v3.25.2
Fair Value
 12 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value FAIR VALUE
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The guidance on fair value measurements also specifies a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable inputs, for example, the reporting entity’s own data. Based on the observability of the inputs used in the valuation techniques, the following three-level hierarchy is specified by the guidance:
•Level 1—Unadjusted quoted prices for identical instruments in active markets.
•Level 2—Observable inputs other than Level 1 prices for substantially the full term of the instruments, such as quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; other inputs that are observable; or market-corroborated inputs.
•Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the instruments.
A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
The tables in this note except for Estimated Fair Value of Financial Instruments include the portion of the assets and liabilities held for sale.
The MUFG Group has an established and documented process for determining fair values in accordance with the guidance. When available, quoted prices are used to determine fair value. If quoted prices are not available, fair value is based upon valuation techniques that use observable or unobservable inputs. The fair values of liabilities are determined by discounting future cash flows at a rate which incorporates the MUFG Group’s own creditworthiness. In addition, valuation adjustments may be made to ensure the financial instruments are recorded at fair value. These adjustments include, but are not limited to, amounts that reflect counterparty credit quality, funding cost, liquidity risk and model risk.
The following section describes the valuation techniques used by the MUFG Group to measure fair values of certain financial instruments. The discussion includes the general classification of such financial instruments in accordance with the fair value hierarchy, a brief explanation of the valuation techniques, the significant inputs to those valuation techniques, and any additional significant assumptions.
Trading Account Assets and Liabilities—Trading Account Securities
When quoted prices are available in an active market, the MUFG Group uses quoted prices to measure the fair values of securities and such securities are classified in Level 1 of the fair value hierarchy. Examples of Level 1 securities include certain Japanese and foreign government bonds, and marketable equity securities.
When quoted prices are available but the securities are not traded in active markets, such securities are classified in Level 2 of the fair value hierarchy. These securities include certain Japanese government agency bonds, Japanese prefectural and municipal bonds, foreign government and official institution bonds, corporate bonds, residential mortgage-backed securities and equity securities.
As for quoted prices provided by third-party vendors, independent price verification is performed by the MUFG group to determine the quality and reliability of the data for fair value measurement purposes. As part of its independent price verification procedures, the MUFG group obtains a sufficient understanding of the vendors’ pricing sources and valuation processes. Further, the MUFG group performs internal price verification procedures to ensure that the quoted prices provided from the third-party vendors are reasonable. Such verification procedures include comparison of pricing sources and analysis of variances beyond certain thresholds.
When quoted prices are not available, the MUFG Group estimates fair values by using an internal model, quoted prices of securities with similar characteristics or non-binding prices obtained from independent third parties. Such securities include certain commercial paper, corporate bonds, asset-backed securities and residential mortgage-backed securities. For commercial paper, the MUFG Group estimates fair value using discounted cash flows. The cash flows are estimated in accordance with the terms of contracts and discounted using a discount rate based on the yield curve estimated from market interest rates appropriate to the securities. Commercial paper is generally classified in Level 2 of the fair value hierarchy. For corporate bonds, the MUFG Group estimates fair value using discounted cash flows. The cash flows are estimated in accordance with the terms of contracts and discounted using discount rates applicable to the maturity of the bonds, which are adjusted to reflect credit risk of issuers. Credit risk of issuers is reflected in the future cash flows being discounted by the interest rate applicable to the maturity of the bonds. Corporate bonds are classified in either Level 1, Level 2 or Level 3 of the fair value hierarchy, depending primarily on the significance of the adjustments to the unobservable input of credit worthiness. For residential mortgage-backed securities, the MUFG Group estimates fair value using non-binding prices obtained from independent third parties. Residential mortgage-backed securities are classified as level 2 unless otherwise significant unobservable input is used for the valuation.
When there is less liquidity for securities or significant inputs used in the fair value measurements are unobservable, such securities are classified in Level 3 of the fair value hierarchy. Examples of such Level 3 securities include CLOs backed by general corporate loans, which are classified in asset-backed securities. The fair value of CLOs is measured by weighing the estimated fair value amounts from the internal model and the non-binding quotes from the independent broker-dealers. The weight of the quotes from independent broker-dealers is determined based on the result of inquiries with the broker-dealers to understand their basis of fair value calculation with consideration given to transaction volume. Key inputs to the internal model include projected cash flows through an analysis of underlying loans, probability of default which incorporates market indices such as LCDX (which is an index of loan credit default swaps), prepayment rates and discount rates reflecting liquidity premiums based on historical market data.
Trading Account Assets and Liabilities—Derivatives
Exchange-traded derivatives valued using quoted prices are classified in Level 1 of the fair value hierarchy. Examples of Level 1 derivatives include stock futures index and interest rate futures. However, the majority of the derivative contracts entered into by the MUFG Group are traded over-the-counter and valued using valuation techniques as there are no quoted prices for such derivatives. The valuation techniques and inputs vary depending on the types and contractual terms of the derivatives. The principal valuation techniques used to value derivatives include discounted cash flows, the Black-Scholes model and the Hull-White model. The key inputs include interest rate yield curve, foreign currency exchange rate, volatility, credit quality of the counterparty or the MUFG Group and spot price of the underlying. These models are commonly accepted in the financial industry and key inputs to the models are generally readily observable in an active market. Derivatives valued using such valuation techniques and inputs are generally classified in Level 2 of the fair value hierarchy. Examples of such Level 2 derivatives include plain-vanilla interest rate swaps, foreign currency forward contracts and currency option contracts.
Derivatives that are valued using valuation techniques with significant unobservable inputs are classified in Level 3 of the fair value hierarchy. Examples of Level 3 derivatives include long-term interest rate or currency swaps and certain credit derivatives, where significant inputs such as volatility and correlation of such inputs are unobservable.
