mufg-20260331

As filed with the Securities and Exchange Commission on July 6, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 20-F

☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF

THE SECURITIES EXCHANGE ACT OF 1934

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

Date of event requiring this shell company report

Commission file number 000-54189

KABUSHIKI KAISHA MITSUBISHI UFJ FINANCIAL GROUP

(Exact name of Registrant as specified in its charter)

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of Registrant’s name into English)

Japan

(Jurisdiction of incorporation or organization)

4-5, Marunouchi 1-chome

Chiyoda-ku, Tokyo 100-8330

Japan

(Address of principal executive offices)

Masahisa Takahashi, +81-3-3240-8111, usgaap_reporting@mufg.jp, 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8212, Japan

(Name, Telephone, Email and/or Facsimile number and Address of Company Contact Person)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class

Trading
symbol(s)

Name of each exchange on which registered

Common stock, without par value

New York Stock Exchange

(1)

American depositary shares, each of which represents one share of common stock

MUFG

New York Stock Exchange

(1)The listing of the registrant’s common stock on the New York Stock Exchange is for technical purposes only and without trading privileges.

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report:

As of March 31, 2026, 11,867,710,920 shares of common stock (including 580,142,679 shares of common stock held by the registrant and its consolidated subsidiaries as treasury stock)

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☒ No ☐

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.

Yes ☐ No ☒

Note—Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Emerging growth company

☐

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ☐

† The term “new or revised financial accounting standard” refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Yes ☒ No ☐

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b). ☐

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP

☒

International Financial Reporting Standards as issued by the International Accounting Standards Board

☐

Other

☐

If “Other” has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow.

Item 17 ☐ Item 18 ☐

If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

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TABLE OF CONTENTS


		Page
Forward-Looking Statements		3
Item 1.	Identity of Directors, Senior Management and Advisers	5
Item 2.	Offer Statistics and Expected Timetable	5
Item 3.	Key Information	5
Item 4.	Information on the Company	18
Item 4A.	Unresolved Staff Comments	50
Item 5.	Operating and Financial Review and Prospects	50
Item 6.	Directors, Senior Management and Employees	95
Item 7.	Major Shareholders and Related Party Transactions	117
Item 8.	Financial Information	118
Item 9.	The Offer and Listing	119
Item 10.	Additional Information	120
Item 11.	Quantitative and Qualitative Disclosures about Credit, Market and Other Risk	129
Item 12.	Description of Securities Other than Equity Securities	148
Item 13.	Defaults, Dividend Arrearages and Delinquencies	150
Item 14.	Material Modifications to the Rights of Security Holders and Use of Proceeds	150
Item 15.	Controls and Procedures	150
Item 16A.	Audit Committee Financial Expert	152
Item 16B.	Code of Ethics	152
Item 16C.	Principal Accountant Fees and Services	152
Item 16D.	Exemptions from the Listing Standards for Audit Committees	153
Item 16E.	Purchases of Equity Securities by the Issuer and Affiliated Purchasers	153
Item 16F.	Change in Registrant’s Certifying Accountant	154
Item 16G.	Corporate Governance	154
Item 16H.	Mine Safety Disclosure	155
Item 16I .	Disclosure Regarding Foreign Jurisdictions That Prevent Inspections	155
Item 16J.	Insider Trading Policies	155
Item 16K.	Cybersecurity	155
Item 17.	Financial Statements	158
Item 18.	Financial Statements	158
Item 19.	Exhibits	158
Selected Statistical Data		A-1
Consolidated Financial Statements		F-1

For purposes of this Annual Report, we have presented our consolidated financial statements in accordance with accounting principles generally accepted in the United States, or U.S. GAAP, except for risk-adjusted capital ratios, capital components, risk-weighted assets, business segment financial information and some other specifically identified information.

In this Annual Report, unless otherwise indicated or the context otherwise requires, all figures are rounded to the figures shown except for the amounts and ratios calculated in accordance with Japanese banking regulations based on information derived from the financial statements of MUFG and its domestic subsidiaries prepared in accordance with accounting principles generally accepted in Japan, or Japanese GAAP, such as the capital ratios, capital components, risk-weighted assets, leverage ratios, liquidity coverage ratios and net stable funding ratios of MUFG and its domestic subsidiaries as well as the total loss-absorbing capacity ratios of MUFG, which are rounded down and truncated to the figures shown. In some cases, figures presented in tables are adjusted to match the sum of the figures with the total amount, and such figures are also referred to in the related text.

When we refer in this Annual Report to “MUFG,” “we,” “us,” “our,” the “MUFG Group” and the “Group,” we generally mean Mitsubishi UFJ Financial Group, Inc. and its consolidated subsidiaries, but from time to time as the context requires, we mean Mitsubishi UFJ Financial Group, Inc. as an individual legal entity. In addition, our “commercial banking subsidiaries” refers to MUFG

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Bank, Ltd. and, as the context requires, its consolidated subsidiaries engaged in the commercial banking business. Our “trust banking subsidiaries” refers to Mitsubishi UFJ Trust and Banking Corporation and, as the context requires, its consolidated subsidiaries engaged in the trust banking business. Our “banking subsidiaries” refers to MUFG Bank and Mitsubishi UFJ Trust and Banking and, as the context requires, their respective consolidated subsidiaries engaged in the banking business. Our “securities subsidiaries” refers to Mitsubishi UFJ Securities Holdings Co., Ltd., and, as the context requires, its consolidated subsidiaries engaged in the securities business.

References to “MUAH” are to MUFG Americas Holdings Corporation, as a single entity, as well as to MUFG Americas Holdings and its consolidated subsidiaries, as the context requires.

References to “Krungsri” are to Bank of Ayudhya Public Company Limited, as a single entity, as well as to Bank of Ayudhya Public Company Limited and its consolidated subsidiaries, as the context requires.

References to “Bank Danamon” are to PT Bank Danamon Indonesia, Tbk., as a single entity, as well as to PT Bank Danamon Indonesia, Tbk. and its consolidated subsidiaries, as the context requires.

References to “First Sentier Group” are to First Sentier Group Limited, as a single entity, as well as to First Sentier Group Limited and its consolidated subsidiaries, as the context requires.

References to the “FSA” are to the Financial Services Agency, an agency of the Cabinet Office of Japan.

Our fiscal year ends on March 31 of each year. References to years not specified as being fiscal years are to calendar years.

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Forward-Looking Statements

We may from time to time make written or oral forward-looking statements. Written forward-looking statements may appear in documents filed with, or submitted to, the U.S. Securities and Exchange Commission, or SEC, including this Annual Report, and other reports to shareholders and other communications.

The U.S. Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking information to encourage companies to provide prospective information about themselves. We rely on this safe harbor in making these forward-looking statements.

Forward-looking statements appear in a number of places in this Annual Report and include statements regarding our current intent, business plan, targets (including, but not limited to, our sustainability-related targets), belief or expectations or the current belief or current expectations of our management with respect to our results of operations and financial condition, including, among other matters, our problem loans and loan losses. In many, but not all cases, we use words such as “anticipate,” “aim,” “believe,” “estimate,” “expect,” “intend,” “plan,” “probability,” “risk,” “will,” “may” and similar expressions, as they relate to us or our management, to identify forward-looking statements. These statements reflect our current views with respect to future events and are subject to risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary materially from those which are aimed, anticipated, believed, estimated, expected, intended or planned, or otherwise stated.

Our forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ from those in the forward-looking statements as a result of various factors. Important factors that could cause such differences include, without limitation,

•instability in, uncertainty over and deterioration of, economic conditions in Japan and around the world,

•external events, such as natural disasters and other health pandemics or epidemics, terrorism, and geopolitical and social conflicts,

•climate-related risks materializing in physical damages and changes in the business environment,

•competitive pressures resulting from regulatory and market changes,

•failure to implement our business expansion strategy as planned and to manage new or expanded risks that entail such strategy, as well as incurrence of impairment or valuation losses on our acquired assets,

•negative developments relating to our strategic alliance with Morgan Stanley,

•failure to maintain our capital ratios and other regulatory ratios above minimum required levels,

•significant unexpected increases in credit costs,

•financial difficulties of other financial institutions that affect the overall banking environment and their borrowers,

•fluctuations in interest rates, foreign currency exchange rates and stock prices,

•reduction in our ability to access or maintain liquidity,

•failure to address regulatory or public concerns or to meet market or industry rules or standards, customer protection requirements, or corporate behavior expectations,

•cyber-attacks and other information security threats,

•problems with the proper functioning and development of information, communications and transaction management systems,

•transactions with counterparties in countries designated by the U.S. Department of State as state sponsors of terrorism,

•changes in laws, regulations, rules, policies, accounting standards or methods, voluntary codes of practices, and interpretations,

•changes in the business and regulatory environment for consumer finance companies,

•damage to our reputation resulting from our failure to prevent or properly address negative perceptions held by customers, investors, regulators and the general public regarding us and our operations,

•our reliance upon third party vendors and service providers;

•risks related to the development and use of artificial intelligence by us and others; and

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•other risks and uncertainties discussed in “Item 3.D. Key Information—Risk Factors,” “Item 4.B. Information on the Company—Business Overview,” “Item 5. Operating and Financial Review and Prospects,” “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk” and elsewhere in this Annual Report.

Given these and other risks and uncertainties, you are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of the filing of this Annual Report. We are under no obligation, and disclaim any obligation, to update or alter our forward-looking statements, whether as a result of new information, future events or otherwise unless required by law.

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PART I

Item 1. Identity of Directors, Senior Management and Advisers.

Not applicable.

Item 2. Offer Statistics and Expected Timetable.

Not applicable.

Item 3. Key Information.

A.[Reserved]

B.Capitalization and Indebtedness

Not applicable.

C.Reasons for the Offer and Use of Proceeds

Not applicable.

D.Risk Factors

Investing in our securities involves a high degree of risk. You should carefully consider the risks described in this section, which is intended to disclose the risks that we consider material based on the information currently available to us, as well as all the other information in this Annual Report, including our consolidated financial statements and related notes, “Item 5. Operating and Financial Review and Prospects,” “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk” and “Selected Statistical Data.”

Our business, operating results and financial condition could be materially and adversely affected by any of the factors discussed below. The trading price of our securities could decline due to any of these factors. This Annual Report also contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those described in this section and elsewhere in this Annual Report. See “Forward-Looking Statements.”

Risks Related to Our Business Environment

Because a large portion of our assets as well as our business operations are in Japan, we may incur losses if economic conditions in Japan worsen.

Our performance is particularly affected by the general economic conditions of Japan where we are headquartered and conduct a significant amount of our business. As of March 31, 2026, 59.9% of our total assets were related to Japanese domestic assets, including Japanese national government and Japanese government agency bonds, which accounted for 56.7% of our total investment securities portfolio and 7.2% of our total assets, respectively. Interest and non-interest income in Japan represented 37.1% of our total interest and non-interest income for the fiscal year ended March 31, 2026. Furthermore, as of March 31, 2026, our loans in Japan accounted for 53.6% of our total loans outstanding.

There is significant uncertainty surrounding Japan’s economy. For example, Japan’s fiscal health and sovereign creditworthiness may deteriorate if the Japanese government’s economic measures and the Bank of Japan’s monetary policies prove ineffective or result in negative consequences. If the prices of Japanese government bonds decline rapidly, resulting in an unexpectedly sudden increase in interest rates, our investment securities portfolio as well as our lending, borrowing, deposit-taking, trading and other operations may be negatively impacted. In addition, interest rates may suddenly increase if the Bank of Japan decides to further tighten its monetary policy, or if there is a change in market expectations relating to any such decision.

Instability in the Japanese stock market and foreign currency exchange rates, particularly between the Japanese yen and other major currencies, may also have an adverse impact on our asset and liability management as well as our results of operations. Various other factors, including international geopolitical conflicts, significant or prolonged inflationary or deflationary price trends, the decreasing and aging demographics in Japan, stagnation or deterioration of economic and market conditions in other countries, economic policies adopted by other countries potentially affecting exports from and imports into Japan, growing global competition

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and trade conflicts, may also have a material negative impact on the Japanese economy. For a detailed discussion on the business environment in Japan and abroad, see “Item 5. Operating and Financial Review and Prospects—Business Environment.”

Since our domestic loans in Japan accounted for a significant portion of our loan portfolio, deteriorating or stagnant economic conditions in Japan may cause adverse effects on our financial results, such as increases in credit costs, as the credit quality of our borrowers could deteriorate. Borrowers in particular industries may be adversely affected by disruptions in commodity supply chains, changes in economic behavior, trade restrictions and other consequences of geopolitical and geoeconomic conflicts, and other events that are beyond the control of those that are affected. Our domestic loan portfolio may also be adversely affected by interest rate fluctuations in Japan. For example, the Bank of Japan has been gradually raising its policy interest rate since March 2024, and interest rates in Japan may continue to rise in the future. Unexpected increases in interest rates may negatively affect our borrowers’ debt service capacity, and our credit costs may significantly increase. On the other hand, if the Bank of Japan continues or increases its purchase of Japanese government bonds in the market, the yield on many financial instruments and other market interest rates in Japan are likely to remain at current low levels or decline. In such case, and particularly if the Bank of Japan’s policy rate is lowered from the current level, market interest rates may decline, and our interest rate spread on our domestic loan portfolio may narrow, reducing our net interest income.

Our results of operations may be materially affected by instability in, uncertainty over and deterioration of, economic conditions in Japan and around the world.

Economic conditions in Japan and around the world may become unstable or deteriorate due to various factors such as changes in the monetary and fiscal policies in major jurisdictions and the fiscal condition of major countries, industrial and trade policies adopted in major markets, rapid and significant fluctuations in foreign exchange rates, global inflation, deflation or stagflation, changes in real estate market trends, and concerns and developments affecting financial institutions, including banks, non-bank lending and credit institutions, securities companies, insurance companies, and investment funds and other financial intermediaries. Uncertainty over the Japanese and global economies still remains because of such other factors as geopolitical instabilities or conflicts, interruptions or changes in international supply chains or trade, and rapid and significant changes in the market, regulatory or business environment. As of March 31, 2026, based principally on the domicile of the obligors, assets related to the United States accounted for approximately 18.8% of our total assets, assets related to Asia and Oceania excluding Japan accounted for approximately 10.1% of our total assets, and assets related to Europe accounted for approximately 6.7% of our total assets.

Worsening economic conditions in Japan and around the world may result in, among other things, impairment or valuation losses on securities and other assets that we hold due to declines in the market value of such assets, an increase in our non-performing loans and credit costs due to deterioration in borrowers’ business performance, a decrease in our profits due to deterioration in the creditworthiness of counterparties in market transactions, a reduction in foreign currency funding liquidity, an increase in our foreign currency funding costs, and an increase in the level of risk in the risk assets that we hold. Our profitability may be adversely affected by various other factors, including a decline in our net interest income caused by such factors as changes in the monetary policies of central banks in various jurisdictions. In addition, an economic downturn may result in a decline in new investments and business transactions by customers due to stagnation in economic activity, weak consumer spending, diminished investor appetite for making investments in uncertain financial markets, and a decrease in our assets under custody or management.

Our business operations are exposed to risks of natural disasters, terrorism, geopolitical conflicts and other disruptions caused by external events.

As a major financial institution incorporated in Japan and operating in major international financial markets, our business operations, ATMs and other information technology systems, personnel, and facilities and other physical assets are subject to the risks of earthquakes including any ensuing tsunami, typhoons, floods and other natural disasters, terrorism, geopolitical, political and social conflicts, health pandemics or epidemics, and other disruptions caused by external events, which are beyond our control. Such external events may result in loss of facility and human and other resources, suspension or delay in all or part of our operations, inability to implement business strategic measures or respond to changes in the market or regulatory environment as planned, and other disruptions to our operations. We may also be required to incur significant costs and expenses, including those incurred for preventive or remedial measures, to deal with such external events. In addition, such external events may negatively impact the economic conditions in the markets we or our customers operate. As a result, our business, operating results and financial condition may be materially and adversely affected.

For example, geopolitical conflicts often lead to the imposition of economic and financial sanctions against certain banks, companies and individuals by the governments of Japan, the United States, the European Union and other jurisdictions, resulting in increased complexity in our compliance and control environment. Geopolitical tensions also often lead to increased risk of cyber-attacks or other threats to the global financial systems. Geopolitical conflicts and tensions may hamper our ability to manage such complexity or risk and may result in significant financial, reputational and other losses.

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As with other Japanese companies, we are exposed to heightened risks of large-scale natural disasters, particularly earthquakes, including any ensuing tsunami. If a large-scale earthquake occurs in areas where our business function is concentrated, such as the Tokyo metropolitan area, or where the facilities, systems, networks and other infrastructure critical to our operations are located, our financial position and business results could be adversely affected.

Our risk management policies and procedures may be insufficient to address the consequences of these external events, resulting in our inability to continue to operate a part or the whole of our business. In addition, our redundancy and backup measures and other measures to strengthen our operational resilience may not be sufficient to avoid a material disruption in our operations, and our business continuity framework and contingency plans may not address all eventualities that may occur in the event of a material disruption caused by a large-scale natural disaster.

Climate-related risks could have a material adverse impact on us and our clients.

We are exposed to climate-related physical risks and risks arising from the process of transitioning to a less carbon-dependent economy. Climate-related physical risks include increased severity and frequency of adverse weather events, such as extreme storms and flooding, and longer-term shifts in climate patterns, such as rising temperatures and sea levels and changes in precipitation amount and distribution. Such physical risks may have adverse impacts on us, both directly on our business operations and as a result of impacts on our borrowers and counterparties, such as declines in the value of loans, investments, real estate and other assets, disruptions in business operations and economic activity, including supply chains, changes in prices of raw materials, commodities and energy, and market volatility.

Transition risks include changes in regulations, market preferences and technologies relating to carbon emissions. The possible adverse impacts of transition risks include asset devaluations, increased operational and compliance costs, and an inability to meet regulatory or market expectations. For example, various jurisdictions in which we operate have adopted or are considering adoption of disclosure and financial reporting requirements, which vary in scope and other respects. Such regulatory requirements and stakeholder expectations may result in increased regulatory compliance and litigation risks and costs. We and our borrowers and counterparties may also be unable to adapt product and service offerings, loan and investment portfolio management approaches, governance frameworks and practices, or other ways in which we conduct our business and manage our capital and risk profile to changes in regulatory and market expectations relating to carbon emissions. These adverse impacts or perceptions or expectations of such impacts may result in deterioration in the profitability, financial health, creditworthiness or capital adequacy of affected businesses, including us.

Because the timing and nature of climate-related events and regulatory and market changes in reaction to them may be difficult or impossible to predict, our risk management strategies may not be effective in mitigating climate-related risk exposure. Regulatory and market expectations regarding climate change may shift rapidly and generate conflicting views and approaches and may further develop in ways that diverge from our expectations or vary from market to market. The methodologies and data used to monitor and manage climate-related risks also continue to evolve and currently utilize information and estimates derived from information or factors which are currently available but which may be revised or replaced.

We have defined and disclosed our aspirational climate-related goals and other relevant information based on the standards that have been adopted by us or are applicable to us. Such goals may prove to be considerably more costly or difficult than currently expected, or even impossible, to achieve, particularly given the high degree of uncertainties surrounding climate-related developments. Uncertainties may further increase depending on the nature and extent of the involvement, cooperation or reaction of our borrowers, counterparties and business partners as well as industry groups, governmental organizations and other stakeholders in or to our efforts to achieve such goals. In addition, if our climate-related risk assessment and disclosure that we make and plan to enhance with the intent to be aligned with relevant recommendations and market, regulatory and other standards are deemed insufficient or inappropriate, if our climate-related measures, including those designed to facilitate the transition to a less carbon-dependent economy, do not proceed as planned or become subject to criticism, if our climate-related risk management proves not to be as effective as expected, if we fail, or are deemed to have failed, to meet evolving market expectations or comply with increasingly complex regulatory requirements relating to climate change, including risk management, capital adequacy and disclosure requirements and standards, or if, as a result of any of the foregoing, we are considered to be failing to fulfill our responsibility to society, then our corporate value may be impaired and our business, financial condition and results of operations may be adversely affected.

Risks Related to Our Strategies and Our Major Investees

Our business may be adversely affected by competitive pressures, which have partly increased due to regulatory changes and recent market changes in the financial industry domestically and globally.

Competition in the financial services industry may further intensify due to the increase in the number of non-financial institutions entering the financial services industry with alternative services, such as electronic settlement services, as a result of development of new technologies as well as significant changes in regulatory barriers. Competition may also further increase as other

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global financial institutions enhance their competitive strength through development or adoption of new technologies as well as mergers, acquisitions, strategic alliances, and profit enhancement and other measures.

Under such circumstances, although we have been implementing various business strategies on a global basis designed to strengthen our competitive position and profitability, our business, financial condition and results of operations may be adversely affected if these strategies fail to produce the results we expect or if we are required to delay or otherwise change these strategies. Our competitiveness may decline because of various factors, including where:

•the balance of customer deposits cannot be maintained or does not grow as anticipated;

•the volume of loans made to borrowers cannot be maintained or does not increase as anticipated;

•our income from interest spreads on loans does not improve as anticipated;

•the fair value of our financial assets fluctuate to a larger extent than anticipated;

•our fee income cannot be maintained or does not increase as much or quickly as we aim to do;

•our strategy to build a business infrastructure for new services and products through digital transformation, use of new technologies or otherwise does not proceed as planned;

•customer or market demands for alternative products or services increase at a more rapid pace than expected thereby negatively affecting the demand for our financial products or services;

•our strategies to improve financial or operational efficiency is not achieved as expected;

•clients and business opportunities are lost, or costs and expenses significantly exceed our expectations, as a result of the ongoing or planned strategies to streamline our business portfolio, to integrate our systems, or to improve financial and operational efficiency not being achieved as expected;

•we are unable to hire or retain sufficient human resources;

•our foreign currency funding becomes limited or unavailable;

•we are restricted in agility or flexibility in investing in non-financial institutions under applicable laws and regulations in and outside of Japan; and

•rapid and significant deposit outflows caused by deteriorated customer confidence in our financial health or market confidence in the financial industry result in a lack of liquidity.

Our strategy to expand the range of our financial products and services and the geographic scope of our business globally may fail if we are unable to anticipate or manage new or expanded risks that entail such global expansion.

As we expand our business operations and operate our business as a global financial institution, we may become exposed to new and increasingly complex risks associated with such expansion. We may not be able to establish appropriate internal controls or risk management systems for the entire MUFG Group, including subsidiaries, or to hire or retain necessary human resources to effectively deal with compliance, regulatory, market and other risks entailing the expanded scope of our operations, products and services, including adoption or integration of new technologies as well as new local market and regulatory environments, in all cases and, as a consequence, our financial condition and results of operations may be adversely affected.

As a strategic measure implemented in an effort to become the world’s most trusted financial group, we have acquired businesses, made investments and entered into capital alliances on a global basis, particularly in the United States and Europe as well as the Asia-Pacific region, including India. Our major overseas subsidiaries include Krungsri, a subsidiary in Thailand, and Bank Danamon, a subsidiary in Indonesia, and our recent acquisitions and investments include acquisitions of asset management and investor services companies and investments in non-bank financial institutions mostly in the Asia-Pacific region. We currently plan to continue to pursue opportunities to acquire businesses, make investments and enter into capital alliances globally. Our acquisition, investments and capital alliances, however, may not proceed as planned or may be changed or dissolved, we may not achieve the synergies or other results that we expected, or we may incur impairment or valuation losses on securities acquired or intangible assets, including goodwill, recorded in connection with such business acquisitions, investments or business alliances, because of, among other things, political, geopolitical and social instability and conflicts, stagnation of the economy, fluctuations of the financial market, inability to obtain regulatory approvals, changes in the laws, regulations or accounting standards, changes in the strategies or financial condition of our acquirees, investees or alliance partners that are inconsistent with our interests, and unanticipated changes in the local market, industry or business environment affecting our acquirees, investees or alliance partners. These and other similar circumstances may adversely affect our business strategies, financial condition and results of operations. In addition, we may be unable to achieve the benefits expected from our efforts to expand business operations if our expansion strategy does not proceed as planned.

If the goodwill recorded in connection with our acquisitions becomes impaired, we may be required to record impairment losses, which may adversely affect our financial results. We record the excess of the purchase price over the fair value of the assets and

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liabilities of the acquired companies as goodwill. As of March 31, 2026, the total balance of goodwill was ¥566.5 billion. U.S. GAAP requires us to test goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. For further information, see Note 6 to our consolidated financial statements.

Our efforts to offer new products and services or penetrate new markets may not succeed due to any of the foregoing reasons or other reasons, including if product or market opportunities develop more slowly than expected, if our new products and services are not well accepted among customers, if the profitability of opportunities is undermined by competitive pressures, regulatory limitations or changes in our business environment, if our planned acquisitions, investments or capital alliances are not approved by regulators or do not proceed as planned, or if our acquisitions, investments or capital alliances fail to achieve the synergies or other results that we expect.

If our strategic alliance with Morgan Stanley fails, we could suffer financial or reputational loss.

We have a global strategic alliance with Morgan Stanley, under which we operate two joint venture securities companies in Japan, engage in joint corporate finance operations in the United States and pursue other cooperative opportunities. We hold approximately 23.9% of the voting rights in Morgan Stanley as of March 31, 2026 and continue to hold approximately $521.4 million of perpetual non-cumulative non-convertible preferred stock with a 10% dividend. In addition, we currently have two representatives on Morgan Stanley’s board of directors. We maintain this strategic alliance with a view towards long-term cooperation with Morgan Stanley, and plan to deepen the strategic alliance. However, due to any unexpected changes in social, economic, market or financial conditions, changes in the regulatory environment, or any failure to integrate or share staff, products or services, or to operate, manage or implement the business strategy of the joint venture securities companies or other cooperative opportunities as planned, we may be unable to achieve the expected synergies from this alliance.

If our strategic alliance with Morgan Stanley is terminated, it could have a material negative impact on our business strategy, financial condition and results of operations. For example, because we conduct our securities operations in Japan through the joint venture companies we have with Morgan Stanley, such termination may result in our inability to attain the planned growth in this line of business.

In addition, with our current investment in Morgan Stanley, we have neither a controlling interest in, nor control over the business operations of, Morgan Stanley. If Morgan Stanley makes any business decisions that are inconsistent with our interests, we may be unable to achieve the goals set out for the strategic alliance. Furthermore, although we do not control Morgan Stanley, given the magnitude of our investment, if Morgan Stanley encounters financial or other business difficulties due to adverse changes in the economy, regulatory environment or other factors, we may suffer a financial loss on our investment or damage to our reputation.

We apply equity method accounting to our investment in Morgan Stanley in our consolidated financial statements. As a result, Morgan Stanley’s performance affects our results of operations, and Morgan Stanley has contributed to a significant portion of our net income and revenue in recent periods. Rule 3-09 of Regulation S-X requires Morgan Stanley’s financial statements to be included in this Annual Report. In addition, fluctuations in Morgan Stanley’s stock price or in our equity ownership interest in Morgan Stanley may cause us to recognize losses on our investment in Morgan Stanley.

Risks Related to Our Ability to Meet Regulatory Capital Requirements

We may not be able to maintain our capital ratios and other regulatory ratios above minimum required levels, which could result in various regulatory actions, including the suspension of some or all of our operations.

We, as a holding company, and our Japanese banking subsidiaries are required to maintain risk-weighted capital ratios and leverage ratios above the levels specified in the guidelines adopted by the FSA to implement the Basel III framework. As of March 31, 2026, our total risk-adjusted capital ratio was 16.85% compared to the minimum risk-adjusted capital ratio required of 12.18%, our Tier 1 capital ratio was 14.95% compared to the minimum Tier 1 capital ratio required of 10.18%, and our Common Equity Tier 1 capital ratio was 12.47% compared to the minimum Common Equity Tier 1 capital ratio required of 8.68%, each including a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.18%. As of the same date, our leverage ratio was 4.94% compared to the minimum leverage ratio required at 3.95%, which consisted of the minimum requirement at 3.15% and the applicable G-SIB leverage ratio buffer requirement set at 50% of a G-SIB surcharge plus an additional 0.05%. Our capital and leverage ratios are calculated in accordance with Japanese banking regulations based on information derived from our financial statements prepared in accordance with Japanese GAAP.

The Financial Stability Board has identified us as one of G-SIBs. The banks that are included in the list of G-SIBs are subject to a capital surcharge to varying degrees depending on the bucket to which each bank is allocated. As the list of G-SIBs is expected to be updated annually, we may be required to meet stricter capital ratio requirements.

If our or our Japanese banking subsidiaries’ capital ratios or leverage ratios fall below the required levels, including various capital buffers or a leverage buffer, the FSA may require us to take a variety of corrective actions, including abstention from making

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capital distributions, such as dividends, share buybacks, interest payments on, and redemption and repurchase of, Additional Tier 1 capital instruments and bonus payments, and suspension of our business operations. In addition, some of our banking subsidiaries are subject to the local capital adequacy ratio and other regulatory ratio requirements of various foreign countries, and if their ratios fall below the required levels, the local regulators will require them to take a variety of corrective actions.

Factors that will affect our and our bank subsidiaries’ capital ratios or leverage ratios include:

•fluctuations in our or our banking subsidiaries’ portfolios due to deterioration in the creditworthiness of borrowers and the issuers of equity and debt securities;

•difficulty in refinancing or issuing instruments upon redemption or at maturity of such instruments to raise capital under terms and conditions similar to prior financings or issuances;

•declines in the value of our or our banking subsidiaries’ securities portfolios;

•adverse changes in foreign currency exchange rates;

•adverse revisions to the capital ratio and other regulatory ratio requirements;

•reductions in the value of our or our banking subsidiaries’ deferred tax assets; and

•other adverse developments.

We are also subject to the FSA’s regulations requiring G-SIBs in Japan to maintain certain minimum levels of capital and liabilities that are deemed to have loss-absorbing and recapitalization capacity, or External TLAC, and allocate a certain minimum level of External TLAC to any material subsidiary within their respective groups of companies, or Internal TLAC. As of March 31, 2026, we maintained 23.25% of External TLAC on a risk-weighted assets basis compared to the required minimum ratio of 18.00% and 9.06% of External TLAC on a total exposure basis compared to the required minimum ratio of 7.10%. Within the MUFG Group, MUFG Bank, Mitsubishi UFJ Trust and Banking, and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. are designated as our material subsidiaries. We may become subject to various regulatory actions, including restrictions on capital distributions, if we are unable to maintain our External TLAC ratios or the amount of Internal TLAC allocated to any of our material subsidiaries in Japan above the minimum levels required by the standards imposed by the FSA, or if the capital buffers are used and reduced below the required level to make up for our required External TLAC ratio on a risk-weighted assets basis. Our External TLAC ratios and the amount of our Internal TLAC are affected by various factors that affect our capital ratios and leverage ratios described above. Although we plan to issue TLAC-qualified debt in an effort to meet the minimum required levels of External TLAC ratios and Internal TLAC amounts, we may fail to do so if we are unable to issue or refinance TLAC-qualified debt as planned.

For a discussion of the applicable regulatory guidelines and our capital ratios, see “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation” and “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Capital Adequacy.”

Fluctuations in foreign currency exchange rates may result in transaction losses on translation of monetary assets and liabilities denominated in foreign currencies as well as foreign currency translation losses with respect to our foreign subsidiaries and equity method investees.

Fluctuations in foreign currency exchange rates against the Japanese yen create transaction gains or losses on the translation into Japanese yen of monetary assets and liabilities denominated in foreign currencies. To the extent that our foreign currency-denominated assets and liabilities are not matched in the same currency or appropriately hedged, we could incur losses due to future foreign exchange rate fluctuations. During the fiscal year ended March 31, 2026, the average balance of our foreign interest-earning assets was ¥133,949.4 billion and the average balance of our foreign interest-bearing liabilities was ¥90,054.7 billion, representing 38.7% of our average total interest-earning assets and 29.3% of our average total interest-bearing liabilities during the same period. Due to foreign currency exchange rate fluctuations, we may incur losses attributable to net transaction losses on the translation into Japanese yen of monetary assets and liabilities denominated in foreign currencies, net losses on currency derivative instruments entered into for trading purposes, and net losses on translation into Japanese yen of securities accounted for under the fair value option. In addition, we may incur foreign currency translation losses with respect to our foreign subsidiaries and equity method investees due to fluctuations in foreign currency exchange rates. For a discussion on foreign currency translation impacts on our financial statements, see “Item 5.A. Operating and Financial Review and Prospects—Operating Results—Effect of Change in Exchange Rates on Foreign Currency Translation.”

Credit Risk

We may suffer additional credit-related losses in the future if our borrowers are unable to repay their loans as expected or if the measures we take in reaction to, or in anticipation of, our borrowers’ deteriorating repayment abilities prove inappropriate or insufficient.

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If the economic conditions in Japan or other parts of the world, including emerging countries, or in particular industries, including the real estate industry and the financial industry, to which we have significant credit risk exposure, worsen, or if industrial and trade policies adopted in major markets, climate change, geopolitical conflicts, fluctuations in commodity prices, including those arising from changes in geopolitical conditions, real estate or stock prices or in interest or foreign exchange rates, changes in the competitive environment or other developments adversely affect global or local economic conditions or particular industries or borrowers, our problem loans and credit-related expenses and losses may increase. An increase in problem loans and credit-related expenses and losses would adversely affect our results of operations, weaken our financial condition and erode our capital base.

We may provide additional loans, equity capital or other forms of support to troubled borrowers in order to facilitate their restructuring and revitalization efforts. We may also forbear from exercising some or all of our rights as a creditor against them, and we may forgive loans to them in conjunction with their debt restructurings. We may take these steps even when such steps might not be warranted from the perspective of our short-term or narrow economic interests or a technical analysis of our legal rights against those borrowers, in light of other factors such as our longer-term economic interests and our commitment to supporting the Japanese or broader economy. These practices may substantially increase our exposure to troubled borrowers and increase our losses. Credit losses may also increase if we elect, or are forced by economic or other considerations, to sell or write off our problem loans at a larger discount, in a larger amount or in a different time or manner, than we may otherwise want.

Our loan losses could prove to be materially different from our estimates and could materially exceed our current allowance for credit losses, in which case we may need to provide for additional allowance for credit losses and may also record credit losses beyond our allowance. Our allowance for credit losses in our loan portfolio is based on evaluations of customers’ creditworthiness and the value of collateral we hold as well as macroeconomic trends. While we closely observe conditions of our individual borrowers and industry and macroeconomic trends, if we need to provide for additional allowance for credit losses, or the value or liquidity of collateral declines, due to deterioration in domestic or global economic conditions, commodity price fluctuations, financial market deterioration or other conditions specific to certain borrowers, we may incur significant credit losses.

Also, the regulatory standards or guidance on establishing allowances may also change, causing us to change some of the evaluations used in determining the allowances. As a result, we may need to provide for additional allowance for credit losses.

Our efforts to diversify our portfolio to avoid any concentration of credit risk exposures to particular industries or counterparties may prove insufficient. For example, our credit exposures to the real estate and financial industries are relatively high in comparison to other industries. The credit quality of borrowers in such industries does not necessarily correspond to general economic conditions in Japan or other parts of the world, and adverse developments in the real estate or financial market may disproportionately increase our credit losses.

We may incur further losses as a result of financial difficulties relating to other financial institutions, both directly and through the effect they may have on the overall banking environment and on their borrowers.

Declining asset quality and other financial problems may exist, arise or worsen at some domestic and foreign financial institutions, including banks, non-bank lending and credit institutions, securities companies, insurance companies, and investment funds and other financial intermediaries. Financial difficulties relating to financial institutions may not only lead to liquidity and insolvency problems for such financial institutions but also result in systemic problems adversely affecting the financial market and the wider economy. Financial difficulties relating to financial institutions could adversely affect us because we have extended loans, some of which may need to be classified as impaired loans, to financial institutions that are not our consolidated subsidiaries. Our loans to banks and other financial institutions have been around 20% of our total loans as of each year-end in the three fiscal years ended March 31, 2026, with the percentage being 22.3% as of March 31, 2026. We may also be adversely affected because we enter into transactions, such as derivative transactions, in the ordinary course of business, with other banks and financial institutions as counterparties. For example, we enter into credit derivatives with banks, broker-dealers, insurance companies and other financial institutions for managing credit risk exposures, for facilitating client transactions, and for proprietary trading purposes. In addition, we may be adversely affected because:

•we are shareholders of financial institutions;

•financial institutions that face difficulties may terminate or reduce financial support to borrowers, putting such borrowers under financial stress and causing our loans to such borrowers to be impaired;

•we may be requested to participate in providing support to distressed financial institutions;

•the government may elect to provide regulatory, tax, funding or other benefits to financial institutions under its supervision or control to strengthen their capital or increase their profitability or for other purposes, causing our competitiveness against such financial institutions to weaken;

•our deposit insurance premiums may rise if deposit insurance funds prove to be inadequate;

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•bankruptcies or government control or other intervention of financial institutions may generally undermine the confidence of depositors and investors in, or adversely affect the overall business environment for, financial institutions; and

•negative media coverage of the financial industry or system, regardless of its accuracy and applicability to us, may harm our reputation as well as market confidence in the financial industry and system.

Risk Relating to Our Strategic Equity Portfolio

If the Japanese stock market or other global markets decline in the future, we may incur losses on our securities portfolio and our capital ratios will be adversely affected.

Our strategic equity investments in Japan, which account for a vast majority of our total domestic marketable equity securities, were approximately ¥3.7 trillion as of March 31, 2026. A decline in stock prices adversely affects the value of our equity portfolio and may also reduce our regulatory capital ratios because unrealized gains and losses on the equity securities we hold are reflected in the calculation of such ratios. Weakening or stagnant economic conditions in Japan, the United States, China, the Eurozone and Asian countries may have a significant negative impact on Japanese companies, which in turn will cause their stock prices to decline. Japanese stock prices may fluctuate significantly and negatively in future periods, as the global economy remains volatile and investors continue to observe the changes in economic, monetary and trade policies mainly in these countries and regions. Concerns over the impact of geopolitical tensions and conflicts in various parts of the world on Japanese companies may also adversely affect stock prices in Japan. In addition, the global trend towards further reduction in risk assets could result in lower stock prices.

Market Risk

Fluctuations in interest rates, foreign currency exchange rates and stock prices could adversely affect the value or the yield of our portfolio.

We undertake extensive financial market operations involving a variety of financial instruments, including derivatives, and hold large volumes of such financial instruments. As a result, our financial condition and results of operations are subject to the risks relating to these operations and holdings. The primary risks are fluctuations in interest rates, foreign currency exchange rates and stock prices in and outside of Japan. As of March 31, 2026, approximately 27.1% of our total assets were financial instruments which we measure at fair value. The aggregate carrying amount of the Japanese government and corporate bonds and foreign bonds, including U.S. Treasury bonds, that we held as of March 31, 2026 was 8.5% of our total assets. In particular, the Japanese national government and Japanese government agency bonds accounted for 7.2% of our total assets as of March 31, 2026. If market interest rates decline due to such factors as changes in the monetary policies of central banks in various jurisdictions, the yield on the Japanese government bonds and foreign government bonds that we hold may also decline. If market interest rates rise, on the other hand, we may incur significant losses on sales of, and valuation losses on, our bond portfolio, and our debt funding costs may also increase significantly. Furthermore, if short-term interest rates rise to a larger extent than long-term interest rates, our net interest income may be adversely affected as banks, including us, generally pay interest on deposits based on short-term interest rates and earn income on loans based on long-term interest rates.

Appreciation of the Japanese yen against the U.S. dollar and other major currencies causes the yen-converted value of our foreign currency-denominated investments to decline and may cause us to recognize significant losses on sales of, or valuation losses on, such investments in our financial statements. Furthermore, if stock prices decline, and the value of marketable equity securities and trading account securities that we hold also declines, we may incur significant losses on sales of, and valuation losses on, our equity securities and trading account securities portfolios. In addition, the derivative financial instruments in our trading portfolio may cause us to record significant gains or losses, when sold or marked to market, and may fluctuate from period to period due to numerous factors that are beyond our control, including interest rate levels, foreign currency exchange rates, stock price fluctuations, the credit risk of our counterparties, and general market volatility. Our assessment and management of market risks, including those related to fluctuations in interest rates, foreign currency exchange rates and securities prices, may prove insufficient and, as a result, our actual losses in the future may exceed our estimated market risk exposure.

Funding Liquidity Risk

Deterioration in market liquidity or other external circumstances or an actual or perceived decline in our creditworthiness could negatively affect our ability to access and maintain liquidity.

Our liquidity may be impaired by factors such as an inability to raise funding in financial markets, an increase in our funding costs, unexpected increases in cash or collateral requirements, an inability to sell assets or enter into or settle other transactions as planned or needed, and an inability to attract or retain deposits. These situations may arise due to circumstances which we may be unable to control but which have occurred in the past, including market or economic disruptions, financial system instability, and a downgrade in our credit ratings, or circumstances specific to us, including an actual or perceived decline in our creditworthiness. Insufficient liquidity may have a material adverse impact on our business, operating results and financial condition.

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Assuming the relevant credit rating agencies downgraded the credit ratings of MUFG, MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Securities Holdings as of March 31, 2026 by one-notch on the same date, we estimate that MUFG and its three main subsidiaries would have been required to provide approximately ¥23.8 billion of additional collateral postings under their derivative contracts. Assuming a two-notch downgrade by the credit rating agencies occurring on the same date, we estimate that the additional collateral postings for the same MUFG group companies under their derivative contracts would have been approximately ¥149.4 billion.

Rating agencies regularly evaluate us and our major subsidiaries as well as our and their respective debt securities. Their ratings are based on a number of factors, including their assessment of the relative financial strength of MUFG or of the relevant subsidiary, as well as conditions generally affecting the financial services industry in Japan or on a global basis, some of which are not entirely within our control. As a result of changes in their evaluation of these factors or in their rating methodologies, rating agencies may downgrade our ratings or our subsidiaries’ ratings.

Operational Risk

We may become subject to regulatory actions or other legal proceedings relating to our transactions or other aspects of our operations, which could result in significant financial losses, restrictions on our operations and damage to our reputation.

We conduct our business subject to ongoing regulation and associated regulatory and legal risks. Global financial institutions, including us, currently face heightened regulatory scrutiny as a result of the concerns developing in the global financial sector, and growing public pressure to demand even greater regulatory surveillance following several high-profile scandals and risk management failures in the financial industry. In the current regulatory environment, we are subject to various regulatory inquiries or investigations from time to time in connection with various aspects of our business and operations. In addition, multiple government authorities with overlapping jurisdiction more frequently conduct investigations and take other regulatory actions in coordination with one another or separately on the same or related matters. Our controls may be found insufficient in addressing regulatory or public concerns relating to money laundering, economic sanctions, bribery, corruption, financial crimes, or unfair or inappropriate business practices, or in meeting market or industry rules or standards, customer protection requirements, or corporate behavior expectations.

For example, we have received requests and subpoenas for information from government agencies in some jurisdictions in connection with their investigations into past submissions made by panel members, including us, to the bodies that set various interbank benchmark rates as well as investigations into foreign exchange related practices of global financial institutions. Some of the investigations into foreign exchange related practices resulted in our payment of monetary penalties to the relevant government agencies. We are cooperating with those investigations. In connection with these matters, we and other financial institutions are involved as defendants in a number of civil lawsuits.

These developments or other similar matters may result in additional regulatory actions against us or agreements to make significant additional settlement payments. These developments or other matters to which we are subject from time to time may also expose us to substantial monetary damages, legal defense costs, criminal and civil liability, and restrictions on our business operations as well as damage to our reputation. Our ability to obtain regulatory approvals for future strategic initiatives may also be adversely affected. The outcome of such matters, including the extent of the potential impact of any unfavorable outcome on our financial results, however, is inherently uncertain and difficult to predict. The extent of financial, human and other resources required to conduct any investigations or to implement any corrective or preventive measures is similarly uncertain and could be significant. Such resources may also be difficult for us to secure in a timely manner.

Additionally, on June 14, 2024, the Securities and Exchange Surveillance Commission of Japan (“SESC”) issued and announced a recommendation that the Prime Minister and the Commissioner of the Financial Services Agency (“FSA”) take administrative action against our subsidiaries MUFG Bank and Mitsubishi UFJ Morgan Stanley Securities and our securities affiliate. The recommendation was based on the SESC’s findings of, among other things, inappropriate sharing of customer information as well as improper solicitation of business in contravention of the prohibition on engagement by Registered Financial Institutions in securities-related business activities. The SESC’s findings concerned, among other things, the business collaboration among the bank and securities companies and the management of non-public corporate information by the bank and securities companies. In response to the SESC’s recommendation, on June 24, 2024, the FSA issued business improvement orders to MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities and our securities affiliate under Articles 51-2 and 51 of the Financial Instruments and Exchange Act of Japan. Additionally, the FSA has required MUFG and MUFG Bank to submit reports under Articles 52-31 and 24 of the Banking Act of Japan. In response, on July 19, 2024, MUFG, MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities and our securities affiliate submitted documents including business improvement plans to the FSA. MUFG, MUFG Bank, Mitsubishi UFJ Morgan Stanley Securities and our securities affiliate are continuing to take actions based on these orders and requirements.

On December 16, 2024, MUFG Bank was required by the FSA to submit a report under Article 24 of the Banking Act of Japan with regard to the incident in which a former employee stole customers’ assets from safe deposit boxes. In response, MUFG Bank submitted a report including measures designed to prevent recurrence to the FSA on January 16, 2025. MUFG Bank is continuing to implement the measures and take other actions.

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Failure to safeguard personal and other confidential information may result in liability, reputational damage or financial losses.

As our operations expand in volume, complexity and geographic scope, we are exposed to increased risk of confidential information in our possession being lost, leaked, altered or falsified as a result of human or system error, misconduct, unlawful behavior or scheme, unauthorized access or natural or human-caused disasters. Our information systems and information management policies and procedures may not be sufficient to safeguard confidential information against such risks. As a financial institution in possession of customer information, we are obligated to treat personal and other confidential information as required by the Act on the Protection of Personal Information, the Act on the Use of Personal Identification Numbers in the Administration of Government Affairs, the Banking Act and the Financial Instruments and Exchange Act of Japan, as well as other similar laws and regulations of other jurisdictions in which we operate. In the event that personal information in our possession about our customers or employees is leaked or improperly accessed and subsequently misused, we may be subject to liability and regulatory action. We may have to provide compensation for economic loss and emotional distress arising out of a failure to protect such information. In addition, such incidents could create a negative public perception of our operations, systems or brand, which may in turn decrease customer and market confidence and materially and adversely affect our business, operating results and financial condition. Moreover, any loss, leakage, alteration or falsification of confidential information, or any malfunction or failure of our information systems, may result in significant disruptions to our business operations or plans or may require us to incur significant financial, human and other resources to implement corrective measures or enhance our information systems and information management policies and procedures.

Our operations are highly dependent on our information, communications and transaction management systems and are subject to an increasing risk of cyber-attacks and other information security threats and to changes in the business and regulatory environment.

Our information, communications and transaction management systems, which include not only our own proprietary systems but also those third-party systems that are provided for our use or to which our systems are connected, constitute a core infrastructure for our operations. The proper functioning of our information, communications and transaction management systems is critical to our ability to efficiently and accurately process a large volume of transactions, ensure adequate internal controls, appropriately manage various risks, and otherwise service our clients and customers, particularly in the current business environment with increasing dependence on remote or online networks and our strategy to promote digitization.

Cyber-attacks, unauthorized access and computer viruses are becoming increasingly more sophisticated and more difficult to predict, detect and prevent. For instance, our bank internal financial transaction systems or automatic teller machines may become the target of cyber-attacks for monetary gain and other purposes, and our bank internal information systems have in the past, and may in the future, become the target of confidential information theft. In addition, our websites or customer internet banking systems have in the past, and may in the future, become the target of cyber-attacks for political, geopolitical and other purposes. These cyber threats, including through use of artificial intelligence, or AI, quantum technology, and other emerging or new technologies, as well as our failure to appropriately and timely anticipate and deal with such threats, system and human errors, inability of third-party telecommunications, cloud and other service providers and vendors to maintain required services, vulnerabilities and other issues associated with open-source software, external library and other software supply chains, and changes associated with emerging or new technologies such as AI and quantum technology, or in response to industry, regulatory and other developments, could cause disruptions to, and malfunctions of, information, communications and transaction management systems and result in fraud, including identity theft and bypassing of verification controls, or other misconduct, unauthorized transactions, unintended releases of confidential and proprietary information stored in or transmitted through the systems, interruptions in the operations of our clients, customers, counterparties and service providers, and deterioration in our ability to service our clients and customers. In addition, our banking and other transaction management systems may not meet all applicable business and regulatory requirements in an environment where such requirements are becoming increasingly sophisticated and complicated. Furthermore, our system development or improvement projects, many of which are critical to our ability to operate in accordance with market and regulatory standards and some of which we are required to implement in conjunction with upgrades made to interbank or other third-party systems to which our systems are connected, may not be completed as planned due to the complexity and other difficulty relating to such projects or uncertainty and unpredictability surrounding governmental policy-making and regulatory developments relating to AI, quantum technology, digital assets, and other products and services using blockchain and other emerging or new technologies. Moreover, our cybersecurity risk management framework and practices may be found inadequate, particularly in light of expanding regulatory requirements and growing market expectations, including those relating to incident reporting and risks associated with our use of third-party services and systems. These consequences could result in financial losses, including costs and expenses incurred in connection with countermeasures and improvements as well as compensation to affected parties, lead to regulatory actions, diminish our clients’ and customers’ satisfaction with and confidence in us, and harm our reputation in the market, which could in turn adversely affect our business, financial condition and results of operations. Moreover, significant financial, human and other resources may be required to design, implement and enhance measures to manage cyber and information security risks and comply with regulatory requirements.

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Transactions with counterparties in countries designated by the U.S. Department of State as state sponsors of terrorism may lead some potential customers and investors in the United States and other countries to avoid doing business with us or investing in our securities.

We, through our subsidiaries, engage in limited business activities with entities in or affiliated with Iran, including transactions with counterparties owned or controlled by the Iranian government, and our commercial banking subsidiary has a representative office in Iran for information gathering purposes only. The U.S. Department of State has designated Iran and other countries as “state sponsors of terrorism,” and U.S. law generally prohibits U.S. persons from doing business with such countries. We currently have limited business activities conducted with entities in or affiliated with such countries. Such business activities are conducted in accordance with our policies and procedures designed to ensure compliance with regulations applicable in the jurisdictions in which we operate and with exemptions and general licenses available under U.S. law. We have transactions with counterparties in or affiliated with countries designated as state sponsors of terrorism which consist of receiving deposits or holding assets on behalf of individuals residing in Japan who are citizens of countries designated as state sponsors of terrorism and processing payments to or from entities in or affiliated with these countries on behalf of our customers. These transactions do not have a material impact on our business or financial condition. For a further discussion of transactions required to be disclosed under the U.S. Iran Threat Reduction and Syria Human Rights Act of 2012, see “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—United States—Disclosure pursuant to Section 13(r) of the Securities Exchange Act of 1934.”

We are aware of initiatives by U.S. governmental entities and non-government entities, including institutional investors such as pension funds, to adopt or consider adopting laws, regulations or policies prohibiting transactions with or investment in, or requiring divestment from, entities doing business with Iran and other countries identified as state sponsors of terrorism. It is possible that such initiatives may result in our being unable to gain or retain entities subject to such prohibitions as customers, counter-parties or investors in our securities. In addition, depending on socio-political developments, our reputation may suffer due to our transactions with counterparties in or affiliated with these countries. The above circumstances could have an adverse effect on our business and financial condition.

Global financial institutions, including us, have become subject to an increasingly complex set of sanctions laws and regulations in recent years, and this regulatory environment is expected to continue. Moreover, the measures proposed or adopted vary across the major jurisdictions, increasing the cost and resources necessary to design and implement an appropriate global compliance program. The U.S. federal government and some state governments in the United States have enacted legislation designed to limit economic and financial transactions with Iran by limiting the ability of financial institutions that may have engaged in any one of a broad range of activities related to Iran to conduct various transactions in the relevant jurisdictions. In addition, in May 2018, the United States withdrew from participation in the Joint Comprehensive Plan of Action. Under subsequently issued executive orders, the United States may impose secondary sanctions against non-U.S. persons who engage in or facilitate a broad range of transactions and activities involving Iran. The Japanese government has also implemented a series of measures under the Foreign Exchange and Foreign Trade Act, such as freezing the assets of persons involved in Iran’s sensitive nuclear activities and development of nuclear weapon delivery systems, and our most recently modified policies and procedures take into account the current Japanese regulatory requirements. We continue to implement measures to enhance our policies and procedures to comply with such legislative and regulatory requirements. There remains a risk of potential regulatory action against us, however, if regulators perceive the modified policies and procedures not to be in compliance with applicable legislation and regulations.

Legal and regulatory changes could have a negative impact on our business, financial condition and results of operations.

As a global financial services provider, our business is subject to ongoing changes in laws, regulations, rules, policies, accounting standards or methods, voluntary codes of practice and interpretations in Japan and other markets where we operate. Major global financial institutions currently face an increasingly stricter set of laws, regulations and standards as a result of emerging or new technologies, political and geopolitical developments, environmental, social and governance concerns, efforts to combat increasingly sophisticated criminal activity, the increasing importance of ensuring system security, and other concerns enveloping the global financial sector. There is also growing political pressure to demand even greater capital and liquidity requirements and internal compliance and risk management systems following several high-profile scandals and risk management failures in the financial industry. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation.” The laws, regulations and standards that apply to us are often complex and, in many cases, we must make interpretive decisions regarding the application of such laws, regulations and standards to our business activities. Future developments or changes in laws, regulations, rules, policies, accounting standards or methods, voluntary codes of practice, interpretations and their effects are expected to require greater capital, human and technological resources as well as significant management attention, and may require us to modify our business strategies and plans. We may be unable to enhance our compliance management programs and systems, which, in some cases, are supported by third-party service providers, as required or planned. Our failure or inability to comply fully with applicable laws and regulations may lead to penalties, fines, public reprimands, damage to our reputation, issuance of business improvement and other administrative orders, enforced suspension of operations, our inability to obtain regulatory approvals for future strategic initiatives or, in extreme cases, withdrawal of authorization to operate, adversely affecting our business and results of operations.

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Because of our loans to consumers and our shareholdings in companies engaged in consumer lending, changes in the business or regulatory environment for consumer finance companies in Japan may further adversely affect our financial results.

We have a large loan portfolio in the consumer lending industry as well as large shareholdings in subsidiaries and equity method investees in the consumer finance industry. Our domestic loans to consumers amount to approximately one-tenth of our total outstanding loans. Of this amount, the consumer loans provided by Mitsubishi UFJ NICOS, Co., Ltd., which is our primary consumer financing subsidiary, were ¥557.5 billion as of March 31, 2026, compared to ¥498.7 billion as of March 31, 2025.

Mitsubishi UFJ NICOS’s consumer loan portfolio has been adversely affected by a series of legislative reforms and judicial decisions that were put in place in Japan through 2010, which have negatively affected the domestic consumer lending industry. These legal developments effectively reduced the maximum rate of interest that may be charged on consumer loans from 29.2% per annum to 15 to 20% per annum depending on the amount of loan principal, while leaving interest payments previously made in excess of the reduced maximum permissible interest rate, which is commonly referred to as “gray-zone interest,” generally recoverable. Following these legal developments and other industry developments, Mitsubishi UFJ NICOS revises its estimate of allowance for repayment of excess interest by updating management’s future forecast semi-annually to reflect updated reimbursement claims information and other data. As of March 31, 2024, 2025 and 2026, we had ¥7.1 billion, ¥5.4 billion and ¥11.4 billion of allowance for repayment of excess interest, respectively.

These developments have adversely affected, and these and any future developments may further adversely affect, the operations and financial condition of our subsidiaries, equity method investees and borrowers which are engaged in consumer lending, which in turn may affect the value of our related shareholdings and loan portfolio. For further information, See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan.”

Damage to our reputation could harm our businesses.

We are one of the leading financial institutions in Japan and one of the handful of G-SIBs in the world, and we aim to be the world’s most trusted financial group. Our ability to conduct business is indispensably dependent on the trust and confidence of our customers as well as local and international communities. Our reputation is critical in maintaining our relationships with stakeholders, including customers, investors, regulators, workforce, and the general public. If our reputation is damaged by negative perceptions of us, particularly in the rapidly changing and increasingly diversifying regulatory and market environment in which we operate, it may result in impairment of our corporate brand, loss of our existing or prospective customers or investors, or increased public or regulatory scrutiny, and may adversely affect our business, financial condition, and results of operations.

We are exposed to risks arising from our reliance upon third party vendors and service providers.

We engage in a wide array of financial and other related operations both domestically and internationally, relying on services and systems of external third-party vendors and service providers for our provision of various financial services, development and maintenance of our various systems, and certain other operations, while outsourcing certain operations to third-party vendors and service providers. We expect to become increasingly reliant on third-party vendors and service providers amid the recent rapid advancement of digitalization. Our measures designed to manage risks associated with such vendors and service providers, including through the implementation of measures designed to assess and monitor third party risks in accordance with internal rules adopted for third party risk management, may not effectively prevent or timely remediate all adverse consequences resulting from such risks. Incidents such as cyber-attacks affecting third parties as well as information leakage, unauthorized use of data, failure to comply with laws and regulations, and other misconduct on the part of a third party may result in a loss of confidence in us, our becoming subject to regulatory sanctions, or our incurring additional costs to deal with the consequences of these incidents. Furthermore, our operations may be adversely affected by a failure of a third party’s system or unavailability of or delay in a third party’s services resulting from a natural disaster or other causes.

We are exposed to risks related to the development and use of AI by us and others.

We continue to develop, make available to customers, and use AI for customer service improvement, operations optimization, risk management enhancement and other increasingly broader purposes and in increasingly sophisticated and complex manners. Although we have established and implemented, and continue to enhance, a controls framework and other measures designed to ensure appropriate, reliable and secure use of AI, these measures may not be sufficient to fully mitigate all risks associated with AI. For example, such risks include inaccurate, inappropriate or biased outputs generated through the use of AI, as well as unintended or undetected faulty decision-making or processing resulting from improper use or management of, and other causes associated with, AI. Additionally, data exfiltration or leakage, infringement of rights of others, cyber-attacks and other incidents involving improper use or misuse of AI technologies may occur due to issues associated with training data for, input information into or output information from, AI tools we use, or AI models, systems or services provided by third party vendors. Furthermore, we may become increasingly more reliant on a limited number of third party vendors, cloud infrastructures, or models for our AI tools and, as a result, our business and systems operations may become significantly more vulnerable to disruptions and other problems caused by incidents adversely

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affecting such vendors, infrastructures and models. In addition, laws, regulations, guidelines, and supervisory expectations relating to AI may continue to develop and evolve in ways that vary and can also be inconsistent within and across jurisdictions. Due to such regulatory uncertainty, we may be unable to timely and adequately respond to changes in the regulatory environment. As a result of any of the foregoing factors, we may be exposed to increased risks related to improper decision-making, data loss and information leakage, infringement of rights of others, system failures, cyber-attacks, reliance on third party vendors, including vendor concentration and irreplaceability, and regulatory changes, which may have a material and adverse impact on our business, financial condition, and operating results.

Risks Related to Owning Our Shares

It may not be possible for investors to effect service of process within the United States upon us or our directors or management members, or to enforce against us or those persons judgments obtained in U.S. courts predicated upon the civil liability provisions of the U.S. federal or state securities laws.

We are a joint stock company incorporated under the laws of Japan. Almost all of our directors or management members reside outside the United States. Many of our assets and the assets of these persons are located in Japan and elsewhere outside the United States. It may not be possible, therefore, for U.S. investors to effect service of process within the United States upon us or these persons or to enforce, against us or these persons, judgments obtained in the U.S. courts predicated upon the civil liability provisions of the U.S. federal or state securities laws. We believe there is doubt as to the enforceability in Japan, in original actions or in actions brought in Japanese courts to enforce judgments of U.S. courts, of claims predicated solely upon the U.S. federal or state securities laws mainly because the Civil Execution Act of Japan requires Japanese courts to deny requests for the enforcement of judgments of foreign courts if foreign judgments fail to satisfy the requirements prescribed by the Civil Execution Act, including:

•the jurisdiction of the foreign court be recognized under laws, regulations, treaties or conventions;

•proper service of process be made on relevant defendants, or relevant defendants be given appropriate protection if such service is not received;

•the judgment and proceedings of the foreign court not be repugnant to public policy as applied in Japan; and

•there exist reciprocity as to the recognition by a court of the relevant foreign jurisdiction of a final judgment of a Japanese court.

Judgments obtained in the U.S. courts predicated upon the civil liability provisions of the U.S. federal or state securities laws may not satisfy these requirements.

Risks Related to Owning Our American Depositary Shares

As a holder of American Depositary Shares, you have fewer rights than a shareholder of record in our shareholder register since you must act through the depositary to exercise these rights.

The rights of our shareholders under Japanese law to take actions such as voting, receiving dividends and distributions, bringing derivative actions, examining our accounting books and records and exercising appraisal rights are available only to shareholders of record. Because the depositary, through its custodian, is the record holder of the shares underlying the American Depositary Shares, or ADSs, only the depositary can exercise shareholder rights relating to the deposited shares. ADS holders, in their capacity, will not be able to directly bring a derivative action, examine our accounting books and records and exercise appraisal rights. We have appointed The Bank of New York Mellon as depositary, and we have the authority to replace the depositary.

Pursuant to the deposit agreement among us, the depositary and a holder of ADSs, the depositary will make efforts to exercise voting or any other rights associated with shares underlying ADSs in accordance with the instructions given by ADS holders, and to pay to ADS holders dividends and distributions collected from us. However, the depositary can exercise reasonable discretion in carrying out the instructions or making distributions, and is not liable for failure to do so as long as it has acted in good faith. Therefore, ADS holders may not be able to exercise voting or any other rights in the manner that they had intended, or may lose some or all of the value of the dividends or the distributions. Moreover, the depositary agreement that governs the obligations of the depositary may be amended or terminated by us and the depositary without ADS holders’ consent, notice, or any reason. As a result, ADS holders may be prevented from having the rights in connection with the deposited shares exercised in the way ADS holders had wished or at all.

ADS holders are dependent on the depositary to receive our communications. We send to the depositary all of our communications to ADS holders, including annual reports, notices and voting materials, in Japanese. ADS holders may not receive all of our communications with shareholders of record in our shareholder register in the same manner or on an equal basis. In addition, ADS holders may not be able to exercise their rights as ADS holders due to delays in the depositary transmitting our shareholder communications to ADS holders. For a detailed discussion of the rights of ADS holders and the terms of the deposit agreement, see Exhibit 2(c) to this Annual Report.

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Item 4. Information on the Company.

A.History and Development of the Company

MUFG is a bank holding company incorporated as a joint stock company (kabushiki kaisha) under the Companies Act of Japan. We are the holding company for MUFG Bank, Ltd. (formerly, The Bank of Tokyo-Mitsubishi UFJ, Ltd.), Mitsubishi UFJ Trust and Banking Corporation, Mitsubishi UFJ Securities Holdings Co., Ltd., Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., Mitsubishi UFJ NICOS Co., Ltd., Mitsubishi UFJ Asset Management Co., Ltd., and other companies engaged in a wide range of financial businesses.

On April 2, 2001, The Bank of Tokyo-Mitsubishi, Ltd., Mitsubishi Trust and Banking Corporation, or Mitsubishi Trust Bank, and Nippon Trust and Banking Co., Ltd. established Mitsubishi Tokyo Financial Group, Inc., or MTFG, to be a holding company for the three entities. Before that, each of the banks had been a publicly traded company. On April 2, 2001, through a stock-for-stock exchange, they became wholly-owned subsidiaries of MTFG, and the former shareholders of the three banks became shareholders of MTFG. Nippon Trust and Banking was later merged into Mitsubishi Trust Bank.

On June 29, 2005, the merger agreement between MTFG and UFJ Holdings, Inc. was approved at the general shareholders meetings of MTFG and UFJ Holdings. As the surviving entity, MTFG was renamed “Mitsubishi UFJ Financial Group, Inc.” The merger of the two bank holding companies was completed on October 1, 2005.

On September 30, 2007, Mitsubishi UFJ Securities Holdings, which was then called “Mitsubishi UFJ Securities Co., Ltd.,” or MUS, became our wholly-owned subsidiary through a share exchange transaction.

On October 13, 2008, we formed a global strategic alliance with Morgan Stanley and, as part of the alliance, made an equity investment in Morgan Stanley in the form of convertible and non-convertible preferred stock, and subsequently appointed a representative to Morgan Stanley’s board of directors.

On October 21, 2008, we completed a tender offer for outstanding shares of ACOM CO., LTD. common stock, raising our ownership in ACOM to approximately 40%.

On November 4, 2008, Bank of Tokyo-Mitsubishi UFJ completed the acquisition of all of the shares of common stock of UnionBanCal Corporation, or UNBC, not previously owned by Bank of Tokyo-Mitsubishi UFJ and, as a result, UNBC became a wholly-owned indirect subsidiary of MUFG.

On May 1, 2010, we and Morgan Stanley integrated our securities and investment banking businesses in Japan into two joint venture securities companies, one of which is Mitsubishi UFJ Morgan Stanley Securities. Mitsubishi UFJ Morgan Stanley Securities was created by spinning off the wholesale and retail securities businesses conducted in Japan from Mitsubishi UFJ Securities Holdings and subsequently assuming certain operations in Japan from a subsidiary of Morgan Stanley.

On June 30, 2011, we converted all of our Morgan Stanley’s convertible preferred stock into Morgan Stanley’s common stock, resulting in our holding approximately 22.4% of the voting rights in Morgan Stanley. Further, we appointed a second representative to Morgan Stanley’s board of directors on July 20, 2011. Following the conversion on June 30, 2011, Morgan Stanley became our equity-method affiliate. As of March 31, 2026, we held approximately 23.9% of the voting rights in Morgan Stanley and had two representatives appointed to Morgan Stanley’s board of directors. We and Morgan Stanley continue to pursue a variety of business opportunities in Japan and abroad in accordance with the global strategic alliance.

On December 18, 2013, we acquired approximately 72.0% of the total outstanding shares of Krungsri through Bank of Tokyo-Mitsubishi UFJ. As a result of the transaction, Krungsri has become a consolidated subsidiary of Bank of Tokyo-Mitsubishi UFJ.

On July 1, 2014, we integrated Bank of Tokyo-Mitsubishi UFJ’s operations in the Americas region with UNBC’s operations and changed UNBC’s corporate name to “MUFG Americas Holdings Corporation.” On the same day, Union Bank, N.A., which was MUFG Americas Holdings’ principal subsidiary and our primary operating subsidiary in the United States, was also renamed “MUFG Union Bank, N.A.” On July 1, 2016, MUFG Americas Holdings was designated as our U.S. intermediate holding company to comply with the FRB’s enhanced prudential standards.

On January 5, 2015, Bank of Tokyo-Mitsubishi UFJ integrated its Bangkok branch with Krungsri through a contribution in kind of the Bank of Tokyo-Mitsubishi UFJ Bangkok branch business to Krungsri, and Bank of Tokyo-Mitsubishi UFJ received newly issued shares of Krungsri common stock. As a result of this transaction, Bank of Tokyo-Mitsubishi UFJ’s ownership interest in Krungsri increased to 76.9%.

On October 1, 2017, we acquired all of the shares of common stock of Mitsubishi UFJ NICOS which we did not previously own and, as a result, Mitsubishi UFJ NICOS became a wholly-owned subsidiary of MUFG.

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On December 29, 2017, Bank of Tokyo-Mitsubishi UFJ initially acquired 19.9% of the shares of common stock of PT Bank Danamon Indonesia, Tbk. On May 1, 2019, MUFG Bank, Ltd. completed a series of transactions to increase its ownership interest in Bank Danamon to 94.1%, as a result of which Bank Danamon became MUFG Bank’s consolidated subsidiary.

On April 1, 2018, we changed Bank of Tokyo-Mitsubishi UFJ’s corporate name to “MUFG Bank, Ltd.”

On August 2, 2019, Mitsubishi UFJ Trust and Banking completed its acquisition of 100% of the shares in each of nine subsidiaries of Colonial First State Group Limited which collectively represent the global asset management business known as Colonial First State Global Asset Management, or CFSGAM, from Australian financial group Commonwealth Bank of Australia and its wholly-owned subsidiary Colonial First State Group Limited. As a result of the acquisition, the nine subsidiaries became our consolidated subsidiaries. In September 2019, CFSGAM was rebranded as First Sentier Investors and, in July 2025, was rebranded as First Sentier Group.

On April 2, 2021, Mitsubishi UFJ NICOS announced a plan to integrate its credit card settlement systems that have been maintained separately for various credit card brands. Specifically, the plan is to integrate the systems used for the DC credit card brand and the NICOS credit card brand into the system used for the MUFG credit card brand. As of December 2025, the integration of the systems for the MUFG credit card brand and the DC credit card brand was completed, and the integration of the system for the NICOS credit card brand is ongoing. The plan has an estimated aggregate budget of approximately ¥140 billion through the end of calendar year 2030. The plan may be modified to flexibly respond to changes in the business environment.

On December 1, 2022, MUFG Americas Holding completed the transfer of all of the shares in MUFG Union Bank to U.S. Bancorp.

On February 3, 2023, MUFG announced a plan to build a new MUFG Headquarters Building at the location where the MUFG and MUFG Bank head office building stood previously in order to accommodate the head office functions of the holding company, the commercial bank, the trust bank, and the securities company of the MUFG Group in one location. This plan is currently allocated a budget of approximately ¥209 billion through the planned completion in October 2030, subject to adjustments due to changes in relevant circumstances such as rising prices.

On April 1, 2024, Mitsubishi UFJ Trust and Banking transferred 100% of the shares in Mitsubishi UFJ Asset Management Co., Ltd. to MUFG as a dividend. As a result of the transaction, Mitsubishi UFJ Asset Management has become a directly held, wholly owned subsidiary of MUFG. Mitsubishi UFJ Asset Management was formed through the merger between Mitsubishi UFJ Kokusai Asset Management Co., Ltd. and MU Investments Co., Ltd. on October 1, 2023.

Our registered address is 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8330, Japan, and our telephone number is 81-3-3240-8111.

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B.Business Overview

We are one of the world’s largest and most diversified financial groups with total assets of ¥425.58 trillion as of March 31, 2026. The Group is comprised of MUFG Bank, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Morgan Stanley Securities (through Mitsubishi UFJ Securities Holdings), Mitsubishi UFJ NICOS, Mitsubishi UFJ Asset Management Co., Ltd., and other subsidiaries and affiliates, for which we are the holding company. As a bank holding company, we are regulated under the Banking Act of Japan. Our services include commercial banking, trust banking, securities, credit cards, consumer finance, asset management, leasing and many more fields of financial services. As of March 31, 2026, the Group had the largest overseas network among Japanese banks, consisting of approximately 2,000 business locations in more than 41 countries, domestic and overseas, including Krungsri in Thailand and Bank Danamon in Indonesia. MUFG’s role as the holding company is to strategically manage and coordinate the activities of our business groups. Group-wide strategies are determined by the holding company and executed by our subsidiaries.

Medium-Term Business Plan

Japan faces structural challenges such as a declining birth rate, an aging society and a shrinking population. At the same time, AI and other digital technologies have been rapidly developing and penetrating our daily lives, and the social and economic structures are being transformed through such new technologies and increasingly more sophisticated use of data, while work style and values are becoming more diverse. Our business environment is impacted by these accelerating megatrends and is changing significantly amid the growing fragmentation manifested in heightened geopolitical conflicts as well as changes in monetary policies, economic conditions and financial markets, including inflation and rising Japanese yen interest rates.

We seek to meet these changes through effective utilization of our ability to facilitate “connections,” leveraging our extensive network and diverse solutions. By seizing the opportunity presented by changes surrounding MUFG’s business through the current Medium-term Business Plan for the three-year period ending March 31, 2027, we seek to pursue and achieve growth. Through this Plan, we will continue to strive to meet expectations of all of our stakeholders—including customers, shareholders and employees—by achieving higher profitability and improved return on equity, while remaining “committed to empowering a brighter future.”

The descriptions of our Medium-term Business Plan below contain forward-looking statements reflecting our current intent, plans, targets, beliefs or expectations and are subject to risks, uncertainties and assumptions. See “Forward-Looking Statements” and “Item 3.D. Key Information—Risk Factors.”

Fundamental Direction

In our current Medium-term Business Plan, building on the strategic initiatives launched in accordance with our previous Medium-term Business Plan, we intend to focus on both growth strategies and efforts to facilitate social and environmental solutions through transformation and innovation. Accordingly, the current Medium-term Business Plan is built on three strategic pillars—(1) expand and refine growth strategies, (2) accelerate transformation and innovation, and (3) drive social and environmental progress.

In this era of accelerating changes and increasing division and disconnect, we aspire to maximize our ability to innovate and connect, to produce economic and social value as we continue to strive to fulfill our commitment to empowering a brighter future. We consider this commitment to be the most fundamental purpose of our existence, defining our values and vision, to be shared among all of us as "MUFG Way."

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Promoting Key Strategies

In order to pursue and achieve growth under the current Medium-term Business Plan, based on the three strategic pillars described above, we have formulated key strategies and identified priority issues under each pillar.

To “Expand & Refine Growth Strategies,” in Japan, we will aim to maximize customer life-time value by strengthening our retail customer base, while enhancing the succession business through a “corporate x wealth management” business model. Overseas, we will strive for higher profitability by evolving our Global Corporate & Investment Banking (GCIB) and Global Markets (GM) integrated business model, and seek to seize opportunities arising from Asia’s economic growth by strengthening our collaboration with subsidiary and partner banks. In addition, we will seek to enhance value provided to customers and strengthen our business foundations through initiatives to contribute to making Japan a leading asset management center and through value chain support in green transformation, while also taking on the challenge of building a new business portfolio for medium- to long-term growth.

To “Drive Social & Environmental Progress,” recognizing that pursuing social value together with economic value is key to enhancing corporate value, we have identified ten priority issues under three areas: “Sustainable society,” “Vibrant society,” and “Resilient society,” and we will seek to promote initiatives to address these issues.

To “Accelerate Transformation & Innovation,” we will strive to accelerate transformation of our corporate culture, including increasing agility, expand our human capital investment, increase our system development capacity, and enhance our AI/data infrastructure, while further improving our risk management and compliance.

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A. Expand & Refine Growth Strategies


Key strategies			Key initiatives
Strengthen domestic retail customer base			•Improve customer satisfaction by enhancing customer experience. By building long-term business relationships, maximize customer life-time value.
Strengthen corporate x wealth management (WM) business			•Offer diverse solutions through both corporate and individual customer-based approaches.
Evolve Global Corporate & Investment Banking-Global Markets integrated business model			•Pursue higher capital efficiency through GCIB-GM integrated business model through, e.g., collaboration between the primary market functions and the sales & trading functions, cross-selling, and strengthening distribution.
Strengthen APAC business and platform resilience			•Construct resilient platforms in Asia by strengthening collaboration with subsidiary and partner banks and expanding initiatives on “cultivate Asia x digital” aimed at seizing opportunities arising from Asia’s expanding financial needs through investment in digital financial business.
Contribute to making Japan a leading asset management center			•Assist customers in building more prosperous lives by promoting investment and supporting asset formation throughout the investment chain, contributing to making Japan a leading asset management center.
Support value chain in green transformation			•Promote green transformation, or GX, investment among customers by proposing solutions to customers’ issues that go beyond financing, such as co-creation of GX projects and support for transitions.
Challenge to build a new business portfolio			•Cultivate a business portfolio characterized by both high growth and high profitability through the development of new business areas and innovative business models incorporating customer and societal issues and advances in new technologies.

B.Drive Social & Environmental Progress


	Priority issues	Main initiatives
Sustainable society	Achievement of carbon neutral society	Accelerating engagement and support for energy transition
	Natural capital and biodiversity restoration	Providing solutions for reducing dependency and impact on nature
	Promoting of circular economy	Supporting technology and investment for transition to circular economy
Vibrant society	Industry development and innovation support	Providing funding for growth and expand scope of asset management
	Response to aging population and low birthrate	Supporting asset and business succession, promoting investment and asset building
	Increasing access to financial services	Providing services to linked to everyday needs and contributing to financial inclusion
	Management focusing on human capital	Creating a workplace focused on holistic well-being where employees are empowered to thrive
Resilient society	Respect for human rights	Strengthening human rights due diligence throughout supply chain
	Ensuring secure and safe services	Strengthening cybersecurity measures and operational resilience
	Demonstration of robust corporate governance	Business operations that make every effort to serve customers’ best interests

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C.Accelerate Transformation & Innovation


Key strategies			Key initiatives
Accelerate transformation to be more agile			•Facilitate transformation to instill a corporate culture in which people think, decide, and act independently, and do so swiftly.
Expand human capital investment			•Accelerate synchronization of human capital strategies with business strategies, with each employee working actively and vigorously with a high degree of professionalism, to become a global financial group that contributes to customers and society.
Increase system development capacity			•Strive to increase system development capacity in preparation for the planned increase in system investment, and aim to increase the amount and ratio of investment in strategic projects.
Enhance AI/data infrastructure			•Promote data utilization by enhancing AI promotion functions and business intelligence. •Enhance technological research capacity through the use of new technologies such as generative AI and improved intelligence.

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MUFG’s Approach to Sustainability

We believe the following sustainability-related risks and opportunities as matters that could reasonably be expected to affect the prospects of the MUFG Group:

•climate-related risks and opportunities;

•human capital-related opportunities;

•cybersecurity-related risks; and

•business ethics (compliance)-related risks.

Our approach to sustainability is an integrated one through which we seek to incorporate into our business strategy our efforts to contribute to social and environmental progress in compliance with all applicable laws and to the extent we deem appropriate. We seek to address sustainability-related issues by creating business opportunities while carefully managing the associated risks.

We prepare certain sustainability-related disclosures, including the disclosure below, with reference to the sustainability-related disclosure standards developed by the Sustainability Standards Board of Japan, or SSBJ, which, according to the SSBJ, are intended to align with the sustainability disclosure standards developed by the International Sustainability Standards Board.

For information regarding our cybersecurity-related governance and risk management, see “Item 16K. Cybersecurity.” For information regarding our business ethics (compliance)-related governance and risk management, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Compliance,” “Item 16B. Code of Ethics” and “Item 16J. Insider Trading Policies.”

For information on our overall governance framework, see “Item 6. Directors, Senior Management and Employees.” For information on our overall risk management framework, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk.”

Governance

(1) Climate

Climate-related matters are primarily managed by the Executive Committee with various management sub-committees under the oversight of the Board of Directors. The Sustainability Committee, which is a sub-committee of the Executive Committee and is chaired by the Chief Sustainability Officer, regularly deliberates and determines policies for addressing climate-related matters, including climate-related risks and opportunities, and monitors our progress on related initiatives. The Sustainability Committee reports to the Executive Committee and, as necessary, also to the Board of Directors.

A global group-wide working-level project team has been established to strategize and monitor implementation of plans and measures designed to manage risks and achieve the targets and goals for climate-related initiatives determined by the Sustainability Committee through internal working groups, each responsible for a specialized area of focus.

(2) Human Capital

Basic policies and key strategies related to human resources are discussed at, and shared as appropriate between, the Human Resources Management Meeting, a sub-group of the Executive Committee in which the Group CEO, the Group Chief Human Resources Officer, and other key management members participate, and the Sustainability Committee under the oversight of the Board of Directors. Each MUFG subsidiary considers specific personnel measures and initiatives under the oversight of the director in charge of human resources at each subsidiary based on the basic policies and key strategies determined at the holding company level in a manner informed by the distinct needs and laws of different jurisdictions.

The progress on each strategy is reported to, and deliberated and evaluated by, the Human Resources Management Meeting, the Sustainability Committee, and the Executive Committee, and shared with each other and with the Board of Directors as appropriate.

Risks & Opportunities

(1) Climate

We have identified the four categories of risk in the table below as climate-related risks that could reasonably be expected to affect the MUFG Group’s prospects.

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Risk Type	Risk Category	Description
Transition risk	Credit risk	A negative effect on our corporate customers' business activities and financial positions due to their inability to deal with government policies, regulatory requirements, customer requests, or evolving trends in technological developments.
Transition risk	Operational (legal and regulatory, etc.) risk	Risk of our failing to comply with climate-related regulations related to sustainable finance, sustainability disclosures and other matters, and being subject to administrative actions, including monetary penalties, litigation and other consequences.
Transition risk	Franchise risk	Deterioration of our franchise value resulting from external stakeholders assessing our carbon neutrality plans and initiatives as inappropriate or insufficient. Deterioration of our franchise value, and adverse effects on our human capital management, resulting from our relationships with business partners whose environmental considerations are deemed insufficient or from delays in our own transition.
Physical risk	Credit risk	Direct damage to assets held by our corporate customers due to extreme weather and negative spillover effects on their business activities and financial position through indirect impacts on their supply chains.

We have also identified the following opportunity as a climate-related opportunity that could reasonably be expected to affect the MUFG Group’s prospects.


Opportunity Type			Description
Climate-related business, including finance			Enhancing our understanding of new needs and issues of customers through engagement to support their decarbonization-related activities, and increasing revenue through the provision of solutions, including finance.

Our sustainable finance currently consists of the provision of financing, including loans, equity investments in funds, arrangements of project finance and syndicated loans, underwriting of equities and bonds, and financial advisory service, with reference to relevant external standards, such as the Green Loan Principles, the Green Bond Principles and the Social Bond Principles, to businesses that are considered to contribute to the adaptation to and moderation of adverse climate-related developments, as well as fundamental service businesses, including, but not limited to, those involved in basic infrastructure and essential public services.

(2) Human Capital

With respect to human capital-related opportunities, we view the following four priority considerations in our human capital management as "opportunities" that lead to enhancement of our corporate value: (1) pursuit of professionalism (i.e., securing the necessary quantity and quality of human resources), (2) improvement of engagement (i.e., job satisfaction), (3) building an inclusive culture, and (4) health management (i.e., maintenance and improvement of employees' physical and mental health). Through initiatives to address these considerations, we seek to realize the well-being of employees and strengthen the two pillars of our human capital management, namely, "strengthening business competitiveness" and "fostering a culture of 'challenge and speed.'" Failure to achieve the goals set out for such initiatives may, however, lead to difficulty or inability to enhance our corporate value as we intend. Our human capital management framework may not be sufficient to enable necessary human resources to be recruited, developed, assigned and retained as, when and where appropriate, which, in turn, may adversely affect management’s ability to realize growth and other strategies.

(a) Human Resource Development

We have formulated MUFG Human Resources Principles as our basic approach to realizing human-capital management based on MUFG Way. Our basic philosophy regarding human resource development is “to provide educational opportunities where each employee can enhance his or her insight and ethical standards as well as his or her knowledge and expertise, and to support the self-motivated career development of employees while at the same time developing diverse professional human resources that can embody MUFG Way.” In order to provide value that exceeds the expectations of society and customers, we intend to accelerate our effort to further synchronize business strategies with human capital management and promote the enhancement of skills and expertise of each employee.

(b) Workplace Environment Improvement

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In order to realize MUFG Way, we are promoting “human capital-oriented management” as a priority issue in our sustainability management. As one of the largest and most diversified global financial groups, we aim to develop a broad talent pool and provide a work environment in which employees can perform at their best. We also seek to help our employees demonstrate their full potential through implementation of measures designed to promote mental and physical health and inclusion. At the same time, we seek to provide a work environment in which employees worldwide can grow and thrive as professionals. In this way, we endeavor to assist our employees in realizing and sustaining their well-being in the medium- and long-term.

We have established a personnel system designed to attract and retain necessary human resources and maximize the abilities of our employees. At the same time, we aim to provide compensation that is competitive compared to other companies. Our personnel system is also designed to ensure compliance with laws and regulations in each country and region in which we operate through, for example, regular monitoring and measures to improve working hours. We provide various employee benefits, including asset-building savings schemes, corporate pensions, and stock ownership associations to help our employees with their asset building and financial wellness.

Risk Management

(1) Climate

In order to strengthen our response to risks arising from climate-related developments, climate-related risk management is currently being integrated into our overall risk management framework with an aim to better enable identification, measurement and reduction of climate-related risks and their potential portfolio, business and financial impact from a comprehensive group-wide perspective. Climate-related risks are reported to, and evaluated and deliberated by, the Risk Management Committee, which is a sub-committee of the Executive Committee and is chaired by the Chief Executive Officer. Climate-related risk evaluation and deliberation by the Risk Management Committee are exchanged, as appropriate, with other relevant committees, including the Sustainability Committee. The Risk Committee, which is a committee of the Board of Directors and is chaired by an independent outside director, also receives reports from these committees and evaluates and deliberates on material climate-related matters. Evaluations and deliberations by these committees are shared with the Board of Directors as appropriate. Our risk management framework is intended to address transition risks as well as physical risks. We employ various risk assessment tools, including, for example, scenario analysis with reference to scenario information made available by intergovernmental or industry groups, and make continuous efforts to improve our risk assessment framework.

For a discussion of our climate-related risks, see “Item 3.D. Key Information—Risk Factors—Risks Related to Our Business Environment—Climate-related risks could have a material adverse impact on us and our clients.”

Credit risk management relating to sustainable finance is currently being integrated into our overall credit risk management framework, where the Credit Committee, which is a sub-committee of the Executive Committee and is chaired by the Chief Risk Officer, deliberates and determines policies for addressing credit risk-related matters and monitors the group-wide credit exposures and credit risk management, and the Credit and Investment Management Committee, which is another sub-committee of the Executive Committee and is chaired by the Chief Executive Officer, is tasked with managing the overall group-wide credit and equity investment portfolios.

(2) Human Capital

We manage human resource risk by defining it as one of the operational risks. Human resource risk includes, among other things, personnel retention risk and employee morale deterioration risk. These risks are reported to, and evaluated and deliberated by, the Risk Committee, the Risk Management Committee, and the Executive Committee, and shared with the Board of Directors as appropriate. Human resource risk evaluation and deliberation by these committees are exchanged, as appropriate, with other relevant committees, including the Sustainability Committee and the Human Resources Management Meeting.

Strategies & Goals

(1) Climate

In May 2021, we announced our intent to achieve net zero greenhouse gas, or GHG, emissions from our operations by the end of the fiscal year ending March 31, 2031 and net zero GHG emissions from our financed portfolio by the end of calendar year 2050. These goals demonstrate our support for the goals of the Paris Agreement on Climate Change, which has been endorsed by the government of Japan, and our recognition of climate-related risks and opportunities as a top strategic priority for the MUFG Group. We seek to contribute to achieving the Paris Agreement target, including through the realization of carbon neutrality by 2050, support a smooth transition to a decarbonized society through our business operations, and contribute to realizing a sustainable society through

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a virtuous cycle between the environment and the economy. In line with these targets and goals, we currently have in place various transition strategies.

(2) Human Capital

(a) Inclusion

We are working to create a workplace where our employees can make the most of their abilities. For example, recognizing that raising gender representation in managerial, i.e., line manager (jicho or kacho) or higher, positions in Japan is an urgent issue, in line with relevant policies and initiatives of the government and industry groups in Japan, we are working on the development and promotion of female representation in Japan in the medium and long term. For our three major subsidiaries, MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation, and Mitsubishi UFJ Morgan Stanley Securities Co. Ltd., on a combined basis, we achieved our target as of March 31, 2026 with a result of 26.6% female representation in such positions in Japan, including personnel decisions and transfer instructions finalized on or before March 31, 2026 but implemented thereafter. Under our Medium-term Business Plan, we aim to attain 27.0% for female representation in such positions in Japan on the same basis by the end of the fiscal year ending March 31, 2027.

(b) Employee Well Being

Recognizing that enhancing engagement is essential for sustained increases in corporate value, we take annual employee surveys as a means to gauge employee engagement (engagement score) and utilize the results to consider and implement various measures. Under our Medium-term Business Plan, we have set a target engagement score on a group-wide basis and intend to make a concerted effort to improve engagement.

Uncertainties, Risks & Other Important Notes

Our ability to achieve any one or more of the foregoing targets and goals is subject to various uncertainties and risks, which may be beyond our control. If any such uncertainty or risk materializes, we may be unable to achieve our targets and goals. See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Business Environment—Climate-related risks could have a material adverse impact on us and our clients.” and “Item 3.D. Key Information—Risk Factors—Operational Risk—Damage to our reputation could harm our businesses.” Additionally, certain of our disclosures herein are informed by various stakeholder expectations, including third-party sustainability frameworks and are therefore not necessarily material for purposes of our disclosures under federal U.S. securities laws or otherwise.

Business Groups

Our business groups are organized as follows with an aim to further integrate the expertise and capabilities of our subsidiaries to respond to the needs of our customers more effectively and efficiently.

Retail & Digital Business Group

The Retail & Digital Business Group focuses on serving retail customers, excluding wealth management customers, in Japan. This business group was formed on April 1, 2024 through the strategic reorganization of the Digital Service Business Group and the Retail & Commercial Banking Business Group. This reorganization was a response to the evolving and diversifying retail customer needs, including the demand for asset management solutions, driven by shifts in the economic and financial landscape. This business group seeks to enable a wider range of retail customers to flexibly utilize MUFG’s diverse service channels.

One of the strategic missions of this business group is to expand its touchpoints by optimally mixing the three service channels under the concept of “Real (Face-to-Face) × Remote × Digital” and deliver customer experience that makes its customers think “I’m glad I chose MUFG.” By maximizing customer life-time value (LTV), including through the release of Emut, a new service brand, in June 2025, we aim to further strengthen our retail business.

Commercial Banking & Wealth Management Business Group

The Commercial Banking & Wealth Management Business Group provides a wide range of financial products and services, including lending, fund settlement, M&A, inheritance, real estate, asset management, and business and asset succession solutions, to meet the diverse needs of not only large enterprises managed by the branches in Japan, but also small and mid-sized enterprises in Japan as well as domestic retail clients in the wealth management segment.

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Taking into account recent developments in the market and social environments in Japan, such as heightened geopolitical risks, including the situation in the Middle East, the recent gradual transition to a world with interest rates, the declining birthrate and the aging population, advances in new technology such as generative and agentic AI, as well as the Japanese government's policies to encourage investments in startups and promote asset management, we aim to strengthen our business succession and asset succession solutions in the overlapping areas between the corporate commercial banking business and the wealth management business, in addition to the products and services tailored to each of the corporate segment and the wealth management segment.

Japanese Corporate & Investment Banking Business Group

The Japanese Corporate & Investment Banking Business Group provides a comprehensive suite of services to large Japanese corporate customers pursuing global expansion and corporate value enhancement. Our offerings include lending, fund settlement, and foreign exchange services, as well as integrated investment banking and real estate-related solutions, leveraging the expertise of each group entity.

We seek to enhance profitability through strategic pricing to achieve appropriate returns, while further strengthening balance sheet management in response to changes in the interest rate environment and maintaining financial soundness. We also continue to work on the plan to reduce equity holdings as part of our portfolio risk management.

Our customers are expanding their business domains to address social issues. Through ongoing engagement, we offer to partner with them to develop new industries and business opportunities. In doing so, we aim to originate and provide financing, thereby contributing to the resolution of social issues.

Asset Management & Investor Services Business Group

The Asset Management & Investor Services Business Group covers the asset management and investor services businesses of Mitsubishi UFJ Trust and Banking, MUFG Bank and Mitsubishi UFJ Asset Management. The business group offers a full range of asset management and investor services for corporations and pension funds, including pension fund management and administration, advice on pension structures, and payments to beneficiaries, and also offers investment trusts for retail customers.

We aim to expand our asset management and investor services business by enhancing the quality of our products and services, effectively utilizing the broad customer base of the MUFG Group and improving our operational efficiency through IT technology.

Global Corporate & Investment Banking Business Group

The Global Corporate & Investment Banking Business Group covers the corporate, investment and transaction banking businesses of MUFG Bank and its subsidiaries, including the overseas securities companies that were previously subsidiaries of Mitsubishi UFJ Securities Holdings. Through a global network of offices and branches, we provide non-Japanese large corporate and financial institution customers with a comprehensive set of solutions that meet their increasingly diverse and sophisticated financing needs. On October 1, 2025, MUFG Bank acquired all of the shares in MUFG Securities EMEA plc, MUFG Securities Asia Limited, and MUFG Securities (Canada), Ltd. previously owned by Mitsubishi UFJ Securities Holdings through a series of internal reorganization transactions, making them MUFG Bank’s wholly owned subsidiaries.

Through the integrated business management structure between the Global Corporate & Investment Banking Business Group and the Global Markets Business Group, we aim to offer a wide range of financial services to meet the diverse needs of both corporate and institutional investor customers.

The expansion of the global corporate and investment banking and global markets businesses has been an important pillar of the MUFG Group’s growth strategy. We continue to work to strengthen the strategic alignment and collaboration among our group companies and across global geographies in order to best deploy our comprehensive expertise to provide our customers with value-added solutions and services.

Corporate Banking

Through our global network of offices and branches, we provide a full range of corporate banking solutions, such as project finance, export credit agency finance, and financing through asset-backed commercial paper. Our primary customers include large corporations, financial institutions, sovereign and multinational organizations, and institutional investors that are headquartered outside of Japan.

Investment Banking

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We provide investment banking services such as debt and equity issuance and M&A-related services to help our customers develop their financial strategies and realize their business goals. In order to meet customers’ various financing needs, we have established a customer-oriented coverage model through which our product experts coordinate with one another to offer innovative financing services globally. We have further integrated the management of the operations of our commercial banking and securities subsidiaries to enhance collaboration. We are one of the world’s top providers of project finance, one of the core businesses of the Global Corporate & Investment Banking Business Group. We provide sophisticated professional services in arranging limited-recourse finance and secured finance, and offering financial advice in various sectors, including natural resources, power, and infrastructure, backed by our experience, expertise, knowledge, and global network.

Transaction Banking

We provide commercial banking products and services for large corporations and financial institutions in managing and processing domestic and cross-border payments, mitigating risks in international trade, and providing working capital optimization. We provide customers with support for their domestic, regional and global trade finance and cash management programs through our extensive global network.

Global Commercial Banking Business Group

The Global Commercial Banking Business Group provides a comprehensive array of financial products and services such as loans, deposits, fund transfers, investments and asset management services for local retail customers, small and medium-sized enterprises, and corporate customers across the Asia-Pacific region through our major local commercial banking subsidiaries and affiliates outside of Japan referred to as “Partner Banks.” Our Partner Banks include Krungsri in Thailand, Bank Danamon in Indonesia, VietinBank in Vietnam and Security Bank in the Philippines. Additionally, in India, which is another market of strategic importance to MUFG, we have been strengthening our presence through strategic investments, most recently in Shriram Finance Limited in April 2026, as further described below.

The network among the Partner Banks, together with our strategic presence in India, covers a vast market, spanning five countries with a total population of approximately two billion. The market is expected to expand further in the medium to long term as the GDP growth rates are expected to remain relatively high in these countries with corresponding financial needs. We believe that our network, which combines the global reach of the MUFG Group companies with strong regional presence of the Partner Banks and other overseas affiliates of MUFG, provides us with unique competitive advantages. We aim to further strengthen the network by promoting business collaboration and enhancing governance. In addition, through continuous strategic investments in business areas such as digital financial services, we seek to contribute to financial inclusion in Asia and capture the business opportunities arising from the economic growth of the region.

Bank of Ayudhya Public Company Limited (Krungsri)

Krungsri is a strategic subsidiary of MUFG Bank in Thailand. Krungsri provides a comprehensive range of banking, consumer finance, investment, asset management, and other financial products and services to retail consumers, small and medium-sized enterprises, and large corporations mainly in Thailand through 556 branches (consisting of 515 banking branches, 40 automobile finance business branches and one overseas branch) and other service outlets nationwide. MUFG owns a 76.88% ownership interest in Krungsri through MUFG Bank as of March 31, 2026. By combining Krungsri’s local franchise with competitive presence in the retail and small and medium-sized enterprise banking markets in Thailand with MUFG Bank’s global financial expertise, we seek to offer a wider range of high-value financial products and services to a more diverse and larger customer base.

Krungsri’s consolidated subsidiaries include the largest credit card issuer in Thailand, along with sales finance and personal loan accounts in its portfolio, a major auto finance provider, a fast-growing asset management company and a leading microfinance service provider in Thailand. In addition, in August 2025, Tidlor Holdings Public Company Limited, a leading financial inclusion service provider in Thailand, became a consolidated subsidiary of Krungsri when Krungsri became a 46.51% shareholder with certain shareholder rights. This acquisition aligns with Krungsri’s growth strategy to expand its reach among retail and SME customers and provide an improved customer experience.

PT Bank Danamon Indonesia, Tbk. (Bank Danamon)

Bank Danamon is a strategic subsidiary of MUFG Bank in Indonesia. Bank Danamon provides a comprehensive range of banking and other financial products and services to retail consumers, small and medium-sized enterprises, and large corporations in Indonesia. It operates an extensive distribution network spread out from Aceh to Papua, with more than 1238 branches and service outlets.

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Bank Danamon also provides financing for automotive and consumer goods through PT Adira Dinamika Multi Finance Tbk (ADMF), a subsidiary of Bank Danamon. In March 2024, MUFG acquired an 80.6% ownership interest in PT Mandala Multifinance Tbk (MFIN), a multi-finance company in Indonesia, and subsequently increased its ownership interest to 99.3% in August 2024. Following these acquisitions, MUFG merged MFIN into ADMF in October 2025 to deepen the synergies of the acquisitions and enhance innovation and competitiveness by expanding the scale of business, thereby strengthening ADMF’s competitive position and presence in the local market.

MUFG made an initial investment in December 2017 and owns a 92.47% ownership interest in Bank Danamon through MUFG Bank as of March 31, 2026. This investment in Bank Danamon represents a milestone for our growth strategy in Indonesia and Southeast Asia. We aim to offer a unique and unparalleled retail and small and medium-sized enterprise banking business model based on the established local networks of our Partner Banks and MUFG’s global network to provide holistic financial services to a wider range of customers.

In May 2026, Bank Danamon and MUFG Bank agreed to enter into a memorandum of understanding to explore a potential integration of Bank Danamon and the Jakarta branch of MUFG Bank. The integration, if successfully implemented, is expected to combine the strengths, expertise, and network of both entities to offer financial solutions to a wider spectrum of customers and contribute to the growth of Indonesia’s financial services industry and the Indonesian economy. At this stage, Bank Danamon and MUFG Bank have agreed to commence preparatory work with a view toward entering into a binding agreement at a later date. The integration is expected to take effect within calendar year 2027, while the integration remains subject to further work by Bank Danamon and MUFG Bank as well as approvals from relevant regulatory authorities and Danamon’s shareholders.

Other Activities in Southeast Asia

In addition to Krungsri and Bank Danamon, we have strategic business and capital alliances with other banks, including VietinBank in Vietnam and Security Bank in the Philippines, as our Partner Banks.

VietinBank provides a wide range of financial services to consumers, small businesses, middle-market and large companies through its branch network predominantly in Vietnam. We own a 19.73% equity interest in VietinBank.

Security Bank provides a wide range of financial services to consumers, small businesses, middle-market and large companies through its branch network in the Philippines. We own a 20% equity interest in Security Bank.

We have been strategically expanding our operations in Southeast Asia with an effort to further develop our businesses abroad in cooperation with our Partner Banks. Also, as part of our strategic investments to capture growth opportunities in the digital finance area, we have completed multiple investments in fintech companies, including Silvrr Technology Co., Ltd. (known as “Akulaku”) in Indonesia, Ascend Money Company Limited in Thailand, and Globe Fintech Innovations, Inc. in the Philippines, with an aim to not only contribute to the economic growth of Asia, but also to create a world where more people can access financial services.

