(1,501	)
Profits (losses) from investments in affiliates		11,020			11,583			(563	)
Other non-recurring gains (losses)		2,747			4,207			(1,459	)

Ordinary profits		238,380			237,570			809

Net extraordinary gains (losses)		(2,459	)		853			(3,312	)
Net gains (losses) on disposition of fixed assets		(853	)		(3,324	)		2,470
Losses on impairment of fixed assets		(1,605	)		(5,466	)		3,860
Gains on change in equity		—			9,643			(9,643	)
Income before income taxes and others		235,920			238,424			(2,503	)
Income taxes-current		63,529			73,636			(10,107	)
Income taxes-deferred		1,925			(3,796	)		5,721
Total taxes		65,454			69,840			(4,386	)
Profits		170,466			168,583			1,882
Profits attributable to non-controlling interests		10,882			8,810			2,072

Profits attributable to owners of parent		159,583			159,773			(190	)


Note:
* Netbusiness profits = Net business profits of MUTB + Other consolidated entities’ gross profits - Other consolidated entities’ general and administrative expenses - Other consolidated entities’ provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions

(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		(314	)		(489	)		175

Number of consolidated subsidiaries		56			54			2
Number of affiliated companies accounted for under the equity method		12			12			—

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated


	(in millions of yen)
	For the fiscal year ended						Increase (Decrease) (A) - (B)
	March 31, 2016 (A)			March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Gross profits		378,730			375,130			3,600
Gross profits before credit costs for trust accounts		378,730			374,659			4,071
Domestic gross profits		312,253			276,624			35,629
Trust fees		90,917			86,728			4,188
Trust fees before credit costs for trust accounts		90,917			86,257			4,659
Money trusts fees (Jointly operated designated money trusts before credit costs for trust account)		11,777			7,584			4,193
Other trust fees		79,139			78,673			466
Credit costs for trust accounts (1)		0			471			(470	)
Net interest income		84,690			82,119			2,571
Net fees and commissions		99,849			96,525			3,324
Net trading profits		36,393			27,564			8,829
Net other business profits		401			(16,314	)		16,715
Net gains (losses) on debt securities		8,178			(11,232	)		19,410
Non-domestic gross profits		66,477			98,506			(32,028	)
Net interest income		79,246			89,944			(10,698	)
Net fees and commissions		4,956			1,753			3,203
Net trading profits		(15,376	)		(2,191	)		(13,184	)
Net other business profits		(2,349	)		8,999			(11,348	)
Net gains (losses) on debt securities		6,858			4,039			2,818
General and administrative expenses		185,651			184,212			1,438
Personnel expenses		70,066			69,708			358
Non-personnel expenses		107,536			105,879			1,657
Taxes		8,047			8,624			(577	)
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		193,079			190,446			2,632
Provision for general allowance for credit losses (2)		5,645			(3,987	)		9,632
Net business profits		198,725			186,930			11,794
Net non-recurring gains (losses)		7,782			23,147			(15,365	)
Credit costs (3)		(6,428	)		1,547			(7,976	)
Losses on loan write-offs		(20	)		(115	)		94
Provision for specific allowance for credit losses		(6,408	)		1,985			(8,393	)
Other credit costs		0			(323	)		323
Reversal of allowance for credit losses (4)		—			—			—
Reversal of reserve for contingent losses included in credit costs (5)		36			522			(486	)
Gains on loans written-off (6)		460			1,007			(546	)
Net gains (losses) on equity securities		9,117			14,059			(4,942	)
Gains on sales of equity securities		16,559			18,665			(2,105	)
Losses on sales of equity securities		(5,455	)		(4,166	)		(1,289	)
Losses on write-down of equity securities		(1,987	)		(439	)		(1,547	)
Other non-recurring gains (losses)		4,597			6,010			(1,412	)

Ordinary profits		206,507			210,078			(3,570	)

Net extraordinary gains (losses)		12,104			(8,669	)		20,774
Net gains (losses) on disposition of fixed assets		(801	)		(3,213	)		2,412
Losses on impairment of fixed assets		(1,561	)		(5,455	)		3,894
Dividends from foreign subsidiary due to the organizational restructuring		14,467			—			14,467
Income before income taxes		218,612			201,408			17,203
Income taxes-current		51,881			62,411			(10,530	)
Income taxes-deferred		6,749			(1,760	)		8,509
Total taxes		58,630			60,651			(2,020	)

Net income		159,981			140,757			19,224


(Reference)
Total credit costs (1)+(2)+(3)+(4)+(5)+(6)		(286	)		(438	)		151

Mitsubishi UFJ Financial Group, Inc.

2. Average Interest Rate Spread

BTMU Non-consolidated


	(percentage per annum)
(Domestic business segment)	For the fiscal year ended March 31, 2016 (A)			Increase (Decrease) (A) - (B)			For the fiscal year ended March 31, 2015 (B)
Total average interest rate on interest-earning assets (a)		0.62			(0.03	)		0.65
Average interest rate on loans and bills discounted (b)		0.92			(0.09	)		1.02
Average interest rate on securities		0.75			0.17			0.57
Total average interest rate on interest-bearing liabilities (c) <including general and administrative expenses>		0.67			(0.04	)		0.72
Average interest rate on deposits and NCD (d)		0.02			(0.00	)		0.03
Average interest rate on other liabilities		0.20			0.03			0.17
Overall interest rate spread (a)-(c)		(0.04	)		0.01			(0.06	)
Interest rate spread (b)-(d)		0.90			(0.09	)		0.99

(After excluding loans to the Japanese government and governmental organizations)
Average interest rate on loans and bills discounted (e)		1.11			(0.08	)		1.20
Interest rate spread (e)-(d)		1.08			(0.07	)		1.16

MUTB Non-consolidated
	(percentage per annum)
(Domestic business segment)	For the fiscal year ended March 31, 2016 (A)			Increase (Decrease) (A) - (B)			For the fiscal year ended March 31, 2015 (B)
Total average interest rate on interest-earning assets (a)		0.53			(0.01	)		0.54
Average interest rate on loans and bills discounted (b)		0.67			(0.08	)		0.75
Average interest rate on securities		0.74			0.17			0.56
Total average interest rate on interest-bearing liabilities (c)		0.17			0.00			0.16
Average interest rate on deposits and NCD (d)		0.12			(0.00	)		0.13
Overall interest rate spread (a)-(c)		0.36			(0.01	)		0.37
Interest rate spread (b)-(d)		0.54			(0.07	)		0.61

(After excluding loans to the Japanese government and governmental organizations)
Average interest rate on loans and bills discounted (e)		0.67			(0.08	)		0.75
Interest rate spread (e)-(d)		0.54			(0.07	)		0.61

BTMU and MUTB Combined
	(percentage per annum)
(Domestic business segment)	For the fiscal year ended March 31, 2016 (A)			Increase (Decrease) (A) - (B)			For the fiscal year ended March 31, 2015 (B)
Average interest rate on loans and bills discounted (a)		0.89			(0.09	)		0.98
Average interest rate on deposits and NCD (b)		0.04			(0.00	)		0.04
Interest rate spread (a)-(b)		0.85			(0.08	)		0.94

(After excluding loans to the Japanese government and governmental organizations)
Average interest rate on loans and bills discounted (c)		1.04			(0.08	)		1.12
Interest rate spread (c)-(b)		1.00			(0.07	)		1.07

Mitsubishi UFJ Financial Group, Inc.

3. Notional Principal by the Remaining Life of the Interest Rate Swaps for Hedge-Accounting

MUFG Consolidated

(in billions of yen)

As of March 31, 2016

within 1 year

1 year to 5 years

over 5 years

Total

Receive-fix/pay-floater

1,647.1

6,803.7

11,075.4

19,526.3

Receive-floater/pay-fix

584.9

3,879.5

6,385.8

10,850.3

Receive-floater/pay-floater

—

Receive-fix/pay-fix

—

Total

2,232.1

10,683.3

17,461.2

30,376.7

BTMU Consolidated

(in billions of yen)

As of March 31, 2016

within 1 year

1 year to 5 years

over 5 years

Total

Receive-fix/pay-floater

903.6

5,354.2

10,225.4

16,483.3

Receive-floater/pay-fix

177.7

2,126.7

4,687.8

6,992.4

Receive-floater/pay-floater

—

Receive-fix/pay-fix

—

Total

1,081.4

7,481.0

14,913.3

23,475.8

MUTB Consolidated

(in billions of yen)

As of March 31, 2016

within 1 year

1 year to 5 years

over 5 years

Total

Receive-fix/pay-floater

743.5

1,449.5

850.0

3,043.0

Receive-floater/pay-fix

384.1

1,667.6

1,667.1

3,718.9

Receive-floater/pay-floater

—

Receive-fix/pay-fix

—

Total

1,127.6

3,117.1

2,517.1

6,761.9

Mitsubishi UFJ Financial Group, Inc.

4. Securities

MUFG Consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

Fair Value Information on Securities


	(in millions of yen)
	As of March 31, 2016									As of March 31, 2015
	Amount on consolidated balance sheet		Differences			Gains		Losses		Amount on consolidated balance sheet		Differences		Gains		Losses
Debt securities being held to maturity		3,886,239		64,518			79,584		15,066		4,133,677		53,728		59,081		5,352
Domestic bonds		1,101,107		58,008			58,008		—		1,126,212		14,556		16,091		1,535
Government bonds		1,101,107		58,008			58,008		—		1,126,212		14,556		16,091		1,535
Municipal bonds		—		—			—		—		—		—		—		—
Corporate bonds		—		—			—		—		—		—		—		—
Other		2,785,132		6,510			21,576		15,066		3,007,465		39,172		42,990		3,817
Foreign bonds		1,233,171		6,746			12,805		6,058		1,006,421		15,813		17,244		1,431
Other		1,551,961		(236	)		8,771		9,007		2,001,043		23,359		25,745		2,386

	(in millions of yen)
	As of March 31, 2016									As of March 31, 2015
	Amount on consolidated balance sheet		Differences			Gains		Losses		Amount on consolidated balance sheet		Differences		Gains		Losses
Other securities		65,518,480		3,485,297			3,706,495		221,198		69,336,270		4,133,200		4,244,272		111,071
Domestic equity securities		4,873,212		2,205,424			2,295,767		90,342		5,721,393		2,930,019		2,969,586		39,566
Domestic bonds		30,322,492		718,247			721,722		3,475		36,520,219		326,376		331,539		5,163
Government bonds		27,255,998		631,901			632,132		231		34,084,434		273,479		274,856		1,377
Municipal bonds		449,330		11,539			11,623		84		188,316		5,374		5,441		67
Corporate bonds		2,617,163		74,806			77,966		3,159		2,247,468		47,522		51,241		3,718
Other		30,322,776		561,624			689,005		127,380		27,094,657		876,804		943,146		66,341
Foreign equity securities		149,076		23,820			35,445		11,624		191,401		58,466		59,040		574
Foreign bonds		26,650,433		510,987			544,870		33,883		22,564,990		597,340		623,146		25,805
Other		3,523,265		26,816			108,689		81,872		4,338,265		220,996		260,958		39,961

