Mitsubishi UFJ Financial Group Bank of Tokyo … The Bank of Tokyo-Mitsubishi UFJ, Ltd. Introduction...
Transcript of Mitsubishi UFJ Financial Group Bank of Tokyo … The Bank of Tokyo-Mitsubishi UFJ, Ltd. Introduction...
June 2011
Mitsubishi UFJ Financial Group
Bank of Tokyo-Mitsubishi UFJ
Overview of Global Business
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Introduction
�Mitsubishi UFJ Financial Group (MUFG) is one of the world’s largest and most
diversified financial groups with total assets of JPY204 trillion as of March 31, 2010.
�The group comprises five primary operating companies, including The Bank of Tokyo-
Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust and Banking Corporation, Mitsubishi UFJ
Morgan Stanley Securities Co., Ltd., Mitsubishi UFJ NICOS Co., Ltd. and Mitsubishi
UFJ Lease & Finance Company Limited.
�MUFG’s services include commercial banking, trust banking, securities, credit cards,
consumer finance, asset management, leasing and many more fields of financial
services.
�The group has the largest overseas network of any Japanese bank, comprising offices
and subsidiaries, including Union Bank, in more than 40 countries and 500 offices
around the world.
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Holding Company
Mitsubishi UFJ Financial Group (“MUFG”)
Mitsubishi UFJ Securities
Holdings (“MUS”)
Mitsubishi UFJ Trust and
Banking (“MUTB”)Bank of Tokyo-Mitsubishi UFJ
(“BTMU”)
MUFG business platform
�Leading comprehensive financial group, comprising a diverse range of leading
companies in a broad range of financial businesses.
�Operations are divided among the following core group companies.
Union Bank (“UB”)
Mitsubishi UFJ
Morgan Stanley Securities
Mitsubishi UFJ
Securities International
Bank of Tokyo-Mitsubishi UFJ: Japan’s largest bank by market value
Mitsubishi UFJ Trust and Banking: Leading trust bank in Japan
Mitsubishi UFJ Securities Holdings: One of the largest securities firms in Japan
Union Bank: California based commercial bank (wholly owned by BTMU)
100% 100% 100%
Mitsubishi UFJ
Securities USA
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Ratings
* Deposit rating only
�MUFG and major group companies are rated by the world leading rating agencies with
favorable ratings.
F1
A
A-1
A+
P-1*
Aa2
Bank of Tokyo-
Mitsubishi UFJ
F1
A
A-1
A+
P-1*
Aa2*
Mitsubishi UFJ
Trust & Banking
-
-
-
-
P-1
A1
Mitsubishi UFJ
Securities Holdings
-Short-Term
-Long-Term
FITCH
-Short-Term
ALong-Term
S&P
-Short-Term
-Long-Term
Moody’s
Mitsubishi UFJ
Financial Group
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
MUFG global network
�Solid customer base; approximately 40 million retail accounts and 400,000 corporate
clients with over 500 locations in more than 40 countries
AmericasVancouver
Toronto
Montreal
Seattle
San Francisco
Los Angeles
Minnesota
Chicago
Kentucky
Atlanta
Dallas
Houston
Boston
New York
Washington
Grand Cayman
Mexico City
Caracas
Bogota
Lima
Rio de Janeiro
San Paulo
Buenos Aires
Santiago
Asia & OceaniaSydney Chengdu
Melbourne Wuxi
Auckland Guangzhou
Jakarta Shenzhen
Labuan Shanghai
Kuala Lumpur Tianjin
Singapore Beijing
Bangkok Shenyang
Ho Chi Minh Tianjin Binhai
Hanoi Dalian
Manila Guangzhou Nansha
Yangon Shanghai Hongqiao
Chennai
Mumbai
New Delhi
Karachi
Dhaka
Hong Kong
Taipei
Seoul
EMEALondon
Birmingham
Paris
Madrid
Lisbon