Strategic Investment in India — Shriram Finance Limited

In April 2026, we acquired 20% of the equity shares, on a fully diluted basis, in Shriram Finance Limited, a non-banking financial company (NBFC) in India. Shriram Finance primarily provides loans for the purchase of and working capital for used commercial and passenger vehicles to micro, small and medium enterprises (MSMEs) and individual business owners in the transportation industry. This investment follows our investment in DMI Finance Private Limited, a non-banking provider of digital financial services in India, in April 2023. We recognize India, which is expected to economically grow further in the future and become the world's third largest GDP by 2030, as another strategically important market alongside Southeast Asia. The investment in Shriram Finance represents an important step that underscores our long-term commitment to the Indian market and is expected to contribute to India’s sustainable economic growth and the advancement of financial inclusion. See “Item 5. Operating and Financial Review and Prospects—Recent Developments—Investment in Shriram Finance Ltd. through a Preferential Allotment of Shares.” We consider Asian markets outside Japan as our second major market and, through strategic acquisitions and investments across these markets, we aim to further strengthen and enhance our business platform and will continue striving to contribute to the economic growth of the region.

See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Strategies and Our Major Investees—Our strategy to expand the range of our financial products and services and the geographic scope of our business globally may fail if we are unable to anticipate or manage new or expanded risks that entail such global expansion.”

Global Markets Business Group

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The Global Markets Business Group covers the customer business and the treasury operations of MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Securities Holdings. The customer business includes sales and trading in fixed income instruments, currencies and equities as well as other investment products, and origination and distribution of financial products. The treasury operations include asset and liability management as well as global investments for the MUFG Group. We also make and manage long-term diversified investments as a sustainable revenue source.

Customer Business

Sales and Trading in Fixed Income Instruments, Currencies and Equities. We provide financing, hedging, and investment solutions to our retail, corporate, institutional, and governmental customers through sales and trading in financial market products such as fixed income instruments, currencies, and equities.

Investment Products for Non-Institutional Customers in Japan. We provide investment products such as mutual funds, and structured bonds, notes and deposits to non-institutional customers in Japan. We offer solutions using these investment products to help customers better manage their assets and liabilities. This business is conducted through the integrated operations management structure among the Global Markets Business Group, the Asset Management & Investor Service Business Group, the Commercial Banking & Wealth Management Business Group, and the Japanese Corporate & Investment Banking Business Group.

Origination and Distribution. We provide financing solutions to institutional customers through origination and distribution of financial products such as syndicated loans and securities issuances. This business is conducted through the integrated operations management structure between the Global Markets Business Group and the Global Corporate & Investment Banking Business Group.

Treasury Operations

Asset and Liability Management. We seek to manage interest rate and liquidity risks residing in our balance sheets through, among other things, transactions designed to manage the profit and loss impact attributable to market movements based on our balance sheet analyses and forecasts. Such transactions include investments in high quality liquid securities such as Japanese government bonds and U.S. Treasury bonds and trading in other financial products such as interest rate swaps and cross currency swaps.

Global Investment. Through our treasury operations, we also seek to enhance our profitability by diversifying our portfolio and strategically investing in financial products including corporate bonds and funds.

Global Strategic Alliance with Morgan Stanley

As of March 31, 2026, we held approximately 377 million shares of Morgan Stanley’s common stock representing approximately 23.9% of the voting rights in Morgan Stanley and Series C Preferred Stock with a face value of approximately $521.4 million and 10% dividend. As of the same date, we had two representatives appointed to Morgan Stanley’s board of directors. We adopted the equity method of accounting for our investment in Morgan Stanley beginning with the fiscal year ended March 31, 2012.

In conjunction with Morgan Stanley, we formed two securities joint venture companies in May 2010 to integrate our respective Japanese securities companies. We converted the wholesale and retail securities businesses conducted in Japan by Mitsubishi UFJ Securities into Mitsubishi UFJ Morgan Stanley Securities. Morgan Stanley contributed the investment banking operations conducted in Japan by its former wholly-owned subsidiary, Morgan Stanley Japan, to Mitsubishi UFJ Morgan Stanley Securities, and converted the sales and trading and capital markets businesses conducted in Japan by Morgan Stanley Japan into an entity called Morgan Stanley MUFG Securities, Co., Ltd. We hold a 60% economic interest in Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities, and Morgan Stanley holds a 40% economic interest in Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities. We hold a 60% voting interest and Morgan Stanley holds a 40% voting interest in Mitsubishi UFJ Morgan Stanley Securities, and we hold a 49% voting interest and Morgan Stanley holds a 51% voting interest in Morgan Stanley MUFG Securities. Morgan Stanley’s and our economic and voting interests in the securities joint venture companies are held through intermediate holding companies. We have retained control of Mitsubishi UFJ Morgan Stanley Securities and we account for our interest in Morgan Stanley MUFG Securities under the equity method due to our significant influence over Morgan Stanley MUFG Securities. The board of directors of Mitsubishi UFJ Morgan Stanley Securities has fifteen members, nine of whom are designated by us and six of whom are designated by Morgan Stanley. The board of directors of Morgan Stanley MUFG Securities has ten members, six of whom are designated by Morgan Stanley and four of whom are designated by us. The CEO of Mitsubishi UFJ Morgan Stanley Securities is designated by us and the CEO of Morgan Stanley MUFG Securities is designated by Morgan Stanley.

We have also expanded the scope of our global strategic alliance with Morgan Stanley into other geographies and businesses, including (1) a loan marketing joint venture that provides clients in the United States with access to the world-class lending and capital markets services from both companies, (2) business referral arrangements in Asia, Europe, the Middle East and Africa, covering capital markets, loans, fixed income sales and other businesses, (3) global commodities referral arrangements whereby MUFG Bank

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and its affiliates refer clients in need of commodities-related hedging solutions to certain affiliates of Morgan Stanley, and (4) an employee secondment program to share best practices and expertise in a wide range of business areas.

In July 2023, we jointly announced with Morgan Stanley the launch of “Alliance 2.0”, an enhanced Global Strategic Alliance for further collaboration between both companies for the next decade and beyond. As part of this alliance, we and Morgan Stanley began to collaborate in the Japanese stock market research and equity businesses for institutional clients in January 2024 and to collaborate in foreign currency exchange trading in April 2024.

See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Strategies and Our Major Investees—If our strategic alliance with Morgan Stanley fails, we could suffer financial or reputational loss.”

Competition

We face strong competition in all of our principal areas of operation. The structural reforms in financial industry regulations and recent developments in financial markets have resulted in some significant changes in the Japanese financial system and prompted banks to merge or reorganize their operations. In addition, development of new technologies such as artificial intelligence and blockchain has also allowed non-financial institutions to enter the financial services industry with alternative services, thus changing the nature of competition from other financial institutions as well as from other types of businesses. See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Strategies and Our Major Investees—Our business may be adversely affected by competitive pressures, which have partly increased due to regulatory changes and recent market changes in the financial industry domestically and globally.”

Japan

Our major competitors in Japan include:

•Japan’s other major banking groups: Mizuho Financial Group and Sumitomo Mitsui Financial Group;

•Government financial institutions: Japan Finance Corporation, Japan Post Bank, Development Bank of Japan and Japan Bank for International Cooperation;

•Other commercial banking institutions: Resona Bank, SBI Shinsei Bank, regional banks, and credit associations (shinkin banks);

•Securities companies and investment banks: Nomura group and Daiwa group;

•Other internet-based banking and securities institutions: Rakuten group, SBI group, NTT group and PayPay Corporation; and

•Asset management companies.

Foreign

In foreign markets, we face competition from local and global commercial banks, money center banks, regional banks, thrift institutions, asset management companies, investment advisory companies, credit unions, fintech companies, non-bank lending and credit institutions and other similar financial institutions.

The Japanese Financial System

Japanese financial institutions may be categorized into three types:

•the central bank, namely the Bank of Japan;

•private banking institutions; and

•government financial institutions.

The Bank of Japan

The Bank of Japan’s role is to maintain price stability and the stability of the financial system to ensure a solid foundation for sound economic development.

Private Banking Institutions

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Private banking institutions in Japan are commonly classified into two categories (the following numbers are based on information published by the FSA available as of May 26, 2026):

•ordinary banks (118 ordinary banks and 57 foreign commercial banks with ordinary banking operations); and

•trust banks (13 trust banks, including two Japanese subsidiaries of foreign financial institutions).

Ordinary banks in turn are classified as city banks, of which there are four, including MUFG Bank, and regional banks, of which there are 95, and other banks, of which there are 19. In general, the operations of ordinary banks correspond to commercial banking operations in the United States. City banks and regional banks are distinguished based on head office location as well as the size and scope of their operations.

The city banks are generally considered to constitute the largest and most influential group of banks in Japan. Generally, these banks are based in large cities, such as Tokyo and Osaka, and operate nationally through networks of branch offices. The city banks provide a wide variety of banking and other financial products and services to large corporate customers, including the major industrial companies in Japan, as well as small and medium-sized companies and retail customers.

With some exceptions, the regional banks tend to be much smaller in terms of total assets than the city banks. Historically, each of the regional banks has been based in one of the Japanese prefectures and has extended its operations into neighboring prefectures. Their customers are mostly regional enterprises and local public utilities. Trust banks, including Mitsubishi UFJ Trust and Banking, provide various trust services relating to money trusts, pension trusts and investment trusts and offer other services relating to real estate, stock transfer agency and testamentary services, as well as banking services.

Government Financial Institutions

There are a number of government financial institutions in Japan, which are corporations wholly owned or majority-owned by the government and operate under the government’s supervision. Their funds are provided mainly from government sources. Certain types of operations undertaken by these institutions have been or are planned to be assumed by, or integrated with the operations of, private corporations through privatizations and other measures.

Among them are the following:

•The Development Bank of Japan, which was established for the purpose of contributing to the economic development of Japan by extending long-term loans, mainly to primary and secondary sector industries, and which was reorganized as a joint stock company in October 2008 as part of its ongoing privatization process, with the government being required by law to continue to hold 50% or more of the shares in the bank until the completion of certain specified investment operations, which the bank is required to endeavor to achieve by March 2031, and more than one-third for an unspecified period thereafter;

•Japan Finance Corporation, which was formed in October 2008, through the merger of the international financial operations of the former Japan Bank for International Cooperation, National Life Finance Corporation, Agriculture, Forestry and Fisheries Finance Corporation, and Japan Finance Corporation for Small and Medium Enterprise, for the primary purposes of supplementing and encouraging the private financing of exports, imports, overseas investments and overseas economic cooperation, and supplementing private financing to the general public, small and medium-sized enterprises and those engaged in agriculture, forestry and fishery. In April 2012, Japan Finance Corporation spun off its international operations to create Japan Bank for International Cooperation as a separate government-owned entity;

•Japan Housing Finance Agency, which was originally established in June 1950 as the Government Housing Loan Corporation for the purpose of providing housing loans to the general public, and which was reorganized as an incorporated administrative agency and started to specialize in securitization of housing loans in April 2007; and

•The Japan Post Group companies, a group of joint stock companies including Japan Post Bank, which were formed in October 2007 as part of the Japanese government’s privatization plan for the former Japan Post, a government-run public services corporation, which had been the Postal Service Agency until March 2003. In November 2015, approximately 11% of the outstanding shares of each of Japan Post Bank, Japan Post Insurance and Japan Post Holdings were sold to the public, and these companies are currently listed on the Tokyo Stock Exchange. As of March 31, 2026, Japan Post Holdings held 49.90% of the outstanding shares of Japan Post Bank (excluding the treasury shares owned by Japan Post Bank). In June 2025, Japan Post Holdings reduced its shareholding ratio to less than 50% by contributing a part of its shareholding to a share disposal trust. Having notified the Japanese authority of the contribution, Japan Post Bank is no longer required to obtain authorization from the Japanese authority before entering into new businesses. As of March 31, 2026, Japan Post Holdings held 49.75% of the outstanding shares of Japan Post Insurance (excluding the treasury shares owned by Japan Post Insurance).

Supervision and Regulation

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Japan

Supervision. The FSA is responsible for supervising and overseeing financial institutions, making policy for the overall Japanese financial system and conducting insolvency proceedings with respect to financial institutions. The Bank of Japan, as the central bank for financial institutions, also has supervisory authority over banks in Japan, based primarily on its contractual agreements and transactions with the banks.

The Banking Act. Among the various laws that regulate financial institutions, the Banking Act and its subordinated orders and ordinances are regarded as the fundamental law for ordinary banks and other private financial institutions. The Banking Act addresses capital adequacy, inspections and reporting of banks and bank holding companies, as well as the scope of business activities, disclosure, accounting, limitation on granting credit and standards for arm’s length transactions for them. Bank holding companies, banks and other financial institutions are required to establish an appropriate system to cope with conflicts of interest that may arise from their business operations.

The Banking Act and various other financial regulation related laws have recently been amended, including certain deregulations on restrictions for shareholdings by banks. For example, although a bank is generally prohibited from holding more than 5% of the outstanding shares of another domestic company (other than certain financial businesses) under the Banking Act, an amendment to the Banking Act which took effect in April 2017 allows banks to acquire and hold more than 5% of the voting rights in certain financial technology companies if approved by the FSA. An additional amendment to the Banking Act which took effect in June 2018 introduced a framework for affiliation and cooperation between financial institutions and financial technology companies while adding measures designed to ensure customer protection. A further amendment to the Banking Act which took effect in May 2020 allows banks to engage in certain information provision services relating to customer and other information. In addition, an amendment to the Banking Act which took effect in November 2021 allows banks to engage in certain services contributory to the construction of a sustainable society such as regional revitalization or productivity enhancement and allows banks, with the FSA’s approval, to acquire and hold more than 5% of the voting rights in companies which engage in certain services contributory to the construction of a sustainable society such as regional revitalization or productivity enhancement.

Bank holding company regulations. A bank holding company is prohibited from carrying out any business other than the management of its subsidiaries and other incidental businesses. A bank holding company may have any of the following as a subsidiary: a bank, a securities company, an insurance company, a foreign subsidiary that is engaged in the banking, securities or insurance business and any company that is engaged in a finance-related business, such as a credit card company, a leasing company, investment advisory company, or financial technology company as permitted by the April 1, 2017 amendments to the Banking Act. Certain companies that are designated by a ministerial ordinance as those that cultivate new business fields may also become the subsidiaries of a bank holding company.

In addition, under the April 1, 2017 amendments to the Banking Act, a bank holding company (i) is required to perform certain specified functions as a bank holding company to ensure effective management of its subsidiaries and (ii) is allowed to engage in certain specified common operations of its subsidiaries so as to improve the efficiency of the operations of its group companies.

Capital adequacy. The capital adequacy guidelines adopted by the FSA that are applicable to Japanese bank holding companies and banks with international operations closely follow the risk-weighted approach introduced by the Basel Committee on Banking Supervision of the Bank for International Settlements.

Basel II, as adopted by the FSA, has been applied to Japanese banks since March 31, 2007. Basel III, as adopted by the FSA, has been applied to Japanese banking institutions with international operations conducted through their foreign offices since March 31, 2013. Basel III is built on “three pillars”: (1) minimum capital requirements, (2) the self-regulation of financial institutions based on supervisory review process, and (3) market discipline through the disclosure of information.

The Group of Central Bank Governors and Heads of Supervision reached an agreement on the new global regulatory framework, which has been referred to as “Basel III,” in July and September 2010. In December 2010, the Basel Committee agreed on the details of the Basel III rules. The agreement on Basel III includes the following: (1) raising the quality of capital to ensure banks are able to better absorb losses both on a going concern basis and on a gone concern basis, (2) increasing the risk coverage of the capital framework, in particular for trading activities, securitizations, exposures to off-balance sheet vehicles and counterparty credit exposures arising from derivatives, (3) raising the level of minimum capital requirements, including an increase in the minimum common equity requirement from 2% to 4.5%, which was phased in between January 1, 2013 and the end of the calendar year 2014, and a capital conservation buffer of 2.5%, which was phased in between January 1, 2016 and the end of the calendar year 2018, bringing the total common equity requirement to 7%, (4) introducing an internationally harmonized leverage ratio to serve as a backstop to the risk-based capital measure and to contain the build-up of excessive leverage in the system, (5) raising standards for the supervisory review process (Pillar 2) and public disclosures (Pillar 3), together with additional guidance in the areas of valuation practices, stress testing, liquidity risk management, corporate governance and compensation, (6) introducing minimum global liquidity standards consisting of both a short term liquidity coverage ratio, or LCR, and a longer term structural net stable funding ratio, or NSFR, and (7) promoting the build-up of capital buffers that can be drawn down in periods of stress, including both a capital conservation buffer and a countercyclical buffer to protect the banking sector from periods of excess credit growth.

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Under Basel III, Common Equity Tier 1, Tier 1 and total capital ratios are used to assess capital adequacy, which ratios are determined by dividing applicable capital components by risk-weighted assets. Total capital is defined as the sum of Tier 1 and Tier 2 capital.

Under Basel III, Tier 1 capital is defined to include Common Equity Tier 1 and Additional Tier 1 capital. Common Equity Tier 1 capital is a new category of capital primarily consisting of:

•common stock,

•capital surplus,

•retained earnings, and

•accumulated other comprehensive income.

Regulatory adjustments including certain intangible fixed assets, such as goodwill, and defined benefit pension fund net assets (prepaid pension costs) will be deducted from Common Equity Tier 1 capital.

Additional Tier 1 capital generally consists of Basel III compliant preferred shares and perpetual subordinated obligations, net of regulatory adjustments.

Tier 2 capital generally consists of:

•Basel III compliant subordinated obligations,

•allowances for credit losses, and

•non-controlling interests in subsidiaries’ Tier 2 capital instruments.

In order to qualify as Tier 1 or Tier 2 capital under Basel III, applicable instruments such as preferred shares and subordinated debt must have a clause in their terms and conditions that requires them to be written off or forced to be converted into common stock upon the occurrence of certain trigger events.

Risk-weighted assets are the sum of risk-weighted assets compiled for credit risk purposes, quotient of dividing the amount equivalent to market risk by 8%, and quotient of dividing the amount equivalent to operational risk by 8%, and also include any amount to be added due to transitional measures as well as floor adjustments, if necessary. Risk-weighted assets include the capital charge of the credit valuation adjustment, or CVA, the credit risk related to asset value correlation multiplier for large financial institutions, the 250% risk-weighted threshold items not deducted from Common Equity Tier 1 capital, and certain Basel II capital deductions that were converted to risk-weighted assets under Basel III, such as securitizations and significant investments in commercial entities. Certain Basel III provisions were adopted by the FSA with transitional measures and became effective March 31, 2013.

The capital ratio standards applicable to us are as follows:

•a minimum total capital ratio of 8.0%,

•a minimum Tier 1 capital ratio of 6.0%, and

•a minimum Common Equity Tier 1 capital ratio of 4.5%.

These minimum capital ratios are applicable to MUFG on a consolidated basis and to MUFG Bank and Mitsubishi UFJ Trust and Banking on a consolidated as well as stand-alone basis.

The approval granted to us by the FSA to exclude the majority of our investment in Morgan Stanley from being subject to double gearing adjustments expired on March 30, 2023.

The Financial Stability Board identified us as a global systemically important bank, or G-SIB, in its most recent annual report published in November 2025, and is expected to update the list of G-SIB annually. In December 2015, the FSA also designated us as a G-SIB as well as a domestic systemically important bank generally referred to as a “D-SIB.”

Effective March 31, 2016, the FSA’s capital conservation buffer, countercyclical buffer and G-SIB surcharge requirements became applicable to Japanese banking institutions with international operations conducted through foreign offices, including us. The requirements as of March 31, 2026 consist of a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.18% in addition to the 4.5% minimum Common Equity Tier 1 capital ratio.

In December 2017, the Group of Central Bank Governors and Heads of Supervision released final Basel III reforms. The reforms are designed, among other things, to help reduce excessive variability in risk-weighted assets among banks and improve the

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comparability and transparency of banks’ risk-based capital ratios. The reforms endorsed by the Group of Central Bank Governors and Heads of Supervision include the following elements:

•a revised standardized approach for credit risk, which is designed to improve the robustness and risk sensitivity of the existing approach;

•revisions to the internal ratings-based approach for credit risk, where the use of the most advanced internally modelled approaches for low-default portfolios are limited;

•revisions to CVA framework, including the removal of the internally modelled approach and the introduction of a revised standardized approach;

•a revised standardized approach for operational risk, which replaces the previous standardized approaches and the advanced measurement approaches;

•revisions to the measurement of the leverage ratio and a leverage ratio buffer for G-SIBs, which takes the form of a Tier 1 capital buffer set at 50% of a G-SIB’s risk-weighted capital buffer; and

•an aggregate output floor, which is designed to ensure that banks’ risk-weighted assets generated by internal models are no lower than 72.5% of risk-weighted assets as calculated by the Basel III framework’s standardized approaches. Banks will also be required to disclose their risk-weighted assets based on these standardized approaches.

These reforms, as adopted by the FSA, became generally applicable to Japanese banking institutions with international operations conducted through foreign offices, including us, on March 31, 2024. Transitional measures, including revisions to the aggregate output floor, are being phased in from March 31, 2024, with the initial capital floor of 50%, and are scheduled to be fully implemented at 72.5% from March 31, 2029.

In January 2019, the Group of Central Bank Governors and Heads of Supervision approved the Basel Committee on Banking Supervision’s finalized market risk capital framework. The approved market risk framework includes the revision of the standardized approach and the internal model approach and the introduction of simplified standardized approach. The framework became generally applicable to Japanese banking institutions with international operations conducted through foreign offices, including us, on March 31, 2024.

For a discussion on our capital ratios, see “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Capital Adequacy.”

Leverage ratio. Japanese banks and bank holding companies with international operations, including us, are required to maintain a minimum leverage ratio and disclose their leverage ratios calculated in accordance with the methodology prescribed in the FSA guidelines that have been adopted to implement the relevant Basel III standard. The leverage ratio is designed for monitoring and preventing the build-up of excessive leverage in the banking sector and is expressed as the ratio of Tier 1 capital to total balance sheet assets adjusted in accordance with the FSA guidelines. In December 2017, the Group of Central Bank Governors and Heads of Supervision announced final Basel III reforms. The announced reforms include the revisions to the measurement of the leverage ratio and a 3.00% minimum leverage ratio requirement, plus a G-SIB leverage ratio buffer equal to 50% of the applicable G-SIB capital surcharge. In Japan, the FSA adopted a minimum leverage ratio requirement effective March 31, 2019. Since April 1, 2024, the applicable minimum leverage ratio requirement, including the applicable minimum leverage ratio buffer requirement, has been 3.95% consisting of the minimum requirement of 3.15% plus a G-SIB leverage ratio buffer set at 50% of a G-SIB surcharge which, as applied to us, equals 0.75%, plus 0.05%. From June 30, 2020 to March 31, 2024, deposits with the Bank of Japan were temporarily excluded from the calculation of the leverage ratio, and currently remain excluded from the leverage exposure for the purpose of the calculation of the leverage ratio in light of exceptional macroeconomic conditions and other circumstances.

Total loss-absorbing capacity. In November 2015, the Financial Stability Board issued the final Total Loss-Absorbing Capacity, or TLAC, standard for G-SIBs, including us. The Financial Stability Board’s TLAC standard is designed to ensure that if a G-SIB fails, it has sufficient loss-absorbing and recapitalization capacity available in resolution to implement an orderly resolution that minimizes impacts on financial stability, ensures the continuity of critical functions, and avoids exposing public funds to loss. The Financial Stability Board’s TLAC standard defines a minimum requirement for the instruments and liabilities that should be readily available to absorb losses in resolution.

The TLAC standard which was set forth in the regulatory notices and related materials for the implementation of the Financial Stability Board’s TLAC standard in Japan published by the FSA in March 2019 and which became fully applicable to (i) G-SIBs in Japan on March 31, 2022, and (ii) a domestic systemically important bank designated by the FSA, or D-SIB, in Japan deemed to be in particular need for a cross-border resolution arrangement and of particular systemic significance to the Japanese financial system if it fails (such G-SIBs and D-SIB, collectively, “Covered SIBs”) on March 31, 2024, respectively, or the Japanese TLAC Standard, requires entities designated by the FSA as Domestic Resolution Entities for Covered SIBs to meet certain minimum external total loss-absorbing capacity, or External TLAC, requirements. The Japanese TLAC Standard and the Financial Stability Board’s TLAC standard also require the Domestic Resolution Entities to cause any of their material subsidiaries in Japan designated as systemically

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important by the FSA and its subsidiaries, as a material sub-group, or their foreign subsidiaries and their subsidiaries subject to TLAC or similar requirements in the relevant jurisdictions to maintain certain minimum level of capital and debt having internal total loss-absorbing and recapitalization capacity, or Internal TLAC.

In the Japanese TLAC Standard, the FSA has designated the relevant ultimate holding companies in Japan as Domestic Resolution Entities for the Covered SIBs and, in our case, MUFG as the Domestic Resolution Entity for our Group, making MUFG subject to the External TLAC requirements in Japan. The FSA has also designated MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Morgan Stanley Securities as MUFG’s material subsidiaries in Japan, which, together with their respective subsidiaries, as material sub-groups, are subject to the Internal TLAC requirements applicable to MUFG.

External TLAC debt generally consists of Basel III compliant regulatory capital and the Japanese TLAC Standard compliant obligations, net of regulatory adjustments. Internal TLAC debt generally consists of Basel III compliant regulatory capital and the Japanese TLAC Standard compliant subordinated obligations, net of regulatory adjustments. The Japanese TLAC Standard does not require that, in order for unsecured senior debt issued by the Domestic Resolution Entity of a Japanese G-SIB to qualify as External TLAC debt, such debt be subject to any contractual write-down, write-off or conversion provisions or to any subordination provisions so long as its creditors are recognized as structurally subordinated to the creditors of its subsidiaries and affiliates by the FSA on the ground that the amount of excluded liabilities of such Domestic Resolution Entity ranking pari passu with, or junior to, its unsecured senior liabilities does not, in principle, exceed 5% of the aggregate amount of its External TLAC. In contrast, Internal TLAC debt incurred by a material subsidiary of a Japanese G-SIB is required to be subject to contractual loss absorption provisions and to be subordinated to such subsidiary’s excluded liabilities.

The Japanese TLAC Standard requires a Japanese G-SIB, such as us, to issue and maintain External TLAC debt in an amount not less than 18% of its consolidated risk-weighted assets and 7.10% of the applicable Basel III leverage ratio denominator. In addition, under the Japanese TLAC Standard, Japanese G-SIBs are allowed to count as External TLAC the Japanese Deposit Insurance Fund Reserves in an amount equivalent to 3.5% of their consolidated risk-weighted assets.

Deposits with the Bank of Japan were temporarily excluded from the calculation of External TLAC ratio and Internal TLAC amounts on a total exposure basis (also referred to as a leverage exposure basis) as well as the leverage ratio from June 30, 2020 until March 31, 2024, and currently remain excluded from the calculation in light of exceptional macroeconomic conditions and other circumstances.

Under the Japanese TLAC Standard, the FSA may order the Domestic Resolution Entity of a Covered SIB to submit a report outlining an improvement plan if the External TLAC ratio of the Domestic Resolution Entity or the Internal TLAC of its material sub-groups in Japan falls below the minimum requirements. If the FSA further deems it necessary to ensure improvement, the FSA may issue a business improvement order to such Domestic Resolution Entity.

The Domestic Resolution Entity may also be subject to a capital distribution constraints plan if the capital buffers are used and reduced below the required level to make up for its required External TLAC on a risk-weighted assets basis.

See “Item 3.D. Key Information—Risk Factors—Risks Related to Our Ability to Meet Regulatory Capital Requirements—We may not be able to maintain our capital ratios and other regulatory ratios above minimum required levels, which could result in various regulatory actions, including the suspension of some or all of our operations.”

Prompt corrective action system. Under the prompt corrective action system, the FSA may take corrective action, if a bank or a bank holding company fails to meet the minimum capital adequacy ratio or leverage ratio. These actions include requiring such bank or bank holding company to formulate and implement capital improvement measures, requiring it to reduce assets or the bank’s business operations or take other specific actions, and issuing an order to dispose of shares of its subsidiaries or suspend all or part of the bank’s business operations.

Capital distribution constraints system. Under the capital distribution constraints system, the FSA may order a bank or a bank holding company to submit and carry out a capital distribution constraints plan, if the bank or the bank holding company fails to maintain Common Equity Tier 1 capital required as applicable capital buffers, or if the bank or the bank holding company is a Japanese G-SIB, such as us, and fails to maintain Tier 1 capital required as applicable leverage buffers. A capital distribution constraints plan must be determined to be reasonably designed to restore the required capital buffers or leverage buffers by restricting capital distributions, such as dividends, share buybacks, interest payments on, and redemption and repurchase of, Additional Tier 1 capital instruments, and bonus payments, up to a certain amount depending on the level of the deficit in the required capital buffers or leverage buffers of the bank or the bank holding company.

Prompt warning system. Under the prompt warning system, the FSA may take precautionary measures to maintain and promote the sound operations of financial institutions, even before those financial institutions become subject to prompt corrective actions. These measures require a financial institution to enhance profitability, credit risk management, stability and cash flows.

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Deposit insurance system and government measures for troubled financial institutions. The Deposit Insurance Act is intended to protect depositors if a financial institution fails to meet its obligations. The Deposit Insurance Corporation was established in accordance with the Deposit Insurance Act.

City banks, including MUFG Bank, regional banks, trust banks, including Mitsubishi UFJ Trust and Banking, and various other credit institutions participate in the deposit insurance system on a compulsory basis.

Under the Deposit Insurance Act, the maximum amount of protection is ¥10 million of principal amount, together with any interest accrued on such principal amount, per customer within one bank. The ¥10 million maximum applies to all deposits except for non-interest-bearing deposits, which are non-interest-bearing deposits redeemable on demand and maintained by depositors primarily in settlement accounts for payment and settlement purposes. Deposits in settlement accounts are fully protected without a maximum amount limitation. Certain types of deposits are not covered by the deposit insurance system, such as foreign currency deposits and negotiable certificates of deposit. From April 1, 2025 until March 31, 2026, the Deposit Insurance Corporation charged an insurance premium equal to 0.022% per year on the deposits in the settlement accounts, and a premium equal to 0.014% per year on the deposits in other accounts, and as of April 1, 2026, they are decreased to 0.018% per year and 0.011% per year, respectively.

Under the Deposit Insurance Act, a Financial Reorganization Administrator can be appointed by the Prime Minister if a bank’s liabilities exceed its assets or a bank has suspended, or is likely to suspend, repayment of deposits. The Financial Reorganization Administrator will take control of the assets of the troubled bank, dispose of the assets and search for another institution willing to take over the troubled bank’s business. The troubled bank’s business may also be transferred to a “bridge bank” established by the Deposit Insurance Corporation to enable the troubled bank’s operations to be maintained and continue temporarily, and the bridge bank will seek to transfer the troubled bank’s assets to another financial institution or dissolve the troubled bank. The Deposit Insurance Corporation protects deposits, as described above, either by providing financial aid for costs incurred by the financial institution succeeding the insolvent bank or by paying insurance money directly to depositors. The financial aid provided by the Deposit Insurance Corporation may take the form of a monetary grant, loan or deposit of funds, purchase of assets, guarantee or assumption of debt, subscription for preferred stock, or loss sharing.

The Deposit Insurance Act also provides for exceptional measures to cope with systemic risk in the financial industry. Where the Prime Minister recognizes that the failure of a bank which falls into any of (i) through (iii) below may cause an extremely grave problem to the maintenance of the financial order in Japan or the region where such bank is operating, or systemic risk, if none of the measures described in (i) through (iii) below is implemented, the Prime Minister may, following deliberation by the Financial Crisis Response Council, confirm (nintei) the need to take any of the following measures: (i) if the bank does not fall into either of the categories described in (ii) or (iii) below, the Deposit Insurance Corporation may subscribe for shares or subordinated bonds of, or extend subordinated loans to the bank, or subscribe for shares of the bank holding company of the bank, in order to enhance the bank’s regulatory capital (“Item 1 measures” (dai ichigo sochi)); (ii) if the bank has suspended, or is likely to suspend, repayment of deposits, or its liabilities exceed its assets, financial aid exceeding the pay-off cost may be made available to such bank (“Item 2 measures” (dai nigo sochi)); and (iii) if the bank has suspended, or is likely suspend, repayment of deposits, and its liabilities exceed its assets, and the systemic risk cannot be avoided by the measures mentioned in (ii) above, the Deposit Insurance Corporation may acquire all of the bank’s shares (“Item 3 measures” (dai sango sochi)). The expenses for the implementation of the above measures will be borne by the banking industry, with an exception under which the Japanese government may provide partial subsidies for such expenses.

Under the new orderly resolution regime established by amendments to the Deposit Insurance Act that were promulgated in June 2013 and became effective on March 6, 2014, financial institutions, including banks, insurance companies and securities companies and their holding companies, are subject to the regime. Further, where the Prime Minister recognizes that the failure of a financial institution which falls into either of (a) or (b) below may cause a significant disruption to the Japanese financial market or system in Japan if measures described in (a) or measures described in (b) are not taken, the Prime Minister may, following deliberation by the Financial Response Crisis Council, confirm (nintei) that any of the following measures need to be applied to the financial institution:

(a)if the financial institution is not a financial institution whose liabilities exceed its assets, the financial institution shall be placed under the special supervision by the Deposit Insurance Corporation over the financial institution’s business operations and management and the disposal of the financial institution’s assets, and the Deposit Insurance Corporation may provide the financial institution with loans or guarantees necessary to avoid the risk of significant disruption to the financial system in Japan, or subscribe for shares or subordinated bonds of, or extend subordinated loans to, the financial institution, taking into consideration the financial condition of the financial institution (“Specified Item 1 measures” (tokutei dai ichigo sochi) under Article 126-2, Paragraph 1, Item 1 of the Deposit Insurance Act); or

(b)if the financial institution is a financial institution whose liabilities exceed, or are likely to exceed, its assets or which has suspended, or is likely to suspend, payments on its obligations, the financial institution shall be placed under the special supervision by the Deposit Insurance Corporation over the financial institution’s business operations and management and the disposal of the financial institution’s assets, and the Deposit Insurance Corporation may provide financial aid necessary to assist a merger, business transfer, corporate split or other reorganization in respect of such failed financial institution

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(“Specified Item 2 measures” (tokutei dai nigo sochi) under Article 126-2, Paragraph 1, Item 2 of the Deposit Insurance Act).

If the Prime Minister confirms that any of the measures set out in (b) above needs to be applied to a failed financial institution, the Prime Minister may order that the failed financial institution’s business operations and management and the disposal of the failed financial institution’s assets be placed under the special control of the Deposit Insurance Corporation. The business or liabilities of the financial institution subject to the special supervision or the special control of the Deposit Insurance Corporation as set forth above may also be transferred to a “bridge financial institution” established by the Deposit Insurance Corporation to enable the financial institution’s operations to be maintained and continue temporarily, or the financial institution’s liabilities to be repaid, and the bridge financial institution will seek to transfer the financial institution’s business or liabilities to another financial institution or dissolve the financial institution. The financial aid provided by the Deposit Insurance Corporation to assist a merger, business transfer, corporate split or other reorganization in respect of the failed financial institution set out in (b) above may take the form of a monetary grant, loan or deposit of funds, purchase of assets, guarantee or assumption of debts, subscription for preferred stock or subordinated bonds, subordinated loan, or loss sharing. If the Deposit Insurance Corporation has provided such financial assistance, the Prime Minister may designate the movable assets and claims of the failed financial institution as not subject to attachment, and such merger, business transfer, corporate split or other reorganization may be conducted outside of the court-administrated insolvency proceedings. If the financial institution subject to the special supervision or the special control by the Deposit Insurance Corporation as set forth above has liabilities that exceed, or are likely to exceed, its assets, or has suspended, or is likely to suspend, payments on its obligations, the financial institution may transfer all or a material portion of its business or all or a material portion of shares of its subsidiaries or implement corporate split or certain other corporate actions with court permission in lieu of any shareholder resolutions. In addition, the Deposit Insurance Corporation must request other financial institution creditors of the failed financial institution to refrain from exercising their rights against the failed financial institution until measures necessary to avoid the risk of significant disruption to the financial system in Japan have been taken, if it is recognized that such exercise of their rights is likely to make the orderly resolution of the failed financial institution difficult.

The expenses for implementation of the measures under this regime will be borne by the financial industry, with an exception under which the Japanese government may provide partial subsidies for such expenses within the limit to be specified in the government budget in cases where it is likely to cause extremely serious hindrance to the maintenance of the credit system in Japan or significant turmoil in the Japanese financial market or system if such expenses are to be borne only by the financial industry.

According to the announcement made by the FSA in March 2014, (i) Additional Tier 1 instruments and Tier 2 instruments under Basel III issued by a bank must be written down or converted into common shares when the Prime Minister confirms (nintei) that Item 2 measures (dai nigo sochi), Item 3 measures (dai sango sochi), or Specified Item 2 measures (tokutei dai nigo sochi) need to be applied to the bank and (ii) Additional Tier 1 instruments and Tier 2 instruments under Basel III issued by a bank holding company must be written down or converted into common shares when the Prime Minister confirms (nintei) that Specified Item 2 measures (tokutei dai nigo sochi) need to be applied to the bank holding company.

Further, in an explanatory paper outlining the FSA’s approach for the introduction of the TLAC framework in Japan published by the FSA in April 2016 and revisions to the paper published by the FSA in April 2018, collectively the FSA TLAC Approach, as well as in the Japanese TLAC Standard, the FSA expressed its view that single point of entry, or SPE, resolution, in which a single national resolution authority applies its resolution tools to the ultimate holding company in Japan of a financial group, would be the preferred strategy for resolution of the Covered SIBs. However, it is uncertain which measure is to be taken in a given case, including whether or not the SPE resolution strategy will actually be elected and implemented in a given case, and the actual measures to be taken will be determined on a case-by-case basis considering the actual condition of the relevant Japanese G-SIB in distress. Under a possible model of resolution of a Japanese G-SIB based on the SPE resolution strategy as described in the Japanese TLAC Standard, if the FSA determines that a material subsidiary in Japan of a financial institution that is a Japanese G-SIB is non-viable due to material deterioration in its financial condition and issues an order concerning restoration of financial soundness, including recapitalization and restoration of liquidity of such material subsidiary, to the ultimate holding company in Japan designated by the FSA as Domestic Resolution Entity for the financial institution under the Banking Act of Japan (Act No. 59 of 1981), the material subsidiary’s Internal TLAC instruments will be written off or, if applicable, converted into equity in accordance with the applicable contractual loss absorption provisions of such Internal TLAC instruments. Following the write-off or conversion of Internal TLAC instruments, if the Prime Minister recognizes that the financial institution’s liabilities exceed, or are likely to exceed, its assets, or that it has suspended, or is likely to suspend, payments on its obligations, as a result of the financial institution’s loans to, or other investment in, the material subsidiary becoming subject to loss absorption or otherwise, and further recognizes that the failure of such financial institution is likely to cause a significant disruption to the Japanese financial market or system, the Prime Minister may, following deliberation by the Financial Crisis Response Council, confirm that Specified Item 2 Measures (tokutei dai nigo sochi) need to be applied to the financial institution for its orderly resolution. Any such confirmation by the Prime Minister also triggers the point of non-viability clauses of Additional Tier 1 and Tier 2 instruments issued by the financial institution, causing such instruments to be written off or, if applicable, converted into equity, as described above.

Upon the application of Specified Item 2 Measures (tokutei dai nigo sochi), a financial institution will be placed under the special supervision by, or if the Prime Minister so orders, under the special control of, the Deposit Insurance Corporation. In an

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orderly resolution, the Deposit Insurance Corporation would control the operation and management of a financial institution’s business, assets and liabilities, including the potential transfer to a bridge financial institution established by the Deposit Insurance Corporation as its subsidiary, or such other financial institution as the Deposit Insurance Corporation may determine, of the financial institution’s systemically important assets and liabilities, which we expect in the case of MUFG would include the shares of our material subsidiaries based on the Japanese TLAC Standard. The Prime Minister may prohibit creditors of the financial institution from attaching any of our assets and claims which are to be transferred to a bridge financial institution or another financial institution. Based on the Japanese TLAC Standard, it is currently expected that the External TLAC eligible senior notes issued by the financial institution will not be transferred to a bridge financial institution or other transferee in the orderly resolution process but will remain as such financial institution’s liabilities subject to court-administered insolvency proceedings. On the other hand, in an orderly resolution process, the shares of material subsidiaries of such financial institution may be transferred to a bridge financial institution or other transferee, and such financial institution would only be entitled to receive consideration representing the fair value of such shares, which could be significantly less than the book value of such shares. Following such business transfer, the recoverable value of such financial institution’s residual assets in court-administered insolvency proceedings may not be sufficient to fully satisfy any payment obligations that such financial institution may have under its liabilities, including the External TLAC eligible senior notes.

Recovery and resolution plan. In November 2025, the Financial Stability Board published the latest list of G-SIBs, which includes us. The list is annually updated by the Financial Stability Board. A recovery and resolution plan must be put in place for each G-SIB, and the plans must be regularly reviewed and updated. In Japan, under the Banking Act and the Comprehensive Guidelines for Supervision of Major Banks, etc., financial institutions identified as G-SIBs must, as part of their crisis management, prepare and submit a recovery plan, including triggers for the recovery plan and an analysis of recovery options, to the FSA. The Comprehensive Guidelines also provide that resolution plans for such financial institutions are prepared by the FSA. We have submitted our most recent recovery plan to the FSA in a timely manner.

Liquidity Coverage Ratio. Japanese banks and bank holding companies with international operations conducted through foreign offices are required to maintain a minimum LCR and disclose their LCRs calculated in accordance with the methodology prescribed in the FSA guidelines that have been adopted to implement the relevant Basel III standard. The LCR is a measure to determine whether a bank has a sufficient amount of high-quality liquid assets, which are assets that can be converted easily and immediately into cash in private markets in order to meet the bank’s liquidity needs, to survive in a 30-day financial stress scenario, including sizable deposit outflows, inability to issue new bonds or access the interbank market, stoppage of the collateralized funding market, need for additional collateral in connection with derivative transactions, and significant outflows of cash under commitment lines to customers. Once a bank or bank holding company fails to meet the minimum LCR of 100%, it is required to immediately report such failure to the FSA. If the FSA deems the financial condition of the bank or bank holding company to be serious, the FSA may issue a business improvement order. A minimum LCR of 100% is currently required.

Net Stable Funding Ratio. Japanese banks and bank holding companies with international operations conducted through foreign offices are also required to maintain a minimum NSFR and disclose their NSFRs calculated in accordance with the methodology prescribed in the FSA guidelines that have been adopted to implement the relevant Basel III standard. The NSFR is a measure to determine whether a bank has sustainable and long-term liabilities and capital for its assets and activities. The Basel Committee on Banking Supervision issued the final standard of NSFR in October 2014. In Japan, the FSA promulgated its NSFR guidelines on March 31, 2021, and the NSFR requirements have been applicable since September 30, 2021, requiring a minimum NSFR of 100%. Once a bank or bank holding company fails to meet the minimum NSFR of 100%, it is required to immediately report such failure to the FSA. If the FSA deems the financial condition of the bank or bank holding company to be serious, the FSA may issue a business improvement order.

Inspection and reporting. The FSA has the authority to order reporting from, and inspect, banks and banking holding companies in Japan. Based on its “Principles and Approaches of Inspection and Supervision,” the FSA seeks to evaluate the effectiveness of the operations and functions of financial institutions, supervise financial institutions based on proactive and forward-looking analyses, facilitate best practices among financial institutions, focus monitoring on high-priority issues, and integrate on- and off-site monitoring.

Furthermore, the Securities and Exchange Surveillance Commission of Japan, or SESC, inspects banks in connection with their securities business as well as financial instruments business operators, such as securities firms. The Bank of Japan also conducts inspections of banks. The Bank of Japan Law provides that the Bank of Japan and financial institutions may agree as to the form of inspection to be conducted by the Bank of Japan.

Laws limiting shareholdings of banks. The provisions of the Antimonopoly Act that generally prohibit a bank from holding more than 5% of another domestic company’s voting rights do not apply to a bank holding company.

However, the Banking Act prohibits a bank holding company and its subsidiaries from holding, on an aggregated basis, more than 15% of the voting rights of domestic companies other than those which can legally become subsidiaries of bank holding companies. There have recently been amendments to various financial regulation related laws, including the Banking Act, which include certain deregulations of restrictions on shareholdings by banks, as described in “— Bank holding company regulations” above.

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In addition, a bank is prohibited from holding shares in other companies exceeding the aggregate of its Common Equity Tier 1 capital amount and Additional Tier 1 capital amount.

Restrictions on exposures to single large counterparties. The Banking Act prohibits banks and bank holding companies with international operations (on a consolidated basis with their subsidiaries and affiliates) from having large exposure exceeding 25% of their Tier 1 capital to a single counterparty and also prohibits a G-SIB’s exposure to another G-SIB exceeding 15% of its Tier 1 capital.

Financial Instruments and Exchange Act. The Financial Instruments and Exchange Act provides protection for investors and also regulates sales of a wide range of financial instruments and services, requiring financial institutions to improve their sales rules and strengthen compliance frameworks and procedures. Among the instruments that the Japanese banks deal in, derivatives, foreign currency-denominated deposits, and variable insurance and annuity products are subject to regulations covered by the sales-related rules of conduct under the law.

Article 33 of the Financial Instruments and Exchange Act generally prohibits banks from engaging in securities transactions. However, bank holding companies and banks may, through a domestic or overseas securities subsidiary, conduct all types of securities businesses, with appropriate approval from the FSA. Similarly, registered banks are permitted to provide securities intermediation services and engage in certain other similar types of securities related transactions, including retail sales of investment funds and government and municipal bonds. In June 2021, certain amendments to the Cabinet Office Ordinance under the Act became effective, which allowed non-public and other information of foreign company customers to be shared within a financial group. In addition, on June 22, 2022, certain amendments to the Cabinet Office Ordinance under the Act became effective, which allowed non-public and other information of certain subject companies such as listed companies to be shared within a financial group without consent of such companies, but required financial institutions to establish measures to respond to a request from relevant companies for suspension of sharing of such information. At the same time, financial institutions are required to strengthen the effectiveness of measures to prevent market abuse.

Subsidiaries of bank holding companies engaging in the securities business are subject to the supervision of the FSA as financial instruments business operators. The Prime Minister has the authority to regulate the securities industry and securities companies, which authority is delegated to the Commissioner of the FSA under the Financial Instruments and Exchange Act. In addition, the SESC, an external agency of the FSA, is independent from the FSA’s other bureaus and is vested with the authority to conduct day-to-day monitoring of the securities markets and to investigate irregular activities that hinder fair trading of securities, including inspections of securities companies as well as banks in connection with their securities business. Furthermore, the Commissioner of the FSA delegates certain authority to the Director General of the Local Finance Bureau to inspect local securities companies and their branches. A violation of applicable laws and ordinances may result in various administrative sanctions, including revocation of registration, suspension of business, administrative monetary penalty or an order to discharge any director or executive officer who has failed to comply with applicable laws and ordinances. Securities companies are also subject to the rules and regulations of the Japanese stock exchanges and the Japan Securities Dealers Association, a self-regulatory organization of securities companies.

Act on Provision of Financial Services and the Development of the Accessibility Environment Thereto. Under the Act on Provision of Financial Services and the Development of the Accessibility Environment Thereto, sellers of financial instruments have a duty to their potential customers to explain important matters such as the nature and magnitude of risks involved regarding the financial instruments that they intend to sell. If a seller fails to comply with the duty, there is a rebuttable presumption that the loss suffered by the customer due to the seller’s failure to explain is equal to the amount of decrease in the value of the purchased financial instruments.

In addition, under a single registration for financial services intermediary business, registrants are permitted to provide intermediary services of each of banking, securities and insurance. The Act does not require any provider of financial services intermediary business to belong to a specific financial institution, but imposes certain regulations on such provider to protect customers, including limitations on the type of services that they may provide, prohibitions on the acceptance of assets of customers and the lodging of a security deposit.

Anti-money laundering laws. Under the Act on Prevention of Transfer of Criminal Proceeds, specified business operators, including financial institutions, are required to verify customer identification data, preserve transaction records, and file suspicious transaction reports with the FSA or other regulatory authorities in cases where any asset received through their business operations is suspected of being criminal proceeds.

Based on “Guidelines on Anti-Money Laundering and Terrorist Financing”, the FSA requires financial institutions to strengthen their management of anti-money laundering and terrorist financing functions and their risk-based approach used in such functions.

Amendments to the Enforcement Ordinance of the Act introduced requirements relating to online KYC processes in November 2018 and strengthened the requirements for KYC processes for customers residing in remote areas in April 2020. Recent amendments to the ordinance will render certain KYC processes currently permitted under the ordinance no longer permissible in and after April 2027 to reduce risks such as impersonation through forgery or alteration of identity verification documents.

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Acts concerning trust business conducted by financial institutions. Under the Trust Business Act, joint stock companies that are licensed by the Prime Minister as trust companies, including non-financial companies, are allowed to conduct trust business. In addition, under the Act on Provision, etc. of Trust Business by Financial Institutions, banks and other financial institutions, as permitted by the Prime Minister, are able to conduct trust business. The Trust Business Act provides for a separate type of registration for trustees who conduct only administration type trust business. The Trust Business Act also provides for various duties imposed on the trustee in accordance with and in addition to the Trust Act.

Act on the Protection of Personal Information. With regard to protection of personal information, the Act on the Protection of Personal Information requires, among other things, Japanese banking institutions to limit the use of personal information to the stated purposes and to properly manage the personal information in their possession, and forbids them from providing personal information to third parties without consent. If a bank violates certain provisions of the Act, the Personal Information Protection Commission of Japan may advise or order the bank to take proper action. In addition, the Banking Act and the Financial Instruments and Exchange Act contain certain provisions with respect to appropriate handling of customer information.

Act on the Use of Personal Identification Numbers in the Administration of Government Affairs. Pursuant to the Act on the Use of Personal Identification Numbers in the Administration of Government Affairs, which became effective in October 2015, the Japanese government has adopted a Social Security and Tax Number System, which is designed to (1) improve social security services, (2) enhance public convenience in obtaining government services, and (3) increase the efficiency of the administration of government affairs. Under this system, a 12-digit unique number is assigned to each resident of Japan to identify and manage information relating to the resident for government service and tax purposes. Financial institutions are required to implement measures to ensure that such customer information will be protected from inappropriate disclosure and other unauthorized use.

Act on the Promotion of Ensuring National Security through Integrated Implementation of Economic Measures. Specified essential infrastructure service providers designated by the competent regulator are required to submit to the competent regulator a plan for review before they introduce specified critical facilities or outsource certain critical maintenance, management or control of specified critical facilities to third parties. Based on its review, the regulator may issue a recommendation or order to take necessary measures. MUFG Bank, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Morgan Stanley Securities, Mitsubishi UFJ NICOS and The Master Trust Bank of Japan, Ltd. were designated as specified essential infrastructure service providers by the FSA as of April 30, 2026.

Act Concerning Protection of Depositors from Illegal Withdrawals Made by Counterfeit or Stolen Cards. The Act on Protection, etc. of Depositors and Postal Saving Holders from Unauthorized Automated Withdrawal, etc. Using Counterfeit Cards, etc. and Stolen Cards, etc. requires financial institutions to establish internal systems to prevent illegal withdrawals of deposits made using counterfeit or stolen bank cards. The Act also requires a financial institution to compensate depositors for any amount illegally withdrawn using stolen bank cards except in certain cases, including those where the financial institution can verify that it acted in good faith without negligence and there was gross negligence on the part of the relevant depositor. In addition, the Act provides that illegal withdrawals with counterfeit bank cards are invalid unless the financial institution acted in good faith without negligence and there was gross negligence on the part of the relevant depositor.

Government reforms to restrict maximum interest rates on consumer lending business. In December 2006, the Diet passed legislation to reform the regulations relating to the consumer lending business, including amendments to the Act Regulating the Receipt of Contributions, Receipt of Deposits and Interest Rates which, effective June 18, 2010, reduced the maximum permissible interest rate from 29.2% per annum to 20% per annum. The regulatory reforms also included amendments to the Money Lending Business Act which, effective June 18, 2010, abolished the so-called “gray-zone interest.” Gray-zone interest refers to interest rates exceeding the limits stipulated by the Interest Rate Restriction Act (between 15% per annum and 20% per annum depending on the amount of principal). Prior to June 18, 2010, gray-zone interests were permitted under certain conditions set forth in the Money Lending Business Act. As a result of the regulatory reforms, all interest rates are now subject to the lower limits imposed by the Interest Rate Restriction Act, compelling lending institutions, including our consumer finance subsidiaries and equity method investees, to lower the interest rates they charge borrowers. Furthermore, the new regulations, which became effective on June 18, 2010, require, among other things, consumer finance companies to limit their lending to a single customer to a maximum of one third of the customer’s annual income regardless of the customer’s repayment capability.

In addition, as a result of decisions made by the Supreme Court of Japan prior to June 18, 2010, imposing stringent requirements for charging such gray-zone interest rates, consumer finance companies have been responding to borrowers’ claims for reimbursement of previously collected interest payments in excess of the limits stipulated by the Interest Rate Restriction Act. See “Item 3.D. Key Information—Risk Factors—Operational Risk—Because of our loans to consumers and our shareholdings in companies engaged in consumer lending, changes in the business or regulatory environment for consumer finance companies in Japan may further adversely affect our financial results.”

Act on Special Provisions of the Income Tax Act, the Corporation Tax Act and the Local Tax Act Incidental to Enforcement of Tax Treaties. Pursuant to the Amendments to the Act on Special Provisions of the Income Tax Act, the Corporation Tax Act and the Local Tax Act Incidental to Enforcement of Tax Treaties, which became effective in January 2017, financial institutions are required to collect certain information from their accountholders, including jurisdictions of tax residence, and report such information to the National Tax Agency in accordance with the Common Reporting Standard as developed by the Organization for Economic Co-operation and Development. Furthermore, amendments to the Act, which became effective on January 1, 2026, require certain financial institutions to collect certain information from their non-resident accountholders who conduct crypto-asset transactions, and

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report such information to the National Tax Agency in accordance with the Crypto-Asset Reporting Framework as developed by the Organization for Economic Co-operation and Development.

United States

As a result of our operations in the United States, we are subject to extensive U.S. federal and state supervision and regulation.

Overall supervision and regulation. The MUFG Group is subject to regulation, supervision, and examination with respect to our U.S. operations by the Board of Governors of the Federal Reserve System (“FRB”) pursuant to the U.S. Bank Holding Company Act of 1956, as amended, or the BHCA, and the International Banking Act of 1978, as amended, or the IBA, because we and MUFG Bank are bank holding companies and foreign banking organizations, as defined pursuant to those statutes. The FRB functions as our “umbrella” supervisor under amendments to the BHCA effected by the Gramm-Leach-Bliley Act of 1999, which among other things:

•authorized qualifying bank holding companies to opt to become “financial holding companies,” and thereby obtain the authority to engage in an expanded list of activities; and

•modified the role of the FRB by redefining the relationships between the FRB and the functional regulators of non-bank subsidiaries of both bank holding companies and financial holding companies.

The BHCA generally prohibits each of a bank holding company and a foreign banking organization that maintains branches or agencies in the United States from, directly or indirectly, acquiring more than 5% of the voting shares of any company engaged in non-banking activities in the United States unless the bank holding company or foreign banking organization has elected to become a financial holding company, as discussed above, or the FRB has determined, by order or regulation, that such activities are so closely related to banking as to be a proper incident thereto and has granted its approval to the bank holding company or foreign banking organization for such an acquisition. The BHCA also requires a bank holding company or foreign banking organization that maintains branches or agencies in the United States to obtain the prior approval of an appropriate federal banking authority before acquiring, directly or indirectly, the ownership of more than 5% of the voting shares or the control of any U.S. bank or bank holding company. In addition, under the BHCA, a U.S. bank or a U.S. branch or agency of a foreign banking organization is prohibited from engaging in various tying arrangements involving it or its affiliates in connection with any extension of credit, taking of deposits, sale or lease of any property or provision of many services.

In October 2008, we, MUFG Bank, Mitsubishi UFJ Trust and Banking and MUFG Americas Holdings initially attained financial holding company status. MUFG and MUFG Bank continue to operate as financial holding companies in the United States. A financial holding company is authorized to engage in an expanded list of activities deemed to be financial in nature or incidental to such financial activity as well as certain specified non-banking activities deemed to be closely related to banking. In order to maintain the status of financial holding company, a bank holding company must continue to meet certain standards established by the FRB that exceed those required of bank holding companies. These higher standards include meeting the “well capitalized” and “well managed” standards for financial holding companies as defined in regulations of the FRB. Failure to meet these standards, due to inadequate capital or managerial shortcomings in its operations, results in restrictions on the ability of a financial holding company to engage in expanded activities, including making acquisitions. In addition, a financial holding company must ensure that each of its U.S. branches and agencies obtain an examination rating of "Satisfactory" and that its insured banking subsidiaries meet certain minimum standards under the Community Reinvestment Act of 1977.

U.S. branches and agencies of subsidiary Japanese banks. Under the authority of the IBA, our banking subsidiaries, MUFG Bank and Mitsubishi UFJ Trust and Banking, operate five branches, two agencies, and a total of 16 Loan Production Offices (“LPOs”) and offices combining an LPO and a Deposit Production Office (“DPO”). MUFG Bank operates a branch in each of Los Angeles, California; and Chicago, Illinois; two branches in New York, New York; an agency in each of Houston and Dallas, Texas; and LPOs or LPO-DPO combined offices licensed by the Office of the Comptroller of the Currency (the “OCC”) in Tampa, Florida; Washington, D.C.; Tempe, Arizona; Menlo Park, Redwood City, Walnut Creek, San Diego, Century City, and San Francisco, California; Danbury, Connecticut; Atlanta, Georgia; Covington, Kentucky; Boston, Massachusetts; Jersey City, New Jersey; Irving, Texas; and Seattle, Washington. Mitsubishi UFJ Trust and Banking operates a branch in New York, New York.

The IBA provides, among other things, that the FRB may examine U.S. branches and agencies of foreign banks, and each branch and agency shall also be subject to on-site examination by the appropriate federal or state bank licensing supervisor as frequently as would a U.S. bank. The IBA also provides that if the FRB determines that a foreign bank is not subject to comprehensive supervision or regulation on a consolidated basis by the appropriate authorities in its home country, or if there is reasonable cause to believe that the foreign bank or its affiliates have committed a violation of law or engaged in an unsafe or unsound banking practice in the United States, the FRB may order the foreign bank to terminate activities conducted at a branch or agency in the United States.

U.S. branches and agencies of foreign banks must be licensed, and are also supervised and regulated, by a state or by the OCC, which is the federal regulator of U.S. national banks. The OCC is an independent bureau of the U.S. Department of the Treasury. Effective November 7, 2017, all of the branches and agencies of MUFG Bank and Mitsubishi UFJ Trust and Banking in the United States converted from state-licensed branches and agencies to federally-licensed branches and agencies supervised and regulated by the OCC. As of December 31, 2025, all of MUFG Bank’s representative offices in the United States have been converted from state-

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licensed representative offices to LPOs or offices combining an LPO and a DPO. The OCC is the licensing authority and primary federal supervisor of MUFG Bank’s LPOs and DPOs, which the OCC views as extensions of MUFG Bank’s U.S. branches. MUFG Bank’s LPOs and DPOs continue to be deemed by the FRB to be representative offices that are subject to applicable FRB regulations, including Regulation K.

When opening a federal branch or agency, a foreign bank must establish and maintain a deposit account with an FRB member bank at least (1) in the amount of capital that would be required of a national bank being organized at the same location or (2) equal to five percent of the total liabilities of the federal branch or agency, including acceptances but excluding (i) accrued expenses and (ii) amounts due and other liabilities to offices, branches, and subsidiaries of the foreign bank, whichever is greater. Federally-licensed branches and agencies must also submit written reports concerning their assets and liabilities and other matters, to the extent required by the OCC or the FRB.

Bank capital requirements, including U.S. requirements, and capital distributions. MUFG Bank and Mitsubishi UFJ Trust and Banking, as foreign banking organizations that have U.S. branches and agencies and are controlled by us, are subject to the FRB’s requirements that they be “well-capitalized” under Japanese risk-based capital standards. MUFG Bank and Mitsubishi UFJ Trust and Banking are all “well capitalized,” and otherwise comply with, all applicable U.S. regulatory capital requirements. Since MUFG Americas Holdings has ceased to be a U.S. Intermediate Holding Company (“IHC”), as further discussed below, U.S. capital adequacy as currently applicable to MUFG Americas Holdings is measured at the MUFG parent company level. MUFG Americas Holdings complies with capital adequacy standards applicable on a consolidated group basis under rules established by MUFG’s home country supervisor.

Other regulated U.S. subsidiaries. Our non-bank subsidiaries that engage in securities-related activities in the United States are regulated by appropriate functional regulators, such as the SEC, any self-regulatory organizations of which they are members, and the appropriate state regulatory agencies. These non-bank subsidiaries are required to meet separate minimum capital standards as imposed by those regulatory authorities. On January 15, 2026, our registered broker-dealer subsidiary, MUFG Securities Americas, Inc. (“MUSA”), was designated a Primary Dealer by the Federal Reserve Bank of New York (the “New York Fed”). In this capacity, MUSA will act as a trading counterparty with the New York Fed, participating in open market operations, supporting U.S. Treasury securities at auctions, and providing market intelligence and analysis to the Open Market Trading Desk at the New York Fed.

Anti-Money Laundering Initiatives, the Bank Secrecy Act, and the USA PATRIOT Act. A major focus of U.S. governmental policy relating to financial institutions in recent years has been, and continues to be, aimed at preventing money laundering and terrorist financing. The USA PATRIOT Act of 2001 and the Anti-Money Laundering Act of 2020, as incorporated into the Bank Secrecy Act, substantially broadened the scope of U.S. anti-money laundering laws and regulations by imposing significant new compliance and due diligence obligations, creating new crimes and penalties, and expanding the extra-territorial jurisdiction of the United States. The U.S. Department of the Treasury has issued a number of regulations that impose obligations on financial institutions to maintain appropriate policies, procedures, and controls to detect, prevent and report potential money laundering and terrorist financing, including the collection of beneficial ownership information for financial institution clients. The bank regulatory agencies carefully scrutinize the adequacy and effectiveness of an institution’s compliance with these regulations and, as a result, there have been various regulatory enforcement actions. A financial institution’s failure to maintain and implement adequate policies, procedures, and controls to prevent and detect money laundering and terrorist financing could have serious adverse consequences for the institution, including the incurrence of expenses to enhance the relevant programs, the imposition of limitations on the scope of its operations and the imposition of fines and other monetary penalties.

Foreign Corrupt Practices Act. The Foreign Corrupt Practices Act, or the FCPA, prohibits U.S. securities issuers, U.S. domestic entities, and parties doing substantial business within the United States (including their shareholders, directors, agents, officers, and employees) from giving, offering, or promising anything of value to foreign public officials in order to obtain or retain any business advantage. The FCPA also requires U.S. securities issuers to maintain adequate books and records in such a way that they fairly reflect all transactions and dispositions of assets. Enforcement efforts have targeted a wide range of U.S. and foreign-based entities and have been based on a broad variety of alleged fact patterns, and in a number of cases have resulted in the imposition of substantial criminal and civil penalties or in agreed payments in settlement of alleged violations. Failure to maintain adequate anti-bribery policies, procedures, internal controls, and books and records globally could have serious adverse consequences for the institution, including the incurrence of expenses to enhance the relevant programs, as well as the imposition of civil and criminal penalties.

Regulatory Reform Legislation —2010 Foundational Reform of the U.S. Financial System. In response to the global financial crisis of 2007-2008 and the perception that lax supervision of the financial industry in the United States may have been a contributing cause to the crisis, legislation designed to reform the system for supervision and regulation of financial firms doing business in the United States, the so-called Dodd-Frank Act, was signed into law on July 21, 2010. The Dodd-Frank Act is complex and extensive in its coverage and contains a wide range of provisions that affect financial institutions with U.S. operations, including us. Included among these provisions are sweeping reforms designed to reduce systemic risk presented by the largest financial firms, promote enhanced supervision, regulation, and prudential standards for many financial firms, establish comprehensive supervision of financial markets, impose new limitations on permissible financial institution activities and investments, expand regulation of the derivatives markets, protect consumers and investors from financial abuse, and provide the government with the tools needed to manage a financial crisis, including the resolution of systemically significant financial firms. Key provisions that impact our operations are summarized below.

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Among the components of the Dodd-Frank Act that have impacted or may impact our operations are the provisions relating to enhanced prudential standards ("EPS"), including capital, liquidity, risk management, and structural requirements, the “Volcker Rule,” derivatives regulations, resolution plans, and incentive-based compensation. Based on information currently available to us, other than the Volcker Rule and derivatives regulations as discussed below, the impact of these components is expected to be mainly limited to our U.S. operations and not to be material to us on a consolidated basis. We monitor developments that relate to the Dodd-Frank Act and the potential impact of its implementing regulations on our activities inside and outside of the United States.

With respect to the Dodd-Frank Act provisions related to EPS, in February 2014 the FRB issued final rules that established EPS ("EPS Rules") for the U.S. operations of foreign banking organizations such as MUFG. The EPS Rules required foreign banking organizations with average U.S. non-branch assets of $50 billion or more to establish a U.S. IHC or designate an existing subsidiary as its U.S. IHC, and to organize all of its U.S. bank and non-bank subsidiaries, with certain limited exceptions, under the IHC subject to U.S. capital requirements and other EPS comparable to those applicable to top-tier U.S. bank holding companies of the same asset size.

Effective July 1, 2016, as required by the EPS Rules, we designated MUFG Americas Holdings, which was our bank holding company, to be also our IHC. After the sale of MUFG Union Bank, MUFG Americas Holdings’ consolidated assets have remained under $50 billion, and MUFG Americas Holdings ceased being an IHC on November 21, 2023, although it remains our top-tier U.S. subsidiary.

Under the EPS Rules, our combined U.S. operations, or CUSO, including MUFG Bank’s branches, agencies, and other offices, Mitsubishi UFJ Trust and Banking’s New York Branch, and all of MUFG’s U.S. subsidiaries, are subject to certain requirements, including liquidity, risk management, regulatory reporting, and single counterparty credit limits, as further noted below.

On October 10, 2019, the FRB issued (1) by itself, a final rule that establishes a tailored framework for application of EPS to U.S. and foreign banking organizations (the “FRB Tailoring Rule”) and (2) jointly with the OCC and the Federal Deposit Insurance Corporation (“FDIC”), a second final rule that modifies the application of capital and liquidity requirements to the operations of U.S. banking organizations and the U.S. operations of foreign banking organizations based on the framework established by the FRB Tailoring Rule (together, the rules are hereinafter referred to as the “Tailoring Rules”). The Tailoring Rules became effective on December 31, 2019.

The Tailoring Rules established a framework to tailor the applicability of certain EPS requirements, including liquidity stress testing and management, capital planning and stress testing, single counterparty credit limits requirements, and related regulatory reporting by categorizing all foreign banking organizations with $100 billion or more in combined U.S. assets into one of four categories, while other U.S. and non-U.S. firms with total assets under $100 and above $50 billion were subject to a significantly reduced level of EPS requirements. This categorization framework was based on the calculation of aggregate U.S. assets and four other risk-based indicators, including weighted short-term wholesale funding, cross-jurisdictional activity, nonbank assets, and off-balance sheet exposure.

Under the framework of the Tailoring Rules, MUFG’s CUSO has been classified as Category II, subject to the most stringent forms of liquidity stress testing and risk management requirements other than those applicable to U.S. G-SIBs. After exiting IHC status, MUFG Americas Holdings ceased to be subject to the categorization framework and EPS requirements on a stand-alone basis.

The Tailoring Rules did not alter the risk management requirements previously applicable to MUFG’s CUSO under EPS. Thus, our CUSO continues to be subject to the oversight of the U.S. Risk Committee, the composition and role of which are further discussed in “Item 6.C. Directors, Senior Management and Employees—Board Practices.” Our Chief Risk Officer for the Americas, as also mandated under EPS, is responsible for implementing and maintaining the CUSO’s risk management framework and practices, including its liquidity management standards. The Chief Risk Officer for the Americas is located in the United States, and reports directly to the U.S. Risk Committee, a committee of the MUFG Board of Directors.

The Volcker Rule was issued in final form by the FRB, OCC, FDIC, SEC, and the U.S. Commodity Futures Trading Commission (“CFTC”) originally in December 2013, and substantive portions were subsequently amended in November 2019 and July 2020. The Volcker Rule restricts the ability of banking entities to conduct certain proprietary trading activities, which means trading in securities and other financial instruments, such as derivatives, for their own account, subject to certain exceptions, including market-making, risk-mitigating hedging, and underwriting, unless such activities are conducted within a rigorous compliance framework. The Volcker Rule also restricts banking entities from engaging in certain activities regarding hedge funds and private equity funds known as covered funds, subject to certain exceptions. The Volcker Rule excludes restrictions on such activities if they are conducted solely outside of the United States. The Volcker Rule requires banking entities to implement policies, procedures, and quantitative metrics reporting that are reasonably designed to ensure and monitor compliance with the restrictions under the Volcker Rule. Our proprietary trading and covered funds activities are generally executed outside of the United States, but certain activities are conducted within the United States, and, therefore, we have undertaken steps that we believe are appropriate to bring our activities and investments into compliance with the Volcker Rule. Given its complexity, the Volcker Rule may be subject to further rule-making and regulatory interpretation in the future.

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U.S. regulators continue to issue final regulations and regulatory determinations governing swaps and derivatives markets as contemplated by the Dodd-Frank Act. To date, MUFG Bank and MUFG Securities EMEA plc have registered as swap dealers with the CFTC. In addition, MUFG Securities EMEA plc is also registered with the SEC as a securities-based swap dealer. Depending on the finalization of regulations and regulatory determinations governing swaps and derivatives markets under the Dodd-Frank Act, as well as the activities of our other subsidiaries located inside and outside of the United States, our other subsidiaries may have to register as swap dealers with, or be subject to the regulations of, the CFTC and/or SEC. Regulation of swap dealers by the CFTC and security-based swap dealers by the SEC imposes numerous corporate governance, business conduct, capital, margin, reporting, clearing, execution, and other regulatory requirements on our operations, which may adversely impact our derivatives businesses and make us less competitive than those competitors that are not subject to the same regulations. On July 23, 2020, the CFTC voted to approve final rules that modify and codify the cross-border application of certain of its Title VII swap rules to both U.S. and non-U.S. registered swap dealers. Similarly, the SEC has adopted a package of rule amendments, guidance, and a related order designed to expand and clarify the framework for regulating cross-border security-based swaps, including single-name credit default swaps. We have implemented measures designed to comply with the relevant rules and regulations by the prescribed compliance dates while continuing to consider the effects of other proposed rules and final regulatory changes.

On June 14, 2018, the FRB approved a final rule regarding single counterparty credit limits, or SCCL, for large banking organizations. The SCCL final rule was considered the last major piece of regulatory action needed to implement Section 165(e) of the Dodd-Frank Act. Section 165(e) was a response to the concern that failure or financial distress of one large, interconnected financial institution could cascade through the U.S. financial system and impair the financial condition of that firm’s counterparties, including other large, interconnected firms. Section 165(e) generally, and the SCCL final rule specifically, seek to mitigate this risk by limiting the aggregate exposure among such financial institutions and their counterparties. In July 2021, MUFG’s CUSO began complying with its CUSO-level requirements by certifying as to home-country compliance with Basel Committee standards in lieu of complying with the final U.S. SCCL rule.

On October 10, 2019, the FRB issued jointly with the FDIC a final rule amending their prior joint rule implementing the resolution planning requirements of Section 165(d) of the Dodd-Frank Act. Resolution plans, also known as living wills, describe a firm’s strategy for orderly resolution under appropriate insolvency regimes. Such resolution would be caused by a material financial distress or failure of the firm. As informed by the framework set forth under the FRB Tailoring Rule, the resolution plan final rule tailors the resolution planning requirements for firms that do not pose the same systemic risk as the largest institutions. The classification of MUFG’s CUSO as a triennial full filer applies to large foreign and U.S. banks classified within Category II and Category III of the FRB Tailoring Rule, and is subject to alternating submissions of full and targeted resolution plans.

On July 30, 2024, the FRB and FDIC issued final guidance to enhance resolution planning at large U.S. and non-U.S. banking organizations with more than $250 billion in total assets, which are classified as triennial full filers. Under this guidance, the submission date for the full resolution plan required of triennial filers was extended to October 1, 2025, on which date, MUFG filed a plan that continued to adopt a multiple point of entry resolution strategy ("MPOE") for its U.S. operations, as done in prior filings. The final guidance confirms that the subsequent filing date of a targeted plan for triennial filers like MUFG is July 1, 2028, and future plan submissions will be due every three years thereafter, alternating between full and targeted resolution plans.

On January 30, 2020, the FRB adopted a final rule revising the “controlling influence” prong of its “control” rules under the BHCA. The final rule reaffirms the FRB's conceptual framework for analyzing “controlling influence”, and incorporates many of the elements of the prior control regulatory framework while clarifying or rejecting others. The issue of “control” is a central concept under the BHCA. Among other things, control determines whether an investor in a banking organization is subject to the requirements and restrictions of the BHCA, whether a bank holding company’s investment in a company is permissible and/or subjects the investee company to the requirements and restrictions of the BHCA, and whether an investor in a banking organization is subject to the Volcker Rule. As a result, a determination of whether or not an investment constitutes “control” of, or even a non-passive holding in, an investee is often determinative of whether an investment can be made (or, at least, must be restructured to avoid control or reduced to a passive holding). The final rule was effective as of September 30, 2020, and applies to MUFG’s investments globally.

Foreign Account Tax Compliance Act. The Hiring Incentives to Restore Employment Act was enacted in March 2010 and contains provisions commonly referred to as the Foreign Account Tax Compliance Act, or FATCA. The U.S. Treasury, acting through the Internal Revenue Service, or the IRS, issued final FATCA regulations in January 2013, which have been updated along with related guidance issued since February 2014. FATCA created a new reporting and withholding regime for U.S. withholding agents and foreign financial institutions, or FFIs, and certain non-financial foreign entities, or NFFEs.

In addition, the FATCA framework has been augmented with the introduction of Intergovernmental Agreements, or IGAs, between the U.S. Treasury and various foreign governments, which are intended to support intergovernmental cooperation to facilitate the implementation of FATCA. The United States has entered into various IGAs with non-U.S. jurisdictions including Japan, some of which became effective as of July 1, 2014.

Consistent with FATCA, we have assessed and determined if our group entities are U.S. withholding agents, FFIs, or NFFEs. Each identified U.S. withholding agent and FFI has also evaluated pre-existing and new entity accounts to the extent required to determine their respective FATCA classifications. We have continuously developed internal procedures and processes that we believe comply with the regulatory requirements under FATCA.

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However, FATCA compliance has required us to develop extensive systems capabilities and internal processes to identify and report U.S. account holders who are subject to FATCA requirements, which has been a complex and costly process requiring significant internal resources. If our procedures and processes are determined not to comply with the requirements of FATCA, we could potentially be subject to serious adverse consequences, including the imposition of withholding taxes on certain amounts payable to us from U.S. sources, and could be required to expend additional resources to enhance our systems, procedures and processes and take other measures in response to such consequences.

Disclosure pursuant to Section 13(r) of the US Securities Exchange Act of 1934

We are disclosing the following information pursuant to Section 13(r) of the Securities Exchange Act of 1934 (Exchange Act), which requires an issuer to disclose whether it or any of its affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with natural persons or entities designated by the U.S. government under specified Executive Orders. The scope of activities that must be reported includes activities not prohibited by U.S. law and conducted outside the United States in compliance with applicable local law.

During the fiscal year ended March 31, 2026, our non-U.S. subsidiary, MUFG Bank, engaged in certain limited business activities with entities in, or affiliated with, Iran, including counterparties owned or controlled by the Iranian government. Specifically, our non-U.S. banking subsidiary, MUFG Bank, has previously issued guarantees outstanding mainly in connection with prior petroleum-related transactions with Iran by its customers that were permissible under applicable sanctions regulations. These transactions did not involve U.S. dollars or clearing services of U.S. banks for the settlement of payments. For the fiscal year ended March 31, 2026, the aggregate fee income relating to these transactions was less than ¥5 million, representing less than 0.0005 percent of our total fee income. In addition, some Iranian financial institutions and other entities in, or affiliated with, Iran maintained non-U.S. dollar correspondent accounts and other similar settlement accounts with MUFG Bank outside the United States. In addition to such accounts, MUFG Bank received deposits in Japan from, and provided settlement services in Japan to, fewer than 10 Iranian government-related entities, and MUFG Bank and a non-U.S. affiliate of MUFG provided credit and/or settlement services to fewer than 100 Iranian government-related individuals including Iranian diplomats. MUFG Bank also maintains settlement accounts outside the United States for certain other entities specified in Executive Order 13224, which settlement accounts were frozen in accordance with applicable laws and regulations. For the fiscal year ended March 31, 2026, the average aggregate balance of deposits held in these accounts represented less than 0.05 percent of the average balance of our total deposits. The interest and fee income from the transactions attributable to these account holders was less than ¥50 million, representing less than 0.001 percent of our total interest and fee income.

We recognize that following the withdrawal in May 2018 by the United States from the Joint Comprehensive Plan of Action, the United States has imposed secondary sanctions against non-U.S. persons who engage in or facilitate a broad range of transactions and activities involving Iran. We have taken this into account and will continue to monitor transactions relating to Iran in order to comply with applicable U.S. and Japanese regulations as well as U.S., Japanese and other international sanctions.

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C.Organizational Structure

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Set forth below is a list of our principal consolidated subsidiaries as of March 31, 2026


Name	Country of Incorporation	Proportion of Ownership Interest (%)		Proportion of Voting Interest (%)
MUFG Bank, Ltd.	Japan	100.00	%	100.00	%
WealthNavi Inc.	Japan	100.00	%	100.00	%
Mitsubishi UFJ eSmart Securities Co,. Ltd.	Japan	100.00	%	100.00	%
Kanmu, Inc.	Japan	82.07	%	73.10	%
Mitsubishi UFJ Trust and Banking Corporation	Japan	100.00	%	100.00	%
Mitsubishi UFJ Real Estate Services Co., Ltd.	Japan	100.00	%	100.00	%
Japan Shareholder Services Ltd.	Japan	100.00	%	100.00	%
The Master Trust Bank of Japan, Ltd.	Japan	46.50	%	46.50	%
Mitsubishi UFJ Real Estate Asset Management Co., Ltd.	Japan	100.00	%	100.00	%
Mitsubishi UFJ Alternative Investments Co., Ltd.	Japan	100.00	%	100.00	%
Human Resources Governance Leaders Co., Ltd.	Japan	100.00	%	100.00	%
Mitsubishi UFJ Securities Holdings Co., Ltd.	Japan	100.00	%	100.00	%
Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.	Japan	60.00	%	60.00	%
Mitsubishi UFJ NICOS Co., Ltd.	Japan	100.00	%	100.00	%
Japan Digital Design, Inc	Japan	94.19	%	94.19	%
MUFG Innovation Partners Co., Ltd.	Japan	100.00	%	100.00	%
Mitsubishi UFJ Asset Management Co., Ltd.	Japan	100.00	%	100.00	%
MUFG Securities (Canada), Ltd.	Canada	100.00	%	100.00	%
MUFG Americas Holdings Corporation	USA	100.00	%	100.00	%
MUFG Securities EMEA plc	UK	100.00	%	100.00	%
Bank of Ayudhya Public Company Limited	Thailand	76.88	%	76.88	%
PT Bank Danamon Indonesia Tbk	Indonesia	92.47	%	92.47	%
PT Adira Dinamika Multi Finance Tbk	Indonesia	94.17	%	93.41	%
Mitsubishi UFJ Baillie Gifford Asset Management Limited	UK	51.00	%	51.00	%
Mitsubishi UFJ Investor Services & Banking (Luxembourg) S.A.	Luxembourg	100.00	%	100.00	%
MUFG Lux Management Company S.A.	Luxembourg	100.00	%	100.00	%
Mitsubishi UFJ Asset Management (UK) Ltd.	UK	100.00	%	100.00	%
MUFG Investor Services Holdings Limited	Bermuda	100.00	%	100.00	%
First Sentier Group Limited	Australia	100.00	%	100.00	%
MUFG Pension & Market Services Holdings Pty Limited	Australia	100.00	%	100.00	%

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D.Property, Plant and Equipment


	As of March 31,
	2025		2026
	(in millions)
Land	¥	406,470	¥	512,220
Buildings	794,868		848,904
Equipment and furniture	561,926		595,226
Leasehold improvements	284,171		306,522
Construction in progress	34,007		46,896
Total	2,081,442		2,309,768
Less accumulated depreciation	1,161,588		1,224,911
Premises and equipment—net	¥	919,854	¥	1,084,857

Our registered address is 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8330, Japan. As of March 31, 2026, we and our subsidiaries conducted our operations either in premises we owned or in properties we leased.

We decided to build a new MUFG headquarters building at the location where the MUFG and MUFG Bank head office building stood previously. In conjunction with the construction of the new building, the head offices for MUFG and MUFG Bank have been temporarily relocated from 7-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo. The construction of the headquarters building is scheduled to be completed in October 2030, with a total planned investment of ¥209 billion, subject to adjustments due to changes in relevant circumstances. Through March 31, 2026, an aggregate of ¥4.6 billion was invested in the construction project.

The following table presents the book values of our material offices and other properties as of March 31, 2026:


	Book Value
	(in millions)
Owned land	¥	512,220
Owned buildings	¥	273,768

The buildings and land we own are primarily used by us and our subsidiaries as offices and branches. Most of the buildings and land we own are free from material encumbrances.

During the fiscal year ended March 31, 2026, premises and equipment increased, primarily reflecting the consolidation of newly established special purpose entities, such as real estate trusts, which hold these properties.

Item 4A. Unresolved Staff Comments.

None.

Item 5. Operating and Financial Review and Prospects.

The following discussion and analysis should be read in conjunction with “Selected Statistical Data” and our consolidated financial statements and related notes.

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			Page
Summary of Financial Data			51
Business Environment			53
Recent Developments			55

A.Operating Results			58
Results of Operations			58
Business Segment Analysis			69
Geographic Segment Analysis			73
Effect of Change in Exchange Rates on Foreign Currency Translation			74

B.Liquidity and Capital Resources			76
Financial Condition			76
Capital Adequacy			87
Non-exchange Traded Contracts Accounted for at Fair Value			91

C.Research and Development, Patents and Licenses, etc.			91

D.Trend Information			91

E.Critical Accounting Estimates			91

Summary of Financial Data

The selected statement of operations data and selected balance sheet data set forth below have been derived from our consolidated financial statements.

Except for risk-adjusted capital ratios, which are calculated in accordance with Japanese banking regulations based on information derived from our consolidated financial statements prepared in accordance with accounting principles generally accepted in Japan, or Japanese GAAP, the summary of financial data set forth below are derived from our consolidated financial statements prepared in accordance with U.S. GAAP.

Since the beginning of the fiscal year ended March 31, 2025, we have changed Krungsri’s fiscal year end from December 31 to March 31 for the purposes of consolidating Krungsri into MUFG’s financial statements. Adjustments have retrospectively been reflected in our consolidated financial statements as of and for the fiscal year ended March 31, 2024. See Note 1 to our consolidated financial statements included in our annual report on Form 20-F for the fiscal year ended March 31, 2025.

You should read the summary of financial data set forth below in conjunction with the remainder of this Item 5, “Selected Statistical Data” and our consolidated financial statements and related notes and other financial data included elsewhere in this Annual Report. These data are qualified in their entirety by reference to all of that information.

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	2024		2025		2026
	(in millions, except per share data and number of shares)
Statement of income data:
Interest income	¥	7,157,320	¥	8,265,574	¥	8,613,865
Interest expense	4,532,397		5,177,377		4,929,611
Net interest income	2,624,923		3,088,197		3,684,254
Provision for credit losses	258,795		121,790		226,112
Net interest income after provision for credit losses	2,366,128		2,966,407		3,458,142
Non-interest income	2,875,384		2,570,535		3,253,399
Non-interest expense	3,363,286		3,741,366		4,202,046
Income before income tax expense	1,878,226		1,795,576		2,509,495
Income tax expense	500,657		527,938		625,591
Net income before attribution of noncontrolling interests	1,377,569		1,267,638		1,883,904
Net income attributable to noncontrolling interests	51,700		705		154,545
Net income attributable to Mitsubishi UFJ Financial Group	¥	1,325,869	¥	1,266,933	¥	1,729,359
Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group	¥	1,325,869	¥	1,266,933	¥	1,729,359
Amounts per share:
Basic earnings per common share—Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group	¥	110.69	¥	108.71	¥	151.74
Diluted earnings per common share—Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group	110.39		108.18		151.09
Number of shares used to calculate basic earnings per common share (in thousands)	11,978,725		11,654,295		11,396,985
Number of shares used to calculate diluted earnings per common share (in thousands)(1)	11,980,601		11,654,850		11,398,382
Cash dividends per share paid during the fiscal year:
—Common stock	¥	36.50	¥	45.50	¥	74.00
	$	0.25	$	0.30	$	0.50


	2024		2025		2026
	(in millions)
Balance sheet data:
Total assets	¥	397,820,570	¥	405,940,211	¥	425,581,652
Loans, net of allowance for credit losses	126,553,342		130,195,440		143,584,884
Total liabilities	379,303,483		386,690,473		404,741,595
Deposits	247,136,000		249,415,006		260,755,340
Long-term debt	40,012,819		21,022,407		21,884,349
Total equity	18,517,087		19,249,738		20,840,057
Capital stock	2,090,270		2,090,270		2,090,270

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	2024			2025			2026
	(in millions, except percentages)
Other financial data:
Average balances:
Interest-earning assets	¥	293,884,430		¥	353,001,315		¥	345,715,572
Interest-bearing liabilities	301,043,486			310,201,720			307,402,122
Total assets	403,307,984			415,941,414			435,345,748
Total equity	19,351,573			19,929,870			20,289,298
Return on equity and assets:
Earnings applicable to common shareholders as a percentage of average total assets	0.33		%	0.30		%	0.40		%
Earnings applicable to common shareholders as a percentage of average total equity	6.85		%	6.36		%	8.52		%
Dividends per common share as a percentage of basic earnings per common share	32.97		%	41.85		%	48.77		%
Average total equity as a percentage of average total assets	4.80		%	4.79		%	4.66		%
Net interest income as a percentage of average total interest-earning assets	0.89		%	0.87		%	1.07		%
Credit quality data:
Allowance for credit losses	¥	1,356,961		¥	1,243,075		¥	1,234,340
Allowance for credit losses as a percentage of loans	1.06		%	0.95		%	0.85		%
Net loan charge-offs	¥	249,139		¥	266,259		¥	296,514
Net loan charge-offs as a percentage of average loans	0.20		%	0.20		%	0.22		%
Average interest rate spread	0.93		%	0.67		%	0.89		%
Risk-adjusted capital ratio calculated under Japanese GAAP(2)	17.82		%	18.83		%	16.85		%

Notes:

(1)Includes the common shares held by the trusts under the stock compensation and share-based compensation plans. See “Item 6.B. Directors, Senior Management and Employees—Compensation.”

(2)Risk-adjusted capital ratios have been calculated in accordance with Japanese banking regulations as applicable on the relevant calculation date based on information derived from our consolidated financial statements prepared in accordance with Japanese GAAP. For a description of the applicable capital ratio calculation and other requirements applicable, see “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Capital adequacy” and “—B. Liquidity and Capital Resources—Capital Adequacy.”

Business Environment

Through our subsidiaries and affiliated companies, we engage in a broad range of financial businesses and services, including commercial banking, investment banking, trust assets and asset management services, securities businesses and credit card businesses, and provide related services to individuals primarily in Japan, Thailand and Indonesia and to corporate customers around the world. Our results of operations and financial condition are exposed to changes in various external economic factors, including:

•general economic conditions,

•interest rates,

•foreign currency exchange rates, and

•stock prices.

General Economic Conditions

The global economy expanded at a moderate pace through most of the fiscal year ended March 31, 2026. Trade and industrial policy changes in major markets continued to affect the economic conditions in countries around the world in various ways, while uncertainty arising from geopolitical developments, including the increasing tension in the Middle East and the prolonged Russia-Ukraine conflict, remained elevated, as these developments disrupted supply chains and increased inflationary pressure on commodity prices. At the same time, economic activities driving structural changes in the global economy and society accelerated, as exemplified by a surge in AI-related investments. The U.S. Federal Open Market Committee, the European Central Bank and other central banks started to lower their benchmark rates and cautiously ease their monetary policies after a period of tightening. On the other hand, in Japan, the Bank of Japan raised its policy rate slightly as the economy grew modestly while price increases kept downward pressure on household consumption. Global and regional economies remain susceptible to, and volatility in financial markets may increase due to, these and other events as well as future destabilizing developments.

Japan’s economy generally exhibited some modestly positive trends during the fiscal year ended March 31, 2026. Japan’s real gross domestic product, or GDP, grew by 0.3% for the quarter ended June 30, 2025, contracted by 0.6% for the quarter ended September 30, 2025, and grew by 0.2% for the quarter ended December 31, 2025, and 0.5% for the quarter ended March 31, 2026, on a quarter-on-quarter basis. These fluctuations reflected both positive factors, such as wage increases, and negative factors, such as

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inflationary pressures. On a year-on-year basis, Japan’s real GDP grew by 2.0% for the quarter ended June 30, 2025, 0.5% for the quarter ended September 30, 2025, 0.2% for the quarter ended December 31, 2025, and 0.6% for the quarter ended March 31, 2026. Japan’s Consumer Price Index, or CPI, fluctuated between minus 0.2% and 0.4% on a month-on-month basis and between 1.3% and 3.6% on a year-over-year basis during the fiscal year ended March 31, 2026. The unemployment rate in Japan remained at low levels, rising slightly from 2.5% in March 2025 to 2.7% in March 2026. According to Teikoku Databank, a Japanese research institution, the number of companies that filed for legal bankruptcy in Japan between April 2025 and March 2026 was 10,425, a 3.5% increase from the same period of the previous year. The total liabilities of companies that filed for legal bankruptcy during the fiscal year ended March 31, 2026 were ¥1,554 billion, a decrease of 31.0% from the previous fiscal year. The Japanese economy remains subject to instabilities resulting from various factors including geopolitical developments, increasing public debt, intensifying trade conflicts and global competition, declining domestic population, inflationary trends, downward pressure on private consumption, and changes in the Bank of Japan's monetary policy.

The U.S. economy generally underwent upward trends through most of the fiscal year ended March 31, 2026, with U.S. real GDP growing by 3.8% for the quarter ended June 30, 2025, 4.4% for the quarter ended September 30, 2025, and 0.5% for the quarter ended December 31, 2025, and 2.1% for the quarter ended March 31, 2026, on a quarter-on-quarter annualized basis. On a year-on-year basis, U.S. real GDP grew by 2.1% for the quarter ended June 30, 2025, 2.3% for the quarter ended September 30, 2025, 2.0% for the quarter ended December 31, 2025, and 2.7% for the quarter ended March 31, 2026. The unemployment rate, however, increased slightly to 4.3% in March 2026 from 4.2% in March 2025. The long-term prospects of the U.S. economy remain uncertain in light of the impact of various factors including inflationary trends, geopolitical developments, changes in the political environment, instabilities in the real estate and banking sectors, and the U.S. government’s economic, monetary, trade and foreign relations policies.

The Eurozone economy also grew modestly during the fiscal year ended March 31, 2026, with Eurozone real GDP growing by 0.1% for the quarter ended June 30, 2025, 0.3% for the quarter ended September 30, 2025 and 0.2% for the quarter ended December 31, 2025, and contracting by 0.2% for the quarter ended March 31, 2026, on a quarter-on-quarter basis. On a year-over-year basis, Eurozone real GDP grew by 1.6% for the quarter ended June 30, 2025, 1.4% for the quarter ended September 30, 2025, 1.2% for the quarter ended December 31, 2025, and 0.3% for the quarter ended March 31, 2026. The unemployment rate in the Eurozone remained unchanged at 6.3% in March 2026 compared to March 2025. The Eurozone economy remains subject to various uncertainties including instabilities resulting from inflationary trends, geopolitical developments, changes in governments' economic, monetary, trade and foreign relations policies, and concerns over the financial system.

Thailand’s GDP in calendar year 2025 grew by 2.4% on a year-on-year basis, slightly decreasing from 2.5% in 2024. The annual headline inflation rate averaged negative 0.1%, down from positive 0.4% in the previous calendar year, representing the first full-year decline in headline consumer prices in five years, although the core inflation rate remained positive. The Monetary Policy Committee cut the policy rate by 100 basis points during calendar year 2025 in phases of four reductions of 25 basis points each, bringing the rate down from 2.25% in December 2024 to 1.25% in December 2025, the lowest level since December 2022. The Thai baht strengthened against the U.S. dollar over the course of calendar year 2025, appreciating to its strongest level in more than four years toward the end of the year, supported by a weaker U.S. dollar and capital inflows. Thailand’s GDP in the first quarter of calendar year 2026 expanded by 2.8% on a year-on-year basis and 0.7% on a seasonally adjusted quarter-on-quarter basis from the fourth quarter of calendar year 2025. Thailand’s economy remains subject to various uncertainties including the high household debt level, fluctuations in the global and regional economies, and instabilities resulting from geopolitical developments.

In Asia excluding Japan and Thailand, economic conditions in ASEAN (Association of Southeast Asian Nations) and NIEs (Newly Industrializing Economies) generally improved and, overall, the economic growth continued during the fiscal year ended March 31, 2026. Meanwhile, in the Chinese economy, the downturn in the real estate market has led to a decline in consumer sentiment, deterioration in the employment environment, and prolonged moderate inflation, all of which may require time to improve and may have an adverse economic impact on other countries, particularly in ASEAN and NIEs. The economic conditions of these regions remain subject to various uncertainties including the fluctuations in the global and local economies as well as geopolitical developments and changes in economic, monetary, trade and foreign relations policies within China as well as those outside China.

Interest Rates

Interest rates in Japan have been on an upward trend due to such reasons as changes in, and market expectations for changes in, the Bank of Japan’s monetary policy, concerns over Japan's fiscal expansion, and domestic and global upward interest rate pressures. In March 2024, the Bank of Japan modified its monetary policy to encourage the uncollateralized overnight call rate to remain at around 0 to 0.1 percent. Thereafter, the Bank of Japan further raised the uncollateralized overnight call rate in July 2024, January 2025 and December 2025, and most recently in June 2026, bringing the rate to 1.0%, and is expected to continue to reduce its purchases of Japanese government bonds until March 2027. The yield on 10-year Japanese government bonds fluctuated between 1.117% and 2.388% during the fiscal year ended March 31, 2026. The yield has been fluctuating between around 2.3% and 2.8% since April 2026.

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In the United States, the Federal Open Market Committee lowered the target for the federal funds rate to a target range of 3.50% to 3.75% through reduction by 0.25% at each of its September, October and December 2025 meetings. The Committee has kept the target range unchanged since then, maintaining a cautious, data-dependent stance amid still-elevated inflation. In addition, the Committee concluded the reduction of its holdings of Treasury securities and agency mortgage-backed securities, effective December 1, 2025. The 10-year U.S. Treasury bond yield increased to 4.319% at the end of March 2026 from 4.207% at the end of March 2025, while fluctuating between 3.941% and 4.601% during the period. The yield has been fluctuating between around 4.3% and 4.6% since April 2026.

Foreign Currency Exchange Rates

The Japanese yen depreciated against the U.S. dollar to ¥159.88 to the U.S. dollar as of March 31, 2026 from ¥149.52 to the U.S. dollar as of March 31, 2025. The Japanese yen has been fluctuating between around ¥157 and ¥162 to the U.S. dollar since April 2026.

The Japanese yen was on a generally depreciating trend against the euro during the fiscal year ended March 31, 2026, with the exchange rate being ¥183.41 to the euro as of March 31, 2026 compared to ¥162.08 to the euro as of March 31, 2025. The Japanese yen has been fluctuating between around ¥183 and ¥187 to the euro since April 2026.

The Japanese yen was on a generally depreciating trend against the Thai baht during the fiscal year ended March 31, 2026, with the exchange rate being ¥4.86 to the Thai baht as of March 31, 2026 compared to ¥4.40 to the Thai baht as of March 31, 2025. The Japanese yen has been fluctuating between around ¥4.76 and ¥4.99 to the Thai baht since April 2026.

Stock Prices

The closing price of the Nikkei Stock Average, which is the average of 225 blue chip stocks listed on the Tokyo Stock Exchange, increased to ¥51,063.72 on March 31, 2026 from ¥35,617.56 on March 31, 2025. The closing price of the Nikkei Stock Average has been fluctuating between around ¥52,000 and ¥72,000 since April 2026, reaching highest levels in history.

Recent Developments

During the fiscal year ended March 31, 2026, we engaged in transactions to ensure adequate capital base and structure, while pursuing strategies to improve our capital management and seek opportunities to grow our business. Japan faces some challenges such as a declining birth rate, an aging society and a shrinking population, while low growth has become normalized throughout the world. The environment we operate in has been affected by issues including significant inflationary price trends, instability in the financial system, geopolitical conflicts, changes in economic, monetary and trade policies adopted in major markets, evolving views on environmental and social issues, and advances in digital technologies that enable the entry of new competitors in the financial sector. These developments are changing the business environment in significant ways and with unprecedented speed. MUFG seeks to meet these changes with clear visions and to make the most of these challenges as opportunities for growth. Under our medium-term business plan for the three years ending in the fiscal year ending March 31, 2027, we aim to leverage our extensive network and diverse solutions to provide value to our stakeholders around the world.

Implementation of Share Repurchase Programs and Cancellation of Treasury Shares

During November 2025 through February 2026, we repurchased 94,456,300 shares of our common stock for ¥249,999,908,452 under a share repurchase program that was adopted in November 2025. Under the program, we were authorized by the Board of Directors to repurchase up to the lesser of 130,000,000 shares of our common stock and ¥250.0 billion between November 17, 2025 and February 27, 2026. In addition, we canceled 200,000,000 shares of our common stock held in treasury on November 28, 2025.

During May and June 2026, we repurchased 31,967,100 shares of our common stock for ¥99,999,771,608 under a share repurchase program that was adopted in May 2026. Under the program, we were authorized by the Board of Directors to repurchase up to the lesser of 45,000,000 shares of our common stock and ¥100.0 billion from May 18, 2026 to June 30, 2026. Based on information derived from Japanese GAAP-based financial data and used to calculate our capital ratios under applicable Japanese regulations, we estimate that, based on our repurchase of ¥100.0 billion of our common stock pursuant to this program, each of our Common Equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio as of March 31, 2026 would decline by approximately 0.1 percentage points.

We intend to agilely engage in repurchases of shares of our own stock as a means to return profits to shareholders and improve capital efficiency, taking into account our business performance and capital position, opportunities for growth investments, and market conditions including stock prices. As a general policy, we intend to cancel treasury shares to the extent that such shares exceed approximately 5% of our total issued shares (including treasury shares).