Investment Securities
Investment securities include Available-for-sale debt and equity securities, whose fair values are measured using the same valuation techniques as the trading account securities described above. Investment securities also include investments in nonmarketable equity securities which are subject to specialized industry accounting principles. The valuation of such nonmarketable equity securities involves significant management judgment due to the absence of quoted prices, lack of liquidity and the long term nature of these investments. Further, there may be restriction on transfers of nonmarketable equity securities. The MUFG Group values such securities initially at transaction price and subsequently adjusts such valuations, considering evidence such as current sales transactions of similar securities, initial public offerings, recent equity issuances and change in financial condition of the investee company. Nonmarketable equity securities are included in Level 3 of the fair value hierarchy.
Other Assets
Other assets measured at fair value mainly consist of securities received as collateral that may be sold or repledged under securities lending transactions. The securities received as collateral under lending transactions mainly consist of certain Japanese and foreign government bonds which are valued using the valuation techniques previously described in the section entitled “Trading Accounts Assets and Liabilities—Trading Account Securities” above.
Obligations to Return Securities Received as Collateral
Obligations to return securities received as collateral under securities lending transactions included in Other liabilities are measured at the fair values of the securities received as collateral. The securities received as collateral consist primarily of certain Japanese and foreign government bonds, whose fair values are measured using the valuation techniques described in the “Trading Account Assets and Liabilities—Trading Account Securities” above.
Other Short-term Borrowings and Long-term Debt
Certain short-term borrowings and long-term debt are measured at fair value due to the election of the fair value option. The fair value of these instruments are measured principally based on the discounted cash flows. Where the inputs into the valuation techniques are mainly based on observable inputs, these instruments are classified in Level 2 of the fair value hierarchy. Where significant inputs are unobservable, they are classified in Level 3 of the fair value hierarchy.
Market Valuation Adjustments
Counterparty credit risk adjustments are made to certain financial assets such as over-the-counter derivatives to factor in counterparty credit exposure. As not all counterparties have the same credit risk, it is necessary in calculating credit risk adjustments, to take into account probability of a default event occurring for each counterparty, which is primarily derived from observed or estimated spreads on credit default swaps. In addition, the counterparty credit risk adjustment takes into account the effect of credit risk mitigation such as pledged collateral and the legal right of offset with the counterparty.
Funding valuation adjustment (“FVA”) represents the adjustment to reflect the impact of uncollateralized funding. The FVA is calculated using the MUFG’s market funding spread and the funding exposure of any uncollateralized component of the over-the-counter derivative instrument. The MUFG Group’s FVA framework incorporates key inputs, such as the expected future funding requirements arising from the MUFG Group’s positions with each counterparty and collateral arrangements, and the estimated market funding cost in the principal market, which considers the MUFG Group’s credit risk.
Liquidity adjustments are applied mainly to the instruments classified in Level 3 of the fair value hierarchy when recent observable prices of such instruments are not available or such instruments are traded in inactive or less active markets. The liquidity adjustments are based on the facts and circumstances of the markets including the availability of external quotes and the time since the latest available quote.
Model valuation adjustments such as unobservable parameter valuation adjustments may be provided when the fair values of instruments are determined based on internally developed valuation techniques. Examples of such adjustments include adjustments to the model price of certain derivatives where parameters such as correlation are unobservable. Unobservable parameter valuation adjustments are applied to mitigate the uncertainty inherent in the resulting valuation estimate.
Investments in Certain Entities That Calculate Net Asset Value per Share
The MUFG Group has interests in investment funds mainly private equity funds, and real estate funds that are measured at fair value on a recurring or nonrecurring basis.
Private equity funds have specific investment objectives in connection with their acquisition of equity interests, such as providing financing and other support to start-up businesses, medium and small entities in a particular geographical area, and to companies with certain technology or companies in a high-growth industry. Generally, these investments cannot be redeemed with the funds, and the return of invested capital and its gains are derived from distributions received upon the liquidation of the underlying assets of the fund, the timing of which is uncertain.
Real estate funds invest globally and primarily in real estate companies, debt recapitalizations and direct property. These investments are generally not redeemable with the funds. Distributions from each fund will be received as the underlying investments of the funds are liquidated, the timing of which is uncertain.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present the financial instruments carried at fair value by level within the fair value hierarchy as of March 31, 2024 and 2025:
At March 31, 2024 (As Adjusted)Level 1Level 2Level 3Fair Value
 (in millions)
Assets    
Trading account assets:    
Trading securities(1)
¥18,626,261 ¥13,463,967 ¥2,041,954 ¥34,132,182 
Debt securities
Japanese national government and Japanese government agency bonds6,278,228 395,745 — 6,673,973 
Japanese prefectural and municipal bonds— 91,683 — 91,683 
Foreign government and official institution bonds10,170,757 668,715 101 10,839,573 
Corporate bonds8,937 2,723,957 — 2,732,894 
Residential mortgage-backed securities— 5,422,286 — 5,422,286 
Asset-backed securities— 1,374,191 1,352,755 2,726,946 
Other debt securities— 2,599 536,846 539,445 
Commercial paper— 1,609,441 — 1,609,441 
Equity securities(2)
2,168,339 1,175,350 152,252 3,495,941 
Trading derivative assets90,334 15,099,648 151,242 15,341,224 
Interest rate contracts14,143 9,381,056 110,013 9,505,212 
Foreign exchange contracts10,473 5,623,544 12,647 5,646,664 
Equity contracts65,718 48,606 8,647 122,971 
Commodity contracts— 391 18,282 18,673 
Credit derivatives— 46,047 1,148 47,195 
Other(8)
— 4 505 509 
Trading loans(3)
— 31,542 — 31,542 
Investment securities:
Available-for-sale debt securities23,569,981 7,648,181 204,805 31,422,967 
Japanese national government and Japanese government agency bonds21,336,860 1,830,540 — 23,167,400 
Japanese prefectural and municipal bonds— 1,045,991 — 1,045,991 
Foreign government and official institution bonds2,233,121 1,069,430 — 3,302,551 
Corporate bonds— 1,021,296 5,172 1,026,468 
Residential mortgage-backed securities— 1,229,510 15 1,229,525 
Asset-backed securities— 1,114,195 132,951 1,247,146 
Other debt securities— 337,219 66,667 403,886 
Equity securities5,400,634 70,172 87,814 5,558,620 
Marketable equity securities5,400,634 70,172 — 5,470,806 
Nonmarketable equity securities(4)
— — 87,814 87,814 
Other(5)
1,175,125 1,226,942 79,154 2,481,221 
Total¥48,862,335 ¥37,540,452 ¥2,564,969 ¥88,967,756 