Redemption schedule of other securities with maturities and debt securities being held to maturity
	(in millions of yen)
	As of March 31, 2016									As of March 31, 2015
	within 1 year		1 year to 5 years			5 years to 10 years		over 10 years		within 1 year		1 year to 5 years		5 years to 10 years		over 10 years
Domestic bonds		10,981,410		9,274,701			6,863,891		4,303,854		13,171,744		14,958,317		6,169,701		3,346,807
Government bonds		10,790,809		8,548,655			5,759,365		3,258,275		12,937,240		14,021,104		5,720,272		2,532,029
Municipal bonds		10,160		106,931			328,008		4,229		8,288		109,919		69,720		388
Corporate bonds		180,440		619,115			776,517		1,041,348		226,215		827,293		379,707		814,390
Other		3,449,249		10,424,437			9,930,271		6,671,410		3,205,730		8,992,502		8,998,103		6,001,088
Foreign bonds		3,377,182		9,871,390			8,424,741		6,192,264		2,897,339		8,048,236		7,581,013		5,023,170
Other		72,067		553,047			1,505,530		479,146		308,390		944,265		1,417,090		977,917
Total		14,430,659		19,699,139			16,794,162		10,975,265		16,377,474		23,950,819		15,167,804		9,347,895

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

Fair Value Information on Securities

(in millions of yen)

As of March 31, 2016

As of March 31, 2015

Amount on
balance sheet

Differences

Gains

Losses

Amount on
balance sheet

Differences

Gains

Losses

Debt securities being held to maturity

2,653,043

57,771

66,779

9,007

3,102,252

37,860

41,782

3,921

Stocks of subsidiaries and affiliates

843,460

(91,424

)

29,661

121,086

865,646

206,054

214,537

8,482

(in millions of yen)

As of March 31, 2016

As of March 31, 2015

Amount on
balance sheet

Differences

Gains

Losses

Amount on
balance sheet

Differences

Gains

Losses

Other securities

44,773,389

2,531,495

2,713,435

181,940

48,785,016

3,073,221

3,144,265

71,043

Domestic equity securities

3,943,763

1,661,719

1,751,653

89,934

4,673,946

2,291,397

2,329,749

38,351

Domestic bonds

23,353,550

619,996

621,020

1,024

29,967,153

275,064

277,934

2,870

Other

17,476,076

249,779

340,761

90,981

14,143,916

506,759

536,580

29,821

Foreign equity securities

142,546

18,227

29,916

11,688

178,531

53,595

53,975

380

Foreign bonds

15,024,229

279,857

285,357

5,500

10,872,292

352,571

357,787

5,215

Other

2,309,300

(48,305

)

25,487

73,792

3,093,093

100,591

124,817

24,225

Redemption schedule of other securities with maturities and debt securities being held to maturity

(in millions of yen)

As of March 31, 2016

As of March 31, 2015

within
1 year

1 year to
5 years

5 years to
10 years

over
10 years

within
1 year

1 year to
5 years

5 years to
10 years

over
10 years

Domestic bonds

9,503,563

5,596,113

5,325,107

4,029,848

12,326,240

10,215,947

5,198,489

3,327,684

Government bonds

9,377,044

4,996,212

4,581,169

3,029,462

12,140,028

9,488,185

4,809,644

2,515,940

Municipal bonds

10,160

106,842

292,183

329

8,288

109,795

69,720

348

Corporate bonds

116,358

493,058

451,754

1,000,056

177,923

617,966

319,124

811,396

Other

2,072,496

5,953,081

6,055,164

2,948,188

1,882,058

3,802,126

5,557,515

2,548,304

Foreign bonds

1,851,875

5,671,608

4,823,497

2,659,161

1,582,064

3,197,740

4,265,657

1,805,117

Other

220,621

281,472

1,231,667

289,026

299,994

604,385

1,291,857

743,186

Total

11,576,060

11,549,194

11,380,271

6,978,036

14,208,298

14,018,074

10,756,005

5,875,988

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

The tables include beneficiary rights to the trust in “Monetary claims bought” in addition to “Securities”.

Fair Value Information on Securities


	(in millions of yen)
	As of March 31, 2016								As of March 31, 2015
	Amount on balance sheet		Differences		Gains		Losses		Amount on balance sheet		Differences		Gains		Losses
Debt securities being held to maturity		—		—		—		—		24,978		54		54		—
Stocks of subsidiaries and affiliates		57,771		50,968		51,070		102		57,771		133,960		134,064		104

	(in millions of yen)
	As of March 31, 2016								As of March 31, 2015
	Amount on balance sheet		Differences		Gains		Losses		Amount on balance sheet		Differences		Gains		Losses
Other securities		17,108,424		873,305		899,752		26,447		16,903,411		966,807		988,212		21,404
Domestic equity securities		974,012		470,438		484,778		14,340		1,081,815		556,050		563,430		7,380
Domestic bonds		7,013,586		98,263		100,843		2,580		6,479,441		50,320		52,709		2,389
Other		9,120,825		304,604		314,131		9,526		9,342,154		360,436		372,071		11,634
Foreign equity securities		51		26		26		0		36		24		24		—
Foreign bonds		8,367,901		228,667		235,989		7,322		8,455,745		243,361		244,759		1,397
Other		752,872		75,910		78,114		2,204		886,372		117,050		127,287		10,236
Redemption schedule of other securities with maturities and debt securities being held to maturity
	(in millions of yen)
	As of March 31, 2016								As of March 31, 2015
	within 1 year		1 year to 5 years		5 years to 10 years		over 10 years		within 1 year		1 year to 5 years		5 years to 10 years		over 10 years
Domestic bonds		1,406,286		3,784,586		1,548,706		274,006		690,184		4,813,751		981,359		19,123
Government bonds		1,342,229		3,658,650		1,178,195		228,813		646,795		4,617,073		910,789		16,089
Municipal bonds		—		88		35,825		3,900		—		123		—		40
Corporate bonds		64,057		125,847		334,685		41,292		43,389		196,555		70,570		2,994
Other		809,569		3,407,239		3,072,071		1,445,720		633,296		4,060,046		2,863,534		1,276,777
Foreign bonds		774,774		3,145,573		3,021,564		1,425,989		632,681		3,739,713		2,822,844		1,260,506
Other		34,795		261,666		50,507		19,731		615		320,333		40,689		16,271
Total		2,215,856		7,191,826		4,620,778		1,719,726		1,323,481		8,873,798		3,844,893		1,295,900

Mitsubishi UFJ Financial Group, Inc.

5. ROE

MUFG Consolidated

(%)

For the fiscal year
ended
March 31, 2016
(A)

Increase
(Decrease)
(A) - (B)

For the fiscal year
ended
March 31, 2015
(B)

ROE

7.63

(1.11

)

8.74

Note:

ROE is computed as follows:

Profits attributable to owners of parent - Equivalent of annual dividends on nonconvertible preferred stocks

×100

{(Total shareholders’ equity at the beginning of the period - Number of nonconvertible preferred stocks at the beginning of the period × Issue price + Foreign currency translation adjustments at the beginning of the period) + (Total shareholders’ equity at the end of the period - Number of nonconvertible preferred stocks at the end of the period × Issue price + Foreign currency translation adjustments at the end of the period)} / 2

Mitsubishi UFJ Financial Group, Inc.

6. Risk-Adjusted Capital Ratio



MUFG Consolidated	(in billions of yen)
	As of March 31, 2016 Preliminary (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)			As of September 30, 2015
(1) Total capital ratio (4)/(7)		16.01	%		0.38	%		15.62	%		15.69	%
(2) Tier 1 capital ratio (5)/(7)		13.24	%		0.66	%		12.58	%		12.73	%
(3) Common Equity Tier 1 capital ratio (6)/(7)		11.63	%		0.53	%		11.09	%		11.23	%
(4) Total capital		17,941.8			389.4			17,552.3			17,562.8
(5) Tier 1 capital		14,839.2			708.9			14,130.3			14,254.1
(6) Common Equity Tier 1 capital		13,039.8			573.2			12,466.6			12,571.9
(7) Risk weighted assets		112,064.3			(250.9	)		112,315.2			111,925.3
(8) Required Capital (7)×8%		8,965.1			(20.0	)		8,985.2			8,954.0

BTMU Consolidated	(in billions of yen)
	As of March 31, 2016 Preliminary (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)			As of September 30, 2015
(1) Total capital ratio (4)/(7)		15.66	%		0.20	%		15.45	%		15.30	%
(2) Tier 1 capital ratio (5)/(7)		12.71	%		0.50	%		12.21	%		12.15	%
(3) Common Equity Tier 1 capital ratio (6)/(7)		11.08	%		0.30	%		10.77	%		10.70	%
(4) Total capital		14,013.2			282.5			13,730.7			13,622.3
(5) Tier 1 capital		11,375.2			526.3			10,848.8			10,821.3
(6) Common Equity Tier 1 capital		9,917.7			345.8			9,571.8			9,530.0
(7) Risk weighted assets		89,456.6			640.9			88,815.6			89,005.4
(8) Required Capital (7)×8%		7,156.5			51.2			7,105.2			7,120.4

MUTB Consolidated	(in billions of yen)
	As of March 31, 2016 Preliminary (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)			As of September 30, 2015
(1) Total capital ratio (4)/(7)		19.97	%		0.81	%		19.15	%		18.99	%
(2) Tier 1 capital ratio (5)/(7)		16.82	%		1.56	%		15.26	%		15.59	%
(3) Common Equity Tier 1 capital ratio (6)/(7)		16.01	%		1.30	%		14.70	%		15.08	%
(4) Total capital		2,371.0			34.3			2,336.7			2,280.1
(5) Tier 1 capital		1,996.6			135.1			1,861.4			1,871.5
(6) Common Equity Tier 1 capital		1,900.6			107.0			1,793.5			1,811.0
(7) Risk weighted assets		11,868.3			(328.7	)		12,197.0			12,001.8
(8) Required Capital (7)×8%		949.4			(26.2	)		975.7			960.1