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Issuances and Redemption of TLAC Eligible Senior Debt

During the fiscal year ended March 31, 2026, we obtained $9.0 billion, or ¥1,438.9 billion, €1.7 billion, or ¥302.6 billion, and ¥40.0 billion, aggregate principal amount of External TLAC eligible senior debt financing in the form of securities issuance. During the same period, we redeemed ¥75.5 billion, $1.3 billion, or ¥207.8 billion, aggregate principal amount of External TLAC eligible senior debt.

In April 2026, we issued $5.5 billion, or ¥879.3 billion, and €0.5 billion, or ¥91.7 billion, aggregate principal amount of External TLAC eligible senior debt in the form of securities issuance. In June 2026, we redeemed €0.5 billion, or ¥91.7 billion, aggregate principal amount of External TLAC eligible senior debt.

As of March 31, 2026, our External TLAC ratios were 23.25% on a risk-weighted assets basis and 9.06% on a total exposure basis. As of the same date, we were required to maintain External TLAC ratios of at least 18% on a risk-weighted assets basis and 7.10% on a total exposure basis. See “—B. Liquidity and Capital Resources—Capital Adequacy” below and “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Total loss-absorbing capacity.”

Issuances and Redemption of Basel III-Compliant Subordinated Debt

During the fiscal year ended March 31, 2026, we obtained $1.0 billion, or ¥159.9 billion, and ¥350.0 billion, aggregate principal amount of perpetual subordinated Additional Tier 1 debt financing in the form of securities issuance and borrowings. During the same period, we redeemed or repaid ¥181.0 billion aggregate principal amount of perpetual subordinated Additional Tier 1 debt. In April 2026, we issued ¥350.0 billion aggregate principal amount of perpetual subordinated Additional Tier 1 debt in the form of securities issuance. These securities and borrowings are subject to our discretion to cease interest payments and a write-down of the principal upon the occurrence of certain events, including when our Common Equity Tier 1 capital ratio declines below 5.125% (but, following any such write-down, the principal may be reinstated if the ratio improves and to the extent permitted by the Japanese banking regulator), when we are deemed to have reached the point of non-viability (“PONV”) or when we become subject to bankruptcy proceedings.

During the fiscal year ended March 31, 2026, we obtained ¥172.0 billion aggregate principal amount of subordinated term Tier 2 debt financing in the form of securities issuance in Japan. During the same period, we redeemed or repaid ¥176.0 billion aggregate principal amount of subordinated term Tier 2 debt. In April and June 2026, we redeemed ¥55.0 billion aggregate principal amount of subordinated term Tier 2 debt. We can be exempted from the obligation to pay principal of and interest on the securities or the borrowings, as applicable, when we are deemed to have reached the PONV.

According to the FSA’s approach, PONV will be deemed to have been reached when the Prime Minister of Japan, following deliberation by Japan’s Financial Response Crisis Council pursuant to the Deposit Insurance Act of Japan (“DIA”), confirms that Specified Item 2 Measures need to be applied to MUFG under circumstances where its liabilities exceed or are likely to exceed its assets, or it has suspended or is likely to suspend payment of its obligations.

Investment in Shares of JACCS through a Third-Party Allotment

In September 2025, MUFG Bank acquired 9,980,831 newly issued shares of common stock of JACCS Co., Ltd., an equity-method investee of MUFG Bank, through a third-party allotment transaction for approximately ¥39.0 billion. Additionally, through transfers of the JACCS shares previously held by Mitsubishi UFJ NICOS and Mitsubishi UFJ Trust and Banking, MUFG Bank's ownership ratio further increased to 39.43%. Following these transactions, JACCS remains an equity-method investee of MUFG Bank.

Acquisition of Zenhoren

On April 10, 2025, Mitsubishi UFJ NICOS acquired 13,026,468 shares, representing 50.02% of the shares, of Zenhoren Co., Ltd., a rent guarantee company, for ¥13.0 billion through a tender offer conducted from February 17, 2025 through April 3, 2025. This transaction was part of the capital and business alliance agreement entered into among Mitsubishi UFJ NICOS, MUFG Bank and Zenhoren in February 2025. Mitsubishi UFJ NICOS has also agreed with Mitsubishi UFJ Factors Ltd., a wholly owned subsidiary of MUFG Bank, that Mitsubishi UFJ Factors would exercise the voting rights on the 384,615 shares, representing 1.48% of the shares, of Zenhoren it holds in accordance with the intentions of Mitsubishi UFJ NICOS. Consequently, on April 16, 2025, Zenhoren became a consolidated subsidiary of Mitsubishi UFJ NICOS.

Investment in Shriram Finance Ltd. through a Preferential Allotment of Shares

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On April 8, 2026, MUFG Bank acquired 20.00%, on a fully diluted basis, of the shares of Shriram Finance, a non-banking financial company (NBFC) in India, for approximately ¥713.3 billion, including the purchase consideration for the shares and acquisition-related costs, through a preferential allotment of newly issued shares. Upon completion of this investment, Shriram Finance became an equity method affiliate of both MUFG and MUFG Bank. This investment represents an important step that underscores our long-term commitment to the Indian market and is expected to contribute to India's sustainable economic growth and the advancement of financial inclusion. For more information, see Note 33 to our consolidated financial statements.

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A.Operating Results

The following discussion relates to our operating results for the fiscal years ended March 31, 2026 compared to our operating results for the fiscal year ended March 31, 2025, unless otherwise noted. For the discussion on our operating results for the fiscal year ended March 31, 2024, including certain comparative discussion on our operating results for the fiscal years ended March 31, 2024 and 2025, please refer to “Item 5.A. Operating and Financial Review and Prospects—Operating Results” in our annual report on Form 20-F for the fiscal year ended March 31, 2025, filed with the SEC on July 7, 2025.

Results of Operations


	Fiscal years ended March 31,
	2025		2026		% Change
	(in billions, except percentages)
Interest income	¥	8,265.6	¥	8,613.9	4.2	%
Interest expense	5,177.4		4,929.6		(4.8)
Net interest income	3,088.2		3,684.3		19.3
Provision for credit losses	121.8		226.2		85.7
Non-interest income	2,570.5		3,253.4		26.6
Non-interest expense	3,741.4		4,202.0		12.3
Income before income tax expense	1,795.5		2,509.5		39.8
Income tax expense	527.9		625.6		18.5	%
Net income before attribution of noncontrolling interests	¥	1,267.6	¥	1,883.9	48.6	%
Net income attributable to noncontrolling interests	0.7		154.5		N/M
Net income attributable to Mitsubishi UFJ Financial Group	¥	1,266.9	¥	1,729.4	36.5	%

We recorded net income attributable to Mitsubishi UFJ Financial Group of ¥1,729.4 billion for the fiscal year ended March 31, 2026, compared to net income of ¥1,266.9 billion for the previous fiscal year, primarily due to an increase in net interest income and an increase in non-interest income, although this positive impact was partially offset by an increase in non-interest expense.

Net interest income increased 19.3%, reflecting improvements in both domestic and foreign net interest income. Net domestic interest income increased primarily due to an increase of 0.15 percentage points in our domestic interest rate spread, while net foreign interest income also increased mainly due to an increase in the balance of interest-earning assets, together with an increase of 0.18 percentage points in our foreign interest rate spread.

Provision for credit losses increased mainly due to the provision for credit losses related to a large borrower in the foreign manufacturing sector.

Non-interest income increased 26.6%, driven primarily by increases in net investment securities gains reflecting the impact of higher stock prices as well as fees and commissions income. Non-interest expense increased 12.3% mainly due to increases in salaries and employee benefits, outsourcing expenses, including data processing, fees and commissions expenses, and other non-interest expenses, including cost of goods purchased in connection with the expansion of a subsidiary's trading business.

Net Interest Income

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		Fiscal years ended March 31,
	2025				2026								% Change
			Average balance(1)		Interest income (expense)		Average rate		Average balance(1)		Interest income (expense)		Average rate		Average balance		Interest income (expense)		Average rate 2026 minus 2025 (percentage points)
		(in billions, except percentages)
Interest-earning assets:
Domestic			¥	228,422.7	¥	1,558.8	0.68	%	¥	211,766.2	¥	2,122.7	1.00	%	(7.3	%)	36.2	%	0.32
Foreign			124,578.6		6,706.8		5.38		133,949.4		6,491.2		4.85		7.5		(3.2)		(0.53)
Total			¥	353,001.3	¥	8,265.6	2.34	%	¥	345,715.6	¥	8,613.9	2.49	%	(2.1	%)	4.2	%	0.15
Financed by:
Interest-bearing liabilities:
Domestic			¥	220,664.5	¥	(1,379.8)	0.63	%	¥	217,347.4	¥	(1,748.5)	0.80	%	(1.5	%)	26.7	%	0.17
Foreign			89,537.2		(3,797.6)		4.24		90,054.7		(3,181.1)		3.53		0.6		(16.2)		(0.71)
Total			310,201.7		(5,177.4)		1.67		307,402.1		(4,929.6)		1.60		(0.9)		(4.8)		(0.07)
Non-interest-bearing liabilities (assets)			42,799.6				—		38,313.5				—		(10.5)				—
Total			¥	353,001.3			1.47	%	¥	345,715.6			1.43	%	(2.1	%)			(0.04)
Net interest income and interest rate spread					¥	3,088.2	0.67	%			¥	3,684.3	0.89	%			19.3	%	0.22
Net interest income as a percentage of total interest-earning assets							0.87	%					1.07	%					0.20

Note:

(1)Average balances are generally based on a daily average while a month-end average is used for certain average balances when it is not practicable to obtain applicable daily averages.

Effect of Volume and Rate Changes on Net Interest Income


	Fiscal Year Ended March 31, 2025 versus Fiscal Year Ended March 31, 2026
	Increase (decrease) due to changes in
		Volume(1)		Rate(1)		Net change
	(in millions)
Domestic		¥	74,999	¥	120,203	¥	195,202
Foreign		399,168		1,687		400,855
Total		¥	474,167	¥	121,890	¥	596,057

Note:

(1)Volume/rate variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total “net change.”

Net interest income increased 19.3% to ¥3,684.3 billion for the fiscal year ended March 31, 2026, compared to the previous fiscal year. Our total average interest rate spread (which is the average interest rate on interest-earning assets less the average interest rate on interest-bearing liabilities) increased 0.22 percentage points to 0.89%.

Net domestic interest income increased to ¥374.2 billion for the fiscal year ended March 31, 2026 from ¥179.0 billion for the fiscal year ended March 31, 2025 mainly due to an improvement in our interest rate spread in the rising interest rate environment in Japan out of the historical zero-interest rate environment. As a result of our asset and liability management in anticipation of, and response to, such environment where interest rates were gradually rising, our average domestic interest rate spread increased to 0.2% from 0.05%. Domestic interest income increased 36.2% to ¥2,122.7 billion, mainly reflecting the rising interest rate environment in Japan. The average interest rate on domestic interest-earning assets increased 0.32 percentage points to 1.00%. The average balance of domestic interest-earning assets decreased 7.3% to ¥211,766.2 billion, primarily reflecting a decrease in interest-earning deposits in

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other banks. Domestic interest expense increased 26.7% to ¥1,748.5 billion, mainly reflecting the rising interest rate environment in Japan. The average interest rate on domestic interest-bearing liabilities increased 0.17 percentage points to 0.8%. The average balance of domestic interest-bearing liabilities decreased 1.5% to ¥217,347.4 billion.

Net foreign interest income increased to ¥3,310.1 billion for the fiscal year ended March 31, 2026 from ¥2,909.2 billion for the fiscal year ended March 31, 2025 mainly due to an increase in foreign interest-earning assets, with an improvement in our interest rate spread in the declining short-term interest rate environment overseas. Interest rates on our interest-earning foreign assets, including loans, declined to a lesser extent compared to our foreign interest-bearing liabilities, including deposits, while the balance of our foreign interest-earning assets was approximately 1.5 times the balance of our foreign interest-bearing liabilities. Our average foreign interest rate spread increased to 1.32% from 1.14%. Foreign interest income decreased 3.2% to ¥6,491.2 billion mainly due to the decline in short-term interest rates overseas and a decrease in the balance of loans carrying higher margins in our loan portfolio as a result of repayment or sale of such loans. The average interest rate on foreign interest-earning assets decreased 0.53 percentage points to 4.85%. The average balance of foreign interest-earning assets increased 7.5% to ¥133,949.4 billion. Foreign interest expense decreased 16.2% to ¥3,181.1 billion mainly due to the decline in short-term interest rates overseas. The average interest rate on foreign interest-bearing liabilities decreased 0.71 percentage points to 3.53%. The average balance of foreign interest-bearing liabilities increased 0.6% to ¥90,054.7 billion.

Provision for credit losses

We recorded ¥226.2 billion of provision for credit losses for the fiscal year ended March 31, 2026, compared to ¥121.8 billion of provision for credit losses for the previous fiscal year. Provision for credit losses increased ¥104.4 billion mainly due to the provision for credit losses related to a large borrower in the foreign manufacturing sector. Meanwhile, provision for the Krungsri segment decreased, mainly reflecting the positive impact of measures implemented by Krungsri and its subsidiaries to improve loan collection and the asset quality of their automobile loan portfolios.

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Non-Interest Income


	Fiscal years ended March 31,
		2025		2026		% Change
	(in billions, except percentages)
Fees and commissions income:
Fees and commissions on deposits		¥	36.2	¥	34.4	(5.1)	%
Fees and commissions on remittances and transfers		160.6		168.0		4.6
Fees and commissions on foreign trading business		83.6		92.7		10.9
Fees and commissions on credit card business		276.6		277.8		0.4
Fees and commissions on security-related services		361.4		433.5		19.9
Fees and commissions on administration and management services for investment funds		340.0		351.7		3.4
Trust fees		140.5		155.7		10.8
Guarantee fees		55.2		58.0		5.1
Insurance commissions		76.5		96.8		26.5
Fees and commissions on real estate business		71.6		76.4		6.7
Other fees and commissions		583.5		677.3		16.1
Total		2,185.7		2,422.3		10.8
Foreign exchange gains (losses)—net		154.0		(636.2)		N/M
Trading account profits (losses)—net:
Net losses on interest rate and other derivative contracts		(95.7)		(1,703.1)		N/M
Net profits on trading account securities, excluding derivatives		128.0		1,052.5		N/M
Total		32.3		(650.6)		N/M
Investment securities gains (losses)—net:
Net losses on sales of available-for-sale debt securities		(150.8)		(309.0)		(104.9)
Reversal of impairment losses (impairment losses) on available-for-sale debt securities		(13.0)		0.1		100.5
Net gains (losses) from marketable equity securities		(654.3)		982.0		250.1
Other		(14.4)		(7.0)		51.3
Total		(832.5)		666.1		180.0
Equity in earnings of equity method investees—net		669.4		871.2		30.1
Gains on sales of loans including valuation adjustment for loans held for sale		41.7		4.8		(88.6)
Unrealized gain on the contract to purchase equity shares of Shriram Finance Limited (1)		—		25.1		N/M
Other non-interest income		320.0		550.7		72.1
Total non-interest income		¥	2,570.5	¥	3,253.4	26.6	%

Note:

(1)Represents gains recognized in connection with the contract to purchase equity shares of Shriram Finance Limited. See Note 33 to our audited consolidated financial statements for further information.

Non-interest income for the fiscal year ended March 31, 2026 increased 26.6% to ¥3,253.4 billion compared to the previous fiscal year. This increase mainly reflected improvements in net investment securities gains and fees and commissions income, partially offset by the impact of negative changes in net foreign exchange losses and net trading account losses.

Fees and commissions income

Fees and commissions income for the fiscal year ended March 31, 2026 increased 10.8% compared to the previous fiscal year. This increase was primarily due to an increase in fees and commissions on security-related services, primarily reflecting increased market activity by corporate clients, in our commercial banking subsidiaries and securities subsidiaries, and an increase in financing-related fees included in other fees and commissions in our commercial banking subsidiaries and trust banking subsidiaries.

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Net foreign exchange gains (losses)


	Fiscal years ended March 31,
		2025		2026		% Change
	(in billions, except percentages)
Foreign exchange gains (losses)—net:
Net foreign exchange gains (losses) on derivative contracts		¥	447.0	¥	(760.1)	(270.0)	%
Net foreign exchange losses on other than derivative contracts		(331.4)		(1,807.6)		N/M
Net foreign exchange gains related to the fair value option		38.4		1,931.5		N/M
Total		¥	154.0	¥	(636.2)	N/M

Net foreign exchange gains (losses) consist of the following:

•Net foreign exchange gains (losses) on derivative contracts are net gains (losses) primarily on currency derivative instruments entered into for trading purposes.

•Net foreign exchange gains (losses) on other than derivative contracts include foreign exchange trading gains (losses) as well as transaction gains (losses) on the translation into Japanese yen of monetary assets and liabilities denominated in foreign currencies. The transaction gains (losses) on the translation into Japanese yen fluctuate from period to period depending upon the spot rates at the end of each fiscal year. In principle, all transaction gains (losses) on translation of monetary assets and liabilities denominated in foreign currencies are included in current earnings.

•Net foreign exchange gains (losses) related to the fair value option include transaction gains (losses) on the translation into Japanese yen of securities under the fair value option. See Note 31 to our consolidated financial statements.

Net foreign exchange losses for the fiscal year ended March 31, 2026 mainly reflected net foreign exchange losses on derivative contracts and net foreign exchange losses on other than derivative contracts. Given the global nature of our business, we enter into various foreign currency transactions throughout each fiscal year across various currencies. For the fiscal year ended March 31, 2026, we recorded ¥760.1 billion of net foreign exchange losses on derivative contracts, compared to ¥447.0 billion of net gains for the previous fiscal year. Our foreign exchange gains and losses on other than derivative contracts fluctuate throughout each fiscal year depending on the spot rates applicable to specific transactions as well as the spot rate applicable at the end of the fiscal year. Net foreign exchange gains and losses related to the fair value option arise from transactions in foreign currency-denominated trading account securities such as U.S. Treasury bonds. The Japanese yen depreciated against the U.S. dollar on a spot rate basis to ¥159.88 to the U.S. dollar as of March 31, 2026 from ¥149.52 to the U.S. dollar as of March 31, 2025. While net foreign exchange gains related to the fair value option improved, the improvement was more than offset by the negative impact of net foreign exchange losses on derivative contracts and net foreign exchange losses on other than derivative contracts.

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Net trading account profits (losses)


	Fiscal years ended March 31,
		2025		2026		% Change
	(in billions, except percentages)
Trading account profits (losses)—net:
Net losses on interest rate and other derivative contracts
Interest rate contracts		¥	(238.9)	¥	(916.1)	(283.5)	%
Equity contracts		196.0		(770.0)		N/M
Commodity contracts		(0.2)		(0.2)		7.6
Credit derivatives		(9.9)		(12.9)		(30.1)
Other		(42.7)		(3.9)		90.9
Total		¥	(95.7)	¥	(1,703.1)	N/M
Net profits on trading account securities, excluding derivatives
Trading account securities		¥	126.4	¥	924.6	N/M
Trading account securities under the fair value option		1.6		127.9		N/M
Total		¥	128.0	¥	1,052.5	N/M
Total		¥	32.3	¥	(650.6)	N/M

Trading account assets and liabilities are carried at fair value and changes in the value of trading account assets and liabilities are recorded in net trading account profits (losses). Activities reported in our net trading account profits (losses) can generally be classified into two categories:

•trading purpose activities, which are conducted mainly for the purpose of generating profits either through transaction fees or arbitrage gains and involve frequent and short-term selling and buying of securities, commodities or others; and

•trading account assets relating to the application of certain accounting rules, which are generally not related to trading purpose activities, but simply classified as trading accounts due to the application of certain accounting rules.

Of the two categories, trading account assets relating to the application of certain accounting rules represent a smaller portion of our trading account profits (losses) for the fiscal year ended March 31, 2026.

We generally do not separate, for financial reporting purposes, customer originated trading activities from non-customer related, proprietary trading activities. When an order for a financial product is placed by a customer, a dealer offers a price which includes certain transaction fees, often referred to as the “margin” to the market price. The margin is determined by considering factors such as administrative costs, transaction amount and liquidity of the applicable financial product. Once the customer agrees to the offered price, the deal is completed, and the position is recorded in our ledger as a single entry without any separation of components. To manage the risk relating to the customer side position, we often enter into an offsetting transaction with the market. Unrealized gains and losses as of the period-end for both the customer side position and the market side position are recorded within the same trading account profits and losses.

Net trading account profits (losses) consist of net profits (losses) on interest rate and other derivative contracts and net profits (losses) on trading account securities, excluding derivatives.

Net profits (losses) on interest rate and other derivative contracts are reported for net profits (losses) on derivative instruments which primarily relate to trading purpose activities and include:

•Interest rate contracts: Interest rate contracts are mainly utilized to manage interest rate risks which could arise from mismatches between assets and liabilities resulting from customer originated trading activities;

•Equity contracts: Equity contracts are mainly utilized to manage the risk that would arise from price fluctuations of stocks held in connection with customer transactions;

•Commodity contracts: Commodity contracts are mainly utilized to meet customers’ demand for hedging the risks relating to commodity price fluctuations in their transactions, and to diversify our portfolio of derivative instruments held for trading purposes; and

•Credit derivatives: Credit derivatives are mainly utilized as a part of our credit portfolio risk management.

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Derivative instruments for trading purposes also include those used as hedges of net exposures rather than for specifically identified assets or liabilities, which do not meet the specific criteria for hedge accounting.

Net profits (losses) on trading account securities, excluding derivatives, consist of:

•Net profits (losses) on trading account securities, which primarily consist of gains and losses on trading and valuation of trading securities which relate to trading purpose activities. Net profits (losses) on investment securities held by certain consolidated variable interest entities, or VIEs, are included in accordance with the applicable accounting rules.

•Net profits (losses) on trading account securities under the fair value option, which are classified into trading account profits (losses) in accordance with certain accounting rules.

Net trading account losses for the fiscal year ended March 31, 2026, compared to net profits for the previous fiscal year, mainly reflected increased losses on interest rate contracts on a net basis in the rising interest rate environment in Japan. The net losses on equity contracts mainly reflected a decrease in equity swaps gains in our banking subsidiaries, driven by the rise in Japanese stock prices.

Net investment securities gains (losses)

Net investment securities gains (losses) include net gains (losses) on sales of available-for-sale debt securities, impairment losses on available-for-sale debt securities, and net gains (losses) from marketable equity securities. Impairment loss on an available-for-sale debt security is recognized as part of investment securities losses if the fair value of such security is below its amortized cost basis and (1) such debt security is held by us with the intent to sell or (2) it is more likely than not that we will be required to sell such debt security before recovering its amortized cost basis. In other circumstances where the fair value of available-for-sale debt securities is less than the amortized cost basis, we recognize the credit component of the impairment loss as part of investment securities losses, and record an allowance for credit losses to the same extent, while recording the noncredit component of the impairment loss in accumulated other comprehensive losses. Net gains (losses) from marketable equity securities include net gains (losses) on sales of marketable equity securities as well as unrealized gains (losses) on such securities.

Net investment securities gains for the fiscal year ended March 31, 2026 were ¥666.1 billion, compared to net losses of ¥832.5 billion for the fiscal year ended March 31, 2025, primarily due to net gains from marketable equity securities of ¥982.0 billion for the fiscal year ended March 31, 2026, compared to net losses of ¥654.3 billion for the previous fiscal year. The net gains from marketable equity securities for the fiscal year ended March 31, 2026 mainly reflected net unrealized gains on marketable equity securities reflecting higher stock prices in Japan. This improvement in net gains from marketable equity securities was partially offset by increased net losses on sales of available-for-sale debt securities primarily reflecting lower prices of such debt securities in Japan.

Net equity in earnings of equity method investees

Net equity in earnings of equity method investees for the fiscal year ended March 31, 2026 was ¥871.2 billion, compared to ¥669.4 billion for the previous fiscal year. This improvement reflected higher earnings of our equity method investees, including Morgan Stanley.

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Non-Interest Expense


	Fiscal years ended March 31,
		2025		2026		% Change
	(in billions, except percentages)
Salaries and employee benefits		¥	1,473.6	¥	1,594.0	8.2	%
Occupancy expenses—net		160.0		162.1		1.3
Fees and commissions expenses		424.6		477.7		12.5
Outsourcing expenses, including data processing		325.1		396.7		22.0
Depreciation of premises and equipment		88.3		87.8		(0.6)
Amortization of intangible assets		295.1		337.1		14.2
Impairment of intangible assets		14.4		8.4		(41.4)
Insurance premiums, including deposit insurance		98.9		100.6		1.7
Communications		65.0		68.1		4.8
Taxes and public charges		113.1		143.3		26.7
Impairment of goodwill		150.1		97.5		(35.1)
Reversal of off-balance sheet credit instruments		(0.7)		(23.3)		N/M


Other non-interest expenses		533.9		752.0		40.9
Total non-interest expense		¥	3,741.4	¥	4,202.0	12.3	%

Non-interest expense for the fiscal year ended March 31, 2026 increased 12.3% compared to the previous fiscal year, mainly due to an increase in salaries and employee benefits, outsourcing expenses, including data processing, fees and commission expenses and other non-interest expenses.

Salaries and employee benefits

Salaries and employee benefits for the fiscal year ended March 31, 2026 increased 8.2% compared to the previous fiscal year mainly due to MUFG Pension & Market Services Holdings Limited being consolidated for the full fiscal year as well as the acquisition of Tidlor Holdings in August 2025.

Fees and commissions expenses

Fees and commissions expenses for the fiscal year ended March 31, 2026 increased 12.5% mainly due to an increase in legal and other fees and costs related to the rent guarantee business of Zenhoren acquired in April 2025 and an increase in royalty fees associated with alliances with other companies.

Outsourcing expenses, including data processing

Outsourcing expenses, including data processing, for the fiscal year ended March 31, 2026 increased 22.0% mainly due to an increase in outsourcing expenses related to AI, IT systems, and cybersecurity in our banking subsidiaries.

Other non-interest expenses

Other non-interest expenses for the fiscal year ended March 31, 2026 increased 40.9% mainly due to an increase in cost of goods purchased in connection with the expansion of the trading business at MUFG Trading Co., Ltd., a subsidiary of our banking subsidiaries.

Impairment of goodwill

We recognized ¥38.6 billion of impairment of goodwill relating to the MUFG Pension & Market Services reporting unit within the Asset Management & Investor Services Business Group segment for the fiscal year ended March 31, 2026. The reporting unit’s cash flow projections decreased in the reporting period primarily due to the loss of a significant client and the decline in corporate

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activities in the relevant capital market. As a result, the fair value of the reporting unit as measured at the period end fell below the carrying amount of the reporting unit.

For the fiscal year ended March 31, 2026, we also recognized ¥53.7 billion of impairment of goodwill relating to the First Sentier Group reporting unit within the Asset Management & Investor Services Business Group segment. The reporting unit’s cash flow projections decreased and the discount rate increased, primarily due to lower projected revenues and profitability of AlbaCore Capital Group, reflecting the delayed timing of new fund launches and increased upfront investments in new business strategies prior to revenue generation from those new funds. As a result, the fair value of the reporting unit as measured at the period end fell below the carrying amount of the reporting unit. As previously reported, we recognized ¥109.9 billion of impairment of goodwill relating to the same reporting unit for the fiscal year ended March 31, 2025.

See Note 6 to our consolidated financial statements for more information.

Income Tax Expense

Beginning in the fiscal year ended March 31, 2026, we have prospectively adopted new disclosure guidance based on the Japanese national statutory tax rate. Our prior disclosure was based on combined normal effective statutory tax rates, which generally represent the aggregate of income taxes imposed by the Japanese national, prefectural and municipal governments. For more information, see Note 8 to our consolidated financial statements.


	Fiscal years ended March 31,
	2025			2026
	(in billions, except percentages)
Income from continuing operations before income tax expense	¥	1,795.6		¥	2,509.5
Income tax expense	527.9			625.6
Effective income tax rate	29.4		%	24.9		%
Combined normal effective statutory tax rate	30.6		%	30.6		%
National statutory corporate tax rate	24.7		%	24.7		%

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Reconciliation of Combined Normal Effective Statutory Tax Rate to Effective Income Tax Rate


	Fiscal year ended March 31, 2025
Combined normal effective statutory tax rate	30.6	%
Increase (decrease) in taxes resulting from:
Nondeductible expenses	0.4
Impairment of goodwill	2.4
Foreign tax credit and payments	0.2
Lower tax rates applicable to income of subsidiaries	(2.5)
Change in valuation allowance	0.3
Nontaxable dividends received	(5.3)
Undistributed earnings of subsidiaries	1.8
Tax and interest expense for uncertainty in income taxes	1.7
Tax penalty and tax refund	(2.9)		(1)
Noncontrolling interest income	0.1
Effect of changes in tax laws	1.2
Expiration of loss carryforward	1.4
Other—net	0.0
Effective income tax rate	29.4	%

Note:

(1)For the fiscal year ended March 31, 2025, MUAH recognized tax benefit of ¥52.1 billion related to an amendment of its California state tax return, resulting in a 2.9 percentage point decrease in the effective tax rate.

Reconciliation of National Statutory Corporate Tax Rate to Effective Income Tax Rate


	Fiscal year ended March 31, 2026
National statutory corporate tax rate	24.7	%
Prefectural and municipal tax, net of national income tax effect(1)	4.1
Foreign tax effects	(0.4)
Effect of changes in tax laws	(0.5)
Change in valuation allowances	(0.8)
Changes in unrecognized tax benefits	0.0
Effect of cross-border tax laws
Foreign branch tax rate difference	0.8
Other(2)	0.9
Tax credits	(0.2)
Nontaxable income
Nontaxable dividends received	(3.3)
Other	0.0
Nondeductible expenses
Impairment of goodwill	0.1
Other	(0.1)
Tax penalty and tax refund	0.0
Expiration of loss carryforward	0.5
Undistributed earnings of subsidiaries	0.2
Other-net	(1.1)
Effective income tax rate	24.9	%

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Notes:

(1)This category includes income taxes imposed by prefectures and municipalities in Japan. Domestic local income tax in Tokyo made up the majority (greater than 50 percent) of the tax effect in this category.

(2)This category includes the income tax effect of Pillar Two top-up tax and the Japan tax effect of foreign branches.

Income taxes applicable to us in Japan are imposed by the national, prefectural and municipal governments, and the aggregate of these taxes resulted in a combined normal effective statutory tax rate of 30.6% for each of the fiscal years ended March 31, 2025 and 2026. For each of the same fiscal years, the income tax rate imposed by the Japanese national government was 24.7%. Foreign subsidiaries are subject to income taxes of the jurisdictions in which they operate. These taxes are reflected in the effective income tax rate.

On March 31, 2025, the “Act to Partially Amend the Income Tax Act, etc.” was promulgated in Japan. Under this legislation, starting from fiscal years beginning on or after April 1, 2026, a “Special Corporate Tax for National Defense” surcharge is expected to be added to the corporate tax rate, causing an approximately 0.9% increase in the applicable normal effective statutory tax rate from 30.6% to 31.5%. The change in tax laws resulted in an increase of ¥21.0 billion in income tax expense for the fiscal year ended March 31, 2025.

Fiscal Year Ended March 31, 2026

The effective income tax rate for the fiscal year ended March 31, 2026 was 24.9%, which was 0.2 percentage points higher than the national statutory corporate tax rate of 24.7%.

This higher effective income tax rate primarily reflected prefectural and municipal tax, net of national income tax effect, partially offset by the effect of our receipt of nontaxable dividends. The effect of the prefectural and municipal tax, net of national income tax effect, resulted in an increase of ¥102.9 billion in income tax expense, with an increase of 4.1 percentage points in the effective income tax rate, for the fiscal year ended March 31, 2026. The effect of our receipt of nontaxable dividends resulted in a decrease of ¥82.6 billion in income tax expense, with a decrease of 3.3 percentage points in the effective income tax rate, for the same fiscal year. Under Japanese tax law, a certain percentage of dividends received is considered nontaxable and excluded from gross revenue in computing taxable income. This creates a permanent difference between our taxable income for Japanese tax purposes and our income before income tax expense reported under U.S. GAAP.

Fiscal Year Ended March 31, 2025

The effective income tax rate for the fiscal year ended March 31, 2025 was 29.4%, which was 1.2 percentage points lower than the combined normal effective statutory rate of 30.6%.

This lower effective income tax rate primarily reflected our receipt of nontaxable dividends, which resulted in a decrease of ¥95.4 billion in income tax expense and a decrease of 5.3 percentage points in the effective income tax rate for the fiscal year ended March 31, 2025.

Another factor contributing to the lower effective income tax rate was ¥52.1 billion of tax benefit recognized by MUFG Americas Holdings relating to an amendment to its California state tax return, resulting in a 2.9 percentage point decrease in the effective tax rate.

Partially offsetting the downward impact of the foregoing factors was the impact of the impairment of goodwill relating to First Sentier Investors, which is now known as First Sentier Group, and Mandala Multifinance, as discussed above, which resulted in an increase of ¥42.9 billion in income tax expense and an increase of 2.4 percentage points in the effective income tax rate for the fiscal year ended March 31, 2025.

Net income attributable to noncontrolling interests

We recorded ¥154.5 billion of net income attributable to noncontrolling interests for the fiscal year ended March 31, 2026, compared to ¥0.7 billion of net income attributable to noncontrolling interests for the previous fiscal year. This mainly reflected an increase in net income of certain consolidated VIEs.

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Business Segment Analysis

We measure the performance of each of our business segments primarily in terms of “operating profit.” Operating profit and other segment information in this Annual Report are based on the financial information prepared in accordance with Japanese GAAP as adjusted in accordance with internal management accounting rules and practices. Accordingly, the format and information are not consistent with our consolidated financial statements prepared in accordance with U.S. GAAP. For example, operating profit does not reflect items such as a component of the provision for (reversal of) credit losses (primarily equivalent to the formula allowance under U.S. GAAP), foreign exchange gains (losses) and investment securities gains (losses). For a reconciliation of operating profit under the internal management reporting system to income before income tax expense shown on the consolidated statements of income, see Note 29 to our consolidated financial statements. We do not use information on the segments’ total assets to allocate our resources and assess performance. Accordingly, business segment information on total assets is not presented. However, in order to ensure more efficient management of resources, and to strengthen controls on profits and losses in each business group, we allocate fixed assets of both MUFG Bank on a stand-alone basis and Mitsubishi UFJ Trust and Banking on a stand-alone basis to each business unit. Accordingly, such fixed assets allocated to business groups are presented below.

Our chief operating decision maker predominantly uses operating profit (loss) for each segment in the annual budget and forecasting process. Such decision maker considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment.

Effective April 1, 2025, we made modifications to our internal management accounting rules and practices, including adjustments made to reflect changes in retail customer attributes, changes in the recording method applied to foreign exchange swaps in the Chinese market, changes in the intercompany settlement rates applied to transactions between the corporate centers and overseas branches, and reallocation of certain expenses related to restricted stock units in the United States among business groups.

These modifications had the following impact on our previously reported business segment information for the fiscal years ended March 31, 2024 and 2025:

•increasing the operating profits of the Retail & Digital Business Group and the Commercial Banking & Wealth Management Business Group by ¥1.7 billion and ¥0.5 billion, respectively, and reducing the operating loss of Other by ¥15.9 billion for the fiscal year ended March 31, 2024;

•reducing the operating profits of the Global Markets Business Group, the Global Corporate & Investment Banking Business Group, the Japanese Corporate & Investment Banking Business Group and the Global Commercial Banking Business Group by ¥8.5 billion, ¥6.8 billion, ¥2.7 billion and ¥0.1 billion, respectively, for the fiscal year ended March 31, 2024;

•increasing the operating profits of the Retail & Digital Business Group and the Commercial Banking & Wealth Management Business Group by ¥1.1 billion and ¥1.1 billion, respectively, and reducing the operating loss of Other by ¥21.6 billion, for the fiscal year ended March 31, 2025; and

•reducing the operating profits of the Global Corporate & Investment Banking Business Group, the Japanese Corporate & Investment Banking Business Group and the Global Commercial Banking Business Group by ¥12.2 billion, ¥2.4 billion and ¥0.1 billion, respectively, and increasing the operating loss of the Global Markets Business Group by ¥9.1 billion, for the fiscal year ended March 31, 2025.

Prior period business segment information has been recast to enable comparison between the relevant amounts for the fiscal years ended March 31, 2024, 2025 and 2026.

For further information, see Note 29 to our consolidated financial statements.

Starting from the fiscal year ended March 31, 2025, the fiscal year of Krungsri, which is included in the Global Commercial Banking Business Group, has been changed from the previous January to December period to an April to March period for consolidation purposes. Given the treatment of reporting lag changes under Japanese GAAP, there is no retrospective application of the change to the business segment information below. In connection with this change, the segment amounts prepared in accordance with Japanese GAAP for the fiscal year ended March 31, 2025, reflect Krungsri's amounts for the fifteen-month period from January 1, 2024 to March 31, 2025.

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	Customer Business
	Retail & Digital Business Group		Commercial Banking & Wealth Management Business Group		Japanese Corporate & Investment Banking Business Group		Global Commercial Banking Business Group		Asset Management & Investor Services Business Group		Global Corporate & Investment Banking Business Group		Total		Global Markets Business Group		Other		Total
			(in billions)
Fiscal year ended March 31, 2024:
Net revenue	¥	842.6	¥	626.8	¥	974.7	¥	684.8	¥	432.3	¥	845.1	¥	4,406.3	¥	302.4	¥	41.5	¥	4,750.2
BK and TB(1):	319.4		420.3		795.3		29.1		118.6		763.1		2,445.8		12.2		108.0		2,566.0
Net interest income	248.1		199.5		488.7		29.3		14.7		398.7		1,379.0		85.5		152.4		1,616.9
Net fees	67.2		187.3		234.1		(0.1)		103.8		326.3		918.6		(13.3)		(19.9)		885.4
Other	4.1		33.5		72.5		(0.1)		0.1		38.1		148.2		(60.0)		(24.5)		63.7
Other than BK and TB	523.2		206.5		179.4		655.7		313.7		82.0		1,960.5		290.2		(66.5)		2,184.2
Operating expenses(2)	624.7		407.5		371.0		382.3		311.0		423.9		2,520.4		297.3		101.1		2,918.8
Operating profit (loss)	¥	217.9	¥	219.3	¥	603.7	¥	302.5	¥	121.3	¥	421.2	¥	1,885.9	¥	5.1	¥	(59.6)	¥	1,831.4
Fixed assets(3)	¥	243.8	¥	171.5	¥	169.3	¥	1.6	¥	21.3	¥	170.9	¥	778.4	¥	114.3	¥	502.3	¥	1,395.0
Increase in fixed assets(4)	¥	49.8	¥	35.8	¥	46.1	¥	0.5	¥	11.5	¥	32.5	¥	176.2	¥	28.2	¥	29.3	¥	233.7
Depreciation(4)	¥	23.3	¥	19.0	¥	42.5	¥	0.3	¥	9.1	¥	42.3	¥	136.5	¥	32.8	¥	12.3	¥	181.6
Fiscal year ended March 31, 2025:
Net revenue	¥	941.7	¥	727.2	¥	1,024.7	¥	969.3	¥	534.2	¥	910.1	¥	5,107.2	¥	(339.5)	¥	40.6	¥	4,808.3
BK and TB(1):	390.2		499.7		835.8		27.0		139.3		811.1		2,703.1		(622.3)		72.0		2,152.8
Net interest income	307.4		268.0		512.3		28.0		25.8		423.7		1,565.2		103.1		88.6		1,756.9
Net fees	78.8		195.0		253.7		(0.9)		113.5		353.4		993.5		(24.8)		(14.7)		954.0
Other	4.0		36.7		69.8		(0.1)		—		34.0		144.4		(700.6)		(1.9)		(558.1)
Other than BK and TB	551.5		227.5		188.9		942.3		394.9		99.0		2,404.1		282.8		(31.4)		2,655.5
Operating expenses(2)	663.6		429.2		388.1		531.3		398.7		449.2		2,860.1		318.3		64.2		3,242.6
Operating profit (loss)	¥	278.1	¥	298.0	¥	636.6	¥	438.0	¥	135.5	¥	460.9	¥	2,247.1	¥	(657.8)	¥	(23.6)	¥	1,565.7
Fixed assets(3)	¥	267.5	¥	187.8	¥	171.7	¥	2.1	¥	23.1	¥	160.9	¥	813.1	¥	87.8	¥	482.3	¥	1,383.2
Increase in fixed assets(4)	¥	50.3	¥	37.2	¥	45.0	¥	0.6	¥	7.7	¥	26.5	¥	167.3	¥	25.5	¥	39.6	¥	232.4
Depreciation(4)	¥	33.0	¥	21.0	¥	42.2	¥	0.3	¥	7.6	¥	39.1	¥	143.2	¥	30.3	¥	13.0	¥	186.5
Fiscal year ended March 31, 2026:
Net revenue	¥	1,064.6	¥	866.9	¥	1,125.9	¥	904.2	¥	621.8	¥	1,081.5	¥	5,664.9	¥	306.9	¥	19.5	¥	5,991.3
BK and TB(1):	458.0		619.5		923.3		34.0		159.7		970.8		3,165.3		(18.7)		(1.2)		3,145.4
Net interest income	365.4		366.2		539.9		35.8		38.7		477.3		1,823.3		56.7		33.9		1,913.9
Net fees	87.7		214.4		307.4		(1.7)		121.1		444.3		1,173.2		(15.3)		(23.9)		1,134.0
Other	4.9		38.9		76.0		(0.1)		(0.1)		49.2		168.8		(60.1)		(11.2)		97.5
Other than BK and TB	606.6		247.4		202.6		870.2		462.1		110.7		2,499.6		325.6		20.7		2,845.9
Operating expenses(2)	778.7		458.9		418.9		516.6		469.3		501.2		3,143.6		342.4		139.9		3,625.9
Operating profit (loss)	¥	285.9	¥	408.0	¥	707.0	¥	387.6	¥	152.5	¥	580.3	¥	2,521.3	¥	(35.5)	¥	(120.4)	¥	2,365.4
Fixed assets(3)	¥	333.1	¥	199.9	¥	176.6	¥	2.4	¥	23.6	¥	163.5	¥	899.1	¥	95.4	¥	488.3	¥	1,482.8
Increase in fixed assets(4)	¥	82.3	¥	44.8	¥	44.8	¥	0.9	¥	8.2	¥	28.5	¥	209.5	¥	34.2	¥	41.8	¥	285.5
Depreciation(4)	¥	41.1	¥	24.2	¥	40.6	¥	0.3	¥	7.8	¥	36.1	¥	150.1	¥	23.3	¥	9.4	¥	182.8

Notes:

(1)“BK and TB” is a sum of MUFG Bank on a stand-alone basis (BK) and Mitsubishi UFJ Trust and Banking on a stand-alone basis (TB).

(2)Operating expenses primarily includes salaries and employee benefits, outsourcing expenses, and amortization of intangible assets.

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(3)Fixed assets in the above table are based on the financial information prepared in accordance with Japanese GAAP as adjusted in accordance with internal management accounting rules and practices, and the amounts correspond to premises and equipment-net, intangible assets-net and goodwill of BK and TB. Fixed assets of MUFG and other consolidated subsidiaries and Japanese GAAP consolidation adjustments amounting to ¥1,505.4 billion as of March 31, 2024, ¥1,732.5 billion as of March 31, 2025 and ¥1,890.5 billion as of March 31, 2026, respectively, are not allocated to each business segment when determining the allocation of management resources and assessing performance and, therefore, such amounts are not included in the table above.

(4)These amounts are related to the fixed assets of BK and TB included in the table above.

Fiscal Year Ended March 31, 2026 Compared to Fiscal Year Ended March 31, 2025

Retail & Digital Business Group—Covers the businesses of Mitsubishi UFJ NICOS, other consumer finance companies, and MUFG Bank with individual customers (excluding wealth management customers) and corporate customers in Japan through the three channels under the concept of “Real (Face-to-Face) × Remote × Digital”. Its net revenue mainly consists of interest income from lending and deposit-taking operations and fees relating to credit card settlement and consumer financing products and services.

Operating profit increased mainly due to higher net revenue from the loan and deposit business driven by increasing Japanese yen interest rates as well as increased fee income generated from higher balance of assets under management and higher volume of credit card and consumer finance transactions, although operating expenses increased primarily due to higher expenses associated with system development and customer promotion.

Commercial Banking & Wealth Management Business Group—Covers small and medium sized enterprise clients and wealth management clients in Japan, offering an extensive array of commercial banking, trust banking and securities products and services. Its net revenue mainly consists of interest income from lending and deposit-taking operations and fees relating to domestic and foreign exchange settlement services and wealth management solutions, including asset management, asset and business succession transfer and real estate services.

Operating profit increased mainly due to overall growth in net revenue from across various products and services, including higher net interest income from loans and deposits driven by increasing Japanese yen interest rates as well as higher solutions income from asset management services and M&A and other financing transactions in the rising equity market environment.

Japanese Corporate & Investment Banking Business Group—Covers the large Japanese corporate businesses. This business group offers large Japanese corporations advanced financial solutions designed to respond to their diversified and globalized needs and to contribute to their business and financial strategies through the global network of our group companies. Its net revenue mainly consists of interest income from lending and deposit-taking operations and fees relating to financing, investment banking, real estate and stock transfer services for large Japanese corporate customers.

Operating profit increased mainly due to higher interest income from lending and deposit-taking operations driven by rising Japanese yen interest rates as well as an increase in fee income generated from the solutions and M&A businesses.

Global Commercial Banking Business Group—Covers the retail and commercial banking businesses of Krungsri and PT Bank Danamon Indonesia, Tbk. This business group offers a comprehensive array of financial products and services such as loans, deposits, fund transfers, investments and asset management services for local retail, small and medium-sized enterprise, and corporate customers across the Asia-Pacific region. Its revenue mainly consists of interest income from lending and deposit-taking operations and fees from remittances and transfers, consumer finance and wealth-related services for individual and small to medium-sized corporate customers of Krungsri and Bank Danamon.

Operating profit decreased mainly due to the impact of Krungsri's operating profits for the extra three months being reflected in, and accounting for approximately 15% of, the business group's total operating profit for the fiscal year ended March 31, 2025 in accordance with applicable accounting treatment under Japanese GAAP, as described above. At Krungsri, income from lending decreased mainly due to the impact of higher level of household debt in Thailand, although this decrease was partially offset by an increase in non-interest income related to automobile loans and the impact of Krungsri's consolidation of Tidlor Holdings in August 2025. Bank Danamon's net operating profit increased primarily due to the impact of the merger of PT Mandala Multifinance Tbk, a subsidiary of MUFG Bank, into PT Adira Dinamika Multi Finance, Tbk, a subsidiary of Bank Danamon, in October 2025, along with higher loan balances and increased non-interest income, including market trading income.

Asset Management & Investor Services Business Group—Covers the asset management and asset administration businesses of Mitsubishi UFJ Trust and Banking, MUFG Bank and First Sentier Group. By integrating the trust banking expertise of Mitsubishi UFJ Trust and Banking and the global strengths of MUFG Bank, the business group offers a full range of asset management and administration services for corporations and pension funds, including pension fund management and administration, advice on pension structures, and payments to beneficiaries, and also offers investment trusts for retail customers. Its net revenue mainly consists of fees from asset management and administration services for products, such as pension trusts and mutual funds.

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Operating profit increased primarily due to the growth of assets under management of this business group as there has been growing customer interest in securities market investments, net inflows of ETFs in Japan, and expanded bundle services in the investor services business, although operating expenses increased primarily due to the impact of full-year consolidation of MUFG Pension & Market Services in the fiscal year ended March 31, 2026, higher expenses at overseas subsidiaries driven by the business expansion in the investor services business, and the impact of base salary increases and inflation.

Global Corporate & Investment Banking Business Group—Covers the global corporate, investment and transaction banking businesses of MUFG Bank and Mitsubishi UFJ Securities Holdings. Through a global network of offices and branches, this business group provides large non-Japanese corporate and financial institution customers outside Japan with a comprehensive set of solutions that meet their increasingly diverse and sophisticated financing needs. Its net revenue mainly consists of interest income from lending and deposit-taking operations and fees and commissions from investment banking services and foreign exchange and derivatives transactions.

Operating profit increased mainly due to higher net interest income, reflecting the positive impact of our balance sheet optimization strategy and growth in asset balances as well as increased fees and commissions income related to the project finance business.

Global Markets Business Group—Covers the customer business and the treasury operations of MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Securities Holdings. The customer business includes sales and trading in fixed income instruments, currencies, equities and other investment products as well as origination and distribution of financial products. The treasury operations include asset and liability management as well as global investments for the MUFG Group.

Operating loss for the fiscal year ended March 31, 2026 improved primarily due to the impact of the rebalancing of our bond portfolio implemented in the previous fiscal year with an aim to enhance the MUFG Group's future profitability. Net revenues from the sales and trading business, including foreign exchange flow transactions and fixed income operations, remained relatively stable for the fiscal year ended March 31, 2026, compared to the previous fiscal year.

Other—Consists mainly of the corporate centers of MUFG, MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Morgan Stanley Securities. The elimination of duplicated amounts of net revenues among business segments is also reflected in Other.

Fiscal Year Ended March 31, 2025 Compared to Fiscal Year Ended March 31, 2024

Retail & Digital Business Group

Operating profit increased mainly due to higher net interest income driven by increasing Japanese yen interest rates as well as higher net revenue from the consumer finance business reflecting the increased retail lending volume, although operating expenses increased primarily due to higher expenses associated with system development and customer promotion.

Commercial Banking & Wealth Management Business Group

Operating profit increased mainly due to overall growth in net revenue from across various products and services, including higher net interest income driven by increasing Japanese yen interest rates, higher derivative income benefiting from heightened market volatility, and higher wealth management income generated by higher assets under management and greater customer interest in equity market investments.

Japanese Corporate & Investment Banking Business Group

Operating profit increased mainly due to higher interest income from lending and deposit-taking operations driven in part by rising Japanese yen interest rates as well as an increase in fee income generated from the solutions and M&A businesses.

Global Commercial Banking Business Group

Operating profit increased mainly due to the impact of Krungsri's operating profits for the extra three months being reflected in, and accounting for approximately 15% of, the business group's total operating profit for the fiscal year ended March 31, 2025 in accordance with applicable accounting treatment under Japanese GAAP, as described above, as well as the impact of Krungsri's acquisition of overseas companies, partially offset by an increase in credit costs. Bank Danamon's increased credit costs also negatively affected the business group's total operating profit, although the bank's interest income, credit-related fees and treasury income improved. Operating expenses increased primarily due to the impact of Krungsri's acquisition of overseas companies and the impact of Krungsri's operating expenses for the extra three months being reflected in the business group’s total operating expenses for the fiscal year ended March 31, 2025 in accordance with applicable accounting treatment under Japanese GAAP, as described above.

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Asset Management & Investor Services Business Group

Operating profit increased primarily due to the growth of the assets under management of business group as there has been growing customer interest in securities market investments, net inflows of ETFs in Japan, and expanded bundle services in the investor services business, although operating expenses increased primarily due to the acquisition of Link Administration Holdings by Mitsubishi UFJ Trust and Banking and an increase in personnel expenses overseas.

Global Corporate & Investment Banking Business Group

Operating profit increased mainly due to higher net interest income, reflecting the positive impact of our balance sheet optimization strategy, and increased deposit income in the APAC region as well as increased fees and commissions income across all regions.

Global Markets Business Group

Operating loss for the fiscal year ended March 31, 2025 mainly reflected the impact of the rebalancing of our bond portfolio designed and implemented to enhance the MUFG Group's future profitability, while net revenues from the sales and trading business, including foreign exchange flow transactions and fixed income operations, remained relatively stable for the fiscal year ended March 31, 2025, compared to the previous fiscal year.

Geographic Segment Analysis

Assets, income and expenses attributable to foreign operations are allocated to geographical areas based on the domicile of the debtors and customers. In general, we have allocated all direct expenses and a proportionate share of general and administrative expenses to income derived from foreign loans and other transactions by our foreign operations to the relevant foreign geographical areas. Certain charges, such as most impairment charges on goodwill, are recognized as domestic expenses. For further information, see Note 30 to our consolidated financial statements.

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	Fiscal years ended March 31,
		2025		2026		% Change
	(in billions, except percentages)
Total revenue (interest income and non-interest income):
Domestic		¥	2,905.9	¥	4,407.1	51.7	%
Foreign:
United States of America		3,180.0		3,283.2		3.2
Europe		1,321.4		956.6		(27.6)
Asia/Oceania excluding Japan		2,173.5		2,078.7		(4.4)
Other areas(1)		1,255.3		1,141.7		(9.0)
Total foreign		7,930.2		7,460.2		(5.9)
Total		¥	10,836.1	¥	11,867.3	9.5	%
Income (loss) before income tax expense (benefit):
Domestic		¥	(109.8)	¥	670.1	N/M
Foreign:
United States of America		1,037.9		1,283.6		23.7
Europe		307.2		(167.1)		(154.4)
Asia/Oceania excluding Japan		134.7		286.2		112.4
Other areas(1)		425.5		436.7		2.6
Total foreign		1,905.3		1,839.4		(3.5)
Total		¥	1,795.5	¥	2,509.5	39.8	%
Net income (loss) attributable to Mitsubishi UFJ Financial Group:
Domestic		¥	(343.7)	¥	270.4	178.7	%
Foreign:
United States of America		903.2		1,196.6		32.5
Europe		219.4		(277.2)		(226.3)
Asia/Oceania excluding Japan		115.8		132.1		14.0
Other areas(1)		372.2		407.5		9.5
Total foreign		1,610.6		1,459.0		(9.4)
Total		¥	1,266.9	¥	1,729.4	36.5	%

Note:

(1)Other areas primarily include Canada, Latin America, the Caribbean and the Middle East.

Domestic net income attributable to Mitsubishi UFJ Financial Group for the fiscal year ended March 31, 2026 was ¥270.4 billion compared to net loss of ¥343.7 billion for the fiscal year ended March 31, 2025. This improvement was primarily due to higher interest income in the rising interest environment in Japan as well as an increase in non-interest income due to valuation gains on marketable equity securities reflecting higher stock prices.

Foreign net income attributable to Mitsubishi UFJ Financial Group for the fiscal year ended March 31, 2026 was ¥1,459.0 billion compared to net income of ¥1,610.6 billion for the fiscal year ended March 31, 2025. This decrease reflected larger foreign exchange account losses in Europe arising from derivative transactions. These losses were partially offset by increases in equity in earnings of equity method investees and net trading account profits particularly in the United States. In Asia/Oceania excluding Japan, while both revenue and expenses decreased, net income increased primarily due to higher net interest income on loans at Krungsri.

Effect of Change in Exchange Rates on Foreign Currency Translation

Fiscal Year Ended March 31, 2026

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The average exchange rate for the fiscal year ended March 31, 2026 was ¥150.77 per US$1.00, compared to the prior fiscal year’s average exchange rate of ¥152.58 per US$1.00. The average exchange rate for the conversion of the US dollar financial statements of some of our foreign subsidiaries for the fiscal year ended December 31, 2025 was ¥149.71 per US$1.00, compared to the average exchange rate for the fiscal year ended December 31, 2024 of ¥151.58 per US$1.00.

The change in the average exchange rate of the Japanese yen against the US dollar and other foreign currencies had the effect of decreasing total revenue by ¥4.9 billion, net interest income by ¥5.1 billion and income before income taxes by ¥13.0 billion, respectively, for the fiscal year ended March 31, 2026.

Foreign currency translation adjustments of ¥683.0 billion were recognized in our consolidated statement of comprehensive income for the fiscal year ended March 31, 2026. The adjustments are mainly due to the depreciation of the Japanese yen against other major currencies adopted by our foreign subsidiaries and equity method investments as their respective functional currencies. The following table sets forth the functional currencies and the related foreign currency translation adjustments for the fiscal year ended March 31, 2026:


Functional Currencies of foreign subsidiaries and equity method investments	Fiscal year ended March 31, 2026
	(in billions)
United States Dollar	¥	307.9
Thai Baht	176.6
Chinese Yuan	53.1
Eurocurrency	48.0
Great Britain Pound	38.7
Malaysian Ringgit	30.2
Other	28.5
Total	¥	683.0

The foreign currency translation adjustments primarily resulted from the conversion of financial statements of our foreign subsidiaries and equity method investees that have a US dollar functional currency and a Thai Baht functional currency. The effects of conversion of these US dollar-based financial statements were ¥307.9 billion and were mainly attributable to those relating to Morgan Stanley, which were ¥185.5 billion. The effects of conversion of these Thai Baht-based financial statements were ¥176.6 billion and were mainly attributable to those relating to Krungsri, which were ¥177.4 billion. For Morgan Stanley and Krunsgri, the exchange rates for the conversion of their respective functional currency-based balance sheet items are those as of March 31. The Japanese yen depreciated from ¥149.52 per US$1.00 and ¥4.40 per Thai Baht as of March 31, 2025, to ¥159.88 per US$1.00 and ¥4.86 per Thai Baht as of March 31, 2026, respectively.

Fiscal Year Ended March 31, 2025

The average exchange rate for the fiscal year ended March 31, 2025 was ¥152.58 per US$1.00, compared to the prior fiscal year’s average exchange rate of ¥144.62 per US$1.00. The average exchange rate for the conversion of the US dollar financial statements of some of our foreign subsidiaries for the fiscal year ended December 31, 2024 was ¥151.58 per US$1.00, compared to the average exchange rate for the fiscal year ended December 31, 2023 of ¥140.56 per US$1.00.

The change in the average exchange rate of the Japanese yen against the US dollar and other foreign currencies had the effect of increasing total revenue by ¥472.5 billion, net interest income by ¥165.8 billion and income before income taxes by ¥110.3 billion, respectively, for the fiscal year ended March 31, 2025.

Foreign currency translation adjustments of ¥365.6 billion were recognized in our consolidated statement of comprehensive income for the fiscal year ended March 31, 2025. The adjustments are mainly due to the depreciation of the Japanese yen against other major currencies adopted by our foreign subsidiaries and equity method investments as their respective functional currencies. The following table sets forth the functional currencies and the related foreign currency translation adjustments for the fiscal year ended March 31, 2025:

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Functional Currencies of foreign subsidiaries and equity method investments	Fiscal year ended March 31, 2025
	(in billions)
United States Dollar	¥	224.1
Thai Baht	71.7
Indonesian Rupiah	39.6
Great Britain Pound	34.2
Malaysian Ringgit	7.9
Vietnamese Dong	7.2
Other	(19.1)
Total	¥	365.6

The foreign currency translation adjustments primarily resulted from the conversion of financial statements of our foreign subsidiaries and equity method investees that have a US dollar functional currency and a Thai Baht functional currency. The effects of conversion of these US dollar-based financial statements were ¥224.1 billion and were mainly attributable to those relating to MUFG Americas Holdings, which were ¥205.6 billion. The effects of conversion of these Thai Baht-based financial statements were ¥71.7 billion and were mainly attributable to those relating to Krungsri, which were ¥70.6 billion. For MUFG Americas Holdings, the exchange rate for the conversion of its US dollar-based balance sheet items is the rate as of December 31. The fiscal year end of MUFG Americas Holdings is December 31 and has been treated as coterminous with MUFG’s fiscal year end with a three-month lag period. For Krungsri, the exchange rate for the conversion of its Thai Baht-based balance sheet items is the rate as of March 31. The Japanese yen appreciated from ¥141.83 per US$1.00 as of December 31, 2023, and ¥4.16 per Thai Baht as of March 31, 2024, to ¥158.18 per US$1.00 as of December 31, 2024, and ¥4.40 per Thai Baht as of March 31, 2025, respectively.

B.Liquidity and Capital Resources

Financial Condition

Our total assets and total liabilities as of March 31, 2026 were ¥425,581.7 billion and ¥404,741.6 billion, respectively, compared to ¥405,940.2 billion and ¥386,690.5 billion, respectively, as of March 31, 2025.

For information on our off-balance sheet arrangements, see Note 24 to our consolidated financial statements, and for information on our contractual obligations, see Notes 10 and 12 to our consolidated financial statements.

Total Assets

Our total assets as of March 31, 2026 were ¥425,581.7 billion, an increase of ¥19,641.5 billion from ¥405,940.2 billion as of March 31, 2025. Domestic assets decreased ¥6,800.2 billion mainly due to a decrease in interest earning deposits held in other banks by our subsidiary bank in Japan. The increase in total foreign assets was ¥26,441.7 billion. This increase was mainly due to a ¥13,676.9 billion increase in the United States, a ¥4,733.8 billion increase in Europe and a ¥4,374.1 billion increase in Asia/Oceania excluding Japan. The increase in the United States primarily reflected an increase in interest earning deposits held in other banks, and the increases in Europe and in Asia/Oceania excluding Japan primarily reflected an increase in loans.


	As of March 31,
	2025		2026		% Change
	(in billions, except percentages)
Japan	¥	261,732.5	¥	254,932.3	(2.6)	%
Foreign(1):
United States	66,393.1		80,070.0		20.6
Europe	23,652.8		28,386.6		20.0
Asia/Oceania excluding Japan	38,556.3		42,930.4		11.3
Other areas(2)	15,605.5		19,262.4		23.4
Total foreign	144,207.7		170,649.4		18.3
Total	¥	405,940.2	¥	425,581.7	4.8	%

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Notes:

(1)Foreign assets are denominated primarily in the U.S. dollar. Geographic regions are based principally on the domicile of the obligors.

(2)Other areas primarily include Canada, Latin America, the Caribbean and the Middle East.

Loan Portfolio

The following table sets forth our loans outstanding, before deduction of allowance for credit losses, by class. We classify our loan portfolio into the following portfolio segments—Commercial, Residential, Card, Krungsri, and Other based on the grouping to determine the allowance for credit losses. We further classify the Commercial segment into Domestic and Foreign classes based on initial measurement attributes, risk characteristics, and method of monitoring and assessing credit risk. The Domestic Commercial segment includes commercial loans to borrowers in Japan, and the Foreign Commercial segment includes commercial loans other than those included in the Domestic Commercial, Krungsri and Other segments. The Residential segment includes housing loans to borrowers in Japan, and the Card segment includes consumer loans to borrowers in Japan. The Krungsri segment includes loans held by Krungsri and its subsidiaries. The Other segment mainly consists of Bank Danamon.

We have made changes to our credit rating system, which did not have a material impact on our consolidated financial statements. For details, see Note 1 to our consolidated financial statements.


	As of March 31,
	2025		2026		% Change
	(in billions, except percentages)
Commercial
Domestic	¥	61,669.4	¥	64,192.3	4.1	%
Foreign	46,247.8		55,672.4		20.4
Residential	12,561.8		12,842.5		2.2
Card	498.7		557.5		11.8

Krungsri	8,846.9		9,844.8		11.3
Other	2,056.7		2,216.0		7.7
Total(1)	131,881.3		145,325.5		10.2
Unearned income, unamortized premium—net and deferred loan fees—net	(442.8)		(506.3)		(14.3)
Total(1)	¥	131,438.5	¥	144,819.2	10.2	%

Note:

(1)The above table includes loans held for sale of ¥887.3 billion and ¥1,253.6 billion as of March 31, 2025 and 2026, respectively, which are carried at the lower of cost or fair value.

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As of March 31, 2026, our total loan balance increased 10.2% compared to March 31 2025, and our total loans accounted for 34.0% of total assets as of March 31, 2026, compared to 32.4% as of March 31, 2025. The increase was primarily driven by growth in the foreign commercial segment, mainly reflecting higher loan balances in the United States, as well as an increase in the Krungsri segment, mainly reflecting the impact of TIDLOR Holdings becoming a consolidated subsidiary in August 2025.

Credit quality indicator


	As of March 31,
	2025		2026		% Change
	(in billions, except percentages)(1)
Commercial	¥	107,029.9	¥	118,631.0	10.8	%
Domestic	61,538.5		64,030.9		4.1
Normal	60,011.9		62,841.9		4.7
Close Watch	1,300.9		1,028.2		(21.0)
Likely to become Bankrupt or Legally/Virtually Bankrupt	225.7		160.8		(28.8)
Foreign	45,491.4		54,600.1		20.0
Normal	44,447.9		53,524.2		20.4
Close Watch	827.7		789.4		(4.6)
Likely to become Bankrupt or Legally/Virtually Bankrupt	215.8		286.5		32.8
Residential	¥	12,561.8	¥	12,842.5	2.2	%
Accrual	12,526.3		12,811.2		2.3
Nonaccrual	35.5		31.3		(11.8)
Card	¥	498.7	¥	557.5	11.8	%
Accrual	421.2		519.3		23.3
Nonaccrual	77.5		38.2		(50.8)




Krungsri	¥	8,846.9	¥	9,824.8	11.1	%
Performing	7,675.9		8,531.3		11.1
Under-Performing	843.4		962.5		14.1
Non-Performing	327.6		331.0		1.0
Other	¥	2,056.7	¥	2,216.0	7.7	%
Accrual	2,024.2		2,185.0		7.9
Nonaccrual	32.5		31.0		(4.6)

Note:

(1)Total loans in the above table do not include loans held for sale, and represent balances without adjustments in relation to unearned income, unamortized premiums and deferred loan fees.

We classify loans into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, historical and current financial information, historical and current payment experience, credit documentation, public and non-public information about borrowers and current economic trends as deemed appropriate to each segment.

The primary credit quality indicator for loans within all classes of the Commercial segment is the internal credit rating assigned to each borrower based on our internal borrower ratings of 1 through 15 with the rating of 1 assigned to a borrower with the highest quality of credit. When assigning a credit rating to a borrower, we evaluate the borrower’s expected debt-service capability based on various information, including financial and operating information of the borrower as well as information on the industry in which the borrower operates, and the borrower’s business profile, management and compliance system. In evaluating a borrower’s debt-service capability, we also conduct an assessment of the level of earnings and an analysis of the borrower’s net worth. Based on the internal borrower rating, loans within the Commercial segment are categorized as Normal (internal borrower ratings of 1 through 9), Close Watch (internal borrower ratings of 10 through 12), and Likely to become Bankrupt or Legally/Virtually Bankrupt (internal borrower ratings of 13 through 15).

Loans to borrowers categorized as Normal represent those that are not deemed to have collectability issues. Loans to borrowers categorized as Close Watch represent those that require close monitoring as the borrower has begun to exhibit elements of potential

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concern with respect to its business performance and financial condition, the borrower has begun to exhibit elements of serious concern with respect to its business performance and financial condition, including business problems requiring long-term solutions, or the borrower’s loans are contractually past due 90 days or more for special reasons. Loans to borrowers categorized as Likely to become Bankrupt or Legally/Virtually Bankrupt represent those that have a higher probability of default than those categorized as Close Watch due to serious debt repayment problems with poor progress in achieving restructuring plans, the borrower being considered virtually bankrupt with no prospects for an improvement in business operations, or the borrower being legally bankrupt with no prospects for continued business operations because of non-payment, suspension of business, voluntary liquidation or filing for legal liquidation.

For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Credit Risk Management.”

The accrual status is a primary credit quality indicator for loans within the Residential segment, the Card segment and the Other segment. The accrual status of these loans is determined based on the number of delinquent payments.

Loans within the Krungsri segment are categorized as Performing, Under-Performing or Non-Performing based on their delinquency status. Loans categorized as Under-Performing generally represent those that have significant increases in credit risk since origination, including, among other things, loans that are 30 days or more past due. Loans categorized as Non-Performing generally represent those that are 90 days or more past due.

For the Commercial, Residential, Card and Krungsri segments, credit quality indicators are based on information as of March 31. For the Other segment, credit quality indicators are generally based on information as of December 31.

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Allowance for credit losses


Fiscal year ended March 31, 2025:	Commercial		Residential		Card		Krungsri		Other		Total
	(in billions)
Allowance for credit losses:
Balance at beginning of fiscal year	¥	745.5	¥	57.0	¥	36.4	¥	405.2	¥	112.9	¥	1,357.0
Provision for(reversal of) credit losses	(93.1)		(6.7)		25.6		156.6		39.4		121.8
Charge-offs	55.9		0.6		22.0		199.6		59.0		337.1
Recoveries collected	13.2		0.0		0.9		40.3		16.4		70.8
Net charge-offs	42.7		0.6		21.1		159.3		42.6		266.3
Other(1)	1.9		—		—		21.4		7.3		30.6
Balance at end of fiscal year	¥	611.6	¥	49.7	¥	40.9	¥	423.9	¥	117.0	¥	1,243.1


Fiscal year ended March 31, 2026:	Commercial		Residential		Card		Krungsri		Other		Total
	(in billions)
Allowance for credit losses:
Balance at beginning of fiscal year	¥	611.6	¥	49.7	¥	40.9	¥	423.9	¥	117.0	¥	1,243.1
Provision for (reversal of) credit losses	24.7		(15.8)		30.0		150.2		37.1		226.2
Charge-offs	84.2		1.1		25.5		198.7		51.6		361.1
Recoveries collected	7.3		—		0.6		44.1		12.5		64.5
Net charge-offs	76.9		1.1		24.9		154.6		39.1		296.6
Other(1)(2)	8.2		—		—		57.7		(4.3)		61.6
Balance at end of fiscal year	¥	567.6	¥	32.8	¥	46.0	¥	477.2	¥	110.7	¥	1,234.3

Notes:

(1)Other is principally comprised of gains or losses from foreign exchange translation.

(2)For the fiscal year ended March 31, 2026, the Krungsri segment includes the initial allowance for credit losses for the loans purchased with credit deterioration of ¥14.1 billion.

We recorded ¥226.2 billion of provision for credit losses for the fiscal year ended March 31, 2026, compared to ¥121.8 billion of provision for credit losses for the previous fiscal year. Our total allowance for credit losses as of March 31, 2026 was ¥1,234.3 billion, a decrease of ¥8.8 billion from ¥1,243.1 billion as of March 31, 2025. The total allowance for credit losses represented 0.85% of the total loan balance as of March 31, 2026, compared to 0.95% as of March 31, 2025.

Provision for credit losses for the fiscal year ended March 31, 2026 increased ¥104.4 billion compared to the previous fiscal year primarily due to the provision for credit losses related to a large borrower in the foreign manufacturing sector. Meanwhile, provision for credit losses for the Krungsri segment decreased, mainly reflecting the positive impact of measures implemented by Krungsri and its subsidiaries to improve loan collection and the asset quality of their automobile loan portfolios.

Significant trends in our portfolio segments are discussed below.

Commercial segment—We recorded ¥24.7 billion of provision for credit losses for the fiscal year ended March 31, 2026, compared to ¥93.1 billion of reversal of credit losses for the previous fiscal year. The provision for credit losses for the fiscal year ended March 31, 2026 was primarily related to a large borrower in the foreign manufacturing sector. The ratio of loans classified as Close Watch to total loans in the segment decreased to 1.53% as of March 31, 2026 from 1.99% as of March 31, 2025. The ratio of loans classified as Likely to become Bankrupt or Legally/Virtually Bankrupt to total loans in the segment decreased to 0.38% as of March 31, 2026 from 0.41% as of March 31, 2025. The ratio of allowance for credit losses to the total loan balance in this segment decreased to 0.48% as of March 31, 2026 from 0.57% as of March 31, 2025.

Krungsri segment—We recorded ¥150.2 billion of provision for credit losses for the fiscal year ended March 31, 2026, compared to ¥156.6 billion of provision for credit losses for the previous fiscal year, mainly reflecting the positive impact of measures implemented by Krungsri and its subsidiaries to improve loan collection and the asset quality of their automobile loan portfolios. The ratio of loans classified as Under-Performing or below to total loans in the segment decreased to 13.17% as of March 31, 2026 from

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13.24% as of March 31, 2025. The ratio of allowance for credit losses to the total loan balance in this segment increased to 4.86% as of March 31, 2026 from 4.79% as of March 31, 2025.

The recent acquisitions of consumer finance companies in South East Asia by Krungsri may affect the ratio of allowance for credit losses to the total loan balance in the Krungsri segment as consumer finance companies generally experience higher credit losses compared to commercial banks.

When there is an improvement in asset quality, reversal of credit losses is recorded in our consolidated statements of operations to maintain the allowance for credit losses at a level management deems appropriate. Although we reversed allowance for credit losses for certain loan portfolio segments in recent periods, we have historically provided for credit losses, and in future periods we may need to recognize a provision for credit losses. See “Item 3.D. Key Information—Risk Factors—Credit Risk—We may suffer additional credit-related losses in the future if our borrowers are unable to repay their loans as expected or if the measures we take in reaction to, or in anticipation of, our borrowers’ deteriorating repayment abilities prove inappropriate or insufficient.”

Allowance policy

We apply the current expected credit loss model that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information under Accounting Standards Codification 326 Financial Instruments—Credit Losses, to estimate credit losses.

We maintain an allowance for credit losses to absorb expected losses on the loan portfolio. We have divided our allowance for credit losses into five portfolio segments—Commercial, Residential, Card, Krungsri and Other.

For all portfolio segments, key elements relating to the policies and discipline used in determining the allowance for credit losses are our credit classification and related borrower categorization process, which are closely linked to the risk grading standards set by the Japanese regulatory authorities for asset evaluation and assessment, and are used as a basis for establishing the allowance for credit losses and charge-offs. The categorization is based on conditions that may affect the ability of borrowers to service their debt, such as current financial condition, results of operations and cash flows, historical payment experience, credit documentation, other public information and current trends.

For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Credit Risk Management.”

For the Commercial and Krungsri segments, our allowance for credit losses represents an estimate of the credit losses that are expected over the life of the financial instrument or exposure and is recognized by incorporating relevant available information relating to past events, current conditions, and reasonable and supportable forecasts. The allowance for credit losses primarily consists of (1) an allowance for loans measured on a collective basis, when similar risk characteristics exist, and (2) an allowance for loans measured on an individual basis, for loans that do not share similar risk characteristics. Expected losses are calculated using quantitative models that incorporate historical loss information and economic forecast scenarios and qualitative adjustments are also implemented to account for the risks that are not adequately captured in the quantitative model or economic forecasting assumptions. For the Residential and Card segments, the loans are smaller-balance homogeneous loans that are pooled by the risk ratings based on the number of delinquencies.

For more information on our methodologies used to estimate the allowance for each portfolio segment, see “Summary of Significant Accounting Policies” in Note 1 to our consolidated financial statements and “—E. Critical Accounting Estimates—Allowance for Credit Losses” below.

Allowance for off-balance sheet credit instruments

We maintain an allowance for credit losses on off-balance sheet credit instruments, including commitments to extend credit, guarantees, standby letters of credit and other financial instruments. The allowance is included in other liabilities. We have adopted for such instruments the same methodology as that which is used in determining the allowance for credit losses on loans.

The allowance for credit losses on off-balance sheet credit instruments was ¥160.8 billion as of March 31, 2026, a decrease of ¥17.3 billion from ¥178.1 billion as of March 31, 2025.

Nonaccrual loans

We consider a loan to be a nonaccrual loan when substantial doubt exists as to the full and timely payment of interest on, or repayment of, the principal of the loan, which is a borrower condition that generally corresponds to borrowers in categories 13 and below in our internal rating system (which corresponds to “Likely to become Bankrupt,” “Virtually Bankrupt” and “Bankrupt or de

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facto Bankrupt” status under Japanese banking regulations). Loans are also placed in nonaccrual status when principal or interest is contractually past due one month or more with respect to loans within the Commercial segment, three months or more with respect to loans within the Card and Krungsri segments, and six months or more with respect to loans within the Residential segment.

For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Credit Risk Management.”


	As of March 31,
	2025		2026		% Change
	(in billions, except percentages)
Commercial	¥	503.2	¥	486.5	(3.3)	%
Domestic	279.5		198.8		(28.9)
Foreign	223.7		287.7		28.6
Residential	35.9		31.6		(11.9)
Card	77.5		38.2		(50.8)

Krungsri	327.6		331.0		1.0
Other	32.5		30.9		(4.6)
Total(1)	¥	976.7	¥	918.2	(6.0)	%

Note:

(1)The above table does not include loans held for sale of ¥20.3 billion and ¥26.4 billion as of March 31, 2025 and 2026, respectively.

Total nonaccrual loans decreased ¥58.5 billion between March 31, 2025 and March 31, 2026, primarily due to decreases in the balance of nonaccrual loans in the Domestic Commercial and Card segments, partially offset by an increase in the Foreign Commercial segment. The decrease in nonaccrual loans in the Domestic Commercial segment was mainly related to the loans to large borrowers in the domestic manufacturing and communication sectors, and was also due to a decrease in the Card segment primarily reflecting the impact of the streamlining of loan assessment standards at Mitsubishi UFJ NICOS following the integration of credit card brands. The increase in the Foreign Commercial Segment primarily reflected the deterioration in the borrower condition of a large borrower in the foreign manufacturing sector.

Investment Portfolio

Our total investment securities decreased 7.7% to ¥53,819.5 billion as of March 31, 2026, compared to March 31, 2025. Our investment securities primarily consist of Japanese government bonds and marketable equity securities. Japanese government bonds are classified as available-for-sale debt securities or held-to-maturity debt securities. Our investment in Japanese government bonds is a part of our asset and liability management policy with respect to investing the amount of Japanese yen-denominated funds exceeding our net loans. The percentage of our holding of available-for-sale Japanese government bonds to the total investment securities was 25.9% as of March 31, 2026, compared to 37.9% as of March 31, 2025. The balance of such bonds decreased as we sold a portion of our available-for-sale Japanese government bonds in our investment securities portfolio with unrealized losses. We also sold a portion of our Japanese prefectural and municipal bond portfolio with unrealized losses. Our holding of Japanese government bonds that are classified as held-to-maturity debt securities increased between March 31, 2025 and March 31, 2026, accounting for 30.8% of our total investment securities as of March 31, 2026, compared to 24.6% as of March 31, 2025.

Historically, we have held equity securities of some of our customers primarily for strategic purposes, in particular to maintain long-term relationships with these customers. We continue to focus on reducing our investment in equity securities for such purposes in order to reduce the price fluctuation risk in our equity portfolio from a risk management perspective and to respond to applicable regulatory requirements as well as increasing market expectations for us to reduce our equity portfolio. As of March 31, 2025 and 2026, the aggregate book value of our marketable equity securities under Japanese GAAP satisfied the requirements of the legislation prohibiting banks from holding equity securities in excess of their Tier 1 capital. In November 2024, we announced that we increased our target to reduce the balance of equity securities held for strategic purposes valued on an acquisition cost basis under Japanese GAAP to ¥700.0 billion within the three years ending March 31, 2027. During the period through March 31, 2026, we sold down an aggregate of approximately ¥442.0 billion of equity securities held in our strategic equity investment portfolio on the same acquisition cost basis. Various factors, including changes in market conditions, may affect the amount of equity securities we should sell and our ability to achieve the target as planned. For more information, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Risk Management of Strategic Equity Portfolio."

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Debt Securities


	As of March 31,
	2025						2026						% Change
	Amortized cost		Fair value		Net unrealized gains (losses)		Amortized cost		Fair value		Net unrealized gains (losses)		Amortized cost		Fair value		Net unrealized gains (losses)
	(in billions, except percentages)
Available-for-sale debt securities:
Japanese national government and Japanese government agency bonds	¥	22,314.1	¥	22,083.9	¥	(230.2)	¥	14,180.0	¥	13,916.5	¥	(263.5)	(36.5)	%	(37.0)	%	(14.4)	%
Japanese prefectural and municipal bonds	319.8		310.0		(9.8)		177.0		166.5		(10.5)		(44.6)		(46.3)		(8.3)
Foreign government and official institution bonds	4,149.4		4,078.5		(70.9)		4,646.1		4,599.2		(46.9)		12.0		12.8		33.9
Corporate bonds	905.2		903.9		(1.3)		989.5		981.3		(8.2)		9.3		8.6		N/M
Mortgage-backed securities	1,121.8		1,122.0		0.2		1,015.9		1,017.0		1.1		(9.4)		(9.4)		192.5
Asset-backed securities	1,405.9		1,412.2		6.3		1,591.0		1,600.3		9.3		13.2		13.3		48.3
Other debt securities	502.4		502.6		0.2		352.0		353.5		1.5		(29.9)		(29.7)		N/M
Total available-for-sale debt securities	¥	30,718.6	¥	30,413.1	¥	(305.5)	¥	22,951.5	¥	22,634.3	¥	(317.2)	(25.3)	%	(25.6)	%	(3.8)	%
Held-to-maturity debt securities
Japanese national government and Japanese government agency bonds	¥	14,354.4	¥	13,959.2	¥	(395.2)	¥	16,590.0	¥	15,740.9	¥	(849.1)	15.6	%	12.8	%	(114.9)%
Japanese prefectural and municipal bonds	2,545.6		2,452.5		(93.1)		2,847.3		2,682.1		(165.2)		11.9		9.4		(77.4)
Corporate bonds	214.9		211.3		(3.6)		243.8		237.7		(6.1)		13.4		12.5		(68.3)
Mortgage-backed securities	4,690.3		4,553.0		(137.3)		4,488.2		4,388.5		(99.7)		(4.3)		(3.6)		27.4
Asset-backed securities	1,466.9		1,470.9		4.0		1,843.3		1,844.0		0.7		25.7		25.4		(81.6)
Total held-to-maturity debt securities	¥	23,272.2	¥	22,647.0	¥	(625.2)	¥	26,012.6	¥	24,893.2	¥	(1,119.4)	11.8	%	9.9	%	(79.0)	%

Net unrealized losses on available-for-sale debt securities increased 3.8% for the fiscal year ended March 31, 2026, compared to the previous fiscal year primarily due to increases in net unrealized losses on Japanese national government and Japanese government agency bonds. Net unrealized losses on Japanese national government and Japanese government agency bonds increased because their fair value declined as a result of rising interest rates in Japan. Net unrealized losses on available-for-sale foreign government and official institution bonds improved primarily as a result of an increase in their fair value due to the declines in interest rates overseas.

The amortized cost of available-for-sale debt securities decreased 25.3%, reflecting decreases in our holdings of Japanese national government and Japanese government agency bonds and Japanese prefectural and municipal bonds. The amortized cost of Japanese national government and Japanese government agency bonds decreased 36.5% and the amortized cost of Japanese prefectural and municipal bonds decreased 44.6% mainly as a result of the sale of these bonds as an asset and liability management measure in the rising interest rate environment in Japan.

The amortized cost of held-to-maturity debt securities increased 11.8% between March 31, 2025 and 2026 mainly due to the purchase of held-to-maturity debt securities, primarily long-term bonds, as an asset and liability management measure in the rising interest rate environment in Japan. The increase in net unrealized losses on Japanese national government and Japanese government agency bonds reflected the decline in the fair value of previously purchased bonds with lower coupons as a result of rising interest rates in Japan.

Equity Securities

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	As of March 31,
	2025		2026		% Change
	(in billions, except percentages)
Equity securities:
Marketable equity securities	¥	3,832.0	¥	4,250.0	10.9	%
Nonmarketable equity securities(1)	801.2		922.6		15.2
Total	¥	4,633.2	¥	5,172.6	11.6	%

Note:

(1)These securities are equity securities, including unlisted common stocks and preferred shares, issued by both listed companies and unlisted companies, and carried at cost, except for those held by certain subsidiaries subject to specialized industry accounting principles for investment companies and brokers and dealers, and measured at fair value, which are ¥100.8 billion and ¥143.5 billion at March 31, 2025 and March 31, 2026, respectively.

Equity securities increased 11.6% mainly because the fair value of marketable equity securities increased due to the rise in Japanese stock prices at the end of March 2026 compared to the end of March 2025, partially offset by sales of such securities during the fiscal year ended March 31, 2026. Marketable equity securities largely consist of listed equity securities in Japan.

Cash and Due from Banks, and Interest-earning Deposits in Other Banks

Cash and due from banks decreased ¥224.4 billion to ¥4,366.8 billion as of March 31, 2026 from ¥4,591.2 billion as of March 31, 2025. This decrease was primarily due to a decrease in cash on hand amid rising market interest rates.

Interest-earning deposits in other banks decreased ¥18,703.8 billion to ¥86,003.1 billion as of March 31, 2026 from ¥104,706.9 billion as of March 31, 2025. This decrease was mainly because of a decrease in domestic interest-earning deposits.

Receivables under Resale Agreements

Receivables under resale agreements decreased ¥1,896.7 billion to ¥16,885.0 billion as of March 31, 2026 from ¥18,781.7 billion as of March 31, 2025. This decrease was mainly because of a decrease in short-term funding transactions as part of our asset and liability management.

Receivables under Securities Borrowing Transactions

Receivables under securities borrowing transactions decreased ¥207.5 billion to ¥5,493.1 billion as of March 31, 2026 from ¥5,700.6 billion as of March 31, 2025. This decrease was mainly due to decreases in collateral deposited for funding in our securities subsidiaries.

Trading Account Assets

Trading account assets increased ¥24,504.8 billion to ¥83,921.9 billion as of March 31, 2026 from ¥59,417.1 billion as of March 31, 2025. Trading account assets mainly consist of trading account securities and trading derivative assets. Trading account securities increased ¥6,320.5 billion to ¥44,975.3 billion as of March 31, 2026 from ¥38,654.8 billion as of March 31, 2025 mainly due to an increase in our trading securities portfolio denominated in foreign currencies. Trading derivative assets increased ¥18,183.7 billion to ¥38,917.6 billion as of March 31, 2026 from ¥20,733.9 billion as of March 31, 2025 mainly due to an increase in interest rate derivative assets.

Total Liabilities

As of March 31, 2026, total liabilities were ¥404,741.6 billion, an increase of ¥18,051.1 billion from ¥386,690.5 billion as of March 31, 2025. This was primarily due to a ¥19,601.8 billion increase in trading account liabilities, a ¥11,340.3 billion increase in total deposits and a ¥3,475.0 billion increase in other liabilities, partially offset by a ¥13,763.3 billion decrease in due to trust account and other short-term borrowings.

Deposits

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Deposits are our primary source of funds. The total balance of deposits increased ¥11,340.3 billion to ¥260,755.3 billion as of March 31, 2026 from ¥249,415.0 billion as of March 31, 2025. The increase was mainly attributable to increases in domestic and overseas interest-bearing deposits.

The total average balance of interest-bearing deposits increased ¥5,290.7 billion to ¥216,892.7 billion for the fiscal year ended March 31, 2026 from ¥211,602.0 billion for the fiscal year ended March 31, 2025. The increase was mainly due to increases in domestic and overseas interest-bearing deposits.

Payables under Repurchase Agreements

Payables under repurchase agreements decreased ¥4,147.7 billion to ¥39,516.1 billion as of March 31, 2026 from ¥43,663.8 billion as of March 31, 2025. This decrease was mainly because of a decrease in our short-term funding needs.

Other Short-Term Borrowings

Other short-term borrowings decreased ¥11,777.0 billion to ¥12,859.9 billion as of March 31, 2026 from ¥24,636.9 billion as of March 31, 2025. This decrease was mainly due to a decrease in borrowings from the Bank of Japan.

Trading Account Liabilities

Trading account liabilities increased ¥19,601.8 billion to ¥41,104.7 billion as of March 31, 2026 from ¥21,502.9 billion as of March 31, 2025. This increase was mainly due to an increase in interest rate derivative liabilities in our commercial banking subsidiaries.

Long-term Debt

Long-term debt increased ¥861.9 billion to ¥21,884.3 billion as of March 31, 2026 from ¥21,022.4 billion as of March 31, 2025. This increase was mainly due to an increase in the outstanding bonds issued by MUFG.

The average balance of long-term debt for the fiscal year ended March 31, 2026 was ¥20,559.1 billion, a decrease of ¥8,438.5 billion from ¥28,997.6 billion for the previous fiscal year.

Other Liabilities

Other liabilities increased by ¥3,475.0 billion to ¥19,887.8 billion as of March 31, 2026 from ¥16,412.8 billion as of March 31, 2025. This increase was primarily attributable to an increase in obligations to return securities received as collateral and an increase in accrued and other liabilities.

Sources of Funding and Liquidity

Our primary source of liquidity is from a large balance of deposits, mainly ordinary deposits, certificates of deposit and time deposits. Time deposits have historically shown a high rollover rate among our corporate customers and individual depositors. The average deposit balance increased to ¥251,739.0 billion for the fiscal year ended March 31, 2026 from ¥249,398.9 billion for the fiscal year ended March 31, 2025. These deposits provide us with a sizable source of stable and low-cost funds. Our average deposits combined with our average total equity of ¥20,289.3 billion, funded 62.5% of our average total assets of ¥435,345.7 billion during the fiscal year ended March 31, 2026. Our deposits exceeded our loans before allowance for credit losses by ¥115,936.1 billion as of March 31, 2026 compared to ¥117,976.5 billion as of March 31, 2025. As part of our asset and liability management policy, a significant portion of the amount of Japanese yen-denominated funds exceeding our loans has been deposited with the Bank of Japan or invested in Japanese government bonds in recent periods.

The remaining funding was primarily provided by short-term borrowings and long-term senior and subordinated debt. Short-term borrowings consist of call money, funds purchased, payables under repurchase agreements, payables under securities lending transactions, due to trust account, and other short-term borrowings. From time to time, we have issued long-term instruments, including various fixed and floating interest rate senior and subordinated bonds with and without maturities. The average balance of short-term borrowings for the fiscal year ended March 31, 2026 was ¥63,985.3 billion. The average balance of long-term debt for the fiscal year ended March 31, 2026 was ¥20,559.1 billion. Liquidity may also be provided by the sale of financial assets, including available-for-sale debt securities, marketable equity securities, trading account securities and loans. Additional liquidity may be provided by the maturity of loans.

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Our liquidity may be impaired by factors such as an inability to raise funding in financial markets, an increase in our funding costs, unexpected increases in cash or collateral requirements, an inability to sell assets or enter into or settle other transactions as planned or needed, and an inability to attract or retain deposits. See “Item 3.D. Key Information—Risk Factors—Funding Liquidity Risk—Deterioration in market liquidity or other external circumstances or an actual or perceived decline in our creditworthiness could negatively affect our ability to access and maintain liquidity.”

We manage our group-wide liquidity on a consolidated basis based on the tests and analyses conducted at the subsidiary level. Our major banking subsidiaries, MUFG Bank and Mitsubishi UFJ Trust and Banking, set liquidity and funding limits designed to maintain their respective requirements for funding from market sources below pre-determined levels for certain periods (e.g., one-day, two-week and one-month). They also monitor the balance of buffer assets they respectively hold, including Japanese government bonds and U.S. Treasury bonds, which can be used for cash funding even in periods of stress. In addition, they regularly perform liquidity stress testing designed to evaluate the impact of systemic market stress conditions and institution-specific stress events, including credit rating downgrades, on their liquidity positions.

We collect and evaluate the results of the stress tests individually performed by our major subsidiaries to ensure our ability to meet our liquidity requirements on a consolidated basis in stress scenarios.

We manage our funding sources by setting limits on, or targets for, our holdings of buffer assets, primarily Japanese government bonds. We also regard deposits with the Bank of Japan as buffer assets. In addition, our commercial banking subsidiaries manage their funding sources through liquidity-supplying products such as commitment lines and through a liquidity gap, or the excess of cash inflows over cash outflows.

For information on our commitments, guarantees and other off-balance sheet credit instruments, please see Note 24 to our consolidated financial statements.

Liquidity Requirements for Banking Institutions in Japan

We are required to calculate and disclose our LCR calculated in accordance with the methodology prescribed in the FSA guidance that has been adopted to implement the relevant Basel III standard. Starting in calendar year 2019, we are required to maintain a minimum LCR of 100%. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Liquidity Coverage Ratio” and “—Capital Adequacy—Liquidity Coverage Ratios of MUFG and Major Banking Subsidiaries in Japan” below.

Stable Funding Requirements for Banking Institutions in Japan

We are required to calculate and disclose our NSFR calculated in accordance with the methodology prescribed in the FSA guidance that has been adopted to implement the relevant Basel III standard. Starting in September 2021, we are required to maintain a minimum NSFR of 100%. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Net Stable Funding Ratio” and “—Capital Adequacy—Net Stable Funding Ratios of MUFG and Major Banking Subsidiaries in Japan” below.

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Total Equity


	As of March 31,
		2025			2026			% Change
		(in billions, except percentages)
Capital stock		¥	2,090.3		¥	2,090.3		—	%
Capital surplus		4,300.0			4,014.5			(6.6)
Retained earnings		10,060.9			10,943.0			8.8
Retained earnings appropriated for legal reserve		239.6			239.6			—
Unappropriated retained earnings		9,821.3			10,703.4			9.0
Accumulated other comprehensive income, net of taxes		2,561.2			3,460.5			35.1
Treasury stock, at cost		(726.9)			(935.2)			(28.6)
Total Mitsubishi UFJ Financial Group shareholders’ equity		¥	18,285.5		¥	19,573.1		7.0
Noncontrolling interests		964.2			1,267.0			31.4
Total equity		¥	19,249.7		¥	20,840.1		8.3	%
Ratio of total equity to total assets		4.74		%	4.90		%

Capital Adequacy

We are subject to various regulatory capital requirements promulgated by the regulatory authorities of the countries in which we operate. Failure to meet minimum capital requirements can result in mandatory actions being taken by regulators that could have a direct material effect on our consolidated financial statements. Moreover, if our capital ratios are perceived to be low, our counterparties may avoid entering into transactions with us, which in turn could negatively affect our business and operations. For further information, see “Item 3.D. Key Information—Risk Factors—Risks Related to Our Ability to Meet Regulatory Capital Requirements—We may not be able to maintain our capital ratios and other regulatory ratios above minimum required levels, which could result in various regulatory actions, including the suspension of some or all of our operations.”

We continually monitor our risk-adjusted capital ratios, leverage ratio and TLAC ratios closely, and manage our operations in consideration of the capital requirements. Factors that affect some or all of these ratios include fluctuations in the value of our assets, including our credit risk assets such as loans and equity securities, the risk weights of which depend on the borrowers’ or issuers’ internal ratings, and marketable securities, and fluctuations in the value of the Japanese yen against the U.S. dollar and other foreign currencies, as well as general price levels of Japanese equity securities.

Capital Requirements for Banking Institutions in Japan

Under Japanese regulatory capital requirements, our consolidated capital components, including Common Equity Tier 1, Tier 1, and Tier 2 capital and risk-weighted assets, are calculated based on our consolidated financial statements prepared under Japanese GAAP. Each of the consolidated and stand-alone capital components and risk-weighted assets of our banking subsidiaries in Japan is also calculated based on consolidated and non-consolidated financial statements prepared under Japanese GAAP.

As of March 31, 2026, we were required to maintain a minimum Common Equity Tier 1 capital ratio of 8.68% consisting of the minimum requirement at 4.5% plus a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.18% (compared to the countercyclical buffer of 0.16% required as of March 31, 2025). See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Capital adequacy.”

For information on the issuances of Additional Tier 1 and Tier 2 securities, see also “—Recent Developments—Issuances of Basel III-Compliant Subordinated Debt.”

Leverage Requirements for Banking Institutions in Japan

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Our consolidated leverage ratio is calculated in accordance with the methodology prescribed in the FSA guidance that has been adopted to implement the relevant Basel III standard. The leverage ratio is designed for monitoring and preventing the build-up of excessive leverage in the banking sector and is expressed as the ratio of Tier 1 capital to total balance sheet assets adjusted in accordance with the FSA guidance. As of March 31, 2025 and 2026, we were required to maintain a minimum leverage ratio of 3.95% consisting of the minimum requirement at 3.15% plus a leverage ratio buffer equal to 50% of the G-SIB surcharge plus 0.05%, while deposits with the Bank of Japan remain excluded from the leverage ratio calculation. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Leverage ratio.”

TLAC Requirements for Banking Institutions in Japan

Our External TLAC ratios are calculated in accordance with the methodology prescribed in the FSA guidance that has been adopted to implement the TLAC Principle published by the FSB in November 2015. External TLAC ratios are expressed as the ratio of external TLAC amount to risk-weighted assets or total exposure in accordance with the FSA guidance. As of March 31, 2025 and 2026, we were required to maintain External TLAC ratios of 18% on a risk-weighted assets basis and 7.10% on a total exposure basis, while deposits with Bank of Japan remain excluded from the calculation of External TLAC ratios on a total exposure basis. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Total loss-absorbing capacity.” For information on the issuances of TLAC-qualified securities, see also “—Recent Developments—Issuances of TLAC Eligible Senior Debt.”

Capital Ratios, Leverage Ratio and External TLAC Ratios of MUFG

The figures underlying the amounts and ratios in the table below are calculated in accordance with Japanese banking regulations based on information derived from our consolidated financial statements prepared in accordance with Japanese GAAP, as required by the FSA. The amounts and ratios below are rounded down.

Starting from the fiscal year ended March 31, 2025, the fiscal year of Krungsri has been changed from the previous January to December period to an April to March period for consolidation purposes. In connection with the change, the amount of retained earnings under Japanese GAAP which is included in MUFG's Common Equity Tier 1 capital component as of March 31, 2025, reflects Krungsri's relevant amount for the fifteen months ended March 31, 2025.


	As of March 31, 2025			Minimum ratios required(1)		As of March 31, 2026			Minimum ratios required(1)
	(in billions, except percentages)
Capital components:
Common Equity Tier 1	¥	15,169.2				¥	15,002.2
Additional Tier 1	2,635.6					2,981.7
Tier 1 capital	17,804.8					17,984.0
Tier 2 capital	2,340.1					2,289.5
Total capital	¥	20,145.0				¥	20,273.6
Risk-weighted assets	¥	106,930.4				¥	120,281.7
Capital ratios:
Common Equity Tier 1 capital	14.18		%	8.66	%	12.47		%	8.68	%
Tier 1 capital	16.65		%	10.16	%	14.95		%	10.18	%
Total capital	18.83		%	12.16	%	16.85		%	12.18	%
Leverage ratio(2)	5.29		%	3.95	%	4.94		%	3.95	%
External TLAC ratios
Risk-weighted assets basis(3)	24.64		%	18.00	%	23.25		%	18.00	%
Total exposure basis	9.16		%	7.10	%	9.06		%	7.10	%

Notes:

(1)The minimum capital ratios required as of March 31, 2025 include a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.16%. The minimum capital ratios required as of March 31, 2026 include a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.18%.

(2)Deposits with the Bank of Japan are excluded from the leverage exposure based on notification issued by the FSA.

(3)The External TLAC ratio on a risk-weighted assets basis and the required minimum ratio as of March 31, 2025 do not include the regulatory capital buffers consisting of a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.16%. The External TLAC ratio on a risk-weighted

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assets basis and the required minimum ratio as of March 31, 2026 do not include the regulatory capital buffers consisting of a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% and a countercyclical buffer of 0.18%.

Management believes that, as of March 31, 2026, we were in compliance with all capital adequacy requirements to which we were subject.

Our Common Equity Tier 1 capital ratio as of March 31, 2026 was lower compared to the ratio as of March 31, 2025 primarily due to an increase in risk-weighted assets. The increase in risk-weighted assets was mainly driven by the expansion of our loan portfolio. The decrease in the ratio also reflected the impact of our investment in Shriram Finance. See “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation—Japan—Capital adequacy.”

Capital Ratios and Leverage Ratios of Major Banking Subsidiaries in Japan

The figures underlying the ratios in the table below are calculated in accordance with Japanese banking regulations based on information derived from each bank’s consolidated and non-consolidated financial statements prepared in accordance with Japanese GAAP, as required by the FSA. The ratios below are rounded down.