At March 31, 2024 (As Adjusted)Level 1 Level 2 Level 3 Fair Value
 (in millions)
Liabilities       
Trading account liabilities:       
Trading securities sold, not yet purchased¥103,705 ¥4,508 ¥— ¥108,213 
Trading derivative liabilities117,567 16,261,406 92,336 16,471,309 
Interest rate contracts30,997 10,594,827 70,527 10,696,351 
Foreign exchange contracts954 5,532,241 2,449 5,535,644 
Equity contracts85,616 72,337 389 158,342 
Commodity contracts— — 18,327 18,327 
Credit derivatives— 61,999 488 62,487 
Other(8)
— 2 156 158 
Obligation to return securities received as collateral(6)
6,955,707 195,622 71,399 7,222,728 
Other(7)
— 189,649 6,486 196,135 
Total¥7,176,979 ¥16,651,185 ¥170,221 ¥23,998,385 
At March 31, 2025Level 1Level 2Level 3Fair Value
 (in millions)
Assets    
Trading account assets:    
Trading securities(1)
¥20,407,859 ¥15,222,947 ¥2,746,696 ¥38,377,502 
Debt securities
Japanese national government and Japanese government agency bonds6,140,726 754,529 — 6,895,255 
Japanese prefectural and municipal bonds— 288,472 — 288,472 
Foreign government and official institution bonds11,602,182 774,775 — 12,376,957 
Corporate bonds4,755 2,717,719 175,464 2,897,938 
Residential mortgage-backed securities— 7,313,220 — 7,313,220 
Asset-backed securities— 1,279,679 1,816,507 3,096,186 
Other debt securities— 61,578 612,102 673,680 
Commercial paper— 1,224,538 — 1,224,538 
Equity securities(2)
2,660,196 808,437 142,623 3,611,256 
Trading derivative assets58,729 20,597,301 77,897 20,733,927 
Interest rate contracts12,565 14,860,818 22,298 14,895,681 
Foreign exchange contracts1,416 5,592,040 27,345 5,620,801 
Equity contracts44,748 94,288 6,961 145,997 
Commodity contracts— 293 19,892 20,185 
Credit derivatives— 49,861 757 50,618 
Other(8)
— 1 644 645 
Trading loans(3)
— 28,447 — 28,447 
Investment securities:
Available-for-sale debt securities23,867,794 6,347,624 197,750 30,413,168 
Japanese national government and Japanese government agency bonds21,152,903 930,954 — 22,083,857 
Japanese prefectural and municipal bonds— 309,998 — 309,998 
Foreign government and official institution bonds2,714,891 1,363,578 — 4,078,469 
Corporate bonds— 898,304 5,579 903,883 
Residential mortgage-backed securities— 1,122,236 15 1,122,251 
Asset-backed securities— 1,269,867 142,284 1,412,151 
Other debt securities— 452,687 49,872 502,559 
Equity securities3,779,986 52,002 100,762 3,932,750 
Marketable equity securities(9)
3,779,986 52,002 — 3,831,988 
Nonmarketable equity securities(4)
— — 100,762 100,762 
Other(5)
973,130 1,757,936 8,100 2,739,166 
Total¥49,087,498 ¥44,006,257 ¥3,131,205 ¥96,224,960 
At March 31, 2025Level 1 Level 2 
Level 3
 Fair Value
 (in millions)
Liabilities       
Trading account liabilities:       
Trading securities sold, not yet purchased¥389,643 ¥2,462 ¥— ¥392,105 
Trading derivative liabilities48,534 20,995,246 67,027 21,110,807 
Interest rate contracts28,532 15,998,172 44,232 16,070,936 
Foreign exchange contracts2,197 4,900,685 2,026 4,904,908 
Equity contracts17,805 43,467 358 61,630 
Commodity contracts— 1 19,926 19,927 
Credit derivatives— 52,921 430 53,351 
Other(8)
— — 55 55 
Obligation to return securities received as collateral(6)
5,754,639 292,116 — 6,046,755 
Other(7)
— 267,202 (49,328)217,874 
Total¥6,192,816 ¥21,557,026 ¥17,699 ¥27,767,541 
Notes:
(1)Includes securities measured under the fair value option.
(2)Excludes certain investments valued at net asset value of private equity and other funds, whose fair values were ¥264,458 million and ¥277,252 million at March 31, 2024 and 2025, respectively. The amounts of unfunded commitments related to these private equity and other funds were ¥134,429 million and ¥276,433 million at March 31, 2024 and 2025, respectively.
(3)Includes loans measured under the fair value option.
(4)Excludes certain investments valued at net asset value of real estate funds and private equity and other funds, whose fair values at March 31, 2024 were ¥37,207 million and ¥53,324 million, respectively, and those at March 31, 2025 were ¥40,477 million and ¥56,334 million, respectively. The amounts of unfunded commitments related to these real estate funds and private equity and other funds at March 31, 2024 were ¥869 million and ¥250 million, respectively, and those at March 31, 2025 were nil and ¥13,650 million, respectively.
(5)Includes securities received as collateral that may be sold or repledged under securities lending transactions.
(6)Included in Other liabilities.
(7)Mainly includes other short-term borrowings, long-term debt, and bifurcated embedded derivatives carried at fair value.
(8)Includes certain derivatives such as earthquake derivatives.
(9)Includes equity securities subject to contractual sale restrictions, with a total fair value of ¥43,654 million at March 31, 2025. The contractual restriction of these securities a lock-up agreement, a market standoff agreement, or the result of a provision within a separate agreement between certain shareholders, and the range of remaining duration of these restrictions are 0.0-3.0 years. The market standoff agreements expire when the share price changes to a certain extent, and other agreements do not have specific clauses for a lapse in the restriction. See Note 1 for further information.