BTMU Non-consolidated	(in billions of yen)
	As of March 31, 2016 Preliminary (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)			As of September 30, 2015
(1) Total capital ratio (4)/(7)		17.51	%		0.47	%		17.03	%		16.79	%
(2) Tier 1 capital ratio (5)/(7)		14.25	%		0.87	%		13.38	%		13.28	%
(3) Common Equity Tier 1 capital ratio (6)/(7)		12.30	%		0.54	%		11.76	%		11.67	%
(4) Total capital		12,833.3			366.3			12,466.9			12,365.0
(5) Tier 1 capital		10,446.7			654.8			9,791.8			9,777.6
(6) Common Equity Tier 1 capital		9,019.4			408.2			8,611.2			8,598.2
(7) Risk weighted assets		73,277.9			101.4			73,176.5			73,623.9
(8) Required Capital (7)×8%		5,862.2			8.1			5,854.1			5,889.9

MUTB Non-consolidated	(in billions of yen)
	As of March 31, 2016 Preliminary (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)			As of September 30, 2015
(1) Total capital ratio (4)/(7)		21.08	%		1.97	%		19.11	%		18.90	%
(2) Tier 1 capital ratio (5)/(7)		17.45	%		2.59	%		14.86	%		15.03	%
(3) Common Equity Tier 1 capital ratio (6)/(7)		16.58	%		2.27	%		14.31	%		14.53	%
(4) Total capital		2,358.7			39.7			2,318.9			2,239.7
(5) Tier 1 capital		1,952.9			149.3			1,803.5			1,781.4
(6) Common Equity Tier 1 capital		1,855.5			119.1			1,736.4			1,721.5
(7) Risk weighted assets		11,188.1			(945.8	)		12,133.9			11,846.9
(8) Required Capital (7)×8%		895.0			(75.6	)		970.7			947.7



Note:
(1) Risk-adjusted capital ratio of MUFG is computed in accordance with the Notification of the Financial Services Agency No.20, 2006. Risk-adjusted capital ratio of BTMU and MUTB are computed in accordance with the Notification of the Financial Services Agency No.19, 2006.

(2) The risk-adjusted capital ratios and other related amounts in the tables above as of September 30, 2015 and prior dates reflect corrections of errors discovered in the risk weighting applied to certain assets, mostly residential mortgage loans, and certain other adjustments made under Basel I standards to obtain amounts that were used for floor adjustments in determining the amounts of risk-weighted assets under Basel III standards.

Mitsubishi UFJ Financial Group, Inc.

7. Risk-Monitored Loans

MUFG Consolidated

(1) Risk-Monitored Loans


	(in millions of yen)
	As of March 31, 2016 (A)		% to total loans and bills discounted			As of March 31, 2015 (B)		% to total loans and bills discounted			Increase (Decrease) (A) - (B)			% to total loans and bills discounted
Loans to bankrupt borrowers		54,913		0.04	%		23,586		0.02	%		31,326			0.02	%
Non-accrual delinquent loans		1,110,576		0.97	%		811,478		0.74	%		299,098			0.23	%
Accruing loans contractually past due 3 months or more		51,620		0.04	%		51,034		0.04	%		585			(0.00	)%
Restructured loans		438,767		0.38	%		653,839		0.59	%		(215,072	)		(0.21	)%
Total risk monitored loans		1,655,877		1.45	%		1,539,939		1.40	%		115,938			0.04	%
Total loans and bills discounted		113,756,325					109,368,340					4,387,985

Written-off		397,076					478,168					(81,091	)

(2) Allowance for Credit Losses

	(in millions of yen)
	As of March 31, 2016 (A)		% to total risk monitored loans			As of March 31, 2015 (B)		% to total risk monitored loans			Increase (Decrease) (A) - (B)			% to total risk monitored loans
Allowance for credit losses		1,057,585		63.86	%		995,784		64.66	%		61,801			(0.79	)%
General allowance for credit losses		571,689					766,272					(194,583	)
Specific allowance for credit losses		485,577					228,297					257,280
Allowance for credit to specific foreign borrowers		318					1,214					(896	)

(3) Classification of Risk-Monitored Loans



Classified by Geographic Area	(in millions of yen)
	As of March 31, 2016 (A)		As of March 31, 2015 (B)		Increase (Decrease) (A) - (B)
Domestic		1,177,149		1,242,070		(64,921	)
Overseas		478,728		297,868		180,859
Asia		145,343		108,805		36,537
Indonesia		7,451		4,348		3,102
Singapore		18,414		1,082		17,332
Thailand		93,510		88,049		5,461
China		3,488		110		3,377
Other		22,477		15,214		7,263
Americas		199,432		100,784		98,648
Europe, Middle East and Other		133,952		88,279		45,672

Total		1,655,877		1,539,939		115,938


Classified by Industry	(in millions of yen)
	As of March 31, 2016 (A)		As of March 31, 2015 (B)		Increase (Decrease) (A) - (B)
Domestic		1,177,149		1,242,070		(64,921	)
Manufacturing		430,858		346,306		84,552
Construction		20,705		26,871		(6,165	)
Wholesale and retail		164,429		211,910		(47,481	)
Finance and insurance		1,466		5,681		(4,215	)
Real estate, goods rental and leasing		90,620		121,771		(31,151	)
Services		67,387		82,905		(15,517	)
Other industries		32,828		44,908		(12,080	)
Consumer		368,852		401,716		(32,863	)
Overseas		478,728		297,868		180,859
Financial institutions		14,361		8,496		5,865
Commercial and industrial		319,456		120,954		198,502
Other		144,910		168,418		(23,508	)

Total		1,655,877		1,539,939		115,938

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

(1) Risk-Monitored Loans


	(in millions of yen)
	As of March 31, 2016 (A)		% to total loans and bills discounted			As of March 31, 2015 (B)		% to total loans and bills discounted			Increase (Decrease) (A) - (B)			% to total loans and bills discounted
Loans to bankrupt borrowers		46,057		0.05	%		14,913		0.01	%		31,143			0.03	%
Non-accrual delinquent loans		851,173		0.98	%		606,554		0.73	%		244,618			0.24	%
Accruing loans contractually past due 3 months or more		54,585		0.06	%		55,538		0.06	%		(953	)		(0.00	)%
Restructured loans		276,441		0.31	%		483,795		0.58	%		(207,354	)		(0.26	)%
Total risk monitored loans		1,228,257		1.41	%		1,160,802		1.40	%		67,454			0.01	%
Total loans and bills discounted		86,691,727					82,740,384					3,951,342

Written-off		309,542					340,284					(30,741	)

(2) Allowance for Credit Losses
	(in millions of yen)
	As of March 31, 2016 (A)		% to total risk monitored loans			As of March 31, 2015 (B)		% to total risk monitored loans			Increase (Decrease) (A) - (B)			% to total risk monitored loans
Allowance for credit losses		665,588		54.18	%		644,579		55.52	%		21,008			(1.33	)%
General allowance for credit losses		290,081					492,721					(202,639	)
Specific allowance for credit losses		375,188					150,643					224,544
Allowance for credit to specific foreign borrowers		318					1,214					(896	)

(3) Classification of Risk-Monitored Loans



Classified by Geographic Area	(in millions of yen)
	As of March 31, 2016 (A)		As of March 31, 2015 (B)		Increase (Decrease) (A) - (B)
Domestic		972,296		1,034,888		(62,592	)
Overseas		255,960		125,913		130,047
Asia		44,823		16,510		28,313
Indonesia		2,979		1,397		1,582
Singapore		18,414		—		18,414
Thailand		—		—		—
China		3,380		—		3,380
Other		20,048		15,113		4,935
Americas		77,184		21,123		56,061
Europe, Middle East and Other		133,952		88,279		45,672

Total		1,228,257		1,160,802		67,454

Classified by Industry


	(in millions of yen)
	As of March 31, 2016 (A)		As of March 31, 2015 (B)		Increase (Decrease) (A) - (B)
Domestic		972,296		1,034,888		(62,592	)
Manufacturing		405,969		326,239		79,730
Construction		20,003		26,136		(6,132	)
Wholesale and retail		162,914		207,464		(44,549	)
Finance and insurance		1,443		5,374		(3,931	)
Real estate		79,324		106,276		(26,952	)
Goods rental and leasing		2,720		4,914		(2,193	)
Services		67,072		82,495		(15,422	)
Other industries		32,500		44,024		(11,523	)
Consumer		200,346		231,963		(31,617	)
Overseas		255,960		125,913		130,047
Financial institutions		14,290		7,298		6,991
Commercial and industrial		181,531		40,586		140,945
Other		60,138		78,029		(17,890	)

Total		1,228,257		1,160,802		67,454

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

(1) Risk-Monitored Loans


	(in millions of yen)
	As of March 31, 2016 (A)		% to total loans and bills discounted			As of March 31, 2015 (B)		% to total loans and bills discounted			Increase (Decrease) (A) - (B)			% to total loans and bills discounted
Loans to bankrupt borrowers		526		0.00	%		476		0.00	%		50			0.00	%
Non-accrual delinquent loans		32,576		0.24	%		23,093		0.18	%		9,482			0.06	%
Accruing loans contractually past due 3 months or more		214		0.00	%		405		0.00	%		(190	)		(0.00	)%
Restructured loans		9,886		0.07	%		21,460		0.17	%		(11,573	)		(0.09	)%
Total risk monitored loans		43,203		0.32	%		45,434		0.36	%		(2,231	)		(0.03	)%
Total loans and bills discounted		13,192,538					12,609,827					582,711

Written-off		7,459					11,918					(4,459	)

(2) Allowance for Credit Losses
	(in millions of yen)
	As of March 31, 2016 (A)		% to total risk monitored loans			As of March 31, 2015 (B)		% to total risk monitored loans			Increase (Decrease) (A) - (B)			% to total risk monitored loans
Allowance for credit losses		37,084		85.83	%		38,549		84.84	%		(1,464	)		0.99	%
General allowance for credit losses		26,355					32,000					(5,645	)
Specific allowance for credit losses		10,729					6,548					4,180
Allowance for credit to specific foreign borrowers		0					0					(0	)

(3) Classification of Risk-Monitored Loans


Classified by Geographic Area	(in millions of yen)
	As of March 31, 2016 (A)		As of March 31, 2015 (B)		Increase (Decrease) (A) - (B)
Domestic		43,181		44,340		(1,158	)
Overseas		22		1,094		(1,072	)
Asia		—		1,082		(1,082	)
Indonesia		—		—		—
Singapore		—		1,082		(1,082	)
Thailand		—		—		—
China		—		—		—
Other		—		—		—
Americas		22		12		9
Europe, Middle East and Other		—		—		—

Total		43,203		45,434		(2,231	)


Classified by Industry	(in millions of yen)
	As of March 31, 2016 (A)		As of March 31, 2015 (B)		Increase (Decrease) (A) - (B)
Domestic		43,181		44,340		(1,158	)
Manufacturing		24,857		20,036		4,821
Construction		684		714		(30	)
Wholesale and retail		1,353		4,254		(2,901	)
Finance and insurance		—		282		(282	)
Real estate		8,524		10,480		(1,955	)
Goods rental and leasing		—		—		—
Services		296		385		(88	)
Other industries		322		878		(556	)
Consumer		7,143		7,308		(165	)
Overseas		22		1,094		(1,072	)
Financial institutions		—		1,082		(1,082	)
Commercial and industrial		—		—		—
Other		22		12		9

Total		43,203		45,434		(2,231	)

MUTB Non-consolidated: Trust Account

“Trust Account” represents trust account with contracts indemnifying the principal amounts.