Starting from the fiscal year ended March 31, 2025, the fiscal year of Krungsri has been changed from the previous January to December period to an April to March period for consolidation purposes. In connection with the change, the amount of retained earnings under Japanese GAAP which is included in MUFG Bank's Common Equity Tier 1 capital component as of March 31, 2025, reflects Krungsri's relevant amount for the fifteen months ended March 31, 2025.


	As of March 31, 2025		Minimum ratios required		As of March 31, 2026		Minimum ratios required
Consolidated:
MUFG Bank
Common Equity Tier 1 capital ratio	15.10	%	4.50	%	13.87	%	4.50	%
Tier 1 capital ratio	17.68	%	6.00	%	16.42	%	6.00	%
Total capital ratio	19.63	%	8.00	%	18.02	%	8.00	%
Leverage ratio(1)	5.45	%	3.15	%	5.25	%	3.15	%
Mitsubishi UFJ Trust and Banking
Common Equity Tier 1 capital ratio	13.56	%	4.50	%	12.84	%	4.50	%
Tier 1 capital ratio	16.41	%	6.00	%	15.55	%	6.00	%
Total capital ratio	19.96	%	8.00	%	19.40	%	8.00	%
Leverage ratio(1)	5.90	%	3.15	%	5.83	%	3.15	%
Stand-alone:
MUFG Bank
Common Equity Tier 1 capital ratio	12.30	%	4.50	%	10.06	%	4.50	%
Tier 1 capital ratio	15.24	%	6.00	%	12.95	%	6.00	%
Total capital ratio	17.07	%	8.00	%	14.34	%	8.00	%
Leverage ratio(1)	4.51	%	3.15	%	4.21	%	3.15	%
Mitsubishi UFJ Trust and Banking
Common Equity Tier 1 capital ratio	14.35	%	4.50	%	12.56	%	4.50	%
Tier 1 capital ratio	16.89	%	6.00	%	14.91	%	6.00	%
Total capital ratio	20.06	%	8.00	%	18.26	%	8.00	%
Leverage ratio(1)	7.21	%	3.15	%	6.82	%	3.15	%

Note:

(1)Deposits with the Bank of Japan are excluded from the leverage exposure based on notification issued by the FSA.

Management believes that, as of March 31, 2026, our banking subsidiaries were in compliance with all capital adequacy requirements to which they were subject.

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Liquidity Coverage Ratios of MUFG and Major Banking Subsidiaries in Japan

The LCRs in the table below are calculated in accordance with Basel III as adopted by the FSA for the periods indicated. The figures underlying the ratios are calculated in accordance with Japanese banking regulations. The percentages below are rounded down.


	Three months ended
	March 31, 2025(1),(6)		June 30, 2025(2),(6)		September 30, 2025(3),(6)		December 31, 2025(4),(6)		March 31, 2026(5),(6)
MUFG (consolidated)	163.8	%	161.8	%	160.8	%	154.3	%	146.5	%
MUFG Bank (consolidated)	174.5	%	170.6	%	171.5	%	163.1	%	155.7	%
MUFG Bank (stand-alone)	182.6	%	180.0	%	181.4	%	170.8	%	161.6	%
Mitsubishi UFJ Trust and Banking (consolidated)	124.0	%	122.8	%	123.6	%	128.3	%	122.0	%
Mitsubishi UFJ Trust and Banking (stand-alone)	145.2	%	141.5	%	142.2	%	150.6	%	139.2	%

Notes:

(1)Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between January 6, 2025 and March 31, 2024 divided by the average amount of net cash outflows for the same 57 business days.

(2)Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between April 1, 2025 and June 30, 2025 divided by the average amount of net cash outflows for the same 62 business days.

(3)Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between July 1, 2025 and September 30, 2025 divided by the average amount of net cash outflows for the same 62 business days.

(4)Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between October 1, 2025 and December 30, 2025 divided by the average amount of net cash outflows for the same 62 business days.

(5)Each of the ratios is calculated as the average balance of High-Quality Liquid Assets on the business days between January 5, 2026 and March 31, 2026 divided by the average amount of net cash outflows for the same 58 business days.

(6)The LCR is to be calculated as an average based on daily values in accordance with the Japanese banking regulations.

See “—B. Liquidity and Capital Resources—Financial Condition—Sources of Funding and Liquidity.”

Net Stable Funding Ratios of MUFG and Major Banking Subsidiaries in Japan

The NSFRs in the table below are calculated in accordance with Basel III as adopted by the FSA as of the dates indicated. The figures underlying the ratios are calculated in accordance with Japanese banking regulations. The percentages below are rounded down.


	As of March 31, 2025		As of June 30, 2025		As of September 30, 2025		As of December 31, 2025		As of March 31, 2026
MUFG (consolidated)	120.9	%	119.7	%	115.0	%	108.3	%	118.7	%
MUFG Bank (consolidated)	127.0	%	126.4	%	123.5	%	117.2	%	120.2	%
MUFG Bank (stand-alone)	127.5	%	126.9	%	124.6	%	117.7	%	124.0	%
Mitsubishi UFJ Trust and Banking (consolidated)	127.7	%	125.5	%	124.6	%	121.0	%	115.3	%
Mitsubishi UFJ Trust and Banking (stand-alone)	127.3	%	123.0	%	122.8	%	117.9	%	113.7	%

See “—B. Liquidity and Capital Resources—Sources of Funding and Liquidity.”

Capital Requirements for Securities Firms in Japan and Overseas

We have securities subsidiaries in Japan and overseas, which are also subject to regulatory capital requirements. In Japan, the Financial Instruments and Exchange Act of Japan and related ordinances require financial instruments firms to maintain a minimum capital ratio of 120% calculated as a percentage of capital accounts less certain fixed assets, as determined in accordance with Japanese GAAP, against amounts equivalent to market, counterparty credit and operational risks. Specific guidelines are issued as a ministerial ordinance which details the definitions of essential components of the capital ratios, including capital, deductible fixed asset items and risks, and related measures. Failure to maintain a minimum capital ratio will trigger mandatory regulatory actions. A capital ratio of less than 140% will call for additional regulatory reporting, a capital ratio of less than 120% may result in an order to change the method of business, and a capital ratio of less than 100% may lead to a suspension of all or part of the business for a period of time and cancellation of a registration. Overseas securities subsidiaries are subject to the relevant regulatory capital requirements of the countries or jurisdictions in which they operate.

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Capital Ratio of Mitsubishi UFJ Morgan Stanley Securities

As of March 31, 2026, on a stand-alone basis, Mitsubishi UFJ Morgan Stanley Securities’ capital accounts less certain fixed assets of ¥593.5 billion represented 292.1% of the total amounts equivalent to market, counterparty credit and operational risks. As of the same date, on a consolidated basis, Mitsubishi UFJ Morgan Stanley Securities’ capital accounts less certain fixed assets of ¥596.3 billion represented 290.3% of the total amounts equivalent to market, counterparty credit and operational risks. As of March 31, 2025, on a stand-alone basis, Mitsubishi UFJ Morgan Stanley Securities’ capital accounts less certain fixed assets of ¥ 564.2 billion represented 300.7% of the total amounts equivalent to market, counterparty credit and operational risks. As of the same date, on a consolidated basis, Mitsubishi UFJ Morgan Stanley Securities’ capital accounts less certain fixed assets of ¥564.3 billion represented 300.7% of the total amounts equivalent to market, counterparty credit and operational risks. These figures are calculated in accordance with Japanese GAAP, pursuant to the Financial Instruments and Exchange Act of Japan.

For further information, see Note 21 to our consolidated financial statements.

Non-exchange Traded Contracts Accounted for at Fair Value

The use of non-exchange traded or over-the-counter contracts provides us with the ability to adapt to the varied requirements of a wide customer base while mitigating market risks. Non-exchange traded contracts are accounted for at fair value, which is generally based on pricing models or quoted prices for instruments with similar characteristics. Gains or losses on non-exchange traded contracts are included in “Trading account profits (losses)—net” in our consolidated statements of income.


	Fiscal years ended March 31,
	2025		2026
	(in millions)
Net fair value of contracts outstanding at beginning of fiscal year	¥	294	¥	562
Changes attributable to contracts realized or otherwise settled during the fiscal year	88		(347)
Fair value of new contracts entered into during the fiscal year	332		—
Changes in fair values attributable to changes in valuation techniques and assumptions	31		47
Other changes in fair value, principally revaluation at end of fiscal year	(183)		(82)
Net fair value of contracts outstanding at end of fiscal year	¥	562	¥	180

Maturities of Non-exchange Traded Contracts


	As of March 31, 2026
	Net fair value of contracts—unrealized gains
	Prices provided by other external sources		Prices based on models and other valuation methods
	(in millions)
Maturity less than 1 year	¥	—	¥	—
Maturity less than 3 years	—		180
Maturity less than 5 years	—		—
Maturity 5 years or more	—		—
Total fair value	¥	—	¥	180

C.Research and Development, Patents and Licenses, etc.

Not applicable.

D.Trend Information

See the discussions in “—Business Environment,” “—Recent Developments,” “—A. Operating Results” and “—B. Liquidity and Capital Resources.”

E.Critical Accounting Estimates

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Our consolidated financial statements are prepared in accordance with U.S. GAAP. Certain accounting policies require management to make difficult, complex or subjective judgments regarding the valuation of assets and liabilities. The accounting policies are fundamental to understanding our operating and financial review and prospects. The notes to our consolidated financial statements provide a summary of our significant accounting policies. The following is a summary of the critical accounting estimates:

Allowance for Credit Losses

The allowance for credit losses represents an estimate of the credit losses that are expected over the life of the financial instrument or exposure and has three components: the allowance for loans measured on a collective basis, when similar risk characteristics exist, the allowance for loans measured on an individual basis, for loans that do not share similar risk characteristics, and the allowance for losses on unfunded credit commitments, which is included in other liabilities.

The methodology for estimating credit losses uses relevant available information relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made over a forecast period to account for differences between current and expected future conditions and those reflected in historical loss information. Beyond the forecast period, estimated expected credit losses revert to average historical loss experience. The estimation of the allowance for credit losses involves significant judgment on a number of assumptions including the assessment of risk characteristics, assignment of a borrower’s internal credit rating, valuation of collateral, expectations of future economic conditions and the development of qualitative adjustments. We divide our loan portfolio into the following segments—Commercial, Residential, Card, Krungsri, and Other—and determine the allowance for credit losses for each segment.

On March 31, 2026, we had ¥119,864.7 billion and ¥9,844.8 billion of loans in the Commercial and Krungsri segments, respectively, and recorded an allowance for credit losses against these loans of ¥567.6 billion and ¥477.2 billion, respectively.

The allowance for credit losses is estimated using quantitative models that incorporate economic forecast scenarios. These economic forecast scenarios include macroeconomic variables that have historically been correlated with historical credit losses. These variables include, but are not limited to, unemployment rate and gross domestic product. As any one economic forecast scenario is inherently uncertain, multiple economic forecast scenarios were leveraged. The macroeconomic variables in multiple economic forecast scenarios and weightings given to each scenario depend on a variety of factors including recent economic conditions and views of internal as well as third-party economists.

The determination of the allowance for credit losses for the Commercial and Krungsri segments required management to make significant judgments due to the subjectivity and uncertainty associated with expectations of future economic conditions. Particularly significant judgment was required to be made to determine certain macroeconomic variables in the multiple economic forecast scenarios and the weightings given to each scenario, to capture the heightened volatility and uncertainty primarily due to changes in global economic conditions, inflation, monetary and trade policies, and geopolitical situations.

The allowance for credit losses includes qualitative adjustments to cover losses that are expected but were not reflected in the modeled allowance. The determination of the allowance for credit losses for the Krungsri segment required management to make significant judgments due to the subjectivity and uncertainty associated with the development of qualitative adjustments. Particularly significant judgment was required to be made to develop certain qualitative adjustments to capture the effects on modeled expected credit losses primarily arising from inflation and temporary relief measures for the Krungsri segment.

The determination of the allowance for credit losses for the Commercial segment required management to make significant judgments, due to the subjectivity and uncertainty associated with the determination of a borrower’s internal credit rating, which were highly dependent on the estimation of a borrower’s performance and business sustainability, particularly in cases in which borrowers were experiencing weaknesses in their business performance. Particularly significant judgment was required to be made when these borrowers’ performance and business sustainability were affected by changes in the external and internal business environment, including changes in global economic conditions, inflation, monetary and trade policies, and geopolitical situations. Key elements relating to the policies and discipline used in determining the allowance for credit losses for the Commercial segment are our credit classification and the related borrower categorization process. Each of these components is determined based on estimates subject to change when actual events occur. The categorization is based on conditions that may affect the ability of borrowers to service their debt, taking into consideration current financial information, historical payment experience, credit documentation, public information, analyses of relevant industry segments and current trends. In determining the appropriate level of allowance, we evaluate the probable loss by category of the loan based on its type and characteristics.

Determining the adequacy of the allowance for credit losses requires the exercise of considerable judgment and the use of estimates, such as those discussed above. Our actual losses could be more or less than the estimates. To the extent that actual losses differ from management’s estimates, additional provisions for credit losses may be required that would adversely impact our operating results and financial condition in future periods. For further information regarding our methodologies used in establishing the

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allowance for credit losses by portfolio segment and allowance for credit losses policies, see Note 1 to our consolidated financial statements and “—B. Liquidity and Capital Resources—Financial Condition—Loan Portfolio.” For more information on our credit and borrower ratings, see “Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk—Credit Risk Management.”

Goodwill

As part of our global strategies, we have executed multiple large-scale acquisitions, investments and capital alliances, and recorded goodwill resulting from these business combinations. U.S. GAAP requires us to test goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired, using a process that compares the carrying amount of a reporting unit with its fair value. An impairment loss is recognized to the extent that the carrying amount of a reporting unit exceeds its fair value, but not exceeding the total amount of goodwill allocated to that reporting unit. A reporting unit is an operating segment or component of an operating segment that constitutes a business for which discrete financial information is available and is regularly reviewed by management. The fair value of a reporting unit is defined as the amount at which the unit as a whole could be bought or sold in a current transaction between willing parties. Our consolidated goodwill balance was ¥566.5 billion on March 31, 2026, which was allocated to our reporting units in the Retail & Digital Business Group, Global Corporate & Investment Banking Business Group, Global Commercial Banking Business Group, Asset Management & Investor Services Business Group and Global Markets Business Group. For a reporting unit for which an observable quoted price is not available, we determined the fair value of each reporting unit mainly using the income approach. The income approach determined the fair value of the reporting units by discounting management’s projections of each reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final year of projected results, using a discount rate derived from the capital asset pricing model.

The determination of the fair value of these reporting units requires management to make significant judgments related to significant assumptions due to the subjectivity and uncertainty associated with the assumptions. The significant assumptions included projected future operating cash flows based on forecasted future income in the income approach.

Valuation of Financial Instruments

We measure certain financial assets and liabilities at fair value. The majority of such assets and liabilities are measured at fair value on a recurring basis, including trading securities, trading derivatives and investment securities. In addition, certain other assets and liabilities are measured at fair value on a non-recurring basis, including held for sale loans which are carried at the lower of cost or fair value, collateral dependent loans and nonmarketable equity securities subject to impairment.

We have elected the fair value option for certain foreign securities classified as available-for-sale debt securities, whose unrealized gains and losses are reported in income, and marketable equity securities.

The guidance on the measurement of fair value defines fair value 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. We have an established and documented process for determining fair value in accordance with the guidance. To determine the fair value, we use quoted prices which include those provided from pricing vendors, where available. We generally obtain one price or quote per instrument and do not adjust it to determine the fair value of the instrument. We perform internal price verification procedures to ensure that the prices and quotes provided from the independent pricing vendors are reasonable. Such verification procedures include a comparison of pricing sources and analysis of variances among pricing sources. These verification procedures are periodically performed by independent risk management departments. For collateralized loan obligations, or CLOs, backed by general corporate loans, the fair value is determined by weighting the internal model valuation and the non-binding broker-dealer quotes. If quoted prices are not available to determine the fair value of derivatives, the fair value is based upon valuation techniques that use, where possible, current market-based or independently sourced parameters, such as interest rates, yield curves, foreign exchange rates, volatilities and credit curves. The fair values of trading liabilities are determined by discounting future cash flows at a rate which incorporates our own creditworthiness. In addition, valuation adjustments may be made to ensure that 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. Our financial models are validated and periodically reviewed by risk management departments independent of divisions that created the models.

For a further discussion of the valuation techniques applied to the material assets or liabilities, see Note 31 to our consolidated financial statements.

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Accounting Changes and Recently Issued Accounting Pronouncements

See “Accounting Changes” and “Recently Issued Accounting Pronouncements” in Note 1 to our consolidated financial statements.

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　Item 6. Directors, Senior Management and Employees.

A.Directors and Senior Management

Members of the Board of Directors

The following table sets forth the members of our board of directors as of June 26, 2026, together with their respective dates of birth, positions and experience:

Name

(Date of Birth)

Position in MUFG

Business Experience

Satoko Kuwabara*

(November 1, 1964)

*Reports under Section 16(a) of the U.S. Securities Exchange Act of 1934, as amended, are filed under the name of Satoko Ohta.

Member of the Board of Directors

(Outside Director)

April 1990

Registered as an attorney at law, Member of the Daini Tokyo Bar Association

Joined Mori Sogo (currently Mori Hamada & Matsumoto)

January 1998

Partner of Mori Hamada & Matsumoto

June 2016

Outside Director of Bandai Namco Holdings Inc.

March 2020

Outside Auditor of Unicafe Inc. (incumbent)

April 2020

Partner of Gaien Partners (incumbent)

June 2020

Outside Audit and Supervisory Board Member of Nippon Yusen Kabushiki Kaisha

June 2021

Member of the Board of Director (Outside Director) of MUFG (incumbent)

June 2023

Outside Director of Nippon Yusen Kabushiki Kaisha (incumbent)

Mari Elka Pangestu

(October 23, 1956)

Member of the Board of Directors

(Outside Director)

August 1986

Joined Centre for Strategic and International Studies Indonesia

July 1987

Research Coordinator, Program for Financial Policy and Training of Ministry of Finance, the Republic of Indonesia

Deputy Director of Inter University Center, Economics, University of Indonesia

November 1991

Program Coordinator for Trade Policy Forum, Pacific Economy Cooperation Council

January 1997

Executive Director of Centre for Strategic and International Studies Indonesia

October 2004

Minister of Trade of the Republic of Indonesia

October 2011

Minister of Tourism and Creative Economy of the Republic of Indonesia

March 2015

Professor of International Economics, University of Indonesia

March 2020

Managing Director of Development Policy and Partnerships, the World Bank

July 2023

Independent Non-executive Director of AIA Group Limited (incumbent)

June 2024

Member of the Board of Directors (Outside Director) of MUFG (incumbent)

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Name

(Date of Birth)

Position in MUFG

Business Experience

November 2024

Vice Chairperson of National Economic Council (DEN), Republic of Indonesia (incumbent)

Hiroshi Shimizu

(January 30, 1961)

Member of the Board of Directors

(Outside Director)

April 1983

Joined Nippon Life Insurance Company

March 2009

Executive Officer, General Manager, Corporate Planning Department of Nippon Life Insurance Company

March 2012

Managing Executive Officer, General Manager, Corporate Planning Department of Nippon Life Insurance Company

July 2013

Director and Managing Executive Officer of Nippon Life Insurance Company

March 2014

Director and Managing Executive Officer, General Manager, Head Office 1st Corporate Marketing Dept., Head Office 3rd Corporate Marketing Dept., Head Office East Japan Corporate Marketing Dept. of Nippon Life Insurance Company

July 2014

Managing Executive Officer of Nippon Life Insurance Company

March 2016

Senior Managing Executive Officer of Nippon Life Insurance Company

July 2016

Director and Senior Managing Executive Officer of Nippon Life Insurance Company

April 2018

President of Nippon Life Insurance Company

June 2021

Outside Director of FUJI KYUKO CO., LTD. (incumbent)

Director of TOKYU CORPORATION (incumbent)

June 2024

Member of the Board of Directors (Outside Director) of MUFG (incumbent)

April 2025

Chairman of Nippon Life Insurance Company (incumbent)

David Sneider
(July 25, 1957)

Member of the Board of Directors

(Outside Director)

December 1984

Associate of Paul, Weiss, Rifkind, Wharton & Garrison LLP

June 1985

Registered as an attorney at law, admitted in States of New York in the United States

July 1987

Director and Counsel of Legal Department, Salomon Brothers Inc.

February 1992

Associate of Simpson Thacher & Bartlett LLP

January 1994

Partner of Simpson Thacher & Bartlett LLP

June 2022

Outside Director of PHC Holdings Corporation (incumbent)

June 2023

Member of the Board of Directors (Outside Director) of MUFG (incumbent)

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Name

(Date of Birth)

Position in MUFG

Business Experience

Miyuki Suzuki

(August 3, 1960)

Member of the Board of Directors

(Outside Director)

September 1982

Joined Reuters (London, UK)

January 1997

Managing Director, Reuters South East Asia (Singapore)

April 1998

Managing Director, Brokat Asia Pte Ltd (Singapore)

January 2001

Founder and Chief Executive Officer, CAZH Pte Ltd (Singapore)

March 2002

Executive Vice President and Head, Consumer Business, Japan Telecom Co. Ltd,

June 2004

CEO Asia Pacific for LexisNexis, based in Tokyo Japan

January 2007

President and CEO of KVH Co Ltd

March 2011

Vice-Chairman of KVH Co Ltd

December 2011

Chief Executive Officer and Representative Director, Jetstar Japan Co., Ltd.

May 2015

President and General Manager, Cisco Systems Japan

January 2018

President Asia-Pacific, Japan and China, Cisco Systems

August 2022

Non-executive director of Twilio Inc. (incumbent)

February 2025

Non executive director of SanDisk Corporation (incumbent)

June 2025

Member of the Board of Directors (Outside Director) of MUFG (incumbent)

Koichi Tsuji
(April 10, 1957)

Member of the Board of Directors

(Outside Director)

October 1984

Joined Peat Marwick Mitchell & Company

September 1988

Registered as Certified Public Accountant in Japan

February 1989

Resident Representative, Zurich, Switzerland

July 2004

Senior Partner of Ernst & Young ShinNihon LLC

February 2016

Chairman and CEO of Ernst & Young ShinNihon LLC

July 2019

Chairman & CEO of EY Japan Godo Kaisha

Member of the Board of Directors of EY Japan Co., Ltd.

June 2021

Member of the Board of Directors (Outside Director) of MUFG (incumbent)

June 2023

Outside Statutory Auditor of TEIJIN LIMITED

Outside Director of MARUICHI STEEL TUBE LTD. (incumbent)

June 2025

Independent Outside Director of TEIJIN LIMITED (incumbent)

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Name

(Date of Birth)

Position in MUFG

Business Experience

Teruhisa Ueda

(May 14, 1957)

Member of the Board of Directors

(Outside Director)

April 1982

Joined SHIMADZU CORPORATION

June 2007

Corporate Officer, Deputy General Manager, Analytical & Measuring Instruments Division of SHIMADZU CORPORATION

June 2011

Director, Member of the Board, General Manager, Analytical & Measuring Instruments Division of SHIMADZU CORPORATION

June 2013

Director, Member of the Board, Managing Executive Officer of SHIMADZU CORPORATION

June 2014

Director, Member of the Board, Senior Managing Executive Officer of SHIMADZU CORPORATION

June 2015

Representative Director, President & CEO of SHIMADZU CORPORATION

April 2022

Representative Director, Chairman of the Board of SHIMADZU CORPORATION (incumbent)

June 2025

Member of the Board of Directors (Outside Director) of MUFG (incumbent)

Kenichiro Yoshida
(October 20, 1959)

Member of the Board of Directors

(Outside Director)

April 1983

Joined Sony Corporation (currently Sony Group Corporation)

June 1998

General Manager, CEO Strategy Office, Sony Corporation

July 2000

Joined Sony Communication Network Corporation (currently Sony Network Communications Inc.)

May 2001

Senior Vice President, Sony Communication Network Corporation

April 2005

President and Representative Director, Sony Communication Network Corporation

December 2013

EVP, CSO and Deputy CFO, Corporate Executive Officer, Sony Corporation

April 2014

EVP, CFO, Representative Corporate Executive Officer, Sony Corporation

June 2014

Director, Sony Corporation

April 2015

Executive Deputy President and CFO, Representative Corporate Executive Officer, Sony Corporation

April 2018

President and CEO, Representative Corporate Executive Officer, Sony Corporation

June 2020

Chairman, President and CEO, Representative Corporate Executive Officer, Sony Corporation

April 2021

Director, Chairman, President and CEO, Representative Corporate Executive Officer, Sony Group Corporation

April 2023

Director, Chairman and CEO, Representative Corporate Executive Officer, Sony Group Corporation

April 2025

Director and Executive Chairman, Representative Corporate Executive Officer, Sony Group Corporation

November 2025

Member of J.P. Morgan International Council (incumbent)

April 2026

Director and Executive Chairman, Sony Group Corporation

June 2026

Executive Chairman, Sony Group Corporation (incumbent)

Member of the Board of Directors (Outside Director) of MUFG (incumbent)

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Name

(Date of Birth)

Position in MUFG

Business Experience

Takayuki Yasuda

(June 19, 1963)

Member of the Board of Directors

April 1987

Joined The Mitsubishi Trust and Banking Corporation

June 2013

Executive Officer of TB

February 2015

Executive Officer of MUFG

June 2017

Managing Executive Officer of TB

April 2021

Director and Senior Managing Executive Officer of TB

Senior Managing Corporate Executive of MUFG

April 2023

Director, Deputy President, and Executive Officer of TB

April 2024

Managing Executive Officer of MUFG

June 2025

Member of the Board of Directors of MUFG (incumbent)

Norio Kanie
(October 19, 1970)

Member of the Board of Directors

April 1994

Joined The Sanwa Bank, Limited

June 2021

Executive Officer of BK

Executive Officer of MUFG

April 2023

Executive Officer of SCHD

April 2025

Managing Executive Officer of BK

Managing Executive Officer of MUFG

June 2026

Member of the Board of Directors of MUFG (incumbent)

Hironori Kamezawa

(November 18, 1961)

Member of the Board of Directors

Chairman

(Corporate Executive)

April 1986

Joined The Mitsubishi Bank, Limited

June 2010

Executive Officer of BK

Executive Officer of MUFG

May 2014

Managing Executive Officer of BK

Managing Executive Officer of MUFG

May 2017

Managing Corporate Executive of MUFG

June 2017

Member of the Board of Directors, Managing Executive Officer of BK

May 2018

Member of the Board of Directors, Senior Managing Executive Officer of BK

Senior Managing Corporate Executive of MUFG

December 2018

CEO and Representative of the Board of Directors of Global Open Network, Inc.

April 2019

Deputy President of MUFG

Member of the Board of Directors, Deputy President of BK

CEO and Representative of the Board of Directors of Global Open Network Japan, Inc.

June 2019

Member of the Board of Directors, Deputy President of MUFG

August 2019

Chairman of Global Open Network Japan, Inc.

April 2020

Member of the Board of Directors of BK

Member of the Board of Directors, President & Group CEO of MUFG

May 2021

Director of Morgan Stanley (incumbent)

April 2026

Member of the Board of Directors, Chairman of MUFG (incumbent)

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Name

(Date of Birth)

Position in MUFG

Business Experience

Junichi Hanzawa

(January 19, 1965)

Member of the Board of Directors

President & Group CEO

(Representative Corporate Executive)

April 1988

Joined The Mitsubishi Bank, Limited

June 2014

Executive Officer of BK

Executive Officer of MUFG

May 2018

Managing Executive Officer of BK

April 2019

Managing Corporate Executive of MUFG

June 2019

Member of the Board of Directors, Managing Executive Officer of BK

April 2021

President & CEO of BK

Deputy Chairman of MUFG

June 2021

Member of the Board of Directors, Deputy Chairman of MUFG

April 2022

Member of the Board of Directors of MUFG

April 2026

Member of the Board of Directors, President & Group CEO of MUFG (incumbent)

Member of the Board of Directors of BK (incumbent)

Hiroshi Kubota

(May 17, 1969)

Member of the Board of Directors

April 1992

Joined The Mitsubishi Trust and Banking Corporation

April 2018

Executive Officer of TB

Executive Officer of BK

April 2019

Executive Officer of MUFG

April 2022

Managing Executive Officer of TB

Managing Executive Officer of BK

April 2024

Director and Senior Managing Executive Officer of TB

Managing Executive Officer of MUFG

April 2025

President and CEO of TB (incumbent)

June 2025

Member of the Board of Directors of MUFG (incumbent)

Masakazu Osawa

(June 20, 1968)

Member of the Board of Directors

April 1991

Joined The Mitsubishi Bank, Limited

June 2017

Executive Officer of BK

Executive Officer of MUFG

April 2020

Managing Executive Officer of BK

Managing Corporate Executive of MUFG

June 2020

Member of the Board of Directors, Managing Executive Officer of BK

April 2023

Managing Executive Officer of BK

Managing Executive Officer of MUFG

April 2025

Senior Managing Executive Officer of BK

Senior Managing Corporate Executive (Representative Corporate Executive) of MUFG

June 2025

Member of the Board of Directors, Senior Managing Executive Officer of BK

April 2026

President & CEO of BK (incumbent)

Managing Executive Officer of MUFG

June 2026

Member of the Board of Directors of MUFG (incumbent)

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Name

(Date of Birth)

Position in MUFG

Business Experience

Hiroyuki Seki

(March 10, 1968)

Member of the Board of Directors

April 1990

Joined The Mitsubishi Bank, Limited

June 2016

Executive Officer of BK

Executive Officer of MUFG

April 2021

Managing Executive Officer of BK

Managing Executive Officer of MUFG

April 2022

Managing Corporate Executive of MUFG

June 2022

Member of the Board of Directors, Managing Executive Officer of BK

April 2024

Member of the Board of Directors, Senior Managing Executive Officer of BK

Senior Managing Corporate Executive of MUFG

April 2025

Member of the Board of Directors, Deputy President of BK

April 2026

President & CEO of SCHD (incumbent)

President & CEO of MUMSS (incumbent)

Managing Executive Officer of MUFG

June 2026

Member of the Board of Directors of MUFG (incumbent)


Notes:			The following abbreviations are used in the table above:
			“BK” refers to MUFG Bank, Ltd. or its former name The Bank of Tokyo-Mitsubishi UFJ, Ltd.
			“TB” refers to Mitsubishi UFJ Trust and Banking Corporation.
			“SCHD” refers to Mitsubishi UFJ Securities Holdings Co., Ltd.
			“MUMSS” refers to Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
			“MUAH” refers to MUFG Americas Holdings Corporation.

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Corporate Executives

The following table sets forth our corporate executives as of June 26, 2026, together with their respective dates of birth, positions and experience:

Name

(Date of Birth)

Position in MUFG

Business Experience

Hironori Kamezawa

(November 18, 1961)

See “Members of the Board of Directors” under this Item 6.A.

Yasushi Itagaki
(May 24, 1964)

Deputy Chairman

April 1987

Joined The Bank of Tokyo, Ltd.

June 2013

Executive Officer of BK

July 2013

Executive Officer of MUFG

May 2017

Managing Executive Officer of BK

October 2019

President & CEO of PT Bank Danamon Indonesia, Tbk.

April 2021

Senior Managing Corporate Executive of BK

April 2022

Deputy President of BK

April 2023

Senior Managing Corporate Executive of MUFG

June 2023

Member of the Board of Directors, Deputy President of BK

April 2026

Member of the Board of Directors, Deputy Chairman of BK (incumbent)

Deputy Chairman of MUFG (incumbent)

Junichi Hanzawa

(January 19, 1965)

See “Members of the Board of Directors” under this Item 6.A.

Fumitaka Nakahama

(July 28, 1966)

Senior Managing Corporate Executive

(Group Head, Global Corporate & Investment Banking Business Group)

December 2009

Joined The Bank of Tokyo-Mitsubishi UFJ, Ltd.

June 2018

Executive Officer of BK

Executive Officer of MUFG

April 2021

Managing Executive Officer of BK

Managing Executive Officer of MUFG

April 2022

Managing Corporate Executive of MUFG

June 2022

Member of the Board of Directors, Managing Executive Officer of BK

April 2024

Member of the Board of Directors, Senior Managing Executive Officer of BK

Senior Managing Corporate Executive of MUFG (incumbent)

April 2026

Member of the Board of Directors, Deputy President of BK (incumbent)

Takafumi Ihara

(May 18, 1967)

Senior Managing Corporate Executive

(Group Head, Asset Management & Investor Services Business Group)

April 1990

Joined The Mitsubishi Trust and Banking Corporation

June 2016

Executive Officer of TB

April 2018

Executive Officer of MUFG

April 2021

Managing Executive Officer of TB

April 2023

Senior Managing Executive Officer of TB

April 2024

Director and Senior Managing Executive Officer of TB

Senior Managing Corporate Executive of MUFG (incumbent)

April 2025

Director, Deputy President, and Executive Officer of TB (incumbent)

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Name

(Date of Birth)

Position in MUFG

Business Experience

Jun Togawa

(July 3, 1967)

Senior Managing Corporate Executive

(Representative Corporate Executive)

(Group Chief Financial Officer, or Group CFO)

April 1990

Joined The Mitsubishi Trust and Banking Corporation

June 2016

Executive Officer of TB

Executive Officer of BK

Executive Officer of MUFG

April 2020

Managing Executive Officer of TB

Managing Executive Officer of BK

April 2023

Director and Senior Managing Executive Officer of TB

Managing Executive Officer of MUFG

April 2024

Senior Managing Executive Officer of BK

Senior Managing Corporate Executive (Representative Corporate Executive) of MUFG (incumbent)

June 2024

Member of the Board of Directors, Senior Managing Executive Officer of BK (incumbent)

Hideaki Takase
(December 14, 1968)

Senior Managing Corporate Executive

(Representative Corporate Executive)

(Group Head, Japanese Corporate & Investment Banking Business Group (excluding in charge of Wealth Management Research Division))

April 1991

Joined The Mitsubishi Bank, Limited

June 2017

Executive Officer of BK

Executive Officer of MUFG

August 2019

President & CEO of MUFG Bank (Europe) N.V.

April 2021

Managing Executive Officer of BK

April 2022

Managing Corporate Executive of MUFG

June 2022

Member of the Board of Directors, Managing Executive Officer of BK

April 2023

Managing Corporate Executive (Representative Corporate Executive) of MUFG

April 2025

Member of the Board of Directors, Senior Managing Executive Officer of BK

Senior Managing Corporate Executive (Representative Corporate Executive) of MUFG (incumbent)

April 2026

Member of the Board of Directors, Deputy President of BK (incumbent)

Tadashi Yamamoto
(May 23, 1969)

Senior Managing Corporate Executive

(Group Head, Retail & Digital Business Group

Group Chief Digital Transformation Officer, or Group CDTO)

April 1992

Joined The Bank of Tokyo, Ltd.

June 2018

Executive Officer of BK

Executive Officer of MUFG

April 2022

Managing Executive Officer of BK

Managing Executive Officer of MUFG

June 2022

Member of the Board of Directors, Managing Executive Officer of BK

April 2023

Managing Corporate Executive of MUFG

April 2026

Member of the Board of Directors, Senior Managing Executive Officer of BK (incumbent)

Senior Managing Corporate Executive of MUFG (incumbent)

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Name

(Date of Birth)

Position in MUFG

Business Experience

Katsunori Yokomaku

(December 23, 1967)

Senior Managing Corporate Executive

(Group Chief Risk Officer, or Group CRO)

April 1992

Joined The Sanwa Bank, Limited

June 2018

Executive Officer of BK

Executive Officer of MUFG

April 2022

Managing Executive Officer of BK

April 2024

Managing Corporate Executive of MUFG

June 2024

Member of the Board of Directors, Managing Executive Officer of BK

April 2026

Member of the Board of Directors, Senior Managing Executive Officer of BK (incumbent)

Senior Managing Corporate Executive of MUFG (incumbent)

Masatoshi Komoriya

(March 19, 1969)

Senior Managing Corporate Executive

(Group Chief Operating Officer-International, or Group COO-I

Group Head, Global Commercial Banking Business Group)

April 1991

Joined The Bank of Tokyo, Ltd.

June 2017

Executive Officer of BK

Executive Officer of MUFG

April 2022

Managing Executive Officer of BK

Managing Executive Officer of MUFG

April 2026

Senior Managing Executive Officer of BK

Senior Managing Corporate Executive of MUFG (incumbent)

June 2026

Member of the Board of Directors, Senior Managing Executive Officer of BK (incumbent)

Takuya Tanaka

(December 6, 1968)

Senior Managing Corporate Executive

(Representative Corporate Executive)

(Group Head, Commercial Banking & Wealth Management Business Group (excluding in charge of Wealth Management Research Division))

April 1991

Joined The Sanwa Bank, Limited

June 2017

Executive Officer of BK

Executive Officer of MUFG

April 2021

Managing Executive Officer of BK

April 2023

Managing Executive Officer of MUFG

April 2025

Senior Managing Executive Officer of BK

April 2026

Deputy President of BK

Senior Managing Corporate Executive (Representative Corporate Executive) of MUFG (incumbent)

June 2026

Member of the Board of Directors, Deputy President of BK (incumbent)

Senior Managing Corporate Executive (Representative Corporate Executive) of MUFG (incumbent)

Masahiro Kuniyuki

(October 20, 1970)

Managing Corporate Executive

(Group Chief Human Resources Officer, or Group CHRO

Deputy in charge of Corporate Administration Division)

April 1994

Joined The Mitsubishi Trust and Banking Corporation

April 2020

Executive Officer of TB

April 2022

Executive Officer of BK

Executive Officer of MUFG

April 2024

Managing Executive Officer of TB

Managing Executive Officer of BK

Managing Executive Officer of MUFG

April 2025

Director and Managing Executive Officer of TB (incumbent)

Managing Corporate Executive of MUFG (incumbent)

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Name

(Date of Birth)

Position in MUFG

Business Experience

Akiko Sueoka

(October 31, 1971)

Managing Corporate Executive

(Group Chief Legal Officer, or Group CLO)

April 1994

Joined Ministry of Health and Welfare (currently Ministry of Health, Labour and Welfare)

April 2000

Registered as attorney at law

Joined Mori Sogo

September 2003

The New York office of Simpson Thacher & Bartlett LLP

October 2004

The Rome office of Pavia e Ansaldo

July 2005

Secondment to the Economic and Industrial Policy Bureau of the Ministry of Economy, Trade and Industry

January 2009

Partner of Mori Hamada & Matsumoto

June 2025

Member of the Board of Directors, Managing Executive Officer of BK (incumbent)

Managing Corporate Executive of MUFG (incumbent)

Tomoyuki Kamioka

(June 27, 1970)

Managing Corporate Executive

(Group Head, Global Markets Business Group)

April 1994

Joined The Bank of Tokyo, Ltd.

June 2020

Executive Officer of BK.

Executive Officer of MUFG

August 2020

Executive Officer of SCHD

April 2023

Executive Officer of MUMSS

April 2024

Managing Executive Officer of SCHD

Managing Executive Officer of MUMSS

Managing Executive Officer of MUFG

February 2025

Representative Director of MUFG Morgan Stanley Credit Solutions Co., Ltd. (incumbent)

April 2025

Senior Managing Executive Officer of SCHD (incumbent)

Deputy President of MUMSS

June 2025

Member of the Board of Directors, Deputy President of MUMSS (incumbent)

April 2026

Managing Corporate Executive of MUFG (incumbent)

Miki Katayama

(September 2, 1970)

Managing Corporate Executive

(Group Chief Compliance Officer, or Group CCO)

April 1993

Joined The Mitsubishi Bank, Limited

June 2022

Executive Officer of BK

Executive Officer of MUFG

April 2026

Managing Executive Officer of BK

Managing Corporate Executive of MUFG (incumbent)

June 2026

Member of the Board of Directors, Managing Executive Officer of BK (incumbent)

Takayuki Sakurai
(May 12, 1971)

Managing Corporate Executive

(Group Chief Audit Officer, or Group CAO

Managing Director, Head of Internal Audit Division)

April 1994

Joined The Mitsubishi Bank, Limited

April 2020

Executive Officer of BK

Executive Officer of MUFG

April 2024

Executive Officer of SCHD

Executive Officer of MUMSS

April 2025

Executive Officer of BK

June 2025

Member of the Board of Directors, Audit and Supervisory Committee Member of BK

April 2026

Managing Corporate Executive of MUFG (incumbent)

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Name

(Date of Birth)

Position in MUFG

Business Experience

Kensuke Tokuma
(November 17, 1972)

Managing Corporate Executive

(Group Chief Information Officer, or Group CIO)

April 1996

Joined The Sanwa Bank, Limited

June 2023

Executive Officer of BK

Executive Officer of MUFG

April 2026

Managing Executive Officer of BK

Managing Corporate Executive of MUFG (incumbent)

June 2026

Member of the Board of Directors, Managing Executive Officer of BK (incumbent)

Yoshiaki Ueno
(February 26, 1974)

Managing Corporate Executive

(Representative Corporate Executive)

(Group Chief Strategy Officer, or Group CSO (in charge of Corporate Planning Division (excluding Financial Resources Management and Global Business)

Group Chief Sustainability Officer, or Group CSuO

In charge of Corporate Administration Division)

April 1996

Joined The Bank of Tokyo-Mitsubishi, Ltd.

June 2022

Executive Officer of BK

Executive Officer of MUFG

February 2025

Managing Executive Officer of BK

Managing Executive Officer of MUFG

June 2025

Member of the Board of Directors, Managing Executive Officer of BK (incumbent)

April 2026

Managing Corporate Executive (Representative Corporate Executive) of MUFG (incumbent)


Notes:			The following abbreviations are used in the table above:
			“BK” refers to MUFG Bank, Ltd. or its former name The Bank of Tokyo-Mitsubishi UFJ, Ltd.
			“TB” refers to Mitsubishi UFJ Trust and Banking Corporation.
			“SCHD” refers to Mitsubishi UFJ Securities Holdings Co., Ltd.
			“MUMSS” refers to Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
			“MUAH” refers to MUFG Americas Holdings Corporation.

The board of directors and corporate executives may be contacted through our headquarters at Mitsubishi UFJ Financial Group, Inc., 4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8330, Japan. In connection with our new headquarters building construction project, we have temporarily relocated our headquarters from 7-1, Marunouchi 2-chome, Chiyoda-ku, Tokyo 100-8330, Japan.

No family relationship exists among any of our directors or corporate executives.

B.Compensation

The compensation paid by MUFG and its subsidiaries during the fiscal year ended March 31, 2026 to our directors and corporate executives consisted of annual base salaries, stock compensation, cash bonuses and other benefits. MUFG’s compensation committee determines the compensation paid to our directors and corporate executives. For our compensation recovery policy, see Exhibit 97 to this Annual Report.

The following table sets forth details of the aggregate compensation paid by MUFG and its subsidiaries during the fiscal year ended March 31, 2026 to our directors (excluding outside directors), corporate executives and outside directors:

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				Non-Adjustable Compensation				Adjustable Compensation
Classification	Number of Recipients(1)	Aggregate Compensation		Annual Base Salary(2)		Stock Compensation		Cash Bonuses		Stock Compensation
		(in millions)
Directors (excluding outside directors)	7	¥	969	¥	406	¥	75	¥	260	¥	228
Corporate Executives	18	¥	2,535	¥	1,093	¥	367	¥	676	¥	399
Outside Directors	11	¥	254	¥	254	―		―		―

Notes:

(1)Includes the current directors and corporate executives as well as those who retired during the fiscal year ended March 31, 2026.

(2)Includes other benefits.

The following table sets forth the details of individual compensation paid, including benefits in kind granted by MUFG and its subsidiaries, in an amount equal to or exceeding ¥100 million during the fiscal year ended March 31, 2026:


				Non-Adjustable Compensation				Adjustable Compensation
Directors	Aggregate Compensation		Paid by	Annual Base Salary(1)		Stock Compensation		Cash Bonuses		Stock Compensation
	(in millions)
Kanetsugu Mike	¥	200	MUFG	¥	58	¥	29	¥	70	¥	43
Hironori Kamezawa	¥	357	MUFG	¥	101	¥	34	¥	111	¥	75
			BK	20		16		―		―
Junichi Hanzawa	¥	314	MUFG	¥	55	¥	14	¥	47	¥	36
			BK	57		22		47		36
Makoto Kobayashi	¥	237	MUFG	¥	35	¥	5	¥	43	¥	32
			SCHD	18		3		24		16
			MUMSS	18		3		24		16
Hiroshi Kubota	¥	216	MUFG	¥	35	¥	5	¥	33	¥	30
			TB	35		15		33		¥	30
Yutaka Miyashita	¥	143	MUFG	¥	41	¥	11	¥	22	¥	12
			BK	22		13		14		8
Fumitaka Nakahama	¥	144	MUFG	¥	41	¥	10	¥	24	¥	12
			BK	22		11		16		8
Hiroyuki Seki	¥	188	MUFG	¥	48	¥	11	¥	32	¥	17
			BK	27		21		21		11
Shuichi Yokoyama	¥	127	MUFG	¥	63	¥	13	¥	32	¥	19
Yasushi Itagaki	¥	161	MUFG	¥	48	¥	10	¥	26	¥	16
			BK	27		6		17		11
Takafumi Ihara	¥	159	MUFG	¥	41	¥	8	¥	28	¥	15
			TB	22		19		16		10
Jun Togawa	¥	127	MUFG	¥	41	¥	8	¥	19	¥	11
			BK	22		5		13		8
Masakazu Osawa	¥	145	MUFG	¥	41	¥	7	¥	19	¥	12
			BK	20		21		17		8
Hideaki Takase	¥	145	MUFG	¥	35	¥	8	¥	20	¥	11
			BK	18		22		13		8
			TB	10		—		—		—
Keitaro Tsukiyama	¥	109	MUFG	¥	36	¥	8	¥	15	¥	8
			BK	19		8		10		5

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				Non-Adjustable Compensation				Adjustable Compensation
Directors	Aggregate Compensation		Paid by	Annual Base Salary(1)		Stock Compensation		Cash Bonuses		Stock Compensation
Toshiki Ochi	¥	110	MUFG	¥	36	¥	10	¥	15	¥	8
			BK	19		6		10		6
Tadashi Yamamoto	¥	110	MUFG	¥	32	¥	9	¥	15	¥	8
			BK	15		9		10		6
			ACOM	6		—		—		—
Katsunori Yokomaku	¥	107	MUFG	¥	30	¥	6	¥	15	¥	8
			BK	15		8		10		5
			SCHD	10		—		—		—


Note:			(1) Includes other benefits. (2)The following abbreviations are used in the table above:
			“BK” refers to MUFG Bank, Ltd. (or its former name The Bank of Tokyo-Mitsubishi UFJ, Ltd.)
			“TB” refers to Mitsubishi UFJ Trust and Banking Corporation.
			“SCHD” refers to Mitsubishi UFJ Securities Holdings Co., Ltd.
			“MUMSS” refers to Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
			"ACOM" refers to ACOM CO., LTD.

Annual Base Salary

Annual base salaries were paid to our directors (including outside directors) and corporate executives in the form of monthly cash installment payments.

Stock Compensation Plans

Under our stock compensation plan, qualified directors (excluding outside directors and directors serving as audit committee members), corporate executives and others of MUFG and its major domestic subsidiaries are assigned, on a monthly basis, (1) points based on their job responsibilities, or non-adjustable points, and (2) additional points based on their job responsibilities which are adjusted within the range of 0% to 150% at the end of each fiscal year and at the end of each plan period to reflect the extent to which a financial target measured under Japanese GAAP and other factors determined by the compensation committee are attained, or adjustable points. Each plan period corresponds to the period covered by the three-year medium-term business plan of MUFG. Each accumulated point represents a right to receive one share of MUFG common stock from a trust established in Japan to administer the plan grants as determined by the compensation committee.

Non-adjustable points are determined at the time of a grantee’s assumption of the job responsibilities based on which such points are granted, and the shares are delivered following the grantee’s departure from the job responsibilities. Adjustable points are determined either at the end of each fiscal year during the applicable plan period or at the end of the plan period, depending on the manner in which the adjustable point system is structured, and the shares are delivered following the end of the plan period. The right to receive shares is subject to conditions imposed by the compensation committee, including non-engagement in misconduct. A portion of the shares to be exchanged for a grantee’s points may be delivered in cash, including through market sale of such shares.

The grantees are entitled to “dividend equivalent credits” on their points received under the plan when MUFG pays dividends to its shareholders. The credit is equal to the dividends that the grantees would have received on the shares had the shares been issued to the grantees in exchange for their points under the plan, less expenses relating to the administration of the plan. Accumulated dividend equivalents are paid to grantees at the time of the delivery of the shares.

The shares to be delivered to grantees are purchased on the open market by the trustee of a trust pursuant to a trust agreement among MUFG, the trustee and the independent caretaker of the trust. Each plan is funded in cash up to a maximum aggregate amount determined by our compensation committee.

The initial stock compensation plan commenced on July 1, 2016. The grants under the plan were tied to MUFG’s previous medium-term business plan for the three-year period ended March 31, 2018. The trust for the plan was funded with ¥9.8 billion in cash, and 18,785,400 shares of MUFG common stock were purchased by the trustee of the plan trust in May 2016. The plan was

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adopted after our compensation committee decided in May 2016 to cease to provide any additional stock acquisition rights under our previous stock-based compensation structure and to introduce the stock compensation plan.

The second stock compensation plan commenced on December 1, 2016. The trust for the plan was funded with 8.8 billion in cash, and an aggregate of 13,004,300 shares of MUFG common stock were purchased by the trustee of the plan trust in November 2016 and May 2017. The plan was adopted to replace the outstanding stock acquisition rights under our previous stock-based compensation structure. Upon the adoption of the plan, the stock acquisition rights that had been allotted to grantees but remained unexercised under the then-outstanding stock-based compensation plans were exchanged for points under the stock compensation plan, and the rights to receive shares of MUFG common stock represented by these points were vested. The outstanding stock acquisition rights of grantees who were on overseas assignments at the time of the adoption of the plan were exchanged for points under the stock compensation plan upon their return to Japan. Each grantee receives shares of MUFG common stock in exchange for points upon the grantee’s departure from his or her job responsibilities based on which the right to receive such shares was granted.

On May 15, 2018, the compensation committee approved additional grants under the initial stock compensation plan, which was amended in connection with the launch of MUFG’s previous medium-term business plan for the three-year period ended March 31, 2021. The trust period of the plan trust was extended until August 31, 2021, and the maximum amount of funds to be contributed to the plan trust was reset at ¥26.3 billion. The formula for determining adjustable points under the plan was also revised. In May 2018, the plan trust was funded with ¥9.6 billion in cash, and 13,049,600 shares of MUFG common stock were purchased by the trustee of the plan trust.

On May 17, 2021, the compensation committee approved additional grants under the initial stock compensation plan, which was amended in connection with the launch of MUFG’s previous medium-term business plan for the three-year period ended March 31, 2024. The trust period of the plan trust was extended until August 31, 2024, and the maximum amount of funds to be contributed to the plan trust was reset at ¥26.6 billion. The formula for determining adjustable points under the plan was also revised. In May 2021, the plan trust was funded with ¥8.3 billion in cash, and 13,381,500 shares of MUFG common stock were purchased by the trustee of the plan trust.

On May 15, 2024, the compensation committee approved additional grants under the initial stock compensation plan, which was amended in connection with the launch of MUFG’s current medium-term business plan for the three-year period ending March 31, 2027. The trust period of the plan trust was extended until August 31, 2027, and the maximum amount of funds to be contributed to the plan trust was reset at ¥34.4 billion. The formula for determining adjustable points under the plan was also revised. In May 2024, the plan trust was funded with ¥14.1 billion in cash, and 9,080,700 shares of MUFG common stock were purchased by the trustee of the plan trust.

For more information on our stock compensation plan, see “Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers.”

Cash Bonuses

We from time to time pay cash bonuses to our directors and corporate executives to further motivate them to contribute to the improvement of our stock prices and profits if such bonuses are deemed appropriate based on a balanced scorecard approach taking into account the results of operations of the MUFG Group and each director’s or corporate executive’s individual performance of his or her duties as a director or corporate executive in light of both quantitative and qualitative criteria, including our medium-term strategy for improving our corporate value. None of the outside directors and directors serving as audit committee members are eligible to receive a cash bonus. The compensation committee determines the cash bonus for each director and corporate executive based on our financial results and his or her job performance for the preceding fiscal year as well as his or her seniority and experience.

MUFG Americas Holdings Corporation Stock Bonus Plan

Under the MUFG Americas Holdings Corporation Stock Bonus Plan, qualified key employees of MUFG Americas Holdings are granted Restricted Share Units, or RSUs, representing a right to receive American Depositary Receipts, or ADRs, evidencing ADSs, each exchangeable for one share of MUFG common stock, from an independent trust established to administer the plan grants, upon the satisfaction of vesting conditions, to be determined pursuant to the plan as well as a Restricted Share Unit Agreement between MUFG Americas Holdings and the grantees.

Unless otherwise provided in the relevant Restricted Share Unit Agreement, RSUs become vested and non-forfeitable as follows: one-third (33 1/3%) of a grantee’s RSUs vests on May 20 of each of the three years following the date of the grant such that all of the RSUs become fully vested after three years from the grant date so long as the grantee satisfies the specified continuous service requirements and any other conditions under the applicable plan documents, subject to certain claw-back and notice period provisions.

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Under the plan, the grantees are entitled to “dividend equivalent credits” on their granted but unvested RSUs when MUFG pays dividends to its shareholders. The credit is equal to the dividends that the grantees would have received on the shares had the shares been issued to the grantees in exchange for their granted but unvested RSUs. Accumulated dividend equivalents are paid to grantees in whole shares on an annual basis. Any fractional share will be paid to the participants in cash.

Grants made under the plan are not entitled to any dividend rights, voting rights, or other stockholder rights unless and until RSUs are vested and ADSs are delivered to grantees.

The ADSs to be delivered to grantees will be purchased on the open market by the trustee of the independent trust pursuant to a trust agreement between MUFG Americas Holdings and the trustee. As of June 30, 2026, 150,842,161 RSUs have been granted under the plan, of which 7,454,607 RSUs were outstanding as of June 30, 2026.

For more information on the plan, see “Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers.”

Share-Based Compensation Plan for Domestic Employees of Major Subsidiaries

Under the share-based compensation plan which commenced in July 2024, qualified domestic employees holding managerial positions at our major subsidiaries, MUFG Bank, Mitsubishi UFJ Trust and Banking, and Mitsubishi UFJ Morgan Stanley Securities, are assigned, on a monthly basis, pre-determined points in equal installments during the plan period, which is from July 2024 to June 2027. The points accumulated through the end of the share-based compensation plan period by grantees who satisfy applicable conditions will be exchanged for shares of MUFG common stock. Each accumulated point represents a right to receive one share of MUFG common stock from a trust established in Japan in May 2024 to administer the plan grants. Eligibility requirements are determined by each subsidiary.

The shares exchanged for a grantee’s points are delivered following the end of the plan period. The right to receive shares of MUFG common stock in exchange for points is subject to conditions imposed by each subsidiary, including non-engagement in misconduct. A portion of the shares to be exchanged for a grantee’s points may be delivered in cash, including through market sale of such shares.

The grantees are not entitled to any dividends on their points received under the plan when MUFG pays dividends to its shareholders. Dividends on such points are used to cover expenses relating to the administration of the plan or acquire shares for the plan.

The trust for the plan was funded with ¥ 4.3 billion in cash, and an aggregate of 2,786,900 shares of MUFG common stock were purchased by the trustee of the plan trust in May 2024.

For more information on the plan, see “Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers.”

Share Ownership

As of July 1, 2026, our directors and corporate executives held the following numbers of shares of our common stock and held or were entitled to receive the following numbers of points under our stock compensation plan pursuant to which each such point will be exchangeable for one share of our common stock as further described in “—Stock Compensation Plans” above:

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Directors	Number of Shares Registered	Number of Points Under Stock Compensation Plan
Satoko Kuwabara	—	—
Mari Elka Pangestu	—	—
Hiroshi Shimizu	—	—
David Sneider	―	―
Miyuki Suzuki	100	—
Koichi Tsuji	—	—
Teruhisa Ueda	―	―
Kenichiro Yoshida	50,000	—
Takayuki Yasuda	130,200	34,798
Norio Kanie	35,300	37,895
Hiroshi Kubota	53,364	176,734
Masakazu Osawa	15,200	64,133
Hiroyuki Seki	54,450	203,908


Corporate Executives	Number of Shares Registered	Number of Points Under Stock Compensation Plan
Hironori Kamezawa	247,339	327,104
Yasushi Itagaki	42,000	83,906
Junichi Hanzawa	236,500	304,151
Fumitaka Nakahama	42,569	167,291
Takafumi Ihara	52,120	117,503
Jun Togawa	132,800	44,602
Hideaki Takase	38,100	80,920
Tadashi Yamamoto	37,400	144,314
Katsunori Yokomaku	29,317	89,700
Masatoshi Komoriya	5,800	30,585
Takuya Tanaka	41,559	110,448
Masahiro Kuniyuki	19,600	58,864
Akiko Sueoka	―	17,696
Tomoyuki Kamioka	37,700	55,639
Miki Katayama	13,800	69,962
Takayuki Sakurai	61,300	11,999
Kensuke Tokuma	15,200	58,322
Yoshiaki Ueno	16,100	74,427

None of the shares of our common stock held by our directors and corporate executives have voting rights that are different from shares of our common stock held by any other shareholder.

C.Board Practices

Our articles of incorporation provide for a board of directors with statutorily mandated nominating committee, which we call the nominating and governance committee, audit committee and compensation committee, each consisting of members of the board of directors. We have also elected, though not statutorily mandated under the Companies Act, to establish a risk committee consisting of directors and external experts. We also have a U.S. risk committee pursuant to the U.S. Enhanced Prudential Standards for foreign banking organizations. Our corporate executives (shikko yaku) are responsible for executing and managing our business operations

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based on a delegation of authority by the board of directors, and our directors set our key management policies and oversee the execution of duties by these corporate executives.

The Companies Act permits three types of governance system for large companies such as MUFG: (1) a company with a nominating committee, an audit committee and a compensation committee, (2) a company with a board of corporate auditors, and (3) a company with an audit and supervisory committee. Our current governance system is based on the first system.

With respect to companies adopting the first system, including MUFG, each of the nominating, audit and compensation committees must consist of members of the board of directors, and the majority of the members of each committee must be outside directors as defined by the Companies Act.

An “outside director” is defined by the Companies Act as a person who meets all of the following conditions:

•the person is not currently, and has not been in the ten years prior to his or her assumption of office as outside director, an executive director (meaning a director concurrently performing an executive role) (gyomu shikko torishimariyaku), a corporate executive, a manager (shihainin), or any other type of employee of the company or any of its subsidiaries;

•if the person has been a director, a corporate auditor, or an accounting adviser (kaikei sanyo) (other than a person who has been an executive director, a corporate executive, a manager or any other type of employee) of the company or any of its subsidiaries within the ten years prior to his or her assumption of office as outside director, the person was not an executive director, a corporate executive, a manager or any other type of employee of the company or any of its subsidiary in the ten years prior to his or her assumption of office as such;

•the person is not a natural person who controls the company, or a director, a corporate executive, a manager or any other type of employee of the company’s “parent company, etc.” (meaning the company's parent company or a natural person who controls the company);

•the person is not an executive director, a corporate executive, a manager or any other type of employee of another subsidiary of the company’s parent company or another company controlled by a natural person who controls the company; and

•the person is not the spouse or a family member within the second degree of kinship of a director, a corporate executive, a manager, or any other type of important employee of the company, or a natural person who controls the company.

The board of directors must appoint corporate executives to execute and manage the business operations of the company under the authority delegated by the board of directors. Based on this system, our current governance framework is designed to facilitate flexible and swift decision-making and ensure transparency in our management processes.

Board of Directors

Our board of directors consists of directors who are elected at a general meeting of shareholders. Under our articles of incorporation, the number of directors may not exceed 20. We currently have 15 directors, eight of whom are independent outside directors and two of whom are internal non-executive directors. Companies listed on the Prime Market of the Tokyo Stock Exchange, including us, must have one third (or, in cases where such companies deem appropriate, the majority) of directors qualify as independent outside directors, who are outside directors considered independent based on such internal standards as each company establishes pursuant to the Tokyo Stock Exchange requirements, or publicly disclose the reason for not having such directors on the board of directors.

The regular term of office of a director is one year from the date of election, and directors may serve their terms until the close of the annual general meeting of shareholders held for the following year after their election. Directors may serve any number of consecutive terms.

Under the Companies Act, the board of directors has the authority to determine our basic management policy, make decisions on the execution and management of our business operations, and oversee the execution by the corporate executives of their duties. The board of directors may delegate, to the extent permitted by the Companies Act, the authority to make decisions on the execution and management of our business operations. Our board of directors has delegated most of this authority to the corporate executives.

The board of directors elects the Chairman and the Deputy Chairman from among its members and appoints key management members based on recommendations submitted to it by the nominating committee.

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Under the Companies Act, a resolution of the board of directors is required if any director wishes to engage in any business that is in competition with us or any transaction with us. Additionally, no director may vote on a proposal, arrangement or contract in which that director is deemed to be particularly interested.

Neither the Companies Act nor our articles of incorporation contain special provisions as to the borrowing power exercisable by a director, the retirement age of our directors, or a requirement of our directors to hold any shares of our capital stock.

Under the Companies Act and our articles of incorporation, we may exempt, by resolution of the board of directors, our directors from liabilities to MUFG arising in connection with their failure to execute their duties in good faith and without gross negligence within the limits stipulated by applicable laws and regulations. We have entered into a liability limitation agreement with each outside director and non-executive director which limits the maximum amount of their liability to MUFG arising in connection with a failure to execute their duties in good faith and without gross negligence to the greater of either ¥10 million or the aggregate sum of the amounts prescribed in Paragraph 1 of Article 425 of the Companies Act and Articles 113 and 114 of the Companies Act Enforcement Regulations. In addition, in accordance with Paragraph 1 of Article 430-3 of the Companies Act, we have in place a directors’ and officers’ liability insurance policy, which provides coverage to our directors against liability arising from certain acts or omission thereof in their respective capacities.

None of our directors is party to a service contract with MUFG or any of its subsidiaries that provides for benefits upon end of their director term.

Nominating Committee

Our nominating committee, which we call the nominating and governance committee, determines the contents of proposals regarding the election and removal of director candidates to be submitted to general meetings of shareholders. The committee also considers and makes recommendations to the board of directors regarding the appointment and removal of the Chairman and the Deputy Chairman of the board of directors and the President & Group CEO of MUFG as well as the chairman and the deputy chairman of the board of directors, the president and others of each of our major subsidiaries. In addition, the committee discusses and makes recommendations to the board of directors on matters pertaining to our governance policy and framework.

Under the Companies Act, the nominating committee must consist of at least three directors, and the majority of its members must be outside directors. Our nominating committee, which we call the nominating and governance committee, currently consists of five directors. The chairman of the committee is Kenichiro Yoshida, an independent outside director. The other members of this committee are Satoko Kuwabara, Miyuki Suzuki and Teruhisa Ueda, who are independent outside directors, and Junichi Hanzawa, Director, President & Group CEO. Between April 2025 and March 2026, the nominating and governance committee met 14 times.

Audit Committee

The audit committee determines the contents of proposals pertaining to the election, termination and non-appointment of our independent auditor to be submitted to general meetings of shareholders. The committee also monitors and audits the execution by the directors and the corporate executives of their duties and prepares audit reports to the board of directors. In order to effectively perform its duties, the committee reviews, inspects and investigates, as necessary, the management of the operations of MUFG and its subsidiaries, including financial reporting and internal controls. In addition, the committee has the power to consent to decisions on the compensation to be paid to our independent auditor.

Under the Companies Act, the audit committee must consist of at least three non-executive directors, and the majority of its members must be outside directors. Our committee currently has five members. The chairman of the committee is Koichi Tsuji, an independent outside director. The other members of the committee are David Sneider and Hiroshi Shimizu, who are independent outside directors, and Takayuki Yasuda and Norio Kanie, who are non-executive directors. Between April 2025 and March 2026, the audit committee met 17 times.

Compensation Committee

The compensation committee establishes our policy regarding the determination of the compensation of MUFG’s directors, corporate executives, executive officers (shikko yakuin) and others and also determines the details of individual compensation based on the policy. The committee discusses and makes recommendations to the board of directors regarding the establishment, revision and abolition of compensation systems for the chairman, the deputy chairman, the president and others of each of our major subsidiaries.

Under the Companies Act, the compensation committee must consist of at least three directors, and the majority of its members must be outside directors. Our compensation committee currently consist of five directors. The chairperson of the committee is Satoko

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Kuwabara, an independent outside director. The other members of this committee are Miyuki Suzuki, Teruhisa Ueda and Kenichiro Yoshida, who are independent outside directors, and Junichi Hanzawa, Director, President & Group CEO. Between April 2025 and March 2026, the compensation committee met 7 times.

Risk Committee

In addition to the foregoing three committees, which are mandated by the Companies Act, we have a risk committee on a voluntary basis. The risk committee deliberates and makes recommendations to the board of directors on matters regarding group-wide risk management as well as top risk matters.

MUFG Corporate Governance Policies provide that the committee shall consist of outside directors, corporate executives and external experts. The committee currently has seven members. The chairperson of the committee is Hiroshi Shimizu, an independent outside director. The other members of this committee are Mari Elka Pangestu and David Sneider, who are independent outside directors, and Yoshiaki Ueno, Managing Corporate Executive, Group CSO and Group CSuO, and Takeo Hoshi, Shigeru Ariizumi and Yo Honma, who are current external experts. Between April 2025 and March 2026, the risk committee met four times.

U.S. Risk Committee

The U.S. risk committee oversees the risk management function for our combined U.S. operations. Its oversight role includes, but is not limited to, all roles and responsibilities required under the FRB’s final rules for Enhanced Prudential Standards for foreign banking organizations. The committee monitors liquidity and all other types of risk exposures, reviews the risk management policies and procedures, and oversees compliance with such policies and procedures for our combined U.S. operations. The committee is a subcommittee of the board of directors of MUFG, and reports and makes recommendations to MUFG’s board of directors and MUFG’s risk committee.

The members of the U.S. risk committee are appointed by MUFG’s board of directors after consideration of member candidates reviewed and recommended by MUFG’s risk committee and nominating and governance committee. The committee shall consist of five or more members including delegate(s) from MUFG and at least one independent member. Between April 2025 and March 2026, the risk committee met four times.

Corporate Executives

Our corporate executives are responsible for executing and managing our business operations within the scope of the authority delegated to them by the board of directors.

Under the Companies Act, at least one corporate executive must be appointed by a resolution of the board of directors. We currently have 18 corporate executives. Under our articles of incorporation, the board of directors shall appoint a representative corporate executive who may represent us severally and may appoint a president and a deputy president and others. The term of office of each corporate executive expires at the conclusion of the first meeting of the board of directors convened after the ordinary general meeting of shareholders for the last fiscal year that ends within one year following the corporate executive’s assumption of office.

Under the Companies Act, a resolution of the board of directors is required if any corporate executive wishes to engage in any business that is in competition with us or any transaction with us.

Under the Companies Act and our articles of incorporation, we may exempt, by resolution of the board of directors, our corporate executives from liabilities to MUFG arising in connection with their failure to execute their duties in good faith and without gross negligence within the limits stipulated by applicable laws and regulations. Our board of directors, however, has not adopted such resolution with respect to any of our corporate executives. Instead, in accordance with Paragraph 1 of Article 430-3 of the Companies Act, we have in place a directors’ and officers’ liability insurance policy, which provides coverage to our corporate executives against liability arising from certain acts or omissions in their respective capacities.

Executive Committee

The executive committee, as the primary decision-making body for the business execution of the MUFG Group, discusses and makes decisions about important matters related to the execution and management of our business operations and governance. The chairperson of the committee is Junichi Hanzawa, President & Group CEO. The committee members primarily consist of all representative corporate executives and such corporate executives and executive officers as designated by the president. The President & Group CEO may, as necessary, request our Group C-suite executives to attend committee meetings, and the members of the audit committee are also allowed to attend. The executive committee normally meets once every other week.

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D.Employees

As of March 31, 2026, we had approximately 156,000 employees, an increase of approximately 5,200 employees compared with the number of employees as of March 31, 2025._ In addition, as of March 31, 2026, we had approximately 28,200 part-time and temporary employees. The following tables show the percentages of our employees across our different business units and in different locations as of March 31, 2026:


Business unit
MUFG Bank:
Commercial Banking & Wealth Management Business Unit	9	%
Japanese Corporate & Investment Banking Business Unit	3
Global Corporate & Investment Banking Business Unit	3
Global Commercial Banking Business Unit	47
Global Markets Unit	1
Retail & Digital Business Unit	4
Corporate Center/Corporate Staff	11
Mitsubishi UFJ Trust and Banking:
Trust-Banking	3
Trust Assets	8
Real Estate	0
Global Markets	0
Administration and subsidiaries	2
Mitsubishi UFJ Securities Holdings:
Retail & Commercial Banking Business Unit	2
Japanese Corporate & Investment Banking Business Unit	0
Global Corporate & Investment Banking Business Unit	―
Global Commercial Banking Business Unit	ー
Trust Assets Business Unit	ー
Global Markets Business Unit	0
Digital Service Business Unit	ー
Corporate Center/Corporate Staff	1
Mitsubishi UFJ NICOS:
Business Marketing Division	1
Credit Risk Management & Risk Assets Administration Division	1
Operations Division	0
Systems & Systems Integration Division	0
Corporate Division	0
Others	0
Mitsubishi UFJ Asset Management Co., Ltd.
Trust Assets	1
Others	3
	100	%

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Location
MUFG Bank:
Japan	19	%
North America	4
Latin America	0
Europe	2
Middle East & Africa	0
Asia & Oceania (excluding Japan)	53
Mitsubishi UFJ Trust and Banking:
Japan	6
North America	1
Latin America	0
Europe	1
Middle East & Africa	ー
Asia & Oceania (excluding Japan)	4
Mitsubishi UFJ Securities Holdings:
Japan	4
North America	ー
Latin America	ー
Europe	ー
Middle East & Africa	ー
Asia & Oceania (excluding Japan)	ー
Mitsubishi UFJ NICOS:
Japan	2
North America	ー
Latin America	ー
Europe	ー
Middle East & Africa	ー
Asia & Oceania (excluding Japan)	ー
Mitsubishi UFJ Asset Management Co., Ltd.
Japan	1
North America	ー
Latin America	ー
Europe	ー
Middle East & Africa	ー
Asia & Oceania (excluding Japan)	ー
Others	3
	100	%

Most of our employees are members of an employees’ union, which negotiates on behalf of employees in relation to remuneration and working conditions. We believe our labor relations to be good.

E.Share Ownership

The information required by this item is set forth in “—B. Compensation.”

F.Disclosure of a Registrant’s Action to Recover Erroneously Awarded Compensation

None.

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Item 7. Major Shareholders and Related Party Transactions.

A.Major Shareholders

As of March 31, 2026, we had 1,688,322 registered shareholders of our common stock. The ten largest holders of our common stock appearing on the register of shareholders as of March 31, 2026, and the number and the percentage to the total outstanding shares, excluding the shares held in treasury, of such shares held by each of them, were as follows:


Name	Number of shares held	Percentage of total outstanding shares(3)
The Master Trust Bank of Japan, Ltd. (Trust account)(1)	1,762,949,700	15.58	%
Custody Bank of Japan, Ltd. (Trust account)(1)	607,676,500	5.37	%
THE BANK OF NEW YORK MELLON AS DEPOSITARY BANK FOR DR HOLDERS(2)	340,637,931	3.01	%
STATE STREET BANK AND TRUST COMPANY 505001	310,611,029	2.74	%
The Master Trust Bank of Japan, Ltd. (Meiji Yasuda Life Insurance Company retirement benefit trust account)	175,000,000	1.54	%
JP MORGAN CHASE BANK 385781	164,190,844	1.45	%
GOVERNMENT OF NORWAY	154,245,659	1.36	%
Nippon Life Insurance Company	142,562,953	1.26	%
JP MORGAN CHASE BANK 385642	139,175,931	1.23	%
THE BANK OF NEW YORK MELLON 140042	114,025,088	1.00	%
Total	3,911,075,635	34.57	%

Notes:

(1)Includes the shares held in trust accounts, which do not disclose the names of beneficiaries.

(2)An owner of record for our ADSs.

(3)Numbers represent ratios to the total outstanding shares (excluding the treasury shares) and are truncated after two decimal points.

(4)According to a beneficial ownership report on Schedule 13G filed with the SEC by Sumitomo Mitsui Trust Group, Inc. on July 31, 2025, Sumitomo Mitsui Trust Group, Inc. and its consolidated subsidiaries beneficially owned an aggregate of 4.9% of the outstanding shares of our common stock as of June 30, 2025. Other than as described in the table above, we have not independently confirmed this beneficial ownership information.

As of March 31, 2026, 2,125,748 shares, representing approximately 0.01% of our outstanding common stock, were held by our directors and corporate executives.

As of March 31, 2026, 1,950,394,634 shares, representing 17.24% of our outstanding common stock, were owned by 687 U.S. shareholders of record who are resident in the United States, one of whom is the ADR depository’s nominee holding 340,637,931 shares, or 3.01%, of our outstanding common stock. Because some of these shares were held by brokers or other nominees as record holders, the number of record holders with addresses in the United States might not fully reflect the number of beneficial owners in the United States.

Our major shareholders do not have different voting rights.

B.Related Party Transactions

As of March 31, 2026, we held approximately 23.9% of the voting rights in Morgan Stanley and Series C Preferred Stock with a face value of approximately $521.4 million and 10% dividend. We also have two representatives appointed to Morgan Stanley’s board of directors. We adopted the equity method of accounting for our investment in Morgan Stanley beginning with the fiscal year ended March 31, 2012. We have a sales plan with Morgan Stanley and Morgan Stanley & Co. LLC, pursuant to which we will sell portions of the shares of Morgan Stanley common stock that we hold to Morgan Stanley through Morgan Stanley & Co. LLC acting as agent for Morgan Stanley to the extent necessary to ensure that our beneficial ownership will remain below 24.9%.

We and Morgan Stanley have two securities joint venture companies, namely, Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities, in Japan. We hold a 60% economic interest in Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities, and Morgan Stanley holds a 40% economic interest in Mitsubishi UFJ Morgan Stanley Securities and Morgan Stanley MUFG Securities. We hold a 60% voting interest and Morgan Stanley holds a 40% voting interest in Mitsubishi UFJ Morgan Stanley Securities, and we hold a 49% voting interest and Morgan Stanley holds a 51% voting interest in Morgan Stanley MUFG Securities.

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We and Morgan Stanley continue to pursue a variety of business opportunities in Japan and abroad in accordance with the global strategic alliance. For a detailed discussion of our global alliance with Morgan Stanley, see “Item 4.B. Information on the Company—Business Overview—Global Strategic Alliance with Morgan Stanley.”

We and our banking subsidiaries had, and expect to have in the future, banking transactions and other transactions in the ordinary course of business with our related parties. Although for the fiscal year ended March 31, 2026, such transactions included, but were not limited to, call money, loans, electronic data processing, leases and management of properties, those transactions were immaterial and were made at prevailing market rates, terms and conditions and do not involve more than the normal risk of collectability or present other unfavorable features.

None of our directors or corporate executives, nor any of the close members of their respective families, has had any transactions or has any presently proposed transactions that are material or any transactions that are unusual in their nature or conditions, involving goods, services or tangible or intangible assets, to which we were, are or will be a party.

No loans have been made to our directors or corporate executives other than in the normal course of business, on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons, involving no more than the normal risk of collectability and presenting no other unfavorable features. In addition, no loans have been made to our directors or corporate executives other than as permitted under Section 13(k) of the U.S. Securities Exchange Act and Rule 13k-1 promulgated thereunder.

No family relationship exists among any of our directors or corporate executives. No arrangement or understanding exists between any of our directors or corporate executives and any other person pursuant to which any director or corporate executive was elected to his or her position at MUFG.

As part of our compensation structure, we have granted stock compensation rights to our directors and corporate executives. For a detailed discussion of the stock acquisition rights, see “Item 6.B. Directors, Senior Management and Employees—Compensation.”

C.Interests of Experts and Counsel

Not applicable.

Item 8. Financial Information.

A.Consolidated Statements and Other Financial Information

The information required by this item is set forth in our consolidated financial statements starting on page F-1 of this Annual Report and in “Selected Statistical Data” starting on page A-1 of this Annual Report.

Pursuant to Rule 3-09 of Regulation S-X, the financial statements and supplementary data of Morgan Stanley, our equity method investee, as of December 31, 2024 and 2025 and for the fiscal years ended December 31, 2023, 2024 and 2025, are incorporated in this Annual Report as Exhibit 99(c) by reference to Morgan Stanley’s annual report on Form 10-K filed on February 19, 2026.

Legal Proceedings

From time to time, we are involved in various litigation matters and other legal proceedings, including regulatory actions. Although the final resolution of any such matters and proceedings could have a material effect on our consolidated operating results for a particular reporting period, based on our current knowledge and consultation with legal counsel, we believe the current litigation matters and other legal proceedings, when ultimately determined, will not materially affect our results of operations or financial position. For more information, see “Item 3.D. Key Information—Risk Factors—Operational Risk—We may become subject to regulatory actions or other legal proceedings relating to our transactions or other aspects of our operations, which could result in significant financial losses, restrictions on our operations and damage to our reputation.” and Note 26 to our consolidated financial statements.

Distributions

Our board of directors submits a recommendation for a year-end dividend for our shareholders’ approval at the ordinary general meeting of shareholders customarily held in June of each year. The year-end dividend is usually distributed immediately following shareholders’ approval to holders of record at the end of the preceding fiscal year. In addition to year-end dividends, we may make cash distributions by way of interim dividends to shareholders of record as of September 30 of each year as distribution of surplus by

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resolution of our board of directors. Year-end dividends in the amount of ¥51 per share of our common stock (in addition to interim dividends of ¥35 per share of our common stock) for the fiscal year ended March 31, 2026 were approved by shareholders at the ordinary general meeting of shareholders held on June 26, 2026.

See Exhibit 2(c) to this Annual Report for additional information on our dividends policy.

Under the Japanese foreign exchange regulations currently in effect, dividends paid on shares held by non-residents of Japan may be converted into any foreign currency and repatriated abroad. Under the terms of the deposit agreement pursuant to which ADSs are issued, the depositary is required, to the extent that in its judgment it can convert Japanese yen on a reasonable basis into U.S. dollars and transfer the resulting U.S. dollars to the United States, to convert all cash dividends that it receives in respect of deposited shares into U.S. dollars and to distribute the amount received, after deduction of any applicable withholding taxes, to the holders of ADSs. See “Item 10.D. Additional Information—Exchange Controls” and Exhibit 2(c) to this Annual Report.

B.Significant Changes

Other than as described in this Annual Report, no significant changes have occurred since the date of our consolidated financial statements included in this Annual Report.

Item 9. The Offer and Listing.

A.Offer and Listing Details

The principal market for our common stock is the Tokyo Stock Exchange in Japan. Our common stock is also listed on the Nagoya Stock Exchange in Japan. The listing code assigned to our common stock in Japan is 8306.

In the United States, ADSs, each representing one share of common stock, are quoted on the New York Stock Exchange under the symbol, “MUFG.”

B.Plan of Distribution

Not applicable.

C.Markets

The information required by this item is set forth in “—A. Offer and Listing Details.”

D.Selling Shareholders

Not applicable.

E.Dilution

Not applicable.

F.Expenses of the Issue

Not applicable.

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Item 10. Additional Information.

A.Share Capital

Not applicable.

B.Memorandum and Articles of Association

Our Corporate Purpose

Article 2 of our Articles of Incorporation provides that our corporate purpose is to carry on the following businesses:

•administration of management of banks, trust banks, specialized securities companies, insurance companies or other companies which we may own as our subsidiaries under the Banking Act;

•any businesses incidental to the foregoing businesses mentioned in the preceding item; and

•any other businesses in which bank holding companies are permitted to engage under the Banking Act in addition to the foregoing businesses mentioned in the preceding two items.

Board of Directors

For discussion of the provisions of our Articles of Incorporation as they apply to our directors, see “Item 6.C. Directors, Senior Management and Employees—Board Practices.”

Common Stock

As of March 31, 2026, a total of 11,867,710,920 shares of common stock (including 580,142,679 shares of common stock held by us and our consolidated subsidiaries as treasury stock) had been issued. Each of the shares issued and outstanding was fully paid and non-assessable.

For a description of our common stock, see Exhibit 2(c) to this Annual Report.

Preferred Stock

We currently have no shares of preferred stock issued.

For a description of preferred stock we are authorized to issue under our Articles of Incorporation, see Exhibit 2(c) to this Annual Report.

C.Material Contracts

Except as described elsewhere in this Annual Report, all material contracts entered into by us in the past two years preceding the filing of this Annual Report were entered into in the ordinary course of business.

D.Exchange Controls

Foreign Exchange and Foreign Trade Law

The following is a general summary of major Japanese foreign exchange controls regulations applicable to holders of shares of our common stock or voting rights thereunder who are “foreign investors,” as described below. The statements regarding Japanese foreign exchange controls regulations set forth below are based on the laws and regulations in force and as interpreted by the Japanese authorities as of the date of this Annual Report and are subject to subsequent changes in the applicable Japanese laws or interpretations thereof. This summary is not exhaustive of all possible foreign exchange controls considerations that may apply to a particular investor, and potential investors are advised to satisfy themselves as to the overall foreign exchange controls consequences of the acquisition, ownership and disposition of shares of our common stock or voting rights thereunder by consulting their own advisors.

The Foreign Exchange and Foreign Trade Law of Japan and the cabinet orders and ministerial ordinances incidental thereto, collectively known as the Foreign Exchange Law, set forth, among other matters, regulations relating to the receipt by non-residents of Japan of payment with respect to shares to be issued by us and the acquisition and holding of shares and voting rights by non-residents of Japan and foreign investors, both as defined below. It also applies to the acquisition and holding of ADSs representing authority to

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exercise voting rights on shares of our common stock by foreign investors that constitutes an “inward direct investment” as described below.

“Non-residents of Japan” are defined as individuals or corporations other than residents of Japan.

“Residents of Japan” are defined as individuals having domicile or residence within Japan or corporations whose principal offices are located within Japan. Generally, the branches and offices of non-resident corporations which are located in Japan are regarded as residents of Japan while the branches and offices of Japanese corporations located outside Japan are regarded as non-residents of Japan.

“Foreign investors” are defined as:

i.individuals who are non-residents of Japan;

ii.judicial persons or other organizations which are organized under the laws of foreign countries or whose principal offices are located outside Japan (excluding partnerships falling within the definition (iv) below);

iii.corporations of which 50% or more of the voting rights are directly or indirectly held by individuals who are non-residents of Japan or judicial persons or other organizations which are organized under the laws of foreign countries or whose principal offices are located outside Japan (excluding partnerships falling within the definition (iv) below);

iv.(A) partnerships 50% or more of whose contributions are made by (1) individuals who are non-residents of Japan, (2) corporations or other entities which are organized under the laws of foreign countries or whose principal offices are located outside Japan, (3) corporations of which 50% or more of the voting rights are directly or indirectly held by individuals who are non-resident of Japan and corporations or other entities which are organized under the laws of foreign countries or whose principal offices are located outside Japan, (4) corporations, a majority of the officers (or a majority of the officers having the power to represent the corporation) of which are individuals who are non-resident of Japan, or (5) other partnerships a majority of whose operating partners fall under any of (1) through (4), or (B) partnerships a majority of whose operating partners are (i) any of (A)(1) through (A)(5) above, (ii) other partnerships 50% or more of whose contributions are made by any of (A)(1) through (A)(5) above, or (iii) certain limited liability partnerships operating under the Limited Liability Partnership Act; and

v.corporations or other entities where a majority of officers (or a majority of officers having the power of representation) of which are individuals who are non-residents of Japan.

Dividends and Proceeds of Sales

Under the Foreign Exchange Law, dividends paid on, and the proceeds of sales in Japan of, shares held by non-residents of Japan may in general be converted into any foreign currency and repatriated abroad. The acquisition of our shares by non-residents of Japan by way of a stock split is not subject to any notification or reporting requirements. However, under the Foreign Exchange Law, certain procedural requirements may apply to a transfer of funds out of Japan.

Acquisition of Shares

In general, a non-resident of Japan who acquires shares from a resident of Japan is not subject to any prior filing requirement, although the Foreign Exchange Law empowers the Minister of Finance of Japan to require a prior approval for any such acquisition in certain limited circumstances.

Inward Direct Investment in Shares of Listed Companies

For the purpose of the regulations in connection with an “inward direct investment” under the Foreign Exchange Law, Japanese listed companies are classified into the following categories:

(i) companies engaged only in the businesses other than certain businesses (the “Designated Businesses”) designated by the Foreign Exchange Law as Designated Businesses;

(ii) companies engaged in the Designated Businesses other than the certain Designated Businesses designated by the Foreign Exchange Law as core sector businesses (the “Core Sector Designated Businesses”);

(iii) companies engaged in the Core Sector Designated Businesses; and

(iv) companies engaged in the Core Sector Designated Businesses and designated by the Act on the Promotion of Ensuring National Security through Integrated Implementation of Economic Measures as specified essential infrastructure service providers.

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For reference purposes only, the Minister of Finance publishes, and may update from time to time, a list that classifies Japanese listed companies into the above categories, and according to the list published by the Minister of Finance on July 15, 2025, businesses which are currently engaged in by us are classified as category (ii), i.e., the Designated Business other than the Core Sector Designated Businesses.

Definition of Inward Direct Investment

If a foreign investor acquires shares or voting rights in a Japanese company that is listed on a Japanese stock exchange and, as a result of the acquisition, the foreign investor, in combination with any existing holdings, directly or indirectly holds 1% or more of the issued shares or the total number of voting rights in the relevant company, such acquisition constitutes an “inward direct investment.” In addition, acquisition of the authority to exercise, or instruct to exercise, voting rights held by other shareholders that results in the foreign investor, in combination with any existing shareholding, directly or indirectly holding 1% or more of the total number of voting rights in the relevant company, constitutes an “inward direct investment.”

In addition to the acquisitions of shares or voting rights described above, if a foreign investor (i) is granted the authority to exercise proxy voting rights on behalf of other shareholders of the relevant company regarding certain matters which may control substantially or have material influence on the management of such company such as the election or removal of directors or (ii) obtains consent from another foreign investor holding the voting rights in the relevant company to exercise the voting rights in such company jointly, and, in each case, as a result of any of these arrangements, the number of the voting rights directly or indirectly held by the foreign investor, including the total number of the voting rights subject to such proxy, or the sum of the number of the voting rights directly or indirectly held by the foreign investor and such other foreign investors subject to such joint voting agreement, as the case may be, is 10% or more of the total number of voting rights in the relevant company, each such arrangement regarding voting rights (“voting arrangement”) constitutes an “inward direct investment.” Additionally, if a foreign investor who directly or indirectly holds 1% or more of the total voting rights in a Japanese listed company, at a general meeting of shareholders, consents to certain proposals having material influence on the management of such company such as (i) election of such foreign investor or its related persons (as defined in the Foreign Exchange Act) as directors or corporate auditors of the relevant company or (ii) transfer or discontinuation of its business, such consent will also constitute an “inward direct investment.”

Prior Notification Requirements

If a foreign investor intends to consummate an acquisition of shares or voting rights in a Japanese listed company that constitutes an “inward direct investment” as described above, in certain circumstances, such as where the foreign investor is in a country that is not listed on an exemption schedule in the Foreign Exchange Act or where that Japanese company is engaged in the Designated Businesses, prior notification of the relevant inward direct investment must be filed with the Minister of Finance and any other competent Ministers. However, a foreign investor seeking to acquire shares or voting rights in a Japanese listed company or the authority to exercise, either directly or through instructions, voting rights held by other shareholders that constitutes an “inward direct investment” may be eligible for the exemptions from the prior notification requirement, if certain conditions are met.

In the case of an acquisition of shares or voting rights or the authority to exercise, voting rights in a Japanese listed company that is engaged in the Designated Businesses other than Core Sector Designated Businesses, like us, the foreign investor may be exempted from the prior notification requirement if such foreign investor complies with the following conditions:

(i) the foreign investor or its closely-related persons (as defined in the Foreign Exchange Law) will not become directors or corporate auditors of the relevant company;

(ii) the foreign investor will not make certain proposals (as prescribed in the Foreign Exchange Law) at a general meeting of shareholders, including transfer or discontinuation of the Designated Businesses of the relevant company; and

(iii) the foreign investor will not access non-public technical information in relation to the Designated Businesses of the relevant company, or take certain other actions that may lead to the leak of such non-public technical information (as prescribed in the Foreign Exchange Law).

Notwithstanding the above, if a foreign investor falls under a category of disqualified investors designated by the Foreign Exchange Law (including (a) investors who have records of certain sanctions due to violations of the Foreign Exchange Law, (b) foreign governments, etc. (as prescribed in the Foreign Exchange Law), and (c) certain investors who are owned by, or have certain other relationships with, foreign governments, etc. excluding those who are accredited by the Minister of Finance), in no event may such foreign investor be eligible for the exemptions described above. Pursuant to the amendments to the Foreign Exchange Law which took effect in May 2025, the category of the above-mentioned disqualified investors was expanded to include (i) certain foreign investors who have obligations to cooperate with foreign governments, etc. in collecting information pursuant to agreements with foreign governments, etc. or foreign laws and regulations and (ii) certain foreign investors who are owned by, or who have a certain other relationship with, the foreign investors set forth in (i), excluding those who are accredited by the Minister of Finance.

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In addition, if a foreign investor intends to make a voting arrangement with respect to a Japanese listed company engaged in the Designated Businesses or consents to a proposal at a general meeting of shareholders of such company, in each case, that constitutes an “inward direct investment” as described above, in certain circumstances, prior notification of the relevant inward direct investment must be filed with the Minister of Finance and any other competent Ministers. However, exemptions from the prior notification requirements may be available in cases where the relevant voting arrangement is regarding matters other than certain matters which may control substantially or have material influence on the management of the relevant company, such as the election or removal of directors, which would have required prior notification.

Procedures for Prior Notification

If such prior notification is filed, the proposed inward direct investment may not be consummated until after 30 days have passed from the date of filing, although this screening period may be shortened unless the Ministers deem it necessary to review the proposed inward direct investment. The Ministers may extend the screening period up to five months if they deem it necessary to review the proposed inward direct investment and may recommend any modification or abandonment of the proposed inward direct investment and, if the foreign investor does not accept such recommendation, the Ministers may order the modification or abandonment of such inward direct investment. In addition, if the Ministers consider the proposed inward direct investment to be an inward direct investment that is likely to cause damage to the national security of Japan and, if a foreign investor (i) consummates such inward direct investment without filing the prior notification described above; (ii) consummates such inward direct investment before the expiration of the screening period described above; (iii) in connection with such inward direct investment, makes false statements in the prior notification described above; or (iv) does not follow the recommendation or order issued by the Ministers to modify or abandon such inward direct investment, the Ministers may order such foreign investor to dispose of all or part of the shares acquired or take other measures.

Post Facto Reporting Requirements

A foreign investor who consummates an inward direct investment as described above through an acquisition of shares or voting rights or the authority to exercise, directly or through instructions, voting rights in a Japanese listed company that is engaged in the Designated Businesses, but is not subject to the prior notification requirements described above due to the exemptions from such prior notification requirements, in general, must file a report of the relevant inward direct investment with the Minister of Finance and any other competent Ministers having jurisdiction over such Japanese company within 45 days of such inward direct investment when, as a result of such acquisition, the foreign investor (excluding, in the cases of (i) and (ii) below, a foreign investor who falls under a category of certain foreign financial institutions (as prescribed in the Foreign Exchange Law)) directly or indirectly holds (i) 1% or more but less than 3% of the total number of issued shares or voting rights, for the first time, (ii) 3% or more but less than 10% of the total number of issued shares or voting rights, for the first time, or (iii) 10% or more of the total number of issued shares or voting rights.

Deposit and Withdrawal under American Depositary Facility

The deposit of shares with us, in our capacity as custodian and agent for the depositary, in Tokyo, the issuance of ADSs by the depositary to a non-resident of Japan in respect of deposit and withdrawal of the underlying shares upon the surrender of the ADSs, in each case by a foreign investor, where such acquisition of ADSs or withdrawal of the underlying shares constitutes an inward direct investment, in general, a prior notification will be required unless the exemption is available, as noted above, and if such prior notification is not required due to the exemption, a post facto report will be required, as noted above.

Reporting of Substantial Shareholdings

The Financial Instruments and Exchange Act of Japan requires any person who has become, beneficially and solely or jointly, a holder of more than 5% of the total issued shares of capital stock of a company listed on any Japanese financial instruments exchange or whose shares are traded on the over-the-counter market in Japan to file with the director of a competent finance bureau within five business days a report concerning such shareholding.

A similar report must also be filed in respect of any subsequent change of 1% or more in any such holding ratio or any change in material matters set out in reports previously filed, with certain exceptions. For this purpose, shares issuable to such person upon exchange of exchangeable securities, conversion of convertible securities or exercise of share subscription warrants or stock acquisition rights (including those incorporated in bonds with stock acquisition rights) are taken into account in determining both the number of shares held by such holder and the issuer’s total issued shares of capital stock.

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E.Taxation

Japanese Taxation

The following sets forth the material Japanese tax consequences to owners of shares of our common stock or ADSs who are non-resident individuals or non-Japanese corporations without a permanent establishment in Japan to which the relevant income is attributable, which we refer to as “non-resident holders” in this section. The statements regarding Japanese tax laws below are based on the laws in force and as interpreted by the Japanese taxation authorities as at the date of this Annual Report and are subject to changes in the applicable Japanese laws, double taxation treaties, conventions or agreements or interpretations thereof occurring after that date. This summary is not exhaustive of all possible tax considerations that may apply to a particular investor, and potential investors are advised to satisfy themselves as to the overall tax consequences of the acquisition, ownership and disposition of shares of our common stock or ADSs, including specifically the tax consequences under Japanese law, the laws of the jurisdiction of which they are resident and any tax treaty between Japan and their country of residence, by consulting their own tax advisers.

Generally, a non-resident holder of shares of our common stock or ADSs is subject to Japanese withholding tax on dividends paid by us. In the absence of any applicable tax treaty, convention or agreement reducing the rate of withholding tax, the rate of Japanese withholding tax applicable to dividends paid by us to non-resident holders is (i) 15.315% for dividends to be paid on or before December 31, 2047 and (ii) 15.15% for dividends to be paid thereafter, except for dividends paid to any individual non-resident holder who holds 3% or more of our issued shares for which the applicable rate is (a) 20.42% for dividends to be paid on or before December 31, 2047 and (b) 20.2% for dividends to be paid thereafter, pursuant to Japanese tax law.

The Tax Convention establishes the maximum rate of Japanese withholding tax which may be imposed on dividends paid to a U.S. resident not having a permanent establishment in Japan. Under the Tax Convention, the maximum withholding rate for U.S. holders (as defined below) is generally set at 10% of the gross amount distributed. However, the maximum rate is 5% of the gross amount distributed if the recipient is a corporation and owns directly or indirectly, on the date on which entitlement to the dividends is determined, at least 10% of the voting shares of the paying corporation. Furthermore, the amount distributed shall not be taxed if the recipient is (i) a pension fund which is a U.S. resident, provided that such dividends are not derived from the carrying on of a business, directly or indirectly, by such pension fund or (ii) a company with a 50% or more interest in the paying company and satisfies certain other requirements. U.S. holders (as defined below) are urged to consult their own tax advisors with respect to their eligibility for benefits under the Tax Convention.

Japanese tax law provides in general that if the Japanese statutory rate is lower than the maximum rate applicable under tax treaties, conventions or agreements, the Japanese statutory rate as stated above shall be applicable.

Non-resident holders of shares who are entitled to a reduced rate of Japanese withholding tax on payments of dividends on the shares of our common stock by us are required to submit an Application Form for the Income Tax Convention regarding Relief from Japanese Income Tax on Dividends, in advance through a paying handling agent to the relevant tax authority before the payment of dividends. A standing proxy for non-resident holders may provide this application service for the non-resident holders. In this regard, a certain simplified special filing procedure is available for non-resident holders to claim treaty benefits of exemption from or reduction of Japanese withholding tax with respect to dividends to be paid on or after January 1, 2014, by submitting a Special Application Form for Income Tax Convention regarding Relief from Japanese Income Tax and Special Income Tax for Reconstruction on Dividends of Listed Stocks (together with any other required forms and documents). With respect to ADSs, this reduced rate or exemption will be applicable to non-resident holders of ADSs if the depositary or its agent submits two Application Forms (one before payment of dividends and the other within eight months after the record date concerning such payment of dividends), together with certain other documents. To claim this reduced rate or exemption, non-resident holders of ADSs will be required to file a proof of taxpayer status, residence and beneficial ownership, as applicable, and to provide other information or documents as may be required by the depositary. Non-resident holders who are entitled, under any applicable tax treaty, to a reduced rate of Japanese withholding tax below the rate otherwise applicable under Japanese tax law, or exemption therefrom, as the case may be, but fail to submit the required application in advance may nevertheless be entitled to claim a refund from the relevant Japanese tax authority of withholding taxes withheld in excess of the rate under an applicable tax treaty (if such non-resident holders are entitled to a reduced treaty rate under the applicable tax treaty) or the full amount of tax withheld (if such non-resident holders are entitled to an exemption under the applicable tax treaty), as the case may be, by complying with a certain subsequent filing procedure. We do not assume any responsibility to ensure withholding at the reduced rate, or an exemption therefrom, for non-resident holders who would be so eligible under an applicable tax treaty but where the required procedures as stated above are not followed.

Gains derived from the sale or other disposition of shares of our common stock or ADSs by a non-resident holder are not, in general, subject to Japanese income or corporation taxes or other Japanese taxes.

Any deposits or withdrawals of shares of our common stock by a non-resident holder in exchange for ADSs are not subject to Japanese income or corporation tax.

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Japanese inheritance and gift taxes, at progressive rates, may be payable by an individual who has acquired shares of our common stock or ADSs from another individual as legatee, heir or donee, even if none of the individual, the decedent or the donor is a Japanese resident.

U.S. Taxation

The following sets forth the material U.S. federal income tax consequences of the ownership of shares and ADSs by a U.S. holder, as defined below. This summary is based on U.S. federal income tax laws, including the U.S. Internal Revenue Code of 1986, or the Code, its legislative history, existing and proposed Treasury regulations thereunder, published rulings and court decisions, and the Tax Convention (as defined above), all of which are subject to change, possibly with retroactive effect.

The following summary is not a complete analysis or description of all potential U.S. federal income tax consequences to a particular U.S. holder. It does not address all U.S. federal income tax considerations that may be relevant to all categories of potential purchasers, certain of which (such as banks or other financial institutions, insurance companies, dealers in securities, tax-exempt entities, non-U.S. persons, persons holding a share or an ADS as part of a “straddle,” “hedge,” conversion or integrated transaction, holders whose “functional currency” is not the U.S. dollar, holders liable for alternative minimum tax, holders required to report income no later than when such income is reported on an “applicable financial statement,” and holders of 10% or more of our shares by vote or value) are subject to special tax treatment. This summary does not address any foreign, state, local or other tax consequences of investments in our shares or ADSs.

This summary addresses only shares or ADSs that are held as capital assets within the meaning of Section 1221 of the Code.