Changes in Level 3 Recurring Fair Value Measurements
The following tables present a reconciliation of the assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the fiscal years ended March 31, 2024 and 2025. The determination to classify a financial instrument within Level 3 is based upon the significance of the unobservable inputs to overall fair value measurement. However, Level 3 financial instruments typically include, in addition to the unobservable or Level 3 input, observable inputs (inputs that are actively quoted and can be validated to external sources). Accordingly, the gains and losses in the tables below include changes in fair value due in part to observable inputs used in the valuation techniques.
Fiscal year ended March 31, 2024
(As Adjusted):		March 31, 2023 
 
Total gains (losses)
 for the period
       March 31, 2024 
Change in
 unrealized
 gains (losses)
 for assets
 and
 liabilities
 still held at
 March 31,
 2024
 
 
Included
 in
 earnings
 Included
 in other
 comprehensive
 income 		PurchasesIssues Sales Settlements
Transfers
 into
 Level 3
Transfers out of
Level 3
 (in millions) 
Assets                      
Trading account assets:                      
Trading securities(1)
¥1,182,319 ¥213,607 (2)¥— ¥728,692 ¥— ¥(16,552)¥(66,257)¥145 ¥— ¥2,041,954 ¥206,853 (2)
Debt securities
Foreign government and official institution bonds1,168 123 — 7 — (7)(1,190)— — 101 — 
Asset-backed securities668,911 143,982 — 552,320 — — (12,458)— — 1,352,755 143,014 
Other debt securities334,124 61,722 — 141,000 — — — — — 536,846 61,722 
Equity securities178,116 7,780 — 35,365 — (16,545)(52,609)145 — 152,252 2,117 
Trading derivatives—net81,096 1,979 (2)1,383 423 (355)— (16,407)49,297 (58,510)58,906 1,549 (2)
Interest rate contracts—net48,629 (9,448)(1,240)— — — 4,784 49,324 (5)(52,563)(5)39,486 (8,541)
Foreign exchange contracts—net11,345 2,429 922 — — — (582)98 (4,014)10,198 3,309 
Equity contracts—net16,928 10,324 1,694 4 — — (20,415)(125)(152)8,258 8,070 
Commodity contracts—net91 (128)7 — — — (15)— — (45)(128)
Credit derivatives—net3,739 (1,119)— — — — (179)— (1,781)660 (1,087)
Other—net(8)
364 (79)— 419 (355)— — — — 349 (74)
Investment securities:
Available-for-sale debt securities253,964 1,433 (3)21,037 208,845 — — (278,573)26 (1,927)204,805 12,939 (3)
Corporate bonds2,000 (83)275 2,978 — — (4)26 (20)5,172 194 
Residential mortgage-backed securities15 — — — — — — — — 15 — 
Asset-backed securities182,938 1,597 14,325 205,611 — — (271,520)— — 132,951 6,360 
Other debt securities69,011 (81)6,437 256 — — (7,049)— (1,907)66,667 6,385 
Equity securities74,287 3,519 (3)383 10,661 — (2,200)— 2,015 (851)87,814 2,360 (3)
Nonmarketable equity securities74,287 3,519 383 10,661 — (2,200)— 2,015 (851)87,814 2,360 
Other75,750 (197)(7)141 5,585 — — (2,125)— — 79,154 (197)(7)
Total¥1,667,416 ¥220,341 ¥22,944 ¥954,206 ¥(355)¥(18,752)¥(363,362)¥51,483 ¥(61,288)¥2,472,633 ¥223,504 
Liabilities
Obligation to return securities
received as collateral
¥68,204 ¥— ¥— ¥— ¥5,053 ¥— ¥(1,858)¥— ¥— ¥71,399 ¥— 
Other57,121 (58,355)(4)(8,293)— 17,699 — (111,353)(705)(22,924)(6)6,486 (17,683)(4)
Total¥125,325 ¥(58,355)¥(8,293)¥— ¥22,752 ¥— ¥(113,211)¥(705)¥(22,924)¥77,885 ¥(17,683)
Fiscal year ended March 31, 2025:March 31, 2024 
 
Total gains (losses)
 for the period
 Purchases Issues  Sales  Settlements  Transfers
 into
 Level 3		 Transfers
 out of
 Level 3		 March 31, 2025 
Change in
 unrealized
 gains (losses)
 for assets
 and
 liabilities
 still held at
 March 31,
 2025
 