(1) Risk-Monitored Loans


	(in millions of yen)
	As of March 31, 2016 (A)		% to total loans and bills discounted			As of March 31, 2015 (B)		% to total loans and bills discounted			Increase (Decrease) (A) - (B)			% to total loans and bills discounted
Loans to bankrupt borrowers		11		0.04	%		3		0.01	%		7			0.03	%
Non-accrual delinquent loans		0		0.00	%		0		0.00	%		(0	)		(0.00	)%
Accruing loans contractually past due 3 months or more		5		0.02	%		165		0.61	%		(159	)		(0.58	)%
Restructured loans		606		2.62	%		751		2.78	%		(145	)		(0.15	)%
Total risk monitored loans		623		2.69	%		921		3.41	%		(297	)		(0.71	)%
Total loans and bills discounted		23,111					27,008					(3,896	)

(2) Allowance for Credit Losses


	(in millions of yen)
	As of March 31, 2016 (A)		As of March 31, 2015 (B)		Increase (Decrease) (A) - (B)
Allowance for bad debts		69		81		(11	)

(3) Classification of Risk-Monitored Loans

Classified by Industry
	(in millions of yen)
	As of March 31, 2016 (A)		As of March 31, 2015 (B)		Increase (Decrease) (A) - (B)
Domestic		623		921		(297	)
Manufacturing		—		—		—
Construction		—		—		—
Wholesale and retail		—		—		—
Finance and insurance		—		—		—
Real estate		564		688		(123	)
Goods rental and leasing		—		—		—
Services		—		—		—
Other industries		—		—		—
Consumer		59		232		(173	)

Total		623		921		(297	)

Mitsubishi UFJ Financial Group, Inc.

8. Non Performing Loans Based on the Financial Reconstruction Law (the “FRL”)

BTMU and MUTB Combined including Trust Account

“Trust account” represents trust account with contracts indemnifying the principal amounts.

(1) Non Performing Loans


							(in millions of yen)
							As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Bankrupt or De facto Bankrupt								118,819			89,866			28,952
Doubtful								846,495			571,436			275,058
Special Attention								341,635			561,985			(220,350	)
Non Performing Loans (1)								1,306,950			1,223,289			83,661

Normal								108,009,909			104,112,357			3,897,552
Total								109,316,859			105,335,646			3,981,213

Non Performing Loans / Total								1.19	%		1.16	%		0.03	%

(2) Status of Coverage of Non Performing Loans
							(in millions of yen)
							As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Covered amount (2)								1,096,492			940,856			155,636
Allowance for credit losses								461,495			321,940			139,555
Collateral, guarantees, etc.								634,997			618,916			16,081

Coverage ratio (2) / (1)								83.89	%		76.91	%		6.98	%

(3) Coverage Ratio
	(in millions of yen)
Category	Loan amount (A)			Allowance for credit losses (B)			Covered by collateral and/ or guarantees (C)			Coverage ratio for unsecured portion (B) / [(A) - (C)]			Coverage ratio [(B) + (C)] / (A)
Bankrupt or De facto Bankrupt		118,819			17,327			101,491						100.00	%
		[89,866	]		[1,191	]		[88,674	]					[100.00	%]
Doubtful		846,495			355,601			348,378						83.16	%
		[571,436	]		[153,008	]		[300,448	]					[79.35	%]
Special Attention		341,635			88,566			185,127						80.11	%
		[561,985	]		[167,740	]		[229,792	]					[70.73	%]
Total		1,306,950			461,495			634,997						83.89	%
		[1,223,289	]		[321,940	]		[618,916	]					[76.91	%]
Note: The upper figures are as of March 31, 2016. The lower figures with brackets are as of March 31, 2015. (4) Classified by Industry
							(in millions of yen)
							As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Domestic								1,043,076			1,091,554			(48,477	)
Manufacturing								446,091			347,914			98,176
Construction								20,787			26,937			(6,150	)
Wholesale and retail								172,559			216,734			(44,174	)
Finance and insurance								2,777			7,279			(4,501	)
Real estate								88,661			118,470			(29,809	)
Goods rental and leasing								2,722			4,922			(2,199	)
Services								67,852			83,500			(15,647	)
Other industries								33,701			45,901			(12,200	)
Consumer								207,921			239,892			(31,970	)
Overseas								263,873			131,735			132,138
Financial institutions								14,290			8,380			5,909
Commercial and industrial								189,422			45,312			144,109
Other								60,160			78,041			(17,880	)
Total								1,306,950			1,223,289			83,661

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

(1) Non Performing Loans


	(in millions of yen)
	As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Bankrupt or De facto Bankrupt		116,853			87,955			28,897
Doubtful		815,231			549,635			265,596
Special Attention		331,026			539,334			(208,307	)
Non Performing Loans (1)		1,263,111			1,176,925			86,186

Normal		94,370,441			91,117,065			3,253,375
Total		95,633,552			92,293,991			3,339,561

Non Performing Loans / Total		1.32	%		1.27	%		0.04	%

(2) Status of Coverage of Non Performing Loans


	(in millions of yen)
	As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Covered amount (2)		1,059,742			905,598			154,143
Allowance for credit losses		447,041			308,487			138,553
Collateral, guarantees, etc.		612,701			597,111			15,590

Coverage ratio (2) / (1)		83.89	%		76.94	%		6.95	%

(3) Coverage Ratio

(in millions of yen)

Category

Loan amount
(A)

Allowance for
credit losses
(B)

Covered by
collateral and/
or guarantees
(C)

Coverage ratio for
unsecured portion
(B) / [(A) - (C)]

Coverage ratio
[(B) + (C)] / (A)

Bankrupt or De facto Bankrupt

116,853

17,316

99,536

100.00

[87,955

]

[1,176

]

[86,778

]

[100.00

Doubtful

815,231

345,361

331,408

71.38

83.01

[549,635

]

[147,035

]

[288,723

]

[56.35

[79.28

Special Attention

331,026

84,363

181,756

56.51

80.39

[539,334

]

[160,274

]

[221,609

]

[50.44

[70.80

Total

1,263,111

447,041

612,701

68.73

83.89

[1,176,925

]

[308,487

]

[597,111

]

[53.20

[76.94

Note: The upper figures are as of March 31, 2016. The lower figures with brackets are as of March 31, 2015.

(4) Classified by Industry


	(in millions of yen)
	As of March 31, 2016 (A)		As of March 31, 2015 (B)		Increase (Decrease) (A) - (B)
Domestic		999,259		1,046,284		(47,025	)
Manufacturing		421,233		327,878		93,355
Construction		20,103		26,223		(6,120	)
Wholesale and retail		171,206		212,480		(41,273	)
Finance and insurance		2,777		6,996		(4,218	)
Real estate		79,572		107,302		(27,729	)
Goods rental and leasing		2,722		4,922		(2,199	)
Services		67,556		83,115		(15,558	)
Other industries		33,379		45,023		(11,643	)
Consumer		200,707		232,343		(31,635	)
Overseas		263,851		130,640		133,211
Financial institutions		14,290		7,298		6,991
Commercial and industrial		189,422		45,312		144,109
Other		60,138		78,029		(17,890	)
Total		1,263,111		1,176,925		86,186

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

(1) Non Performing Loans


							(in millions of yen)
							As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Bankrupt or De facto Bankrupt								1,954			1,898			55
Doubtful								31,159			21,678			9,481
Special Attention								10,101			21,865			(11,763	)
Non Performing Loans (1)								43,215			45,442			(2,227	)

Normal								13,616,979			12,969,204			647,775
Total								13,660,195			13,014,647			645,548

Non Performing Loans / Total								0.31	%		0.34	%		(0.03	)%

(2) Status of Coverage of Non Performing Loans

							(in millions of yen)
							As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Covered amount (2)								36,260			34,572			1,688
Allowance for credit losses								14,454			13,453			1,001
Collateral, guarantees, etc.								21,805			21,118			686

Coverage ratio (2) / (1)								83.90	%		76.07	%		7.82	%

(3) Coverage Ratio

	(in millions of yen)
Category	Loan amount (A)			Allowance for credit losses (B)			Covered by collateral and/ or guarantees (C)			Coverage ratio for unsecured portion (B) / [(A) - (C)]			Coverage ratio [(B) + (C)] / (A)
Bankrupt or De facto Bankrupt		1,954			10			1,943			100.00	%		100.00	%
		[1,898	]		[14	]		[1,883	]		[100.00	%]		[100.00	%]
Doubtful		31,159			10,239			16,879			71.70	%		87.03	%
		[21,678	]		[5,972	]		[11,623	]		[59.40	%]		[81.16	%]
Special Attention		10,101			4,203			2,982			59.05	%		71.14	%
		[21,865	]		[7,465	]		[7,611	]		[52.37	%]		[68.95	%]
Total		43,215			14,454			21,805			67.51	%		83.90	%
		[45,442	]		[13,453	]		[21,118	]		[55.30	%]		[76.07	%]
Note: The upper figures are as of March 31, 2016. The lower figures with brackets are as of March 31, 2015. (4) Classified by Industry
							(in millions of yen)
							As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Domestic								43,193			44,348			(1,154	)
Manufacturing								24,857			20,036			4,821
Construction								684			714			(30	)
Wholesale and retail								1,353			4,254			(2,901	)
Finance and insurance								—			282			(282	)
Real estate								8,524			10,480			(1,955	)
Goods rental and leasing								—			—			—
Services								296			385			(88	)
Other industries								322			878			(556	)
Consumer								7,155			7,316			(161	)
Overseas								22			1,094			(1,072	)
Financial institutions								—			1,082			(1,082	)
Commercial and industrial								—			—			—
Other								22			12			9
Total								43,215			45,442			(2,227	)

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated: Trust Account

“Trust account” represents trust account with contracts indemnifying the principal amounts.