As used herein, a “U.S. holder” is a beneficial owner of shares or ADSs, as the case may be, that is:

•a citizen or resident of the United States as determined for U.S. federal income tax purposes;

•a corporation or other entity taxable as a corporation created or organized under the laws of the United States, any state thereof or the District of Columbia;

•an estate, the income of which is subject to U.S. federal income tax regardless of its source; or a trust

•the administration of which is subject to (1) the supervision of a court within the United States and (2) the control of one or more U.S. persons as described in Section 7701(a)(30) of the Code; or

•that has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

If a partnership holds shares or ADSs, the tax treatment of a partner will generally depend on the status of the partner and the activities of the partnership. If you are a partner of a partnership holding shares or ADSs, you should consult your tax advisor.

We urge U.S. holders to consult their own tax advisors concerning the U.S. federal, state and local and other tax consequences to them of the purchase, ownership and disposition of shares or ADSs.

This summary is based in part on the assumption that each obligation under the deposit agreement and any related agreement will be performed in accordance with its respective terms. Subject to the discussion in the next paragraph, for U.S. federal income tax purposes, holders of ADSs will be treated as the owners of the shares represented by the ADSs. Accordingly, withdrawals or deposits of shares in exchange for ADSs generally will not be subject to U.S. federal income tax.

The U.S. Treasury has expressed concerns that intermediaries in the chain of ownership between the holder of an ADS and the issuer of the security underlying the ADS may be taking actions that are inconsistent with the beneficial ownership of the underlying shares (for example, pre-releasing ADSs to persons who do not have beneficial ownership of the securities underlying the ADSs). Accordingly, the discussion on the creditability of Japanese taxes and the availability of the reduced rate of tax for dividends received by certain non-corporate U.S. holders, each as described below, could be affected by actions taken by intermediaries in the chain of ownership between the holder of ADSs and us if, as a result of such actions, the holders of ADSs are not properly treated as beneficial owners of the underlying shares. We are not aware of any intention to take any such actions, and accordingly, the remainder of this discussion assumes that holders of ADSs will be properly treated as beneficial owners of the underlying shares.

Special adverse U.S. federal income tax rules apply if a U.S. holder holds shares or ADSs of a company that is treated as a “passive foreign investment company” (a “PFIC”) for any taxable year during which the U.S. holder held shares or ADSs, as discussed in more detail below. U.S. holders should consult their own tax advisors as to the potential application of the PFIC rules to their ownership and disposition of shares or ADSs.

Taxation of Dividends

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Subject to the application of the PFIC rules discussed below, U.S. holders will include the gross amount of any distribution received with respect to shares or ADSs (before reduction for Japanese withholding taxes), to the extent paid out of our current or accumulated earnings and profits (as determined for U.S. federal income tax purposes), as ordinary income in their gross income. As discussed below, for certain U.S. holders, dividends may be eligible for a reduced rate of taxation. The amount of distribution of property other than cash will be the fair market value of such property on the date of the distribution. Dividends received by a U.S. holder will not be eligible for the “dividends-received deduction” allowed to U.S. corporations in respect of dividends received from other U.S. corporations. To the extent that an amount received by a U.S. holder exceeds such holder’s allocable share of our current earnings and profits, such excess will be applied first to reduce such holder’s tax basis in its shares or ADSs, thereby increasing the amount of gain or decreasing the amount of loss recognized on a subsequent disposition of the shares or ADSs. Then, to the extent such distribution exceeds such U.S. holder’s tax basis, such excess will be treated as capital gain. However, we do not maintain calculations of our earnings and profits in accordance with U.S. federal income tax principles, and U.S. holders should therefore assume that any distribution by us with respect to shares or ADSs will constitute ordinary dividend income. The amount of the dividend will be the U.S. dollar value of the Japanese yen payments received. This value will be determined at the spot Japanese yen/U.S. dollar rate on the date the dividend is received by the depositary in the case of U.S. holders of ADSs, or by the shareholder in the case of U.S. holders of shares, regardless of whether the dividend payment is in fact converted into U.S. dollars at that time. If the Japanese yen received as a dividend are not converted into U.S. dollars on the date of receipt, a U.S. holder will have basis in such Japanese yen equal to their U.S. dollar value on the date of receipt, and any foreign currency gains or losses resulting from the conversion of the Japanese yen will generally be treated as U.S. source ordinary income or loss. If the Japanese yen received as a dividend are converted into U.S. dollars on the date of receipt, a U.S. holder will generally not be required to recognize foreign currency gain or loss in respect of the dividend income.

If a U.S. holder is eligible for benefits under the Tax Convention, the holder may be able to claim a reduced rate of Japanese withholding tax. All U.S. holders should consult their tax advisors about their eligibility for reduction of Japanese withholding tax. A U.S. holder may claim a deduction or a foreign tax credit, subject to other applicable limitations, only for tax withheld at the appropriate rate. A U.S. holder would not be allowed a foreign tax credit for withholding tax for any portion of the tax that could have been avoided by claiming benefits under the Tax Convention. For foreign tax credit limitation purposes, the dividend will be income from sources outside the United States. The limitation on foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends we pay will constitute “passive income” or, in the case of certain U.S. holders, “financial services income.” However, Treasury regulations addressing foreign tax credits (the “Foreign Tax Credit Regulations”) impose additional requirements for foreign taxes to be eligible for a foreign tax credit, and there can be no assurance that those requirements will be satisfied if a U.S. holder does not elect to apply the benefits of the Tax Convention. The Department of the Treasury and the IRS are considering proposing amendments to the Foreign Tax Credit Regulations. In addition, recent notices from the IRS provide temporary relief by allowing taxpayers that comply with applicable requirements to apply many aspects of the foreign tax credit regulations as they previously existed (before the release of the current Foreign Tax Credit Regulations) for taxable years ending before the date that a notice or other guidance withdrawing or modifying the temporary relief is issued (or any later date specified in such notice or other guidance). Further, in certain circumstances, if a U.S. holder:

•has held shares or ADSs for less than a specified minimum period during which such U.S. holder is not protected from the risk of loss; or

•is obligated to make payments related to the dividends,

such U.S. holder will not be allowed a foreign tax credit for foreign taxes imposed on dividends paid on shares or ADSs. Instead of claiming a foreign tax credit, a U.S. holder may be able to deduct Japanese withholding taxes on dividends in computing such holder’s taxable income, subject to generally applicable limitations under U.S. law (including that a U.S. holder is not eligible for a deduction for creditable foreign income taxes paid or accrued in a taxable year if such U.S. holder claims a foreign tax credit for any foreign income taxes paid or accrued in the same taxable year). The rules governing U.S. foreign tax credits are very complex and U.S. holders should consult their tax advisors regarding the availability of foreign tax credits under their particular circumstances.

Subject to applicable exceptions with respect to short-term and hedged positions, qualified dividends received by non-corporate U.S. holders from a qualified corporation may be eligible for reduced rates of taxation. Qualified corporations include those foreign corporations eligible for the benefits of a comprehensive income tax treaty with the United States that the U.S. Treasury Department determines to be satisfactory for these purposes and that includes an exchange of information provision. The Tax Convention meets these requirements. Subject to the PFIC discussion below, we believe that we are a qualified foreign corporation and that dividends received by U.S. investors with respect to our shares or ADSs will be qualified dividends. Dividends received by U.S. investors from a foreign corporation that was a PFIC in either the taxable year of the distribution or the preceding taxable year are not qualified dividends.

Passive Foreign Investment Company Considerations

Special adverse U.S. federal income tax rules apply if a U.S. holder holds shares or ADSs of a company that is treated as a PFIC, for any taxable year during which the U.S. holder held shares or ADSs. A foreign corporation will be considered a PFIC for any taxable year in which (i) 75% or more of its gross income is passive income (the “income test”), or (ii) 50% or more of the average

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fair market value of its assets (determined quarterly) is attributable to assets that produce or are held for the production of passive income (the “asset test”). For this purpose, passive income generally includes dividends, interest, royalties, rents and certain gains from the sale of stock and securities. If a foreign corporation owns at least 25% (by value) of the stock of another corporation, the corporation will be treated, for purposes of the PFIC tests, as owning a proportionate share of the other corporation’s assets and receiving its proportionate share of the other corporation’s income. The determination of whether a foreign corporation is a PFIC is made annually.

Multiple sets of proposed Treasury regulations and an earlier IRS notice would convert what would otherwise be passive income into non-passive income when such income is banking income earned by an active bank. The various proposed Treasury regulations and IRS notice have different (and in some respects inconsistent) requirements for qualifying as an active bank, and for determining the banking income that may be excluded from passive income under this special rule for active banks. Moreover, the proposed Treasury regulations (some of which have been outstanding since 1995, and others of which were recently issued in 2021) will not be effective unless finalized. There can be no assurance that the proposed Treasury regulations will be finalized in their current form. Because final regulations have not been issued, the definition of banking income for purposes of the active bank exception is unclear under both the proposed Treasury regulations and the notice. Based upon certain management estimates and assumptions, we do not believe that we were a PFIC for the year ended March 31, 2026. The determination of whether we are a PFIC must be made annually and involves a fact-intensive analysis based upon, among other things, the composition of our income and assets and the value of our assets from time to time. It is possible that we may become a PFIC in the fiscal year ending March 31, 2027 or any future taxable year due to changes in our income or asset composition or changes to applicable Treasury and IRS guidance (including as a result of the final regulations). In addition, a decrease in the price of our shares may also result in our becoming a PFIC. If we were classified as a PFIC in any year during which a U.S. holder owns shares or ADSs and the U.S. holder does not make a “mark-to-market” election, as discussed below, we generally would continue to be treated as a PFIC as to such U.S. holder in all succeeding years, regardless of whether we continue to meet the income or asset test discussed above. U.S. Holders are urged to consult their own tax advisors with respect to the tax consequences to them if we were to become a PFIC for any taxable year in which they own our shares or ADSs.

If we were classified as a PFIC for any taxable year during which a U.S. holder holds our shares or ADSs, the U.S. holder would generally not receive capital gains treatment upon the sale of the shares or ADSs and would be subject to increased tax liability (generally including an interest charge) upon the sale or other disposition of the shares or ADSs or upon the receipt of certain distributions treated as “excess distributions,” unless the U.S. holder makes the mark-to-market election described below. An excess distribution generally would be any distribution to a U.S. holder with respect to shares or ADSs during a single taxable year that is greater than 125% of the average annual distributions received by a U.S. holder with respect to shares or ADSs during the three preceding taxable years or, if shorter, during the U.S. holder’s holding period for the shares or ADSs.

Mark-to-Market Election. If the shares or ADSs are regularly traded on a registered national securities exchange or certain other exchanges or markets, then such shares or ADSs would constitute “marketable stock” for purposes of the PFIC rules, and a U.S. holder would not be subject to the foregoing PFIC rules if such holder made a mark-to-market election. After making such an election, the U.S. holder generally would include as ordinary income each year during which the election is in effect and during which we are a PFIC the excess, if any, of the fair market value of our shares or ADSs at the end of the taxable year over such holder’s adjusted basis in such shares or ADSs. These amounts of ordinary income would not be eligible for the favorable tax rates applicable to qualified dividend income or long-term capital gains. A U.S. holder also would be allowed to take an ordinary loss in respect of the excess, if any, of the holder’s adjusted basis in our shares or ADSs over their fair market value at the end of the taxable year (but only to the extent of the net amount of income that was previously included as a result of the mark-to-market election). A U.S. holder’s tax basis in our shares or ADSs would be adjusted to reflect any income or loss amounts resulting from a mark-to-market election. If made, a mark-to-market election would be effective for the taxable year for which the election was made and for all subsequent taxable years unless the shares or ADSs cease to qualify as “marketable stock” for purposes of the PFIC rules or the IRS consented to the revocation of the election. In the event that we are classified as a PFIC, U.S. holders are urged to consult their tax advisors regarding the availability of the mark-to-market election, and whether the election would be advisable in the holder’s particular circumstances.

QEF Election. The PFIC rules outlined above also would not apply to a U.S. holder if such holder alternatively elected to treat us as a “qualified electing fund” or “QEF.” An election to treat us as a QEF will not be available, however, if we do not provide the information necessary to make such an election. We will not provide U.S. holders with the information necessary to make a QEF election, and thus, the QEF election will not be available with respect to our shares.

Notwithstanding any election made with respect to our shares, dividends received with respect to our shares will not constitute “qualified dividend income” if we are a PFIC in either the year of the distribution or the preceding taxable year. Dividends that do not constitute qualified dividend income are not eligible for taxation at the reduced tax rate described above in “—Taxation of Dividends.” Instead, such dividends would be subject to tax at ordinary income rates.

If a U.S. holder owns shares or ADSs during any year in which we are a PFIC, the U.S. holder must also file IRS Form 8621 regarding distributions received on the shares or ADSs, any gain realized on the shares or ADSs, and any “reportable election” in accordance with the instructions to such form. In addition, each U.S. holder is required to file a separate IRS Form 8621 if such U.S. holder owns shares or ADSs during any year in which we are a PFIC whether or not such U.S. holder received distributions on the

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shares or ADSs, realized a gain on the shares or ADSs or made a “reportable election” during such year. U.S. holders are urged to consult their own tax advisors concerning the U.S. federal income tax consequences of holding shares or ADSs if the Company were considered a PFIC in any taxable year.

Taxation of Capital Gains

Subject to the application of the PFIC rules discussed above, upon a sale or other disposition of shares or ADSs, a U.S. holder will recognize a gain or loss in an amount equal to the difference between the U.S. dollar value of the amount realized and the U.S. holder’s tax basis, determined in U.S. dollars, in such shares or ADSs. Such gains or losses will be capital gains or losses and will be long-term capital gains or losses if the U.S. holder’s holding period for such shares or ADSs exceeds one year. Long-term capital gains of non-corporate U.S. holders (including individuals) are generally eligible for reduced rates of taxation. A U.S. holder’s adjusted tax basis in its shares or ADSs will generally be the cost to the holder of such shares or ADSs. Any such gains or losses realized by a U.S. holder upon disposal of the shares or ADSs will generally be income or loss from sources within the United States for foreign tax credit limitation purposes. The deductibility of capital losses is subject to limitations under the Code.

Information Reporting and Backup Withholding

Dividends paid on shares or ADSs to a U.S. holder, or proceeds from a U.S. holder’s sale or other disposition of shares or ADSs, may be subject to information reporting requirements. Those dividends or proceeds from sale or disposition may also be subject to backup withholding unless the U.S. holder:

•is a corporation or other exempt recipient, and, when required, demonstrates this fact; or

•provides a correct taxpayer identification number on a properly completed U.S. IRS Form W-9 or other appropriate form which certifies that the U.S. holder is not subject to backup withholding and otherwise complies with applicable requirements of the backup withholding rules.

Backup withholding is not an additional tax. Any amount withheld under these rules will be creditable against the U.S. holder’s U.S. federal income tax liability or refundable to the extent that it exceeds such liability if the U.S. holder provides the required information to the IRS. If a U.S. holder is required to and does not provide a correct taxpayer identification number, the U.S. holder may be subject to penalties imposed by the IRS. All holders should consult their tax advisors as to their qualification for the exemption from backup withholding and the procedure for obtaining an exemption.

In addition, certain U.S. holders who are individuals that hold certain foreign financial assets (which may include our shares or ADSs) are required to report information relating to such assets, subject to certain exceptions. U.S. holders should consult their tax advisors regarding the effect, if any, of this requirement on their ownership and disposition of our shares and ADSs.

Additional Tax on Investment Income

U.S. holders that are individuals, estates or trusts and whose income exceeds certain thresholds will be subject to an additional 3.8% tax on unearned income, including, among other things, dividends on, and capital gains from the sale or other taxable disposition of, shares or ADSs, subject to certain limitations and exceptions.

F.Dividends and Paying Agents

Not applicable.

G.Statement by Experts

Not applicable.

H.Documents on Display

We file periodic reports and other information with the SEC pursuant to the rules and regulations of the SEC that apply to foreign private issuers. The SEC maintains a web site (http://www.sec.gov) that contains periodic reports and other information regarding registrants, including us, electronically filed with the SEC. Except otherwise specified in this Annual Report, no information is incorporated by reference in this Annual Report (including, without limitation, information on our website at https://www.mufg.jp/).

I.Subsidiary Information

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Please refer to the discussion under “Item 4.C. Information on the Company—Organizational Structure.”

J.Annual Report to Security Holders

We furnished an English translation of our local annual report to security holders for the fiscal year ended March 31, 2026 in electronic format as exhibits to a report on Form 6-K, dated May 29, 2026.

Following the filing of our annual report on Form 20-F for the fiscal year ended March 31, 2025, we furnished an English translation of our local annual disclosure document entitled “MUFG Report 2025” in electronic format as an exhibit to a report on Form 6-K, dated August 26, 2025.

Item 11. Quantitative and Qualitative Disclosures about Credit, Market and Other Risk.

In the current market and regulatory environment, financial groups such as us are expected to ensure increasingly more sophisticated and comprehensive risk management. Risk management plays an increasingly important role in our operations as a financial group operating globally through various subsidiaries.

We identify various risks arising from businesses based on group-wide uniform criteria and implement integrated risk management to ensure a stronger financial condition and to maximize shareholder value. Based on this approach, we identify, measure, control and monitor a wide variety of risks so as to achieve a stable balance between earnings and risks.

Not all risks, including certain climate-related risks, can be managed in a quantitative manner due either to the nature of the risk or the lack of quantitative inputs available to us. Where quantitative assessment is not feasible, we use a qualitative approach in an effort to manage the associated future risks.

We undertake risk management to create an appropriate capital structure and to achieve optimal allocation of resources. However, our risk management measures may not be fully effective in identifying all risks or mitigating the impact of any materialized risk on us.

Risk Classification

At the holding company level, we broadly classify and define risk categories faced by the Group, including those that are summarized below. Group companies perform more detailed risk management based on their respective operations.

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Type of Risk						Definition

Credit Risk						The risk of financial loss in credit assets (including off-balance sheet instruments) caused by deterioration in the credit condition of counterparties. This category includes country risk.

Market Risk						The risk of financial loss where the value of our assets and liabilities could be adversely affected by changes in market variables such as interest rates, securities prices and foreign exchange rates. Market liquidity risk is the risk of financial loss caused by the inability to secure market transactions at the required volume or price levels as a result of market turbulence or lack of trading liquidity.

Funding Liquidity Risk						The risk of incurring loss if a poor financial position at a group company hampers the ability to meet funding requirements or necessitates fund procurement at interest rates markedly higher than normal.

Operational Risk						The risk of loss resulting from inadequate or failed internal processes, people or systems, or from external events.

•Operations Risk						The risk of incurring losses arising from negligence of correct operational processing, incidents or misconduct involving officers or staff, as well as risks similar to this risk.

•Information Risk						The risk of loss caused by loss, alteration, falsification or leakage of personal or other confidential information, as well as risks similar to such risk.

• IT Risk						The risk of loss arising from destruction, suspension, malfunction or misuse of IT, or unauthorized alteration and leakage of electronic data caused by insufficient IT systems planning, development or operations or by vulnerabilities of or external threats to IT system security, including cybersecurity, as well as risks similar to such risk.

•Tangible Asset Risk						The risk of loss due to damage to tangible assets or deterioration in the operational environment caused by disasters or inadequate asset maintenance, as well as risks similar to this risk. Tangible assets include movable and immovable property, including owned or leased land and buildings, facilities incidental to buildings, and fixtures and fittings.

• Personnel Risk						The risk of loss due to an outflow or loss of human resources or deterioration in employee morale, as well as risks similar to this risk.

•Incompliance with Laws and Regulations Risk						The risk of loss due to failure to comply with laws and regulations, as well as risks similar to such risk.

• Legal Risk						The risk of loss due to failure to identify or address legal issues relating to contracts and other business operations or insufficient handling of lawsuits, as well as risks similar to such risk.

Reputation Risk						The risk of harm to our corporate value arising from perceptions of our customers, shareholders, investors or other stakeholders and in the market or society that we deviate from their expectations or confidence.

Model Risk						The risk of loss due to decision-making based on information provided by an inaccurate model or the misuse of a model.

Risk Management System

We have adopted an integrated risk management system to promote close cooperation among the holding company and group companies. The holding company and our banking and securities subsidiaries each have appointed a chief risk officer and established an independent risk management division. The board of directors of the holding company determines risk management policies for various types of risks based on the discussions at, and reports and recommendations from, committees established specially for risk management purposes. The holding company has established committees to oversee management in managing risks relevant to the Group. Following the fundamental risk management policies determined by the board of directors, each group company establishes its own systems and procedures for identifying, analyzing and managing various types of risks from both quantitative and qualitative perspectives. The holding company seeks to enhance group-wide risk identification, to integrate and improve the Group’s risk management system and related methods, to maintain asset quality, and to eliminate concentrations of specific risks.

The following diagram summarizes our integrated risk management framework:

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Risk Management System

Crisis Management Framework

In order to have a clear critical response rationale and associated decision-making criteria, we have developed systems designed to ensure that our operations are not interrupted or can be restored to normal quickly in the event of a crisis such as a natural disaster, cyber-attack, system failure or a pandemic of an infectious disease so as to minimize any disruption to customers and markets. A crisis management team within the holding company is the central coordinating body in the event of any emergency. Based on information collected from crisis management personnel at the major subsidiaries, this central body would assess the overall impact of a crisis on the Group’s business and establish task forces that could implement all countermeasures to restore full operations. We have business

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continuity plans to maintain continuous operational viability in the event of natural disasters, cyber-attacks, system failures and other types of emergencies. Regular training drills are conducted to upgrade the practical effectiveness of these systems.

We conduct a comprehensive review of our existing business continuity plan to more effectively respond to such extreme scenarios, and contemplate and implement measures to augment our current business continuity management framework, including enhancing our off-site back-up data storage and other information technology systems.

Implementation of Basel Standards

In determining capital ratios under the FSA guidelines implementing Basel III, we and our major banking subsidiaries have used the Advanced Internal Ratings-Based approach, or the AIRB approach, to calculate capital requirements for credit risk since March 31, 2024. Since the same date, we have reflected market risk in our risk-weighted assets by using the Standardized Approach and the Simplified Standardized Approach, and have reflected operational risk in our risk-weighted assets by using the Standardized Measurement Approach.

Based on the Basel III framework, the Japanese capital ratio framework has been revised to implement the more stringent requirements, which are being implemented in phases beginning on March 31, 2013. In addition, based on the final Basel III reforms, the Japanese capital ratio framework has been further revised to implement the reforms, which are being applied to Japanese banking institutions with international operations conducted through foreign offices, including us, in phases beginning on March 31, 2024, and are scheduled to be fully implemented from March 31, 2029. Likewise, local banking regulators outside of Japan have begun, or are expected, to revise the capital and liquidity requirements imposed on our subsidiaries and operations in those countries to implement the more stringent requirements of Basel III as adopted in those countries. We intend to carefully monitor further developments with an aim to enhance our corporate value and maximize shareholder value by integrating the various strengths within the Group. For more information on the Basel regulatory framework and requirements, see “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation.”

Credit Risk Management

We have established risk management systems to maintain asset quality, manage credit risk exposure and achieve earnings commensurate with risk.

MUFG and its major banking subsidiaries apply a uniform credit rating system for asset evaluation and assessment, loan pricing, and quantitative measurement of credit risk. This system also underpins the calculation of capital requirements and the management of credit portfolios. We continually seek to upgrade our credit portfolio management, or CPM, expertise to achieve an improved risk-adjusted return based on the Group’s credit portfolio status and flexible response capability to economic and other external changes.

Credit Risk Management System

The credit portfolios of our banking and securities subsidiaries are monitored and assessed on a regular basis by the holding company to maintain and improve asset quality. A uniform credit rating and asset evaluation and assessment system is used to ensure timely and proper evaluation of all credit risks. Under our credit risk management system, each of our subsidiaries in the banking, securities, consumer finance, and leasing businesses, manages its respective credit risk on a consolidated basis based on the attributes of the risk, while the holding company oversees and manages credit risk on an overall group-wide basis. The holding company also convenes regular committee meetings to monitor credit risk management at banking subsidiaries and to issue guidance where necessary.

Each major banking subsidiary has in place a system of checks and balances in which a credit administration section that is independent of the business promotion sections screens individual transactions and manages the extension of credit. At the management level, regular meetings of the Credit & Investment Management Committee and related deliberative bodies ensure full discussion of important matters related to credit risk management. Besides such checks and balances and internal oversight systems, credit examination sections also undertake credit testing and evaluation to ensure appropriate credit risk management.

The following diagram summarizes the credit risk management framework for our major banking subsidiaries:

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Credit Rating System

MUFG and its major banking subsidiaries use an integrated credit rating system to evaluate credit risk. The credit rating system consists primarily of borrower rating, facility risk rating, structured finance rating and asset securitization rating. Beginning April 1, 2025, we introduced our new credit rating system with a new financial scoring model and a new framework for qualitative assessment of a borrower’s financial strength and debt service capacity in order to enhance our credit risk management. The changes to our credit rating system did not have a material impact on the consolidated financial statements.

Country risk is also rated on a uniform group-wide basis. Our country risk rating is reviewed periodically to take into account relevant political and economic factors, including foreign currency availability.

Risk exposure for small retail loans, such as residential mortgage loans, is managed by grouping loans into various pools and assigning ratings at the pool level.

Borrower rating

Our borrower rating classifies borrowers into 15 grades based on evaluations of their expected debt-service capability over the next three to five years.

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The following table sets forth our borrower grades:

Definition of MUFG Borrower Rating


MUFG Borrower Rating		MUFG Borrower Rating Definition
1		The capacity to meet financial commitments is extremely certain, and the borrower has the highest level of creditworthiness.
2		The capacity to meet financial commitments is highly certain, but there are some elements that may result in lower creditworthiness in the future.
3		The capacity to meet financial commitments is sufficiently certain, but there is the possibility that creditworthiness may fall in the long run.
4		There are no problems concerning the capacity to meet financial commitments, but there is the possibility that creditworthiness may fall in the long run.
5		There are no problems concerning the capacity to meet financial commitments, and creditworthiness is in the middle range.
6		There are no problems concerning the capacity to meet financial commitments presently, but there are elements that require attention if the situation changes.
7		There are no problems concerning the capacity to meet financial commitments presently, but long-term stability is poor.
8		There are no problems concerning the capacity to meet financial commitments presently, but long-term stability is poor, and creditworthiness is relatively low.
9		The capacity to meet financial commitments is somewhat poor, and creditworthiness is the lowest among “Normal” customers.
		Borrowers who must be closely monitored because of the following business performance and financial conditions:
10 through 12		(1)Borrowers who have problematic business performance, such as virtually delinquent principal repayment or interest payment;
		(2)Borrowers whose business performance is unsteady, or who have unfavorable financial conditions;
		(3) Borrowers who have problems with loan conditions and for whom interest rates have been reduced or shelved.
	10	Although business problems are not serious or their improvement is seen to be remarkable, there are elements of potential concern with respect to the borrower’s management, and close monitoring is required.
	11	Business problems are serious, or require long-term solutions. Serious elements concerning business administration of the borrower have emerged, and subsequent debt repayment needs to be monitored closely.
	12	Borrowers who fall under the criteria of Rating 10 or 11 and have a loan concession granted. Borrowers who have “Loans contractually past due 90 days or more.” (As a rule, delinquent borrowers are categorized as “Likely to Become Bankrupt,” but the definition here applies to borrowers delinquent for 90 days or more because of inheritance and other special reasons.)
13		Borrowers who pose a serious risk with respect to debt repayment and with whom loss is likely to occur in the course of transactions. While still not bankrupt, these borrowers are in financial difficulty, with poor progress in achieving restructuring plans, and are likely to become bankrupt in the future.
14		While not legally bankrupt, borrowers who are considered to be virtually bankrupt because they are in serious financial difficulty and have no prospects for an improvement in their business operations.
15		Borrowers who are legally bankrupt (i.e., who have no prospects for continued business operations because of non-payment, suspension of business, voluntary liquidation, or filing for legal liquidation).

Japanese banks were historically required to use the following categories of borrowers under the then applicable FSA inspection manual, which was abolished in December 2019, and are currently expected to use them as a basis for their borrower categorization with appropriate adjustments under the FSA’s discussion paper:

•Normal borrowers (generally corresponding to borrowers in categories 1 through 9 in our ratings), which are borrowers that are performing well, with no significant financial concerns,

•Borrowers requiring close watch (generally corresponding to borrowers in categories 10 through 12 in our ratings), which include loans that have been amended to allow for delays or forgiveness of interest payments, borrowers experiencing difficulty in complying with loan terms and conditions and borrowers that are recording losses or performing badly,

•Borrowers likely to become bankrupt (generally corresponding to borrowers in category 13 in our ratings), which are borrowers who pose a serious risk with respect to debt repayment and with whom loss is likely to occur in the course of transactions. While still not bankrupt, these borrowers are in financial difficulty, with poor progress in achieving restructuring plans, and are likely to become bankrupt in the future,

•Virtually bankrupt borrowers (generally corresponding to borrowers in category 14 in our ratings), which are not legally bankrupt, but borrowers who are considered to be virtually bankrupt because they are in serious financial difficulty and have no prospects for an improvement in their business operations, and

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•Bankrupt borrowers or de facto bankrupt borrowers (generally corresponding to borrowers in category 15 in our ratings), which are borrowers who are legally bankrupt (i.e., who have no prospects for continued business operations because of non-payment, suspension of business, voluntary liquidation, or filing for legal liquidation proceedings).

The primary data utilized in our assessment of borrowers include the borrower’s financial statements and notes thereto as well as other public disclosure made by the borrower. In addition, when appropriate and possible, we obtain non-public financial and operating information from borrowers, such as the borrower’s business plan, borrower’s self-evaluation of its operating assets and other borrower information about its business and products.

Based on the borrower and industry information, we assign borrower ratings mainly by applying financial scoring models—either developed internally or by third-party vendors, depending on the borrower’s attributes, whether the borrower is domestic or foreign, and whether the borrower is a corporate entity or another type of legal entity (such as a school, hospital or fund).

For example, for general business corporations, which constitute the largest borrower attribute in our current loan portfolio in terms of number of borrowers, we have adopted an internally developed financial scoring model, exclusively designed and developed for such attribute. We have selected various financial ratios that we believe to be useful and meaningful to quantitatively measure and assess the borrowers’ financial standing and repayment capability. Such financial ratios represent, among other things, borrowers’ profitability, stability, company size, cash flow and liquidity. The model is periodically tested against historical results. The following is an illustration of some of the financial ratios we utilize as part of our financial scoring model:

•To measure profitability: Gross profit to sales, and profit before tax to sales,

•To measure stability: Debt to equity ratio, and debt to capital ratio, and

•To measure company size: Total asset and total equity.

The financial score obtained through the models is reviewed and, when necessary, adjusted to reflect our qualitative assessment of the borrower’s financial strength and other factors that could affect the borrower’s ability to service the debt. For example, we take into account: capability of turning around the business (in case of borrowers with losses) or recovering positive net worth (in case of borrowers with negative net worth), and factors relating to business volatility, capability of management and governance, funding availability and lack of liquidity, as well as our assessment of the probability of receiving support from parent companies (if the borrower is a subsidiary of a large listed company).

When adjusting the results of primary financial scoring assigned to borrowers with losses, we consider the severity of losses and the possibility of improving operating results. We analyze and assess whether the loss is temporary, the trend in operating results is improving, or the loss is expected to continue for an extended period. When adjusting the results of primary financial scoring assigned to borrowers with losses or borrowers with negative net worth, we also analyze whether the borrower can return to a positive net worth, and the time period needed to achieve such recovery (one to two years, three to five years, or five years or more).

In addition, adjustments based on business volatility take into account business volatility arising from industry factors and borrower specific factors, such as restrictions and entry barriers, market volatility, and portfolio diversification. Adjustments based on capability of management and governance reflect our assessment of management’s capability to formulate and execute business strategies that may significantly affect future business operations, as well as the borrower’s risk management capability and organizational management capability. Adjustments based on funding availability and lack of liquidity reflect the possibility that the borrower may face future liquidity constraints, taking into account factors such as its banking relationships, access to capital markets and diversity of funding sources.

When assessing the probability of receiving support from parent companies, various factors are examined, such as the parent company’s credit standing and support policy, the extent of management control exercised by the parent company, and the borrower’s strategic positioning within the corporate group.

In addition, we consider outside ratings, and our internal borrower ratings may be adjusted when deemed appropriate.

Facility risk rating

Facility risk rating is used to evaluate and classify the quality of individual credit facilities, including guarantees and collateral. Ratings are assigned by quantitatively measuring the estimated loss rate of a facility in the event of a default.

Structured finance rating and asset securitization rating

Structured finance rating and asset securitization rating are used to evaluate and classify the quality of individual credit facilities, including guarantees and collateral, and focus on the structure, including the applicable credit period, of each credit facility. In

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evaluating the debt service potential of a credit facility, we scrutinize its underlying structure to determine the likelihood of the planned future cash flows being achieved.

Pool assignment

Each major banking subsidiary has its own system for pooling and rating small retail loans designed to reflect the risk profile of its loan portfolios.

Asset evaluation and assessment system

The asset evaluation and assessment system is used to classify assets held by us according to the probability of collection and the risk of any impairment in value based on borrower classifications consistent with the borrower ratings and the status of collateral, guarantees, and other factors.

The system is used to conduct write-offs and allocate allowances against credit risk in a timely and adequate manner.

Quantitative Analysis of Credit Risk

MUFG and its major banking subsidiaries manage credit risk by monitoring credit amount and expected losses, and run simulations based on internal models to estimate the maximum amount of credit risk. These models are used for internal management purposes, including loan pricing and measuring economic capital.

When quantifying credit risk amounts using the internal models, MUFG and its major banking subsidiaries consider various parameters, including the probability of default, loss given default, and exposure at default used in their borrower ratings, facility risk ratings and pool assignments as well as any credit concentration risk in particular borrower groups or industry sectors. MUFG and its major banking subsidiaries also share credit portfolio data in appropriate cases.

Loan Portfolio Management

We aim to achieve and maintain levels of earnings commensurate with credit risk exposure. Products are priced to take into account expected losses, based on the internal credit ratings.

We assess and monitor loan amounts and credit exposure by credit rating, industry and region. Portfolios are managed to limit concentrations of risk in specific categories in accordance with our Large Credit Guidelines.

To manage country risk, we have established specific credit ceilings by country. These ceilings are reviewed when there is a material change in a country’s credit standing, in addition to being subject to a regular periodic review.

Continuous CPM Improvement

With the prevalence of securitized products and credit derivatives in global markets, we seek to supplement conventional CPM techniques with advanced methods based on the use of such market-based instruments.

Through credit risk quantification and portfolio management, we aim to improve the risk return profile of the Group’s credit portfolio, using financial markets to rebalance credit portfolios in a dynamic and active manner based on an accurate assessment of credit risk.

Risk Management of Strategic Equity Portfolio

We hold shares of various corporate clients for strategic purposes, in particular to maintain long-term relationships with these clients. These investments have the potential to increase business revenue and appreciate in value. At the same time, we are exposed to the risk of price fluctuations in the Japanese stock market. For that reason, in recent years, it has been a high priority for us to reduce our equity portfolio to limit the risks associated with holding a large equity portfolio, but also to respond to applicable regulatory requirements as well as increasing market expectations and demands for us to reduce our equity portfolio. We are required to comply with a regulatory framework that prohibits Japanese banks from holding an amount of shares in excess of their adjusted Tier 1 capital. See “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Financial Condition—Investment Portfolio.”

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We use quantitative analysis to manage the risks associated with the portfolio of equities held for strategic purposes. According to internal calculations, the market value of our strategically held (Tokyo Stock Exchange-listed) stocks (excluding foreign stock exchange-listed stocks) as of March 31, 2026 was subject to a variation of approximately ¥1.1 billion when TOPIX index moves one point in either direction.

We seek to manage and reduce strategic equity portfolio risk based on quantitative analysis such as the sensitivity analysis described above. The aim is to keep this risk at appropriate levels compared with Tier 1 capital while generating returns commensurate with the degree of risk exposure.

Market Risk Management

Management of market risk at MUFG aims to control our risk exposure to fluctuations in market variables across the Group while ensuring that earnings are commensurate with levels of risk.

Market Risk Management System

We have adopted an integrated system to manage market risk from our trading and non-trading activities. The holding company monitors group-wide market risk, while each of the major subsidiaries manages its market risks on a consolidated and global basis.

At each of the major subsidiaries, checks and balances are maintained through a system in which back and middle offices operate independently from front offices. In addition, separate Asset-Liability Management, or ALM, Committee and Risk Management Meetings are held at each of the major subsidiaries every month to deliberate important matters related to market risk and control.

The holding company and the major subsidiaries allocate economic capital commensurate with levels of market risk and determined within the scope of their capital bases. The major subsidiaries have established quantitative limits relating to market risk based on their allocated economic capital. In addition, in order to keep losses within predetermined limits, the major subsidiaries have also set limits for the maximum amount of losses arising from market activities. The following diagram summarizes the market risk management system of each major subsidiary:

Market Risk Management System of Our Major Subsidiaries

Market Risk Management and Control

At the holding company and the major subsidiaries, market risk exposure is reported to the Chief Risk Officers on a daily basis. At the holding company, the Chief Risk Officer monitors market risk exposure across the Group as well as the major subsidiaries’ control over their quantitative limits for market risk and losses. Meanwhile, the Chief Risk Officers at the major subsidiaries monitor their own market risk exposure and their control over their quantitative limits for market risk and losses. In addition, various analyses on risk profiles, including stress testing, are conducted and reported to the Executive Committees and the Corporate Risk Management Committees on a regular basis. At the business unit levels in the major subsidiaries, the market risks on their marketable assets and

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liabilities, such as interest rate risk and foreign exchange rate risk, are controlled by entering into various hedging transactions using marketable securities and derivatives.

As part of our market risk management activities, we use certain derivative financial instruments to manage our interest rate and currency exposures. We maintain an overall interest rate risk management strategy that incorporates the use of interest rate contracts to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. We enter into interest rate swaps and other contracts as part of our interest rate risk management strategy primarily to alter the interest rate sensitivity of our loans, investment securities and deposit liabilities. Our principal objectives in risk management include asset and liability management. Asset and liability management is viewed as one of the methods for us to manage our interest rate exposures on interest-earning assets and interest-bearing liabilities. Interest rate contracts, which are generally non-leveraged generic interest rate and basis swaps, options and futures, allow us to effectively manage our interest rate risk position. Option contracts primarily consist of caps, floors, swaptions and options on index futures. Futures contracts used for asset and liability management activities are primarily index futures providing for cash payments based upon the movement of an underlying rate index. We enter into forward exchange contracts, currency swaps and other contracts in response to currency exposures resulting from on-balance sheet assets and liabilities denominated in foreign currencies in order to limit the net foreign exchange position by currency to an appropriate level.

These market risk management activities are performed in accordance with the predetermined rules and procedures. The internal auditors regularly verify the appropriateness of the management controls over these activities and the risk evaluation models adopted.

Market Risk Measurement Model

To measure market risks, MUFG uses the VaR method which estimates changes in the market value of portfolios within a certain period by statistically analyzing past market data. Since the daily variation in market risk is significantly greater than that in other types of risk, MUFG measures and manages market risk using VaR on a daily basis.

Market risk for trading and non-trading activities is measured using a market risk measurement model. The principal model used for these activities is a historical simulation, or HS, model (Trading activities: holding period, one business day; confidence interval, 95%; and observation period, 250 business days. Non-trading activities (which include available-for-sale debt securities as well as loans, deposits and held-to-maturity debt securities): holding period, 10 business days; confidence interval, 99%; and observation period, 701 business days). The HS model calculates VaR amounts by estimating the profit and loss on the current portfolio by applying actual fluctuations in market rates and prices over a fixed period in the past. This method is designed to capture certain statistically infrequent movements, such as a fat tail. Changes in the fair value of loans, deposits and held-to-maturity debt securities are considered in the Non-trading activities, while such changes are not reflected in our financial statements.

In calculating VaR using the HS method, we have implemented an integrated market risk measurement system throughout the Group. Our major subsidiaries calculate their VaR based on the risk and market data prepared by the information systems of their front offices and other departments. The major subsidiaries provide this risk data to the holding company, which calculates overall VaR, taking into account the diversification effect among all portfolios of the major subsidiaries.

For the purpose of internally evaluating capital adequacy on an economic capital basis in terms of market risk, we use this market risk measurement model to calculate risk amounts based on a holding period of one year and a confidence interval of 99.9%.

Monitoring and managing our sensitivity to interest rate fluctuations is key to managing market risk in MUFG’s non-trading activities. The major banking subsidiaries take the following approach to measuring risks concerning core deposits, loan prepayments and early deposit withdrawals.

To measure interest rate risk relating to deposits without contract-based fixed maturities, the amount of “core deposits” is calculated through a statistical analysis based on deposit balance trend data and the outlook for interest rates on deposits, business decisions, and other factors. The amount of “core deposits” is categorized into various groups of maturity terms of up to ten years to recognize interest rate risk. The calculation assumptions and methods to determine the amount of core deposits and maturity term categorization are regularly reviewed.

Meanwhile, deposits and loans with contract-based maturities are sometimes cancelled or repaid before their maturity dates. To measure interest rate risk for these deposits and loans, we reflect these early termination events mainly by applying early termination rates calculated based on a statistical analysis of historical repayment and cancellation data together with historical market interest rate data.

Summaries of Market Risks

Trading activities

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The aggregate VaR for our total trading activities as of March 31, 2026 was ¥2.72 billion, comprising interest rate risk exposure of ¥2.73 billion, foreign exchange risk exposure of ¥0.85 billion, and equity-related risk exposure of ¥0.33 billion. Our average daily VaR for the fiscal year ended March 31, 2026 was ¥2.46 billion.

Due to the nature of trading operations which involves frequent changes in trading positions, market risk may vary substantially during and between measurement periods, depending on our trading positions.

The following tables set forth the VaR related to our trading activities by risk category for the periods indicated:


April 1, 2024—March 31, 2025	Average		Maximum(1)		Minimum(1)		March 31, 2025
	(in billions)
MUFG	¥	1.79	¥	3.66	¥	1.20	¥	1.53
Interest rate	1.53		1.87		1.19		1.56
Yen	0.79		1.23		0.54		0.98
U.S. Dollars	0.93		1.42		0.61		0.85
Foreign exchange	0.69		1.23		0.47		0.51
Equities	0.43		2.43		0.10		0.24
Commodities	0.00		0.00		0.00		0.00
Less diversification effect	(0.86)		—		—		(0.78)


April 1, 2025—March 31, 2026	Average		Maximum(1)		Minimum(1)		March 31, 2026
	(in billions)
MUFG	¥	2.46	¥	3.64	¥	1.36	¥	2.72
Interest rate	2.20		3.26		1.41		2.73
Yen	1.43		2.40		0.80		1.57
U.S. Dollars	1.33		1.76		0.81		1.39
Foreign exchange	0.79		1.73		0.51		0.85
Equities	0.83		2.07		0.09		0.33
Commodities	0.00		0.00		0.00		0.00
Less diversification effect	(1.36)		—		—		(1.19)


Assumptions for VaR calculations:
Historical simulation method
Holding period: 1 business day
Confidence interval: 95%
Observation period: 250 business days

Note:

(1)The maximum and minimum VaR overall and for various risk categories were taken from different days. A simple summation of VaR by risk category is not equal to total VaR due to the effect of diversification.

The average daily VaR by quarter in the fiscal year ended March 31, 2026 was as follows:


Quarter	Daily average VaR
	(in billions)
April—June 2025	¥	2.36
July—September 2025	2.28
October—December 2025	2.46
January—March 2026	2.75

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Non-trading Activities

The aggregate VaR for our total non-trading activities as of March 31, 2026, excluding market risks related to our strategic equity portfolio, was ¥511.5 billion. Market risk related to interest rates equaled ¥418.2 billion and equities-related risk equaled ¥160.9 billion. Compared with the VaR as of March 31, 2025, market risk decreased in the fiscal year ended March 31, 2026, primarily due to a decrease in Japanese yen interest rate risk.

Based on a simple sum of figures across market risk categories, interest rate risks accounted for approximately 71% of our total non-trading activity market risks as of March 31, 2026. Looking at a breakdown of interest rate related risk by currency, as of March 31, 2026, the Japanese yen accounted for approximately 31% while the U.S. dollar accounted for approximately 67%, and the euro approximately 2%, with a 17 percentage point decrease in the Japanese yen, an 18 percentage point increase in the U.S. dollar and a one percentage point decrease in the euro compared to March 31, 2025.

For a description of our strategic equity investment risk management, see “—Risk Management of Strategic Equity Portfolio.”

The following tables set forth the VaR related to our non-trading activities by risk category for the periods indicated:


April 1, 2024—March 31, 2025	Average		Maximum(1)		Minimum(1)		March 31, 2025
	(in billions)
Interest rate	¥	456.0	¥	519.8	¥	394.7	¥	498.2
Yen	328.3		440.0		253.2		359.6
U.S. Dollars	306.7		415.7		210.2		360.8
Foreign exchange	5.0		9.5		2.3		5.2
Equities(2)	103.1		120.7		81.6		105.6
Commodities	0.2		1.8		0.1		0.1
Less diversification effect	(44.4)		―		―		(49.1)
Total	519.9		578.8		450.3		560.0


April 1, 2025—March 31, 2026	Average		Maximum(1)		Minimum(1)		March 31, 2026
	(in billions)
Interest rate	¥	435.0	¥	493.8	¥	370.9	¥	418.2
Yen	235.7		368.0		152.9		197.9
U.S. Dollars	365.8		423.3		287.7		421.3
Foreign exchange	7.2		14.9		4.2		7.2
Equities(2)	151.3		191.8		93.5		160.9
Commodities	0.1		0.2		0.0		0.0
Less diversification effect	(81.2)		―		―		(74.8)
Total	512.4		564.6		463.1		511.5


Assumptions for VaR calculations:
Historical simulation method
Holding period: 10 business days
Confidence interval: 99%
Observation period: 701 business days

Notes:

(1)The maximum and minimum VaR overall for each category and in total were taken from different days. A simple summation of VaR by risk category is not equal to total VaR due to the effect of diversification.

(2)The equities-related risk figures do not include market risk exposure from our strategic equity portfolio.

The average daily interest rate VaR by quarter in the fiscal year ended March 31, 2026 was as follows:

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Quarter	Daily average VaR
	(in billions)
April—June 2025	¥	452.05
July—September 2025	435.04
October—December 2025	428.65
January—March 2026	424.27

Limitations of the Market Risk Measurement Model and Related Measures

Actual losses may exceed the value at risk obtained by the application of an HS VaR model in the event, for example, that the market fluctuates to a degree not accounted for in the observation period, or that the correlations among various risk factors, including interest rates and foreign currency exchange rates, deviate from those assumed in the model. In order to complement these weaknesses of the HS-VaR model and measure potential losses that the model is not designed to capture, we conduct stress testing, as appropriate, on our HS-VaR model for our non-trading activities by applying various stress scenarios, including those which take into account estimates regarding future market volatility, in order to better identify risks and manage our portfolio in a more stable and appropriate manner. In addition, we utilize back-testing to verify the effectiveness of our VaR measurement model.

Funding Liquidity Risk Management

Our major subsidiaries seek to maintain appropriate liquidity in both Japanese yen and foreign currencies by managing their funding sources and mechanisms, such as deposits, short-term borrowings and long-term debt, liquidity gap, liquidity-supplying products such as commitment lines, and buffer assets, primarily government bonds.

We have established a group-wide system for managing liquidity risk by categorizing the risk in the following three stages: normal, concern and crisis. The front offices and risk management offices of the major subsidiaries and the holding company exchange information and data on liquidity risk even at the normal stage. At higher alert stages, we centralize information about liquidity risk and discuss issues relating to group-wide liquidity control actions, including formulating contingency plans, among Group companies, if necessary. We have also established a system for liaison and consultation on funding in preparation for contingency, such as natural disasters, wars and terrorist attacks. The holding company and the major subsidiaries conduct group-wide contingency preparedness drills on a regular basis to ensure smooth implementation in the event of an emergency.

In addition, we have established a group-wide system for ensuring compliance with the minimum regulatory LCR and NSFR requirements by categorizing the risk in the following three stages: sufficient, concern and insufficient. The holding company and the major subsidiaries exchange information and data on LCR and NSFR even at the sufficient stage. At higher alert stages, we hold group-wide LCR and NSFR liaison meetings to discuss issues relating to LCR and NSFR and, based on the discussion as well as the information and data that have been shared, take countermeasures to improve LCR and NSFR as necessary.

For more information, see “Item 5.B. Operating and Financial Review and Prospects—Liquidity and Capital Resources—Financial Condition—Sources of Funding and Liquidity.” See also “Item 3.D. Key Information—Risk Factors—Funding Liquidity Risk—Deterioration in market liquidity or other external circumstances or an actual or perceived decline in our creditworthiness could negatively affect our ability to access and maintain liquidity.”

Operational Risk Management

The holding company has established, based on its Executive Committee’s determination, the MUFG Operational Risk Management Policy as a group-wide policy for managing operational risk. This policy sets forth the core principles regarding operational risk management, including the definition of operational risk, and the risk management system and processes. Pursuant to the policy, under the oversight of the board of directors, the Executive Committee formulates fundamental principles of operational risk management and establishes and maintains a risk management system as it considers appropriate. The Chief Risk Officer is responsible for recognizing, evaluating, and appropriately managing operational risk in accordance with the fundamental principles formulated by the board of directors and the Executive Committee. A division in charge of operational risk management has been established that is independent of business promotion sections to manage overall operational risk in a comprehensive manner. In addition, senior management receives regular reports on the status of our business operations from the perspective of managing operational risk in accordance with the fundamental principles. These fundamental principles have also been approved by the boards of directors of the major subsidiaries, providing a consistent framework for operational risk management of the Group. The diagram below sets forth the operational risk management system of each major banking subsidiary:

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Operational Risk Management System of Our Major Banking Subsidiaries

As set forth in the following diagram, we have established a risk management framework for loss data collection, control self-assessment, and measurement of operational risk in order to appropriately identify, recognize, evaluate, measure, control, monitor and report operational risk.

We have also established group-wide reporting guidelines with respect to loss data collection and its monitoring. We focus our efforts on ensuring accurate assessment of the status of operational risk losses and the implementation of appropriate countermeasures, while maintaining databases of internal and external loss events.

The following diagram summarizes our operational risk management framework:

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Operational Risk Management Framework

Operations Risk Management

The Group companies offer a wide range of financial services, ranging from commercial banking products such as deposits, exchange services and loans to trust and related services covering pensions, securities, real estate and securitization, as well as transfer agent services. Cognizant of the potentially significant impact that operations risk-related events could have in terms of both economic losses and damage to our reputation, our major subsidiaries continue to work on improving their management systems to create and apply appropriate operations risk-related controls.

Specific ongoing measures to reduce operations risk include the development of databases to manage, analyze and prevent the recurrence of related loss events; efforts to tighten controls over administrative procedures and related operating authority, while striving to improve human resources management, investments in systems to improve the efficiency of administrative operations, and programs to expand and upgrade internal auditing and operational guidance systems.

We work to promote the sharing within the Group of information and expertise concerning any operational incidents and the measures implemented to prevent any recurrence.

Efforts to upgrade the management of operations risk continue with the aim of providing our customers with a variety of high-quality services.

Information Risk Management

Complying with laws and regulations requiring proper handling of customer information, we implement information security management measures, including the establishment of an information risk management framework, enhancement of our internal operational procedures, and training courses mandatory for all officers and staff.

We have also formulated our Personal Information Protection Policy as the basis for our ongoing programs designed to protect the confidentiality of personal information.

With the aim of preventing any recurrence and minimizing risk or loss, we also work to promote sharing on a group-wide basis of experience, knowledge and expertise related to information risk incidents.

IT Risk Management

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IT risk refers to the following risks:

- Loss arising from destruction of, suspension of services reliant on, defects in, or misuse of IT,

- Unauthorized alteration, leakage or loss of electronic data caused by insufficient IT systems planning, development or operations, and

- External threats to or vulnerabilities in IT systems security, including cybersecurity.

Systems planning, development and operations include appropriate design and extensive testing phases to ensure that systems are designed to help prevent failures while providing sufficient safeguards for the security of electronic data including personal information. System development projects are managed and overseen by a team dedicated to performing such management and oversight functions, and the development status of any mission-critical IT systems is reported regularly to senior management.

Disaster countermeasure systems development and investments for redundancy of the Group’s IT infrastructure are designed to minimize damage in the event of any system failure. Emergency drills are conducted to help increase staff preparedness. Group-wide sharing of experience, knowledge and expertise related to system failures is promoted with the aim of preventing recurrence of, and minimizing, risk or loss. Contingency plans, including alternatives for both operations and systems, are designed to ensure operational resilience, enable quick recovery and reduce impact in the event of a system failure.

In addition, the risk of increasingly sophisticated cyber-attacks is a significant focus of the Board of Directors, and the Board regularly receives reports regarding our cybersecurity risk management program. We continue to work to strengthen measures designed to address and mitigate the risk, including the establishment of MUFG-CERT, our Computer Emergency Response Team, implementation of multi-layered defense and detection measures, enhancement of monitoring systems, and cooperation with global organizations with relevant expertise. MUFG-CERT is responsible for taking prompt action to coordinate and manage response to cyber security incidents to mitigate their impact. For more information, see "Item 16K. Cybersecurity."

We have established the “MUFG AI Policy” to ensure the safe, appropriate and secure use of AI. Under this policy, we are working to strengthen our AI risk management framework as a business entity engaged in AI utilization. See “Item 3.D. Key Information—Risk Factors—Operational Risk—We are exposed to risks related to the development and use of AI by us and others.”

Tangible Asset Risk Management

Tangible assets include movable physical properties and immovable properties, owned or leased, such as land, buildings, equipment attached to buildings, fixtures and furniture. We recognize the potentially significant impact tangible asset risk-related events can have on the management and execution of the Group’s businesses, which in turn can result in economic losses to, or diminished market confidence in, the Group. Accordingly, we continue to improve our risk control framework designed to appropriately manage such risk.

Personnel Risk Management

We recognize the potentially significant impact personnel risk-related events can have on the management and execution of the Group’s businesses, which in turn can result in economic losses to, or diminished market confidence in, the Group. Accordingly, we continue to work on improving our risk control framework designed to appropriately manage such risk.

Incompliance with Laws and Regulations Risk Management

We recognize the potentially significant impact compliance risk-related events can have on the management and execution of the Group’s businesses, which in turn can result in economic, reputation and other losses to, or diminished market confidence in, the Group. Accordingly, we continue to work on improving our compliance risk control framework designed to appropriately manage such risk.

Specifically, we have established our MUFG Group Code of Conduct as the basic guideline for the Group’s directors and employees. In addition, a compliance management division has been established at each of the holding company and the major subsidiaries. See “—Compliance” below.

Legal Risk Management

The legal division at each of the holding company and the major subsidiaries centrally and uniformly evaluates legal issues prior to entering into contracts or commencing new business operations, deals with legal disputes and manages other legal matters. With the

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aim of effectively managing our legal risk arising from our globally expanding business operations, we have established a global and group-wide legal risk management framework and promote sharing of experience, knowledge and practices relating to legal risk issues on a global and group-wide basis.

The Standardized Measurement Approach for Operational Risk

We adopted the Standardized Measurement Approach, or SMA, as of March 31, 2024, in place of the Advanced Measurement Approach that we had previously used, for calculation of the operational risk capital amount in measuring our capital adequacy ratios under applicable Japanese regulatory requirements based on the Basel III Standards. The SMA is intended to reduce complexity and variability in the calculation of operational risk capital amount and replace all previously permitted approaches.

Succinctly put, under the SMA, operational risk capital amount is calculated based on a bank’s income, expense items and historical loss amounts. Using a bank’s income and expense items as inputs, a financial statement-based proxy for the bank’s operational risk exposure, which is referred to as the Business Indicator, is calculated based on a prescribed formula. The Business Indicator is multiplied by an applicable coefficient or coefficients (between 12% and 18%) to arrive at the value referred to as the Business Indicator Component (BIC). The calculated BIC is then multiplied by a scaling factor referred to as the Internal Loss Multiplier (ILM), which is calculated based on a prescribed formula using the bank’s average historical operational risk losses over the last 10 years, or a conservative estimate value with a lower bound of 1, as an input.

Based on the foregoing, operational risk capital amount is calculated by multiplying the BIC and the ILM, and the risk weighted assets for operational risk are defined as the product of operational risk capital and 12.5.

Reputation Risk Management

Reputation risk refers to the risk of harm to our corporate value arising from perceptions of our customers, shareholders, investors or other stakeholders and in the market or society that we deviate from their expectations or confidence. We recognize that such risk, if materialized, can have a material negative impact on our business and continue to work on enhancing our framework designed to appropriately manage the risk based on MUFG Way, MUFG Group Code of Conduct, and other rules and codes of the Group.

Specifically, in order to manage our reputation risk effectively on a group-wide basis, we have established a risk management system designed to ensure mutual consultation and reporting if a reputation risk-related event occurs or is anticipated and, through this system, share relevant information within the Group.

Through the risk control framework and risk management system, we seek to prevent reputation risk-related events and minimize damage to the corporate value of the Group by promptly obtaining an accurate understanding of relevant facts relating to risk events and disclosing information concerning such events and the measures we take in response to such events in an appropriate and timely manner.

Model Risk Management

We recognize the potentially significant impact model risk-related events can have on the management and execution of the Group’s businesses, which in turn can result in economic losses to, or diminished market confidence in, the Group. Models are used for increasingly wider and more important purposes, including valuing exposures, instruments and positions, measuring risks, determining capital adequacy and compliance. Accordingly, we continue to work on improving our risk control framework. See “Item 3.D. Key Information—Risk Factors—Operational Risk—We are exposed to risks related to the development and use of AI by us and others.”

Compliance

Basic Policy

In April 2021, MUFG renamed its Corporate Vision as “MUFG Way” and newly defined its social purpose—the purpose of its existence, along with its shared values and medium- to long-term goal. MUFG Way serves as the group’s basic policy in conducting its business activities and provides guidelines for all group activities. Furthermore, we have established MUFG Group Code of Conduct as the guidelines for how the Group’s directors and employees act to realize the Corporate Vision, in which we have expressed our commitment to complying with laws and regulations, to acting with honesty and integrity, and to behaving in a manner that supports and strengthens the trust and confidence of society.

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In addition, as we expand the geographic scope of our business globally, we are committed to keeping abreast of developments in laws and regulations of the jurisdictions in which we operate including anti-money laundering and anti-bribery, as well as paying attention to trends in financial crimes.

See “Item 3.D. Key Information—Risk Factors—Operational Risk—Legal and regulatory changes could have a negative impact on our business, financial condition and results of operations.” and “Item 3.D. Key Information—Risk Factors—Operational Risk—We may become subject to regulatory actions or other legal proceedings relating to our transactions or other aspects of our operations, which could result in significant financial losses, restrictions on our operations and damage to our reputation.” See also “Item 4.B. Information on the Company—Business Overview—Supervision and Regulation.”

Compliance Framework

Management and coordination of compliance-related matters are the responsibility of separate compliance management divisions established at the holding company and the major subsidiaries. Each compliance management division formulates compliance programs and organizes training courses to promote compliance, and regularly reports to each company’s board of directors and Executive Committee on the status of compliance activities.

The holding company has established a Group Compliance Committee and each major subsidiary has established a Compliance Committee for deliberating key issues related to compliance. Additionally, the holding company has a Group Chief Compliance Officer, or CCO, Committee, which consists of the CCO of the holding company acting as committee chair and the CCOs of the major subsidiaries. The Group CCO Committee deliberates important matters related to compliance and compliance-related issues for which the Group should share a common understanding.

The following diagram summarizes our compliance framework:

Compliance Framework

Internal Reporting System and Accounting Auditing Hotline

The major subsidiaries have established internal reporting systems that aim to identify compliance issues early so that any problems can be quickly rectified. This system includes an independent external compliance hotline. Furthermore, the holding company has set up an MUFG Group Compliance Helpline that acts in parallel with group-company internal reporting systems and provides a reporting channel for directors and employees of Group companies. In the holding company, the contents of the reported cases as well as the results of surveys are reported to the audit committee on a regular basis or whenever necessary.

In addition to these internal reporting systems, the holding company has also established an accounting auditing hotline that provides a means to report any problems related to MUFG's accounting practices.

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MUFG Accounting Auditing Hotline

MUFG has set up an accounting auditing hotline to be used to make reports related to instances of improper practices (violations of laws and regulations) and inappropriate practices, or of practices raising questions about such impropriety or inappropriateness, regarding accounting and internal control or audits related to accounting in Group companies. The audit committee oversees the reporting process to ensure the appropriateness and effectiveness of the reporting process and monitors the reports received through the hotline. The reporting process works as follows, and may be carried out via letter or e-mail:

Hokusei Law Office, P.C.

Address: Sanshikaikan Bldg. 8th Floor 1-9-4 Yurakucho, Chiyoda-ku, Tokyo

e-mail:MUFG-accounting-audit-hotline@hokusei-law.com

When reporting information please pay attention to the following:

•Matters subject to reporting are limited to instances regarding the Group companies.

•Please provide detailed information with respect to the matter. Without detailed factual information there is a limit to how much our investigations can achieve.

•Anonymous information will be accepted.

•No information regarding the identity of the informant will be passed on to third parties without the approval of the informant him- or herself. However, this excludes instances where disclosure is legally mandated, or to the extent that the information is necessary for surveys or reports, when data may be passed on following the removal of the informant’s name.

•Please submit reports in either Japanese or English.

•If the informant wishes, we will endeavor to report back to the informant on the response taken within a reasonable period of time following the receipt of specific information, but cannot promise to do so in all instances.

Internal Audit

Role of Internal Audit

Internal Audit aims to evaluate and assist in the improvement of the effectiveness of governance, risk management and control processes with high proficiency and independence, thereby contributing to the enhancement of the corporate value of the MUFG Group and to the achievement of MUFG Way. Internal Audit covers all aspects of the Group’s business activities and discusses and evaluates the management and operational frameworks and the implementation of business operations from legal compliance, rationality and efficiency perspectives, beyond checking compliance with defined procedures.

In addition, Internal Audit provides instructions and recommendations for operational improvement to audited divisions and reports to senior management on such instructions and recommendations, thereby contributing to safeguarding and development of the Group’s assets.

Three Lines of Defense Framework

Risk management is conducted at multiple levels within a business organization, including front-office divisions in charge of managing specific categories of risk, a compliance division, and an internal audit division.

As for financial institutions, including the MUFG Group, based on the experience of past financial crises, the traditional risk management structure that was heavily dependent on front-office divisions has been under close scrutiny. As a result, there is an increasing expectation for financial institutions to achieve more effective risk management through, for example, appropriate allocation of risk management roles and responsibilities among various divisions.

Cognizant of the importance of these developments, we have adopted the concept of “Three Lines of Defense” where the roles and responsibilities of each division in risk management are defined, classifying divisions within a financial institution into “the 1st Line of Defense”, “the 2nd Line of Defense” and “the 3rd Line of Defense”.

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Line

Divisions

Roles

The 1st Line of Defense

Business divisions and client-facing divisions

•Undertake risks within the extent of risk exposure assigned

• Responsible and accountable for identifying, evaluating and controlling business risks

The 2nd Line of Defense

Risk management division, compliance division, etc.

•Ensure that risks are appropriately identified and managed by the 1st Line of Defense

The 3rd Line of Defense

Internal audit division

• Independently evaluate the effectiveness of the governance, risk management, and control processes implemented by the 1st and 2nd Lines of Defense

Internal Audit plays an essential role in the Group’s risk management through ongoing communications with the 1st and 2nd Lines of Defense, while maintaining independence.

Group Internal Audit Framework

The MUFG Group has internal audit functions at the holding company level as well as at the subsidiary level, which are designed to ensure proficiency and independence through effective collaboration.

The internal audit division of the holding company receives reports from the internal audit divisions of subsidiaries on the status and results of their internal audits and provides them with instructions and evaluations as needed.

Reports to the Audit Committee

The holding company has an audit committee within its board of directors as required by the Companies Act of Japan, and each of the major subsidiaries has established an audit and supervisory committee. Within each of the holding company and the major subsidiaries, the internal audit division reports to the committee on important matters, including governing principles for internal audit plans and the status and results of internal audits.

MUFG Internal Audit Activity Charter

We have adopted “MUFG Internal Audit Activity Charter”, which defines our basic policies for Internal Audit, including its purposes and roles and the organizational positioning of the internal audit function.

This charter is designed to encourage Internal Audit staff to conduct internal audits in accordance with the global standards set by the Institute of Internal Auditors, an international organization established for, among other purposes, formulating practical internal audit standards.

Item 12. Description of Securities Other than Equity Securities.

A.Debt Securities

Not applicable.

B.Warrants and Rights

Not applicable.

C.Other Securities

Not applicable.

D.American Depositary Shares

For a description of ADSs, each representing one share of our common stock, see Exhibit 2(c) to this Annual Report.

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Fees, charges and other payments relating to ADSs

As a holder of our ADSs, you will be required to pay to The Bank of New York Mellon, as depositary for the ADRs, or the Depositary, either directly or indirectly, the following fees or charges. The Depositary collects its fees for delivery and surrender of ADRs directly from investors depositing shares or surrendering ADRs for the purpose of withdrawal or from intermediaries acting for them. The Depositary collects fees for making distributions to investors by deducting those fees from the amounts distributed or by selling a portion of distributable property to pay the fees.


ADS holders must pay:						For:
$5.00 (or less) per 100 ADSs (or portion thereof)						Each issuance of an ADR, including as a result of a distribution of shares or rights or other property Each cancellation of an ADR, including if the agreement terminates

$0.02 (or less) per ADS						Any cash distribution, to the extent permitted by any securities exchange on which the ADSs may be listed for trading

A fee equivalent to the fee that would be payable if securities distributed to the ADS holder had been shares and the shares had been deposited for issuance of ADRs						Distribution of securities distributed to holders of deposited securities which are distributed by the Depositary to registered ADS holders

Registration or transfer fees						Transfer and registration of shares on the share register from your name to the name of The Bank of New York Mellon or its agent and vice versa when you deposit or withdraw shares

Expenses of The Bank of New York Mellon						Conversion of foreign currency to U.S. dollars, as well as cable, telex and facsimile transmission expenses

Taxes and other governmental charges The Bank of New York Mellon or MUFG Bank, as custodian, have to pay on any ADS or share underlying an ADS, for example, stock transfer taxes, stamp duty or withholding taxes						As necessary

Fees Waived or Paid by the Depositary

The Depositary has agreed to waive the standard out-of-pocket administrative, maintenance and other expenses for providing services to the registered holders of our ADSs, which include the expenses relating to the delivery of annual reports, dividend fund remittances, stationery, postage and photocopying. For the fiscal year ended March 31, 2026, the Depositary waived $130,964.31 of standard out-of-pocket expenses.

The Depositary has also agreed to reimburse us for expenses related to the administration and maintenance of the ADS program, including investor relations expenses, the annual New York Stock Exchange listing fees and other program-related expenses. There is a limit on the amount of expenses for which the Depositary will reimburse us based and conditioned on the number of outstanding ADSs and the amount of dividend fees collected by the Depositary. For the fiscal year ended March 31, 2026, the Depositary reimbursed us $1.0 million for such expenses.

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PART II

Item 13. Defaults, Dividend Arrearages and Delinquencies.

None.

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds.

None.

Item 15. Controls and Procedures.

Disclosure Controls and Procedures

An evaluation was carried out under the supervision and with the participation of our management, including the Chief Executive Officer, or CEO, and the Chief Financial Officer, or CFO, of the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) under the U.S. Securities Exchange Act of 1934, as of the end of the period covered by this Annual Report.

Based on that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of March 31, 2026.

Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) under the U.S. Securities Exchange Act of 1934. Our internal control over financial reporting is a process designed by, or under the supervision of, MUFG’s principal executive and principal financial officers, and effected by MUFG’s board of directors, management, and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with U.S. GAAP and includes those policies and procedures that:

(i)pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of MUFG,

(ii)provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of MUFG are being made only in accordance with authorizations of management and directors of MUFG, and

(iii)provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of MUFG’s assets that could have a material effect on the financial statements.

Because of inherent limitations, internal control over financial reporting, no matter how well designed, may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management evaluated the effectiveness of our internal control over financial reporting as of March 31, 2026 based on the criteria established in “Internal Control—Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on the evaluation, management concluded that our internal control over financial reporting was effective as of March 31, 2026.

The effectiveness of our internal control over financial reporting as of March 31, 2026 has been audited by Deloitte Touche Tohmatsu LLC, an independent registered public accounting firm, as stated in its report, presented on page 151.

Changes in Internal Control Over Financial Reporting

During the period covered by this Annual Report, there has been no change in our internal control over financial reporting that has materially affected or is reasonably likely to materially affect our internal control over financial reporting.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and the Shareholders of

Mitsubishi UFJ Financial Group, Inc.

(Kabushiki Kaisha Mitsubishi UFJ Financial Group):

Opinion on Internal Control over Financial Reporting

We have audited the internal control over financial reporting of Mitsubishi UFJ Financial Group, Inc. (Kabushiki Kaisha Mitsubishi UFJ Financial Group) (“MUFG”) and subsidiaries (together, the “MUFG Group”) as of March 31, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). In our opinion, the MUFG Group maintained, in all material respects, effective internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by COSO.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements as of and for the year ended March 31, 2026, of the MUFG Group and our report dated July 6, 2026, expressed an unqualified opinion on those financial statements.

Basis for Opinion

The MUFG Group's management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the MUFG Group's internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the MUFG Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ Deloitte Touche Tohmatsu LLC

Tokyo, Japan

July 6, 2026

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Item 16A. Audit Committee Financial Expert.

Our board of directors has determined that Mr. Koichi Tsuji, an outside director, is an “audit committee financial expert” as defined in Item 16A of Form 20-F and is, and has remained since his assumption of office as a member of our audit committee, “independent” as defined in the listing standards of the NYSE. Mr. Tsuji has spent most of his professional career as a certified public accountant in Japan, auditing Japanese corporations, including those registered with the U.S. Securities and Exchange Commission. Mr. Tsuji is also the chair of our audit committee.

Item 16B. Code of Ethics.

We have adopted a code of ethics, which consists of internal rules named MUFG Group Code of Conduct, compliance policy, compliance manual, regulations for corporate executives and rules of employment. Each of these rules applies to our principal executive officer, principal financial officer, principal accounting officer and persons performing similar functions. The MUFG Group Code of Conduct was most recently amended on April 1, 2026 primarily to re-emphasize the values of integrity and responsibility and the importance of adherence to applicable laws and regulations and to reflect legal and regulatory changes. A copy of the MUFG Group Code of Conduct and the sections of our compliance policy, compliance manual, regulations for corporate executives and rules of employment relating to the “code of ethics” (as defined in paragraph (b) of Item 16B of Form 20-F) is attached as Exhibit 11(a) to this Annual Report.

No waivers of the MUFG Group Code of Conduct or the relevant sections of our compliance rules, compliance manual and rules of employment were granted to our principal executive officer, principal financial officer, principal accounting officer, directors or corporate auditors during the fiscal year ended March 31, 2026.

Item 16C. Principal Accountant Fees and Services.

Fees and Services of Deloitte Touche Tohmatsu LLC

The aggregate fees billed by Deloitte Touche Tohmatsu LLC, our independent registered public accounting firm and its affiliates, for the fiscal years ended March 31, 2025 and 2026 are presented in the following table:


	2025		2026
	(in millions)
Audit fees	¥	9,154	¥	9,969
Audit-related fees	572		870
Tax fees	68		98
Total	¥	9,794	¥	10,936

The description of our fees billed for each category described above is as follows:

Audit fees—Audit fees are primarily for an annual audit of our financial statements, review of our semi-annual condensed financial statements, statutory audit of our financial statements and audits of our subsidiary financial statements and attestation services relating to the internal controls over financial reporting under Section 404 of the U.S. Sarbanes-Oxley Act of 2002.

Audit-related fees—Audit-related fees primarily include accounting consultations, assurance services and agreed upon procedures on internal controls, employee benefit plan audit, and advisory services relating to internal control reviews.

Tax fees—Tax fees relate primarily to tax compliance, including assistance with preparation of tax return filings, tax advisory and tax planning services.

Pre-Approval Policies and Procedures for Services by Deloitte Touche Tohmatsu LLC

Our audit committee performs the pre-approval function required by applicable SEC rules and regulations. Our audit committee has established pre-approval policies and procedures that MUFG and its subsidiaries must follow before engaging Deloitte Touche Tohmatsu LLC to perform audit and permitted non-audit services.

When MUFG or a subsidiary intends to engage Deloitte Touche Tohmatsu LLC to perform audit and permitted non-audit services, all such services must be approved by our audit committee prior to engagement based either on a pre-approved list of specified services or on an individual application for pre-approval.

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•Our audit committee annually reviews and, where appropriate, pre-approves a proposed list of specific services and specific categories of services that are expected to be provided by Deloitte Touche Tohmatsu LLC and sets budgeted fee levels and engagement periods for such services and categories of services.

•Our audit committee reviews and, where appropriate, pre-approves an individual application for a service to be provided by Deloitte Touche Tohmatsu LLC that is not covered by the annually pre-approved service list, including any fee level or engagement period adjustment that has not been pre-approved.

Engagements of Deloitte Touche Tohmatsu LLC are documented and reported to our audit committee on an annual basis.

Pre-approval is resolved in principle by our audit committee prior to engagement, although if necessary a full-time member of our audit committee may consider any individual application for pre-approval on behalf of the audit committee prior to the next scheduled audit committee meeting. Such decisions made individually by a full-time member of our audit committee are reported to the audit committee as appropriate at the next scheduled audit committee meeting.

Fees approved pursuant to the procedures described in paragraph 2-01(c)(7)(i)(C) of Regulation S-X, which provides for an exception to the general requirement for pre-approval in certain circumstances, were less than 0.1% of the total fees paid to Deloitte Touche Tohmatsu LLC for each of the fiscal years ended March 31, 2025 and 2026.

Item 16D. Exemptions from the Listing Standards for Audit Committees.

Not applicable.

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers.

Issuer Purchases of Common Stock


	Total Number of Shares Purchased(1)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(2)
April 1 to April 30, 2025	1,609	¥	1786.69	—	—
May 1 to May 31, 2025	27,810,505	1,962.55		27,809,200	147,190,800
June 1 to June 30, 2025	58,780,720	1,963.24		58,778,400	88,412,400
July 1 to July 31, 2025	39,778,461	2,011.94		39,775,700	―
August 1 to August 31, 2025	3,526	2,192.57		—	—
September 1 to September 30, 2025	2,193	2,283.25		—	—
October 1 to October 31, 2025	2,463	2,300.48		—	—
November 1 to November 30, 2025	14,120,776	2,384.59		14,119,000	115,881,000
December 1 to December 31, 2025	32,942,397	2,477.95		32,940,100	82,940,900
January 1 to January 31, 2026	22,987,277	2,766.98		22,985,400	59,955,500
February 1 to February 28, 2026	24,414,224	2,912.82		24,411,800	―
March 1 to March 31, 2026	2,059	2,795.04		—	―
Total	220,846,210	¥	2264.29	220,819,600	—

Notes:

(1)The shares purchased were shares constituting less than one unit (100 shares) purchased from registered holders of the shares, each at the current market price, in addition to those purchased as part of the publicly announced program described in Note (2) below.

(2)During May 2025 to July 2025, we repurchased 126,363,300 shares of our common stock for ¥249,999,975,140 under a share repurchase program that was adopted on May 15, 2025 and completed in July 2025. Under the program, we were authorized by the Board of Directors to repurchase up to the lesser of 175,000,000 shares of our common stock and ¥250 billion between May 16, 2025 and July 31, 2025. Also, during November 2025 to February 2026, we repurchased 94,456,300 shares of our common stock for ¥249,999,908,452 under a share repurchase program that was adopted on November 14, 2025 and completed in February 2026. Under the program, we were authorized by the Board of Directors to repurchase up to the lesser of 130,000,000 shares of our common stock and ¥250 billion between November 17, 2025 and February 27, 2026. In addition, we cancelled 200,000,000 shares of our common stock held in treasury on November 28, 2025.

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(3)On May 15, 2026, the Board of Directors approved a share repurchase program under which we were authorized to repurchase up to the lesser of 45,000,000 shares of our common stock and ¥100 billion between May 18, 2026 and June 30, 2026. Under the program, we repurchased an aggregate of 31,967,100 shares for ¥99,999,771,608.

We did not make any purchases of shares of our common stock other than as disclosed herein for the fiscal year ended March 31, 2026.

In connection with our stock compensation plan for qualified directors, corporate executives and others, 9,080,700 shares of MUFG common stock were purchased by the trustee of the plan trust in May 2024.

In connection with the Share-Based Compensation Plan for Domestic Employees of Major Subsidiaries, 2,786,900 shares of MUFG common stock were purchased by the trustee of the plan trust in May 2024.

In connection with the MUFG Americas Holdings Corporation Stock Bonus Plan, 3,365,467 ADSs were purchased by the trustee of the independent trust between April 1, 2025 and March 31, 2026.

For descriptions of our stock compensation, share-based compensation and stock bonus plans, see “Item 6.B. Directors, Senior Management and Employees—Compensation.”

Item 16F. Change in Registrant's Certifying Accountant.

None.

Item 16G. Corporate Governance.

The NYSE allows NYSE-listed companies that are foreign private issuers, such as MUFG, with certain exceptions, to follow home-country practices in lieu of the corporate governance practices followed by U.S. companies pursuant to the NYSE’s Listed Company Manual. The following is a summary of the significant differences between MUFG’s corporate governance practices and those followed by U.S. listed companies under the NYSE’s Listed Company Manual.

1. A NYSE-listed U.S. company must have a majority of directors that meet the independence requirements under Section 303A of the NYSE’s Listed Company Manual.

As of the date of this Annual Report, we have eight outside directors as members of our board of directors, which consists of a total of fifteen members. Under our governance system, we are required to have independent outside directors on each of our nominating, audit and compensation committees, constituting a majority of its members. For a description of an outside director, see “Item 6.C. Directors, Senior Management and Employees—Board Practices.”

The Tokyo Stock Exchange rules require listed companies, including us, to identify at least one individual who the company believes is unlikely to have a conflict of interest with general shareholders and have such individual serve as an independent director or outside corporate auditor.

Further, companies listed on the Prime Market of the Tokyo Stock Exchange, including us, must have one third (or, in cases where such companies deem appropriate, the majority) of directors qualify as outside directors who are considered independent based on such internal standards as each company establishes pursuant to the Tokyo Stock Exchange requirements, or independent outside directors, or publicly disclose the reason for not having such directors on the board of directors. We have adopted and made public our corporate governance policy providing, among other things, that, in general, the majority of the members of our board of directors will be independent outside directors.

2. A NYSE-listed U.S. company must have an audit committee composed entirely of independent directors.

Under the Companies Act, we are required to have an audit committee consisting of at least three non-executive directors, and the majority of its members must be outside directors. Currently, our audit committee consists of three independent outside directors and two non-executive directors. Our audit committee satisfies the requirements of Rule 10A-3 under the U.S. Securities Exchange Act of 1934, including the independence requirements thereunder.

3. A NYSE-listed U.S. company must have a compensation committee composed entirely of independent directors.

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Under the Companies Act, we are required to have a compensation committee consisting of at least three directors, and the majority of its members must be outside directors. Currently, our compensation committee consists of five directors, four of whom are independent outside directors.

4. A NYSE-listed U.S. company must have a nominating or corporate governance committee composed entirely of independent directors.

Under the Companies Act, we are required to have a nominating committee consisting of at least three directors, and the majority of its members must be outside directors. Currently, our nominating committee, which we call the nominating and governance committee, consists of five directors, four of whom are independent outside directors.

5. A NYSE-listed U.S. company must obtain shareholder approval with respect to any equity compensation plan.

Under the Companies Act, an equity compensation plan for directors and corporate executives is deemed to be compensation for the services performed by the company’s directors and corporate executives. Our compensation committee establishes the policy with respect to the determination of the individual compensation of our directors and corporate executives, including equity compensation in the form of stock compensation plan, and determines individual compensation in accordance with the policy. Under the Companies Act, a public company with board audit, compensation and nominating committees seeking to introduce a stock compensation plan must obtain the approval of its compensation committee, not its shareholders.

6. A NYSE-listed U.S. company must adopt and disclose Corporate Governance Guidelines and a Code of Business Conduct and Ethics, and it must also disclose any exemptions granted to directors or executives.

Our corporate governance policies, which are called the “MUFG Corporate Governance Policies,” are based on applicable home-country rules, particularly the Tokyo Stock Exchange rules, which require listed companies, such as us, to adopt a corporate governance code setting forth fundamental principles designed to establish an effective corporate governance system or explain in their corporate governance reports the reasons for not adopting such a code. We disclose these policies on our website. The Tokyo Stock Exchange rules regarding corporate governance became stricter for companies listed on the Prime Market, including us, starting in April 2022, including without limitation those discussed in 1, 3 and 4 above.

We have adopted a code of conduct, compliance policy, compliance manual, regulations for corporate executives and rules of employment, which meet the definition of “code of ethics” in “Item 16B. Code of Ethics.”

7. A NYSE-listed U.S. company must hold regularly scheduled executive sessions where participants are limited to non-management directors.

Under the Companies Act, Japanese corporations are not obliged to hold executive sessions where participants are limited to non-management directors. Such executive sessions are also not required under our internal corporate governance rules.

Item 16H. Mine Safety Disclosure.

Not Applicable.

Item 16I. Disclosure Regarding Foreign Jurisdictions That Prevent Inspections.

Not Applicable.

Item 16J. Insider Trading Policies.

We currently have in place insider trading policies and procedures called MUFG Insider Trading Control Policy and Insider Trading Control Rule. These policies and procedures apply to our directors, senior management, and employees and are designed to promote compliance with applicable insider trading laws, rules and regulations, and the listing standards applicable to us. A copy of MUFG Insider Trading Control Policy and Insider Trading Control Rule is attached as Exhibit 11(b) to this Annual Report.

Item 16K. Cybersecurity

Overview

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As a financial institution operating globally, we are exposed to various cybersecurity risks, including ransomware, phishing, and distributed denial of service attacks. These risks are often influenced by criminal activity, international conflicts and other threat environments but are becoming increasingly more sophisticated and complex to deal with. In addition, the development and proliferation of advanced technologies, including generative AI, may give rise to new cybersecurity risks, including an increase in sophistication of cyber-attacks, changes in attack methods, and heightened risks of data exfiltration and information leakage. In this rapidly evolving threat landscape, we recognize the importance of addressing cybersecurity not solely as an issue for each individual financial institution but also as a global and systemic risk requiring closer collaboration between and across the government and the financial industry as well as with other relevant industries, including the information and communications technology section and other technology sectors. We take seriously our responsibilities for securing the assets entrusted to us by our customers against cybersecurity threats and our obligation to provide secure and stable financial services. We have identified risks and threats posed by cyber-attacks and other relevant events as one of our top risks and have been developing and implementing cybersecurity measures under management leadership. During the fiscal year ended March 31, 2026, we did not identify any cybersecurity threats that have materially affected, or were reasonably likely to materially affect, our business strategy, results of operations or financial condition.

While we endeavor to remain vigilant for, and continue to develop and implement measures to address, cybersecurity risk, we may not be able to prevent or mitigate a future cybersecurity incident that could have a material adverse impact on our business strategy, performance, and financial stability. See “Item 3.D. Key Information—Risk Factors—Operational Risk—Our operations are highly dependent on our information, communications and transaction management systems and are subject to an increasing risk of cyber-attacks and other information security threats and to changes in the business and regulatory environment.” See also “Item 3.D. Key Information—Risk Factors—Operational Risk—We are exposed to risks related to the development and use of AI by us and others.”

Cybersecurity Risk Management Process

We manage cybersecurity risk as a subset of IT risk, which is included in the broader risk category of operational risk. Operational risk is defined as the risk of potential loss resulting from inadequate or ineffective internal processes, people and systems, or due to external events. Cybersecurity risk management is integrated into our comprehensive risk management framework where we have adopted a three lines of defense approach. The first line of defense is the Cyber Security Division, which is the team primarily responsible for identifying and mitigating risks as well as designing and executing controls to manage cybersecurity risk. The second line of defense is the Corporate Risk Management Division, which reports to the Group Chief Risk Officer (CRO) and which is responsible for assessing and monitoring cybersecurity risk as well as testing the effectiveness of cybersecurity risk controls independently from the first line. The third line of defense is the Internal Audit Division, which audits the effectiveness of first-line and second-line cybersecurity risk management.

Our cybersecurity risk management program incorporates features based on globally recognized standards such as those issued by the National Institute of Standards and Technology (NIST). Based on such globally recognized standards, the Cyber Security Division, which is supervised by the Group Chief Information Security Officer (CISO), establishes policies and standards to protect our information systems and conducts cybersecurity risk assessments. Among its other responsibilities, the Division also focuses on threat intelligence, including centralized information collection and impact analysis on newly discovered vulnerabilities and past experience, and prevention and remediation of such impacts on a global group-wide basis. Additionally, the Division conducts daily monitoring of our external-facing systems to identify and prevent any flaws in security updates or configuration settings. In an effort to enhance our round-the-clock monitoring and incident response capabilities on a global group-wide basis, we have established the MUFG Cyber Security Fusion Center (MUFG CSFC), which specializes in cybersecurity threat analysis and information security solutions. At the subsidiary level, the Computer Security Incident Response Teams (CSIRTs) have been established within subsidiaries to receive, investigate and implement measures in response to reports of cybersecurity incidents from within such respective subsidiaries in coordination with the MUFG Computer Security Incident Response Team (MUFG-CERT), a team established within the Cyber Security Division for centralizing our cybersecurity incident responses.

We regularly conduct exercises and drills designed to ensure our ability to effectively perform cybersecurity incident response functions. We have also expanded our collaborative activities with government agencies, other companies in the financial industry and other information security communities, including the Financial Services Information Sharing and Analysis Center (FS-ISAC), the Financials Information Sharing and Analysis Center Japan (F-ISAC), the Forum of Incident Response and Security Teams (FIRST) and the Japan Computer Emergency Response Team Coordination Center (JPCERT/CC). Furthermore, in order to minimize third-party risks, we conduct risk assessments on third-party vendor contracts prior to contract initiation and subsequently conduct annual reviews to identify any significant changes in the risk environment. We also require our vendors to adhere to the standards set by us in order to ensure that our risk management protocols are consistently maintained. Along with regularly conducted internal reviews of our cybersecurity risk management program against market trends and best practices, we engage audit firms and external consultants as needed, receive evaluations, and utilize the results of these evaluations to continuously ensure and enhance the effectiveness of our program.

Governance

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The Group Chief Information Officer (CIO) is responsible for operating and maintaining our cybersecurity risk management program and regularly reports on significant cybersecurity-related matters to the Board of Directors as well as the Executive Committee. In the fiscal year ended March 31, 2026, the Group CIO reported to the Board of Directors on the progress of, and future plans for, key initiatives, including improvements and plans relating to the enhancement of our cybersecurity posture on a global group-wide basis, medium- to long-term objectives, and related policies and strategies. As the most senior manager responsible for cybersecurity risk, the Group CISO supervises the Cyber Security Division and directly reports to the Group CIO, and also reports to the Group CRO on IT security management policies and the status of associated risks. The Cyber Security Division receives information on cybersecurity incidents from the CSIRTs in accordance with our policies and procedures, supervises and coordinates incident response at our group companies, and provides relevant information to the Group CISO, the Group CIO, the Corporate Risk Management Division and, as appropriate, other senior management members. Our current Group CIO has over twenty years of experience in IT management, including cybersecurity risk management, and has experience as a member of a government information security organization. Similarly, the current Group CISO and senior members of the Cyber Security Division have extensive cybersecurity management experience and expertise, with many members participating in financial industry information security organizations, including the F-ISAC.

The Board of Directors decides key cybersecurity risk management policies and oversees the execution of our cybersecurity risk management program on a global group-wide basis as part of its responsibility for deciding key management policies and overseeing management. The Board of Directors is informed by, and discusses with, the Group CIO, the Group CRO, who is responsible for assessing and overseeing management of material risks on a global group-wide basis, and other management members on important matters relating to risks from cybersecurity threats and management of such risks, while being assisted by board committees, including the Risk Committee and the Audit Committee, with the oversight of the execution of duties related to cybersecurity risk management carried out by directors and corporate executives. The Risk Committee receives reports from management and the Corporate Risk Management Division on, among other things, cybersecurity threats and incidents, risk trends in cybersecurity threat indicators, and the results of evaluations of the effectiveness of first-line controls in cybersecurity threat prevention and detection conducted by external consultants or audit firms, and discusses and makes recommendations to the Board of Directors on material cybersecurity risk-related matters. The Audit Committee obtains reports from management, the Internal Audit Division and external auditors on risks from cybersecurity threats, the management of such risks, and the design and operation of the corporate governance framework for cybersecurity risk management and, based on its analysis and expertise, assists the oversight of cybersecurity risk management by the Board of Directors.

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PART III

Item 17. Financial Statements.

In lieu of responding to this item, we have responded to Item 18 of this Annual Report.

Item 18. Financial Statements.

Our consolidated financial statements are included in this Annual Report, as required by this item, starting on page F-1.

Item 19. Exhibits.


Exhibit						Description

1(a)						Articles of Incorporation of Mitsubishi UFJ Financial Group, Inc., as amended on June 29, 2022 (English translation)*
1(b)						Board of Directors Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on June 25, 2015 (English translation)**
1(c)						Corporation Meetings Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on April 1, 2022 (English translation)***
1(d)						Share Handling Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on August 2, 2022 (English Translation)*
1(e)						Charter of the Audit Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2024 (English translation)*
1(f)						Charter of the Compensation Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2018 (English translation)**
1(g)						Charter of the Nominating and Governance Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2018 (English translation)**
1(h)						Charter of the Risk Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2018 (English translation)**
2(a)						Form of American Depositary Receipt**
2(b)						Form of Deposit Agreement, amended and restated as of December 22, 2004, among Mitsubishi Tokyo Financial Group, Inc. (subsequently renamed Mitsubishi UFJ Financial Group, Inc.), The Bank of New York Mellon and the holders from time to time of American Depositary Receipts issued thereunder**
2(c)						Description of Securities*
8						Subsidiaries of the Company—see “Item 4.C. Information on the Company—Organizational Structure.”
11(a)						MUFG Group Code of Conduct, Compliance Rules, Compliance Manual, and Rules of Employment of Mitsubishi UFJ Financial Group, Inc. applicable to its principal executive officer, principal financial officer, principal accounting officer and persons performing similar functions (English translation of relevant sections)
11(b)						MUFG Insider Trading Control Policy and Insider Trading Control Rule****
12						Certifications required by Rule 13a-14(a) (17 CFR 240.13a-14(a)) or Rule 15d-14(a) (17 CFR 240.15d-14(a))
13						Certifications required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) or Rule 15d-14(b) (17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350)
15(a)						Consent of independent registered public accounting firm (Deloitte Touche Tohmatsu LLC)
15(b)						Consent of independent registered public accounting firm (Deloitte & Touche LLP)
97						MUFG Executive Compensation Recovery Policy*
99(a)						Capitalization and Indebtedness of Mitsubishi UFJ Financial Group, Inc. as of March 31, 2026*****
99(b)						Unaudited Reverse Reconciliation of Selected Financial Information of Mitsubishi UFJ Financial Group, Inc. as of and for the fiscal year ended March 31, 2026******
99(c)						Financial Statements and Supplementary Data of Morgan Stanley*******

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Exhibit						Description
101.INS						Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						The cover page for the Company’s Annual Report on Form 20-F for the year ended March 31, 2026, has been formatted in Inline XBRL

Notes:

* Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 30, 2024.

** Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 12, 2018.

*** Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 8, 2022.

**** Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 7, 2025.

***** Deemed to be incorporated by reference into the registration statement on Form F-3 (No. 333-273681) of Mitsubishi UFJ Financial Group, Inc. and to be a part thereof.

****** Deemed to be incorporated as Annex A to the registration statement on Form F-3 (No. 333-273681) of Mitsubishi UFJ Financial Group, Inc. and to be a part thereof.

******* Incorporated by reference to Morgan Stanley’s annual report on Form 10-K (File No. 001-11758) filed on February 19, 2026.

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SELECTED STATISTICAL DATA

Due to close integration of our foreign and domestic activities, it is difficult to make a precise determination of the assets, liabilities, income and expenses of our foreign operations. The foreign operations as presented include the business conducted by overseas subsidiaries and branches, and the international business principally conducted by the international banking-related divisions headquartered in Japan. Our management believes that the results appropriately represent our domestic and foreign activities.

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I. Distribution of Assets, Liabilities and Equity; Interest Rates and Interest Differential

Average Balance Sheets, Interest and Average Rates

The following table shows our average balances, interest and average interest rates for the fiscal years ended March 31, 2024, 2025 and 2026. Average balances are generally based on a daily average while a month-end average is used for certain average balances when it is not practicable to obtain applicable daily averages.


	Fiscal years ended March 31,
	2024						2025						2026
	Average balance		Interest income		Average rate		Average balance		Interest income		Average rate		Average balance		Interest income		Average rate
	(in millions, except percentages)
Assets:
Interest-earning assets:
Interest-earning deposits in other banks:
Domestic	¥	37,958,267	¥	41,525	0.11	%	¥	90,964,345	¥	223,695	0.25	%	¥	77,130,208	¥	433,177	0.56	%
Foreign	13,640,358		670,938		4.92		11,400,477		564,772		4.95		15,355,062		641,319		4.18
Total	51,598,625		712,463		1.38		102,364,822		788,467		0.77		92,485,270		1,074,496		1.16
Call loans and funds sold:
Domestic	2,009,892		2,342		0.12		792,736		6,182		0.78		1,092,530		9,853		0.90
Foreign	702,269		29,480		4.20		844,228		29,107		3.45		835,559		22,382		2.68
Total	2,712,161		31,822		1.17		1,636,964		35,289		2.16		1,928,089		32,235		1.67
Receivables under resale agreements:
Domestic	6,390,414		(13,660)		(0.21)		6,240,796		(4,491)		(0.07)		4,799,832		8,540		0.18
Foreign	9,342,641		417,024		4.46		12,095,700		738,030		6.10		10,691,543		514,164		4.81
Total	15,733,055		403,364		2.56		18,336,496		733,539		4.00		15,491,375		522,704		3.37
Receivables under securities borrowing transactions:
Domestic	2,169,748		27,039		1.25		2,318,381		34,039		1.47		2,479,817		39,274		1.58
Foreign	2,033,934		96,316		4.74		2,530,390		123,848		4.89		2,405,273		108,391		4.51
Total	4,203,682		123,355		2.93		4,848,771		157,887		3.26		4,885,090		147,665		3.02
Trading account assets:
Domestic	12,257,370		59,742		0.49		11,013,332		64,661		0.59		10,827,177		85,305		0.79
Foreign	21,977,874		742,737		3.38		27,529,123		1,068,900		3.88		31,405,373		1,283,469		4.09
Total	34,235,244		802,479		2.34		38,542,455		1,133,561		2.94		42,232,550		1,368,774		3.24
Investment securities(1):
Domestic	48,966,375		175,044		0.36		43,822,266		258,977		0.59		40,750,285		358,735		0.88
Foreign	12,584,955		545,807		4.34		12,791,656		561,328		4.39		13,212,480		540,018		4.09
Total	61,551,330		720,851		1.17		56,613,922		820,305		1.45		53,962,765		898,753		1.67
Loans(2):
Domestic	68,605,472		917,073		1.34		73,270,847		975,760		1.33		74,686,376		1,187,850		1.59
Foreign	55,244,861		3,445,913		6.24		57,387,038		3,620,766		6.31		60,044,057		3,381,388		5.63
Total	123,850,333		4,362,986		3.52		130,657,885		4,596,526		3.52		134,730,433		4,569,238		3.39
Total interest-earning assets:
Domestic	178,357,538		1,209,105		0.68		228,422,703		1,558,823		0.68		211,766,225		2,122,734		1.00
Foreign	115,526,892		5,948,215		5.15		124,578,612		6,706,751		5.38		133,949,347		6,491,131		4.85
Total	293,884,430		7,157,320		2.44		353,001,315		8,265,574		2.34		345,715,572		8,613,865		2.49
Non-interest-earning assets:
Cash and due from banks	54,549,216						4,717,806						5,423,150
Other non-interest-earning assets	56,163,622						59,585,183						85,417,226
Allowance for credit losses	(1,289,284)						(1,362,890)						(1,210,200)
Total non-interest-earning assets	109,423,554						62,940,099						89,630,176
Total assets	¥	403,307,984					¥	415,941,414					¥	435,345,748

Notes:

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(1)Tax-exempt income of tax-exempt investment securities has not been calculated on a tax equivalent basis because the effect of such calculation would not be material.

(2)Average balances on loans outstanding include all nonaccrual loans and loans modified into troubled debt restructurings. The amortized portion of net loan origination fees (costs) is included in interest income on loans, which accounts for an immaterial amount of an adjustment to the yields.


	Fiscal years ended March 31,
	2024						2025						2026
	Average balance		Interest expense		Average rate		Average balance		Interest expense		Average rate		Average balance		Interest expense		Average rate
	(in millions, except percentages)
Liabilities and equity:
Interest-bearing liabilities:
Deposits:
Domestic	¥	148,636,503	¥	243,534	0.16	%	¥	148,855,516	¥	364,637	0.24	%	¥	152,824,657	¥	570,263		0.37	%
Foreign	56,339,818		2,286,656		4.06		62,746,524		2,473,964		3.94		64,068,081		2,045,989			3.19
Total	204,976,321		2,530,190		1.23		211,602,040		2,838,601		1.34		216,892,738		2,616,252			1.21
Call money and funds purchased:
Domestic	3,201,180		(70)		—		4,517,953		10,433		0.23		4,943,804		28,084			0.57
Foreign	28,351		2,366		8.35		66,601		4,373		6.57		133,671		5,582			4.18
Total	3,229,531		2,296		0.07		4,584,554		14,806		0.32		5,077,475		33,666			0.66
Payables under repurchase agreements:
Domestic	19,048,334		525,262		2.76		19,741,256		477,453		2.42		21,511,205		576,356			2.68
Foreign	12,026,672		545,556		4.54		15,826,812		883,346		5.58		15,207,792		693,568			4.56
Total	31,075,006		1,070,818		3.45		35,568,068		1,360,799		3.83		36,718,997		1,269,924			3.46
Payables under securities lending transactions:
Domestic	771,495		1,698		0.22		435,271		1,839		0.42		853,615		5,889			0.69
Foreign	83,230		5,698		6.85		52,982		8,779		16.57		26,625		4,210			15.81
Total	854,725		7,396		0.87		488,253		10,618		2.17		880,240		10,099			1.15
Commercial paper:
Domestic	1,324,375		287		0.02		1,285,129		4,130		0.32		1,337,758		8,445			0.63
Foreign	5,700,860		312,229		5.48		6,331,140		315,132		4.98		6,941,103		294,068			4.24
Total	7,025,235		312,516		4.45		7,616,269		319,262		4.19		8,278,861		302,513			3.65
Due to trust account, other short-term borrowings and trading account liabilities:
Domestic	11,608,055		45,169		0.39		18,465,565		79,847		0.43		16,888,165		108,420			0.64
Foreign	3,197,341		46,558		1.46		2,879,405		49,818		1.73		2,106,543		75,196			3.57
Total	14,805,396		91,727		0.62		21,344,970		129,665		0.61		18,994,708		183,616			0.97
Long-term debt:
Domestic	37,478,426		459,134		1.23		27,363,764		441,465		1.61		18,988,240		451,056			2.38
Foreign	1,598,846		58,320		3.65		1,633,802		62,161		3.80		1,570,863		62,485			3.98
Total	39,077,272		517,454		1.32		28,997,566		503,626		1.74		20,559,103		513,541			2.50
Total interest-bearing liabilities:
Domestic	222,068,368		1,275,014		0.57		220,664,454		1,379,804		0.63		217,347,444		1,748,513			0.80
Foreign	78,975,118		3,257,383		4.12		89,537,266		3,797,573		4.24		90,054,678		3,181,098			3.53
Total	301,043,486		4,532,397		1.51		310,201,720		5,177,377		1.67		307,402,122		4,929,611			1.60
Non-interest-bearing liabilities	82,912,925						85,809,824						107,654,328
Total equity	19,351,573						19,929,870						20,289,298
Total liabilities and equity	¥	403,307,984					¥	415,941,414					¥	435,345,748
Net interest income and interest rate spread			¥	2,624,923	0.93	%			¥	3,088,197	0.67	%			¥	3,684,254		0.89	%
Net interest income as a percentage of total interest-earning assets					0.89	%					0.87	%						1.07	%

The percentage of total average assets attributable to foreign activities was 35.2%, 36.8% and 38.9% respectively, for the fiscal years ended March 31, 2024, 2025 and 2026.