 
Included
 in
 earnings
 Included
 in other
 comprehensive
 income
 (in millions) 
Assets                      
Trading account assets:                      
Trading securities(1)
¥2,041,954 ¥(5,968)(2)¥(9,121)¥1,065,651 ¥— ¥(27,371)¥(397,123)¥78,674 ¥— ¥2,746,696 ¥(22,232)(2)
Debt securities
Foreign government and official institution bonds101 (1)— — — — (100)— — — — 
Corporate bonds
— (812)— 99,190 — (1,374)— 78,460 (5)— 175,464 (773)
Asset-backed securities1,352,755 (10,400)(9,121)853,526 — (23,091)(347,162)— — 1,816,507 (19,985)
Other debt securities536,846 (1,034)— 76,290 — — — — — 612,102 (1,034)
Equity securities152,252 6,279 — 36,645 — (2,906)(49,861)214 — 142,623 (440)
Trading derivatives—net58,906 (5,605)(2)1,807 669 (312)— (23,328)10,690 (31,957)10,870 9,395 (2)
Interest rate contracts—net39,486 (18,435)(706)— — — (6,230)(3,954)(32,095)(5)(21,934)(9,311)
Foreign exchange contracts—net10,198 (244)1,890 — — — (1,505)14,644 (5)336 25,319 6,113 
Equity contracts—net8,258 13,373 627 — — — (15,457)— (198)6,603 12,892 
Commodity contracts—net(45)30 (4)— — — (15)— — (34)32 
Credit derivatives—net660 (212)— — — — (121)— — 327 (211)
Other—net(8)
349 (117)— 669 (312)— — — — 589 (120)
Investment securities:
Available-for-sale debt securities204,805 (12,852)(3)12,998 2,533 — — (9,872)1,631 (1,493)197,750 199 (3)
Corporate bonds5,172 83 (67)2,493 — — (2,240)1,631 (1,493)5,579 34 
Residential mortgage-backed securities15 — — — — — — — — 15 — 
Asset-backed securities132,951 — 9,333 — — — — — — 142,284 9,333 
Other debt securities66,667 (12,935)3,732 40 — — (7,632)— — 49,872 (9,168)
Equity securities87,814 4,842 (3)447 14,898 — (6,696)— 1,608 (2,151)100,762 1,944 (3)
Nonmarketable equity securities87,814 4,842 447 14,898 — (6,696)— 1,608 (2,151)100,762 1,944 
Other79,154 (246)(7)129 1,120 — — (72,057)— — 8,100 (117)(7)
Total¥2,472,633 ¥(19,829)¥6,260 ¥1,084,871 ¥(312)¥(34,067)¥(502,380)¥92,603 ¥(35,601)¥3,064,178 ¥(10,811)
Liabilities
Obligation to return securities
received as collateral
¥71,399 ¥— ¥— ¥— ¥— ¥— ¥(71,399)¥— ¥— ¥— ¥— 
Other6,486 20,351 (4)(2,062)— — — (30,998)— (6,527)(6)(49,328)27,174 (4)
Total¥77,885 ¥20,351 ¥(2,062)¥— ¥— ¥— ¥(102,397)¥— ¥(6,527)¥(49,328)¥27,174 
Notes:
(1)Includes Trading securities measured under the fair value option.
(2)Included in Trading account profits (losses)—net and Foreign exchange gains (losses)—net.
(3)Included in Investment securities gains (losses)—net and Other comprehensive income, net of tax.
(4)Included in Trading account profits (losses)—net, Other non-interest income and Other comprehensive income, net of tax.
(5)Transfers into (out of) Level 3 for Interest rate contracts—net were mainly caused by changes in the impact of unobservable input to the entire fair value measurement. Unobservable inputs include loss given default. Transfers into Level 3 for Corporate bonds were mainly caused by the increased impact of the Liquidity Premium on Fair Value. Transfers into Level 3 for Foreign exchange contracts—net were mainly caused by changes in the impact of unobservable inputs to the fair value measurement.
(6)Transfers out of Level 3 for long-term debt in Other were mainly caused by the decrease (increase) in the observability of the key inputs to the valuation models and a corresponding increase (decrease) in the significance of the unobservable inputs.
(7)Included in Other non-interest income.
(8)Includes certain derivatives such as earthquake derivatives.
Quantitative Information about Level 3 Fair Value Measurements
The following tables present information on the valuation techniques, significant unobservable inputs and their ranges for each major category of assets and liabilities measured at fair value on a recurring basis and classified in Level 3:
At March 31, 2024
Fair value(1)
 Valuation technique Significant unobservable inputs Range 
Weighted
 average(2)
 (in millions)        
Assets         
Trading securities and Investment securities :
         
Asset-backed securities¥1,248,241 
Internal model(4)
Asset correlations3.0%3.0 %
 Discount factor
1.4%~1.6%
1.4 %
 Prepayment rate17.7%17.7 %
Probability of default
0.0%~93.0%
— (3)
 Recovery rate55.0%55.0 %
Other debt securities587,272 Discounted cash flowLiquidity premium
0.9%~3.2%
2.8 %
At March 31, 2024
Fair value(1)
 Valuation technique Significant unobservable inputs Range
Median(2)
 
(in millions)
      
Trading derivatives—net:       
Interest rate contracts—net41,687 Option modelCorrelation between interest rates
30.0%~60.7%
44.6%
 Correlation between interest rate and foreign exchange rate
(2.0)%~60.0%
35.0%
 Volatility
61.2%~80.6%
75.6%
Foreign exchange contracts—net9,800 Option modelCorrelation between interest rates
30.0%~70.0%
48.2%
 Correlation between interest rate and foreign exchange rate
17.6%~60.0%
36.3%
 Correlation between foreign exchange rates
50.0%~70.6%
66.4%
 Volatility
9.9%~21.3%
14.1%
Equity contracts—net4,414 Option modelCorrelation between foreign exchange rate and equity
0.0%~30.0%
20.0%
 Correlation between equities
5.0%~76.0%
57.5%
 Volatility
25.0%~37.0%
33.9%
At March 31, 2025
Fair value(1)
 Valuation technique Significant unobservable inputs Range 
Weighted
 average(2)
 
(in millions)
        
Assets         
Trading securities and Investment securities:         
Corporate bonds¥175,464 
Discounted cash flow
Liquidity premium
0.0%~0.2%
0.1%
Asset-backed securities1,684,080 
Internal model(4)
Asset correlations2.0%2.0%
 Discount factor
1.2%~1.3%
1.3%
 Prepayment rate28.0%28.0%
 Probability of default
0.0%~99.0%
—(3)
 Recovery rate60.4%60.4%
Other debt securities659,534 Discounted cash flowLiquidity premium
1.6%~3.2%
2.4%
     
At March 31, 2025
Fair value(1)
 Valuation technique Significant unobservable inputs Range 
Median(2)
 
(in millions)
        
Trading derivatives—net:         
Interest rate contracts—net(21,934)Option modelCorrelation between interest rates
30.0%~60.4%
44.0%
 Correlation between interest rate and foreign exchange rate
5.7%~60.0%
34.3%
Recovery rate
80.0%～90.0%
85.0%
 Volatility
65.3%~134.6%
73.5%
Foreign exchange contracts—net25,319 Option modelCorrelation between interest rates
30.0%~70.0%
45.6%
 Correlation between interest rate and foreign exchange rate
19.2%~60.0%
36.7%
 Correlation between foreign exchange rates
50.0%~66.4%
58.2%
Recovery rate
80.0%～90.0%
85.0%
 Volatility
10.7%~20.9%
14.3%
Equity contracts—net3,524 Option modelCorrelation between foreign exchange rate and equity
6.0%~50.0%
10.0%
 Correlation between equities
5.7%~95.0%
58.9%
 Volatility
20.0%~35.5%
27.5%
Notes:
(1)The fair value as of March 31, 2024 and 2025 excludes the fair value of investments valued using vendor prices.
(2)Weighted average is calculated by weighing each input by the relative fair value of the respective financial instruments for investment securities. Median is used for derivative instruments.
(3)See “Probability of default” in “Changes in and range of unobservable inputs.”
(4)For further detail of Internal model, refer to the last paragraph of “Trading Account Assets and Liabilities—Trading Account Securities.”