(1) Non Performing Loans


							(in millions of yen)
							As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Bankrupt or De facto Bankrupt								11			12			(0	)
Doubtful								104			122			(18	)
Special Attention								507			786			(278	)
Non Performing Loans (1)								623			921			(297	)

Normal								22,488			26,086			(3,598	)
Total								23,111			27,008			(3,896	)

Non Performing Loans / Total								2.69	%		3.41	%		(0.71	)%

(2) Status of Coverage of Non Performing Loans
							(in millions of yen)
							As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Covered amount (2)								490			686			(195	)
Allowance for credit losses								—			—			—
Collateral, guarantees, etc.								490			686			(195	)

Coverage ratio (2) / (1)								78.65	%		74.50	%		4.15	%

(3) Coverage Ratio
	(in millions of yen)
Category	Loan amount (A)			Allowance for credit losses (B)			Covered by collateral and/ or guarantees (C)			Coverage ratio for unsecured portion (B) / [(A) - (C)]			Coverage ratio [(B) + (C)] / (A)
Bankrupt or De facto Bankrupt		11			—			11						100.00	%
		[12	]		[—	]		[12	]					[100.00	%]
Doubtful		104			—			90						87.31	%
		[122	]		[—	]		[101	]					[83.05	%]
Special Attention		507			—			387						76.38	%
		[786	]		[—	]		[572	]					[72.76	%]
Total		623			—			490						78.65	%
		[921	]		[—	]		[686	]					[74.50	%]
Note: The upper figures are as of March 31, 2016. The lower figures with brackets are as of March 31, 2015.

(4) Classified by Industry
							(in millions of yen)
							As of March 31, 2016 (A)			As of March 31, 2015 (B)			Increase (Decrease) (A) - (B)
Domestic								623			921			(297	)
Manufacturing								—			—			—
Construction								—			—			—
Wholesale and retail								—			—			—
Finance and insurance								—			—			—
Real estate								564			688			(123	)
Goods rental and leasing								—			—			—
Services								—			—			—
Other industries								—			—			—
Consumer								59			232			(173	)
Total								623			921			(297	)

Mitsubishi UFJ Financial Group, Inc.

Overview of Non-Performing Loans

BTMU and MUTB Combined

(in billions of yen)

Self-Assessment

Coverage

ratio for

unsecured

portion

Non-Performing Loans

Based on the “FRL”

Risk-Monitored Loans

Category of
Borrowers

Classification

Non-
Classification

Classification
II

Classification
III

Classification
IV

Bankrupt
Borrowers

[101.4]

[15.9]

[1.3]

(*1)

100.00%

i) Bankrupt or

De facto Bankrupt

[118.8]

Loans to bankrupt borrowers

[46.5]

Substantially
Bankrupt
Borrowers

Non-accrual

delinquent loans

[883.7]

Potentially
Bankrupt
Borrowers

[348.8]

[497.5]

71.39%

ii) Doubtful

[846.3]

Borrowers
Requiring
Caution
(Special
Attention
Borrowers)

[341.1]

56.63%

iii) Special Attention

[341.1]

Accruing loans contractually past due

3 months or more

[54.7]

Restructured loans

[286.3]

Borrowers
Requiring
Caution
(Other
Borrowers)

iv) Normal

[107,987.4]

Normal
Borrowers

Non-Performing Loans Based on the “FRL”

Risk-Monitored Loans

i) + ii) + iii)

1,306.3

1,271.4

Total

i) + ii) + iii) + iv)

109,293.7

(*1)	“Customers’ liabilities for acceptances and guarantees” in Classification IV are fully reserved.

Mitsubishi UFJ Financial Group, Inc.

9. Progress in Disposition of Problem Assets

BTMU Non-consolidated

(1) Bankrupt or De facto Bankrupt and Doubtful Assets Based on the “FRL”


	(in millions of yen)
	As of March 31, 2013		As of March 31, 2014		As of March 31, 2015 (A)		As of March 31, 2016 (B)		(B) - (A)
Assets newly categorized during fiscal 2012		340,637		204,404		94,261		58,168		(36,092	)
Assets newly categorized during fiscal 2013				195,312		121,427		86,518		(34,909	)
Assets newly categorized during fiscal 2014						98,674		61,087		(37,587	)
Assets newly categorized during fiscal 2015								500,907

(2) Progress in Disposition of Problem Assets


	(in millions of yen)
	For the fiscal year ended March 31, 2016
			Bankrupt or De facto Bankrupt		Doubtful
Liquidation		6,457
Reconstructive treatment		4,803
Upgrade due to reconstructive treatment		—
Loan sold to secondary market		3,126
Write-offs		24,847
Others		167,178
Collection / Repayment		87,768
Upgrade		79,410

Total		206,413		30,263		176,149

Amount in process for disposition		109,143

Note:

The process for disposition consists of legal liquidation, quasi-legal liquidation, company splits to good companies and bad companies, partial direct write-offs of retail exposure to individuals and small/medium-sized companies, and trusts to The Resolution and Collection Corporation mainly for the purpose of revitalization of companies, which are scheduled to be off-balanced before their maturities.

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated including Trust Account

“Trust account” represents trust account with contracts indemnifying the principal amounts.

(1) Bankrupt or De facto Bankrupt and Doubtful Assets Based on the “FRL”


	(in millions of yen)
	As of March 31, 2013		As of March 31, 2014		As of March 31, 2015 (A)		As of March 31, 2016 (B)		(B) - (A)
Assets newly categorized during fiscal 2012		15,711		8,784		1,845		1,367		(478	)
Assets newly categorized during fiscal 2013				6,315		3,069		2,510		(558	)
Assets newly categorized during fiscal 2014						7,495		1,730		(5,764	)
Assets newly categorized during fiscal 2015								18,743

(2) Progress in Disposition of Problem Assets


	(in millions of yen)
	For the fiscal year ended March 31, 2016
			Bankrupt or De facto Bankrupt		Doubtful
Liquidation		—
Reconstructive treatment		—
Upgrade due to reconstructive treatment		—
Loan sold to secondary market		—
Write-offs		3,048
Others		7,165
Collection / Repayment		4,685
Upgrade		2,479

Total		10,213		381		9,832

Amount in process for disposition		2,059

Note:

Mitsubishi UFJ Financial Group, Inc.

10.

Loans Classified by Type of Industry, Domestic Consumer Loans, Domestic Loans to Small/Medium-Sized Companies and Proprietors

BTMU and MUTB Combined including Trust Accounts

(1) Loans Classified by Type of Industry


	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Domestic offices (excluding loans booked at offshore markets)		72,689,196			3,254,176			69,435,019
Manufacturing		10,807,764			650,956			10,156,808
Agriculture, forestry, fishery, mining, quarrying of stone and gravel		159,458			(4,645	)		164,103
Construction		820,597			(14,466	)		835,063
Utilities		1,579,251			(120,297	)		1,699,548
Communication and information services		1,284,429			2,500			1,281,929
Transport and postal activities		2,188,923			18,582			2,170,341
Wholesale and retail		6,442,059			(188,714	)		6,630,773
Finance and insurance		8,478,327			377,402			8,100,925
Real estate		8,711,840			185,397			8,526,443
Goods rental and leasing		1,863,049			63,625			1,799,424
Services		2,516,767			(139,554	)		2,656,321
Municipal government		606,393			(51,023	)		657,416
Other industries (including loans to the Japanese government)		27,230,325			2,474,416			24,755,909
Overseas offices and loans booked at offshore markets		27,345,641			1,318,072			26,027,568

Total		100,034,837			4,572,248			95,462,588

(2) Domestic Consumer Loans
	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Total domestic consumer loans		16,366,131			(282,775	)		16,648,906
Housing loans		15,570,786			(308,333	)		15,879,119
Residential purpose		13,342,333			(143,934	)		13,486,267
Other		795,344			25,557			769,786
(3) Domestic Loans to Small/Medium-Sized Companies and Proprietors
	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Outstanding amount		39,563,061			784,881			38,778,180
% to total domestic loans		54.42	%		(1.42	)%		55.84	%

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

(1) Loans Classified by Type of Industry


	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Domestic offices (excluding loans booked at offshore markets)		61,736,714			2,873,758			58,862,955
Manufacturing		8,770,123			714,590			8,055,533
Agriculture, forestry, fishery, mining, quarrying of stone and gravel		155,584			(4,140	)		159,724
Construction		716,043			(11,643	)		727,686
Utilities		1,215,592			(60,920	)		1,276,512
Communication and information services		1,054,721			(2,185	)		1,056,906
Transport and postal activities		1,594,679			56,221			1,538,458
Wholesale and retail		5,530,552			(132,880	)		5,663,432
Finance and insurance		6,163,474			165,802			5,997,672
Real estate		6,896,709			179,664			6,717,045
Goods rental and leasing		1,163,660			(16,842	)		1,180,502
Services		2,371,478			(110,097	)		2,481,575
Municipal government		597,378			(48,448	)		645,826
Other industries (including loans to the Japanese government)		25,506,721			2,144,637			23,362,084
Overseas offices and loans booked at offshore markets		24,955,012			1,077,584			23,877,428

Total		86,691,727			3,951,342			82,740,384

(2) Domestic Consumer Loans
	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Total domestic consumer loans		14,989,776			(328,815	)		15,318,592
Housing loans		14,199,887			(355,518	)		14,555,405
Residential purpose		12,139,077			(214,012	)		12,353,090
Other		789,889			26,702			763,187
(3) Domestic Loans to Small/Medium-Sized Companies and Proprietors
	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Outstanding amount		33,908,894			421,775			33,487,119
% to total domestic loans		54.92	%		(1.96	)%		56.88	%