The percentage of total average liabilities attributable to foreign activities was 31.6%, 32.4% and 34.1%, respectively, for the fiscal years ended March 31, 2024, 2025 and 2026.

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Analysis of Net Interest Income

The following table shows changes in our net interest income by changes in volume and by changes in interest rate for the fiscal year ended March 31, 2025 compared to the fiscal year ended March 31, 2024, and the fiscal year ended March 31, 2026 compared to the fiscal year ended March 31, 2025.


	Fiscal year ended March 31, 2024 versus fiscal year ended March 31, 2025						Fiscal year ended March 31, 2025 versus fiscal year ended March 31, 2026
	Increase (decrease) due to changes in				Net change		Increase (decrease) due to changes in				Net change
	Volume(1)		Rate(1)				Volume(1)		Rate(1)
	(in millions)
Interest income:
Interest-earning deposits in other banks:
Domestic	¥	96,201	¥	85,969	¥	182,170	¥	(38,646)	¥	248,128	¥	209,482
Foreign	(110,930)		4,764		(106,166)		174,741		(98,194)		76,547
Total	(14,729)		90,733		76,004		136,095		149,934		286,029
Call loans and funds sold:
Domestic	(2,194)		6,034		3,840		2,597		1,074		3,671
Foreign	5,394		(5,767)		(373)		(296)		(6,429)		(6,725)
Total	3,200		267		3,467		2,301		(5,355)		(3,054)
Receivables under resale agreements:
Domestic	313		8,856		9,169		812		12,219		13,031
Foreign	142,971		178,035		321,006		(79,251)		(144,615)		(223,866)
Total	143,284		186,891		330,175		(78,439)		(132,396)		(210,835)
Receivables under securities borrowing transactions:
Domestic	1,944		5,056		7,000		2,457		2,778		5,235
Foreign	24,203		3,329		27,532		(5,938)		(9,519)		(15,457)
Total	26,147		8,385		34,532		(3,481)		(6,741)		(10,222)
Trading account assets:
Domestic	(6,474)		11,393		4,919		(1,111)		21,755		20,644
Foreign	205,180		120,983		326,163		156,265		58,304		214,569
Total	198,706		132,376		331,082		155,154		80,059		235,213
Investment securities(2)：
Domestic	(20,053)		103,986		83,933		(19,268)		119,026		99,758
Foreign	9,027		6,494		15,521		18,056		(39,366)		(21,310)
Total	(11,026)		110,480		99,454		(1,212)		79,660		78,448
Loans:
Domestic	62,142		(3,455)		58,687		19,182		192,908		212,090
Foreign	134,806		40,047		174,853		162,217		(401,595)		(239,378)
Total	196,948		36,592		233,540		181,399		(208,687)		(27,288)
Total interest income:
Domestic	131,879		217,839		349,718		(33,977)		597,888		563,911
Foreign	410,651		347,885		758,536		425,794		(641,414)		(215,620)
Total	¥	542,530	¥	565,724	¥	1,108,254	¥	391,817	¥	(43,526)	¥	348,291

Notes:

(1)Volume/rate variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total “net change.”

(2)Tax-exempt income of tax-exempt investment securities has not been calculated on a tax equivalent basis because the effect of such calculation would not be material.

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	Fiscal year ended March 31, 2024 versus fiscal year ended March 31, 2025						Fiscal year ended March 31, 2025 versus fiscal year ended March 31, 2026
	Increase (decrease) due to changes in				Net change		Increase (decrease) due to changes in				Net change
	Volume(1)		Rate(1)				Volume(1)		Rate(1)
	(in millions)
Interest expense:
Deposits:
Domestic	¥	360	¥	120,743	¥	121,103	¥	9,970	¥	195,656	¥	205,626
Foreign	254,093		(66,785)		187,308		51,118		(479,093)		(427,975)
Total	254,453		53,958		308,411		61,088		(283,437)		(222,349)
Call money and funds purchased:
Domestic	(17)		10,520		10,503		1,070		16,581		17,651
Foreign	2,604		(597)		2,007		3,227		(2,018)		1,209
Total	2,587		9,923		12,510		4,297		14,563		18,860
Payables under repurchase agreements:
Domestic	18,571		(66,380)		(47,809)		44,903		54,000		98,903
Foreign	195,352		142,438		337,790		(33,437)		(156,341)		(189,778)
Total	213,923		76,058		289,981		11,466		(102,341)		(90,875)
Payables under securities lending transactions:
Domestic	(959)		1,100		141		2,442		1,608		4,050
Foreign	(2,670)		5,751		3,081		(4,184)		(385)		(4,569)
Total	(3,629)		6,851		3,222		(1,742)		1,223		(519)
Commercial paper:
Domestic	(9)		3,852		3,843		176		4,139		4,315
Foreign	32,795		(29,892)		2,903		28,585		(49,649)		(21,064)
Total	32,786		(26,040)		6,746		28,761		(45,510)		(16,749)
Due to trust account, other short-term borrowings and trading account liabilities:
Domestic	29,182		5,496		34,678		(7,316)		35,889		28,573
Foreign	(4,931)		8,191		3,260		(16,238)		41,616		25,378
Total	24,251		13,687		37,938		(23,554)		77,505		53,951
Long-term debt:
Domestic	(141,972)		124,303		(17,669)		(160,221)		169,812		9,591
Foreign	1,294		2,547		3,841		(2,445)		2,769		324
Total	(140,678)		126,850		(13,828)		(162,666)		172,581		9,915
Total interest expense:
Domestic	(94,844)		199,634		104,790		(108,976)		477,685		368,709
Foreign	478,537		61,653		540,190		26,626		(643,101)		(616,475)
Total	¥	383,693	¥	261,287	¥	644,980	¥	(82,350)	¥	(165,416)	¥	(247,766)
Net interest income:
Domestic	¥	226,723	¥	18,205	¥	244,928	¥	74,999	¥	120,203	¥	195,202
Foreign	(67,886)		286,232		218,346		399,168		1,687		400,855
Total	¥	158,837	¥	304,437	¥	463,274	¥	474,167	¥	121,890	¥	596,057

Note:

(1)Volume/rate variance is allocated based on the percentage relationship of changes in volume and changes in rate to the total “net change.”

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II. Investments in Debt Securities

The following table presents the book values, maturities and weighted average yields of Available-for-sale debt securities and Held-to-maturity debt securities at March 31, 2026. Weighted average yields are calculated based on amortized cost, excluding the effect of hedging derivatives. Yields on tax-exempt obligations have not been calculated on a tax equivalent basis because the effect of such calculation would not be material:


	Maturities within one year				Maturities after one year but within five years				Maturities after five years but within ten years				Maturities after ten years				Total
	Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield		Amount		Yield
	(in millions, except percentages)
Available-for-sale debt securities:
Japanese national government and Japanese government agency bonds	¥	11,459,336	0.27	%	¥	201,579	0.72	%	¥	1,778,595	0.80	%	¥	477,033	0.65	%	¥	13,916,543	0.36	%
Japanese prefectural and municipal bonds	6,998		0.03		138,728		0.11		20,725		0.15		—		—		166,451		0.11
Foreign government and official institution bonds	1,626,887		1.99		1,879,927		3.71		1,065,354		3.97		27,058		6.64		4,599,226		3.18
Corporate bonds	210,459		0.75		602,655		1.61		161,909		1.24		6,237		1.54		981,260		1.36
Residential mortgage-backed securities	259		0.77		5,822		1.10		228,120		1.06		782,821		1.07		1,017,022		1.07
Asset-backed securities	342,777		3.07		1,124,952		3.64		127,336		2.79		5,257		1.65		1,600,322		3.44
Other debt securities	275,430		1.70		78,087		5.99		—		—		—		—		353,517		2.65
Total	¥	13,922,146	0.57	%	¥	4,031,750	3.13	%	¥	3,382,039	1.88	%	¥	1,298,406	1.00	%	¥	22,634,341	1.25	%

Held-to-maturity debt securities:
Japanese national government and Japanese government agency bonds	¥	2,722,078	0.02	%	¥	4,582,141	0.11	%	¥	8,486,529	1.14	%	¥	799,287	0.64	%	¥	16,590,035	0.65	%
Japanese prefectural and municipal bonds	219,090		0.04		1,166,014		0.29		1,462,224		0.88		—		—		2,847,328		0.57
Corporate bonds	16,381		0.34		227,391		0.78		—		—		—		—		243,772		0.75
Residential mortgage -backed securities	—		—		—		—		—		—		4,488,121		4.74		4,488,121		4.74
Asset-backed securities	—		—		34,104		2.23		157,329		4.96		1,651,872		4.57		1,843,305		4.56
Total	¥	2,957,549	0.03	%	¥	6,009,650	0.18	%	¥	10,106,082	1.16	%	¥	6,939,280	4.23	%	¥	26,012,561	1.62	%

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III. Loan Portfolio

The following table shows the maturities of our loan portfolio at March 31, 2026:


	Maturity
	One year or less		One to five years		Five to 15 years		Over 15 years		Total
	(in millions)
Commercial
Domestic	¥	31,326,544	¥	22,345,769	¥	8,931,005	¥	1,589,029	¥	64,192,347
Foreign	26,808,006		23,353,876		5,130,819		379,664		55,672,365
Residential	658,535		2,422,082		5,080,590		4,681,303		12,842,510
Card	335,315		211,022		11,171		—		557,508
Krungsri	3,432,676		3,782,806		1,751,288		878,007		9,844,777
Other	818,744		993,908		360,268		43,053		2,215,973
Total	¥	63,379,820	¥	53,109,463	¥	21,265,141	¥	7,571,056	¥	145,325,480
Unearned income, unamortized premiums—net and deferred loan fees—net									(506,256)
Total									¥	144,819,224

The above loans due after one year which had predetermined interest rates and floating or adjustable interest rates at March 31, 2026 are shown below:


	Predetermined rate		Floating or adjustable rate		Total
	(in millions)
Commercial
Domestic	¥	20,263,286	¥	12,602,517	¥	32,865,803
Foreign	1,872,163		26,992,196		28,864,359
Residential	1,479,089		10,704,886		12,183,975
Card	222,193		—		222,193
Krungsri	3,561,942		2,850,159		6,412,101
Other	887,562		509,667		1,397,229
Total	¥	28,286,235	¥	53,659,425	¥	81,945,660

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IV. Allowance for Credit Losses

The following table shows an allocation of our allowance for credit losses, credit ratios, and components for ratio calculations at March 31, 2025 and 2026:


	2025				2026
	Amount		% of loans in each category to total loans		Amount		% of loans in each category to total loans
	(in millions, except percentages)
Commercial
Domestic	¥	324,787	46.76	%	¥	266,354	44.18	%
Foreign	286,835		35.06		301,245		38.31
Residential	49,607		9.53		32,776		8.84
Card	40,927		0.38		46,021		0.38
Krungsri	423,857		6.71		477,229		6.77
Other	117,062		1.56		110,715		1.52
Allowance for credit losses Total	¥	1,243,075	100.00	%	¥	1,234,340	100.00	%

Loans, net of unearned income, unamortized premiums and deferred loan fees	¥	131,438,515			¥	144,819,224
Nonaccrual loans	¥	996,959			¥	944,646
Allowance for credit losses as a percentage of loans	0.95%				0.85%
Nonaccrual loans as a percentage of loans	0.76%				0.65%
Allowance for credit losses as a percentage of Nonaccrual loans	124.69%				130.67%

The following table shows ratio of net charge-offs to average loans outstanding for the fiscal years ended March 31, 2024, 2025 and 2026:


	Fiscal years ended March 31,
	2024						2025						2026
	Net charge-offs		Average loans outstanding		Ratio		Net charge-offs		Average loans outstanding		Ratio		Net charge-offs		Average loans outstanding		Ratio
	(in millions, except percentages)
Commercial
Domestic	¥	34,267	¥	55,649,331	0.06	%	¥	1,888	¥	60,138,504	0.00	%	¥	17,311	¥	61,713,320	0.03	%
Foreign	24,037		45,314,415		0.05		40,813		46,846,684		0.09		59,546		48,974,273		0.12
Residential	1,283		12,481,513		0.01		628		12,646,144		0.00		1,005		12,456,366		0.01
Card	20,307		474,628		4.28		21,103		486,199		4.34		24,933		516,690		4.83
Krungsri	147,785		8,326,493		1.77		159,303		8,635,694		1.84		154,660		9,120,459		1.70
Other	21,460		1,603,953		1.34		42,524		1,904,660		2.23		39,059		1,949,325		2.00
Total	¥	249,139	¥	123,850,333	0.20	%	¥	266,259	¥	130,657,885	0.20	%	¥	296,514	¥	134,730,433	0.22	%

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V. Deposits

The following table shows the average amount of, and the average rate paid on, the following deposit categories for the fiscal years ended March 31, 2024, 2025 and 2026:


	Fiscal years ended March 31,
	2024				2025				2026
	Average amount		Average rate		Average amount		Average rate		Average amount		Average rate
	(in millions, except percentages)
Domestic offices:
Non-interest-bearing demand deposits	¥	35,736,511	—	%	¥	35,141,334	—	%	¥	32,142,228	—	%
Interest-bearing demand deposits	107,034,059		0.15		109,200,798		0.22		108,592,162		0.34
Deposits at notice	1,491,428		0.07		1,154,956		0.15		965,590		0.28
Time deposits	37,319,953		0.21		36,574,855		0.33		40,426,253		0.46
Certificates of deposit	2,791,063		0.02		1,924,907		0.16		2,840,652		0.55
Foreign offices:
Non-interest-bearing demand deposits	2,610,110		—		2,655,570		—		2,704,019		—
Interest-bearing deposits, principally time deposits and certificates of deposit	56,339,818		4.06		62,746,524		3.94		64,068,081		3.19
Total	¥	243,322,942			¥	249,398,944			¥	251,738,985

Deposits at notice represent interest-bearing demand deposits which require the depositor to give two or more days notice in advance of withdrawal.

The average amounts of total deposits by foreign depositors included in domestic offices for the fiscal years ended March 31, 2024, 2025 and 2026 were ¥1,313,848 million, ¥1,392,267 million and ¥1,388,274 million, respectively.

At March 31, 2025 and 2026, our uninsured deposits were ¥162,771 billion and ¥175,188 billion, respectively. Our uninsured deposits consist of (1) the portion of deposits in domestic offices that are in excess of the limit stipulated by the Deposit Insurance Act in Japan and (2) deposits that are otherwise uninsured (including for example, uninsured account deposits in domestic offices, uninsured account deposits in foreign offices, or the portion of deposits in foreign offices that are in excess of any country-specific insurance fund limit). Under the Deposit Insurance Act in Japan, the maximum amount of protection is ¥10 million per customer within one bank. The ¥10 million maximum applies to all deposits in domestic offices, except for non-interest bearing deposits, which are non-interest bearing deposits redeemable on demand and maintained by depositors primarily in settlement accounts for payment and settlement purposes. Domestic office's deposits in settlement accounts are fully protected without a maximum amount limitation. Certain types of deposits in domestic offices are not covered by the deposit insurance system, such as foreign currency deposits and negotiable certificates of deposit.

At March 31, 2026, (1) the portion of time deposits in domestic offices that are in excess of the limit stipulated by the Deposit Insurance Act in Japan and (2) time deposits that are otherwise uninsured (including for example, uninsured account time deposits in domestic offices, uninsured account time deposits in foreign offices, or the portion of time deposits in foreign offices that are in excess of any country-specific insurance fund limit), by remaining maturity, are shown in the following table:


	Portion of time deposits in domestic offices that are in excess of the limit stipulated by the Deposit Insurance Act in Japan		Time deposits that are otherwise uninsured		Total
	(in millions)
Three months or less	¥	10,884,027	¥	34,632,225	¥	45,516,252
Over three months through six months	5,585,025		9,025,716		14,610,741
Over six months through twelve months	5,160,483		4,355,207		9,515,690
Over twelve months	4,065,941		896,672		4,962,613
Total	¥	25,695,476	¥	48,909,820	¥	74,605,296

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Table of Contents

CONSOLIDATED FINANCIAL STATEMENTS

INDEX


			Page
Report of Independent Registered Public Accounting Firm (PCAOB ID No.1044)			F-3
Consolidated Balance Sheets as of March 31, 202 5 and 2026			F-6
Consolidated Statements of Income for the Fiscal Years ended March 31, 202 4 , 202 5 and 2026			F-8
Consolidated Statements of Comprehensive Income for the Fiscal Years ended March 31, 202 4 , 202 5 and 2026			F-10
Consolidated Statements of Equity for the Fiscal Years ended March 31, 202 4 , 202 5 and 2026			F-11
Consolidated Statements of Cash Flows for the Fiscal Years ended March 31, 202 4 , 202 5 and 2026			F-13
Notes to Consolidated Financial Statements			F-15
1. Basis of Financial Statements and Summary of Significant Accounting Policies			F-15
2. Business Developments			F-25
3. Investment Securities			F-31
4. Loans and Allowance for Credit Losses			F-36
5. Premises and Equipment			F-49
6. Goodwill and Other Intangible Assets			F-50
7. Lease Transactions			F-52
8. Income Taxes			F-55
9. Pledged Assets and Collateral			F-62
10. Deposits			F-63
11. Call Money and Funds Purchased			F-65
12. Due to Trust Account, Short-term Borrowings and Long-term Debt			F-65
13. Severance Indemnities and Pension Plans			F-69
14. Other Assets and Liabilities			F-79
15. Offsetting of Derivatives, Repurchase Agreements, and Securities Lending Transactions			F-81
16. Repurchase Agreements and Securities Lending Transactions Accounted for as Secured Borrowings			F-82
17. Preferred Stock			F-84
18. Common Stock and Capital Surplus			F-85
19. Retained Earnings, Legal Reserve and Dividends			F-86
20. Accumulated Other Comprehensive Income (Loss)			F-88
21. Regulatory Capital Requirements			F-92
22. Earnings (Loss) per Common Share Applicable to Common Shareholders of MUFG			F-96
23. Derivative Financial Instruments			F-97
24. Obligations Under Guarantees and Other Off-balance Sheet Instruments			F-101
25. Variable Interest Entities			F-104
26. Contingent Liabilities			F-112
27. Fees and Commissions Income			F-113
28. Trading Account Profits and Losses			F-114
29. Business Segments			F-114
30. Foreign Activities			F-118
31. Fair Value			F-120
32. Parent Company Only Financial Information			F-136
33. Subsequent Events			F-139

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Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and the Shareholders of

Mitsubishi UFJ Financial Group, Inc.

(Kabushiki Kaisha Mitsubishi UFJ Financial Group)

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Mitsubishi UFJ Financial Group, Inc. (Kabushiki Kaisha Mitsubishi UFJ Financial Group) (“MUFG”) and subsidiaries (together, the “MUFG Group”) as of March 31, 2025 and 2026, the related consolidated statements of income, comprehensive income, equity and cash flows for each of the three years in the period ended March 31, 2026, and the related notes (collectively referred to as the “financial statements”) (all expressed in Japanese yen). In our opinion, the financial statements present fairly, in all material respects, the financial position of the MUFG Group as of March 31, 2025 and 2026, and the results of its operations and its cash flows for each of the three years in the period ended March 31, 2026, in conformity with accounting principles generally accepted in the United States of America.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the MUFG Group’s internal control over financial reporting as of March 31, 2026, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated July 6, 2026, expressed an unqualified opinion on the MUFG Group’s internal control over financial reporting.

Basis for Opinion

These financial statements are the responsibility of the MUFG Group’s management. Our responsibility is to express an opinion on the MUFG Group’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the MUFG Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current-period audit of the financial statements that were communicated or required to be communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

Allowance for Credit Losses—Commercial and Krungsri Segments — Macroeconomic Variables in Multiple Economic Forecast Scenarios and Weightings Given to Each Scenario—Refer to Notes 1 and 4 to the Financial Statements

Critical Audit Matter Description

The MUFG Group has banking subsidiaries that engage in lending as one of their core businesses. It maintains an allowance for credit losses, which is an estimate of the credit losses that are expected over the life, or exposure, of the financial instrument. The estimation of the allowance for credit losses involves significant judgments on a number of assumptions, including the assessment of risk characteristics, assignment of a borrower’s internal credit rating, valuation of collateral, expectations of future economic conditions and the development of qualitative adjustments. The MUFG Group divides its loan portfolio into the following segments—Commercial, Residential, Card, Krungsri, and Other—and determines the allowance for credit losses for each segment.

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variables include, but are not limited to, unemployment rates and gross domestic product. As any one economic forecast scenario is inherently uncertain, multiple economic forecast scenarios were leveraged. The macroeconomic variables in multiple economic forecast scenarios and weightings given to each scenario depend on a variety of factors including recent economic conditions and views of internal as well as third-party economists.

The determination of the allowance for credit losses for the Commercial and Krungsri segments required management to make significant judgments due to the subjectivity and uncertainty associated with expectations of future economic conditions. Due to the heightened volatility and uncertainty primarily arising from changes in global economic conditions, inflation, monetary and trade policies, and geopolitical situations, there was a particularly high degree of uncertainty necessitating subjective judgments to be made by management to determine certain macroeconomic variables in the multiple economic forecast scenarios and the weightings given to each scenario.

Thus, we identified certain macroeconomic variables in the multiple economic forecast scenarios and the weightings given to each scenario, which are used to determine the allowance for credit losses for certain loans within the Commercial and Krungsri segments as critical audit matters. Auditing these significant assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our credit specialists, when performing audit procedures to evaluate the reasonableness of these significant assumptions.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to certain macroeconomic variables in the multiple economic forecast scenarios and the weightings given to each scenario used to determine the allowance for credit losses for certain loans within the Commercial and Krungsri segments included the following, among others:

•We tested the effectiveness of controls, including the review and approval of certain macroeconomic variables in the multiple economic forecast scenarios, and the review and approval of the weightings given to each scenario.

•We tested the effectiveness of controls over the completeness and accuracy of the key information used in performing the aforementioned controls.

•With the assistance of our credit specialists, we evaluated the reasonableness of certain macroeconomic variables in the multiple economic forecast scenarios, such as unemployment rate and gross domestic product, and the reasonableness of the weightings given to each scenario by comparing to macroeconomic forecasts from available external sources.

Allowance for Credit Losses — Krungsri Segment — Qualitative Adjustments—Refer to Notes 1 and 4 to the Financial Statements

Critical Audit Matter Description

The allowance for credit losses includes qualitative adjustments to cover losses that are expected but were not reflected in the modeled allowance.

The determination of the allowance for credit losses for the Krungsri segment required management to make significant judgments due to the subjectivity and uncertainty associated with the development of qualitative adjustments. There was a particularly high degree of uncertainty necessitating subjective judgments to be made by management to develop certain qualitative adjustments to capture the effects on modeled expected credit losses primarily arising from inflation and temporary relief measures for the Krungsri segment.

Thus, we identified certain qualitative adjustments included in the allowance for credit losses for certain loans within the Krungsri segment as a critical audit matter. Auditing these significant assumptions required a high degree of auditor judgment and an increased extent of effort, including the need to involve our credit specialists, when performing audit procedures to evaluate the reasonableness of these significant assumptions.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to certain qualitative adjustments included in the allowance for credit losses for certain loans within the Krungsri segment included the following, among others:

•We tested the effectiveness of controls, including the review and approval of the quantitative models and methodologies, and the review and approval of certain qualitative adjustments to modeled results.

•We tested the effectiveness of controls over the completeness and accuracy of the key information used in performing the aforementioned controls.

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•With the assistance of our credit specialists, we evaluated the appropriateness of the quantitative models and methodologies by assessing the conceptual soundness and model performance by inspecting model documentation as well as reperforming model performance testing to determine whether the models operated as intended.

•With the assistance of credit specialists, we evaluated the reasonableness of the use of qualitative adjustments to modeled results and tested significant judgments applied by management by comparing management’s results to available relevant external information.

Allowance for Credit Losses—Commercial Segment—Internal Credit Rating—Refer to Notes 1 and 4 to the Financial Statements

Critical Audit Matter Description

The determination of the allowance for credit losses for the Commercial segment required management to make significant judgments, due to the subjectivity and uncertainty associated with the determination of internal credit rating for borrowers who were experiencing weakness in their business performance, which were highly dependent on the estimation of a borrower’s performance and business sustainability. When these borrowers’ performance and business sustainability were affected by changes in the external and internal business environment, including changes in global economic conditions, inflation, monetary and trade policies, and geopolitical situations, there was a particularly high degree of uncertainty necessitating subjective judgments to be made by management to determine the borrowers’ internal credit rating.

Thus, for borrowers who were experiencing weakness in their business performance, we identified the internal credit rating used to determine the allowance for credit losses for certain loans within the Commercial segment as a critical audit matter. Auditing the borrowers’ internal credit rating required a high degree of auditor judgment and an increased extent of effort, including the need to involve our credit specialists, when performing audit procedures to evaluate the reasonableness of these significant assumptions.

How the Critical Audit Matter Was Addressed in the Audit

Our audit procedures related to the internal credit rating for particular borrowers used to determine the allowance for credit losses for certain loans within the Commercial segment included the following, among others:

•We tested the effectiveness of controls, including the review and approval of the borrowers’ internal credit rating.

•We tested the effectiveness of controls over the completeness and accuracy of the key information used in performing the aforementioned controls, including the borrowers’ underlying information.

•With the assistance of our credit specialists, we tested significant judgments applied by management to determine the internal credit rating and the appropriateness of the borrowers’ underlying information by comparing them with available relevant external information.

/s/Deloitte Touche Tohmatsu LLC

Tokyo, Japan

July 6, 2026

We have served as the MUFG Group’s auditor since 1976.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

AS OF MARCH 31, 2025 AND 2026


(in millions)	2025		2026
ASSETS
Cash and due from banks (Note 9)	¥	4,591,186	¥	4,366,847
Interest-earning deposits in other banks (Note 9)	104,706,928		86,003,138
Cash, due from banks and interest-earning deposits in other banks	109,298,114		90,369,985
Call loans and funds sold	1,675,996		2,169,843
Receivables under resale agreements (Note 15)	18,781,735		16,884,970
Receivables under securities borrowing transactions (Note 15)	5,700,568		5,493,072
Trading account assets (including assets pledged that secured parties are permitted to sell or repledge of ¥9,276,102 and ¥9,477,439 in 2025 and 2026) (including ¥22,492,917 and ¥26,584,447 measured at fair value under the fair value option in 2025 and 2026) (Notes 9, 15, 23 and 31)	59,417,128		83,921,911
Investment securities (Notes 3, 9 and 31):
Available-for-sale debt securities (including assets pledged that secured parties are permitted to sell or repledge of ¥5,907,604 and ¥2,374,154 in 2025 and 2026)	30,413,168		22,634,341
Held-to-maturity debt securities (including assets pledged that secured parties are permitted to sell or repledge of ¥8,065,154 and ¥7,613,928 in 2025 and 2026) (fair value of ¥22,646,993 and ¥24,893,230 in 2025 and 2026)	23,272,185		26,012,561
Equity securities (including assets pledged that secured parties are permitted to sell or repledge of ¥970 and ¥1,070 in 2025 and 2026) (including ¥4,029,561 and ¥4,525,490 in 2025 and 2026 measured at fair value)	4,633,194		5,172,605
Total investment securities	58,318,547		53,819,507
Loans, net of unearned income, unamortized premiums and deferred loan fees (including assets pledged that secured parties are permitted to sell or repledge of ¥84,440 and ¥76,970 in 2025 and 2026) (Notes 4 and 9)	131,438,515		144,819,224
Allowance for credit losses (Note 4)	(1,243,075)		(1,234,340)
Net loans	130,195,440		143,584,884
Premises and equipment—net (Notes 5 and 7)	919,854		1,084,857
Customers’ acceptance liability	538,752		447,790
Intangible assets—net (Notes 2 and 6)	1,402,515		1,475,018
Goodwill (Notes 2 and 6)	558,164		566,536
Other assets (net of allowance for credit losses of ¥19,921 and ¥25,307 at March 31, 2025 and 2026) (Notes 7, 8, 9, 13, 14 and 31)	19,133,398		25,763,279
Total assets	¥	405,940,211	¥	425,581,652
Assets of consolidated VIEs included in total assets above that can be used only to settle obligations of consolidated VIEs (Note 25)
Cash and due from banks	¥	8,641	¥	13,913
Interest-earning deposits in other banks	22,136		103,720
Trading account assets	1,379,227		1,498,332
Investment securities	2,478,281		2,570,969
Loans	16,709,249		17,753,121
All other assets	1,890,684		2,141,709
Total assets of consolidated VIEs	¥	22,488,218	¥	24,081,764

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS—(Continued)

AS OF MARCH 31, 2025 AND 2026


(in millions, except shares)	2025		2026
LIABILITIES AND EQUITY
Deposits (Notes 9 and 10):
Domestic offices:
Non-interest-bearing	¥	34,154,307	¥	32,833,519
Interest-bearing	149,768,412		158,116,399
Overseas offices:
Non-interest-bearing	2,665,734		3,026,930
Interest-bearing	62,826,553		66,778,492
Total deposits	249,415,006		260,755,340
Call money and funds purchased (Notes 9 and 11)	5,016,678		5,257,237
Payables under repurchase agreements (Notes 9, 15 and 16)	43,663,859		39,516,053
Payables under securities lending transactions (Notes 9, 15 and 16)	718,451		1,252,146
Due to trust account and other short-term borrowings (including ¥170,389 and ¥3,005 measured at fair value under the fair value option in 2025 and 2026) (Notes 9, 12 and 31)	28,399,567		14,636,254
Trading account liabilities (Notes 15, 23 and 31)	21,502,912		41,104,659
Bank acceptances outstanding	538,752		447,790
Long-term debt (including ¥153,742 and ¥79,698 measured at fair value under the fair value option in 2025 and 2026) (Notes 7, 9, 12 and 31)	21,022,407		21,884,349
Other liabilities (Notes 1, 7, 8, 9, 13, 14, 15, 16, 26 and 31)	16,412,841		19,887,767
Total liabilities	386,690,473		404,741,595
Commitments and contingent liabilities (Notes 24 and 26)
Mitsubishi UFJ Financial Group shareholders’ equity:
Capital stock (Notes 17 and 18)—common stock authorized, 33,000,000,000 shares; common stock issued, 12,067,710,920 shares and 11,867,710,920 shares at March 31, 2025 and 2026, with no stated value	2,090,270		2,090,270
Capital surplus (Note 18)	4,300,021		4,014,472
Retained earnings (Notes 19 and 33):
Appropriated for legal reserve	239,571		239,571
Unappropriated retained earnings	9,821,359		10,703,489
Accumulated other comprehensive income, net of taxes (Note 20)	2,561,190		3,460,451
Treasury stock, at cost—561,241,249 common shares and 580,142,679 common shares at March 31, 2025 and 2026	(726,925)		(935,120)
Total Mitsubishi UFJ Financial Group shareholders’ equity	18,285,486		19,573,133
Noncontrolling interests	964,252		1,266,924
Total equity	19,249,738		20,840,057
Total liabilities and equity	¥	405,940,211	¥	425,581,652
Liabilities of consolidated VIEs for which creditors or beneficial interest holders do not have recourse to the general credit of Mitsubishi UFJ Financial Group (Note 25)
Other short-term borrowings	¥	42,029	¥	51,524
Long-term debt	370,917		395,011
All other liabilities	176,028		187,379
Total liabilities of consolidated VIEs	¥	588,974	¥	633,914

See the accompanying notes to Consolidated Financial Statements.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE FISCAL YEARS ENDED MARCH 31, 2024, 2025 AND 2026


(in millions)	2024		2025		2026
Interest income:
Loans, including fees (Note 4)	¥	4,362,986	¥	4,596,526	¥	4,569,238
Deposits in other banks	712,463		788,467		1,074,496
Investment securities:
Interest	572,895		657,301		730,302
Dividends	147,956		163,004		168,451
Trading account assets	802,479		1,133,561		1,368,774
Call loans and funds sold	31,822		35,289		32,235
Receivables under resale agreements and securities borrowing transactions	526,719		891,426		670,369
Total	7,157,320		8,265,574		8,613,865
Interest expense:
Deposits	2,530,190		2,838,601		2,616,252
Call money and funds purchased	2,296		14,806		33,666
Payables under repurchase agreements and securities lending transactions	1,078,214		1,371,417		1,280,023
Due to trust account, other short-term borrowings and trading account liabilities	404,243		448,927		486,129
Long-term debt	517,454		503,626		513,541
Total	4,532,397		5,177,377		4,929,611
Net interest income	2,624,923		3,088,197		3,684,254
Provision for credit losses (Note 4)	258,795		121,790		226,112
Net interest income after provision for credit losses	2,366,128		2,966,407		3,458,142
Non-interest income:
Fees and commissions income (Note 27)	1,910,665		2,185,727		2,422,269
Foreign exchange gains (losses)—net (Note 28)	(296,487)		153,959		(636,227)
Trading account profits (losses)—net (Notes 28 and 31)	(703,913)		32,262		(650,573)
Investment securities gains (losses)—net (Note 3)	1,382,458		(832,533)		666,069
Equity in earnings of equity method investees—net (Note 14)	464,054		669,400		871,185
Gains (losses) on sales of loans including valuation adjustment for loans held for sale (Note 4)	(44,996)		41,660		4,766
Unrealized gain on the contract to purchase equity shares of Shriram Finance Limited (Note 33)	—		—		25,111
Other non-interest income	163,603		320,060		550,799
Total	2,875,384		2,570,535		3,253,399
Non-interest expense:
Salaries and employee benefits (Note 13)	1,406,498		1,473,650		1,593,995
Occupancy expenses—net (Notes 5 and 26)	156,885		160,032		162,142
Fees and commissions expenses	387,480		424,618		477,741
Outsourcing expenses, including data processing	320,560		325,057		396,703
Depreciation of premises and equipment (Note 5)	80,023		88,279		87,760
Amortization of intangible assets (Note 6)	288,538		295,129		337,134
Impairment of intangible assets (Note 6)	15,042		14,353		8,417
Insurance premiums, including deposit insurance	92,061		98,855		100,555
Communications	59,218		64,963		68,091
Taxes and public charges	107,154		113,107		143,251
Impairment of goodwill (Note 6)	—		150,089		97,475
Provision for (reversal of) off-balance sheet credit instruments	33,289		(727)		(23,310)
Other non-interest expenses (Notes 5 and 26)	416,538		533,961		752,092
Total	3,363,286		3,741,366		4,202,046

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME—(Continued)

FOR THE FISCAL YEARS ENDED MARCH 31, 2024, 2025 AND 2026


(in millions, except per share amount)	2024		2025		2026
Income before income tax expense	1,878,226		1,795,576		2,509,495
Income tax expense (Note 8)	500,657		527,938		625,591
Net income before attribution of noncontrolling interests	1,377,569		1,267,638		1,883,904
Net income attributable to noncontrolling interests	51,700		705		154,545
Net income attributable to Mitsubishi UFJ Financial Group	¥	1,325,869	¥	1,266,933	¥	1,729,359
Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group	¥	1,325,869	¥	1,266,933	¥	1,729,359
Earnings per common share applicable to common shareholders of Mitsubishi UFJ Financial Group (Notes 19 and 22):
Basic earnings per common share—Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group	¥	110.69	¥	108.71	¥	151.74
Diluted earnings per common share—Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group	110.39		108.18		151.09
Weighted average common shares outstanding	11,979		11,654		11,397
Weighted average diluted common shares outstanding	11,981		11,655		11,398

See the accompanying notes to Consolidated Financial Statements.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE FISCAL YEARS ENDED MARCH 31, 2024, 2025 AND 2026


(in millions)	2024		2025		2026
Net income before attribution of noncontrolling interests	¥	1,377,569	¥	1,267,638	¥	1,883,904
Other comprehensive income, net of tax (Note 20):
Net unrealized gains on investment securities	44,499		26,936		14,346
Net debt valuation adjustments	(44,650)		11,261		2,818
Net unrealized losses on derivatives qualifying for cash flow hedges	(636)		(1,647)		(6,293)
Defined benefit plans (Note 13)	382,855		71,316		215,587
Foreign currency translation adjustments	1,080,209		365,608		682,974
Total	1,462,277		473,474		909,432
Comprehensive income	2,839,846		1,741,112		2,793,336
Net income attributable to noncontrolling interests	51,700		705		154,545
Other comprehensive income attributable to noncontrolling interests	95,706		149,909		10,171
Comprehensive income attributable to Mitsubishi UFJ Financial Group	¥	2,692,440	¥	1,590,498	¥	2,628,620

See the accompanying notes to Consolidated Financial Statements.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY

FOR THE FISCAL YEARS ENDED MARCH 31, 2024, 2025 AND 2026


(in millions, except per share amount)	2024		2025		2026
Capital stock (Notes 17 and 18):
Balance at beginning of fiscal year	¥	2,090,270	¥	2,090,270	¥	2,090,270
Balance at end of fiscal year	¥	2,090,270	¥	2,090,270	¥	2,090,270
Capital surplus (Note 18):
Balance at beginning of fiscal year	¥	4,902,155	¥	4,635,892	¥	4,300,021
Stock-based compensation	(792)		(9,474)		(2,048)
Retirement of common stock	(265,010)		(296,285)		(290,488)
Acquiring shares of au Kabucom Securities (Note 2)	—		(24,503)		—
Other—net	(461)		(5,609)		6,987
Balance at end of fiscal year	¥	4,635,892	¥	4,300,021	¥	4,014,472
Retained earnings appropriated for legal reserve (Note 19):
Balance at beginning of fiscal year	¥	239,571	¥	239,571	¥	239,571
Balance at end of fiscal year	¥	239,571	¥	239,571	¥	239,571
Unappropriated retained earnings (Note 19):
Balance at beginning of fiscal year	¥	8,185,880	¥	9,086,490	¥	9,821,359
Effect of adopting new guidance on troubled debt restructurings and vintage disclosures	13,663		—		—
Net income attributable to Mitsubishi UFJ Financial Group	1,325,869		1,266,933		1,729,359
Cash dividends:
Common stock—¥36.50 per share in 2024, ¥45.50 per share in 2025, and ¥74.00 per share in 2026	(438,922)		(532,064)		(847,229)

Balance at end of fiscal year	¥	9,086,490	¥	9,821,359	¥	10,703,489

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EQUITY—(Continued)

FOR THE FISCAL YEARS ENDED MARCH 31, 2024, 2025 AND 2026


(in millions)	2024		2025		2026
Accumulated other comprehensive income, net of taxes:
Balance at beginning of fiscal year	¥	871,054	¥	2,237,625	¥	2,561,190
Net change during the fiscal year	1,366,571		323,565		899,261


Balance at end of fiscal year	¥	2,237,625	¥	2,561,190	¥	3,460,451
Treasury stock, at cost:
Balance at beginning of fiscal year	¥	(482,552)	¥	(614,111)	¥	(726,925)
Purchases of shares of treasury stock (Note 18)	(400,090)		(418,444)		(500,066)
Sales of shares of treasury stock	3,835		9,344		2,111
Retirement of common stock	265,010		296,285		290,488
Net decrease (increase) resulting from changes in interests in consolidated subsidiaries, consolidated VIEs, and affiliated companies	(314)		1		(728)
Balance at end of fiscal year	¥	(614,111)	¥	(726,925)	¥	(935,120)
Total Mitsubishi UFJ Financial Group shareholders’ equity	¥	17,675,737	¥	18,285,486	¥	19,573,133
Noncontrolling interests:
Balance at beginning of fiscal year	¥	717,219	¥	841,350	¥	964,252
Initial subscriptions of noncontrolling interests	58,079		3,583		139,136
Transactions between the consolidated subsidiaries and the related noncontrolling interest shareholders	(22,004)		23,925		29,310
Decrease in noncontrolling interests related to deconsolidation of subsidiaries	(32,837)		(4,222)		(8,223)
Decrease in noncontrolling interests related to disposition of subsidiaries	(816)		(2)		(900)
Acquiring shares of au Kabucom Securities (Note 2)	—		(21,858)		—
Net income attributable to noncontrolling interests	51,700		705		154,545
Dividends paid to noncontrolling interests	(25,767)		(29,138)		(21,652)
Other comprehensive income, net of taxes	95,706		149,909		10,171

Other—net	70		—		285
Balance at end of fiscal year	¥	841,350	¥	964,252	¥	1,266,924
Total equity	¥	18,517,087	¥	19,249,738	¥	20,840,057

See the accompanying notes to Consolidated Financial Statements.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE FISCAL YEARS ENDED MARCH 31, 2024, 2025 AND 2026


(in millions)	2024		2025		2026
Cash flows from operating activities:
Net income before attribution of noncontrolling interests	¥	1,377,569	¥	1,267,638	¥	1,883,904
Adjustments to reconcile net income before attribution of noncontrolling interests to net cash provided by operating activities:
Depreciation and amortization (Notes 5 and 6)	368,561		383,408		424,894
Impairment of goodwill (Note 6)	—		150,089		97,475
Impairment of intangible assets (Note 6)	15,042		14,353		8,417
Provision for credit losses (Note 4)	258,795		121,790		226,112
Employee benefit income for severance indemnities and pension plans (Note 13)	(26,771)		(63,046)		(76,990)
Investment securities (gains) losses—net	(1,382,458)		832,533		(666,069)
Amortization of discounts on investment securities	(44,064)		(94,981)		(118,431)
Changes in financial instruments measured at fair value under fair value option, excluding trading account securities-net (Note 31)	16,736		(13,951)		(676)
Foreign exchange (gains) losses—net	534,351		(730,529)		(164,961)
Equity in earnings of equity method investees—net	(464,054)		(669,400)		(871,185)
Provision (benefit) for deferred income tax expense	91,212		167,781		(195,309)
Increase in trading account assets, excluding foreign exchange contracts	(3,047,277)		(5,752,205)		(20,139,548)
Increase in trading account liabilities, excluding foreign exchange contracts	2,101,271		4,282,380		17,989,388
Net decrease (increase) in collateral for derivative transactions	(461,210)		568,191		(1,615,883)
Net decrease (increase) in margin for listed derivative transactions	132,819		(61,511)		(28,937)
Decrease in cash collateral for the use of Bank of Japan’s settlement infrastructure	—		923,000		—
Unrealized gain on the contract to purchase equity shares of Shriram Finance Limited (Note 33)	—		—		(25,111)
Other—net	(1,262,107)		(296,704)		(93,555)
Net cash provided by (used in) operating activities	(1,791,585)		1,028,836		(3,366,465)
Cash flows from investing activities:
Proceeds from sales of Available-for-sale debt securities (including proceeds from debt securities under the fair value option) (Note 3)	62,450,011		53,000,461		69,089,810
Proceeds from maturities of Available-for-sale debt securities (including proceeds from debt securities under the fair value option) (Note 3)	31,969,733		46,068,373		35,991,213
Purchases of Available-for-sale debt securities (including purchases of debt securities under the fair value option) (Note 3)	(87,816,718)		(101,306,253)		(98,773,329)
Proceeds from maturities of Held-to-maturity debt securities	1,380,753		5,845,448		3,184,932
Purchases of Held-to-maturity debt securities	(3,889,987)		(4,329,574)		(5,511,035)
Proceeds from sales and redemption of Equity securities (including proceeds from equity securities under the fair value option)	3,148,971		4,106,446		5,133,867
Purchases of Equity securities (including purchases of equity securities under the fair value option)	(2,894,534)		(3,085,879)		(4,639,404)
Acquisition of HC Consumer Finance Philippines, Inc., a subsidiary of BK, net of cash acquired (Note 2)	(64,104)		—		—
Acquisition of PT Home Credit Indonesia, a subsidiary of BK, net of cash acquired (Note 2)	(29,219)		—		—
Acquisition of PT Mandala Multifinance Tbk, a subsidiary of BK, net of cash acquired (Note 2)	(46,025)		—		—
Acquisition of AlbaCore Capital Group., a subsidiary of TB, net of cash acquired (Note 2)	(42,817)		—		—
Acquisition of MUFG Pension & Market Services Holdings Limited, a subsidiary of TB, net of cash acquired (Note 2)	—		(91,938)		—
Acquisition of WealthNavi Inc., a subsidiary of BK, net of cash acquired (Note 2)	—		(61,408)		(8,809)
Acquisition of TIDLOR Holdings Public Company Limited, a subsidiary of BK, net of cash acquired (Note 2)	—		—		(7,330)
Net increase in loans	(1,565,920)		(3,620,030)		(8,103,596)
Net decrease (increase) in call loans, funds sold, and receivables under resale agreements and securities borrowing transactions	(3,758,551)		348,469		2,357,295
Proceeds from sales of premises and equipment	55,625		46,977		60,678
Capital expenditures for premises and equipment	(111,213)		(131,724)		(302,858)
Purchases of intangible assets	(317,308)		(306,656)		(344,077)
Proceeds from sales and dispositions of investments in equity method investees	41,179		44,381		69,696
Proceeds from sales of consolidated VIEs and subsidiaries—net	163,521		129,683		296,821
Other—net	73,762		6,608		(180,180)
Net cash used in investing activities	(1,252,841)		(3,336,616)		(1,686,306)

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS—(Continued)

FOR THE FISCAL YEARS ENDED MARCH 31, 2024, 2025 AND 2026


(in millions)	2024		2025		2026
Cash flows from financing activities:
Net increase in deposits	4,134,276		2,227,431		5,530,380
Net increase (decrease) in call money, funds purchased, and payables under repurchase agreements and securities lending transactions	(6,079,068)		6,796,160		(4,907,011)
Net increase (decrease) in due to trust account and other short-term borrowings	822,146		12,379,688		(14,071,016)
Proceeds from issuance of long-term debt	3,210,761		3,829,535		4,581,637
Repayments of long-term debt	(3,956,044)		(22,910,590)		(4,842,105)
Proceeds from sales of treasury stock	3,327		11,039		3,067
Payments for acquisition of treasury stock (Note 18)	(400,090)		(418,444)		(500,066)
Dividends paid	(438,716)		(531,844)		(846,715)
Dividends paid by subsidiaries to noncontrolling interests	(25,767)		(29,138)		(21,652)
Other—net	(39,579)		51,976		117,704
Net cash provided by (used in) financing activities	(2,768,754)		1,405,813		(14,955,777)
Effect of exchange rate changes on cash and cash equivalents	1,980,471		81,442		1,082,734
Net decrease in cash and cash equivalents	(3,832,709)		(820,525)		(18,925,814)
Cash and cash equivalents at beginning of fiscal year	113,957,445		110,124,736		109,304,211
Cash and cash equivalents:
Cash, due from banks and interest-earning deposits in other banks	110,118,623		109,298,114		90,369,985
Restricted cash included in other assets	6,113		6,097		8,412
Cash and cash equivalents at end of fiscal year	¥	110,124,736	¥	109,304,211	¥	90,378,397

Supplemental disclosure of cash flow information:
Cash paid during the fiscal year for:
Interest	¥	4,377,677	¥	5,190,245	¥	4,926,636
Income taxes, net of refunds (Note 8)	519,958		328,966		429,909
Non-cash investing and financing activities:
Assets acquired under finance lease arrangements (Note 7)	15,987		4,657		12,115
Assets acquired under operating lease arrangements (Note 7)	51,764		40,608		74,817
Acquisition of HC Consumer Finance Philippines, Inc., a subsidiary of BK (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents	160,036		—		—
Fair value of liabilities assumed	96,152		—		—
Acquisition of PT Home Credit Indonesia, a subsidiary of BK (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents	59,619		—		—
Fair value of liabilities assumed	30,494		—		—
Acquisition of PT Mandala Multifinance Tbk, a subsidiary of BK (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents	99,031		—		—
Fair value of liabilities assumed	34,676		—		—
Fair value of noncontrolling interests	10,448		—		—
Acquisition of AlbaCore Capital Group., a subsidiary of TB (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents	90,197		—		—
Fair value of liabilities assumed	12,187		—		—
Fair value of noncontrolling interests	17,214		—		—
Contingent consideration liabilities	17,979		—		—
Acquisition of MUFG Pension & Market Services Holdings Limited, a subsidiary of TB (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents	—		281,215		—
Fair value of liabilities assumed	—		188,316		—
Acquisition of WealthNavi Inc., a subsidiary of BK (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents	—		117,344		—
Fair value of liabilities assumed	—		43,294		—
Acquisition of TIDLOR Holdings Public Company Limited, a subsidiary of BK, net of cash acquired (Note 2)
Fair value of assets acquired, excluding cash and cash equivalents	—		—		576,773
Fair value of liabilities assumed	—		—		373,142
Fair value of noncontrolling interests	—		—		125,997

See the accompanying notes to Consolidated Financial Statements.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

MUFG is a holding company for MUFG Bank, Ltd. (“MUFG Bank” or “BK”), Mitsubishi UFJ Trust and Banking Corporation (“Mitsubishi UFJ Trust and Banking” or “TB”), Mitsubishi UFJ Securities Holdings Co., Ltd. (“Mitsubishi UFJ Securities Holdings”), Mitsubishi UFJ NICOS Co., Ltd. (“Mitsubishi UFJ NICOS”), and other subsidiaries. Mitsubishi UFJ Securities Holdings is an intermediate holding company for Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“Mitsubishi UFJ Morgan Stanley Securities”). Through its subsidiaries and affiliated companies, MUFG engages in a broad range of financial operations, including commercial banking, investment banking, trust banking and asset management services, securities businesses, and credit card businesses, and it provides related services to individual and corporate customers. See Note 29 for more information by business segment.

Basis of Financial Statements

The accompanying consolidated financial statements are presented in Japanese yen, the currency of the country in which MUFG is incorporated and principally operates. The accompanying consolidated financial statements have been prepared on the basis of accounting principles generally accepted in the United States of America (“U.S. GAAP”). In certain respects, the accompanying consolidated financial statements reflect adjustments to conform with U.S. GAAP and therefore such adjustments are not included in the consolidated financial statements issued by MUFG in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”) and certain of its subsidiaries in accordance with the corresponding applicable statutory requirements and accounting practices in their respective countries of incorporation. The major adjustments include those relating to (1) investment securities, (2) derivative financial instruments, (3) allowance for credit losses, (4) income taxes, (5) consolidation, (6) premises and equipment, (7) transfer of financial assets, (8) accrued severance indemnities and pension liabilities, (9) goodwill and other intangible assets and (10) lease transactions.

Fiscal years of certain subsidiaries, which end on December 31, and MUFG’s fiscal year, which ends on March 31, have been treated as coterminous. For the fiscal years ended March 31, 2024, 2025 and 2026, the effect of recording intervening events for the three-month periods ended March 31 on MUFG’s proportionate equity in net income of subsidiaries with fiscal years ended on December 31, would have resulted in an increase of ¥16.87 billion, a decrease of ¥13.23 billion, and a decrease of ¥3.81 billion to net income attributable to Mitsubishi UFJ Financial Group, respectively. No intervening events occurred during each of the three-month periods ended March 31, 2024, 2025 and 2026 which, if recorded, would have had material effects on consolidated total assets, loans, total liabilities, deposits or total equity as of March 31, 2024, 2025 and 2026.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to management judgment primarily relate to the allowance for credit losses, the accounting for goodwill and the valuation of financial instruments, which are described in “Item 5.E. Critical Accounting Estimates”.

Summary of Significant Accounting Policies

Significant accounting policies applied in the accompanying consolidated financial statements are summarized below:

Consolidation—The accompanying consolidated financial statements include the accounts of MUFG, its subsidiaries and certain variable interest entities (“VIE”s) (together, the “MUFG Group”). In situations in which the MUFG Group has a controlling financial interest in other entities, including certain VIEs, such entities are consolidated and noncontrolling interests, if any, are recorded in Total equity. Intercompany transactions and balances have been eliminated. Investments in affiliated companies (companies over which the MUFG Group has the ability to exercise significant influence) are accounted for by the equity method of accounting and are reported in Other assets. The MUFG Group’s equity interest in the earnings of these equity investees and other-than-temporary impairment are reported in Equity in earnings of equity method investees-net. The MUFG Group recognizes an impairment loss on investments in equity method investees that is other-than-temporary. The MUFG Group determines whether loss on investments is other-than-temporary, through consideration of various factors, such as inability to recover the carrying amount of the investment, the inability of the investee to sustain an earnings capacity that would justify the carrying amount of the investment, the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the investees, and the

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

intent and ability to retain its investment in the investees for a period of time sufficient to allow for any anticipated recovery in the fair value. The MUFG Group also evaluates additional factors, such as the condition and trend of the economic cycle, and trends in the general market.

The MUFG Group consolidates VIEs if it has the power to direct the activities of a VIE which most significantly impact the VIE’s economic performance and has the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. To assess whether a VIE should be consolidated or not, the MUFG Group considers all factors, such as the purpose and design of the VIE, contractual arrangements, and the MUFG Group’s involvement in both the establishment of the VIE and day-to-day activities of the VIE. The MUFG Group considers a right to make the most significant decisions affecting a VIE to determine whether it is deemed to have the power to direct the activities of the VIE. Furthermore, the MUFG Group considers its economic interests in the VIE, including investments in debt or equity instruments issued by the VIE, liquidity and credit enhancement, and guarantees to determine whether such interests are potentially significant to the VIE or not.

Assets that the MUFG Group holds in an agency, fiduciary or trust capacity are not assets of the MUFG Group and, accordingly, are not included in the accompanying consolidated balance sheets.

Cash Flows—For the purposes of reporting cash flows, cash and cash equivalents consist of Cash and due from banks, Interest-earning deposits in other banks, and certain restricted cash included in Other assets. Restricted cash included in cash and cash equivalents represents cash or deposits subject to withdrawal or usage restrictions, and mainly consist of reserves on deposits with the Bank of Japan and similar reserves required for foreign offices and subsidiaries engaged in banking businesses in foreign countries. Cash flows from qualified hedging activities are classified in the same category as the items being hedged. The cash flows associated with derivative instruments and their related gains and losses are classified in the cash flows from operating activities category.

Translation of Foreign Currency Financial Statements and Foreign Currency Transactions—Financial statements of overseas entities are translated into Japanese yen using the respective fiscal year-end exchange rates for assets and liabilities. Income and expense items are translated at average rates of exchange for the respective fiscal years.

Foreign currency translation gains and losses related to the financial statements of overseas entities of the MUFG Group, net of related income tax effects, are credited or charged directly to Foreign currency translation adjustments, a component of Accumulated other comprehensive income (“Accumulated OCI”). Tax effects of gains and losses on foreign currency translation of the financial statements of overseas entities are not recognized unless it is apparent that the temporary differences will reverse in the foreseeable future.

Foreign currency-denominated assets and liabilities are translated into the functional currencies of the individual entities included in consolidation at the respective fiscal year-end foreign exchange rates. Foreign currency-denominated income and expenses are translated using average rates of exchange for the respective fiscal years. Gains and losses from such translation are included in Foreign exchange gains (losses)—net, as appropriate.

Repurchase Agreements, Securities Lending and Other Secured Financing Transactions—Securities sold with agreements to repurchase (“repurchase agreements”), securities purchased with agreements to resell (“resale agreements”) and securities lending and borrowing transactions are accounted for as secured financing or lending transactions, if the transferor has not surrendered control over the securities. Repurchase agreements and resale agreements are generally carried at the amounts at which the securities will be subsequently sold or repurchased, and securities lending and borrowing transactions are generally carried at the amount of cash collateral advanced or received. If they meet the relevant conditions for the surrender of control, they are accounted for as sales of securities with related off-balance sheet forward repurchase commitments or purchases of securities with related off-balance sheet forward resale commitments. For the fiscal years ended March 31, 2024, 2025 and 2026, there were no such transactions accounted for as sales or purchases.

Collateral—For secured lending transactions, including resale agreements, securities borrowing transactions, commercial lending and derivative transactions, the MUFG Group, as a secured party, generally has the right to require the counterparties to provide collateral, including letters of credit, cash, securities and other financial assets. For most secured lending transactions, the MUFG Group maintains strict levels of collateralization governed by a daily mark-to-market analysis. Financial assets pledged as collateral are generally negotiable financial instruments and are permitted to be sold or repledged by secured parties. If the MUFG Group sells these financial assets received as collateral, it recognizes the proceeds from the sale and its obligation to return the collateral. For secured borrowing transactions, principally repurchase agreements and securities lending transactions and derivative transactions, where the secured party has the right to sell or repledge financial assets pledged as collateral, the MUFG Group separately discloses those financial assets pledged as collateral in the accompanying consolidated balance sheets.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Trading Account Securities—Securities and money market instruments held in anticipation of short-term market movements and for resale to customers are included in Trading account assets, and short trading positions of these instruments are included in Trading account liabilities. Trading positions are carried at fair value in the accompanying consolidated balance sheets and recorded on a trade date basis. Changes in the fair value of trading positions are recognized in Trading account profits (losses). The MUFG Group has elected the fair value option for certain foreign securities. See Note 31 for a further discussion of fair value option.

Investment Securities—Debt securities for which the MUFG Group has both the ability and positive intent to hold to maturity are classified as Held-to-maturity debt securities and are carried at amortized cost. Debt securities that the MUFG Group may not hold to maturity other than those classified as Trading account securities, are classified as Available-for-sale debt securities, and are carried at their fair values, with unrealized gains and losses reported on a net-of-tax basis within Accumulated OCI, which is a component of equity. Available-for-sale debt securities are considered to be impaired if the fair value is less than the amortized cost basis. An impairment loss is recognized in earnings for a security if the MUFG Group has intent to sell such a debt security or if it is more likely than not the MUFG Group will be required to sell such a debt security before recovery of its amortized cost basis. If not, the credit component of an impairment loss is recognized in earnings by recording an allowance for credit losses, limited by the amount of impairment loss. However, the noncredit component of an impairment loss is recognized in Accumulated OCI. In determining whether a credit loss exists, the MUFG Group generally considers factors such as the financial condition of the issuer and the extent of decline in fair value. For Held-to-maturity debt securities, an allowance for expected credit losses over the remaining expected life is required to be provided.

Equity securities include marketable equity investment securities and nonmarketable equity investment securities. Marketable equity investment securities are measured at fair value with unrealized gains or losses reflected in net income. Nonmarketable equity investment securities are primarily measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes. Nonmarketable equity investment securities held by subsidiaries that are investment companies or brokers and dealers, are subject to the specialized industry accounting principles for investment companies and brokers and dealers. Securities of those subsidiaries are carried at their fair values.

Interest and dividends on investment securities are reported in Interest income. Dividends are recognized when the shareholder right to receive the dividend is established. Gains and losses on disposition of investment securities are computed using the average cost method and are recognized on the trade date.

Derivative Financial Instruments—The MUFG Group engages in derivative activities involving swaps, forwards, futures, options, and other types of derivative contracts. Derivatives are used in trading activities to generate trading revenues and fee income for its own account and to respond to customers’ financial needs. Derivatives are also used to manage counterparty credit risk and market risk exposures to fluctuations in interest and foreign exchange rates, equity and commodity prices.

Derivatives entered into for trading purposes are carried at fair value and are reported as Trading account assets or Trading account liabilities, as appropriate. The fair values of derivative contracts executed with the same counterparty under legally enforceable master netting agreements are presented on a gross basis. Changes in the fair value of such contracts are recognized currently in Foreign exchange gains (losses)—net with respect to foreign exchange contracts and in Trading account profits (losses)—net with respect to interest rate contracts and other types of contracts.

Embedded features that are not clearly and closely related to the host contracts and meet the definition of derivatives are separated from the host contracts and measured at fair value unless the contracts embedding the derivatives are measured at fair value in their entirety.

Derivatives are also used to manage exposures to fluctuations in interest and foreign exchange rates arising from mismatches of asset and liability positions. Certain of those derivatives are designated as hedging instruments and qualify for hedge accounting. The MUFG Group designates a derivative as a hedging instrument at the inception of each such hedge relationship, and it documents, for such individual hedging relationships, the risk management objective and strategy, including the item being hedged, the specific risk being hedged and the method used to assess the hedge effectiveness. In order for a hedging relationship to qualify for hedge accounting, the changes in the fair value of the derivative instruments must be highly effective in achieving offsetting changes in fair values or variable cash flows of the hedged items attributable to the risk being hedged. All qualifying hedging derivatives are valued at fair value and included in Other assets or Other liabilities, as appropriate. For fair value hedges, the changes in the fair value of a hedging instrument are recognized in the same income statement line as the hedged item. For cash flow hedges, the changes in the fair value of a hedging instrument are recognized in Accumulated OCI. Amounts realized on cash flow hedges related to variable rate loans are recognized in Net interest income in the period when the cash flow from the hedged item is realized. Any difference that arises from gains or losses on hedging derivatives offsetting corresponding gains or losses on the hedged items, and gains and losses on derivatives attributable to the risks excluded from the assessment of hedge effectiveness are recognized in earnings.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Loans—Loans originated by the MUFG Group (“originated loans”) are carried at the principal amount outstanding, adjusted for unearned income and deferred net nonrefundable loan fees and costs. Originated loans held and intended for dispositions or sale in secondary markets are transferred to the held-for-sale classification and carried at the lower of cost or estimated fair value generally on an individual loan basis. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the loan as an adjustment to yield using a method that approximates the interest method.

The MUFG Group classifies its loan portfolio into the following portfolio segments—Commercial, Residential, Card, Bank of Ayudhya Public Company Limited (“Krungsri”), and Other based on the grouping used by the MUFG Group to determine the allowance for credit losses. The MUFG Group further classifies the Commercial segment into classes based on initial measurement attributes, risk characteristics, and its method of monitoring and assessing credit risk.

Past due status is determined based on the contractual terms of the loan and the actual number of days since the date the last payment was made.

Originated loans are generally placed on nonaccrual status when substantial doubt exists as to the full and timely collection of either principal or interest, specifically when principal or interest is contractually past due one month or more with respect to loans within all classes of the Commercial segment, three months or more with respect to loans within the Card and Krungsri segments, and six months or more with respect to loans within the Residential segment. A nonaccrual loan may be restored to an accrual status when interest and principal payments become current and management expects that the borrower will make future contractual payments as scheduled. When a loan is placed on nonaccrual status, interest accrued but not received is generally reversed against interest income. Cash receipts on nonaccrual loans, for which the ultimate collectability of principal is uncertain, are applied as principal reductions; otherwise, such collections are credited to income.

Loan Securitization—The MUFG Group securitizes and services commercial, industrial, and residential loans in the normal course of business. The MUFG Group accounts for a transfer of loans in a securitization transaction as a sale if it meets relevant conditions for the surrender of control. Otherwise, the transfer is accounted for as a collateralized borrowing transaction. When a securitization is accounted for as a sale, the proceeds from a sale of financial assets consist of the cash and any other assets obtained, including beneficial interests and separately recognized servicing assets, in the transfer less any liabilities incurred, including separately recognized servicing liabilities. All proceeds and reductions of proceeds from a sale shall be initially measured at fair value.

Allowance for Credit Losses (Loans)—The MUFG Group maintains an allowance for credit losses, which is a valuation account that is deducted from the amortized cost basis of the loans to present the net amount expected to be collected on the loans. The amount necessary to adjust the allowance for credit losses for management’s current estimate of expected credit losses on loans is reported in net income as a credit loss expense.

Actual credit losses (amounts deemed uncollectible, in whole or in part), net of recoveries, are generally determined based on detailed loan reviews and a credit assessment by management at each balance sheet date and are deducted from the allowance for credit losses as net charge-offs. The MUFG Group generally applies its charge-off policy to all loans in its portfolio regardless of the type of borrower. Management believes that the provision for credit losses is adequate.

Key elements relating to the policies and discipline used in determining the allowance for credit losses are credit classification and the related borrower categorization process. The categorization is based on conditions that may affect the ability of borrowers to service their debt, taking into consideration current financial information, historical payment experience, credit documentation, public information, analyses of relevant industry segments and existing economic conditions. In determining the appropriate level of the allowance, the MUFG Group evaluates the probable loss by collateral value, historical loss experience, probability of insolvency and category of loan based on its type and characteristics.

For the allowance methodology, the MUFG Group uses quantitative models that incorporate economic forecast scenarios. These economic forecast scenarios include macroeconomic variables that have historically been correlated with historical credit losses. These variables include, but are not limited to, unemployment rates and gross domestic product. As any one economic forecast scenario is inherently uncertain, multiple economic forecast scenarios were leveraged. The macroeconomic variables in multiple economic forecast scenarios and weightings given to each scenario depend on a variety of factors including recent economic conditions and views of internal, as well as third-party, economists. The allowance for credit losses for modifications are primarily measured using a discounted cash flow methodology that utilizes a discount rate based on the post-modification contractual interest rate, other than credit losses in the Card segment, for which the allowance is measured using collectively-assessed allowance methodology.

The allowance for credit losses includes qualitative adjustments to cover losses that are expected but were not reflected in the modeled allowance. For example, factors that the MUFG considers include remaining time to maturity and extent of prepayments, credit concentration, the volume and severity of past due, changes in lending policy and procedures, among others.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

In all segments, when estimating the allowance for credit losses, significant management assumptions are incorporated into economic variables, qualitative adjustments, or both to capture specific risks or uncertainties.

There are de minimis or zero expected credit losses, for example, for lending and financing transactions, such as Interest-earning deposits in other banks, Call loans and funds sold, Receivables under resale agreements and Receivables under securities borrowing transactions because the term is short and the credit quality of the counterparties is normal.

The methodologies used to estimate the allowance and the charge-off policy for the major portfolio segments are as follows:

Commercial segment

In the Commercial segment, expected credit losses of loans are measured on a collective basis when similar risk characteristics exist. Risk characteristics that are considered for aggregation of loans include internal credit ratings, geographical location, and industry of the borrower. The collectively-assessed allowance is measured over the contractual term of the loans that is adjusted for expected prepayments, using the probability of default (“PD”), loss given default (“LGD”) and exposure at default (“EAD”) loss forecasting model, which is based on historical information and adjusted to incorporate expectations of future economic conditions considering economic variables such as gross domestic product and unemployment rates. The PD is determined as the marginal PD that denotes the likelihood that a borrower is observed to experience the default during a defined period of time, based on internal credit rating, geographical location, or industry of the borrower. The LGD is determined as the estimated loss on the loan that would be realized upon the default of the borrower, mainly based on the historical experience of collections against loans in default. The PD and LGD are continually reviewed to determine the appropriate level of the allowance for credit loss. With respect to the borrower internal credit rating, which is the basis for the determination in the PD model, certain banking subsidiaries in the Commercial segment enhanced the borrower internal credit rating system to provide for more sophisticated credit risk management. This enhancement represents a change in accounting estimate, with prospective application beginning April 1, 2025. The effect from this change did not have a material impact on the consolidated financial statements.

Qualitative adjustments are made to cover losses that are expected but not adequately captured in the quantitative forecasting model or economic assumptions, considering factors such as remaining time to maturity and extent of prepayments, the volume and severity of past due loans, changes in lending policy and procedures, the industry in which a borrower operates, and changes in other external factors. The collectively-assessed allowance methodology incorporates an economic forecast over a three-year period. Beyond the three-year economic forecast, the allowance methodology reverts to an average historical loss information on a straight-line basis over a two-year period. When a loan does not share risk characteristics with other loans, expected credit losses for that loan are measured on an individual basis. Individually-assessed allowance is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral if the loan is collateral dependent.

In relation to loans categorized as Legally/Virtually Bankrupt, the carrying amount of loans less estimated value of the collateral and guaranteed amount is generally considered uncollectible, and is charged off.

Residential segment

In the Residential segment, the loans are comprised of smaller-balance homogeneous loans and expected credit losses of loans are measured on a collective basis. The allowance for credit losses is measured over the contractual term of the loans that is adjusted for expected prepayments, using the state transition probability matrix, which captures delinquency status changes and prepayments by loans’ remaining term, and is based on historical information and adjusted to incorporate expectations of future economic conditions considering economic variables, such as unemployment rates. The LGD is also used to capture the estimated loss on the loan that would be realized upon the default of the borrower. The collectively-assessed allowance methodology incorporates an economic forecast over a three-year period. Beyond the three-year economic forecast, the allowance methodology reverts to average historical loss information on a straight-line basis over a two-year period.

In relation to loans that are in past due status over a certain period of time and deemed uncollectible, the carrying amount of loans less estimated value of the collateral and guaranteed amount is generally considered uncollectible and is charged off.

Card segment

In the Card segment, the loans are smaller-balance homogeneous loans and expected credit losses of loans are measured on a collective basis. The allowance for credit losses is measured over the contractual term of the loans that is adjusted for expected prepayments, using the state transition probability matrix, which captures delinquency status changes and prepayments by loans’ remaining term, and is based on historical information and adjusted to incorporate expectations of future economic conditions considering economic variables, such as unemployment rate. The collectively-assessed allowance methodology incorporates an

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

economic forecast over a three-year period. Beyond the three-year economic forecast, the allowance methodology reverts to average historical loss information.

In relation to loans that are in past due status over a certain period of time and deemed uncollectible, the amount of loans is generally fully charged off.

Krungsri segment

In the Krungsri segment, expected credit losses are measured on a collective basis for portfolios of loans that share similar economic risk characteristics. Expected credit losses are a probability-weighted estimate of the present value of credit losses. These are measured as the present value of the difference between the cash flows under the contract and the cash flows expected to be received arising from the weighting of multiple future economic scenarios that consider economic variables such as gross domestic product and unemployment rates, discounted at the loan’s effective interest rate. Qualitative adjustments are made to cover losses that are expected but not adequately captured in the quantitative forecasting model. Loans that do not share risk characteristics are evaluated individually to determine the allowance balance. Individually-assessed allowance is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral if the loan is collateral dependent.

The allocated allowance for large groups of smaller-balance homogeneous loans is established for smaller balance loans such as housing loans, credit card loans, and personal loans. These loans are managed on a pool basis, and loss factors are based on expected net charge-off ranges.

Loans to customers are charged off when they are determined to be uncollectible considering the financial condition of a borrower.

Allowance for Off-Balance Sheet Credit Instruments—The MUFG Group maintains an allowance for credit losses on off-balance sheet credit instruments that are not unconditionally cancellable, including commitments to extend credit, guarantees, standby letters of credit and other financial instruments. The allowance is recorded as a liability in Other liabilities. The MUFG Group adopts the same methodology used in determining the allowance for credit losses on loans.

Premises and Equipment—Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is charged to operations over the estimated useful lives of the related assets. Leasehold improvements are depreciated over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. MUFG, MUFG Bank and Mitsubishi UFJ Trust and Banking apply the declining-balance method in depreciating their premises and equipment, while other subsidiaries mainly apply the straight-line method, at rates principally based on the following estimated useful lives:


			Years
Buildings			15 to 50
Equipment and furniture			2 to 20
Leasehold improvements			6 to 50

Maintenance, repairs and minor improvements are charged to operations as incurred. Major improvements are capitalized. Net gains or losses on dispositions of premises and equipment are included in Other non-interest income or expense, as appropriate.

Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of an asset to be held and used is measured by a comparison of the carrying amount to future undiscounted net cash flows expected to be generated by the asset. If an asset is considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value. For purposes of recognition and measurement of an impairment loss, a long-lived asset or assets are grouped with other assets and liabilities at the lowest level with independent and identifiable cash flows. Assets to be disposed of by sale are reported at the lower of the carrying amount or fair value less estimated cost to sell.

Asset retirement obligations related to restoration of certain leased properties upon lease termination are recorded in Other liabilities with a corresponding increase in leasehold improvements. The amounts represent the present value of expected future cash flows associated with returning such leased properties to their original condition. The difference between the gross and present value of expected future cash flows is accreted over the life of the related leases as a non-interest expense.

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Goodwill—The MUFG Group recognizes goodwill, as of the acquisition date, measured as the excess of the purchase price over the fair value of the net assets acquired. Goodwill related to investments in equity method investees is included in Other assets as a part of the carrying amount of investments in equity method investees.

Goodwill arising from a business combination is not amortized but is tested at least annually for impairment. Goodwill is recorded at a designated reporting unit level for the purpose of assessing impairment.

A reporting unit is an operating segment, or an identified business unit one level below an operating segment. An impairment loss is recognized to the extent that the carrying amount of a reporting unit exceeds its fair value, but not exceeding the total amount of goodwill allocated to that reporting unit.

Intangible assets—Intangible assets consist of software, core deposit intangibles, customer relationships, trade names and other intangible assets. These are amortized over their estimated useful lives unless they have indefinite useful lives. Amortization of intangible assets is computed in a manner that best reflects the economic benefits of the intangible assets as follows:


	Useful lives (years)	Amortization method
Software	3 to 10	Straight-line
Core deposit intangibles	9 to 16	Straight-line
Customer relationships	3 to 27	Straight-line, Declining-balance
Trade names	5 to 40	Straight-line

Intangible assets having indefinite useful lives are not amortized but are subject to annual impairment tests. An impairment exists if the carrying value of an indefinite-lived intangible asset exceeds its fair value. For other intangible assets subject to amortization, an impairment is recognized if the carrying amount is not recoverable and the carrying amount exceeds the fair value of the intangible asset.

The MUFG Group capitalizes certain costs associated with the acquisition or development of internal-use software. Costs subject to capitalization are salaries and employee benefits for employees who are directly associated with and who devote time to the internal-use computer software project, to the extent of time spent directly on the project. Once the software is ready for its intended use, the MUFG Group begins to amortize capitalized costs on a straight-line basis.

Accrued Severance and Pension Liabilities—The MUFG Group has defined benefit pension plans and other postretirement benefit plans, including severance indemnities plans (“SIPs”). The liabilities related to these plans are computed and recognized based on actuarial computations. Net actuarial gains and losses that arise from differences between actual experience and assumptions are generally amortized over the average remaining service period of participating employees if it exceeds the corridor, which is defined as the greater of 10% of plan assets or the projected benefit obligation. Under the guidance related to employers’ accounting for defined benefit pension and other postretirement plans, the MUFG Group recognizes a net liability or asset to report the funded status of its defined benefit pension and other postretirement plans in the accompanying consolidated balance sheets and mainly recognizes changes in the funded status of defined benefit pension and other postretirement plans in the year in which the changes occur in Accumulated OCI. Based on actuarial computations of current and future employee benefits, the service cost component is charged to Salaries and employee benefits while other components of net pension benefit/cost are charged to Other non-interest expenses. The MUFG Group measures plan assets and benefit obligations as of the date of the consolidated balance sheets.

Long-Term Debt—Premiums, discounts and issuance costs of long-term debt are amortized based on the method that approximates the interest method over the term of the long-term debt.

Obligations under Guarantees—The MUFG Group provides customers with a variety of guarantees and similar arrangements, including standby letters of credit, financial and performance guarantees, credit protection, and liquidity facilities. The MUFG Group recognizes guarantee fee income over the guarantee period based on the contractual terms of the guarantee contracts. It is the MUFG Group’s business practice to receive a guarantee fee at the inception of the guarantee, which approximates market value of the guarantee and is initially recorded as a liability, which is then recognized as guarantee fee income over the guarantee period.

Allowance for Repayment of Excess Interest—The MUFG Group maintains an allowance for repayment of excess interest based on an analysis of past experience of reimbursement of excess interest, borrowers’ profile, recent trend of borrowers’ claims for reimbursement, and management’s future forecasts. The allowance is recorded as a liability in Other liabilities.

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Fees and Commissions—The MUFG Group recognizes revenue from contracts with customers in the amount of consideration it expects to receive upon the transfer of control of service. The timing of recognition is dependent on whether the MUFG Group satisfies a performance obligation by transferring control of the product or service to a customer over time or at a point in time.

The following is an explanation of the MUFG Group’s key revenue from contracts with customers and the timing of its recognition.

Fees and commissions on deposits consist of fees and commissions charged for transaction-based services such as usage of automated teller machines and withdrawal services, and for periodic account maintenance services. The MUFG Group’s performance obligation for transaction-based services is satisfied and the fees and commissions are recognized at the point in time when the MUFG Group’s performance under the terms of a contractual arrangement is completed, which is at the settlement of a transaction, while the MUFG Group’s performance obligation for maintenance services is satisfied and the fees and commissions are recognized over the course of each month.

Fees and commissions on remittances and transfers consist of fees and commissions charged for settlement transactions such as domestic fund remittances, including electronic banking transactions, and are recognized at the point in time when the MUFG Group’s performance under the terms of a contractual arrangement is completed, which is at the settlement of a transaction.

Fees and commissions on foreign trading business consist of fees and commissions charged for fund collection and trade-related financing services related to foreign trading business, and are recognized in the period in which the related service is provided. If they arise from foreign trading business activities under which the customer consumes the related services at a point in time (e.g. foreign exchange fees), such fees are recognized at the same point in time. If they arise from foreign trading business activities under which the customer consumes the related services equally over the period of service (e.g. commercial letters of credit), such fees are recognized over the same period.

Fees and commissions on credit card business consist of fees and commissions such as interchange income, royalty and other service charges from franchisees. Interchange income from the credit card business is recognized as processed transactions are settled through the associated payment networks, while royalty and other service charges related to the credit card business are recognized on a straight-line basis over the period of service.

Fees and commissions on security-related services primarily consist of fees and commissions for sales and transfers of securities including investment funds, underwriting, brokerage and advisory services, arrangement fees on securitizations, and agency services for the calculation and payment of dividends. Fees and commissions on security-related services are recognized in the period in which the related service is provided. If they arise from security-related services under which the customer consumes the related services at a point in time (e.g. sales and transfers of securities are executed at the customer’s direction; underwritings of debt and equity securities or securitizations are completed at the trade date; advice is provided to the clients; and dividends are calculated and then paid to investors), such fees are recognized at the same point in time. If they arise from security-related services under which the customer consumes the related services equally over the period of service (e.g. retainer fees on M&A advisory fees), such fees are recognized over the same period. The advisory fees which are paid upon meeting certain performance goals (e.g. success fees on M&A advisory fees) are recognized at the point in time when the performance goals are met.

Fees and commissions on administration and management services for investment funds primarily consist of fees and commissions earned from administrating and managing investment funds, including assets under management on behalf of clients. Such fees and commissions are recognized equally over the period of service at the amount calculated primarily based on the outstanding amount of each entrusted asset, the percentage of fees, and the extent of the service provided to administer the investment funds.

Trust fees consist primarily of fees earned by fiduciary asset management and administration services for corporate pension plans and investment funds, and are recognized on an accrual basis, generally based on the volume of trust assets under management and/or the operating performance for the accounting period of each trust account. With respect to the trust accounts with a guarantee of trust principal, trust fees are determined based on the profits earned by individual trust accounts during the trust accounting period, less deductions, including provision for reserves, impairment for individual investments and dividends paid to beneficiary certificate holders. The trust fees for these trust accounts are accrued based on the amounts expected to be earned during the accounting period of each trust account.

Guarantee fees consist of fees related to the guarantee business such as providing guarantees on residential mortgage loans and other loans, and are recognized over the contractual periods of the respective guarantees.

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Insurance commissions consist of commissions earned from third-party insurance companies for marketing and selling insurance products and for the maintenance of insurance contracts. The former is recognized at the point in time which the associated service is fulfilled as the insurance contract is established by the insurance company, while the latter is recognized over the insurance period.

Fees and commissions on real estate business primarily consist of fees from real estate agent services, and are recognized in the period in which the related service is provided when assisting customers in the sales or purchase of real estate property.

Other fees and commissions include various fees and commissions earned on services to customers which have performance obligations that the MUFG Group completes in order to recognize revenue. The primary portion includes non-refundable financing related fees such as arrangement fees that are recognized when the service is provided.

Income Taxes—The MUFG Group accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and deferred tax liabilities for the expected future tax consequences of events that have been included in the accompanying consolidated financial statements. Under this method, deferred tax assets and deferred tax liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and deferred tax liabilities is recognized in income in the period that includes the enactment date.

The MUFG Group records net deferred tax assets to the extent these assets will more likely than not be realized. In making such determination, all available positive and negative evidence is considered, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event the MUFG Group were to determine that it would be able to realize deferred tax assets in the future in excess of their net recorded amount, the MUFG Group would make an adjustment to the valuation allowance, which would reduce the provision for income taxes.

Uncertain tax positions are recorded on the basis of a two-step process whereby (1) it is determined whether it is more likely than not that the tax position will be sustained on the basis of its technical merits, and (2) for those tax positions that meet the more-likely-than-not recognition threshold, the MUFG Group recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority. The MUFG Group recognizes interest and penalties related to unrecognized tax benefits within income tax expense. Accrued interest and penalties are included within Other liabilities.

Free Distributions of Common Shares—As permitted by the Companies Act of Japan (the “Companies Act”), Japanese companies, upon approval by the Board of Directors, may make a free distribution of shares, in the form of a “stock split” as defined, to shareholders. In accordance with generally accepted accounting practice in Japan, such distribution does not give rise to any change in capital stock or capital surplus accounts. Common shares distributed are recorded as shares issued on the distribution date. See Note 18 for further information.

Earnings (loss) per Common Share—Basic earnings per share (“EPS”) excludes dilutive effects of potential common shares and is computed by dividing earnings applicable to common stock shareholders by the weighted average number of common shares outstanding for the period, while diluted EPS gives effect to all dilutive potential common shares that were outstanding during the period, including dilutive effects of restricted stock units and performance-based stock units of Morgan Stanley. See Note 22 for the computation of basic and diluted EPS.

Treasury Stock—The MUFG Group presents its treasury stock, including shares of MUFG owned by its subsidiaries and affiliated companies, as a reduction of equity on the accompanying consolidated balance sheets at cost and accounts for treasury stock transactions under an average cost method. Gains (losses) on sales of treasury stock are charged to capital surplus and unappropriated retained earnings.

Comprehensive Income—Comprehensive income includes net income (loss) before attribution to noncontrolling interests and other comprehensive income (“OCI”). All changes in unrealized gains and losses on investment securities, unrealized gains and losses on derivatives qualifying for cash flow hedges, defined benefit plans and foreign currency translation adjustments constitute OCI and are presented, with related income tax effects, in the accompanying consolidated statements of comprehensive income. OCI also includes changes in the instrument-specific credit risk on financial liabilities (“debt valuation adjustments” or “DVA”) accounted for under the fair value option.

Stock-Based Compensation—MUFG and certain of its subsidiaries have a stock compensation-type stock option plan (“Stock Option Plan”) for directors (excluding outside directors and directors serving as audit committee members), corporate executives, executive officers and senior fellows (collectively, “officers”). Compensation costs under the Stock Option Plan are recognized based on the grant date fair value of the stock option (“Stock Acquisition Rights”) over the period during officers are required to provide

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service in accordance with the terms of the Stock Option Plan. In addition, MUFG and certain of its subsidiaries have a performance-based stock compensation plan for officers (“the Board Incentive Plan”), and certain subsidiaries have predetermined share-based stock compensation plans for employees holding managerial positions (“Employee Stock Ownership Plan”). The awards granted under the Board Incentive Plan and Employee Stock Ownership Plan are classified as either a liability for the part of the award which is provided to officers or employees holding managerial positions in cash or equity for the part of the award which is provided to officers or employees holding managerial positions in the common shares of MUFG. Compensation costs are recognized over the requisite service period for the entire awards. For awards classified as liability, compensation costs are measured based on the fair value calculated by the quoted price of common shares of MUFG at the date of fiscal year-end and remeasured at the end of each reporting period. Changes in quoted prices of common shares of MUFG between the date of grant and the settlement of awards are recognized in the period which the changes occur. For awards classified as equity, compensation costs are measured based on the grant date fair value by the quoted price of the common shares of MUFG.

Accounting Changes

Improvements to Income Tax Disclosures—In December 2023, the Financial Accounting Standards Board (“FASB”) issued new guidance to enhance the disclosures for income taxes. This guidance introduced new disclosures, including a breakdown of income tax expense from continuing operations by national, state, and foreign, as well as information about income taxes paid, and modified the disclosure requirements on the reconciliation to the effective tax rate. This guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The guidance can be applied either prospectively or retrospectively. The MUFG Group adopted this guidance from the fiscal year beginning April 1, 2025 under the prospective approach. As this guidance only affects disclosures, its adoption did not have an impact on the MUFG Group’s financial position and results of operations. See Note 8 for further details of disclosures required by this guidance.

Recently Issued Accounting Pronouncements

Accounting for Internal-Use Software Costs—In September 2025, the FASB issued new guidance which modernizes the accounting for software costs. This new guidance targets improvements to the accounting for internal-use software, intended to modernize the internal use software guidance, primarily by eliminating accounting consideration of software project development stages and enhances the guidance around the “probable-to-complete” threshold in determining when capitalization of internal-use software costs begins. This guidance is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years. Early adoption is permitted. The MUFG Group is currently evaluating what effect the guidance will have on its consolidated financial statements.

Purchased loans—In November 2025, the FASB issued new guidance which addresses concerns about the accounting for acquired financial assets. Under current U.S. GAAP, financial assets acquired through a business combination, an asset acquisition, or the consolidation of a variable interest entity that is not a business are initially recorded at fair value, and an allowance for expected credit losses is separately recognized with an offsetting gross-up adjustments to the purchase price of the acquired financial assets (“gross-up approach”), if a financial asset acquired has a more-than-insignificant deterioration of credit risk since its origination. However, if it does not have such a deterioration of credit risk, an allowance for credit losses is recognized with a corresponding charge to credit loss expense. The new guidance requires that purchased loans (excluding credit cards), which are acquired without credit deterioration and deemed seasoned, be accounted for using the gross-up approach, which will enhance comparability and consistency in the accounting for acquired financial assets. This guidance is effective for fiscal years beginning after December 15, 2026, including interim periods within those fiscal years. Early adoption is permitted. The MUFG Group is currently evaluating what effect the guidance will have on its consolidated financial statements.

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2. BUSINESS DEVELOPMENTS

Acquisition of HC Consumer Finance Philippines, Inc & PT Home Credit Indonesia

On June 1, 2023, MUFG Bank and its consolidated subsidiary, Krungsri, acquired 100% of the shares of HC Consumer Finance Philippines, Inc. (“HC Philippines”), and paid ¥69,841 million, with certain price adjustments after June 1, 2023, in total in cash. As a result of the acquisition, Krungsri and MUFG Bank hold 75% and 25% of the shares respectively.

The total assets and total liabilities of the acquired business of HC Philippines were ¥137,577 million, including net loans of ¥108,359 million, and ¥96,152 million, including long-term debt of ¥43,891 million, respectively. The assets acquired and liabilities assumed were recorded at their fair values on the acquisition date. The goodwill resulting from the acquisition of HC Philippines was ¥28,196 million, which was not deductible for income tax purposes, and was allocated to the Global Commercial Banking Business Group Segment. The intangible assets resulting from the acquisitions of HC Philippines was ¥9,373 million with a weighted average amortization periods of 5.7 years, primarily including ¥6,137 million of a customer relationship with an amortization period of 7.5 years. The revenue and net income of HC Philippines since the acquisition date were ¥58,394 million and ¥4,129 million, respectively, for the fiscal year ended March 31, 2024. The acquired loans of HC Philippines, other than those purchased with credit deterioration, had a fair value of ¥104,391 million at the acquisition date, with unpaid principal balances of ¥109,032 million. At the acquisition date, the MUFG Group estimated these loans’ contractual cash flows expected not to be collected were ¥4,100 million for HC Philippines.

On October 2, 2023, Krungsri and Bank Danamon's consolidated subsidiary, PT Adira Dinamika Multi Finance, Tbk (“ADMF”) acquired approximately 84.8% of the shares of PT Home Credit Indonesia, Inc. (“HC Indonesia”), and paid ¥31,812 million in total in cash. As a result of the acquisition, Krungsri and ADMF hold 75% and approximately 9.8% of the HC Indonesia's shares, respectively.

In March 2024, Krungsri completed a capital injection of ¥4,896 million into HC Indonesia. Following this capital injection, Krungsri’s total shareholding in HC Indonesia increased to 80% and ADMF’s total shareholding in HC Indonesia decreased to approximately 4.9%.

The total assets and total liabilities of the acquired business of HC Indonesia were ¥44,178 million, including net loans of ¥24,949 million, and ¥30,494 million, including other short-term borrowings of ¥22,299 million, respectively. The assets acquired and liabilities assumed were recorded at their fair values on the acquisition date. The goodwill resulting from the acquisition of HC Indonesia was ¥18,034 million, which was not deductible for income tax purposes, and was allocated to the Global Commercial Banking Business Group Segment. The intangible assets resulting from the acquisitions of HC Indonesia were ¥3,964 million with a weighted average amortization of 6.9 years, primarily including ¥3,582 million of a customer relationship with an amortization period of 7.1 years. The revenue and net income of HC Indonesia since the acquisition date were ¥14,569 million and ¥327 million, respectively, for the fiscal year ended March 31, 2024. The fair value of the noncontrolling interests was immaterial. The acquired loans of HC Indonesia, other than those purchased with credit deterioration, had a fair value of ¥25,768 million at the acquisition date, with unpaid principal balances of ¥27,389 million. At the acquisition date, the MUFG Group estimated these loans’ contractual cash flows expected not to be collected were ¥1,505 million.

The MUFG group intends to strengthen its business in Southeast Asia through the establishment of business platforms in the region in collaboration with partner banks in which MUFG Bank has invested. In executing this strategy, the MUFG Group will continue striving to contribute to the growth of Southeast Asian economy.

During the fiscal year ended March 31, 2024, the MUFG Group incurred ¥1,044 million of acquisition-related costs of HC Philippines and HC Indonesia.

Pro forma statements of income

The following unaudited pro forma statements of income present the result of operations for HC Philippines and HC Indonesia as if the acquisitions had occurred on April 1, 2022:

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	HC Philippines		HC Indonesia
	Fiscal year ended March 31,		Fiscal year ended March 31,
	2024		2024
	(in millions)
Statements of income data
Total revenue	¥	68,177	¥	28,201
Net income (loss) attributable to Mitsubishi UFJ Financial Group	3,775		(220)

The unaudited pro forma statements of income of HC Philippines include the pro forma adjustments to reflect the impact of amortizing certain acquisition accounting adjustments relating to intangible assets subject to amortization of ¥1,669 million for the fiscal year ended March 2024. The unaudited pro forma statements of income of HC Indonesia include the pro forma adjustments to reflect the impact of amortizing certain acquisition accounting adjustments relating to intangible assets subject to amortization of ¥577 million for the fiscal year ended March 2024.

Acquisition of PT Mandala Multifinance Tbk

On March 13, 2024, MUFG Bank and its consolidated subsidiary, ADMF acquired 80.6% of the shares in PT Mandala Multifinance Tbk (“MFIN”). MUFG Bank paid ¥59,025 million and ADMF paid ¥8,360 million in cash. As a result of the acquisition, MUFG Bank and ADMF hold 70.6% and 10% of the shares, respectively.

MFIN is an Indonesian company which mainly provides auto loans for new motorbikes and multi-purpose loans secured by motorbikes in the domestic market, with strong presence especially in eastern Indonesia. MUFG Bank and ADMF intend to leverage MFIN’s strengths, in both products and geography, to further reinforce and expand our auto loan business in Indonesia.

The assets acquired and liabilities assumed were recorded at their fair values on the acquisition date. The total assets and total liabilities of the acquired business were ¥80,236 million, including net loans of ¥47,937 million, and ¥34,676 million, including long-term debt of ¥28,319 million, respectively. The goodwill resulting from the acquisition was ¥31,795 million, which was not deductible for income tax purposes, and was allocated to the Global Commercial Banking Business Group Segment. The intangible assets resulting from the acquisition were ¥15,139 million with a weighted average amortization period of 5.3 years, primarily including ¥10,602 million of a customer relationship with an amortization period of 8.0 years. Due to the proximity of the acquisition date to the MUFG Group's fiscal year end date, the revenue and net income of MFIN for the fiscal year ended March 31, 2024, were not material to the MUFG Group. The MUFG Group also recorded noncontrolling interests of ¥10,448 million at fair value determined by a quoted market price as of the acquisition date. The acquired loans of MFIN other than those purchased with credit deterioration had a fair value of ¥42,152 million at the acquisition date, with unpaid principal balances of ¥42,633 million. At the acquisition date, the MUFG Group estimated these loans’ contractual cash flows expected not to be collected were ¥1,450 million.

Pro forma statements of income

The following unaudited pro forma statements of income present the result of income for MFIN as if the acquisition had occurred on April 1, 2022:


	Fiscal year ended March 31,
	2024
	(in millions)
Statements of income data
Total revenue	¥	20,580
Net income attributable to Mitsubishi UFJ Financial Group	¥	1,416

The unaudited pro forma statements of income include the pro forma adjustments to reflect the impact of amortizing certain acquisition accounting adjustments relating to intangible assets subject to amortization of ¥2,748 million for the fiscal year ended March 31, 2024.

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Acquisition of AlbaCore Capital Group

On November 14, 2023, Mitsubishi UFJ Trust and Banking's consolidated subsidiary, First Sentier Investors, which is now known as First Sentier Group, acquired 75% interest in AlbaCore Capital Group (“AlbaCore”). Cash consideration paid on change of control was ¥49,266 million, with fair value of contingent consideration of ¥17,979 million being recognized. The valuation of the contingent consideration is calculated with reference to certain future earnings metrics and targets of AlbaCore, discounted to net present value. The deferred payment of contingent consideration is subject to earnings for certain future fiscal periods exceeding a threshold. If the future earnings exceed the threshold, a variable payment depending on value of the future earnings will be made.

The MUFG Group has outlined a strategy for sustainable growth and enhanced profitability, which includes capital utilization in growth areas such as the global asset management business. Through the acquisition of AlbaCore, the MUFG Group will offer new products in the highly demanded alternatives sector and expand its touchpoints with new customers, thereby further strengthening the global asset management business.

The assets acquired and liabilities assumed were recorded at their estimated fair values on the acquisition date. During the fiscal year ended March 31, 2024, the MUFG Group incurred ¥2,599 million of acquisition-related costs. These expenses are included in Other non-interest expenses in the accompanying consolidated statements of income for the fiscal year ended March 31, 2024. The total assets and total liabilities of the acquired business were ¥33,583 million, including cash and bank deposits of ¥6,448 million and intangible assets of ¥23,709 million, and ¥12,187 million, including deferred tax liabilities of ¥5,927 million, respectively. The goodwill resulting from the acquisition was ¥63,063 million, which was not deductible for income tax purposes, and was allocated to the Asset Management & Investor Services Business Group Segment. The intangible assets resulting from the acquisition were ¥23,709 million with a weighted average amortization period of 15.7 years, primarily including ¥22,478 million of a customer relationship with a weighted average amortization period of 16.0 years. The MUFG Group also recorded noncontrolling interests of ¥17,214 million at fair value based on the consideration paid for its controlling ownership interest adjusted for control premiums, which were calculated using market data. The revenue and net loss of AlbaCore since the acquisition date were ¥1,107 million and ¥155 million, respectively, for the fiscal year ended March 31, 2024.

Pro forma statements of income

The following unaudited pro forma statements of income present the results of income as if the acquisition of AlbaCore had occurred on April 1, 2022:


	Fiscal year ended March 31,
	2024
	(in millions)
Statements of income data
Total revenue	¥	8,279
Net income attributable to Mitsubishi UFJ Financial Group	¥	859

The unaudited pro forma statements of income include the pro forma adjustments to reflect the impact of amortizing certain acquisition accounting adjustments relating to intangible assets subject to amortization of ¥1,426 million for the fiscal year ended March 31, 2024.

Acquisition of Link Administration Holdings Limited

On May 16, 2024, Mitsubishi UFJ Trust and Banking acquired 100% of the shares of Link Administration Holdings Limited for ¥113,524 million in cash. The new name of the company is MUFG Pension & Market Services Holdings Limited (“MPMS”).

The global pension and stock administration services will be provided under the new brand name “MUFG Pension & Market Services” driving MUFG to further accelerate its global business expansion via access to Australian funds and global corporate clients, facilitating the Global Investor Services Business to offer a broad range of solutions, allowing it to strengthen its global reach, develop growth opportunities, and expand its business scale.

The assets acquired and liabilities assumed were recorded at their estimated fair values on the acquisition date. During the fiscal year ended March 31, 2025, the MUFG Group incurred ¥3,856 million of acquisition-related costs. These expenses are included in Other non-interest expenses in the accompanying consolidated statements of income for the fiscal year ended March 31, 2025. The total assets and liabilities of the acquired business were ¥153,019 million, including cash and bank deposits of ¥21,586 million and intangible assets of ¥67,283 million which consist of software and customer relationships, and ¥188,316 million, including long-term

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borrowings of ¥118,441 million, respectively. The goodwill resulting from the acquisition was ¥149,782 million, which was not deductible for income tax purposes, and was allocated to the Asset Management & Investor Services Business Group Segment. The intangible assets resulting from the acquisition primarily relate to customer relationships of ¥45,141 million with a weighted average amortization period of 17.8 years. The revenue and net loss of MPMS since the acquisition date were ¥67,676 million and ¥3,919 million, respectively, for the fiscal year ended March 31, 2025.

Pro forma statements of income

The following unaudited pro forma statements of income present the results of income as if the acquisition of MPMS had occurred on April 1, 2023:


	Fiscal years ended March 31,
	2024		2025
	(in millions)
Statements of income data
Total revenue	¥	128,252	¥	114,723
Net income attributable to Mitsubishi UFJ Financial Group	¥	17,445	¥	2,746

The unaudited pro forma statements of income include the pro forma adjustments to reflect the impact of amortizing certain acquisition accounting adjustments relating to intangible assets subject to amortization of ¥2,281 million and ¥2,443 million for the fiscal years ended March 31, 2024 and 2025, respectively.

Acquisition of WealthNavi Inc.

On December 2, 2024, MUFG Bank commenced a tender offer to acquire all of the remaining outstanding shares of WealthNavi Inc. (“WealthNavi”), a Japan-based online asset management service provider. Before the offer, MUFG Bank held 15.13% shares of WealthNavi which was accounted for using the equity method of accounting. The offer was open through January 20, 2025 and MUFG Bank paid ¥90,026 million in cash on January 27, 2025 to acquire the shares of WealthNavi. Subsequently, MUFG Bank carried out a squeeze-out process on March 6, 2025 and WealthNavi became a wholly owned subsidiary of MUFG Bank. The cash payment of ¥8,809 million for the shares acquired in the squeeze-out process was completed in April 2025.