Changes in and range of unobservable inputs
Probability of default—Probability of default is an estimate of the likelihood that the default event will occur and the MUFG Group will be unable to collect the contractual amounts. A significant increase (decrease) in the default rate would have resulted in a significant decrease (increase) in a fair value through a decrease (increase) in the estimated cash flows. Probability of default used in internal model of Residential mortgage-backed securities and Asset-backed securities represents that of underlying assets, whereas probability of default used in other valuation techniques represents the counterparty default risks, determined through the MUFG Group’s credit rating system.
The wide range of probability of default used in the internal model of Residential mortgage-backed securities and Asset-backed securities is mainly caused by Asset-backed securities. Asset-backed securities have a large number of underlying loans, mainly corporate loans, in several industries. The MUFG Group primarily makes investments in the senior tranches of such securities, with no investments in the equity portion. Thus, the MUFG Group’s investments have higher priority of payments than mezzanine and equity and even if some of underlying loans become default, the MUFG Group may still be able to receive the full contractual payments.
Discount factor and Liquidity premium—Discount factor and liquidity premium are adjustments to discount rates to reflect uncertainty of cash flows and liquidity of the instruments. When recent prices of similar instruments are unobservable in inactive or
less active markets, discount rates are adjusted based on the facts and circumstances of the markets including the availability of quotes and the time since the latest available quotes. A significant increase (decrease) in discount rate would have resulted in a significant decrease (increase) in a fair value.
Recovery rate and Prepayment rate—Recovery rate is the proportion of the total outstanding balance of a bond or loan, or the total exposure that is expected to be collected in a liquidation scenario. For many debt securities (such as asset-backed securities), there is no directly observable market input for recovery, but indications of recovery levels are available from third-party pricing services. The assumed recovery of a security may differ from its actual recovery that will be observable in the future. Prepayment rate represents the proportion of principal that is expected to be paid prematurely in each period on a security or pool of securities. Prepayment rates change the future cash flows for the investor and thereby change the fair value of the security. Recovery rate and prepayment rate would affect estimation of future cash flows to a certain extent and changes in these inputs could have resulted in a significant increase or decrease in fair value.
Volatility—Volatility is a measure of the speed and severity of market price changes and is a key factor in pricing. Typically, instruments can become more expensive if volatility increases. A significant increase (decrease) in volatility would cause a significant increase (decrease) in the value of an option resulting in the significant increase (decrease) in fair value.
The level of volatility generally depends on the tenor of the underlying instrument and the strike price or level defined in the contract. Volatilities for certain combinations of tenor and strike price are not observable. The volatility inputs used to estimate fair value of interest rate contracts are distributed throughout the range.
Correlation—Correlation is a measure of the relationship between the movements of two variables (i.e., how the change in one variable influences a change in the other variables). A variety of correlation-related assumptions are required for a wide range of instruments including foreign government and official institution bonds, asset-backed securities, corporate bonds, derivatives and certain other instruments. In most cases, correlations used are not observable in the market and must be estimated using historical information. Changes in correlation inputs can have a major impact, favorable or unfavorable, on the value of an instrument, depending on its nature. In addition, the wide range of correlation inputs are primarily due to the complex and unique nature of these instruments. There are many different types of correlation inputs, including cross-asset correlation (such as correlation between interest rate and equity), and same-asset correlation (such as correlation between interest rates). Correlation levels are highly dependent on market conditions and could have a relatively wide range of levels within or across asset classes.
For interest rate contracts and foreign exchange contracts, the diversity in the portfolio held by the MUFG Group is reflected in wide ranges of correlation, as the fair values of transactions with a variety of currencies and tenors are determined using several foreign exchange and interest rate curves. For equity derivative contracts, the wide range of correlation between interest rate and equity is primarily due to the large number of correlation pairs with different maturities of contracts. For credit derivative contracts, the wide range of correlation between underlying assets is primarily due to factors such as reference assets with different maturities, capital structure subordinations, and credit quality.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
Certain assets and liabilities may be measured at fair value on a nonrecurring basis in periods subsequent to their initial recognition. These assets are subject to fair value adjustments that result from the application of the lower of cost or fair value accounting, write-downs of individual assets or the measurement alternative for nonmarketable equity securities. The following table presents the carrying value of assets measured at fair value on a nonrecurring basis by level within the fair value hierarchy as of March 31, 2024 and 2025:
 2024
(As Adjusted)		2025
 Level 1 Level 2 Level 3 
Total
 carrying value
 Level 1 Level 2 Level 3 
Total
 carrying value
 (in millions)
Assets
               
Investment securities(1)(2)
¥— ¥9,460 ¥45,175 ¥54,635 ¥— ¥14,041 ¥49,830 ¥63,871 
Loans2,271 5,181 630,005 637,457 2,466 5,254 269,853 277,573 
Loans held for sale— — 472,711 472,711 — — 134,371 134,371 
Collateral dependent loans2,271 5,181 157,294 164,746 2,466 5,254 135,482 143,202 
Premises and equipment— — 11,193 11,193 — — 9,557 9,557 
Intangible assets— — 5,174 5,174 — — 5,449 5,449 
Goodwill— — — — — — 161,758 161,758 
Other assets— 32,481 18,567 51,048 — 34,389 19,049 53,438 
Investments in equity method investees(1)
— 27,801 1,702 29,503 — 27,745 2,057 29,802 
Other— 4,680 16,865 21,545 — 6,644 16,992 23,636 
Total¥2,271 ¥47,122 ¥710,114 ¥759,507 ¥2,466 ¥53,684 ¥515,496 ¥571,646 
Notes:
(1)Excludes certain investments valued at net asset value of ¥18,037 million and ¥39,541 million at March 31, 2024 and 2025, respectively. The unfunded commitments related to these investments are ¥24,208 million and ¥34,847 million at March 31, 2024 and 2025, respectively. These investments are in private equity funds.
(2)Includes certain nonmarketable equity securities that are measured at fair value on a nonrecurring basis, including impairment and observable price change for nonmarketable equity securities measured under the measurement alternative.
The following table presents losses recorded as a result of changes in the fair value of assets measured at fair value on a nonrecurring basis for the fiscal years ended March 31, 2024 and 2025:
 2024
(As Adjusted)		2025
 