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

(1) Loans Classified by Type of Industry


	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Domestic offices (excluding loans booked at offshore markets)		10,801,910			342,223			10,459,686
Manufacturing		2,037,641			(63,634	)		2,101,275
Agriculture, forestry, fishery, mining, quarrying of stone and gravel		3,874			(505	)		4,379
Construction		104,554			(2,823	)		107,377
Utilities		363,659			(59,377	)		423,036
Communication and information services		229,708			4,685			225,023
Transport and postal activities		594,244			(34,081	)		628,325
Wholesale and retail		911,507			(55,834	)		967,341
Finance and insurance		2,307,943			204,690			2,103,253
Real estate		1,806,903			7,418			1,799,485
Goods rental and leasing		699,389			80,467			618,922
Services		145,284			(29,456	)		174,740
Municipal government		4,168			(2,017	)		6,185
Other industries (including loans to the Japanese government)		1,593,025			292,691			1,300,334
Overseas offices and loans booked at offshore markets		2,390,628			240,487			2,150,140

Total		13,192,538			582,711			12,609,827


(2) Domestic Consumer Loans
	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Total domestic consumer loans		1,366,478			47,581			1,318,897
Housing loans		1,361,100			48,677			1,312,423
Residential purpose		1,194,177			71,330			1,122,847
Other		5,377			(1,096	)		6,474

(3) Domestic Loans to Small/Medium-Sized Companies and Proprietors
	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Outstanding amount		5,515,353			327,704			5,187,649
% to total domestic loans		51.05	%		1.46	%		49.59	%

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated: Trust Accounts

(1) Loans Classified by Type of Industry


	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Domestic offices (excluding loans booked at offshore markets)		150,571			38,194			112,376
Manufacturing		—			—			—
Agriculture, forestry, fishery, mining, quarrying of stone and gravel		—			—			—
Construction		—			—			—
Utilities		—			—			—
Communication and information services		—			—			—
Transport and postal activities		—			(3,558	)		3,558
Wholesale and retail		—			—			—
Finance and insurance		6,910			6,910			—
Real estate		8,228			(1,685	)		9,913
Goods rental and leasing		—			—			—
Services		5			(1	)		6
Municipal government		4,847			(558	)		5,405
Other industries (including loans to the Japanese government)		130,579			37,088			93,491
Overseas offices and loans booked at offshore markets		—			—			—

Total		150,571			38,194			112,376

(2) Domestic Consumer Loans
	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Total domestic consumer loans		9,875			(1,540	)		11,415
Housing loans		9,798			(1,491	)		11,290
Residential purpose		9,078			(1,251	)		10,329
Other		76			(48	)		125
(3) Domestic Loans to Small/Medium-Sized Companies and Proprietors
	(in millions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Outstanding amount		138,814			35,402			103,412
% to total domestic loans		92.19	%		0.16	%		92.02	%

Mitsubishi UFJ Financial Group, Inc.

11. Overseas Loans

BTMU and MUTB Combined


	(in millions of yen)
	As of March 31, 2016 (A)		Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Asia		7,202,239		(339,072	)		7,541,312
Thailand		241,969		(2,462	)		244,432
Indonesia		851,537		(77,598	)		929,135
Malaysia		540,576		66,508			474,067
Philippines		186,628		(28,825	)		215,453
South Korea		531,996		3,491			528,505
Singapore		1,242,161		(178,613	)		1,420,775
Hong Kong		2,106,366		(2,196	)		2,108,563
China		177,953		(4,735	)		182,688
Taiwan		377,664		25,737			351,926
Others		945,386		(140,377	)		1,085,763
Latin America		4,316,864		440,670			3,876,193
Argentina		25,784		21,784			4,000
Brazil		647,854		15,473			632,381
Mexico		425,305		11,877			413,427
Caribbean countries		2,735,182		403,326			2,331,856
Others		482,736		(11,791	)		494,528
North America		7,810,405		579,939			7,230,466
United States of America		7,548,706		642,247			6,906,459
Canada		261,699		(62,307	)		324,007
Western Europe		5,485,582		560,620			4,924,962
United Kingdom		2,169,523		178,932			1,990,590
Germany		534,650		77,476			457,174
France		460,233		127,873			332,359
Netherlands		730,950		18,363			712,586
Spain		176,673		23,309			153,363
Italy		208,807		1,167			207,639
Others		1,204,744		133,497			1,071,247
Eastern Europe		229,974		(119,336	)		349,311
Others		4,412,796		537,070			3,875,726

Total		29,457,864		1,659,891			27,797,972

Note:

In addition to the (non-consolidated basis) loan balance stated above, six major overseas subsidiaries have the following loan balances in the consolidated financial statements.

MUFG Americas Holdings Corporation: ¥9,258,677 million (a 108,486 million yen increase as compared with March 31, 2015.)

Bank of Ayudhya Public Company Limited: ¥3,468,308 million (a 103,929 million yen decrease as compared with March 31, 2015.)

Bank of Tokyo-Mitsubishi UFJ (China), Ltd.: ¥1,481,236 million (a 138,083 million yen decrease as compared with March 31, 2015.)

Bank of Tokyo-Mitsubishi UFJ (Holland) N.V.: ¥599,028 million (a 75,165 million yen decrease as compared with March 31, 2015.)

Bank of Tokyo-Mitsubishi UFJ (Canada): ¥422,646 million (a 24,984 million yen increase as compared with March 31, 2015.)

Bank of Tokyo-Mitsubishi UFJ (Malaysia): ¥469,951 million (a 209,409 million yen increase as compared with March 31, 2015.)

Mitsubishi UFJ Financial Group, Inc.

12. Loans and Deposits

BTMU and MUTB Combined

(in millions of yen)

As of
March 31, 2016
(A)

Increase
(Decrease)
(A) - (B)

As of
March 31, 2015
(B)

Deposits (ending balance)

145,331,997

7,999,677

137,332,320

Deposits (average balance)

138,046,126

6,039,226

132,006,899

Loans (ending balance)

99,884,265

4,534,054

95,350,211

Loans (average balance)

97,177,782

2,383,495

94,794,286

BTMU Non-consolidated

(in millions of yen)

As of
March 31, 2016
(A)

Increase
(Decrease)
(A) - (B)

As of
March 31, 2015
(B)

Deposits (ending balance)

131,986,582

7,395,672

124,590,909

Deposits (average balance)

125,267,973

5,886,746

119,381,226

Loans (ending balance)

86,691,727

3,951,342

82,740,384

Loans (average balance)

84,450,867

1,751,429

82,699,437

MUTB Non-consolidated

(in millions of yen)

As of
March 31, 2016
(A)

Increase
(Decrease)
(A) - (B)

As of
March 31, 2015
(B)

Deposits (ending balance)

13,345,415

604,005

12,741,410

Deposits (average balance)

12,778,152

152,480

12,625,672

Loans (ending balance)

13,192,538

582,711

12,609,827

Loans (average balance)

12,726,915

632,065

12,094,849

Mitsubishi UFJ Financial Group, Inc.

13. Domestic Deposits

BTMU and MUTB Combined

(in millions of yen)

As of
March 31, 2016
(A)

Increase
(Decrease)
(A) - (B)

As of
March 31, 2015
(B)

Individuals

71,068,636

653,445

70,415,191

Corporations and others

52,782,310

5,333,164

47,449,145

Domestic deposits

123,850,947

5,986,610

117,864,337

Note: Amounts do not include negotiable certificates of deposit and JOM accounts.

BTMU Non-consolidated

(in millions of yen)

As of
March 31, 2016
(A)

Increase
(Decrease)
(A) - (B)

As of
March 31, 2015
(B)

Individuals

63,158,639

964,602

62,194,037

Corporations and others

48,752,644

4,487,903

44,264,741

Domestic deposits

111,911,283

5,452,505

106,458,778

Note: Amounts do not include negotiable certificates of deposit and JOM accounts.

MUTB Non-consolidated

(in millions of yen)

As of
March 31, 2016
(A)

Increase
(Decrease)
(A) - (B)

As of
March 31, 2015
(B)

Individuals

7,909,997

(311,156

)

8,221,154

Corporations and others

4,029,666

845,261

3,184,404

Domestic deposits

11,939,663

534,104

11,405,559

Note: Amounts do not include negotiable certificates of deposit and JOM accounts.

Mitsubishi UFJ Financial Group, Inc.

14. Status of Deferred Tax Assets

BTMU Non-consolidated

(1) Tax Effects of the Items Comprising Net Deferred Tax Assets


	(in billions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Deferred tax assets		526.8			(44.3	)		571.1
Allowance for credit losses		267.8			(13.3	)		281.1
Write-down on investment securities		117.5			21.4			96.0
Unrealized losses on other securities		19.2			5.9			13.3
Reserve for retirement benefits		98.7			(6.5	)		105.3
Other		184.1			(21.7	)		205.8
Valuation allowance		(160.6	)		(30.1	)		(130.5	)
Deferred tax liabilities		1,094.7			(61.7	)		1,156.5
Unrealized gains on other securities		756.3			(168.9	)		925.2
Net deferred gains on hedges		187.4			112.8			74.5
Revaluation gains on securities upon merger		62.0			(7.5	)		69.6
Gains on securities contributed to employees’ retirement benefits trust		49.8			(2.8	)		52.6
Other		39.0			4.7			34.3
Net deferred tax assets		(567.8	)		17.4			(585.3	)

(2) Net business profits before provision for general allowance for credit losses and Taxable Income


	(in billions of yen)
	FY2010			FY2011			FY2012			FY2013			FY2014			FY2015
Net business profits before provision for general allowance for credit losses		1,006.5			1,022.8			1,001.5			855.9			931.4			888.1
Total credit costs		(166.1	)		(125.3	)		(56.6	)		17.0			(70.7	)		(103.4	)
Income before income taxes		674.4			739.5			877.4			984.7			860.2			884.7
Reconciliation to taxable income		(24.0	)		(305.1	)		(561.4	)		(336.2	)		(12.6	)		(107.3	)
Taxable income		650.3			434.3			316.0			648.5			847.5			777.3

(3) Classification Based on Prior Year Operating Results as Provided in the JICPA Audit Committee Report No.66

We are classified as “2” because we are considered to be a company showing stable financial performance.