Through this transaction, MUFG Bank intends to seek to enhance solutions for long-term financial needs of customers by achieving synergies with WealthNavi such as (i) acceleration of development of a more comprehensive asset management advisory platform and further enrichment of user interface and experience, (ii) expansion of asset management capabilities and wider name recognition under the MUFG brand, (iii) strengthening of the online securities business with WealthNavi and Mitsubishi UFJ eSmart Securities Co., Ltd. complementing each other’s expertise and strengths, and (iv) utilization, where appropriate, of the methods and expertise of WealthNavi in business development and expansion management.

The assets acquired and liabilities assumed were recorded at their fair values on the acquisition date. The total assets and total liabilities of the acquired business were ¥88,038 million, including cash and bank deposits of ¥34,424 million, and ¥43,294 million, including other liabilities ¥33,722 million, respectively. The MUFG Group incurred ¥451 million of acquisition-related costs. The goodwill resulting from the acquisition was ¥63,730 million, which was not deductible for income tax purposes, and was allocated to the Retail & Digital Business Group Segment. The intangible assets resulting from the acquisition were ¥22,869 million of customer relationship with a weighted average amortization period of 9.0 years. The equity method interest in WealthNavi held by MUFG Bank immediately before the acquisition date was remeasured to a fair value of ¥9,638 million based on the quoted market price, resulting in a loss of ¥6,035 million which is included in Other non-interest income in the accompanying consolidated statements of income for the fiscal year ended March 31, 2025. Due to the proximity of the acquisition date to the MUFG Group's fiscal year end date, the revenue and net income of WealthNavi for the fiscal year ended March 31, 2025, were not material to the MUFG Group.

Pro forma statements of income

The following unaudited pro forma statements of income present the results of operations as if the acquisition of WealthNavi had occurred on April 1, 2023:

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	Fiscal years ended March 31,
	2024		2025
	(in millions)
Statement of income data
Total revenue	¥	8,173	¥	11,172
Net loss attributable to Mitsubishi UFJ Financial Group	¥	(1,388)	¥	(1,255)

The unaudited pro forma statements of income include the pro forma adjustments to reflect the impact of amortizing certain acquisition accounting adjustments relating to intangible assets subject to amortization of ¥2,541 million and ¥2,541 million for the fiscal years ended March 31, 2024 and 2025, respectively.

Acquisition of shares of au Kabucom Securities and Sale of shares of au Jibun Bank

On January 24, 2025, 51% of the shares of au Kabucom Securities Co., Ltd. (“au Kabucom Securities”) were transferred from Mitsubishi UFJ Securities Holdings to MUFG Bank. On January 31, 2025, MUFG Bank acquired the remaining 49% of the shares of au Kabucom Securities held by au Financial Holdings Corporation, a wholly owned subsidiary of KDDI Corporation (“KDDI”). As a result, au Kabucom Securities became a wholly owned subsidiary of MUFG Bank. On the same date, MUFG Bank sold its entire 22% shares of au Jibun Bank Corporation (“au Jibun Bank”), a subsidiary of KDDI. Prior to the sale, MUFG Bank accounted for its 22% investment in au Jibun Bank as an equity method investment. In February 2025, au Kabucom Securities was renamed “Mitsubishi UFJ eSmart Securities Co., Ltd.” These transactions are part of our strategy to streamline and strengthen the MUFG Group's online securities business, with an aim to gain a more competitive position in the industry. MUFG accounted the acquisition of the remaining shares of au Kabucom Securities and the sale of its equity interest in au Jibun Bank as a single nonmonetary transaction with au Financial Holdings Corporation. The transaction was recorded at fair value and resulted in MUFG paying ¥2,100 million in cash, a reduction in Noncontrolling interests of ¥21,858 million, a reduction in Capital surplus of ¥24,503 million, a reduction in equity method investment of ¥32,781 million, and the recognition of a gain of ¥8,850 million, which was reported in other non-interest income in the accompanying consolidated statements of income for the fiscal year ended March 31, 2025.

Acquisition of TIDLOR Holdings Public Company Limited

On June 11, 2024, the Extraordinary General Meeting of Ngern Tid Lor Public Company Limited (“NTL”), which was an equity method investee of Krungsri, approved the plan to restructure the shareholding and management structure of NTL. NTL provides loan and hire-purchase agreements for all types of vehicles, and acts as both a non-life and life insurance broker. The shareholding and management restructuring plan included the offering of newly issued shares by Tidlor Holdings Public Company Limited (“TIDLOR”). NTL arranged for TIDLOR to make a tender offer to purchase all of NTL’s securities from NTL’s shareholders by issuing and offering newly issued ordinary shares of TIDLOR in exchange for NTL’s existing ordinary shares. The securities swap ratio equaled 1 ordinary share of NTL for 1 new ordinary share of TIDLOR. In May 2025, Krungsri received 874,078,998 ordinary shares of TIDLOR.

On August 13, 2025, Krungsri completed the share purchase and transfer of 472,914,456 shares of TIDLOR at the amount of ¥37,281 million in cash from Siam Asia Credit Access Pte. Ltd., representing 16.33% of total issued ordinary shares in TIDLOR. This results in an increase of Krungsri's shareholding to 46.51%. However, Krungsri has the power to participate in management and control over TIDLOR. Accordingly, TIDLOR was changed from an equity method investee to a consolidated subsidiary.

Through this transaction, Krungsri aims to leverage TIDLOR's consistently strong and agile management to introduce innovative products and services that positively impact Thailand's underserved segment, particularly among retail and small-and-medium-sized customers. As a market leader, TIDLOR has demonstrated its ability to serve the diverse needs of customers and provide a better customer experience.

The assets acquired and liabilities assumed were recorded at their estimated fair values on the acquisition date. The total assets and total liabilities of the acquired business were ¥543,888 million, including net loans of ¥464,468 million, and ¥373,142 million, including long-term debt of ¥346,260 million, respectively. The fair value of the noncontrolling interests was ¥125,997 million. The equity method interest in TIDLOR held by Krungsri immediately before the acquisition date was remeasured to a fair value of ¥70,304 million based on the quoted market price, resulting in a gain of ¥12,568 million which is included in Other non-interest income in the accompanying condensed consolidated statements of income for the fiscal year ended March 31, 2026. The goodwill resulting from the acquisition was ¥62,836 million, which was not deductible for income tax purposes, and was allocated to the Global Commercial Banking Business Group Segment. The intangible assets resulting from the acquisitions of TIDLOR was ¥17,869 million which include ¥4,657 million of customer relationships with a weighted average amortization period of 5.0 years and ¥13,212 million of an

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indefinite-lived trade name. The revenue and net income of TIDLOR since the acquisition date were ¥74,841 million and ¥7,047 million, respectively, for the fiscal year ended March 31, 2026. The acquired loans of TIDLOR, other than those purchased with credit deterioration, had a fair value of ¥327,795 million at the acquisition date, with unpaid principal balances of ¥329,474 million. At the acquisition date, the MUFG Group estimated these loans’ contractual cash flows expected not to be collected were ¥7,759 million for TIDLOR.

During the fiscal year ended March 31, 2026, the MUFG Group incurred ¥151 million of acquisition-related costs.

Pro forma statements of income

The following unaudited pro forma statements of income present the results of income as if the acquisition of TIDLOR had occurred on April 1, 2024:


	Fiscal years ended March 31,
	2025		2026
	(in millions)
Statements of income data
Total revenue	¥	98,516	¥	111,903
Net income attributable to Mitsubishi UFJ Financial Group	¥	6,523	¥	8,693

The unaudited pro forma statements of income include the pro forma adjustments to reflect the impact of amortizing certain acquisition accounting adjustments relating to intangible assets subject to amortization of ¥893 million and ¥952 million for the fiscal years ended March 31, 2025 and 2026, respectively.

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3. INVESTMENT SECURITIES

The following tables present the amortized cost, gross unrealized gains and losses, and fair value of Available-for-sale debt securities and Held-to-maturity debt securities at March 31, 2025 and 2026:


At March 31, 2025	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(in millions)
Available-for-sale debt securities:
Japanese national government and Japanese government agency bonds	¥	22,314,148	¥	2,326	¥	232,617	¥	22,083,857
Japanese prefectural and municipal bonds	319,774		3		9,779		309,998
Foreign government and official institution bonds	4,149,418		11,679		82,628		4,078,469
Corporate bonds	905,194		10,213		11,524		903,883
Residential mortgage-backed securities	1,121,879		583		211		1,122,251
Asset-backed securities	1,405,859		7,491		1,199		1,412,151
Other debt securities	502,359		3,709		3,509		502,559
Total	¥	30,718,631	¥	36,004	¥	341,467	¥	30,413,168
Held-to-maturity debt securities:
Japanese national government and Japanese government agency bonds	¥	14,354,434	¥	4	¥	395,239	¥	13,959,199
Japanese prefectural and municipal bonds	2,545,627		—		93,141		2,452,486
Corporate bonds	214,949		—		3,602		211,347
Residential mortgage-backed securities	4,690,277		10,826		148,066		4,553,037
Asset-backed securities	1,466,898		4,447		421		1,470,924
Total	¥	23,272,185	¥	15,277	¥	640,469	¥	22,646,993

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At March 31, 2026:	Amortized cost		Gross unrealized gains		Gross unrealized losses		Fair value
	(in millions)
Available-for-sale debt securities:
Japanese national government and Japanese government agency bonds	¥	14,179,972	¥	124	¥	263,553	¥	13,916,543
Japanese prefectural and municipal bonds	177,037		1		10,587		166,451
Foreign government and official institution bonds	4,646,116		14,579		61,469		4,599,226
Corporate bonds	989,473		9,756		17,969		981,260
Residential mortgage-backed securities	1,015,934		1,197		109		1,017,022
Asset-backed securities	1,590,991		9,585		254		1,600,322
Other debt securities	351,950		3,612		2,045		353,517
Total	¥	22,951,473	¥	38,854	¥	355,986	¥	22,634,341
Held-to-maturity debt securities:
Japanese national government and Japanese government agency bonds	¥	16,590,035	¥	—	¥	849,169	¥	15,740,866
Japanese prefectural and municipal bonds	2,847,328		—		165,266		2,682,062
Corporate bonds	243,772		—		6,061		237,711
Residential mortgage-backed securities	4,488,121		25,121		124,695		4,388,547
Asset-backed securities	1,843,305		3,342		2,603		1,844,044
Total	¥	26,012,561	¥	28,463	¥	1,147,794	¥	24,893,230

Contractual Maturities

The amortized cost and fair values of Held-to-maturity debt securities and the fair values of Available-for-sale debt securities at March 31, 2026 by contractual maturity are shown below. Expected maturities may be shorter than contractual maturities because issuers of debt securities may have the right to call or prepay obligations with or without penalties. Debt securities not due at a single maturity date and securities embedded with call or prepayment options, such as mortgage-backed securities, are included in the table below based on their contractual maturities.


	Held-to-maturity debt securities				Available-for-sale debt securities
	Amortized cost		Fair value		Fair value
	(in millions)
Due in one year or less	¥	2,957,549	¥	2,936,497	¥	13,922,146
Due from one year to five years	6,009,650		5,821,162		4,031,750
Due from five years to ten years	10,106,082		9,421,512		3,382,039
Due after ten years	6,939,280		6,714,059		1,298,406
Total	¥	26,012,561	¥	24,893,230	¥	22,634,341

Realized Gains and Losses

For the fiscal years ended March 31, 2024, 2025 and 2026, gross realized gains on sales of Available-for-sale debt securities were ¥124,557 million, ¥49,923 million and ¥57,226 million, respectively, and gross realized losses on sales of Available-for-sale debt securities were ¥274,042 million, ¥200,679 million and ¥366,176 million, respectively.

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Impairment Losses on Investment Securities

For the fiscal year ended March 31, 2024, impairment losses on Available-for-sale debt securities, which mainly comprised of corporate bonds, were included in Investment securities gains (losses)—net in the accompanying consolidated statements of income and were not material.

For the fiscal year ended March 31, 2025, impairment losses on Available-for-sale debt securities of ¥12,988 million, which mainly comprised of other debt securities, were included in Investment securities gains (losses)—net in the accompanying consolidated statements of income.

For the fiscal year ended March 31, 2026, impairment losses on Available-for-sale debt securities, which comprised of corporate bonds, were included in Investment securities gains (losses)—net in the accompanying consolidated statements of income and were not material.

For the fiscal years ended March 31, 2024, 2025 and 2026, the MUFG Group’s Held-to-maturity debt securities were guaranteed by Japanese or U.S. government entities or agencies and had a long history of no credit losses or were rated investment grade. Based on the analysis performed, the MUFG Group has the intent and ability to hold these securities to maturity. Therefore, no credit losses were expected on these securities and no impairment loss has been recorded.

Gross Unrealized Losses and Fair Value

The following tables show the gross unrealized losses and fair value of Available-for-sale debt securities at March 31, 2025 and 2026 by length of time that individual securities in each category have been in a continuous loss position:


	Less than 12 months				12 months or more				Total
At March 31, 2025	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Number of securities
	(in millions, except number of securities)
Available-for-sale debt securities:
Japanese national government and Japanese government agency bonds	¥	19,809,049	¥	109,736	¥	1,160,183	¥	122,881	¥	20,969,232	¥	232,617	311
Japanese prefectural and municipal bonds	30,167		82		279,731		9,697		309,898		9,779		282
Foreign government and official institution bonds	710,517		9,198		1,584,560		73,430		2,295,077		82,628		104
Corporate bonds	206,591		3,069		413,226		8,455		619,817		11,524		483
Residential mortgage-backed securities	—		—		274,894		211		274,894		211		9
Asset-backed securities	244,037		1,193		1,252		6		245,289		1,199		25
Other debt securities	213,737		423		48,799		3,086		262,536		3,509		74
Total	¥	21,214,098	¥	123,701	¥	3,762,645	¥	217,766	¥	24,976,743	¥	341,467	1,288


	Less than 12 months				12 months or more				Total
At March 31, 2026:	Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Fair value		Gross unrealized losses		Number of securities
	(in millions, except number of securities)
Available-for-sale debt securities:
Japanese national government and Japanese government agency bonds	¥	11,646,480	¥	22,273	¥	1,671,333	¥	241,280	¥	13,317,813	¥	263,553	252
Japanese prefectural and municipal bonds	—		—		166,380		10,587		166,380		10,587		202
Foreign government and official institution bonds	1,128,963		8,090		1,271,358		53,379		2,400,321		61,469		105
Corporate bonds	203,323		3,914		456,324		14,055		659,647		17,969		479
Residential mortgage-backed securities	—		—		113,974		109		113,974		109		5
Asset-backed securities	55,271		212		9,509		42		64,780		254		14
Other debt securities	171,466		70		57,890		1,975		229,356		2,045		52
Total	¥	13,205,503	¥	34,559	¥	3,746,768	¥	321,427	¥	16,952,271	¥	355,986	1,109

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Evaluating Available-for-sale debt securities for Impairment losses

The following describes the nature of the MUFG Group’s Available-for-sale debt securities and the conclusions reached in determining whether impairment losses exist.

Japanese national government and Japanese government agency bonds, Japanese prefectural and municipal bonds, Foreign government and official institution bonds

As of March 31, 2026, unrealized losses associated with these securities were deemed to be attributable to changes in market interest rates rather than a deterioration in the creditworthiness of the underlying obligor. Based on a consideration of factors, including cash flow analysis, the MUFG Group expects to recover the entire amortized cost basis of these securities. Accordingly, no credit loss was identified as of March 31, 2026 and no impairment loss has been recorded.

Corporate bonds

As of March 31, 2026, unrealized losses associated with corporate bonds were primarily related to private placement bonds issued by Japanese non-public companies. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining terms of the bonds as estimated using the MUFG Group’s cash flow projections. The key assumptions include probability of default based on credit ratings of the bond issuers and loss given default.

Residential mortgage-backed securities

As of March 31, 2026, unrealized losses associated with these securities were mainly resulting from changes in interest rates and not from changes in credit quality. Based on a consideration of factors, including cash flow analysis, the MUFG Group expects to recover the entire amortized cost basis of these securities. Accordingly, no credit loss was identified as of March 31, 2026 and no impairment loss had been recorded.

Asset-backed securities

As of March 31, 2026, unrealized losses associated with these securities, other than highly illiquid securities for which fair values are difficult to determine, were mainly resulting from changes in interest rates and not from changes in credit quality. Based on the consideration of various factors, including cash flow analysis, the MUFG Group expects to recover the entire amortized cost basis of these securities. For the highly illiquid securities, including certain collateralized loan obligations (“CLOs”), unrealized losses arise from widening credit spreads, deterioration of the credit quality of the underlying collateral, uncertainty regarding the valuation of such securities and the market’s view of the performance of the fund managers. When the fair value of a security is lower than its amortized cost or when any security is subject to a deterioration in credit rating, the MUFG Group undertakes a cash flow analysis of the underlying collateral to estimate the credit loss and confirms the intent and ability to hold these securities until recovery. Based on the analysis performed, no credit loss was identified as of March 31, 2026 and no impairment loss has been recorded.

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Equity Securities

The following table presents net realized gains (losses) on sales of equity securities, and net unrealized gains (losses) on equity securities still held at March 31, 2024, 2025 and 2026:


	Fiscal years ended March 31,
	2024		2025		2026
	(in millions)
Net gains (losses) recognized during the period(1)	¥	1,527,792	¥	(674,282)	¥	983,840
Less:
Net gains (losses) recognized during the period on equity securities sold during the period	113,216		(107,892)		151,388
Net unrealized gains (losses) recognized during the reporting period still held at the reporting date	¥	1,414,576	¥	(566,390)	¥	832,452

Note:

(1)Included in Investment securities gains (losses)—net.

Measurement Alternative of Equity Securities

The following table presents the carrying value of nonmarketable equity securities that are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes (“measurement alternative”), held at March 31, 2025 and 2026:


	2025		2026
	(in millions)
Measurement alternative balance	¥	603,633	¥	647,115

The related adjustments for these securities for the fiscal years ended March 31, 2024, 2025 and 2026 were as follows:


	Fiscal years ended March 31,
	2024		2025		2026
	(in millions)
Measurement alternative impairment losses(1)(4)	¥	(11,943)	¥	(37,469)	¥	(22,633)
Measurement alternative downward changes for observable prices(1)(2)(3)(5)	¥	(1,567)	¥	—	¥	—
Measurement alternative upward changes for observable prices(1)(2)(3)(6)	¥	882	¥	8,060	¥	12,222

Notes:

(1)Included in Investment securities gains (losses)—net.

(2)Under the measurement alternative, nonmarketable equity securities are carried at cost plus or minus changes resulting from observable prices in orderly transactions for the identical or a similar investment of the same issuer.

(3)The MUFG Group applied measurement alternative downward or upward changes to certain nonmarketable equity securities, resulting from observable prices in orderly transactions, such as partial repurchase and transactions by other entities.

(4)The cumulative impairment losses at March 31, 2025 and 2026 were ¥65,989 million and ¥85,549 million, respectively.

(5)The cumulative downward changes for observable prices at March 31, 2025 and 2026 were ¥2,961 million and ¥2,961 million, respectively.

(6)The cumulative upward changes for observable prices at March 31, 2025 and 2026 were ¥66,132 million and ¥77,877 million, respectively.

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4. LOANS AND ALLOWANCE FOR CREDIT LOSSES

The MUFG Group classifies its loan portfolio into the following portfolio segments—Commercial, Residential, Card, Krungsri, and Other based on the grouping used by the MUFG Group to determine the allowance for credit losses. The MUFG Group further classifies the Commercial segment into classes based on initial measurement attributes, risk characteristics, and its method of monitoring and assessing credit risk. See Note 1 for further information.

Total Outstanding Loans and Past Due Analysis

The table below presents total outstanding loans and past due analysis by class at March 31, 2025 and 2026.


	Past Due
At At March 31, 2025::	1-3 months		Greater Than 3 months		Total Past Due		Current		Loans Held for Sale		Total Loans		Past Due 90 Days and Accruing
	(in millions)
Commercial
Domestic	¥	9,275	¥	6,127	¥	15,402	¥	61,523,077	¥	130,854	¥	61,669,333	¥	2,419
Foreign	4,310		22,018		26,328		45,465,082		756,409		46,247,819		4,667
Residential	32,739		10,711		43,450		12,518,330		—		12,561,780		3,157
Card	15,737		30,221		45,958		452,815		—		498,773		—
Krungsri	228,655		252,745		481,400		8,365,508		—		8,846,908		—
Other	21,555		28,744		50,299		2,006,393		—		2,056,692		—
Total	¥	312,271	¥	350,566	¥	662,837	¥	130,331,205	¥	887,263	¥	131,881,305	¥	10,243
Unearned income, unamortized premiums—net and deferred loan fees—net											(442,790)
Total											¥	131,438,515

	Past Due
At March 31, 2026:	1-3 months		Greater Than 3 months		Total Past Due		Current		Loans Held for Sale		Total Loans		Past Due 90 Days and Accruing
	(in millions)
Commercial
Domestic	¥	5,227	¥	12,697	¥	17,924	¥	64,013,000	¥	161,423	¥	64,192,347	¥	2,879
Foreign	35,519		27,311		62,830		54,537,275		1,072,260		55,672,365		—
Residential	29,796		9,805		39,601		12,802,909		—		12,842,510		2,656
Card	18,154		34,414		52,568		504,940		—		557,508		—
Krungsri	281,023		228,683		509,706		9,315,107		19,964		9,844,777		—
Other	17,972		26,260		44,232		2,171,741		—		2,215,973		—
Total	¥	387,691	¥	339,170	¥	726,861	¥	143,344,972	¥	1,253,647	¥	145,325,480	¥	5,535
Unearned income, unamortized premiums—net and deferred loan fees—net											(506,256)
Total											¥	144,819,224

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Nonaccrual Loans

Originated loans are generally placed on nonaccrual status when substantial doubt exists as to the full and timely collection of either principal or interest, when principal or interest is contractually past due one month or more with respect to loans within all classes of the Commercial segment, three months or more with respect to loans within the Card and Krungsri segments, and six months or more with respect to loans within the Residential segment. See Note 1 for further information.

The information on nonaccrual loans by class at March 31, 2025 and 2026, and recognized interest income on nonaccrual loans by class for the fiscal years ended March 31, 2025 and 2026 are shown below:


	Recorded Loan Balance
March 31, 2025:	Nonaccrual Loans(1)		Nonaccrual Loans Not Requiring an Allowance for Credit Losses(2)		Recognized Interest Income
	(in millions)
Commercial
Domestic	¥	279,460	¥	78,151	¥	4,433
Foreign	223,696		35,266		6,965
Residential	35,884		3,885		852
Card	77,534		—		34
Krungsri	327,637		8,198		15,037
Other	32,490		9		3,392
Total	¥	976,701	¥	125,509	¥	30,713


	Recorded Loan Balance
March 31, 2026:	Nonaccrual Loans(1)		Nonaccrual Loans Not Requiring an Allowance for Credit Losses(2)		Recognized Interest Income
	(in millions)
Commercial
Domestic	¥	198,756	¥	90,531	¥	3,578
Foreign	287,699		36,230		6,873
Residential	31,627		3,560		850
Card	38,164		—		87
Krungsri	330,984		14,844		15,036
Other	30,998		3		3,042
Total	¥	918,228	¥	145,168	¥	29,466

Notes:

(1)Nonaccrual loans in the above table do not include loans held for sale of ¥20,258 million and ¥26,418 million at March 31, 2025 and 2026, respectively.

(2)These loans do not require an allowance for credit losses because the recorded loan balance equals, or does not exceed, the present value of expected future cash flows discounted at the loans’ effective interest rate, or the fair value of the collateral if the loan is a collateral-dependent loan.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Loan Modifications

The following table summarizes the MUFG Group’s loan modifications that were made to borrowers experiencing financial difficulty by class for the fiscal years ended March 31, 2024, 2025 and 2026:

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Fiscal year ended March 31, 2024:	Loan Modifications Made to Borrowers Experiencing Financial Difficulty				Loans Modified within 12 months of Subsequent Default
	Amortized Cost Basis at the Period End		Percentage of Total Class of Loans		Amortized Cost Basis at the Period End
	(in millions, except percentages)
Commercial(1)
Domestic
Interest rate reduction	¥	3,110	0.01	%	¥	—
Term extension	315,702		0.55		5,201
Combination of interest rate reduction and term extension	7,038		0.01		—
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—
Foreign
Interest rate reduction	¥	1,720	0.00	%	¥	—
Term extension	83,764		0.18		227
Combination of interest rate reduction and term extension	82		0.00		—
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—
Residential(1)
Interest rate reduction	¥	—	—	%	¥	—
Term extension	14,842		0.12		105
Combination of interest rate reduction and term extension	—		—		—
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—
Card(2)
Interest rate reduction	¥	—	—	%	¥	—
Term extension	—		—		—
Combination of interest rate reduction and term extension	23,689		4.89		3,038
Combination of term extension and principal forgiveness	226		0.05		3
All other modifications and combinations	—		—		—
Krungsri(2)
Interest rate reduction	¥	621	0.01	%	¥	85
Term extension	254,892		2.89		10,030
Combination of interest rate reduction and term extension	1,863		0.02		263
Combination of term extension and principal forgiveness	239		0.00		2,074
All other modifications and combinations	657		0.01		62
Other(2)
Interest rate reduction	¥	606	0.03	%	¥	304
Term extension	6,464		0.37		415
Combination of interest rate reduction and term extension	345		0.02		—
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


Fiscal year ended March 31, 2025:	Loan Modifications Made to Borrowers Experiencing Financial Difficulty				Loans Modified within 12 months of Subsequent Default
	Amortized Cost Basis at the Period End		Percentage of Total Class of Loans		Amortized Cost Basis at the Period End
	(in millions, except percentages)
Commercial(1)
Domestic
Interest rate reduction	¥	436	0.00	%	¥	—
Term extension	296,078		0.48		5,819
Combination of interest rate reduction and term extension	4,934		0.01		88
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—
Foreign
Interest rate reduction	¥	—	—	%	¥	—
Term extension	85,363		0.18		912
Combination of interest rate reduction and term extension	—		—		—
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—
Residential(1)
Interest rate reduction	¥	—	—	%	¥	—
Term extension	9,826		0.08		243
Combination of interest rate reduction and term extension	—		—		—
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—
Card(2)
Interest rate reduction	¥	—	—	%	¥	—
Term extension	—		—		—
Combination of interest rate reduction and term extension	24,338		4.88		2,686
Combination of term extension and principal forgiveness	234		0.05		2
All other modifications and combinations	—		—		—
Krungsri(2)
Interest rate reduction	¥	811	0.01	%	¥	326
Term extension	196,337		2.22		22,432
Combination of interest rate reduction and term extension	13,248		0.15		1,218
Combination of term extension and principal forgiveness	4,064		0.05		31
All other modifications and combinations	4,475		0.05		70
Other(2)
Interest rate reduction	¥	2,014	0.10	%	¥	68
Term extension	7,412		0.36		1,343
Combination of interest rate reduction and term extension	—		—		4
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


Fiscal year ended March 31, 2026:	Loan Modifications Made to Borrowers Experiencing Financial Difficulty				Loans Modified within 12 months of Subsequent Default
	Amortized Cost Basis at the Period End		Percentage of Total Class of Loans		Amortized Cost Basis at the Period End
	(in millions, except percentages)
Commercial(1)
Domestic
Interest rate reduction	¥	4	0.00	%	¥	4
Term extension	311,314		0.48		11,150
Combination of interest rate reduction and term extension	702		0.00		—
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—
Foreign
Interest rate reduction	¥	360	0.00	%	¥	—
Term extension	72,434		0.13		18,380
Combination of interest rate reduction and term extension	6,280		0.01		—
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—
Residential(1)
Interest rate reduction	¥	—	—	%	¥	—
Term extension	7,797		0.06		89
Combination of interest rate reduction and term extension	—		—		—
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—
Card(2)
Interest rate reduction	¥	—	—	%	¥	—
Term extension	—		—		—
Combination of interest rate reduction and term extension	27,118		4.86		3,992
Combination of term extension and principal forgiveness	423		0.08		119
All other modifications and combinations	—		—		—
Krungsri(2)
Interest rate reduction	¥	11	0.00	%	¥	255
Term extension	134,785		1.37		21,519
Combination of interest rate reduction and term extension	89,458		0.91		3,700
Combination of term extension and principal forgiveness	344		0.00		4,543
All other modifications and combinations	1,590		0.02		37
Other(2)
Interest rate reduction	¥	1,720	0.08	%	¥	840
Term extension	5,670		0.26		526
Combination of interest rate reduction and term extension	1		0.00		—
Combination of term extension and principal forgiveness	—		—		—
All other modifications and combinations	—		—		—

Notes:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(1)The modified loans for the Commercial and Residential segments include accruing loans, and do not include nonaccrual loans.

(2)The modified loans for the Card, Krungsri and Other segments include accruing and nonaccrual loans.

Loan modifications made to borrowers experiencing financial difficulty for the Commercial and Residential segments in the above tables include accruing loans, and do not include nonaccrual loans. Once a loan is classified as a nonaccrual loan, a modification would have little likelihood of resulting in the recovery of the loan in view of the severity of the financial difficulty of the borrower. Therefore, even if a nonaccrual loan is modified, the loan continues to be classified as a nonaccrual loan. The vast majority of modifications to nonaccrual loans are temporary extensions of the maturity dates, typically for periods up to 90 days, and continually made as the borrower is unable to repay or refinance the loan at the extended maturity. Accordingly, the impact of such loans on the period-ended amortized cost basis is immaterial, and the vast majority of nonaccrual modified loans have subsequently defaulted.

Loans that had a payment default during the period and had been modified to borrowers experiencing financial difficulty at the time of the modification within the previous 12 months preceding the payment default in the Commercial and Residential segments in the above tables include those accruing loans that became past due one month or more within the Commercial segment and six months or more within the Residential segment, and those accruing loans reclassified to nonaccrual loans due to financial difficulties even without delinquencies. This is because classification as a nonaccrual loan is regarded as a default under the MUFG Group’s credit policy. Additionally, the MUFG Group defines default as payment default for the purpose of the disclosure.

In regards to the Card, Krungsri and Other segments, loan modifications made to borrowers experiencing financial difficulty in the above tables represent nonaccrual and accruing loans, and the defaulted loans in the above table represent nonaccrual and accruing loans that became past due one month or more within the Card segment, and six months or more within the Krungsri segment.

Historical payment defaults are one of the factors considered when determining the allowance for credit losses, and are factored into projecting future cash flows for segments other than the Card segment, for which such default information is considered when using collectively-assessed allowance methodology.

The following table provides the financial effect of the modifications made to borrowers experiencing financial difficulty by class for the fiscal years ended March 31, 2024, 2025 and 2026:


Fiscal year ended March 31, 2024:						Financial Effect
Commercial
Domestic
Interest rate reduction						Reduced weighted-average contractual interest rate by 0.13%.
Term extension						Added a weighted-average 1.0 years to the life of loans.

Foreign
Interest rate reduction						Reduced weighted-average contractual interest rate by 0.46%.
Term extension						Added a weighted-average 0.8 years to the life of loans.

Residential
Term extension						Added a weighted-average 1.6 years to the life of loans.

Card
Interest rate reduction						Reduced weighted-average contractual interest rate by 15.22%.
Term extension						Added a weighted-average 3.0 years to the life of loans.
Principal forgiveness						Reduced the principal balance of the loans by ¥809 million.
Krungsri
Interest rate reduction						Reduced weighted-average contractual interest rate by 1.34%.
Term extension						Added a weighted-average 2.3 years to the life of loans.
Principal forgiveness						Reduced the principal balance of the loans by ¥1,250 million.
Other
Interest rate reduction						Reduced weighted-average contractual interest rate by 3.40%.
Term extension						Added a weighted-average 3.0 years to the life of loans.

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Fiscal year ended March 31, 2025:						Financial Effect
Commercial
Domestic
Interest rate reduction						Reduced weighted-average contractual interest rate by 0.11%.
Term extension						Added a weighted-average 0.8 years to the life of loans.

Foreign

Term extension						Added a weighted-average 0.7 years to the life of loans.

Residential

Term extension						Added a weighted-average 1.6 years to the life of loans.

Card
Interest rate reduction						Reduced weighted-average contractual interest rate by 18.00%.
Term extension						Added a weighted-average 3.0 years to the life of loans.
Principal forgiveness						Reduced the principal balance of the loans by ¥862 million.
Krungsri
Interest rate reduction						Reduced weighted-average contractual interest rate by 4.70%.
Term extension						Added a weighted-average 3.6 years to the life of loans.
Principal forgiveness						Reduced the principal balance of the loans by ¥3,524 million.
Other
Interest rate reduction						Reduced weighted-average contractual interest rate by 4.00%.
Term extension						Added a weighted-average 1.0 year to the life of loans.


Fiscal year ended March 31, 2026:						Financial Effect
Commercial
Domestic
Interest rate reduction						Reduced weighted-average contractual interest rate by 0.11%.
Term extension						Added a weighted-average 1.1 years to the life of loans.

Foreign
Interest rate reduction						Reduced weighted-average contractual interest rate by 0.68% .
Term extension						Added a weighted-average 1.0 years to the life of loans.

Residential

Term extension						Added a weighted-average 1.6 years to the life of loans.

Card
Interest rate reduction						Reduced weighted-average contractual interest rate by 16.81%.
Term extension						Added a weighted-average 3.0 years to the life of loans.
Principal forgiveness						Reduced the principal balance of the loans by ¥1,118 million.
Krungsri
Interest rate reduction						Reduced weighted-average contractual interest rate by 7.97%.
Term extension						Added a weighted-average 3.4 years to the life of loans.
Principal forgiveness						Reduced the principal balance of the loans by ¥5,706 million.
Other
Interest rate reduction						Reduced weighted-average contractual interest rate by 2.20%.
Term extension						Added a weighted-average 1.0 year to the life of loans.

The following table provides the performance of loans that have been modified in the last 12 months to borrowers experiencing financial difficulty by class for the fiscal years ended March 31, 2024, 2025 and 2026:

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Fiscal year ended March 31, 2024 :	Payment Status (Amortized Cost Basis at the Period End)
	Current		1-3 months Past Due		Greater Than 3 months Past Due
	(in millions)
Commercial(1)
Domestic	¥	324,772	¥	740	¥	338
Foreign	85,566		—		—
Residential(1)	13,770		918		154
Card(2)	17,888		3,961		2,066
Krungsri(2)	225,319		24,839		8,114
Other(2)	5,673		1,448		294
Total	¥	672,988	¥	31,906	¥	10,966


Fiscal year ended March 31, 2025 :	Payment Status (Amortized Cost Basis at the Period End)
	Current		1-3 months Past Due		Greater Than 3 months Past Due
	(in millions)
Commercial(1)
Domestic	¥	300,859	¥	442	¥	148
Foreign	84,672		690		—
Residential(1)	8,930		742		154
Card(2)	19,316		3,562		1,694
Krungsri(2)	159,909		31,610		27,416
Other(2)	5,864		2,516		1,046
Total	¥579,550		¥39,562		¥30,458


Fiscal year ended March 31, 2026:	Payment Status (Amortized Cost Basis at the Period End)
	Current		1-3 months Past Due		Greater Than 3 months Past Due
	(in millions)
Commercial(1)
Domestic	¥	310,091	¥	213	¥	1,716
Foreign	79,074		—		—
Residential(1)	7,352		379		66
Card(2)	19,908		5,905		1,728
Krungsri(2)	183,106		25,665		17,418
Other(2)	5,724		1,116		550
Total	¥	605,255	¥	33,278	¥	21,478

Notes:

(1)The modified loans for the Commercial and Residential segments include accruing loans, and do not include nonaccrual loans.

(2)The modified loans for the Card, Krungsri and Other segments include accrual and nonaccrual loans.

The MUFG Group provided commitments to extend credit to borrowers experiencing financial difficulty that were granted modifications in the form of principal forgiveness, an interest rate reduction, or a term extension for the fiscal years ended March 31,

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

2025 and 2026. The amount of such commitments was ¥81,151 million and ¥98,864 million at March 31, 2025 and 2026, respectively. See Note 24 for further discussion of commitments to extend credit and information on the balance of commitments.

Credit Quality Indicator

Credit quality indicators of loans and fiscal year of origination by class at March 31, 2025 and 2026, and gross charge-offs for the fiscal years ended March 31, 2025 and 2026 are shown below:


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total(1)
At March 31, 2025 :	2024		2023		2022		2021		2020		Prior
	(in millions)
Commercial:	¥	36,144,399	¥	14,800,806	¥	9,780,316	¥	4,868,593	¥	4,571,927	¥	9,808,543	¥	26,976,735	¥	78,570	¥	107,029,889
Domestic	24,117,429		7,173,200		6,154,487		3,848,005		4,060,428		7,912,621		8,272,309		—		61,538,479
Normal	23,928,261		7,042,016		6,052,900		3,665,031		3,962,275		7,288,161		8,073,197		—		60,011,841
Close Watch	128,827		122,907		90,760		166,698		78,351		529,207		184,168		—		1,300,918
Likely to become Bankrupt or Legally/Virtually Bankrupt	60,341		8,277		10,827		16,276		19,802		95,253		14,944		—		225,720
Gross charge-offs	1,371		2,259		2,078		592		261		3,140		907		—		10,608
Foreign	12,026,970		7,627,606		3,625,829		1,020,588		511,499		1,895,922		18,704,426		78,570		45,491,410
Normal	11,839,879		7,367,932		3,465,137		1,011,411		480,256		1,732,371		18,474,590		76,313		44,447,889
Close Watch	154,312		177,968		137,788		9,177		19,982		114,575		213,896		—		827,698
Likely to become Bankrupt or Legally/Virtually Bankrupt	32,779		81,706		22,904		—		11,261		48,976		15,940		2,257		215,823
Gross charge-offs	2,151		8,622		11,010		2,855		336		6,872		13,460		—		45,306
Residential	¥	1,124,971	¥	636,238	¥	625,599	¥	672,243	¥	537,121	¥	8,947,802	¥	17,806	¥	—	¥	12,561,780
Accrual	1,124,734		636,136		625,164		672,068		536,861		8,914,948		16,419		—		12,526,330
Nonaccrual	237		102		435		175		260		32,854		1,387		—		35,450
Gross charge-offs	—		—		5		43		10		576		1		—		635
Card	¥	38	¥	179	¥	270	¥	310	¥	279	¥	703	¥	416,238	¥	80,756	¥	498,773
Accrual	1		3		7		15		6		33		403,628		17,546		421,239
Nonaccrual	37		176		263		295		273		670		12,610		63,210		77,534
Gross charge-offs	3		52		112		93		70		152		9,249		12,271		22,002
Krungsri	¥	1,688,668	¥	1,487,981	¥	1,002,889	¥	546,198	¥	239,302	¥	904,667	¥	2,955,217	¥	21,986	¥	8,846,908
Performing	1,507,924		1,325,246		855,947		442,848		193,714		651,811		2,698,374		7		7,675,871
Under-Performing	147,612		115,002		102,598		66,928		31,663		173,199		206,398		—		843,400
Non-Performing	33,132		47,733		44,344		36,422		13,925		79,657		50,445		21,979		327,637
Gross charge-offs	5,970		53,874		50,589		21,359		7,095		23,135		32,294		5,327		199,643
Other	¥	795,726	¥	385,741	¥	162,365	¥	38,968	¥	34,651	¥	91,677	¥	547,564	¥	—	¥	2,056,692
Accrual	790,753		378,532		159,835		38,006		33,940		86,122		537,014		—		2,024,202
Nonaccrual	4,973		7,209		2,530		962		711		5,555		10,550		—		32,490
Gross charge-offs	6,492		30,173		9,590		2,623		383		3,075		6,621		—		58,957

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


	Term Loans Amortized Cost Basis by Origination Year												Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans Amortized Cost Basis		Total(1)
At March 31, 2026:	2025		2024		2023		2022		2021		Prior
	(in millions)
Commercial:	¥	40,955,619	¥	12,944,026	¥	10,257,523	¥	6,692,362	¥	3,535,686	¥	10,669,085	¥	33,514,937	¥	61,791	¥	118,631,029
Domestic	24,813,049		6,744,426		5,711,688		4,720,077		2,927,815		8,958,519		10,155,350		—		64,030,924
Normal	24,703,682		6,632,617		5,613,025		4,670,059		2,851,319		8,381,226		9,989,979		—		62,841,907
Close Watch	96,046		104,366		71,621		40,514		65,825		499,564		150,293		—		1,028,229
Likely to become Bankrupt or Legally/Virtually Bankrupt	13,321		7,443		27,042		9,504		10,671		77,729		15,078		—		160,788
Gross charge-offs	2,028		3,480		197		2,589		5,425		6,674		2,778		—		23,171
Foreign	16,142,570		6,199,600		4,545,835		1,972,285		607,871		1,710,566		23,359,587		61,791		54,600,105
Normal	15,928,759		5,965,943		4,364,812		1,882,422		591,535		1,574,598		23,157,551		58,528		53,524,148
Close Watch	173,991		159,533		144,244		47,880		5,927		90,921		164,319		2,599		789,414
Likely to become Bankrupt or Legally/Virtually Bankrupt	39,820		74,124		36,779		41,983		10,409		45,047		37,717		664		286,543
Gross charge-offs	236		3,233		18,841		17,144		10		5,434		16,082		—		60,980
Residential	¥	1,294,984	¥	1,079,225	¥	604,148	¥	592,837	¥	633,849	¥	8,621,902	¥	15,565	¥	—	¥	12,842,510
Accrual	1,294,914		1,079,045		603,989		592,443		633,666		8,592,808		14,370		—		12,811,235
Nonaccrual	70		180		159		394		183		29,094		1,195		—		31,275
Gross charge-offs	—		—		—		8		28		969		—		—		1,005
Card	¥	20	¥	149	¥	273	¥	306	¥	325	¥	909	¥	466,827	¥	88,699	¥	557,508
Accrual	—		4		10		6		13		133		451,707		67,471		519,344
Nonaccrual	20		145		263		300		312		776		15,120		21,228		38,164
Gross charge-offs	19		83		136		195		121		364		9,151		15,507		25,576
Krungsri	¥	2,334,311	¥	1,152,780	¥	1,072,147	¥	646,579	¥	381,925	¥	834,417	¥	3,380,267	¥	22,387	¥	9,824,813
Performing	2,102,663		974,527		933,091		507,781		299,850		597,348		3,116,056		5		8,531,321
Under-Performing	172,593		145,380		110,228		102,792		54,875		164,397		212,243		—		962,508
Non-Performing	59,055		32,873		28,828		36,006		27,200		72,672		51,968		22,382		330,984
Gross charge-offs	4,017		29,542		55,774		33,983		16,756		17,430		34,217		7,008		198,727
Other	¥	896,023	¥	337,578	¥	231,863	¥	89,166	¥	15,613	¥	90,163	¥	555,567	¥	—	¥	2,215,973
Accrual	892,614		330,796		228,120		87,984		14,994		84,026		546,441		—		2,184,975
Nonaccrual	3,409		6,782		3,743		1,182		619		6,137		9,126		—		30,998
Gross charge-offs	4,137		24,686		12,489		2,768		560		1,938		5,018		—		51,596

Note:

(1)Total loans in the above table do not include loans held for sale, and represent balances without adjustments in relation to unearned income, unamortized premiums and deferred loan fees.

The MUFG Group classifies loans into risk categories based on relevant information about the ability of borrowers to service their debt, including, but not limited to, historical and current financial information, historical and current payment experience, credit documentation, public and non-public information about borrowers and current economic trends as deemed appropriate to each segment.

The primary credit quality indicator for loans within all classes of the Commercial segment is the internal credit rating assigned to each borrower based on the MUFG Group’s internal borrower ratings of 1 through 15, with the rating of 1 assigned to a borrower with the highest quality of credit. When assigning a credit rating to a borrower, the MUFG Group evaluates the borrower’s expected debt-service capability based on various information, including financial and operating information of the borrower as well as information on the industry in which the borrower operates, and the borrower’s business profile, management and compliance system. In evaluating a borrower’s debt-service capability, the MUFG Group also conducts an assessment of the level of earnings and an analysis of the borrower’s net worth. Based on the internal borrower rating, loans within the Commercial segment are categorized as

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Normal (internal borrower ratings of 1 through 9), Close Watch (internal borrower ratings of 10 through 12), and Likely to become Bankrupt or Legally/Virtually Bankrupt (internal borrower ratings of 13 through 15).

Loans to borrowers categorized as Normal represent those that are not deemed to have collectability issues.

Loans to borrowers categorized as Close Watch represent those that require close monitoring as the borrower has begun to exhibit elements of potential concern with respect to its business performance and financial condition, the borrower has begun to exhibit elements of serious concern with respect to its business performance and financial condition, including business problems requiring long-term solutions, or the borrower’s loans are contractually past due 90 days or more for special reasons.

Loans to borrowers categorized as Likely to become Bankrupt or Legally/Virtually Bankrupt represent those that have a higher probability of default than those categorized as Close Watch due to serious debt repayment problems with poor progress in achieving restructuring plans, the borrower being considered virtually bankrupt with no prospects for an improvement in business operations, or the borrower being legally bankrupt with no prospects for continued business operations because of non-payment, suspension of business, voluntary liquidation or filing for legal liquidation.

Loans within the Krungsri segment are categorized as Performing, Under-Performing or Non-Performing based on their delinquency status. Loans categorized as Under-Performing generally represent those that have significant increases in credit risk since origination, including, among other things, loans that are 30 days or more past due, and loans categorized as Non-Performing generally represent those that are 90 days or more past due.

Allowance for Credit Losses

Effective as of April 1, 2023, the MUFG Group adopted new guidance on measurement of credit losses on financial instruments for loan modifications made to borrowers experiencing financial difficulty.

Under the new guidance, the MUFG Group adopts a discounted cash flow methodology that utilizes a discount rate that is based on the post-modification contractual interest rate, other than modified loans in the Card segment, for which the allowance is measured using collectively-assessed allowance methodology.

Changes in the allowance for credit losses by portfolio segment for the fiscal years ended March 31, 2024, 2025 and 2026 are shown below:


Fiscal year ended March 31, 2024:	Commercial		Residential		Card		Krungsri		Other		Total
	(in millions)
Allowance for credit losses:
Balance at beginning of fiscal year	¥	719,589	¥	59,747	¥	42,469	¥	364,647	¥	93,062	¥	1,279,514
Provision for (reversal of) credit losses	66,240		(1,500)		21,927		138,358		33,770		258,795
Charge-offs	72,792		1,289		21,020		180,641		38,633		314,375
Recoveries collected	14,488		6		713		32,856		17,173		65,236
Net charge-offs	58,304		1,283		20,307		147,785		21,460		249,139
Other(1)(2)(3)	17,989		—		(7,666)		49,991		7,477		67,791
Balance at end of fiscal year	¥	745,514	¥	56,964	¥	36,423	¥	405,211	¥	112,849	¥	1,356,961

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Fiscal year ended March 31, 2025:	Commercial		Residential		Card		Krungsri		Other		Total
	(in millions)
Allowance for credit losses:
Balance at beginning of fiscal year	¥	745,514	¥	56,964	¥	36,423	¥	405,211	¥	112,849	¥	1,356,961

Provision for (reversal of) credit losses	(93,052)		(6,729)		25,607		156,582		39,382		121,790
Charge-offs	55,914		635		22,002		199,643		58,957		337,151
Recoveries collected	13,213		7		899		40,340		16,433		70,892
Net charge-offs	42,701		628		21,103		159,303		42,524		266,259
Other(1)	1,861		—		—		21,367		7,355		30,583
Balance at end of fiscal year	¥	611,622	¥	49,607	¥	40,927	¥	423,857	¥	117,062	¥	1,243,075


Fiscal year ended March 31, 2026:	Commercial		Residential		Card		Krungsri		Other		Total
	(in millions)
Allowance for credit losses:
Balance at beginning of fiscal year	¥	611,622	¥	49,607	¥	40,927	¥	423,857	¥	117,062	¥	1,243,075
Provision for (reversal of) credit losses	24,661		(15,826)		30,027		150,212		37,038		226,112
Charge-offs	84,151		1,005		25,576		198,727		51,596		361,055
Recoveries collected	7,294		—		643		44,067		12,537		64,541
Net charge-offs	76,857		1,005		24,933		154,660		39,059		296,514
Other(1)(4)	8,173		—		—		57,820		(4,326)		61,667
Balance at end of fiscal year	¥	567,599	¥	32,776	¥	46,021	¥	477,229	¥	110,715	¥	1,234,340

Notes:

(1)Other is principally comprised of gains or losses from foreign exchange translation.

(2)For the fiscal year ended March 31, 2024, Other includes the impact of the change in accounting principle relating to the recognition and measurement of TDRs, which was adopted on April 1, 2023. The total impact across all segments was negative of ¥18,869 million.

(3)For the fiscal year ended March 31, 2024, the Krungsri and Other segments include the initial allowance for credit losses for the loans purchased with credit deterioration of ¥20,134 million and ¥2,097 million, respectively.

(4)For the fiscal year ended March 31, 2026, the Krungsri segment includes the initial allowance for credit losses for the loans purchased with credit deterioration of ¥14,067 million.

Nonperforming loans were actively disposed of by sales during recent years. The allocated allowance for credit losses for such loans was removed from the allowance for credit losses and transferred to the valuation allowance for loans held for sale upon a decision to sell. Net charge-offs in the above table include a decrease from charge-offs in the allowance for credit losses amounting to ¥15.7 billion, ¥48.4 billion and ¥30.3 billion for the fiscal years ended March 31, 2024, 2025 and 2026, respectively, due to loan disposal activity.

The MUFG Group sold ¥2,788 billion, ¥3,778 billion and ¥4,042 billion of loans within the Commercial segment during the fiscal years ended March 31, 2024, 2025 and 2026, respectively.

Collateral Dependent Loans

The MUFG Group uses, as a practical expedient, the fair value of the collateral when recording the net carrying amounts of loans and determining the allowance for credit losses of such loans, for which the repayment is expected to be provided substantially through the operation or sale of the collateral, when the borrower is experiencing financial difficulty based on the assessment as of the reporting date.

For the Commercial, Krungsri and Other segments, collateral relating to these loans is comprised primarily of real estate, and to a lesser extent, exchange traded equity securities and deposits etc. For the Residential segment, collateral on these loans was mainly real estate.

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Loans Purchased with Credit Deterioration

The following table sets forth the reconciliation of the difference between the purchase price and the principal balance regarding loans acquired with credit deterioration, in connection with corporate acquisitions during the fiscal year ended March 31, 2026.


	2026
	(in millions)
Purchase price	¥	136,121
Allowance for credit losses at acquisition	14,067
Non-credit discount	(2,721)
Principal balance	147,467

5. PREMISES AND EQUIPMENT

Premises and equipment at March 31, 2025 and 2026 consisted of the following:


	2025		2026
	(in millions)
Land	¥	406,470	¥	512,220
Buildings	794,868		848,904
Equipment and furniture	561,926		595,226
Leasehold improvements	284,171		306,522
Construction in progress	34,007		46,896
Total	2,081,442		2,309,768
Less accumulated depreciation	1,161,588		1,224,911
Premises and equipment-net	¥	919,854	¥	1,084,857

For the fiscal years ended March 31, 2024, 2025 and 2026, the MUFG Group recognized ¥3,159 million, ¥14,695 million and ¥4,709 million, respectively, of impairment losses for long-lived assets, primarily real estate which was either formerly used for its banking operations and is no longer used or real estate that is being used where recovery of the carrying amount is doubtful. In addition, ¥5,468 million, ¥363 million and ¥7 million of impairment losses were recognized for real estate held for sale for the fiscal years ended March 31, 2024, 2025 and 2026, respectively. These losses are included in Other non-interest expenses. In computing the amount of impairment losses, fair value was determined primarily based on market prices, if available, or the estimated price based on an appraisal.

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6. GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

The table below presents the movement in the carrying amount of goodwill by business segment during the fiscal years ended March 31, 2025 and 2026:


	Retail & Digital Business Group		Global Corporate & Investment Banking Business Group		Global Commercial Banking Business Group		Asset Management & Investor Services Business Group		Global Markets Business Group		Total
	(in millions)
Balance at March 31, 2024:
Goodwill	¥	15,884	¥	159,231	¥	578,139	¥	330,956	¥	2,300	¥	1,086,510
Accumulated impairment losses(1)	—		(63,568)		(481,263)		(47,921)		—		(592,752)
	15,884		95,663		96,876		283,035		2,300		493,758
Goodwill acquired during the fiscal year(2)	63,730		—		—		149,782		—		213,512
Impairment loss	—		—		(32,388)		(117,701)		—		(150,089)
Foreign currency translation adjustments and other	—		(253)		(977)		2,213		—		983
Balance at March 31, 2025:
Goodwill	79,614		158,978		577,162		482,951		2,300		1,301,005
Accumulated impairment losses	—		(63,568)		(513,651)		(165,622)		—		(742,841)
	¥	79,614	¥	95,410	¥	63,511	¥	317,329	¥	2,300	¥	558,164
Goodwill acquired during the fiscal year(2)	20,117		—		62,836		—		—		82,953
Impairment loss	(5,149)		—		—		(92,326)		—		(97,475)
Foreign currency translation adjustments and other	—		3,915		5,664		13,315		—		22,894
Balance at March 31, 2026:
Goodwill	99,731		162,893		645,662		496,266		2,300		1,406,852
Accumulated impairment losses	(5,149)		(63,568)		(513,651)		(257,948)		—		(840,316)
	¥	94,582	¥	99,325	¥	132,011	¥	238,318	¥	2,300	¥	566,536

Notes:

(1)Effective April 1, 2018, the MUFG Group reorganized its business groups. Goodwill originally recognized for Retail Banking Business Group, Corporate Banking Business Group, Trust Assets Business Group and Global Business Group other than MUAH and Krungsri was ¥1,900,019 million, which has been fully impaired before April 1, 2017. As these impairment losses recorded in past before the reorganization of the segment and are irrelevant to the annual impairment test under the new segment, the accumulated impaired loss is not allocated to new business segments after the reorganization of business group.

(2)Goodwill acquired during the fiscal years ended March 31, 2025 and 2026, mainly relate to the acquisitions described in Note 2.

U.S. GAAP requires to test goodwill for impairment at least annually, or more frequently if events or changes in circumstances indicate that goodwill may be impaired, using a process that compares the carrying amount of a reporting unit with its fair value. An impairment loss is recognized to the extent that the carrying amount of a reporting unit exceeds its fair value, but not exceeding the total amount of goodwill allocated to that reporting unit.

For the fiscal year ended March 31, 2025, the MUFG Group recognized ¥109,933 million of impairment of goodwill relating to the First Sentier Investors reporting unit, which was renamed the First Sentier Group reporting unit, within the Asset Management & Investor Services Business Group segment. Due largely to market volatility and a decline in the equity markets, the portfolio balance of assets under management across a number of strategies decreased, which resulted in a decrease in the reporting unit’s cash flow

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projections, and the discount rate increased. As a result, the fair value of the reporting unit was measured on December 31, 2024, for the quantitative goodwill impairment test, and led to an impairment of goodwill as the fair value had fallen below the carrying amount of the reporting unit. The income approach estimates the fair value of the reporting unit by discounting management’s projections of the reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final year of projected results, using a discount rate derived from the capital asset pricing model.

For the fiscal year ended March 31, 2025, the MUFG Group recognized ¥32,388 million of impairment of goodwill relating to the Mandala Multifinance reporting unit within the Global Commercial Banking Business Group segment. Due largely to the weak auto markets in Indonesia, two-wheeler retail sales showed slow growth during the fiscal year ended March 31, 2025, which resulted in a decrease in the reporting unit’s cash flow projections. As a result, the fair value of the reporting unit was measured on December 31, 2024 for the quantitative goodwill impairment test, and led to an impairment of goodwill as the fair value had fallen below the carrying amount of the reporting unit. The income approach estimates the fair value of the reporting unit by discounting management’s projections of the reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final year of projected results, using a discount rate derived from the capital asset pricing model.

For the fiscal year ended March 31, 2026, the MUFG Group recognized ¥38,636 million of impairment of goodwill relating to the MUFG Pension & Market Services reporting unit within the Asset Management & Investor Services Business Group segment. Due largely to the loss of a significant client and the decline in corporate activities in the capital market, the reporting unit’s cash flow projections have decreased. As a result, the fair value of the reporting unit was measured on June 30, 2025, for the quantitative goodwill impairment test, and led to an impairment of goodwill as the fair value had fallen below the carrying amount of the reporting unit. The income approach estimates the fair value of the reporting unit by discounting management’s projections of the reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final year of projected results, using a discount rate derived from the capital asset pricing model.

For the fiscal year ended March 31, 2026, the MUFG Group recognized ¥53,690 million of impairment of goodwill relating to the First Sentier Group reporting unit within the Asset Management & Investor Services Business Group segment. The reporting unit’s cash flow projections decreased and the discount rate increased, primarily due to lower projected revenues and profitability of AlbaCore Capital Group, reflecting the timing of new fund launches and increased upfront investments in new business strategies prior to revenue generation from those new funds. As a result, the fair value of the reporting unit was measured on December 31, 2025, for the quantitative goodwill impairment test, and led to an impairment of goodwill as the fair value had fallen below the carrying amount of the reporting unit. The income approach estimates the fair value of the reporting unit by discounting management’s projections of the reporting unit’s cash flows, including a terminal value to estimate the fair value of cash flows beyond the final year of projected results, using a discount rate derived from the capital asset pricing model.

Other Intangible Assets

The table below presents the gross carrying amount, accumulated amortization and net carrying amount, in total and by major class of other intangible assets at March 31, 2025 and 2026:

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	2025						2026
	Gross carrying amount		Accumulated amortization		Net carrying amount		Gross carrying amount		Accumulated amortization		Net carrying amount
	(in millions)
Intangible assets subject to amortization:
Software	¥	4,093,320	¥	3,081,494	¥	1,011,826	¥	4,427,757	¥	3,342,584	¥	1,085,173
Customer relationships	632,016		335,898		296,118		623,399		336,393		287,006
Core deposit intangibles	138,203		102,052		36,151		132,465		108,418		24,047
Trade names	87,183		50,871		36,312		61,729		26,917		34,812
Other	23,702		9,821		13,881		32,422		11,305		21,117
Total	¥	4,974,424	¥	3,580,136	1,394,288		¥	5,277,772	¥	3,825,617	1,452,155
Intangible assets not subject to amortization:
Indefinite-lived trade names					—						14,050
Other					8,227						8,813
Total					¥	1,402,515					¥	1,475,018

Intangible assets subject to amortization acquired during the fiscal year ended March 31, 2025, amounted to ¥403,938 million, which primarily consisted of ¥335,848 million of software and ¥68,010 million of customer relationships. The weighted average amortization periods for these assets are 6 years and 16 years, respectively. There is no significant residual value estimated for these assets. Intangible assets not subject to amortization acquired during the fiscal year ended March 31, 2025, amounted to ¥46 million.

Intangible assets subject to amortization acquired during the fiscal year ended March 31, 2026, amounted to ¥370,047 million, which primarily consisted of ¥348,912 million of software and ¥20,988 million of customer relationships. The weighted average amortization periods for these assets are 6 years and 16 years, respectively. There is no significant residual value estimated for these assets. Intangible assets not subject to amortization acquired during the fiscal year ended March 31, 2026, amounted to ¥14,372 million.

For the fiscal years ended March 31, 2024, 2025 and 2026, the MUFG Group recognized ¥15,042 million, ¥14,353 million and ¥8,417 million, respectively, of impairment losses for intangible assets whose carrying amounts exceeded their fair value. In computing the amount of impairment losses, fair value was determined primarily based on the present value of expected future cash flows, the estimated value based on appraisals, or market prices.

The estimated aggregate amortization expense for intangible assets for the next five fiscal years is as follows:


	(in millions)
Fiscal year ending March 31:
2027	¥	333,916
2028	292,840
2029	240,388
2030	190,182
2031	141,562

7. LEASE TRANSACTIONS

Lease transactions as a lessee

Right-of-use assets of finance leases, which are principally related to data processing equipment and included in Premises and equipment in the accompanying consolidated balance sheets, amounted to ¥21,035 million and ¥23,137 million at March 31, 2025 and 2026, respectively. Lease liabilities of these finance leases, which are included in Long-term debt in the accompanying consolidated balance sheets, amounted to ¥21,460 million and ¥26,088 million at March 31, 2025 and 2026, respectively.

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Right-of-use assets of operating leases, which are principally related to office space and equipment are included in Other assets in the accompanying consolidated balance sheets, amounted to ¥247,221 million and ¥282,736 million at March 31, 2025 and 2026, respectively. Lease liabilities of these operating leases, which are included in Other liabilities in the accompanying consolidated balance sheets, amounted to ¥341,499 million and ¥370,365 million at March 31, 2025 and 2026, respectively.

For the fiscal years ended March 31, 2025 and 2026, the MUFG Group recognized ¥19,520 million and ¥15,968 million, respectively, of impairment losses for Right-of-use assets of operating leases, where recovery of the carrying amount is doubtful. The losses are included in Other non-interest expenses.

The discount rates used in determining the present value of leases are the MUFG Group’s incremental borrowing rate, developed based upon each lease’s term and currency of payment. The lease term includes options to extend the lease when it is reasonably certain that the MUFG Group will exercise that option. The MUFG Group has elected to exclude leases with original terms of less than one year from the operating lease right-of-use assets and lease liabilities. The MUFG Group’s lease arrangements that have not yet commenced as of March 31, 2026 are not material. Variable lease costs did not have a material impact on the MUFG Group’s results of operations.

The following table presents profit or loss of lease transactions as a lessee for the fiscal years ended March 31, 2024, 2025 and 2026:


	2024		2025		2026
	(in millions)
Finance lease cost:
Amortization of right-of-use assets	¥	6,352	¥	6,277	¥	5,509
Interest on lease liabilities	341		373		304
Operating lease cost	65,719		67,281		74,065

The following table presents information of lease transactions as a lessee for the fiscal years ended March 31, 2025 and 2026:


	2025			2026
	(in millions, except years and percentages)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	¥	372		¥	305
Operating cash flows from operating leases	89,159			91,236
Financing cash flows from finance leases	9,240			8,349
Right-of-use assets obtained in exchange for new finance lease liabilities	4,657			12,115
Right-of-use assets obtained in exchange for new operating lease liabilities	40,608			74,817
Weighted-average remaining lease term:
Finance leases	3.5 years			3.6 years
Operating leases	6.8 years			6.5 years
Weighted-average discount rate:
Finance leases	1.26		%	1.19		%
Operating leases	1.93		%	2.36		%

Maturities of lease liabilities as of March 31, 2026 are as follows:

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	Finance leases		Operating leases
	(in millions)
2027	¥	8,672	¥	91,812
2028	7,311		79,875
2029	5,087		59,388
2030	3,093		42,233
2031	1,981		32,294
2032 and thereafter	354		95,954
Total undiscounted cash flows	26,498		401,556
Difference between undiscounted and discounted cash flows	(410)		(31,191)
Amount on balance sheet	¥	26,088	¥	370,365

Lease transactions as a lessor

As part of its financing activities, the MUFG Group enters into leasing arrangements with customers. The MUFG Group’s leasing operations are conducted through leasing subsidiaries and consist principally of various types of data processing equipment, office equipment and transportation equipment. Sales type and direct financing lease are presented in loans. In certain case, the MUFG Group requests lessees to deposit in advance an amount nearly equal or equal to the residual value of leased assets.

The following table presents profit or loss of lease transactions as a lessor for the fiscal years ended March 31, 2024, 2025 and 2026:


	2024		2025		2026
	(in millions)
Sales type and direct financing leases:
Finance income on net investment	¥	145,433	¥	147,667	¥	152,658
Operating leases:
Lease income	8,546		10,780		12,375
Total	¥	153,979	¥	158,447	¥	165,033

Finance income on net investment is included in Interest income—Loans, including fees in the consolidated statements of income. Lease income from operating lease transactions is included in Other non-interest income in the consolidated statements of income.

The following table presents the components of sales type and direct financing leases transactions as of March 31, 2025 and 2026:


	2025		2026
	(in millions)
Lease receivables (undiscounted)	¥	2,202,205	¥	2,440,023
Adjustments:
Discounted unguaranteed residual value	7,772		7,509
Initial direct cost on sales type and direct financing leases	32,822		29,949
Deferred selling profit	(366,108)		(380,677)
Net investment in sales type and direct financing leases	¥	1,876,691	¥	2,096,804

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The following table presents maturity of the lease receivables of sales type and direct financing lease transactions including a reconciliation of undiscounted cash flows to the lease receivables recognized on balance sheet, and the lease payments of operating lease transactions as of March 31, 2026:


	Lease receivables of sales type and direct financing lease		Lease payments of operating leases
	(in millions)
2027	¥	672,206	¥	14,386
2028	560,711		12,477
2029	462,607		10,879
2030	323,265		7,593
2031	227,376		6,359
2032 and thereafter	193,858		88,980
Total undiscounted cash flows	2,440,023		140,674
Difference between undiscounted cash flows and the lease receivables recognized on balance sheet	(343,219)
Amount on balance sheet	¥	2,096,804

The carrying amounts of the underlying assets under operating leases as of March 31, 2025 and 2026 were ¥142,964 million and ¥280,099 million, respectively.

8. INCOME TAXES

From the fiscal year beginning April 1, 2025, the MUFG Group adopted new guidance on income tax disclosures under the prospective approach. This guidance introduced new disclosure requirements, including a breakdown of income tax expense from continuing operations by national, state, and foreign, as well as information about income taxes paid, and modified the disclosure requirements on the reconciliation to the effective tax rate.

Income before Income Tax Expense

Income before income tax expense by jurisdiction for the fiscal years ended March 31, 2024, 2025 and 2026 was as follows:


	2024		2025		2026
	(in millions)
Domestic income (loss)	¥	611,036	¥	(407,567)	¥	411,564
Foreign income	1,267,190		2,203,143		2,097,931
Total	¥	1,878,226	¥	1,795,576	¥	2,509,495

Income Tax Expense

The detail of current and deferred income tax expense for the fiscal years ended March 31, 2024 and 2025 was as follows:

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	2024		2025
	(in millions)
Current:
Domestic	¥	106,951	¥	118,433
Foreign	302,494		241,724
Total	409,445		360,157
Deferred:
Domestic	87,990		103,533
Foreign	3,222		64,248
Total	91,212		167,781
Income tax expense	500,657		527,938
Income tax expense (benefit) reported in Accumulated OCI relating to:
Investment securities	33,327		(46,184)
Debt valuation adjustments	(19,707)		4,941
Derivatives qualifying for cash flow hedges	(120)		(436)
Defined benefit plans	170,191		32,952
Foreign currency translation adjustments	155,814		(11,455)
Total	339,505		(20,182)
Total	¥	840,162	¥	507,756

On March 31, 2025, the Japanese Diet enacted the tax related law, “Special Measures Law for Securing Defense Funding.” As a result, starting from fiscal years beginning on or after April 1, 2026, a 4.0% surcharge will be added to the corporate tax rate. This surcharge is based on the corporate tax rate of 23.2% and entails an approximately 0.9% increase in the combined normal effective statutory tax rate from 30.6% to 31.5%. The change in tax laws resulted in an increase of ¥20,982 million in income tax expense for the fiscal year ended March 31, 2025.

The detail of current and deferred income tax expense for the fiscal year ended March 31, 2026 was as follows:

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	2026
	(in millions)
Current:
Domestic
National statutory income tax expense	¥	393,143
Local income tax expense	107,730
Foreign	320,027
Total	820,900
Deferred:
Domestic
National statutory income tax expense	(149,785)
Local income tax expense	(4,857)
Foreign	(40,667)
Total	(195,309)
Income tax expense (benefit)	625,591
Income tax expense (benefit) reported in Accumulated OCI relating to:
Investment securities	13,290
Debt valuation adjustments	1,290
Derivatives qualifying for cash flow hedges	(2,872)
Defined benefit plans	99,102
Foreign currency translation adjustments	98,302
Total	209,112
Total	¥	834,703

Prior to the fiscal year ended March 31, 2023, the MUFG Group filed tax returns on a consolidated basis for national statutory income taxes within Japan, and from the beginning of fiscal year ended March 31, 2023, the MUFG Group applied the Group Tax Sharing System, where the calculation of taxable income or loss is still made based upon the combined profits or losses of the parent company and its wholly-owned domestic subsidiaries, but the tax payments are made by each of these companies.

Income Taxes Paid (net of refunds)

The detail of income taxes paid for the fiscal year ended March 31, 2026 was as follows:


	2026
	(in millions)
National statutory income tax	¥	105,850
Local income tax	23,914
Foreign tax	300,145
Total	¥	429,909

Income tax paid exceeded 5 percent of total income taxes paid in the following jurisdictions:

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	2026
	(in millions)
Foreign
Indonesia	¥	32,112
Thailand	39,266
United Kingdom of Great Britain and Northern Ireland	31,074
United States of America	¥	69,563

Reconciliation of Effective Income Tax Rate

Income taxes in Japan applicable to the MUFG Group are imposed by the national, prefectural and municipal governments, and in the aggregate resulted in a normal effective statutory rate of approximately 30.6% and 30.6% for the fiscal years ended March 31, 2024 and 2025, respectively. Foreign subsidiaries are subject to income taxes of the countries in which they operate.

A reconciliation of the effective income tax rates reflected in the accompanying consolidated statements of income to the combined normal effective statutory tax rates for the fiscal years ended March 31, 2024, and 2025 was as follows:


	2024		2025
Combined normal effective statutory tax rate	30.6	%	30.6	%
Nondeductible expenses	0.4		0.4
Impairment of goodwill	—		2.4
Foreign tax credit and payments	0.9		0.2
Lower tax rates applicable to income of subsidiaries	(1.5)		(2.5)
Change in valuation allowance	(1.4)		0.3
Nontaxable dividends received	(4.1)		(5.3)
Undistributed earnings of subsidiaries	0.9		1.8
Tax and interest expense for uncertainty in income taxes	—		1.7
Tax penalty and tax refund	—		(2.9)		(1)
Noncontrolling interest income	0.6		0.1
Effect of changes in tax laws	—		1.2
Expiration of loss carryforward	0.1		1.4
Other—net	0.2		0.0
Effective income tax rate	26.7	%	29.4	%

Note:

(1)For the fiscal year ended March 31, 2025, MUAH recognized a tax benefit of ¥52,129 million related to the amendment of the California state tax return, resulting in a 2.9 percentage points decrease in the effective tax rate.

A reconciliation of the effective income tax rates reflected in the accompanying consolidated statements of income to the national statutory corporate tax rate for the fiscal year ended March 31, 2026 was as follows:

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	2026
	(amount)		(percent)
	(in millions, except percentages)
National statutory corporate tax rate	¥	618,841	24.7	%
Prefectural. and municipal tax, net of national income tax effect(1)	102,873		4.1
Foreign tax effects	(10,489)		(0.4)
Effect of changes in tax laws	(12,876)		(0.5)
Change in valuation allowances	(20,757)		(0.8)
Changes in unrecognized tax benefits	147		0.0
Effect of cross-border tax laws
Foreign branch tax rate difference	21,110		0.8
Other(2)	22,723		0.9
Tax credits	(4,337)		(0.2)
Nontaxable income
Nontaxable dividends received	(82,603)		(3.3)
Other	(96)		0.0
Nondeductible expenses
Impairment of goodwill	1,270		0.1
Other	(1,337)		(0.1)
Tax penalty and tax refund	17		0.0
Expiration of loss carryforward	13,065		0.5
Undistributed earnings of subsidiaries	4,362		0.2
Other-net	(26,322)		(1.1)
Effective income tax rate	¥	625,591	24.9	%

Notes:

(2)This category includes the income tax effect of Pillar Two top-up tax and the Japan tax effect of foreign branches.

Deferred Tax Assets and Liabilities

Deferred tax assets and liabilities are computed for each tax jurisdiction using currently enacted tax rates applicable to periods when the temporary differences are expected to reverse. The tax effects of the items comprising the MUFG Group’s net deferred tax assets at March 31, 2025 and 2026 were as follows:


	2025		2026
	(in millions)
Deferred tax assets:
Allowance for credit losses	¥	390,614	¥	392,077
Operating loss carryforwards	86,747		72,964
Accrued liabilities and other	328,371		424,866
Premises and equipment	113,572		106,131
Derivative financial instruments	649,519		984,938
Obligations under operating leases	89,790		97,589
Valuation allowance	(122,241)		(117,183)
Total deferred tax assets	¥	1,536,372	¥	1,961,382

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	2025		2026
	(in millions)
Deferred tax liabilities:
Investment securities (including trading account assets at fair value under the fair value option)	642,105		748,676
Loans	3,466		4,333
Intangible assets	87,064		87,980
Lease transactions	16,866		15,002
Defined benefit plans	270,634		376,848
Investments in subsidiaries and affiliates	1,002,424		1,295,676
Right-of-use assets of operating leases	64,074		74,945
Other	81,284		—
Total deferred tax liabilities	2,167,917		2,603,460
Net deferred tax liabilities	¥	(631,545)	¥	(642,078)

The valuation allowance was provided primarily against deferred tax assets recorded at MUFG and its subsidiaries with operating loss carryforwards. The valuation allowance is determined to reduce the measurement of deferred tax assets not expected to be realized. Management considers all available evidence, both positive and negative, to determine whether the valuation allowance is necessary based on the weight of that evidence. Management determines the amount of the valuation allowance based on future reversals of existing taxable temporary differences and future taxable income exclusive of reversing temporary differences. Future taxable income is developed from forecasted operating results, based on recent historical trends and approved business plans, the eligible carryforward periods and other relevant factors.

For certain subsidiaries where strong negative evidence exists, such as the existence of significant amounts of operating loss carryforwards, cumulative losses and the expiration of unused operating loss carryforwards in recent years, a valuation allowance was recognized against the deferred tax assets as of March 31, 2025 and 2026 to the extent that it is more likely than not that they will not be realized.

Income taxes are not provided on undistributed earnings of certain foreign subsidiaries that are considered to be indefinitely reinvested in the operations of such subsidiaries. At March 31, 2025, the undistributed earnings of such foreign subsidiaries amounted to approximately ¥130,790 million. Determination of the amount of unrecognized deferred tax liabilities with respect to these undistributed earnings is not practicable because of the complexity associated with its hypothetical calculation including foreign withholding taxes and foreign tax credits. MUFG has neither the plan nor the intention to dispose of investments in such foreign subsidiaries and, accordingly, does not expect to record capital gains or losses, or otherwise monetize the undistributed earnings of such foreign subsidiaries.

Furthermore, under the Japanese tax law, 95% of a dividend received from a foreign company in which a domestic company has held generally at least 25% of the outstanding shares for a continuous period of six months or more ending on the date on which the dividend is declared can be excluded from the domestic company’s taxable income. Therefore, if undistributed earnings of certain foreign subsidiaries are repatriated through dividends, only 5% of the amount of dividends will be included in taxable income.

Operating Loss and Tax Credit Carryforwards

At March 31, 2026, the MUFG Group had operating loss carryforwards for corporate tax of ¥131,039 million and tax credit carryforwards of ¥6,375 million for tax purposes. Such carryforwards, if not utilized, are scheduled to expire as follows:

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	Operating loss carryforwards		Tax credit carryforwards
	(in millions)
Fiscal year ending March 31:
2027	¥	417	¥	475
2028	1,286		331
2029	10,544		173
2030	41,168		377
2031	15,151		199
2032	1,339		281
2033 and thereafter	6,979		2,646
No definite expiration date	54,155		1,893
Total	¥	131,039	¥	6,375

Uncertainty in Income Tax

The following is a roll-forward of the MUFG Group’s unrecognized tax benefits for the fiscal years ended March 31, 2024, 2025 and 2026:


	2024		2025		2026
	(in millions)
Balance at beginning of fiscal year	¥	25,400	¥	10,521	¥	50,780
Gross amount of increases for current year’s tax positions	32		—		—
Gross amount of increases for prior years’ tax positions	—		40,882		33
Gross amount of decreases for prior years’ tax positions	(16,719)		(23)		—
Net amount of changes relating to settlements with tax authorities	—		(2,258)		—
Decreases due to lapse of applicable statutes of limitations	—		(772)		—
Foreign exchange translation and other	1,808		2,430		(267)
Balance at end of fiscal year	¥	10,521	¥	50,780	¥	50,546

The MUFG Group classifies interest and penalties, if applicable, related to income taxes as Income tax expense. Accrued interest and penalties (not included in the “unrecognized tax benefits” above) are a component of Other liabilities. The following is a roll-forward of the interest and penalties recognized in the accompanying consolidated financial statements for the fiscal years ended March 31, 2024, 2025 and 2026:


	2024		2025		2026
	(in millions)
Balance at beginning of fiscal year	¥	2,167	¥	1,260	¥	305
Total interest and penalties in the consolidated statements of income	(1,218)		(1,770)		(52)
Total cash settlements, foreign exchange translation and other	311		815		334
Balance at end of fiscal year	¥	1,260	¥	305	¥	587

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The MUFG Group is subject to ongoing tax examinations by the tax authorities of the various jurisdictions in which it operates. The following are the major tax jurisdictions in which the MUFG Group operates and the status of years under audit or open to examination:


Jurisdiction			Tax years
Japan			2025 and forward
United States—Federal			2017 and forward
United States—California			2017 and forward
Indonesia			2020 and forward

The MUFG Group is currently under continuous examinations by the tax authorities in various domestic and foreign jurisdictions and many of these examinations are resolved every year. The unrecognized tax benefits will decrease since resolved items will be removed from the balance regardless of whether their resolution results in payment or recognition.

9. PLEDGED ASSETS AND COLLATERAL

Pledged Assets

At March 31, 2026, assets mortgaged, pledged, or otherwise subject to lien were as follows:


	2026
	(in millions)
Trading account securities	¥	14,349,756
Investment securities	10,018,070
Loans	6,121,133
Other	28,573
Total	¥	30,517,532

The above pledged assets were classified by type of liabilities to which they related as follows:


	2026
	(in millions)
Deposits	¥	14,945
Call money and funds purchased	192,766
Payables under repurchase agreements and securities lending transactions	22,401,173
Other short-term borrowings and long-term debt	6,366,970
Other	1,541,678
Total	¥	30,517,532

At March 31, 2026, certain investment securities, principally Japanese national government and Japanese government agency bonds, loans, and other assets with a combined carrying value of ¥29,280,388 million were pledged for acting as a collection agent of public funds, for settlement of exchange at the Bank of Japan and Japanese Banks’ Payment Clearing Network, for derivative transactions , for securities financing transactions and for certain other purposes.

The MUFG Group engages in on-balance sheet securitizations. These securitizations of mortgage and apartment loans, which do not qualify for sales treatment, are accounted for as secured borrowings. The amount of loans in the table above represents the carrying amount of these transactions with the carrying amount of the associated liabilities included in Other short-term borrowings and Long-term debt.

Under Japanese law, Japanese banks are required to maintain certain reserves on deposit with the Bank of Japan based on the amount of deposit balances and certain other factors. There are similar reserve deposit requirements for foreign offices and

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subsidiaries engaged in banking businesses in foreign countries. At March 31, 2025 and 2026, the reserve funds required to be maintained by the MUFG Group, which are included in Cash and due from banks and Interest-earning deposits in other banks, were ¥2,962,933 million and ¥3,128,833 million, respectively.

Collateral

The MUFG Group accepts and provides financial assets as collateral for transactions, principally commercial loans, repurchase agreements and securities lending transactions, call money, and derivatives. Financial assets eligible for such collateral include, among others, marketable equity securities, trade and notes receivable and certificates of deposit (“CDs”).

Secured parties, including creditors and counterparties to certain transactions with the MUFG Group, may sell or repledge financial assets provided as collateral. Certain contracts, however, may not be specific about the secured party’s right to sell or repledge collateral under the applicable statutes and, therefore, whether or not the secured party is permitted to sell or repledge collateral would differ depending on the interpretations of specific provisions of the existing statutes, contract or certain market practices.

If the MUFG Group determines, based on available information, that a financial asset provided as collateral might not be sold or repledged by the secured parties, such collateral is not separately reported in the accompanying consolidated balance sheets. If a secured party is permitted to sell or repledge financial assets provided as collateral by contract or custom under the existing statutes, the MUFG Group reports such pledged financial assets separately on the face of the accompanying consolidated balance sheets. At March 31, 2026, the MUFG Group pledged ¥28,981 billion of assets that may not be sold or repledged by the secured parties.

Certain banking subsidiaries accept collateral for commercial loans and certain banking transactions under a standardized agreement with customers, which provides that these banking subsidiaries may require the customers to provide collateral or guarantees with respect to the loans and other banking transactions. Financial assets pledged as collateral are generally negotiable and transferable instruments, and such negotiability and transferability are authorized by applicable legislation. In principle, Japanese legislation permits these banking subsidiaries to repledge financial assets accepted as collateral unless otherwise prohibited by contract or relevant statutes. Nevertheless, the MUFG Group did not sell or repledge nor does it plan to sell or repledge such collateral accepted in connection with commercial loans before a debtor’s default or other credit events specified in the agreements as it is not customary within the banking industry in Japan to dispose of collateral before a debtor’s default and other specified credit events. Derivative agreements commonly used in the marketplace do not prohibit a secured party’s disposition of financial assets received as collateral, and in resale agreements and securities borrowing transactions, securities accepted as collateral may be sold or repledged by the secured parties. At March 31, 2025 and 2026, the fair value of the collateral accepted by the MUFG Group that is permitted to be sold or repledged was ¥41,438 billion and ¥41,810 billion, respectively, of which ¥29,714 billion and ¥28,675 billion, respectively, was sold or repledged.

At March 31, 2025 and 2026, the cash collateral pledged for derivative transactions, which is included in Other assets, was ¥2,566,588 million and ¥4,261,209 million, respectively, and the cash collateral received for derivative transactions, which is included in Other liabilities, was ¥1,415,939 million and ¥1,417,988 million, respectively.

10. DEPOSITS

At March 31, 2025 and 2026, the aggregate amount of time deposit accounts (including CDs) in denominations that meet or exceed the insured limit were ¥69,396,042 million and ¥76,858,340 million, respectively. These time deposits included domestic time deposits in denominations that meet or exceed the limit stipulated by the Deposit Insurance Act in Japan, which is ¥10 million, and foreign time deposits in denominations that meet or exceed any country-specific insurance fund limit.

The maturity information at March 31, 2026 for domestic and foreign time deposits, including CDs, is summarized as follows:

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	Domestic		Foreign
	(in millions)
Due in one year or less	¥	37,037,913	¥	40,424,172
Due after one year through two years	3,730,654		514,655
Due after two years through three years	2,107,465		141,238
Due after three years through four years	625,553		25,356
Due after four years through five years	602,508		15,860
Due after five years	859,518		16,492
Total	¥	44,963,611	¥	41,137,773

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11. CALL MONEY AND FUNDS PURCHASED

A summary of funds transactions for the fiscal years ended March 31, 2025 and 2026 is as follows:


	2025			2026
	(in millions, except percentages and days)
Outstanding at end of fiscal year:
Amount	¥	5,016,678		¥	5,257,237
Principal range of maturities	1 day to 30 days			1 day to 30 days
Weighted average interest rate	0.63		%	0.81		%

12. DUE TO TRUST ACCOUNT, SHORT-TERM BORROWINGS AND LONG-TERM DEBT

Mitsubishi UFJ Trust and Banking holds assets on behalf of its customers in an agent, fiduciary or trust capacity. Such trust account assets are not the MUFG Group’s proprietary assets and are managed and accounted for separately.

However, excess cash funds of individual trust accounts are often placed with Mitsubishi UFJ Trust and Banking which manages the funds together with its own funds in its proprietary account. Due to trust account reflects a temporary placement of the excess funds from individual trust accounts and, in view of the MUFG Group’s funding, due to trust account is similar to short-term funding, including demand deposits and other overnight funds purchased. The balance changes in response to the day-to-day changes in the excess funds placed by the trust accounts. A summary of due to trust account transactions at March 31, 2025 and 2026 is as follows:


	2025			2026
	(in millions, except percentages)
Amount outstanding at end of fiscal year	¥	3,762,641		¥	1,776,344
Weighted average interest rate on outstanding balance at end of fiscal year	0.10		%	0.26		%

At March 31, 2025 and 2026, the MUFG Group had unused lines of credit for financing amounting to ¥3,439,902 million and ¥8,111,352 million, respectively. The amounts principally consist of pooled collateral which are used to cover shortages in the Bank of Japan account and Federal Reserve Bank of New York accounts, and to meet liquidity needs. The MUFG Group may borrow from the Bank of Japan and Federal Reserve Bank of New York on demand up to the total amount of collateral eligible for credit extension.

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Other short-term borrowings at March 31, 2025 and 2026 were comprised of the following:


	2025			2026
	(in millions, except percentages)
Domestic offices:
Commercial paper	¥	1,527,544		¥	1,238,148
Borrowings from the Bank of Japan	14,995,160			2,782,800
Borrowings from other financial institutions	175,267			258,726
Other(1)	997,078			675,219
Total domestic offices	17,695,049			4,954,893
Foreign offices:
Commercial paper	6,707,574			7,445,830
Borrowings from other financial institutions	219,134			455,976
Other	15,169			3,212
Total foreign offices	6,941,877			7,905,018
Total	24,636,926			12,859,911
Less unamortized discount	—			1
Other short-term borrowings—net	¥	24,636,926		¥	12,859,910
Weighted average interest rate on outstanding balance at end of fiscal year	1.58		%	2.30		%

Note:

(1)Includes borrowings from the jointly operated designated money in trusts.

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Long-term debt (with original maturities of more than one year) at March 31, 2025 and 2026 was comprised of the following:


	2025		2026
	(in millions)
MUFG:
Obligations under finance leases	¥	726	¥	9,096
Unsubordinated debt (1):
Fixed rate bonds, payable in US dollars, due 2026-2039, principally 1.54%-5.62%	6,419,433		7,142,220
Fixed rate bonds, payable in Euro, due 2028-2033, principally 0.85%-3.56%	278,616		306,275
Fixed rate bonds, payable in other currencies, due 2027-2029, principally 2.73%-4.05% (2)	30,561		28,424
Adjustable rate bonds, payable in Japanese yen, due 2027-2036, principally 0.25%-1.88%	280,900		245,300
Adjustable rate bonds, payable in Euro, due 2027-2036, principally 0.34%-4.64%	324,160		669,381
Adjustable rate borrowings, payable in Japanese yen, due 2029-2037, principally 0.91%-1.86%	245,000		245,000
Floating rate bonds, payable in US dollars, due 2031-2032, principally 4.69%-5.15%	44,856		294,307
Total	7,623,526		8,930,907
Subordinated debt (1):
Fixed rate bonds, payable in Japanese yen, due 2026-2035, principally 0.37%-2.39%	990,959		1,023,959
Fixed rate bonds, payable in US dollars, no stated maturity, principally 6.35%- 8.20%	116,997		280,535
Fixed rate borrowings, payable in Japanese yen, due 2026-2028, principally 0.57%-0.62%	86,000		64,000
Adjustable rate bonds, payable in Japanese yen, due 2031-2035, principally 0.35%-1.86%	1,005,655		985,791
Adjustable rate bonds, payable in Japanese yen, no stated maturity, principally 0.86%-2.77%	2,143,532		2,227,451
Adjustable rate borrowings, payable in Japanese yen, due 2032-2034, principally 0.72%-1.28%	36,000		36,000
Adjustable rate borrowings, payable in Japanese yen, no stated maturity, principally 1.03%-3.32%	233,703		297,370
Total	4,612,846		4,915,106
Total	12,237,098		13,855,109
MUFG Bank:
Obligations under finance leases	¥	4,397	¥	3,901
Unsubordinated debt (1):
Fixed rate bonds, payable in Japanese yen, due 2027 , principally 2.34%	8,300		7,800
Fixed rate bonds, payable in US dollars, due 2044-2052, principally 0.00%-4.70%	929,501		1,029,378
Fixed rate bonds, payable in Euro, due 2033, principally 1.81%	7,294		8,253
Fixed rate borrowings, payable in Japanese yen, due 2026-2030, principally 0.01%-0.75%	2,358,191		2,835,175
Fixed rate borrowings, payable in US dollars, due 2030-2038, principally 2.93%-3.87%	41,873		66,690
Adjustable rate borrowings, payable in Japanese yen, due 2025, principally 0.50%	1,442,400		—
Floating rate borrowings, payable in US dollars, due 2026-2035, principally 4.12%-4.72%	392,524		304,818
Floating rate borrowings, payable in Euro, due 2029-2036, principally 2.32%-2.66%	80,058		70,596
Floating rate borrowings, payable in other currencies, due 2031, principally 2.05% (2)	2,512		2,614
Total	5,262,653		4,325,324
Subordinated debt (1):
Fixed rate bonds, payable in Japanese yen, due 2026-2031, principally 2.21%-2.91%	175,800		113,800
Fixed rate borrowings, payable in Japanese yen, due 2025-2026, principally 1.88%-2.24%	21,500		—
Adjustable rate borrowings, payable in Japanese yen, due 2028, principally 1.89%	10,000		10,000
Floating rate borrowings, payable in Japanese yen, due 2027, principally 1.46%	15,000		15,000
Total	222,300		138,800
Obligations under loan securitization transaction accounted for as secured borrowings due 2026-2080, principally 0.25%-7.25%	291,023		273,846
Total	5,780,373		4,741,871

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	2025		2026
	(in millions)
Other subsidiaries:
Obligations under finance leases	¥16,337		¥13,091
Unsubordinated debt (1):
Fixed rate borrowings, bonds and notes, payable in Japanese yen, due 2026-2051, principally 0.15%-5.10%	977,337		966,324
Fixed rate borrowings, bonds and notes, payable in US dollars, due 2026-2036, principally 1.40%-9.47%	30,185		16,932
Fixed rate borrowings, payable in Euro, due 2030-2034, principally 0.00%-2.14%	5,122		4,302
Fixed rate borrowings, bonds and notes, payable in Thai baht, due 2026-2031, principally 0.00%-4.00%	317,394		544,334
Fixed rate borrowings, bonds and notes, payable in other currencies, due 2026-2037, principally 0.50%-10.00%(2)	425,945		484,764
Floating/Adjustable rate borrowings, bonds and notes, payable in Japanese yen, due 2026-2055, principally 0.00%-15.90%	622,569		673,653
Floating/Adjustable rate borrowings, bonds and notes, payable in US dollars, due 2026-2032, principally 4.45%-6.12%	169,131		159,728
Floating rate borrowings, payable in Thai baht, due 2026 - 2027, principally 3.00% - 3.05%	—		21,870
Floating rate borrowings, payable in other currencies, due 2026-2036, principally 4.79%-6.95% (2)	188,934		151,027
Total	2,736,617		3,022,934
Subordinated debt (1):
Fixed rate bonds and notes, payable in Japanese yen, due 2030 , principally 2.61%	30,000		10,000
Fixed rate bonds and notes, payable in US dollars, due 2027-2030, principally 7.50%-8.00%	2,049		1,234
Fixed rate bonds and notes, payable in Thai baht, due 2031-2034, principally 3.00%-4.30%	228,800		252,720
Floating rate bonds and notes, payable in US dollars, due 2028, principally 10.86%	4,777		3,830
Total	265,626		267,784
Total	3,018,580		3,303,809
Total	21,036,051		21,900,789
Debt issuance cost	¥	(13,644)	¥	(16,440)
Total	¥	21,022,407	¥	21,884,349

Notes:

(1)Adjustable rate debts are debts where interest rates are reset in accordance with the terms of the debt agreements, and floating rate debts are debts where interest rates are repriced in accordance with movements of markets indices.

(2)Minor currencies, such as the Australian dollar, Indonesian rupiah, South Korean won, etc., excluding Japanese yen, US dollars, Euro and Thai baht have been summarized into the “Other currencies” classification.

The MUFG Group uses derivative financial instruments to manage its interest rate and currency exposures for certain debts. The derivative financial instruments include swaps, forwards, options and other types of derivatives. As a result of these derivative instruments, the effective rates reflected in the table above may differ from the coupon rates. The interest rates for the adjustable and floating rate debt shown in the above table are those in effect at March 31, 2025 and 2026.

Certain debt agreements permit the MUFG Group to redeem the related debt, in whole or in part, prior to maturity at the option of the issuer on terms specified in the respective agreements.

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The following is a summary of maturities of long-term debt subsequent to March 31, 2026:


	MUFG		BK		Other subsidiaries		Total
	(in millions)
Fiscal year ending March 31:
2027	¥	492,606	¥	1,712,163	¥	805,578	¥	3,010,347
2028	1,558,437		1,079,297		448,919		3,086,653
2029	1,370,383		403,349		456,906		2,230,638
2030	767,242		150,040		126,794		1,044,076
2031	712,653		190,924		131,449		1,035,026
2032 and thereafter	8,953,788		1,206,098		1,334,163		11,494,049
Total	¥	13,855,109	¥	4,741,871	¥	3,303,809	¥	21,900,789

New Issuances of Debt for Basel III

For the fiscal year ended March 31, 2026, the MUFG Group obtained unsecured perpetual subordinated Additional Tier 1 debt financing of $1,000 million (approximately ¥159,880 million), and ¥350,000 million in the form of securities and borrowings from institutional investors in Japan. These securities and borrowings are subject to the MUFG Group’s discretion to cease interest payments and a write-down of the principal upon the occurrence of certain events, including when the MUFG Group’s Common Equity Tier 1 ratio declines below 5.125%, when the MUFG Group is deemed to be at risk of becoming non-viable or when the MUFG Group becomes subject to bankruptcy proceedings.

For the fiscal year ended March 31, 2026, the MUFG Group obtained debt financing of ¥40,000 million, $9,000 million (approximately ¥1,438,920 million), and €1,650 million (approximately ¥302,627 million) with an intent to count towards Total Loss-Absorbing Capacity (“TLAC”) from global institutional investors to meet the TLAC requirement under the standards issued by the Financial Stability Board. The MUFG Group is required to maintain External TLAC ratios of 18% on a risk-weighted assets basis and 7.10% on a leverage exposure basis.

For the fiscal year ended March 31, 2026, the MUFG Group obtained subordinated term Tier 2 debt financing of ¥172,000 million in the form of securities issuance and borrowings in Japan. The MUFG Group can be exempted from the obligation to pay principal of and interest on the securities when the MUFG Group are deemed to be at risk of becoming non-viable. According to the approach of the Financial Services Agency of Japan (“FSA”), the point of non-viability will be deemed to have been reached when the Prime Minister of Japan, following deliberation by Japan’s Financial Response Crisis Council pursuant to the Deposit Insurance Act of Japan, confirms that Specified Item 2 Measures need to be applied to MUFG under circumstances where its liabilities exceed or are likely to exceed its assets, or it has suspended or is likely to suspend payment of its obligations.

13. SEVERANCE INDEMNITIES AND PENSION PLANS

Defined Benefit Pension Plans

The MUFG Group has funded non-contributory defined benefit pension plans, which cover substantially all of its employees and mainly provide for lifetime annuity payments commencing at age 65 (“pension benefits”) based on eligible compensation at the time of severance, rank, years of service and other factors.

MUFG Bank and certain domestic subsidiaries, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Securities Holdings, Mitsubishi UFJ NICOS and some subsidiaries of MUFG have non-contributory Corporate Defined Benefit Pension plans which provide benefits to all their domestic employees.

The MUFG Group also offers qualified and nonqualified defined benefit pension plans in foreign offices and subsidiaries for their employees. The qualified plans are non-contributory defined pension plans, which provide benefits upon retirement based on years of service and average compensation and cover substantially all of the employees of such foreign offices and subsidiaries. With respect to the offices and subsidiaries in the United States of America, the qualified plans are funded on a current basis in compliance with the requirement of the Employee Retirement Income Security Act of the United States of America. The nonqualified plans are non-contributory defined benefit pension plans, under which certain employees earn pay and interest credits on compensation amounts above the maximum stipulated by applicable laws under the qualified plans.

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Severance Indemnities Plans

The MUFG Group has SIPs under which their employees in Japan, other than those who are directors, are entitled, under most circumstances, upon mandatory retirement at normal retirement age or earlier termination of employment, to lump-sum severance indemnities based on eligible compensation at the time of severance, rank, years of service and other factors. Under SIPs, benefit payments in the form of a lump-sum cash payment with no option to receive annuity payments, upon mandatory retirement at normal retirement age or earlier termination of employment, are provided. When a benefit is paid in a single payment to a benefit payee under the plans, the payment represents final relief of the obligation.

Other Postretirement Plans

The MUFG Group’s foreign offices and subsidiaries, primarily in the United States of America, provide their employees with certain postretirement medical and life insurance benefits (“other benefits”).

Net periodic cost of pension benefits and other benefits for the fiscal years ended March 31, 2024, 2025 and 2026 include the following components:


	Domestic subsidiaries						Foreign offices and subsidiaries
	2024		2025		2026		2024				2025				2026
	Pension benefits and SIP		Pension benefits and SIP		Pension benefits and SIP		Pension benefits		Other benefits		Pension benefits		Other benefits		Pension benefits		Other benefits
	(in millions)
Service cost—benefits earned during the fiscal year	¥	34,653	¥	31,728	¥	28,099	¥	13,231	¥	52	¥	14,759	¥	52	¥	13,354	¥	77
Interest cost on projected benefit obligation	20,547		23,954		30,210		8,461		1,216		8,850		1,266		9,303		1,144
Expected return on plan assets	(83,130)		(95,929)		(100,224)		(10,810)		(1,503)		(12,443)		(1,670)		(12,039)		(1,474)
Amortization of net actuarial loss (gain)	(591)		(16,821)		(30,905)		1,362		1,191		2,112		(89)		2,243		23
Amortization of prior service cost	(1,974)		(282)		147		(945)		(426)		(1,328)		(449)		(420)		(444)
Loss (gain) on settlements and curtailment	(13,659)		(13,754)		(15,807)		1,803		—		15		—		(418)		—
Other	(194)		(203)		141		3,939		6		(2,513)		(301)		—		—
Net periodic benefit cost (income)	¥	(44,348)	¥	(71,307)	¥	(88,339)	¥	17,041	¥	536	¥	9,452	¥	(1,191)	¥	12,023	¥	(674)

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The following table summarizes the assumptions used in computing the present value of the projected benefit obligations and the net periodic benefit cost:


	Domestic subsidiaries						Foreign offices and subsidiaries
	2024		2025		2026		2024				2025				2026
	Pension benefits and SIP		Pension benefits and SIP		Pension benefits and SIP		Pension benefits		Other benefits		Pension benefits		Other benefits		Pension benefits		Other benefits
Weighted-average assumptions used:
Discount rates in determining expense	1.36	%	1.70	%	2.89	%	4.74	%	4.59	%	5.06	%	5.00	%	5.17	%	4.89	%
Discount rates in determining benefit obligation	1.70		2.89		3.33		5.06		5.06		5.22		5.26		5.39		5.45
Rates of increase in future compensation level for determining expense	3.47		3.49		3.91		5.09		—		5.50		—		5.44		—
Rates of increase in future compensation level for determining benefit obligation	3.49		3.91		2.76		5.50		—		5.44		—		5.41		—
Expected rates of return on plan assets	2.97		2.89		2.91		4.98		6.25		5.93		7.00		5.80		6.50
Cash balance crediting rate for determining expense	2.46		2.46		2.53		3.72		—		4.38		—		4.59		—
Cash balance crediting rate for determining benefit obligation	2.46		2.53		3.15		4.38		—		4.59		—		4.88		—

The following table presents the assumed health care cost trend rates for foreign offices and subsidiaries, which are used to measure the expected cost of benefits for the next year:


	2025(1)		2026(1)
Initial trend rate	8.00	%	9.25	%
Ultimate trend rate	4.00	%	4.00	%
Year the rate reaches the ultimate trend rate	2035		2037

Note:

(1)Fiscal years of foreign subsidiaries end on December 31. Therefore, the above table presents the rates and amounts at December 31, 2024 and 2025, respectively.