Barcelona
Brussels
Luxembourg
Amsterdam
Geneva
Dusseldorf
Munich
Frankfurt
Hamburg
Berlin
Warsaw
Prague
Vienna
St. Petersburg
Moscow
Istanbul
Cairo
Johannesburg
Tehran
Bahrain
Doha
Abu Dhabi
Dubai
Bank of Tokyo-Mitsubishi UFJ
Mitsubishi UFJ Securities Holdings
Mitsubishi UFJ Trust and Banking
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
At a glance (1)
(25.04)29.5739.95Earning per shares (in JPY)
(3.97%)4.92%6.89%ROE
5.43
11.33%
14.89%
1.68%
124,144.3
79,995.0
206,227.0
583.0
3,522.5
March 2011
92,056.884,880.6Loans and bills discounted
120,149.5123,891.9Deposits
1.24%1.50%NPL ratio
11.77%14.87%BIS risk-adjusted capital ratio
7.76%10.63%Tier 1 ratio
5.546.93Market Capitalization (in trillion of JPY)
198,733.9204,106.9Total assets
(256.9)388.7Net income
3.272.93,600.4Gross profit
March 2009March 2010(in billions of JPY)
�Consolidated financial summary and data of MUFG* * Under Japanese GAAP (not U.S. GAAP)
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
At a glance (2)
Total Assets
Loans
Deposits
Source: Banks IR, BTMU Economic Research Office
(in trillions of JPY, as of Dec 2010)
202.6
77.2
118.8
MUFG
BNP Paribas
RBS BOA Credit
AgricoleJP Morgan
Chase
Barclays
JapanPostBankHSBC
DB
ICBC
Santander
LloydsBankingGroup
HSBC MUFGBOA
BNP
ParibasRBS
BOC
ChinaConstruction
Bank
Japan Post Bank
MUFGICBC
JP Morgan
Chase
Agricultural
Bank of
China
BOCHSBC
BOA SMFG
ChinaConstruction
Bank
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Financial Highlights ~ MUFG performance
3,5243,6003,727
3,5133,273
Gross Profit (in billions of JPY)
583
389
881
637
(257)
Net Income (in billions of JPY)
39.95
86.79
61.00
(25.04)
29.57
Earnings per share (in JPY)
FY 06 FY 07 FY 08 FY 09
6.89
11.78
7.99
(3.97)
4.92
ROE (%)
FY 06 FY 07 FY 08 FY 09
FY 06 FY 07 FY 08 FY 09
FY 06 FY 07 FY 08 FY 09
Note: FY 10 ends on March 31, 2011
FY 10 FY 10
FY 10
FY 10
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
226.2 261.8
65.8 59.8
240.5 236.7
421.2 433.5
447.0 402.5
0
400
800
1,200
1,600
Mar 2010 Mar 2011
Domestic Corporate
31%
Trust Assets
4%
Global Markets, Others
19%
Domestic Retail
29%
Overseas
17%
Business Portfolio
�Change in MUFG net operating profit by business segment
(in billions of JPY)
1,400.6 1,394.4
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Geographical Contribution ~ Profit by region
BTMU gross profit by region
EMEA
Union Bank
(in billions of JPY)
*FY10 ends March 31, 2011
0
350
700
FY07 FY08 FY09 FY10
BTMU net operating profit by region
Asia (ex. Japan)
Americas
0
200
400
FY07 FY08 FY09 FY10
54% 47% 45% 47%
11%
15% 15%
14%15%
16%18%
17%
21%
23%
22%
22%
43% 35% 31% 32%
12%
18% 20% 18%15%
17%22% 20%
30%
30%
28% 29%
(in billions of JPY)
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Solid capital base
7.63% 7.76%
9.13%
10.63%11.57% 11.33%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
Sep 08 Mar 09 Sep 09 Mar 10 Sep 10 Mar 11
� MUFG has been committed to improving capital in terms of both quality and quantity
through appropriate and proactive capital management responding to changes in the
business environment
Tier 1 ratio
Change in risk-adjusted capital ratios (based on the Basel II standards)
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
2010 rankings ~Global CIB business
�Global CIB business has been an important pillar of MUFG’s sustainable growth strategy.