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

(1) Tax Effects of the Items Comprising Net Deferred Tax Assets


	(in billions of yen)
	As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Deferred tax assets		61.1			(2.4	)		63.5
Deferred losses on hedging instruments		29.8			2.5			27.2
Gains on securities related to employees’ retirement benefits trust		14.8			0.4			14.3
Allowance for credit losses		12.4			(2.0	)		14.5
Write-down on investment securities		10.5			0.0			10.4
Other		31.0			(3.6	)		34.7
Valuation allowance		(37.5	)		0.2			(37.7	)
Deferred tax liabilities		315.4			(37.7	)		353.1
Unrealized gains on other securities		259.8			(41.6	)		301.4
Reserve for retirement benefits		44.0			5.1			38.9
Other		11.5			(1.2	)		12.7
Net deferred tax assets		(254.3	)		35.3			(289.6	)

(2) Net business profits before credit costs for trust accounts and provision for general allowance for credit losses and Taxable Income


	(in billions of yen)
	FY2010			FY2011			FY2012			FY2013			FY2014			FY2015
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		150.4			148.1			162.2			162.9			190.4			193.0
Total credit costs		(8.0	)		(9.2	)		(8.6	)		18.0			(0.4	)		(0.2	)
Income before income taxes		101.9			113.5			173.5			184.4			201.4			218.6
Reconciliation to taxable income		(80.1	)		(30.2	)		(84.9	)		(94.3	)		(40.4	)		(69.5	)
Taxable income		21.7			83.3			88.6			90.1			160.9			149.0

(3) Classification Based on Prior Year Operating Results as Provided in the JICPA Audit Committee Report No.66

We are classified as “2” because we are considered to be a company showing stable financial performance.

Mitsubishi UFJ Financial Group, Inc.

15. Retirement Benefits

MUFG Consolidated

(1) Benefit obligation


		(in millions of yen)
		As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Projected benefit obligation (reserve type)	(A)		2,342,984			23,319			2,319,665
Projected benefit obligation (non-reserve type)	(B)		49,370			250			49,120
Fair value of plan assets	(C)		(2,707,520	)		103,905			(2,811,425	)
Net amount recorded on the Consolidated Balance Sheet	(A) + (B) - (C)		(315,164	)		127,475			(442,640	)
Net defined benefit liability			62,791			670			62,121
Net defined benefit asset			(377,955	)		126,805			(504,761	)
(2) Net periodic cost of retirement benefits
		(in millions of yen)
		For the fiscal year ended March 31, 2016 (A)			Increase (Decrease) (A) - (B)			For the fiscal year ended March 31, 2015 (B)
Net periodic cost of retirement benefits regarding defined benefit pension plans			29,677			(18,248	)		47,925
Service cost			62,866			7,389			55,476
Interest cost			36,497			(3,612	)		40,110
Expected return on plan assets			(92,559	)		(6,679	)		(85,879	)
Amortization of unrecognized prior service cost			(8,916	)		(89	)		(8,827	)
Amortization of unrecognized net actuarial loss			24,353			(12,490	)		36,844
Other			7,436			(2,766	)		10,202

(3) Assumptions used in calculation of projected benefit obligation


	As of March 31, 2016
Discount rates		Domestic consolidated subsidiaries	(0.05)% ~ 0.83%
		Overseas consolidated subsidiaries	2.40% ~ 13.10%
Expected return		Domestic consolidated subsidiaries	0.35% ~ 4.10%
		Overseas consolidated subsidiaries	2.40% ~ 13.10%

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

(1) Benefit obligation


		(in millions of yen)
		As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Projected benefit obligation	(A)		1,491,216			4,768			1,486,447
Discount rates			0.5% ~ 0.7	%					0.6% ~ 1.0	%
Fair value of plan assets	(B)		1,619,644			(64,085	)		1,683,730
Prepaid pension cost	(C)		258,110			32,426			225,683
Reserve for retirement benefits	(D)		8,510			1,557			6,953
Total amount unrecognized	(A) - (B) + (C) - (D)		121,170			99,723			21,447
Unrecognized net actuarial loss			131,576			95,922			35,653
Unrecognized prior service cost			(10,405	)		3,800			(14,205	)

(2) Net periodic cost

		(in millions of yen)
		For the fiscal year ended March 31, 2016 (A)			Increase (Decrease) (A) - (B)			For the fiscal year ended March 31, 2015 (B)
Net periodic cost of retirement benefits			33,043			(8,485	)		41,529
Service cost			34,184			4,452			29,731
Interest cost			15,362			(2,771	)		18,134
Expected return on plan assets			(35,368	)		(1,616	)		(33,751	)
Amortization of unrecognized prior service cost			(3,740	)		479			(4,220	)
Amortization of unrecognized net actuarial loss			12,315			(8,966	)		21,282
Other			10,290			(63	)		10,354

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

(1) Benefit obligation


		(in millions of yen)
		As of March 31, 2016 (A)			Increase (Decrease) (A) - (B)			As of March 31, 2015 (B)
Projected benefit obligation	(A)		341,625			21,761			319,864
Discount rates			0.5% ~ 0.7	%					0.8% ~ 1.1	%
Fair value of plan assets	(B)		546,624			(46,007	)		592,631
Prepaid pension cost	(C)		262,799			23,681			239,117
Reserve for retirement benefits	(D)		—			—			—
Total amount unrecognized	(A) - (B) + (C) - (D)		57,800			91,450			(33,649	)
Unrecognized net actuarial loss			55,460			83,681			(28,220	)
Unrecognized prior service cost			2,340			7,768			(5,428	)

(2) Net periodic cost

		(in millions of yen)
		For the fiscal year ended March 31, 2016 (A)			Increase (Decrease) (A) - (B)			For the fiscal year ended March 31, 2015 (B)
Net periodic cost of retirement benefits			(15,586	)		(7,151	)		(8,434	)
Service cost			6,375			777			5,597
Interest cost			3,309			(744	)		4,053
Expected return on plan assets			(24,102	)		(2,419	)		(21,683	)
Amortization of unrecognized prior service cost			(3,698	)		209			(3,908	)
Amortization of unrecognized net actuarial loss			2,089			(4,668	)		6,757
Other			441			(307	)		748

Mitsubishi UFJ Financial Group, Inc.

(Reference)

1. Exposure to “Securitized Products and Related Investments”

Our exposure to securitized products and related investments as of the end of March 2016 is outlined below. (Figures are on a managerial basis and rounded off to billion yen or to the second decimal point of trillion yen)

1.	Balance and net unrealized gains (losses)

(1)	The balance as of the end of March 2016 was ¥2.95 trillion in total, a decrease of ¥0.44 trillion from the balance as of the end of March 2015, mainly due to a decrease in CLOs.

(2)	Net unrealized losses were ¥19 billion, worsened by ¥16 billion compared to the end of March 2015.


	(¥bn)
												of which securities being held to maturity²
	Balance¹		Change from end of March 2015			Net unrealized gains (losses)			Change from end of March 2015			Balance		Net unrealized gains (losses)
RMBS		23		2			0			(4	)		0		0
Sub-prime RMBS		0		0			0			0			0		0
CMBS		362		(44	)		4			1			195		1
CLOs		2,544		(334	)		(23	)		(10	)		1,534		(13	)
Other securitized products (card, etc.)		23		(63	)		0			(3	)		16		0
CDOs		0		0			0			0			0		0
Sub-prime ABS CDOs		0		0			0			0			0		0
SIV		0		0			0			0			0		0

Total		2,951		(439	)		(19	)		(16	)		1,744		(12	)

1.	Balance is the amount after impairment and before deducting net unrealized gains (losses).

The above table does not include mortgage-backed securities arranged and guaranteed by U.S. government sponsored enterprises, etc., Japanese RMBS such as Japanese Housing Finance Agency securities, and products held by funds such as investment trusts. These are also applicable to the tables in this document.

Following the publication of “Tentative Solution on Reclassification of Debt Securities” (Practical Issue Task Force No.26, The Accounting Standards Board of Japan, December 5, 2008), some of our securitized products were reclassified into “securities being held to maturity” from “securities available for sale” at and after the end of January 2009. The balance and net unrealized gains (losses) of the securities being held to maturity in the above table are based on book value before reclassification.

2.	Distribution by rating

(1)	AAA-rated products accounted for 89% of our investments in securitized products as of the end of March 2016, an increase of 2 percentage points from the end of March 2015.

(2)	AAA and AA-rated products accounted for 99% of our investments in securitized products.


	(¥bn)
	AAA			AA			A			BBB			BB or lower			Unrated			Total
RMBS		10			1			0			8			4			0			23
Sub-prime RMBS		0			0			0			0			0			0			0
CMBS		138			223			0			0			0			1			362
CLOs		2,447			69			26			1			0			0			2,544
Other securitized products (card, etc.)		20			0			2			0			0			0			23
CDOs		0			0			0			0			0			0			0
Sub-prime ABS CDOs		0			0			0			0			0			0			0
SIV		0			0			0			0			0			0			0

Total		2,615			293			29			9			4			1			2,951

Percentage of total		89	%		10	%		1	%		0	%		0	%		0	%		100	%
Percentage of total (End of March 2015)		87	%		10	%		1	%		0	%		0	%		1	%		100	%

Mitsubishi UFJ Financial Group, Inc.

3.	Credit exposure related to leveraged loan (LBO loan)

(1)	We are not engaged in origination or distribution of securitized products relating to LBO loans, and therefore, there is no balance of LBO loans for securitization.

(2)	The following table shows the balances of LBO loans as of the end of March 2016.


	(¥bn)
	Americas		Europe		Asia		Japan		Total		Change from end of March 2015
LBO Loan³ (Balance on a commitment basis)		28		138		0		449		615		141
Balance on a booking basis		25		124		0		419		568		162

³ Includes balance after refinancing. (Figures are rounded off.)

4.	Special Purpose Entities (SPEs)

(1)	We are engaged in sponsoring ABCP issuance for securitizing our clients’ assets.

(2)	The balance of assets purchased by ABCP conduits (special purpose companies for issuing ABCP) as of the end of March 2016 was ¥4.67 trillion (including ¥2.53 trillion in overseas).

(3)	The purchased assets are mainly receivables.

End


RMBS	:	Asset-backed securities collateralized by residential mortgages
CMBS	:	Asset-backed securities collateralized by commercial mortgages
CLOs	:	Collateralized loan obligations backed by whole commercial loans, revolving credit facilities, or letters of credit
CDOs	:	Structured credit securities backed by a pool of securities, loans, or credit default swaps
ABS CDOs	:	Collateralized debt obligations backed by asset backed securities
SIVs	:	Investment companies established mainly for gaining profit margin by raising funds through subordinated notes and short-term CPs, etc. and investing in relatively long-term securitized products and bonds, etc.
LBO Loans	:	Loans collateralized by assets and/or future cash flows of an acquired company
ABCP	:	Commercial papers issued by a Special Purposed Company (SPC) collateralized by receivables

Mitsubishi UFJ Financial Group, Inc.