(in millions)
Investment securities¥12,628 ¥29,409 
Loans69,516 23,210 
Loans held for sale55,064 6,903 
Collateral dependent loans14,452 16,307 
Premises and equipment3,143 14,490 
Intangible assets14,929 13,057 
Goodwill— 150,089 
Other assets41,674 27,351 
Investments in equity method investees19,978 8,177 
Other21,696 19,174 
Total
¥141,890 ¥257,606 

Investment securities for the fiscal years ended March 31, 2024 and 2025 primarily include nonmarketable equity securities measured under the measurement alternative. See Note 3 for the details of the measurement alternative.
Loans held for sale are recorded at the lower of cost or fair value. The fair value of loans held for sale is based on secondary market prices, where available. Where no such price exists, the fair value is determined using prices observed in the market for a similar asset or assets, which may be adjusted, as appropriate, to reflect other market conditions or the perceived credit risk of the borrower. These loans are principally classified in Level 3 of the fair value hierarchy, except when quoted prices are available but not traded actively, which results in such loans held for sale being classified in Level 2 of the fair value hierarchy.
The significant unobservable inputs used for the fair value measurements of loans held for sale based on adjusted prices, which are categorized within Level 3 of the fair value hierarchy, consisted of prices ranging from ¥4.21 to ¥100.00 and from ¥6.67 to ¥100.00 as of March 31, 2024 and 2025, respectively, and the weighted average of prices were ¥83.38 and ¥95.38 as of March 31, 2024 and 2025, respectively. The significant unobservable inputs used for the fair value measurements of loans held for sale based on discounted cash flows, which are categorized within Level 3 of the fair value hierarchy, consisted of discount rates ranging from 0.83% to 11.87% and from 1.30% to 2.29% as of March 31, 2024 and 2025, respectively, and the weighted averages of the discount rates were 11.51% and 1.75% as of March 31, 2024 and 2025, respectively. Weighted average is calculated by weighing each input by the relative fair value of the respective financial instruments.
Collateral dependent loans are measured at fair value of the underlying collateral. Collateral is comprised mainly of real estate and exchange-traded equity securities. The MUFG Group maintains an established process for internally determining the fair value of real estate, using the following valuation techniques and assumptions. Collateral dependent loans that are measured based on underlying real estate collateral are classified in Level 3 of the fair value hierarchy.

•Replacement cost approach. The replacement cost approach is primarily used for buildings and the land they are built on. This approach calculates the fair value of the collateral using the replacement cost of the property as of the valuation date. Replacement cost tables and useful life tables used for this approach are developed by subsidiaries of MUFG.
•Sales comparison approach. The sales comparison approach is mainly used for land. The fair value of the collateral located in Japan is based on Japanese government official land prices and standard land prices, considering the results of comparison analysis between the official roadside value which is used for tax purposes and the related government official land and standard land prices.
•Income approach. The income approach is, as a general rule, applied to all rental properties based on the highest and best use concept. This approach calculates the fair value of the collateral using expected future cash flows. In this approach, the expected annual net operating income is discounted using the related capitalization yield. The significant assumptions within the income approach are the expected annual net operating income and capitalization yield. The expected annual net operating income is estimated based on rental income of the property. The capitalization yield is determined based on the location and use of the property by subsidiaries of MUFG. The capitalization yield may be adjusted to reflect the trends in locations, occupancy rates and rent level and other factors.
Premises and equipment consist of those assets which were written down to fair value. The fair values are determined based on prices obtained from an appraiser or discounted cash flows. These impaired premises and equipment are classified as Level 3 of the fair value hierarchy.
Intangible assets consist of those assets which were written down to fair value. The fair values are determined based on discounted cash flows. These impaired intangible assets are classified as Level 3 of the fair value hierarchy.
Other assets mainly consist of investments in equity method investees which were written down to fair value due to impairment. When investments in equity method investees are marketable equity securities, the fair values are determined based on quoted prices. Impaired investments in equity method investees which are marketable equity securities are classified in either Level 1 or Level 2 of the fair value hierarchy. When investments in equity method investees are nonmarketable equity securities, the fair values are determined using the same methodologies as those for impaired nonmarketable equity securities described above. Impaired investments in equity method investees which are nonmarketable equity securities are classified in Level 3 of the fair value hierarchy.
Fair Value Option
The MUFG Group elected the fair value option for foreign currency-denominated debt securities and equity securities held by MUFG Bank and Mitsubishi UFJ Trust and Banking. The election was made to mitigate accounting mismatches related to fluctuations of foreign exchange rates by allowing the gains and losses on translation of these securities to be included in current earnings. The gains and losses on translation of debt securities without the fair value option, are included in OCI, while the gains and losses on translation of foreign currency-denominated financial liabilities are included in current earnings.
The MUFG Group also elected the fair value option for certain financial instruments held by Mitsubishi UFJ Securities Holdings’ foreign subsidiaries because those financial instruments are managed on a fair value basis, and these exposures are considered to be trading-related positions. These financial assets are included in Other assets. These financial liabilities are mainly included in Other short-term borrowings and Long-term debt. Unrealized gains and losses on such financial instruments are recognized in the accompanying consolidated statements of income.
The following table presents the gains or losses recorded for the fiscal years ended March 31, 2023, 2024 and 2025 related to the eligible instruments for which the MUFG Group elected the fair value option:
 202320242025
 