In 2010, MUFG performed well in the global debt markets.
10US loans - Bookrunners
4Latin America loans – Mandated arranger
10Asia loans (ex. Japan) – Mandated arranger
6Australia loans – Mandated arranger
3Global loans – Mandated arranger
4Project finance / EMEA – Mandated arrangers (incld. RBS assets)
8Project finance / Asia – Mandated arrangers
4US capital markets / high yield corporate - Co-Manager
1US capital markets / investment grade – Co-Manager
10Global Middle East bonds & loans - Bookrunners
1Project finance / Americas – Mandated arrangers
8Global project finance – Mandated arrangers
12Global investment banking – Top fee players
RankContents (Full year 2010 / Thomson Reuters)
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
League tables
Americas Project Finance
-Mandated Arrangers
Source: Thomson Reuters
(Proceeds, in millions of US$, 2010 full year)3,307
6,138
123,846
MUFG
SMFGSG Santander West LB
UniCredit
MizuhoScotia
Bank
ING
Credit
Agricole
CIB
State Bank of India
IDBI
Bank
Bank of
TaiwanAxis
Bank
MUFG
Infrastructure
Dev Finance
BNP
Paribas
SGSMFG
BOA
MUFG
JP Morgan
DB
Wells
Fargo RBS SMFG
Citi
Global Project Finance
-Mandated Arrangers
Global Syndicated Loans
-Mandated Arrangers
Credit
Agricole
CIB
Mizuho BNP
Paribas
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Global strategic investments and alliances
MUFG
Investment and
business alliance
(22.4%)*
Morgan StanleyU.S.
MUSBusiness allianceDaewoo SecuritiesKorea
Aberdeen
Union Bank
CIMB Group
Bank Nusantara
Parahyangan
Vietcombank
ICICI
Bank of China
Investment and
business alliance
(18.75%)
a wholly owned
subsidiary
Additional investment
(4.1%)
Investment
(15.2%)
Alliance
Business alliance
Investment and
business alliance
(0.2%)
MUTBScotland
BTMUU.S.
BTMUMalaysia
BTMUIndonesia
BTMUVietnam
MUSIndia
BTMUChina
�MUFG has a strong commitments to the world financial market. Since 2006, MUFG has
made some investments and alliances all over the world.
*MUFG and Morgan Stanley entered into an agreement to convert preferred stock into
common stock. The transaction is subject to certain closing conditions, including
receipt of required regulatory approvals in certain jurisdictions globally. MUFG will
own 22.4% of Morgan Stanley’s common stock and Morgan Stanley will be
applicable to the equity method of accounting for MUFG’s investment through the
transaction above
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Union Bank
�Union Bank is one of the largest regional banks headquartered in California, with
approximately 150 years of history. 400 branches, mainly in California, provide a solid
foundation and Union Bank is ranked 20th in the U.S. and 3rd in California in terms of total
deposits.
� In November 2008, BTMU completed the acquisition of all of the shares of UNBC (Union
Bank’s parent holding company) not owned by BTMU and as a result, UNBC became a
wholly owned indirect subsidiary of MUFG.
* Figures for FY2010 or as of the end of 2010
$985 billionNet business profits
$573 billion
$60 billion
$48 billion
$79 billion
c11,000
400
San Francisco
Net income
Total deposits
Total loans
Total assets
Employees
Branches
Head officeRevenue Breakdown (FY2010)
[by segments] [by account type]
Portfolio is well balanced between corporate and
retail segments.
Corporate
55%
Retail
40%
Others
5%
Net interest
income 73%
Fees &
commissions
16%
Trading, etc.