(Reference)

2. Financial Statements

BTMU Non-consolidated

(1) Non-consolidated Balance Sheets


(in millions of yen)	As of March 31, 2015			As of March 31, 2016
Assets:
Cash and due from banks		33,122,906			36,988,806
Call loans		274,077			196,063
Receivables under resale agreements		29,243			47,258
Receivables under securities borrowing transactions		341,200			446,292
Monetary claims bought		3,727,386			3,822,799
Trading assets		5,764,317			6,224,030
Money held in trust		31,132			57,656
Securities		52,873,408			48,913,432
Loans and bills discounted		82,740,384			86,691,727
Foreign exchanges		2,013,104			1,529,192
Other assets		6,224,547			7,881,852
Tangible fixed assets		873,973			858,747
Intangible fixed assets		398,550			380,570
Prepaid pension costs		225,683			258,110
Customers’ liabilities for acceptances and guarantees		6,657,095			6,630,945
Allowance for credit losses		(644,579	)		(665,588	)

Total assets		194,652,431			200,261,895

Mitsubishi UFJ Financial Group, Inc.


(in millions of yen)	As of March 31, 2015			As of March 31, 2016
Liabilities:
Deposits		124,590,909			131,986,582
Negotiable certificates of deposit		10,985,081			6,796,352
Call money		1,084,494			167,028
Payables under repurchase agreements		8,957,252			10,415,799
Payables under securities lending transactions		2,369,378			1,892,928
Commercial papers		1,265,562			1,445,681
Trading liabilities		4,344,146			4,868,717
Borrowed money		11,724,531			11,445,727
Foreign exchanges		1,694,556			2,331,337
Bonds payable		4,791,846			4,304,538
Other liabilities		4,902,001			6,576,505
Reserve for bonuses		28,161			27,423
Reserve for bonuses to directors		143			110
Reserve for retirement benefits		6,953			8,510
Reserve for loyalty award credits		1,217			1,348
Reserve for contingent losses		41,195			43,808
Deferred tax liabilities		585,351			567,867
Deferred tax liabilities for land revaluation		133,940			122,901
Acceptances and guarantees		6,657,095			6,630,945

Total liabilities		184,163,819			189,634,113

Net assets:
Capital stock		1,711,958			1,711,958
Capital surplus		3,878,275			3,878,275
Capital reserve		1,711,958			1,711,958
Other capital surplus		2,166,317			2,166,317
Retained earnings		3,066,001			3,231,459
Revenue reserve		190,044			190,044
Other retained earnings		2,875,957			3,041,414
Funds for retirement benefits		2,432			2,432
Other reserve		718,196			718,196
Earned surplus brought forward		2,155,328			2,320,785
Treasury stock		(645,700	)		(645,700	)

Total shareholders’ equity		8,010,535			8,175,992

Net unrealized gains (losses) on other securities		2,086,911			1,794,305
Net deferred gains (losses) on hedging instruments		155,143			423,084
Land revaluation excess		236,022			234,399

Total valuation and translation adjustments		2,478,076			2,451,789

Total net assets		10,488,611			10,627,781

Total liabilities and net assets		194,652,431			200,261,895

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

(2) Non-consolidated Statements of Income


(in millions of yen)	For the fiscal year ended March 31, 2015		For the fiscal year ended March 31, 2016
Ordinary income		2,856,450		2,925,593
Interest income		1,600,411		1,582,079
Interest on loans and bills discounted		986,729		960,297
Interest and dividends on securities		472,622		471,589
Fees and commissions		676,444		665,589
Trading income		127,622		136,836
Other business income		330,096		354,684
Other ordinary income		121,876		186,403
Ordinary expenses		1,953,818		2,061,857
Interest expenses		364,034		419,577
Interest on deposits		112,059		141,389
Fees and commissions		163,039		167,634
Other business expenses		100,188		134,752
General and administrative expenses		1,202,730		1,145,579
Other ordinary expenses		123,825		194,313

Ordinary profits		902,632		863,736

Extraordinary gains		3,376		39,371
Extraordinary losses		45,745		18,405

Income before income taxes		860,263		884,702

Income taxes - current		269,710		262,781
Income taxes - deferred		18,775		35,854

Total taxes		288,485		298,635

Net income		571,778		586,066

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

(1) Non-consolidated Balance Sheets


(in millions of yen)	As of March 31, 2015			As of March 31, 2016
Assets:
Cash and due from banks		4,445,069			6,590,057
Call loans		129,117			240,231
Receivables under securities borrowing transactions		—			886,878
Monetary claims bought		1,383			523
Trading assets		438,754			372,594
Money held in trust		13,256			13,040
Securities		17,186,742			17,426,047
Loans and bills discounted		12,609,827			13,192,538
Foreign exchanges		24,891			36,875
Other assets		654,237			723,209
Tangible fixed assets		148,449			150,154
Intangible fixed assets		53,216			57,496
Prepaid pension costs		239,117			262,799
Customers’ liabilities for acceptances and guarantees		365,822			405,141
Allowance for credit losses		(38,549	)		(37,084	)

Total assets		36,271,336			40,320,504

Mitsubishi UFJ Financial Group, Inc.


(in millions of yen)	As of March 31, 2015			As of March 31, 2016
Liabilities:
Deposits		12,741,410			13,345,415
Negotiable certificates of deposit		4,837,879			4,573,223
Call money		1,354,566			193,932
Payables under repurchase agreements		5,849,069			5,205,060
Payables under securities lending transactions		2,558,657			1,926,430
Commercial papers		516,964			628,243
Trading liabilities		160,122			150,560
Borrowed money		1,851,860			2,110,470
Foreign exchanges		3,439			418
Short-term bonds payable		79,995			126,993
Bonds payable		687,935			847,129
Due to trust accounts		1,796,031			7,152,449
Other liabilities		961,027			1,150,631
Reserve for bonuses		4,319			4,564
Reserve for bonuses to directors		67			41
Reserve for contingent losses		7,146			7,632
Deferred tax liabilities		289,642			254,316
Deferred tax liabilities for land revaluation		4,728			4,336
Acceptances and guarantees		365,822			405,141

Total liabilities		34,070,687			38,086,991

Net assets:
Capital stock		324,279			324,279
Capital surplus		412,315			422,083
Capital reserve		250,619			250,619
Other capital surplus		161,695			171,464
Retained earnings		858,520			943,842
Revenue reserve		73,714			73,714
Other retained earnings		784,806			870,128
Funds for retirement benefits		710			710
Other reserve		138,495			138,495
Earned surplus brought forward		645,601			730,923

Total shareholders’ equity		1,595,114			1,690,205

Net unrealized gains (losses) on other securities		665,776			614,205
Net deferred gains (losses) on hedging instruments		(57,003	)		(67,592	)
Land revaluation excess		(3,237	)		(3,305	)

Total valuation and translation adjustments		605,534			543,306

Total net assets		2,200,649			2,233,512

Total liabilities and net assets		36,271,336			40,320,504

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

(2) Non-consolidated Statements of Income


(in millions of yen)	For the fiscal year ended March 31, 2015			For the fiscal year ended March 31, 2016
Ordinary income		531,226			571,346
Trust fees		86,728			90,917
Interest income		237,600			250,600
Interest on loans and bills discounted		91,429			92,660
Interest and dividends on securities		139,435			149,543
Fees and commissions		127,346			134,922
Trading income		25,373			21,536
Other business income		19,170			46,704
Other ordinary income		35,006			26,664
Ordinary expenses		321,147			364,838
Interest expenses		65,559			86,686
Interest on deposits		22,291			23,442
Fees and commissions		29,067			30,115
Trading expenses		—			518
Other business expenses		26,485			48,652
General and administrative expenses		188,518			185,319
Other ordinary expenses		11,516			13,545

Ordinary profits		210,078			206,507

Extraordinary gains		204			14,548
Extraordinary losses		8,874			2,443

Income before income taxes		201,408			218,612

Income taxes - current		62,411			51,881
Income taxes - deferred		(1,760	)		6,749

Total taxes		60,651			58,630

Net income		140,757			159,981

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

(3) Statements of Trust Assets and Liabilities

Including trust assets under service-shared co-trusteeship


(in millions of yen)	As of March 31, 2015		As of March 31, 2016
Assets:
Loans and bills discounted		112,376		150,571
Securities		58,086,929		53,614,888
Beneficiary rights to the trust		49,353,240		53,719,802
Securities held in custody accounts		3,172,363		3,339,160
Monetary claims		10,619,079		9,369,779
Tangible fixed assets		10,805,072		11,636,006
Intangible fixed assets		192,554		193,150
Other claims		5,040,404		4,364,029
Call loans		2,307,474		103,070
Due from banking account		3,184,730		12,745,624
Cash and due from banks		3,449,102		4,474,306

Total		146,323,327		153,710,390

Liabilities:
Money trusts		23,452,525		20,470,160
Pension trusts		15,360,655		14,950,257
Property formation benefit trusts		8,340		8,033
Investment trusts		48,930,372		58,519,398
Money entrusted other than money trusts		3,218,827		3,463,944
Securities trusts		5,066,024		5,350,832
Monetary claim trusts		10,266,613		8,799,495
Equipment trusts		44,498		59,923
Land and fixtures trusts		82,369		65,884
Composite trusts		39,893,100		42,022,461

Total		146,323,327		153,710,390


Note: The table shown above includes master trust assets under the service-shared co-trusteeship between MUTB and The Master Trust Bank of Japan, Ltd.

Detailed information for “Money trust” with contracts indemnifying the principal amounts (including trusts for which beneficiary interests are re-entrusted)

(in millions of yen)	As of March 31, 2015		As of March 31, 2016
Assets:
Loans and bills discounted		27,008		23,111
Securities		104,557		116,704
Other		1,624,592		6,985,751

Total		1,756,157		7,125,567

Liabilities:
Principal		1,738,140		7,111,058
Allowance for bad debts		81		69
Other		17,936		14,439

Total		1,756,157		7,125,567

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

(4) Major Items


(in millions of yen)	As of March 31, 2015		As of March 31, 2016
Total funds		56,400,812		53,347,090

Deposits		12,741,410		13,345,415
Negotiable certificates of deposit		4,837,879		4,573,223
Money trusts		23,452,525		20,470,160
Pension trusts		15,360,655		14,950,257
Property formation benefit trusts		8,340		8,033

Loans and bills discounted		12,722,204		13,343,110

Banking account		12,609,827		13,192,538
Trust account		112,376		150,571

Investment securities		75,273,672		71,040,936

Note:

The table shown above includes master trust assets under the service-shared co-trusteeship between MUTB and The Master Trust Bank of Japan, Ltd.