Trading
 account
 profits (losses)
 
Foreign
 exchange
 gains (losses)
 
Total
 changes in
 fair value
 
Trading
 account
 profits (losses)
 
Foreign
 exchange
 gains (losses)
 
Total
 changes in
 fair value
 
Trading
 account
 profits (losses)
 
Foreign
 exchange
 gains (losses)
 
Total
 changes in
 fair value
 
(in millions)
Financial assets:                 
Trading account securities¥(1,180,311)¥1,369,071 ¥188,760 ¥(173,290)¥2,176,389 ¥2,003,099 ¥1,636 ¥38,401 ¥40,037 
Total¥(1,180,311)¥1,369,071 ¥188,760 ¥(173,290)¥2,176,389 ¥2,003,099 ¥1,636 ¥38,401 ¥40,037 
Financial liabilities:
Other short-term borrowings(1)
¥(3,626)¥— ¥(3,626)¥3,690 ¥— ¥3,690 ¥3,832 ¥— ¥3,832 
Long-term debt(1)
40,944 — 40,944 (20,426)— (20,426)10,120 — 10,120 
Total¥37,318 ¥— ¥37,318 ¥(16,736)¥— ¥(16,736)¥13,952 ¥— ¥13,952 
Note:
(1)Changes in the value attributable to the instrument-specific credit risk related to those financial liabilities were not material.
The following table presents the differences between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of March 31, 2024 and 2025 for long-term debt instruments for which the fair value option has been elected:
 20242025
 
Remaining
 aggregate
 contractual
 amounts
 outstanding
 Fair value 
Fair value
 over (under)
 remaining
 aggregate
 contractual
 amounts
 outstanding
 
Remaining
 aggregate
 contractual
 amounts
 outstanding
 Fair value 
Fair value
 over (under)
 remaining
 aggregate
 contractual
 amounts
 outstanding
 
(in millions)
Financial liabilities:           
Long-term debt¥246,153 ¥234,909 ¥(11,244)¥156,302 ¥153,742 ¥(2,560)
Total¥246,153 ¥234,909 ¥(11,244)¥156,302 ¥153,742 ¥(2,560)
Interest income and expense related to the assets and liabilities for which the fair value option is elected are measured based on the contractual rates and dividend income related to these assets are recognized when the shareholder right to receive the dividend is established. These interest income and expense and dividend income are reported in the accompanying consolidated statements of income as either interest income or expense, depending on the nature of the related asset or liability.
Estimated Fair Value of Financial Instruments
The following is a summary of carrying amounts and estimated fair values by level within the fair value hierarchy of financial instruments which are not carried at fair value on a recurring basis in the accompanying consolidated balance sheets as of March 31, 2024 and 2025:
 
Carrying
 amount
 Estimated fair value
At March 31, 2024 (As Adjusted) Total Level 1 Level 2 Level 3
 (in billions)
Financial assets:         
Cash and due from banks¥4,417 ¥4,417 ¥4,417 ¥— ¥— 
Interest-earning deposits in other banks105,702 105,702 — 105,702 — 
Call loans and funds sold1,738 1,738 — 1,738 — 
Receivables under resale agreements18,824 18,824 — 18,824 — 
Receivables under securities borrowing transactions5,001 5,001 — 5,001 — 
Investment securities24,844 24,558 14,522 7,457 2,579 
Loans, net of allowance for credit losses(1)
126,555 126,707 2 295 126,410 
Other financial assets(2)
11,761 11,761 — 11,761 — 
Financial liabilities:
Deposits
Non-interest-bearing¥38,805 ¥38,805 ¥— ¥38,805 ¥— 
Interest-bearing208,360 208,512 — 208,512 — 
Total deposits247,165 247,317 — 247,317 — 
Call money and funds purchased5,094 5,094 — 5,094 — 
Payables under repurchase agreements35,690 35,690 — 35,690 — 
Payables under securities lending transactions1,017 1,017 — 1,017 — 
Due to trust account and other short-term borrowings15,747 15,747 — 15,747 — 
Long-term debt39,833 39,103 — 39,103 — 
Other financial liabilities9,081 9,081 — 9,081 — 
 
Carrying
 amount
 Estimated fair value
At March 31, 2025 Total Level 1 Level 2 Level 3
 (in billions)
Financial assets:         
Cash and due from banks¥4,591 ¥4,591 ¥4,591 ¥— ¥— 
Interest-earning deposits in other banks104,707 104,707 — 104,707 — 
Call loans and funds sold1,676 1,676 — 1,676 — 
Receivables under resale agreements18,782 18,782 — 18,782 — 
Receivables under securities borrowing transactions5,701 5,701 — 5,701 — 
Investment securities23,272 22,647 12,932 8,244 1,471 
Loans, net of allowance for credit losses(1)
130,187 129,772 2 70 129,700 
Other financial assets(2)
9,783 9,783 — 9,783 — 
Financial liabilities:
Deposits
Non-interest-bearing¥36,820 ¥36,820 ¥— ¥36,820 ¥— 
Interest-bearing212,633 212,643 — 212,643 — 
Total deposits249,453 249,463 — 249,463 — 
Call money and funds purchased5,017 5,017 — 5,017 — 
Payables under repurchase agreements43,664 43,664 — 43,664 — 
Payables under securities lending transactions718 718 — 718 — 
Due to trust account and other short-term borrowings28,229 28,229 — 28,229 — 
Long-term debt20,928 20,199 — 20,199 — 
Other financial liabilities9,038 9,038 — 9,038 — 
Notes:
(1)Includes loans held for sale and collateral dependent loans measured at fair value on a nonrecurring basis. Refer to “Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis” for the details of the level classification.
(2)Excludes investments in equity method investees of ¥4,116 billion and ¥4,564 billion at March 31, 2024 and 2025, respectively.
The fair values of certain off-balance sheet financial instruments held for purposes other than trading, including commitments to extend credit and commercial letters of credit, are estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the credit quality. The aggregate fair value of such instruments at March 31, 2024 and 2025 was not material.