11%
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Strategic alliance with Morgan Stanley
Customers in the Americas
U.S. Loan Marketing
Joint Venture
Hedging needs
Customers of
Morgan Stanley
Hedge contracts
� Energy
� Metal
� Agriculture, etc.
Refer customers reciprocally
� Syndicated Loans
� Capital markets
� Derivatives, etc.
Joint marketing
Morgan Stanley MUFG Loan Partners,
LLC
Customers of
BTMU
Customers of
BTMU
Refer customers
50%
50%
E.g.:MUFG and MS jointly made a syndicated
loan proposal (USD 900MM) for an
EMEA oil company and built the
structure as joint arrangers (making use
of BTMU’s know-how in trade financing
and MS’s capability for commodities)
Referral fee
�On April 21 2011, agreed to convert MUFG’s outstanding convertible preferred stock in
Morgan Stanley into Morgan Stanley common stock. Move will further enhance Morgan
Stanley’s Tier 1 common capital and strengthen the two firms’ global strategic alliance.
Business Referral Arrangements
In Asia and EMEACommodities Referral
Agreement
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Comparison with other Japanese banks
Total assets
(No.)
(¥ tn)Loans Housing loans Overseas Loans
Domestic Deposits Gross profits/ Fees, Trust fees Number of offices Number of employees
(¥ tn) (¥ tn) (¥ tn)
(¥ tn) (No.)(¥ bn)
Gross profitsDomestic
Overseas
2033.2
2504.7
3522.5
768.5516.1
1079.8
0
1,000
2,000
3,000
4,000
MUFG SMFG
Of which: Net fees & commissions + trust fees
449 435
79 39 33
728
0
500
1,000
MUFG SMFG
108.8
71.8 73.0
36.635.6
0
20
40
60
80
100
120
140
MUFG SMFG
38,496
30,608
22,524
0
10,000
20,000
30,000
40,000
50,000
MUFG SMFG
160.8137.8
206.2
0
50
100
150
200
250
MUFG Mizuho
FG
SMFG
79.9
62.7 61.3
20
40
60
80
100
MUFG SMFG
11.4
14.4
17.3
0
5
10
15
20
MUFG SMFG
11.7
7.1 7.3
0
3
6
9
12
15
MUFG SMFG
Deposits outstanding
Individual depositsoutstanding
64.3
Mizuho
FG
Mizuho
FG
Mizuho
FG
Mizuho
FGMizuho
FG
Mizuho
FGMizuho
FG
Note: as of March 31, 2011, quoted from financial reports of each group
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
No.1Service
No.1 Reliability
No.1 Global Coverage
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The Bank of Tokyo-Mitsubishi UFJ, Ltd.
This document contains forward-looking statements in regard to forecasts, targets and plans of Mitsubishi UFJ Financial Group, Inc. (“MUFG”) and its group companies (collectively, “the group”). These forward-looking statements are based on information currently available to the group and are stated here on the basis of the outlook at the time that this document was produced. In addition, in producing these statements certain assumptions (premises) have been utilized. These statements and assumptions (premises) are subjective and may prove to be incorrect and may not be realized in the future. Underlying such circumstances are a large number of risks and uncertainties. Please see other disclosure and public filings made or will be made by MUFG and the other companies comprising the group, including the latest kessantanshin, financial reports, Japanese securities reports and annual reports, for additional information regarding such risks and uncertainties. The group has no obligation or intent to update any forward-looking statements contained in this document.
In addition, information on companies and other entities outside the group that is recorded in this document has been obtained from publicly available information and other sources. The accuracy and appropriateness of that information has not been verified by the group and cannot be guaranteed.
The financial information used in this document was prepared in accordance with accounting standards generally accepted in Japan, or Japanese GAAP.
This presentation paper does not constitute any commitment with respect to any transaction involving any party.
© 2011 The Bank Of Tokyo-Mitsubishi UFJ, Ltd. All rights reserved.