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The following table sets forth the combined funded status and amounts recognized in the accompanying consolidated balance sheets at March 31, 2025 and 2026:


	Domestic subsidiaries						Foreign offices and subsidiaries
	2025			2026			2025				2026
	Non-contributory pension benefits and SIP			Non-contributory pension benefits and SIP			Pension benefits		Other benefits		Pension benefits		Other benefits
	(in millions)
Change in benefit obligation:
Benefit obligation at beginning of fiscal year	¥	1,448,579		¥	1,310,512		¥	198,793	¥	25,719	¥	199,316	¥	23,394
Service cost	31,728			28,099			14,759		52		13,354		77
Interest cost	23,954			30,210			8,850		1,266		9,303		1,144
Plan participants’ contributions	—			—			—		430		—		362
Acquisitions/ Divestitures	(354)			(257)			—		—		1,478		—
Amendments	—			—			(2,075)		—		—		—
Actuarial loss (gain)	(109,527)		(1)	(97,490)		(1)	(5,195)		(1,107)		2,757		(573)
Benefits paid	(65,960)			(66,015)			(7,721)		(2,555)		(9,139)		(2,439)
Lump-sum payment	(17,908)			(13,495)			(5,837)		—		(6,568)		—
Translation adjustments and other	—			—			(2,258)		(411)		9,946		1,434
Benefit obligation at end of fiscal year	1,310,512			1,191,564			199,316		23,394		220,447		23,399
Change in plan assets:
Fair value of plan assets at beginning of fiscal year	3,333,330			3,409,772			196,991		23,671		193,635		22,490
Actual return on plan assets	117,384			358,683			7,761		993		13,285		1,911
Employer contributions	25,184			25,130			2,826		228		4,653		254
Acquisitions/ Divestitures	(26)			(182)			—		—		—		—
Plan participants’ contributions	—			—			—		430		—		362
Benefits paid	(65,960)			(66,015)			(7,721)		(2,555)		(9,139)		(2,439)
Translation adjustments and other	(140)			—			(6,222)		(277)		14,528		1,563
Fair value of plan assets at end of fiscal year	¥	3,409,772		¥	3,727,388		¥	193,635	¥	22,490	¥	216,962	¥	24,141
Amounts recognized in the consolidated balance sheets:
Prepaid benefit cost	¥	2,116,823		¥	2,553,516		¥	79,809	¥	—	¥	84,712	¥	1,217
Accrued benefit cost	(17,563)			(17,691)			(85,490)		(904)		(88,197)		(475)
Net amount recognized	¥	2,099,260		¥	2,535,825		¥	(5,681)	¥	(904)	¥	(3,485)	¥	742

Note:

(1)Significant gains and losses related to changes in the benefit obligation for the fiscal years ended March 31, 2025 and 2026 primarily result from changes in the discount rate.

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The aggregated accumulated benefit obligations of these plans at March 31, 2025 and 2026 were as follows:


	Domestic subsidiaries				Foreign offices and subsidiaries
	2025		2026		2025		2026
	(in millions)
Aggregated accumulated benefit obligations	¥	1,292,334	¥	1,177,021	¥	171,906	¥	194,716

The projected benefit obligations, accumulated benefit obligations and fair value of plan assets for the plans with accumulated benefit obligations in excess of plan assets at March 31, 2025 and 2026 were as follows:


	Domestic subsidiaries				Foreign offices and subsidiaries
	2025		2026		2025		2026
	(in millions)
Projected benefit obligations	¥	21,768	¥	21,544	¥	93,518	¥	97,923
Accumulated benefit obligations	21,768		21,336		67,399		72,918
Fair value of plan assets	5,304		5,762		8,275		10,101

MUFG Bank, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Securities Holdings, Mitsubishi UFJ NICOS and other subsidiaries paid special lump-sum termination benefits which are not a part of pension plans to certain early-terminated employees. The amounts charged to operations for such early termination benefits for the fiscal years ended March 31, 2024, 2025 and 2026 were ¥19,116 million, ¥14,089 million and ¥14,326 million, respectively.

The following table presents the amounts recognized in Accumulated OCI of the MUFG Group at March 31, 2025 and 2026:


	Domestic subsidiaries				Foreign offices and subsidiaries
	2025		2026		2025				2026
	Pension benefits and SIP		Pension benefits and SIP		Pension benefits		Other benefits		Pension benefits		Other benefits
	(in millions)
Net actuarial loss (gain)	¥	(638,775)	¥	(947,771)	¥	34,990	¥	1,685	¥	31,862	¥	704
Prior service cost	807		416		(2,467)		(659)		(1,903)		(234)
Gross amount recognized in Accumulated OCI	(637,968)		(947,355)		32,523		1,026		29,959		470
Taxes	152,200		249,543		(9,134)		(281)		(7,889)		(120)
Net amount recognized in Accumulated OCI	¥	(485,768)	¥	(697,812)	¥	23,389	¥	745	¥	22,070	¥	350

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The following table presents OCI for the fiscal years ended March 31, 2025 and 2026:


	Domestic subsidiaries				Foreign offices and subsidiaries
	2025		2026		2025				2026
	Pension benefits and SIP		Pension benefits and SIP		Pension benefits		Other benefits		Pension benefits		Other benefits
	(in millions)
Net actuarial gain arising during the year	¥	(130,464)	¥	(355,708)	¥	(1,570)	¥	(490)	¥	(305)	¥	(1,011)
Prior service cost arising during the year	—		(244)		(2,188)		—		—		—
Losses (gains) due to amortization:
Net actuarial loss (gain)	16,821		30,905		(2,112)		89		(2,243)		(23)
Prior service cost	282		(147)		1,328		449		420		444
Curtailment and settlement	13,754		15,807		(15)		—		(2,875)		—
Foreign currency translation adjustments	—		—		757		(13)		2,439		34
Total changes in Accumulated OCI	¥	(99,607)	¥	(309,387)	¥	(3,800)	¥	35	¥	(2,564)	¥	(556)

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Investment policies

MUFG’s investment policy for plan assets is based on an asset liability matching strategy which is intended to maintain adequate liquidity for benefit payments and to achieve a stable increase in the plan assets in the medium and long-term through proper risk control and return maximization. As a general rule, investment policies for plan assets are reviewed periodically for some plans and in the following situations for all plans: (1) large fluctuations in pension plan liabilities caused by modifications to pension plans, or (2) changes in the market environment. The plan assets allocation strategies are the principal determinant in achieving expected investment returns on the plan assets. Actual asset allocations may fluctuate within acceptable ranges due to market value variability. Plan assets are managed by a combination of internal and external asset management companies and are rebalanced when market fluctuations cause an asset category to fall outside of its strategic asset allocation range. Performance of each plan asset category is compared against established indices and similar plan asset groups to evaluate whether the risk associated with the portfolio is appropriate for the level of return.

The weighted-average target asset allocation of plan assets for the pension benefits and other benefits at March 31, 2026 was as follows:


	Domestic subsidiaries		Foreign offices and subsidiaries
Asset category	Pension benefits and SIP		Pension benefits		Other benefits
Japanese equity securities	26.3	%	—	%	—	%
Japanese debt securities	22.5		—		—
Non-Japanese equity securities	14.2		30.2		30.0
Non-Japanese debt securities	22.1		57.4		64.0
Real estate	1.3		7.6		6.0
Short-term assets and other	13.6		4.8		—
Total	100.0	%	100.0	%	100.0	%

Basis and procedure for estimating long-term return of each asset category

MUFG’s expected long-term rate of return on plan assets for domestic defined benefit pension plans and SIPs is based on a building-block methodology, which calculates the total long-term rate of return of the plan assets by aggregating the weighted rate of return derived from both long-term historical performance and forward-looking return expectations from each asset category.

MUFG has determined the expected long-term rate of return for each asset category as follows:

•Japanese equity securities: the rate for Japanese debt securities plus a premium for the risk associated with Japanese equity securities

•Japanese debt securities: economic growth rate of Japan

•Non-Japanese equity securities: the rate for non-Japanese debt securities plus a premium for the risk associated with non-Japanese equity securities

•Non-Japanese debt securities: global economic growth rate

Foreign offices and subsidiaries periodically reconsider the expected long-term rate of return for their plan assets. They evaluate the investment return volatility of different asset categories and compare the liability structure of their pension and other benefits to those of other companies, while considering their funding policy to maintain a funded status sufficient to meet participants’ benefit obligations, and reduce long-term funding requirements and pension costs. Based on this information, foreign offices and subsidiaries update the expected long-term rate of return.

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Estimated future benefit payments

The following table presents benefit payments expected to be paid, which include the effect of expected future service for the fiscal years indicated:


	Domestic subsidiaries		Foreign offices and subsidiaries
	Pension benefits and SIP		Pension benefits		Other benefits
	(in millions)
Fiscal year ending March 31:
2027	¥	82,173	¥	14,553	¥	2,586
2028	80,601		14,485		2,406
2029	79,652		15,036		2,234
2030	78,433		15,785		2,045
2031	77,755		16,271		1,900
Thereafter (2032-2036)	370,307		91,838		8,415

Fair value measurement of the plan assets

The following is a description of the valuation methodologies used for plan assets measured at fair value as well as the classification of the plan assets pursuant to the fair value hierarchy described in Note 31.

Government bonds and other debt securities

When quoted prices are available in an active market, the MUFG Group adopts the quoted prices to measure the fair value of securities and such securities are classified in Level 1 of the fair value hierarchy. Level 1 securities include Japanese government bonds, most non-Japanese government bonds and certain corporate bonds. When quoted prices are available but not traded actively, such securities are classified in Level 2 of the fair value hierarchy. When quoted prices are not available, the MUFG Group generally estimates fair values by using non-binding prices obtained from independent pricing vendors. Such securities are generally classified in Level 2 of the fair value hierarchy. Level 2 securities include certain non-Japanese government bonds, official institution bonds and corporate bonds. When there is lack of liquidity for securities or significant inputs adopted to the fair value measurements are unobservable, such securities are classified in Level 3 of the fair value hierarchy. Such Level 3 securities mainly consist of non-Japanese corporate bonds.

Marketable equity securities

When quoted prices are available in an active market, the MUFG Group adopts the quoted prices to measure the fair value of marketable equity securities and such securities are classified in Level 1 of the fair value hierarchy. When quoted prices are available but not traded actively, such securities are classified in Level 2 of the fair value hierarchy.

Japanese pooled funds

Japanese pooled funds are investment fund vehicles designed for Japanese pension plan investments under Japanese pension trust fund regulations. Based upon the nature of the funds’ investments, Japanese pooled funds are categorized into four major fund types: Japanese marketable equity securities type, Japanese debt securities type, Non-Japanese marketable equity securities type and Non-Japanese debt securities type. The other types of funds invest in short-term financial instruments or loans receivable. Japanese pooled funds are generally readily redeemable at their net asset values. The fair values of Japanese pooled funds are measured at their net asset values per share (or its equivalent) as a practical expedient.

Other investment funds

Other investment funds include mutual funds, private investments funds, common collective funds, private equity funds and real estate funds. The listed investment funds or mutual funds are valued at quoted prices and classified in Level 1 or Level 2 of the fair value hierarchy. When there is no available market quotation, the fair values are generally determined at net asset values per share (or

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its equivalent) as a practical expedient. Other investment funds classified in Level 3 of the fair value hierarchy consist of certain real estate funds whose fair values are not measured at their net asset values but by using significant unobservable inputs and there is inherent lack of the funds’ liquidity.

Japanese general accounts of life insurance companies

These instruments are contracts with life insurance companies that guarantee return of a certain level of fixed income, which are mainly invested in assets with low market risk such as Japanese debt securities. They are measured at conversion value and classified in Level 2 of the fair value hierarchy.

Other investments

Other investments mainly consist of call loans with the remainder consisting of miscellaneous accounts such as deposits with banks and short-term investments. These instruments are generally classified in Level 1 or Level 2 of the fair value hierarchy.

The following tables present the fair value of each major category of plan assets as of March 31, 2025 and 2026:

Pension benefits and SIP Investments:


At March 31, 2025	Domestic subsidiaries								Foreign offices and subsidiaries
Assets category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Japanese government bonds	¥	51,627	¥	—	¥	—	¥	51,627	¥	—	¥	—	¥	—	¥	—
Non-Japanese government bonds	571		—		—		571		14,948		2,449		—		17,397
Other debt securities	3,691		113,713		2,567		119,971		—		47,657		—		47,657
Japanese marketable equity securities	1,055,319		—		—		1,055,319		—		—		—		—
Non-Japanese marketable equity securities	75,941		83		—		76,024		—		—		—		—
Other investment funds	—		—		—		—		4,529		46,132		—		50,661
Japanese general account of life insurance companies(1)	—		194,758		—		194,758		—		—		—		—
Other investments	20,508		27,395		—		47,903		152		1,664		333		2,149
Total	¥	1,207,657	¥	335,949	¥	2,567	¥	1,546,173	¥	19,629	¥	97,902	¥	333	¥	117,864

At March 31, 2026	Domestic subsidiaries								Foreign offices and subsidiaries
Assets category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in millions)
Japanese government bonds	¥	44,412	¥	—	¥	—	¥	44,412	¥	—	¥	—	¥	—	¥	—
Non-Japanese government bonds	1,805		—		—		1,805		13,405		3,303		—		16,708
Other debt securities	3,179		80,445		2,674		86,298		16		63,571		—		63,587
Japanese marketable equity securities	793,921		—		—		793,921		—		—		—		—
Non-Japanese marketable equity securities	66,011		39		—		66,050		—		—		—		—
Other investment funds	—		—		—		—		3,952		63,518		—		67,470
Japanese general account of life insurance companies(1)	—		190,059		—		190,059		—		—		—		—
Other investments	9,713		356,590		—		366,303		521		1,975		269		2,765
Total	¥	919,041	¥	627,133	¥	2,674	¥	1,548,848	¥	17,894	¥	132,367	¥	269	¥	150,530

Note:

(1)“Japanese general accounts of life insurance companies” is a contract with life insurance companies that guarantees a return of approximately 0.94% from April 1, 2024 to March 31, 2025 and 0.96% from April 1, 2025 to March 31, 2026.

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The following table presents fair values of certain investments valued at net asset value per share (or its equivalent) as a practical expedient that were excluded from the above table as of March 31, 2025 and 2026:


	Domestic subsidiaries						Foreign offices and subsidiaries
Assets category	2025			2026			2025			2026
	(in millions)
Japanese pooled funds:
Japanese marketable equity securities	¥	63,276		¥	58,187		¥	—		¥	—
Japanese debt securities	191,765			291,581			—			—
Non-Japanese marketable equity securities	166,045			202,174			—			—
Non-Japanese debt securities	288,808			238,730			—			—
Other	134,293			145,986			—			—
Total pooled funds	844,187			936,658			—			—
Other investment funds	1,019,412		(1)	1,241,882		(1)	75,771		(2)	66,432		(2)
Total	¥	1,863,599		¥	2,178,540		¥	75,771		¥	66,432

Notes:

(1)Other investment funds of the domestic subsidiaries include mutual funds and real estate funds of ¥977,917 million and ¥11,205 million, respectively, at March 31, 2025 and ¥1,197,658 million and ¥12,177 million, respectively, at March 31, 2026.

(2)Other investment funds of the foreign offices and subsidiaries include mutual funds, real estate funds and common collective funds of ¥5,787 million, ¥39,712 million and ¥30,093 million, respectively, at March 31, 2025 and ¥6,226 million, ¥28,207 million and ¥31,840 million, respectively, at March 31, 2026.

Other debt securities and Japanese debt securities in the above Pension benefits and SIP tables include ¥2,615 million (0.07% of plan assets) of debt securities issued by the MUFG Group at March 31, 2025 and ¥1,589 million (0.04% of plan assets) at March 31, 2026, respectively. Japanese marketable equity securities in the above Pension benefits and SIP tables include ¥7,076 million (0.20% of plan assets) of common stock issued by the MUFG Group at March 31, 2025 and ¥7,353 million (0.19% of plan assets) at March 31, 2026, respectively.

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14.OTHER ASSETS AND LIABILITIES

Major components of other assets and liabilities at March 31, 2025 and 2026 were as follows:


	2025		2026
	(in millions)
Other assets:
Accounts receivable:
Receivables from brokers, dealers and customers for securities transactions	¥	293,058	¥	760,323
Other(1)	2,026,871		2,071,305
Investments in equity method investees	4,564,269		5,461,950
Prepaid benefit cost (Note 13)	2,196,632		2,639,445
Cash collateral pledged for derivative transactions (Note 9)	2,566,588		4,261,209
Cash collateral for the use of Bank of Japan’s settlement infrastructure	10,000		10,000
Accrued interest	761,358		864,973
Deferred tax assets (Note 8)	123,343		131,902
Right-of-use assets of operating leases (Note 7)	247,221		282,736
Other(2)	6,344,058		9,279,436
Total	¥	19,133,398	¥	25,763,279
Other liabilities:
Accounts payable:
Payables to brokers, dealers and customers for securities transactions	¥	1,447,659	¥	1,596,728
Other	1,690,202		2,161,767
Obligations to return securities received as collateral (Notes 15, 16 and 31)	6,046,755		8,468,326
Accrued interest	560,982		583,981
Deferred tax liabilities (Note 8)	754,888		773,980
Allowance for off-balance sheet credit instruments	178,054		160,786
Accrued benefit cost (Note 13)	103,957		106,363
Guarantees and indemnifications	73,443		93,686
Cash collateral received for derivative transactions (Note 9)	1,415,939		1,417,988
Obligations under operating leases (Note 7)	341,499		370,365
Accrued and other liabilities	3,799,463		4,153,797
Total	¥	16,412,841	¥	19,887,767

Notes:

(1)Accounts receivable—Other is primarily comprised of receivables relating to the card business. The provision or reversal of the allowance for credit losses relating to the receivables is included in Non-interest expense on the consolidated statements of income. The credit quality for these receivables is primarily evaluated based on the extent of delinquency. The outstanding balance of these account receivables are presented on a net basis after allowance for credit losses. The change of allowance for credit losses during the fiscal years ended March 31, 2024, 2025 and 2026 is primarily due to provision or reversal of the allowance for the receivables.

(2)Other includes a contract to purchase equity shares of Shriram Finance Limited held by MUFG Bank. MUFG Bank measured the fair value of the investment agreement to acquire a 20.0% equity interest in Shriram Finance Limited (“SFL”) as of March 31, 2026, based on the difference between the agreed share purchase price and the market price as of March 31, 2026. As a result, MUFG Bank recognized ¥25,111 million of the contract in Other Assets. See Note 33 for further information.

Investments in equity method investees include marketable equity securities carried at ¥3,885,529 million and ¥4,708,181 million at March 31, 2025 and 2026, respectively. Corresponding aggregated market values were ¥7,461,707 million and ¥11,034,755 million at March 31, 2025 and 2026, respectively. Marketable equity securities include Morgan Stanley’s common stock carried at ¥3,247,891 million and ¥3,996,002 million at March 31, 2025 and 2026, respectively. As of March 31, 2026, the MUFG Group held approximately 23.87% of its common stock. Investments in equity method investees also include investments in Morgan Stanley MUFG Securities, Co., Ltd. at ¥195,614 million and ¥211,579 million at March 31, 2025 and 2026, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

The MUFG Group periodically evaluates whether a loss in value of investments in equity method investees is other-than-temporary. As a result of evaluations, the MUFG Group recognized other-than-temporary declines in the value of an investment and recorded impairment losses related to certain affiliated companies of ¥19,978 million, ¥8,177 million and ¥6,546 million for the fiscal years ended March 31, 2024, 2025 and 2026, respectively. The impairment losses are included in Equity in earnings of equity method investees—net in the accompanying consolidated statements of income.

Summarized Financial Information of the MUFG Group’s Equity Method Investees

Summarized financial information of Morgan Stanley, the largest portion of the MUFG Group’s equity method investees, as of March 31, 2025 and 2026, and for each of the three years ended March 31, 2026 is as follows:


	2025		2026
	(in billions)
Trading assets	¥	59,844	¥	84,131
Securities purchased under agreements to resell	17,800		20,605
Securities borrowed	20,967		24,713
Total assets	194,420		252,837
Deposits	57,051		68,424
Customer and other payables	30,163		41,455
Borrowings	45,662		59,406
Total liabilities	178,295		234,390
Noncontrolling interests	155		176


	2024		2025		2026
	(in billions)
Net revenues	¥	7,907	¥	9,739	¥	11,081
Total non-interest expenses	6,068		6,843		7,498
Income from continuing operations before income taxes	1,798		2,835		3,536
Net income applicable to Morgan Stanley	1,375		2,162		2,736

Summarized financial information of the MUFG Group’s equity method investees, other than Morgan Stanley as of March 31, 2025 and 2026, and for each of the three years ended March 31, 2026 is as follows:


	2025		2026
	(in billions)
Net loans	¥	20,315	¥	21,992
Total assets	40,852		44,782
Deposits	13,742		15,644
Total liabilities	32,900		35,404
Noncontrolling interests	93		106


	2024		2025		2026
	(in billions)
Total interest income	¥	1,820	¥	1,998	¥	2,052
Total interest expense	782		775		868
Net interest income	1,038		1,223		1,184
Provision for credit losses	291		366		252
Income before income tax expense	698		838		1,164
Net income	596		704		997

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

15.OFFSETTING OF DERIVATIVES, REPURCHASE AGREEMENTS, AND SECURITIES LENDING TRANSACTIONS

The following tables present, as of March 31, 2025 and 2026, the gross and net amounts of the derivatives, resale and repurchase agreements, and securities borrowing and lending transactions, including the related gross amounts subject to an enforceable master netting arrangement or similar agreement not offset in the consolidated balance sheets. The MUFG Group primarily enters into International Swaps and Derivatives Association master netting agreements, master repurchase agreements and master securities lending agreements or similar agreements for derivative contracts, resale and repurchase agreements, and securities borrowing and lending transactions. In the event of default on or termination of any one contract, these agreements provide the contracting parties with the right to net a counterparty’s rights and obligations and to liquidate and setoff collateral against any net amount owed by the counterparty. Generally, as the MUFG Group has elected to present such amounts on a gross basis, the amounts subject to these agreements are included in “Gross amounts not offset in the consolidated balance sheet” column in the tabular disclosure below. For certain transactions where a legal opinion with respect to the enforceability of netting has not been sought or obtained, the related amounts are not subject to enforceable master netting agreements and not included in “Gross amounts not offset in the consolidated balance sheet” column in the tabular disclosure below.


At March 31, 2025:	Gross amounts of recognized assets/liabilities		Gross amounts offset in the consolidated balance sheet		Net amounts presented in the consolidated balance sheet		Gross amounts not offset in the consolidated balance sheet				Net amounts
							Financial instruments		Cash collateral received/pledged
	(in billions)
Financial assets:
Derivative assets	¥	20,748	¥	—	¥	20,748	¥	(17,542)	¥	(1,053)	¥	2,153
Receivables under resale agreements	21,538		(2,756)		18,782		(17,515)		(1)		1,266
Receivables under securities borrowing transactions	5,720		(19)		5,701		(4,154)		—		1,547
Total	¥	48,006	¥	(2,775)	¥	45,231	¥	(39,211)	¥	(1,054)	¥	4,966
Financial liabilities:
Derivative liabilities	¥	20,995	¥	—	¥	20,995	¥	(17,031)	¥	(1,477)	¥	2,487
Payables under repurchase agreements	46,381		(2,717)		43,664		(41,856)		(144)		1,664
Payables under securities lending transactions	737		(19)		718		(693)		—		25
Obligations to return securities received as collateral	6,047		—		6,047		(1,502)		—		4,545
Total	¥	74,160	¥	(2,736)	¥	71,424	¥	(61,082)	¥	(1,621)	¥	8,721


At March 31, 2026:	Gross amounts of recognized assets/liabilities		Gross amounts offset in the consolidated balance sheet		Net amounts presented in the consolidated balance sheet		Gross amounts not offset in the consolidated balance sheet				Net amounts
							Financial instruments		Cash collateral received/pledged
	(in billions)
Financial assets:
Derivative assets	¥	38,949	¥	—	¥	38,949	¥	(34,642)	¥	(1,081)	¥	3,226
Receivables under resale agreements	19,661		(2,776)		16,885		(15,791)		(6)		1,088
Receivables under securities borrowing transactions	5,493		—		5,493		(4,350)		—		1,143
Total	¥	64,103	¥	(2,776)	¥	61,327	¥	(54,783)	¥	(1,087)	¥	5,457
Financial liabilities:
Derivative liabilities	¥	40,347	¥	—	¥	40,347	¥	(34,171)	¥	(2,686)	¥	3,490
Payables under repurchase agreements	42,292		(2,776)		39,516		(37,347)		(130)		2,039
Payables under securities lending transactions	1,252		—		1,252		(1,206)		(16)		30
Obligations to return securities received as collateral	8,468		—		8,468		(3,504)		—		4,964
Total	¥	92,359	¥	(2,776)	¥	89,583	¥	(76,228)	¥	(2,832)	¥	10,523

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16.REPURCHASE AGREEMENTS AND SECURITIES LENDING TRANSACTIONS ACCOUNTED FOR AS SECURED BORROWINGS

The following tables present gross obligations for payables under repurchase agreements, payables under securities lending transactions and obligations to return securities received as collateral by remaining contractual maturity and class of collateral pledged at March 31, 2025 and 2026. Potential risks associated with these arrangements primarily relate to market and liquidity risks. To manage risks associated with market exposure, the MUFG Group generally revalues the collateral underlying its repurchase agreements and securities lending transactions on a daily basis and monitors the value of the underlying securities, consisting of primarily high-quality securities such as Japanese national government and Japanese government agency bonds, and foreign government and official institution bonds. In the event the market value of such securities falls below the related agreements at contract amounts plus accrued interest, the MUFG Group may be required to deposit additional collateral when appropriate. To address liquidity risks, the MUFG Group conducts stress tests to ensure the adequate level of liquidity is maintained in the event of a decline in the fair value of any collateral pledged.


	March 31, 2025
	Remaining Contractual Maturity
	Overnight and open		30 days or less		31-90 days		Over 90 days		Total
	(in billions)
Payables under repurchase agreements	¥	10,579	¥	29,902	¥	4,754	¥	1,146	¥	46,381
Payables under securities lending transactions	717		3		—		17		737
Obligations to return securities received as collateral	5,185		399		155		308		6,047
Total	¥	16,481	¥	30,304	¥	4,909	¥	1,471	¥	53,165


	March 31, 2026
	Remaining Contractual Maturity
	Overnight and open		30 days or less		31-90 days		Over 90 days		Total
	(in billions)
Payables under repurchase agreements	¥	9,471	¥	28,467	¥	3,349	¥	1,005	¥	42,292
Payables under securities lending transactions	1,234		18		—		—		1,252
Obligations to return securities received as collateral	6,260		173		862		1,173		8,468
Total	¥	16,965	¥	28,658	¥	4,211	¥	2,178	¥	52,012

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Secured borrowing by the class of collateral pledged at March 31, 2025 and 2026 was as follows:


	March 31, 2025
	Payables under repurchase agreements		Payables under securities lending transactions		Obligations to return securities received as collateral		Total
	(in billions)
Japanese national government and Japanese government agency bonds	¥	16,652	¥	165	¥	3,438	¥	20,255
Foreign government and official institution bonds	16,955		30		917		17,902
Corporate bonds	1,012		—		358		1,370
Residential mortgage-backed securities	10,695		—		—		10,695
Other debt securities	190		—		2		192
Marketable equity securities	846		531		1,332		2,709
Other	31		11		—		42
Total	¥	46,381	¥	737	¥	6,047	¥	53,165

	March 31, 2026
	Payables under repurchase agreements		Payables under securities lending transactions		Obligations to return securities received as collateral		Total
	(in billions)
Japanese national government and Japanese government agency bonds	¥	9,738	¥	560	¥	3,196	¥	13,494
Foreign government and official institution bonds	22,887		11		1,981		24,879
Corporate bonds	992		—		442		1,434
Residential mortgage-backed securities	6,990		—		6		6,996
Other debt securities	360		—		3		363
Marketable equity securities	1,315		640		2,840		4,795
Other	10		41		—		51
Total	¥	42,292	¥	1,252	¥	8,468	¥	52,012

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

17.PREFERRED STOCK

Pursuant to the Articles of Incorporation, MUFG had been authorized to issue 400,000,000 shares of Class 5 Preferred Stock, 200,000,000 shares of Class 6 Preferred Stock, and 200,000,000 shares of Class 7 Preferred Stock without par value as of March 31, 2026.

All classes of preferred stock are non-voting and have preference over common stock for the payment of dividends and the distribution of assets in the event of a liquidation or dissolution of MUFG. They are all non-cumulative and non-participating with respect to dividend payments. Shareholders of all classes of preferred stock have the right to receive a liquidation distribution at ¥2,500 and do not have the right to participate in any further liquidation distributions.

As of March 31, 2024, 2025 and 2026, there was no preferred stock outstanding and the entire amount of Capital stock on the consolidated balance sheets consisted of only common stock.

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18.COMMON STOCK AND CAPITAL SURPLUS

The changes in the number of issued shares of common stock during the fiscal years ended March 31, 2024, 2025 and 2026 were as follows:


	2024	2025	2026
	(shares)
Balance at beginning of fiscal year	12,687,710,920	12,337,710,920	12,067,710,920
Retirement of shares of common stock	(350,000,000)	(270,000,000)	(200,000,000)
Balance at end of fiscal year	12,337,710,920	12,067,710,920	11,867,710,920

Under the Companies Act, issuances of common stock, including conversions of bonds and notes, are required to be credited to the common stock account for at least 50% of the proceeds and to the legal capital surplus account (“legal capital surplus”) for the remaining amounts.

The Companies Act permits Japanese companies, upon approval by the Board of Directors, to issue shares in the form of a “stock split,” as defined in the Companies Act. Also, prior to April 1, 1991, Japanese companies were permitted to issue free share distributions. MUFG Bank and Mitsubishi UFJ Trust and Banking from time to time made free share distributions. These free distributions usually ranged from 5% to 10% of outstanding common stock and publicly-owned corporations in the United States issuing shares in similar transactions would be required to account for them as stock dividends as of the shareholders’ record date by reducing retained earnings and increasing the appropriate capital accounts by an amount equal to the fair value of the shares issued. The application of such U.S. accounting practices to the cumulative free distributions made by MUFG Bank and Mitsubishi UFJ Trust and Banking at March 31, 2026, would have increased capital accounts by ¥1,910,106 million with a corresponding decrease in unappropriated retained earnings.

The Companies Act permits that common stock, legal reserve, additional paid-in capital, and other capital surplus and retained earnings can be transferred among these accounts under certain conditions upon the approval of a shareholders’ meeting. The Companies Act limits the increase of paid-in capital in case disposition of treasury stock and issuance of common stock are performed at the same time.

As for Capital surplus, the fee retained by MUFG’s subsidiary as underwriting compensation, net of stock issuance expense, was included in the total Capital surplus balance.

Treasury Stock

The Companies Act permits Japanese companies to effect purchases of their own shares pursuant to a resolution by the shareholders at an annual general meeting until the conclusion of the following ordinary general meeting of shareholders, and to hold such shares as their treasury stock indefinitely regardless of purpose. However, the Companies Act requires the amount of treasury stock purchased should be within the amount of retained earnings available for dividends. Disposition of treasury stock is subject to the approval of the Board of Directors and is to follow the procedures similar to a public offering of shares for subscription.

MUFG resolved at the meeting of Board of Directors held on November 14, 2023 to repurchase up to the lesser of 400,000,000 shares of our common stock and ¥400 billion from November 15, 2023 to March 31, 2024. Under this share repurchase program, MUFG repurchased 300,646,400 shares of MUFG's common stock for ¥399,999,861,554 from November 2023 to March 2024. Also, MUFG cancelled 350,000,000 shares of treasury stock on November 30, 2023.

MUFG resolved at the meeting of Board of Directors held on May 15, 2024 to repurchase up to the lesser of 80,000,000 shares of our common stock and ¥100 billion from May 16, 2024 to June 30, 2024. Under this share repurchase program, MUFG repurchased 62,666,100 shares of MUFG's common stock for ¥99,999,986,737 from May 2024 to June 2024.

MUFG resolved at the meeting of Board of Directors held on November 14, 2024 to repurchase up to the lesser of 230,000,000 shares of our common stock and ¥300 billion from November 15, 2024 to March 31, 2025. Under this share repurchase program, MUFG repurchased 158,752,500 shares of MUFG's common stock for ¥299,999,995,801 from November 2024 to March 2025. Also, MUFG cancelled 270,000,000 shares of treasury stock on November 29, 2024.

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MUFG resolved at the meeting of Board of Directors held on May 15, 2025 to repurchase up to the lesser of 175,000,000 shares of our common stock and ¥250 billion from May 16, 2025 to July 31, 2025. Under this share repurchase program, MUFG repurchased 126,363,300 shares of MUFG's common stock for ¥249,999,975,140 from May 2025 to July 2025.

MUFG resolved at the meeting of Board of Directors held on November 14, 2025 to repurchase up to the lesser of 130,000,000 shares of our common stock and ¥250 billion from November 17, 2025 to February 27, 2026. Under this share repurchase program, MUFG repurchased 94,456,300 shares of MUFG's common stock for ¥249,999,908,452 from November 2025 to February 2026. Also, MUFG cancelled 200,000,000 shares of treasury stock on November 28, 2025.

MUFG intends to agilely engage in repurchases of shares of MUFG's own stock as a means to return profits to shareholders and improve capital efficiency, taking into account MUFG's business performance and capital position, opportunities for growth investments, and market conditions including stock prices. As a general policy, MUFG intends to cancel treasury shares to the extent that such shares exceed approximately 5% of our total issued shares (including treasury shares).

19.RETAINED EARNINGS, LEGAL RESERVE AND DIVIDENDS

In addition to the Companies Act, Japanese banks, including MUFG Bank and Mitsubishi UFJ Trust and Banking, are required to comply with the Banking Law of Japan (the “Banking Law”).

Legal Reserve Set Aside as Appropriation of Retained Earnings and Legal Capital Surplus

Under the Companies Act

The Companies Act provides that an amount at least equal to 10% of the aggregate amount of cash dividends and certain appropriations of retained earnings associated with cash outlays applicable to each period shall be appropriated and set aside as a legal reserve until the aggregate amount of legal reserve set aside as an appropriation of retained earnings and the legal capital surplus equals 25% of stated capital as defined in the Companies Act.

Under the Banking Law

The Banking Law provides that an amount at least equal to 20% of the aggregate amount of cash dividends and certain appropriations of retained earnings associated with cash outlays applicable to each fiscal year shall be appropriated and set aside as a legal reserve until the aggregate amount of legal reserve set aside as appropriation of retained earnings and the legal capital surplus equals 100% of stated capital as defined in the Companies Act.

Transfer of Legal Reserve

Under the Companies Act

Under the Companies Act, Japanese companies, including MUFG, were permitted, pursuant to a resolution by the shareholders at a general meeting, to make legal reserve set aside as appropriation of retained earnings and legal capital surplus available for dividends until the aggregate amount of the legal reserve and legal capital surplus equals 25% of stated capital as defined in the Companies Act.

Under the Companies Act, Japanese companies, including MUFG, MUFG Bank and Mitsubishi UFJ Trust and Banking, are permitted, primarily pursuant to a resolution by the shareholders at a general meeting, to transfer legal capital surplus and legal reserve to stated capital and/or retained earnings without limitations of thresholds, thereby effectively removing the thresholds provided for in the Companies Act and Banking Law at the company’s discretion.

Under the Banking Law

Under the Banking Law, Japanese banks, including MUFG Bank and Mitsubishi UFJ Trust and Banking, were permitted, pursuant to a resolution by the shareholders at a general meeting, to set aside a legal reserve as an appropriation of retained earnings and legal capital surplus available for dividends until the aggregate amount of the legal reserve and legal capital surplus equals 100% of stated capital as defined in the Companies Act.

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Unappropriated Retained Earnings and Dividends

In addition to the provision that requires an appropriation for legal reserve as described above, the Companies Act and the Banking Law impose certain limitations on the amount available for dividends.

Under the Companies Act, the amount available for dividends is based on the amount recorded in MUFG’s general books of account maintained in accordance with Japanese GAAP. The adjustments included in the accompanying consolidated financial statements but not recorded in MUFG’s general books of account, as explained in Note 1, have no effect on the determination of retained earnings available for dividends under the Companies Act. Under the Banking Law, MUFG, MUFG Bank and Mitsubishi UFJ Trust and Banking have to meet the minimum capital adequacy requirements and distributions of retained earnings of MUFG, MUFG Bank and Mitsubishi UFJ Trust and Banking, which are otherwise distributable to shareholders, are restricted in order to maintain the minimum capital requirements.

MUFG, formerly known as Mitsubishi Tokyo Financial Group, was established on April 2, 2001 with common stock of ¥924,400 million, preferred stock of ¥222,100 million, legal capital surplus of ¥2,838,693 million and no retained earnings in accordance with the Commercial Code of Japan (“the Code”), which was replaced by the Companies Act, and Japanese GAAP.

On October 1, 2005, MUFG started with common stock and preferred stock of ¥1,383,052 million, a legal capital surplus of ¥3,577,570 million and retained earnings of ¥757,458 million in accordance with the Code and Japanese GAAP.

MUFG’s amount available for dividends, at March 31, 2026, was ¥4,435,001 million, which is based on the amount recorded in MUFG’s general books of account under Japanese GAAP.

Annual dividends, including those for preferred stock, are approved by the shareholders at an annual general meeting held subsequent to the fiscal year to which the dividends are applicable. In addition, a semi-annual interim dividend payment may be made by resolution of the Board of Directors, subject to limitations imposed by the Companies Act and the Banking Law.

In the accompanying consolidated statements of equity, dividends and appropriations to legal reserve shown for each fiscal year represent dividends approved and paid during the fiscal year and the related appropriation to legal reserve.

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20.ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents the changes in Accumulated OCI, net of tax and net of noncontrolling interests, for the fiscal years ended March 31, 2024, 2025 and 2026:


	2024		2025		2026
	(in millions)
Accumulated other comprehensive loss, net of taxes:
Net unrealized losses on investment securities:
Balance at beginning of fiscal year	¥	(883,931)	¥	(826,271)	¥	(883,061)
Net change during the fiscal year	57,660		(56,790)		39,983


Balance at end of fiscal year	¥	(826,271)	¥	(883,061)	¥	(843,078)
Net debt valuation adjustments:
Balance at beginning of fiscal year	¥	3,268	¥	(41,382)	¥	(30,121)
Net change during the fiscal year	(44,650)		11,261		2,818
Balance at end of fiscal year	¥	(41,382)	¥	(30,121)	¥	(27,303)
Net unrealized gains (losses) on derivatives qualifying for cash flow hedges:
Balance at beginning of fiscal year	¥	551	¥	63	¥	(1,199)
Net change during the fiscal year	(488)		(1,262)		(6,263)

Balance at end of fiscal year	¥	63	¥	(1,199)	¥	(7,462)
Defined benefit plans:
Balance at beginning of fiscal year	¥	8,350	¥	389,392	¥	461,286
Net change during the fiscal year	381,042		71,894		213,812

Balance at end of fiscal year	¥	389,392	¥	461,286	¥	675,098
Foreign currency translation adjustments:
Balance at beginning of fiscal year	¥	1,742,816	¥	2,715,823	¥	3,014,285
Net change during the fiscal year	973,007		298,462		648,911
Balance at end of fiscal year	¥	2,715,823	¥	3,014,285	¥	3,663,196
Balance at end of fiscal year	¥	2,237,625	¥	2,561,190	¥	3,460,451

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The following table presents the before tax and net of tax changes in each component of Accumulated OCI for the fiscal years ended March 31, 2024, 2025 and 2026:


	2024						2025						2026
	Before tax		Tax (expense) or benefit		Net of tax		Before tax		Tax (expense) or benefit		Net of tax		Before tax		Tax (expense) or benefit		Net of tax
	(in millions)
Net unrealized gains (losses) on investment securities:
Net unrealized losses on investment securities	¥	(72,820)	¥	11,993	¥	(60,827)	¥	(186,230)	¥	98,037	¥	(88,193)	¥	(282,039)	¥	85,043	¥	(196,996)
Reclassification adjustment for losses included in net income before attribution of noncontrolling interests	150,646		(45,320)		105,326		166,982		(51,853)		115,129		309,675		(98,333)		211,342

Net change	77,826		(33,327)		44,499		(19,248)		46,184		26,936		27,636		(13,290)		14,346
Net unrealized gains (losses) on investment securities attributable to noncontrolling interests					(13,161)						83,726						(25,637)
Net unrealized gains (losses) on investment securities attributable to Mitsubishi UFJ Financial Group					57,660						(56,790)						39,983
Net debt valuation adjustments:
Net debt valuation adjustments	(65,133)		19,944		(45,189)		14,664		(4,470)		10,194		2,905		(911)		1,994
Reclassification adjustment for losses included in net income before attribution of noncontrolling interests	776		(237)		539		1,538		(471)		1,067		1,203		(379)		824
Net change	(64,357)		19,707		(44,650)		16,202		(4,941)		11,261		4,108		(1,290)		2,818

Net debt valuation adjustments attributable to Mitsubishi UFJ Financial Group					(44,650)						11,261						2,818
Net unrealized gains (losses) on derivatives qualifying for cash flow hedges:
Net unrealized gains (losses) on derivatives qualifying for cash flow hedges	7,441		(1,515)		5,926		(5,668)		1,153		(4,515)		(9,981)		3,035		(6,946)
Reclassification adjustment for losses (gains) included in net income before attribution of noncontrolling interests	(8,197)		1,635		(6,562)		3,585		(717)		2,868		816		(163)		653

Net change	(756)		120		(636)		(2,083)		436		(1,647)		(9,165)		2,872		(6,293)

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	2024				2025				2026
	Before tax	Tax (expense) or benefit	Net of tax		Before tax	Tax (expense) or benefit	Net of tax		Before tax	Tax (expense) or benefit	Net of tax
	(in millions)
Net unrealized losses on derivatives qualifying for cash flow hedges attributable to noncontrolling interests			(148)				(385)				(30)
Net unrealized losses on derivatives qualifying for cash flow hedges attributable to Mitsubishi UFJ Financial Group			(488)				(1,262)				(6,263)
Defined benefit plans:
Defined benefit plans	566,093	(174,339)	391,754		134,302	(42,213)	92,089		356,276	(112,600)	243,676
Reclassification adjustment for gains included in net income before attribution of noncontrolling interests	(13,047)	4,148	(8,899)		(30,034)	9,261	(20,773)		(41,587)	13,498	(28,089)

Net change	553,046	(170,191)	382,855		104,268	(32,952)	71,316		314,689	(99,102)	215,587
Defined benefit plans attributable to noncontrolling interests			1,813				(578)				1,775
Defined benefit plans attributable to Mitsubishi UFJ Financial Group			381,042				71,894				213,812
Foreign currency translation adjustments:
Foreign currency translation adjustments	1,252,155	(160,753)	1,091,402		380,634	3,255	383,889		830,611	(113,293)	717,318
Reclassification adjustment for gains included in net income before attribution of noncontrolling interests	(16,132)	4,939	(11,193)		(26,481)	8,200	(18,281)		(49,335)	14,991	(34,344)
Net change	1,236,023	(155,814)	1,080,209		354,153	11,455	365,608		781,276	(98,302)	682,974
Foreign currency translation adjustments attributable to noncontrolling interests			107,202				67,146				34,063
Foreign currency translation adjustments attributable to Mitsubishi UFJ Financial Group			973,007				298,462				648,911
Other comprehensive income attributable to Mitsubishi UFJ Financial Group			¥	1,366,571			¥	323,565			¥	899,261

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The following table presents the effect of the reclassification of significant items out of Accumulated OCI on the respective line items of the accompanying consolidated statements of income for the fiscal years ended March 31, 2024, 2025 and 2026:


	2024		2025		2026
Details of Accumulated OCI components	Amount reclassified out of Accumulated OCI						Line items in the consolidated statements of income
	(in millions)
Net unrealized losses on investment securities
Net losses on sales and redemptions of Available-for-sale debt securities	¥	149,292	¥	150,567	¥	308,743	Investment securities gains (losses)—net
Impairment losses on investment securities	2		12,819		—		Investment securities gains (losses)—net

Other	1,352		3,596		932
	150,646		166,982		309,675		Total before tax
	(45,320)		(51,853)		(98,333)		Income tax expense
	¥	105,326	¥	115,129	¥	211,342	Net of tax
Net debt valuation adjustments	¥	776	¥	1,538	¥	1,203	Equity in earnings of equity method investees—net or Other non-interest income
	776		1,538		1,203		Total before tax
	(237)		(471)		(379)		Income tax expense
	¥	539	¥	1,067	¥	824	Net of tax
Net unrealized losses (gains) on derivatives qualifying for cash flow hedges Interest rate contracts

Foreign exchange contracts	(8,197)		3,585		816		Interest expense on Long-term debt or Foreign exchange gains (losses)—net


	(8,197)		3,585		816		Total before tax
	1,635		(717)		(163)		Income tax expense
	¥	(6,562)	¥	2,868	¥	653	Net of tax
Defined benefit plans
Net actuarial loss (gain)(1)	¥	1,962	¥	(14,798)	¥	(28,639)	Other non-interest expenses
Prior service cost(1)	(3,345)		(2,059)		(717)		Other non-interest expenses
Gain on settlements and curtailment, and other(1)	(11,664)		(13,178)		(12,232)		Other non-interest income or expenses

	(13,047)		(30,034)		(41,587)		Total before tax
	4,148		9,261		13,498		Income tax expense
	¥	(8,899)	¥	(20,773)	¥	(28,089)	Net of tax
Foreign currency translation adjustments	¥	(16,132)	¥	(26,481)	¥	(49,335)	Other non-interest income

	(16,132)		(26,481)		(49,335)		Total before tax
	4,939		8,200		14,991		Income tax expense
	¥	(11,193)	¥	(18,281)	¥	(34,344)	Net of tax
Total reclassifications for the period	¥	114,046	¥	115,590	¥	220,772	Total before tax
	(34,835)		(35,580)		(70,386)		Income tax expense
	¥	79,211	¥	80,010	¥	150,386	Net of tax

Note:

(1)These Accumulated OCI components are components of net periodic benefit cost. See Note 13 for more information.

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21.REGULATORY CAPITAL REQUIREMENTS

Japan

MUFG, MUFG Bank, Mitsubishi UFJ Trust and Banking and Mitsubishi UFJ Securities Holdings are subject to various regulatory capital requirements promulgated by the regulatory authorities of the countries in which they operate. Failure to meet minimum capital requirements will initiate certain mandatory actions by regulators that, if undertaken, could have a direct material effect on MUFG’s consolidated financial statements.

In Japan, MUFG, MUFG Bank, and Mitsubishi UFJ Trust and Banking are subject to regulatory capital requirements promulgated by the FSA in accordance with the provisions of the Banking Law and related regulations. A banking institution is subject to the minimum capital requirements both on a consolidated basis and a stand-alone basis, and is required to maintain the minimum capital irrespective of whether it operates independently or as a subsidiary under the control of another company. When a bank holding company manages operations of its banking subsidiaries, it is required to maintain the minimum capital adequacy ratio on a consolidated basis in the same manner as its subsidiary banks. The FSA provides two sets of capital adequacy guidelines. One is a set of guidelines applicable to Japanese banks and bank holding companies with their foreign offices conducting international operations, as defined, and the other is applicable to Japanese banks and bank holding companies that are not engaged in international operations conducted by their foreign offices.

The Basel Committee on Banking Supervision (“BCBS”) of the Bank for International Settlements (“BIS”) sets capital adequacy standards for all internationally active banks to ensure minimum levels of capital.

Capital Ratios

Basel III is based on “three pillars”: (1) minimum capital requirements, (2) the self-regulation of financial institutions based on supervisory review process, and (3) market discipline through the disclosure of information.

As for the denominator of the capital ratio, the Basel framework provides the following risk-based approaches and a range of options for determining risk-weighted assets.

“Credit Risk”

The Basel framework provides options for determining the risk-weighted assets for credit risk to allow banks to select approaches that are most appropriate for their level of risk assessment. Banks choose one of three approaches: “Standardized Approach,” “Foundation Internal Ratings-Based Approach” or “Advanced Internal Ratings-Based Approach (“AIRB”).”

“Market Risk”

A framework titled “Fundamental Review of the Trading Book (FRTB)” was published as a part of Basel III. This framework presents three methods for calculating capital charges on market risk: (1) the Standardized Approach (“SA”), (2) the Internal Models Approach (“IMA”), and (3) Simplified Standardized Approach (“SSA”).

“Operational Risk”

Operational risk is defined as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. The Basel framework presents the Standardized Measurement Approach for calculating operational risk capital charges.

Banks need to obtain approval from their supervisors prior to adopting the following approaches to calculate capital requirements for each risk:

•the Advanced Internal Ratings-Based Approach for credit risk

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•the Internal Models Approach for market risk

•the Standardized Measurement Approach for operational risk

With approval from the FSA, MUFG and most of its major subsidiaries adopt AIRB to calculate capital requirements for credit risk. For market risk, MUFG and many of its major subsidiaries adopt the Standardized Approach, and some subsidiaries adopt the Simplified Standardized Approach. MUFG and its subsidiaries adopt the Standardized Measurement Approach ("SMA") to calculate capital requirements for operational risk.

The MUFG Group’s proprietary assets do not include trust assets under management and administration in a capacity of agent or fiduciary and, accordingly trust account assets are generally not included in the capital measure. However, guarantees for trust principal are counted as off-balance sheet items requiring a capital charge in accordance with the capital adequacy guidelines.

On the other hand, as for the numerator of the capital ratio, there are three primary regulatory capital ratios used to assess capital adequacy, Common Equity Tier 1, Tier 1 and Total capital ratios, which are determined by dividing applicable capital components by risk-weighted assets. Tier 1 capital consists of Common Equity Tier 1 capital and Additional Tier 1 capital. Common Equity Tier 1 capital is primarily consisting of common stock, capital surplus, retained earnings, and Accumulated OCI. Regulatory adjustments including certain intangible fixed assets, such as goodwill, and defined-benefit pension fund assets, are made to Common Equity Tier 1. Additional Tier 1 capital generally consists of Basel III compliant preferred securities.

Tier 2 capital generally consists of Basel III compliant subordinated debts, certain allowances for credit losses, and noncontrolling interests in subsidiaries’ Tier 2 instruments. Total capital is defined as the sum of Tier 1 and Tier 2 capital.

Effective March 31, 2016, the FSA’s capital conservation buffer, countercyclical buffer and the Global Systemically Important Bank (“G-SIB”), as designated by the FSB, surcharge requirements became applicable to Japanese banking institutions with international operations conducted through foreign offices. The requirements had been phased in and fully implemented as of March 31, 2023. In addition to the 4.50% minimum Common Equity Tier 1 capital ratio, MUFG is required to maintain a capital conservation buffer of 2.5%, a G-SIB surcharge of 1.5% as of March 31, 2025 and 2026, respectively, and a countercyclical buffer of 0.16% and 0.18% as of March 31, 2025 and 2026, respectively.

Leverage Ratios

The leverage ratio is designed for monitoring and preventing the build-up of excessive leverage in the banking sector and is expressed as the ratio of Tier 1 capital to both on and off-balance sheet assets adjusted in accordance with the FSA guidance. In December 2017, the Group of Central Bank Governors and Heads of Supervision announced final Basel III reforms. The announced reforms include revisions to the measurement of the leverage ratio and a 3% minimum leverage ratio requirement, plus a G-SIB leverage ratio buffer equal to 50% of the applicable G-SIB capital surcharge. The announcement sets forth implementation dates of January 1, 2018 for the minimum leverage ratio requirement and January 1, 2022 for the G-SIB leverage ratio buffer requirement. Effective as of March 31, 2019, the minimum leverage ratio requirement was adopted by the FSA. In addition, effective as of March 31, 2023, a leverage ratio buffer set at 50% of a G-SIB surcharge, which is 0.75% for MUFG, was adopted by the FSA. On November 11, 2022, the FSA announced that the applicable minimum leverage ratio requirement including the applicable minimum leverage ratio buffer requirement is raised from 3.00% plus a G-SIB leverage ratio buffer set at 50% of a G-SIB surcharge to 3.15% plus a G-SIB leverage ratio buffer set at 50% of a G-SIB surcharge plus 0.05% on and after April 1, 2024, while deposits with the Bank of Japan remain excluded from the leverage exposure for the purpose of the calculation of the leverage ratio, in light of exceptional macroeconomic conditions and other circumstances.

The risk-adjusted capital amounts and ratios, and leverage ratios, of MUFG, MUFG Bank and Mitsubishi UFJ Trust and Banking presented in the following table are based on amounts calculated in accordance with Japanese GAAP as required by the FSA.

Starting from the fiscal year ended March 31, 2025, the fiscal year of Krungsri has been changed from the previous January to December period to an April to March period for consolidation purposes. In connection with the change, the amount of retained earnings under Japanese GAAP which is included in MUFG's Common Equity Tier 1 capital component as of March 31, 2025, reflects Krungsri's relevant amount for the fifteen months ended March 31, 2025.

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	Actual					For capital adequacy purposes
	Amount		Ratio			Amount		Ratio
	(in millions, except percentages)
Consolidated:
At March 31, 2025:
Total capital (to risk-weighted assets):
MUFG(1)	¥	20,145,046		18.83	%	¥	13,002,746		12.16	%
BK	16,477,609			19.63		6,714,352			8.00
TB	1,941,654			19.96		777,957			8.00
Tier 1 capital (to risk-weighted assets):
MUFG(1)	17,804,875			16.65		10,864,137			10.16
BK	14,843,203			17.68		5,035,764			6.00
TB	1,596,399			16.41		583,468			6.00
Common Equity Tier 1 capital (to risk-weighted assets):
MUFG(1)	15,169,261			14.18		9,260,180			8.66
BK	12,675,137			15.10		3,776,823			4.50
TB	1,318,755			13.56		437,601			4.50
Leverage ratio:
MUFG(2)	17,804,875			5.29		13,273,327			3.95
BK	14,843,203			5.45		8,566,333			3.15
TB	1,596,399			5.90		851,341			3.15


At March 31, 2026:
Total capital (to risk-weighted assets):
MUFG(1)	¥	20,273,605	16.85	%	¥	14,650,318	12.18	%
BK	18,098,607		18.02		8,033,498		8.00
TB	2,111,919		19.40		870,859		8.00
Tier 1 capital (to risk-weighted assets):
MUFG(1)	17,984,016		14.95		12,244,683		10.18
BK	16,498,319		16.42		6,025,123		6.00
TB	1,693,288		15.55		653,144		6.00
Common Equity Tier 1 capital (to risk-weighted assets):
MUFG(1)	15,002,259		12.47		10,440,457		8.68
BK	13,932,121		13.87		4,518,843		4.50
TB	1,397,763		12.84		489,858		4.50
Leverage ratio:
MUFG(2)	17,984,016		4.94		14,372,395		3.95
BK	16,498,319		5.25		9,883,615		3.15
TB	1,693,288		5.83		914,784		3.15

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	Actual					For capital adequacy purposes
	Amount		Ratio			Amount		Ratio
	(in millions, except percentages)
Stand-alone:
At March 31, 2025:
Total capital (to risk-weighted assets):
BK	¥	12,248,919		17.07	%	¥	5,739,789		8.00	%
TB	2,176,037			20.06		867,561			8.00
Tier 1 capital (to risk-weighted assets):
BK	10,940,244			15.24		4,304,842			6.00
TB	1,832,137			16.89		650,671			6.00
Common Equity Tier 1 capital (to risk-weighted assets):
BK	8,830,971			12.30		3,228,631			4.50
TB	1,556,637			14.35		488,003			4.50
Leverage ratio:
BK	10,940,244			4.51		7,634,457			3.15
TB	1,832,137			7.21		800,252			3.15
At March 31, 2026:
Total capital (to risk-weighted assets):
BK	¥	12,369,824		14.34	%	¥	6,898,666		8.00	%
TB	2,280,149			18.26		998,875			8.00
Tier 1 capital (to risk-weighted assets):
BK	11,172,136			12.95		5,174,000			6.00
TB	1,862,616			14.91		749,156			6.00
Common Equity Tier 1 capital (to risk-weighted assets):
BK	8,677,713			10.06		3,880,500			4.50
TB	1,568,616			12.56		561,867			4.50
Leverage ratio:
BK	11,172,136			4.21		8,358,062			3.15
TB	1,862,616			6.82		859,923			3.15

Notes:

(1)Effective March 31, 2016, the FSA’s capital conservation buffer, countercyclical buffer and G-SIB surcharge requirements became applicable to Japanese banking institutions with international operations conducted through foreign offices. As a result, in addition to the 4.50% minimum Common Equity Tier 1 capital ratio, MUFG is required to maintain a capital conservation buffer of 2.5% and a G-SIB surcharge of 1.5% as of March 31, 2025 and 2026, respectively, and the countercyclical buffer of 0.16% and 0.18% as of March 31, 2025 and 2026, respectively.

(2)Effective March 31, 2023, the G-SIB leverage ratio buffer requirement became applicable to Japanese banking institutions with international operations conducted through foreign offices. As a result, in addition to the 3.00% minimum leverage ratio, MUFG is required to maintain a G-SIB leverage ratio buffer of 0.75% as of March 31, 2024. On and after April 1, 2024, the minimum leverage ratio has been raised to 3.15% and MUFG is required to maintain a G-SIB leverage ratio buffer of 0.75% plus 0.05%.

Mitsubishi UFJ Morgan Stanley Securities and other securities subsidiaries in Japan and overseas are also subject to regulatory capital requirements of the countries or jurisdictions in which they operate. In Japan, the Financial Instruments and Exchange Act and related ordinance require financial instruments firms to maintain a minimum capital ratio of 120% calculated as a percentage of capital accounts less certain fixed assets, as determined in accordance with Japanese GAAP, against amounts equivalent to market, counterparty credit and operational risks. Specific guidelines are issued as a ministerial ordinance which details the definition of essential components of the capital ratios, including capital, deductible fixed asset items and risks, and related measures. Failure to maintain a minimum capital ratio will trigger mandatory regulatory actions. A capital ratio of less than 140% will call for regulatory reporting and a capital ratio of less than 100% may lead to a suspension of all or part of the business for a period of time and cancellation of a registration.

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At March 31, 2025, Mitsubishi UFJ Morgan Stanley Securities capital accounts less certain fixed assets of ¥564,169 million on a stand-alone basis, and ¥564,266 million on a consolidated basis, were 300.7%, respectively, of the total amounts equivalent to market, counterparty credit and operational risks. At March 31, 2026, its capital accounts less certain fixed assets of ¥593,476 million on a stand-alone basis, and ¥596,304 million on a consolidated basis, were 292.1% and 290.3%, respectively, of the total amounts equivalent to market, counterparty credit and operational risks.

Management believes, as of March 31, 2026, that MUFG, MUFG Bank, Mitsubishi UFJ Trust and Banking, Mitsubishi UFJ Morgan Stanley Securities and other regulated securities subsidiaries met all capital adequacy requirements to which they are subject.

22.EARNINGS PER COMMON SHARE APPLICABLE TO COMMON SHAREHOLDERS OF MUFG

Reconciliations of net income and weighted average number of common shares outstanding used for the computation of basic EPS to the adjusted amounts for the computation of diluted EPS for the fiscal years ended March 31, 2024, 2025 and 2026 are as follows:


	2024		2025		2026
	(in millions)
Income (Numerator):
Net income attributable to Mitsubishi UFJ Financial Group	¥	1,325,869	¥	1,266,933	¥	1,729,359
Effect of dilutive instruments:
Restricted stock units and performance-based stock units—Morgan Stanley	(3,283)		(6,151)		(7,152)
Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group for diluted computation	¥	1,322,586	¥	1,260,782	¥	1,722,207

	2024		2025		2026
	(thousands of shares)
Shares (Denominator):
Weighted average common shares outstanding	11,978,725		11,654,295		11,396,985
Effect of dilutive instruments:
Stock acquisition rights under the Stock Option Plan and the common shares of MUFG under the Board Incentive Plan and the Employee Stock Ownership Plan	1,876		555		1,397
Weighted average common shares for diluted computation	11,980,601		11,654,850		11,398,382

	2024		2025		2026
	(in yen)
Earnings per common share applicable to common shareholders of Mitsubishi UFJ Financial Group:
Basic earnings per common share:
Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group	¥	110.69	¥	108.71	¥	151.74
Diluted earnings per common share:
Earnings applicable to common shareholders of Mitsubishi UFJ Financial Group	¥	110.39	¥	108.18	¥	151.09

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23.DERIVATIVE FINANCIAL INSTRUMENTS

The MUFG Group uses various derivative financial instruments both for trading purposes and for purposes other than trading (primarily risk management purposes) in the normal course of business to meet the financial needs of its customers, as a source of revenue and to manage its exposures to a variety of risks.

Market risk is the possibility that future changes in market indices make the financial instruments less valuable. The MUFG Group is a party to derivative financial instruments, including swaps, forwards, options and other types of derivatives, dealing primarily with market risk associated with interest rates, foreign currencies, equity and commodity prices, and credit risk associated with counterparty’s nonperformance of transactions.

Credit risk is the possibility that a loss may result from a counterparty’s failure to perform according to the terms and conditions of the contract, which may exceed the value of underlying collateral. To reduce credit risk, the MUFG Group may require collateral or guarantees based on a case-by-case assessment of creditworthiness of each customer and evaluation of the instrument. The MUFG Group also uses master netting agreements in order to mitigate overall counterparty credit risk.

Trading Activities

The MUFG Group’s trading activities include dealing and customer accommodation activities. As part of its trading activities, the MUFG Group offers a variety of derivative financial instruments for managing interest rate and foreign exchange risk to its domestic and foreign corporate and financial institution customers. The MUFG Group also enters into other types of derivative transactions, including equity and credit-related contracts, for its own account.

Risk Management Activities

As part of the MUFG Group’s risk management activities, asset and liability management is viewed as one of the methods for the MUFG Group to manage its interest rate exposures on interest-bearing assets and liabilities. The MUFG Group uses certain derivative financial instruments in order to minimize significant unplanned fluctuations in earnings that are caused by interest rate volatility. For example, an increase or a decrease in interest income and interest expense on hedged variable rate assets and liabilities as a result of interest rate fluctuations are expected to be substantially offset by the variability in earnings by gains and losses on the derivative instruments that are linked to these hedged assets and liabilities.

The MUFG Group enters into interest rate swaps and other contracts primarily to manage the interest rate risk of its loans, investment securities and deposit liabilities. Interest rate contracts, which are generally non-leveraged generic interest rate and basis swaps, options and futures, allow the MUFG Group to effectively manage its interest rate risk position. Option contracts primarily consist of caps, floors, swaptions and options on index futures. Futures contracts used for asset and liability management activities are primarily index futures providing for cash payments based upon the movement of an underlying rate index.

The MUFG Group enters into forward exchange contracts, currency swaps and other contracts in response to currency exposures resulting from on-balance sheet assets and liabilities denominated in foreign currencies in order to limit the net foreign exchange position by currency to an appropriate level.

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Notional Amounts of Derivative Contracts

The following table summarizes the notional amounts of derivative contracts at March 31, 2025 and 2026:


	Notional amounts(1)
	2025		2026
	(in trillions)
Interest rate contracts	¥	2,122.7	¥	2,813.4
Foreign exchange contracts	346.9		403.7
Equity contracts	5.1		9.7
Commodity contracts	0.2		0.2
Credit derivatives	5.0		5.8
Other	3.6		4.0
Total	¥	2,483.5	¥	3,236.8

Note:

(1)Includes both written and purchased positions.

Impact of Derivatives on the Consolidated Balance Sheets

The following table summarizes fair value information on derivative instruments that are recorded on the MUFG Group’s consolidated balance sheets at March 31, 2025 and 2026:


	Fair value of derivative instruments
	2025(1)(5)						2026(1)(5)
	Not designated as hedges(2)		Designated as hedges(3)		Total derivatives(4)		Not designated as hedges(2)		Designated as hedges(3)		Total derivatives(4)
	(in billions)
Derivative assets:
Interest rate contracts	¥	14,896	¥	—	¥	14,896	¥	32,082	¥	—	¥	32,082
Foreign exchange contracts	5,621		4		5,625		6,623		3		6,626
Equity contracts	146		—		146		148		—		148
Commodity contracts	20		—		20		21		—		21
Credit derivatives	51		—		51		44		—		44
Other(6)	10		—		10		28		—		28
Total derivative assets	¥	20,744	¥	4	¥	20,748	¥	38,946	¥	3	¥	38,949

Derivative liabilities:
Interest rate contracts	¥	16,071	¥	—	¥	16,071	¥	33,764	¥	—	¥	33,764
Foreign exchange contracts	4,905		3		4,908		6,538		5		6,543
Equity contracts	62		—		62		101		—		101
Commodity contracts	20		—		20		20		—		20
Credit derivatives	53		—		53		71		—		71
Other(6)	(119)		—		(119)		(152)		—		(152)
Total derivative liabilities	¥	20,992	¥	3	¥	20,995	¥	40,342	¥	5	¥	40,347

Notes:

(1)The fair value of derivative instruments is presented on a gross basis even when derivative instruments are subject to master netting agreements. Cash collateral payable and receivable associated with derivative instruments are not added to or netted against the fair value amounts.

(2)Except for the derivative instruments described in (6), the derivative instruments which are not designated as a hedging instrument are held for trading and risk management purposes and are presented in Trading account assets and liabilities.

(3)The MUFG Group adopts hedging strategies and applies hedge accounting to certain derivative transactions entered into by certain subsidiaries. The derivative instruments which are designated as hedging instruments are presented in Other assets or Other liabilities on the accompanying consolidated balance sheets.

(4)This table does not include contracts with embedded derivatives for which the fair value option has been elected.

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(5)For more information about fair value measurement and assumptions used to measure the fair value of derivatives, see Note 31.

(6)Other mainly includes bifurcated embedded derivatives carried at fair value, which are presented in Loans, Deposits and Long-term debt.

Impact of Derivatives on the Consolidated Statements of Income

The following table provides more detailed information regarding the derivative-related impact on the accompanying consolidated statements of income for the fiscal years ended March 31, 2024, 2025 and 2026:

Gains and losses for trading and risk management derivatives (not designated as hedging instruments)


	Trading and risk management derivatives gains and losses (Not designated as hedging instruments)
	2024						2025						2026
	Foreign exchange gains (losses) —net		Trading account profits (losses) —net		Total		Foreign exchange gains (losses) —net		Trading account profits (losses) —net		Total		Foreign exchange gains (losses) —net		Trading account profits (losses) —net		Total
	(in billions)
Interest rate contracts	¥	—	¥	(221)	¥	(221)	¥	—	¥	(239)	¥	(239)	¥	—	¥	(916)	¥	(916)
Foreign exchange contracts	(402)		—		(402)		438		—		438		(773)		—		(773)
Equity contracts	—		(618)		(618)		—		196		196		—		(770)		(770)
Commodity contracts	—		(1)		(1)		—		—		—		—		—		—
Credit derivatives	—		(27)		(27)		—		(10)		(10)		—		(13)		(13)
Other(1)	(9)		(85)		(94)		9		(43)		(34)		13		(4)		9
Total	¥	(411)	¥	(952)	¥	(1,363)	¥	447	¥	(96)	¥	351	¥	(760)	¥	(1703)	¥	(2,463)

Note:

(1)Other mainly includes bifurcated embedded derivatives carried at fair value, which are presented in Loans, Deposits and Long-term debt.

Credit Derivatives

The MUFG Group enters into credit derivatives to manage its credit risk exposure, to facilitate client transactions, and for proprietary trading purposes, under which they provide the counterparty protection against the risk of default on a set of debt obligations issued by a specified reference entity or entities. Types of such credit derivatives primarily include single name credit default swaps, index and basket credit default swaps. The MUFG Group will have to perform under a credit derivative if a credit event as defined under the contract occurs. Such credit events include bankruptcy, dissolution or insolvency of the referenced entity, default and restructuring of the obligations of the referenced entity. The MUFG Group’s counterparties are banks, broker-dealers, insurance and other financial institutions. The contractual or notional amounts of these credit derivatives represent the maximum potential amounts of future payments without consideration of possible recoveries under recourse provisions or from collateral held or pledged.

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The table below summarizes certain information regarding protection sold through credit derivatives as of March 31, 2025 and 2026:


	Protection sold
	Maximum potential/Notional amount by expiration period								Fair value
At March 31, 2025:	1 year or less		1-5 years		Over 5 years		Total		(Asset)/ Liability(1)
	(in millions)
Single name credit default swaps:
Investment grade(2)	¥	185,770	¥	710,973	¥	175,920	¥	1,072,663	¥	(17,118)
Non-investment grade	32,574		126,652		7,425		166,651		1,382
Total	218,344		837,625		183,345		1,239,314		(15,736)
Index and basket credit default swaps:
Investment grade(2)	69,289		609,651		22,729		701,669		(8,753)
Not rated	—		129,858		7,632		137,490		(2,611)
Total	69,289		739,509		30,361		839,159		(11,364)
Total credit default swaps sold	¥	287,633	¥	1,577,134	¥	213,706	¥	2,078,473	¥	(27,100)


	Protection sold
	Maximum potential/Notional amount by expiration period								Fair value
At March 31, 2026:	1 year or less		1-5 years		Over 5 years		Total		(Asset)/ Liability(1)
	(in millions)
Single name credit default swaps:
Investment grade(2)	¥	192,331	¥	708,898	¥	93,811	¥	995,040	¥	(15,423)
Non-investment grade	43,745		111,568		4,950		160,263		2,858
Total	236,076		820,466		98,761		1,155,303		(12,565)
Index and basket credit default swaps:
Investment grade(2)	294,952		606,595		35,360		936,907		(8,553)
Not rated	—		270,342		9,363		279,705		(5,817)
Total	294,952		876,937		44,723		1,216,612		(14,370)
Total credit default swaps sold	¥	531,028	¥	1,697,403	¥	143,484	¥	2,371,915	¥	(26,935)

Notes:

(1)Fair value amounts are shown on a gross basis prior to cash collateral or counterparty netting.

(2)The MUFG Group considers ratings of Baa3/BBB- or higher to meet the definition of investment grade.

Single name credit default swaps—Single name credit default swap protects the buyer against the loss of principal on a bond or loan in case of a default by the issuer. The protection buyer pays a premium to the MUFG Group and is protected for the period of the credit default swap. As the seller of protection, the MUFG Group in turn will have to perform under a credit default swap if a credit event as defined under the contracts occurs. In order to provide an indication of the current payment/performance risk of the credit default swaps, the external credit ratings, primarily those provided by Moody’s and Standard & Poor’s (“S&P”), of the underlying reference entity of the credit default swaps are disclosed.

Index and basket credit default swaps—Index and basket credit default swaps are credit default swaps that reference multiple names through underlying baskets or portfolios of single name credit default swaps. Typically, in the event of a default on one of the underlying names, the MUFG Group, as the seller of protection, will have to pay a pro-rata portion of the total notional amount of the credit default index or basket contract. In order to provide an indication of the current payment/performance risk of these credit default swaps, the rating scale based upon internal ratings, which generally correspond to ratings defined by primarily Moody’s and S&P, of the underlying reference entities comprising the basket or index were calculated and disclosed.

The MUFG Group may economically hedge its exposure to credit derivatives by entering into offsetting derivative contracts. The carrying value and notional amounts of credit protection sold in which the MUFG Group held purchased protection with identical

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underlying referenced entities were approximately ¥24 billion and ¥1,816 billion, respectively, at March 31, 2025, and approximately ¥26 billion and ¥2,160 billion, respectively, at March 31, 2026.

Collateral is held by the MUFG Group in relation to these instruments. Collateral requirements are determined at the counterparty level and cover numerous transactions and products as opposed to individual contracts.

Credit Risk, Liquidity Risk and Credit-risk-related Contingent Features

Certain derivative instruments held by the MUFG Group contain provisions that require the MUFG Group’s debt to maintain an investment grade credit rating from each of the major credit rating agencies. If the MUFG Group’s debt were to fall below investment grade, it would be in violation of these provisions, and the counterparties to the derivative instruments could request payments on early termination or demand immediate and ongoing full overnight collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position at March 31, 2025 and 2026 was approximately ¥0.6 trillion and ¥0.3 trillion, respectively, for which the MUFG Group has posted collateral of approximately ¥161 billion and ¥197 billion, respectively, in the normal course of business. The amount of additional collateral and early termination amount which could be requested if the MUFG Group’s debt falls below investment grade was ¥43 billion and ¥142 billion, respectively, as of March 31, 2025 and ¥59 billion and ¥74 billion, respectively, as of March 31, 2026.

24.OBLIGATIONS UNDER GUARANTEES AND OTHER OFF-BALANCE SHEET INSTRUMENTS

Obligations under Guarantees

The MUFG Group provides customers with a variety of guarantees and similar arrangements, including standby letters of credit, financial and performance guarantees, credit protection, liquidity facilities, other off-balance sheet credit-related support and similar instruments, in order to meet the customers’ financial and business needs. The tables below present the contractual or notional amounts of such guarantees at March 31, 2025 and 2026. The contractual or notional amounts of these instruments represent the maximum potential amounts of future payments without consideration of possible recoveries under recourse provisions or from collateral held or pledged.

For certain types of derivatives, such as written interest rate options and written currency options, the maximum potential future payments are unlimited. Accordingly, it is impracticable to estimate the maximum potential amount of future payments. As such, the notional amounts of the related contracts, other than the maximum potential payments, are included in the table.

The MUFG Group mitigates its credit risk exposure resulting from guarantees by utilizing various techniques, including collateralization in the form of cash, securities, and real estate properties based on management’s credit assessment of the guaranteed parties and the related credit profile. In order to manage the credit risk exposure, the MUFG Group also enters into sub-participation contracts with third parties who will fund a portion of the credit facility and bear its share of the loss to be incurred in the event that the customer fails to fulfill its obligations. The following table includes guarantees of ¥768.5 billion and ¥920.9 billion at March 31, 2025 and 2026, respectively, which are syndicated out to third parties. The contractual or notional amounts summarized in the following table do not necessarily bear any direct relationship to the future actual credit exposure, primarily because of risk management techniques of the MUFG Group.

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	Maximum potential/ Contractual or Notional amount		Amount by expiration period
At March 31, 2025:			1 year or less		1-5 years		Over 5 years
	(in billions)
Standby letters of credit and financial guarantees	¥	5,992	¥	4,857	¥	982	¥	153
Performance guarantees	4,851		3,480		1,235		136
Derivative instruments(1)	54,701		23,801		20,040		10,860
Liabilities of trust accounts	21,236		13,762		794		6,680
Other	10		10		—		—
Total	¥	86,790	¥	45,910	¥	23,051	¥	17,829

	Maximum potential/ Contractual or Notional amount		Amount by expiration period
At March 31, 2026:			1 year or less		1-5 years		Over 5 years
	(in billions)
Standby letters of credit and financial guarantees	¥	6,452	¥	5,130	¥	1,165	¥	157
Performance guarantees	5,748		4,362		1,232		154
Derivative instruments(1)	60,851		26,991		22,818		11,042
Liabilities of trust accounts	21,496		14,087		1,315		6,094
Other	9		—		9		—
Total	¥	94,556	¥	50,570	¥	26,539	¥	17,447

Note:

(1)Credit derivatives sold by the MUFG Group are excluded from this presentation.

Nature of Guarantee Contracts

Standby letters of credit and financial guarantees generally include an obligation of an issuer or a designated third-party to guarantee the performance of the customer to the beneficiary under the terms of contracts such as lending contracts and other similar financial transactions. The MUFG Group is required to make payments to the guaranteed parties in the event that the customers fail to fulfill the obligations under the contracts. The guarantees whose contractual maturities are over 5 years are mainly comprised of guarantees of housing loans.

Performance guarantees are contracts that contingently require the MUFG Group to make payments to the guaranteed party based on another party’s failure to perform under an obligating agreement, except financial obligation. For example, performance guarantees include guarantees of completion of construction projects.

Derivative instruments that are deemed to be included within the definition of guarantees as prescribed in the guidance on guarantees include certain written options and credit default swaps. In order for the MUFG Group to determine if those derivative instruments meet the definition of guarantees, as prescribed in the guidance on guarantees, the MUFG Group has to track whether the counterparties are actually exposed to losses that will result from the adverse change in the underlying. Accordingly, the MUFG Group has disclosed information on all credit default swaps and certain written options for which there is a possibility of meeting the definition of guarantees as prescribed in the guidance on guarantees, regardless of whether the counterparties have assets or liabilities related to the underlying of the derivatives. However, credit derivatives sold by the MUFG Group at March 31, 2025 and 2026 are excluded from this presentation, as they are disclosed in Note 23.

Liabilities of trust accounts represent the trustee’s potential responsibility for temporary payments to creditors of liabilities of trust accounts making use of funds of the MUFG Group, unless there are certain agreements with trust creditors that have provisions limiting the MUFG Group’s exposure as a trustee to the trust account assets. A trust may incur external liabilities to obtain certain services during the terms of the trust arrangement. While in principle, any liabilities of a trust are payable by the trust account and its beneficiaries. A trustee’s responsibility may be interpreted to encompass temporary payments for the trust account liabilities when the trust account does not maintain sufficient liquidity available for such liabilities unless the agreement with trust creditors limits the trustee’s exposure to the trust account assets. Liabilities of trust accounts principally includes obligations to return collateral under

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security lending transactions. The MUFG Group has experienced no significant losses on such responsibilities and its exposure to the risk associated with the temporary payments is judged to be remote because trust account liabilities are generally covered by the corresponding trust account assets. The MUFG Group continuously monitors the liabilities of trust accounts and assesses the trust account’s ability to perform its obligations to prevent any unfavorable outcomes; the MUFG Group claims its recourse for its temporary payments against the trust account assets and the beneficiaries.

Carrying Amount

At March 31, 2025 and 2026, the carrying amounts of the liabilities related to guarantees and similar instruments set forth above were ¥1,329,100 million and ¥1,260,160 million, respectively, which are included in Other liabilities and Trading account liabilities. The guarantees and similar instruments comprising the largest components of the total were options sold in the amount of ¥1,255,657 million and ¥1,166,474 million as of March 31, 2025 and 2026, respectively. Credit derivatives sold by the MUFG Group at March 31, 2025 and 2026 are excluded from this presentation, as they are disclosed in Note 23. In addition, Other liabilities include an allowance for off-balance sheet instruments of ¥62,262 million and ¥53,965 million at March 31, 2025 and 2026, respectively, related to these transactions.

Performance Risk

The MUFG Group monitors performance risk of its guarantees using the same credit rating system utilized for estimating probabilities of default with its loan portfolio. The MUFG Group’s credit rating system is consistent with both the method of evaluating credit risk under Basel III and those of third-party credit rating agencies. On certain underlying referenced credits or entities, ratings are not available. Such referenced credits are included in the “Not rated” category in the following tables.

Presented in the tables below is the maximum potential amount of future payments classified based upon internal credit ratings as of March 31, 2025 and 2026. The determination of the maximum potential future payments is based on the notional amount of the guarantees without consideration of possible recoveries under recourse provisions or from collateral held or pledged. Such amounts do not represent the anticipated losses, if any, on these guarantees.


			Amount by borrower grade
At March 31, 2025:	Maximum potential/ Contractual or Notional amount		Normal		Close Watch(1)		Likely to become Bankrupt or Legally/ Virtually Bankrupt(2)		Not rated
	(in billions)
Standby letters of credit and financial guarantees	¥	5,992	¥	5,694	¥	282	¥	14	¥	2
Performance guarantees	4,851		4,734		45		23		49
Total	¥	10,843	¥	10,428	¥	327	¥	37	¥	51

			Amount by borrower grade
At March 31, 2026:	Maximum potential/ Contractual or Notional amount		Normal		Close Watch(1)		Likely to become Bankrupt or Legally/ Virtually Bankrupt(2)		Not rated
	(in billions)
Standby letters of credit and financial guarantees	¥	6,452	¥	6,336	¥	91	¥	19	¥	6
Performance guarantees	5,748		5,559		61		10		118
Total	¥	12,200	¥	11,895	¥	152	¥	29	¥	124

Notes:

(1)Borrowers classified as Close Watch represent those that require close monitoring as the borrower has begun to exhibit elements of potential concern with respect to its business performance and financial condition, the borrower has begun to exhibit elements of serious concern with respect to its business performance and financial condition, including business problems requiring long-term solutions, or loans contractually past due 90 days or more for special reasons.

(2)Borrowers classified as Likely to become Bankrupt or Legally/Virtually Bankrupt represent those that have a higher probability of default than those categorized as Close Watch due to serious debt repayment problems with poor progress in achieving restructuring plans, the borrower being considered virtually bankrupt with no prospects for an improvement in business operations, or the borrower being legally bankrupt with no prospects for continued business operations because of non-payment, suspension of business, voluntary liquidation or filing for legal liquidation.

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The guarantees the MUFG Group does not classify based upon internal credit ratings are as follows.

The MUFG Group records all derivative contracts at fair value. Aggregate market risk limits have been established, and market risk measures are routinely monitored against these limits. The MUFG Group also manages its exposure to these derivative contracts through a variety of risk mitigation strategies, including, but not limited to, offsetting economic hedge positions. The MUFG Group expects the risk of loss to be remote and believes that the notional amounts of the derivative contracts generally exceed its exposure.

Liabilities of trust accounts represent the trustee’s potential responsibility for temporary payments to creditors of liabilities of trust accounts using funds of the MUFG Group. The MUFG Group has experienced no significant losses on such responsibilities and its exposure to the risk associated with the temporary payments is judged to be remote because trust account liabilities are generally covered by the corresponding trust account assets.

Other Off-balance Sheet Instruments

In addition to obligations under guarantees and similar arrangements set forth above, the MUFG Group issues other off-balance sheet instruments to meet the financial needs of its customers and for purposes other than trading. Such off-balance sheet instruments consist of lending-related commitments, including commitments to extend credit and commercial letters of credit that the MUFG Group provides to meet the financing needs of its customers. Once the MUFG Group issues these off-balance sheet instruments, the MUFG Group is required to extend credit to or make certain payments to the customers or beneficiaries specified pursuant to the underlying contracts unless otherwise provided in the contracts. Since many of these commitments expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Substantially all of our off-balance sheet instruments is comprised of commitments to extend credit at March 31, 2026, and approximately 63% of these commitments will expire within one year, 32% from one year to five years and 5% after five years. The table below presents the contractual amounts with regard to the other off-balance sheet instruments at March 31, 2025 and 2026:


	2025		2026
	(in billions)
Commitments to extend credit	¥	96,370	¥	106,737
Commercial letters of credit	717		966
Commitments to make investments(1)	718		1,738

Note:

(1)Commitments to make investments include a contract to purchase equity shares of SFL, amounting to ¥712.9 billion which includes the purchase consideration for the shares and acquisition-related costs, translated into Japanese yen at the exchange rate as of March 31, 2026. See Note 33 for further information.

Commitments to extend credit, which generally have fixed expiration dates or other termination clauses, are binding agreements to lend to customers. Commitments are different from guarantees in that the commitments are generally revocable or have provisions that enable the MUFG Group to avoid payments in the event of violations of any conditions of the contracts and certain deterioration of the potential borrowers’ financial condition.

Commercial letters of credit, generally used for trade transactions, are typically secured by the underlying goods. The MUFG Group continually monitors the type and amount of collateral and other securities, and requires counterparties to provide additional collateral or guarantors as necessary.

Commitments to make investments are legally binding contracts such as to make equity investments in investee companies and additional contributions to corporate recovery or private equity investment funds in accordance with limited partnership agreements. Some of these funds, in which the MUFG Group has significant variable interests, are described in Note 25.

25.VARIABLE INTEREST ENTITIES

In the normal course of business, the MUFG Group has financial interests and other contractual obligations in various entities which may be deemed to be VIEs such as asset-backed conduits, various investment funds, special purpose entities created for structured financing, repackaged instruments, entities created for the securitization of the MUFG Group’s assets and trust arrangements.

The following tables present the assets and liabilities of consolidated VIEs recorded on the accompanying consolidated balance sheets at March 31, 2025 and 2026:

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Consolidated VIEs	Consolidated assets
At March 31, 2025:	Total		Cash and due from banks		Interest-earning deposits in other banks		Trading account assets		Investment securities		Loans		All other assets
	(in millions)
Asset-backed conduits	¥	7,814,826	¥	57,908	¥	11,001	¥	87,129	¥	1,094,698	¥	6,531,210	¥	32,880
Investment funds	2,255,725		8,623		48,396		420,259		90,580		—		1,687,867
Special purpose entities created for structured financing	313,346		—		14,509		—		—		158,337		140,500
Repackaged instruments	377,261		5,500		—		203,970		142,283		15,000		10,508
Securitization of the MUFG Group’s assets	10,113,082		—		174		—		—		10,100,566		12,342
Trust arrangements	3,618,564		—		—		740,514		1,661,663		1,216,343		44
Other	237,291		1,897		6,050		8,024		38,657		3,997		178,666
Total consolidated assets before elimination	24,730,095		73,928		80,130		1,459,896		3,027,881		18,025,453		2,062,807
The amounts eliminated in consolidation	(2,241,877)		(65,287)		(57,994)		(80,669)		(549,600)		(1,316,204)		(172,123)
Total consolidated assets	¥	22,488,218	¥	8,641	¥	22,136	¥	1,379,227	¥	2,478,281	¥	16,709,249	¥	1,890,684


	Consolidated liabilities
	Total		Deposits		Other short-term borrowings		Long-term debt		All other liabilities
	(in millions)
Asset-backed conduits	¥	7,756,296	¥	—	¥	5,928,518	¥	1,453,912	¥	373,866
Investment funds	1,581,746		—		1,533,915		9,148		38,683
Special purpose entities created for structured financing	170,180		—		—		131,594		38,586
Repackaged instruments	340,464		—		—		222,733		117,731
Securitization of the MUFG Group’s assets	10,123,630		—		—		10,120,219		3,411
Trust arrangements	3,618,686		1,715,116		1,054,466		—		849,104
Other	288,690		—		650		244,285		43,755
Total consolidated liabilities before elimination	23,879,692		1,715,116		8,517,549		12,181,891		1,465,136
The amounts eliminated in consolidation	(16,567,315)		(651)		(4,084,517)		(11,771,730)		(710,417)
The amount of liabilities with recourse to the general credit of the MUFG Group	(6,723,403)		(1,714,465)		(4,391,003)		(39,244)		(578,691)
Liabilities of consolidated VIEs for which creditors or beneficial interest holders do not have recourse to the general credit of the MUFG Group	¥	588,974	¥	—	¥	42,029	¥	370,917	¥	176,028

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Consolidated VIEs	Consolidated assets
At March 31, 2026:	Total		Cash and due from banks		Interest-earning deposits in other banks		Trading account assets		Investment securities		Loans		All other assets
	(in millions)
Asset-backed conduits	¥	8,922,649	¥	53,316	¥	75,805	¥	117,138	¥	1,177,647	¥	7,407,690	¥	91,053
Investment funds	2,594,045		13,852		126,008		486,434		155,850		8,596		1,803,305
Special purpose entities created for structured financing	455,483		—		36,871		—		—		154,176		264,436
Repackaged instruments	624,213		10,610		—		407,037		186,498		15,000		5,068
Securitization of the MUFG Group’s assets	10,426,490		—		5,214		—		—		10,408,497		12,779
Trust arrangements	3,470,784		—		—		841,838		1,492,127		1,135,013		1,806
Other	244,306		759		6,179		10,025		38,847		3,285		185,211
Total consolidated assets before elimination	26,737,970		78,537		250,077		1,862,472		3,050,969		19,132,257		2,363,658
The amounts eliminated in consolidation	(2,656,206)		(64,624)		(146,357)		(364,140)		(480,000)		(1,379,136)		(221,949)
Total consolidated assets	¥	24,081,764	¥	13,913	¥	103,720	¥	1,498,332	¥	2,570,969	¥	17,753,121	¥	2,141,709


	Consolidated liabilities
	Total		Deposits		Other short-term borrowings		Long-term debt		All other liabilities
	(in millions)
Asset-backed conduits	¥	8,817,422	¥	—	¥	6,938,430	¥	1,451,724	¥	427,268
Investment funds	1,689,048		—		1,672,537		10,409		6,102
Special purpose entities created for structured financing	252,679		—		2,942		161,464		88,273
Repackaged instruments	549,130		—		—		259,523		289,607
Securitization of the MUFG Group’s assets	10,436,676		—		65,272		10,366,557		4,847
Trust arrangements	3,469,081		1,599,365		954,117		—		915,599
Other	303,931		—		427		263,121		40,383
Total consolidated liabilities before elimination	25,517,967		1,599,365		9,633,725		12,512,798		1,772,079
The amounts eliminated in consolidation	(17,735,513)		(274)		(4,862,028)		(12,040,212)		(832,999)
The amount of liabilities with recourse to the general credit of the MUFG Group	(7,148,540)		(1,599,091)		(4,720,173)		(77,575)		(751,701)
Liabilities of consolidated VIEs for which creditors or beneficial interest holders do not have recourse to the general credit of the MUFG Group	¥	633,914	¥	—	¥	51,524	¥	395,011	¥	187,379

In general, the creditors or beneficial interest holders of consolidated VIEs have recourse not only to the assets of those VIEs of which they are creditors or beneficial interest holders, but also to other assets of the MUFG Group, since the MUFG Group is also contractually required to provide credit enhancement or program-wide liquidity to these VIEs.

The following tables present the total assets of non-consolidated VIEs, the maximum exposure to loss resulting from the MUFG Group’s involvement with non-consolidated VIEs and the assets and liabilities which relate to the MUFG’s variable interests in non-consolidated VIEs at March 31, 2025 and 2026:

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Non-consolidated VIEs					On-balance sheet assets										On-balance sheet liabilities
At March 31, 2025:	Total assets		Maximum exposure		Total		Trading account assets		Investment securities		Loans		All other assets		Total		All other liabilities
	(in millions)
Asset-backed conduits	¥	31,849,272	¥	9,236,883	¥	7,249,130	¥	27,429	¥	2,221,035	¥	5,000,666	¥	—	¥	1,118	¥	1,118
Investment funds	219,612,579		7,752,891		4,707,766		189,956		184,096		4,099,421		234,293		11,684		11,684
Special purpose entities created for structured financing	78,811,641		8,945,829		6,134,534		111,542		78,102		5,926,307		18,583		235,770		235,770
Repackaged instruments	8,162,093		4,431,963		4,282,437		2,120,466		1,439,837		559,491		162,643		—		—
Other	128,487,667		4,400,339		3,094,247		302,927		59,766		2,618,862		112,692		11,609		11,609
Total	¥	466,923,252	¥	34,767,905	¥	25,468,114	¥	2,752,320	¥	3,982,836	¥	18,204,747	¥	528,211	¥	260,181	¥	260,181

Non-consolidated VIEs					On-balance sheet assets										On-balance sheet liabilities
At March 31, 2026:	Total assets		Maximum exposure		Total		Trading account assets		Investment securities		Loans		All other assets		Total		All other liabilities
	(in millions)
Asset-backed conduits	¥	34,688,573	¥	9,656,449	¥	8,072,236	¥	71,011	¥	2,149,099	¥	5,852,126	¥	—	¥	941	¥	941
Investment funds	312,054,610		12,881,258		8,626,932		254,174		380,439		7,824,583		167,736		20,056		20,056
Special purpose entities created for structured financing	101,692,424		12,595,698		8,206,530		83,649		85,771		8,000,862		36,248		307,841		307,841
Repackaged instruments	10,564,253		5,348,759		5,216,341		2,578,422		1,972,939		664,980		—		42		42
Other	112,998,738		4,402,204		3,081,121		168,724		64,693		2,724,187		123,517		11,396		11,396
Total	¥	571,998,598	¥	44,884,368	¥	33,203,160	¥	3,155,980	¥	4,652,941	¥	25,066,738	¥	327,501	¥	340,276	¥	340,276

Maximum exposure to loss on each type of entity is determined based on the carrying amount of any on-balance sheet assets and any off-balance sheet liabilities held, net of any recourse liabilities. Therefore, the maximum exposure to loss represents the maximum loss the MUFG Group could possibly incur at each balance sheet date and does not reflect the likelihood of such a loss being incurred. The difference between the amount of on-balance sheet assets and the maximum exposure to loss primarily comprises the remaining undrawn commitments.

Analysis of Each Transaction Category

Asset-Backed Conduits

This category primarily comprises the following:

Multi-Seller Conduits (MUFG-sponsored Asset-Backed Commercial Paper (“ABCP”) Conduits and Other ABCP Conduits)

The MUFG Group administers several conduits under asset-backed financing programs under which the conduits purchase financial assets, primarily trade accounts receivable, from the MUFG Group’s customers by issuing short-term financing instruments, primarily commercial paper, to third-party investors. Under the asset-backed financing programs, the MUFG Group acts as an agent for the conduits, which enter into agreements with the MUFG Group’s customers where the customers transfer financial assets to the conduits in exchange for monetary consideration. The MUFG Group also underwrites commercial paper for the conduits that is secured by the assets held by them and provides program-wide liquidity and credit enhancement facilities to the conduits. The MUFG Group receives fees related to the services it provides to the conduits and the program-wide liquidity and credit enhancement. The MUFG Group considers itself to be the primary beneficiary of the multi-seller conduits because, as an agent and sponsor, the MUFG Group has the power to direct activities of the conduits that most significantly impact the conduits’ economic performance and also has the obligation to absorb losses of the conduits that could potentially be significant to the conduits through the program-wide liquidity and credit enhancement. Consequently, the MUFG Group consolidates the conduits.

In addition to the entities described above, the MUFG Group participates as a provider of financing to several conduits that are administered by third parties. Most of these conduits are established under a multi-seller asset-backed financing program and the MUFG Group provides financing along with other financial institutions. With respect to these conduits, the MUFG Group is not considered as the primary beneficiary because the MUFG Group’s participation in the conduits is only to provide financing along with

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other third-party financial institutions and it does not have the power to direct the activities of the conduits. Consequently, the MUFG Group does not consolidate the conduits.

Asset-Backed Conduits (MUFG-sponsored Asset-Backed Loan (“ABL”) Programs and Other Programs)

The MUFG Group administers several conduits under asset-backed financing programs where the MUFG Group provides financing to fund the conduits’ purchases of financial assets, comprising primarily trade accounts receivable, from its customers. The MUFG Group acts as an agent and sponsor for the conduits, which enter into agreements with the MUFG Group’s customers where the customers transfer assets to the conduits in exchange for monetary consideration. In most cases, the MUFG Group is the sole provider of financing that is secured by the assets held by the conduits. The MUFG Group considers itself to be the primary beneficiary of the conduits because, as an agent and sponsor for the conduits, the MUFG Group has the power to direct activities of the conduits, such as selection of the assets to be purchased and condition for purchases, and debt collection from the original obligors, that most significantly impact the conduits’ economic performance, and also has the obligation to absorb losses of the conduits that could potentially be significant to the conduits through financing it provides. Consequently, the MUFG Group consolidates the conduits.

In addition, the MUFG Group is involved with entities, which take in most cases the form of a trust, where originators of financial assets, which primarily comprise lease receivables, entrust the assets with trust banks and receive beneficial certificates of trusts in exchange. The originators then transfer the beneficiary certificates to the MUFG Group in exchange for cash. The originators of the financial assets entrusted continue to be involved in the assets as servicers. Because the originators are deemed to have the power to direct activities of the entities that most significantly impact the entities’ economic performance through their role as a servicer, the MUFG Group is not considered as the primary beneficiary of these entities. Consequently, the MUFG Group does not consolidate these entities.

The MUFG Group also participates as a provider of financing to the ABL programs that are managed by third parties. The MUFG Group is not considered as the primary beneficiary of the entities used in these programs as the MUFG Group’s participation in the entities is only to provide financing along with other third parties and it does not have the power to direct the activities of the entities. Consequently, the MUFG Group does not consolidate the entities used in these programs.

Investment Funds

This category primarily comprises the following:

Corporate Recovery Funds

These entities are established by fund managers, which are unrelated to the MUFG Group, for the purpose of investing in debt or equity instruments issued by distressed companies. After investment, the fund managers work closely with the management of the entities and attempt to enhance corporate value by various means including corporate restructuring and reorganization. Their exit strategies include, among others, sales to others and initial public offerings.

Typically, these entities take the form of a limited partnership which is entirely funded by general and limited partner interests. These partnerships are considered as VIEs unless the limited partners hold substantive kick-out rights or participating rights.

The MUFG Group mostly serves as a limited partner in corporate recovery funds that are considered as VIEs, and does not have the power to direct the activities of these funds that most significantly impact the economic performance of these funds. Therefore, the MUFG Group does not consider itself to be the primary beneficiary of these funds and does not consolidate them.

Private Equity Funds

The MUFG Group is involved in venture capital funds that are established by either the MUFG Group’s entities or fund managers unrelated to the MUFG Group. These entities 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.

These entities typically take the form of a limited partnership and usually are entirely funded by general and limited partner interests. These partnerships are considered as VIEs unless the limited partners hold substantive kick-out rights or participating rights.

The MUFG Group participates in these partnerships as a general partner or limited partner. The MUFG Group consolidates these funds, which are considered as VIEs, if the MUFG Group has the power to direct the activities of these funds that most

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significantly impact the economic performance of these funds, and also has the obligation to absorb losses of these funds that could potentially be significant to these funds or the right to receive benefits from these funds that could potentially be significant to these funds.

Investment Trusts

The MUFG Group invests in investment trusts that are professionally managed collective investment schemes which pool money from many investors and invest in, among others, equity and debt securities. Most of these funds take the form of a trust where there is a separation in investment decisions, which is assumed by an investment manager who has no investment in a trust, and ownership through beneficiary interests issued by a trust are owned by investors. Therefore, these investment trusts are considered as VIEs. The MUFG Group consolidates these funds if the MUFG Group has the power to direct the activities of these funds that most significantly impact the economic performance of these funds, and also has the obligation to absorb losses of these funds that could potentially be significant to these funds or the right to receive benefits from these funds that could potentially be significant to these funds.

Buy-out Financing Vehicles

The MUFG Group provides financing to buy-out vehicles. The buy-out vehicles are established by equity investments from, among others, private equity funds or the management of target companies for the purpose of purchasing the equity shares of target companies. Along with other financial institutions, the MUFG Group provides financing to the buy-out vehicles in the form of loans. While the buy-out vehicles’ equity is normally substantive in its amount and the rights and obligations associated with it, in some cases, the vehicles have equity that is insufficient to absorb expected variability primarily because the amount provided by equity investors is nominal in nature. These vehicles engage in non-investment activities, and are considered as VIEs. In most cases, the MUFG Group’s participation in these vehicles is only to provide financing to the vehicles, and the power to direct the activities that most significantly impact the economic performance of the vehicles is held by the management of target companies. As a result, the MUFG Group is not considered as the primary beneficiary of these vehicles and does not consolidate them.

Special Purpose Entities Created for Structured Financing

This category primarily comprises the following:

Leasing Transaction Vehicles

These entities are established to raise funds to purchase or build equipment and machinery including, among others, commercial vessels, passenger and cargo aircraft, and production equipment for the purpose of leasing them to lessees who use the equipment and machinery as part of their business operations. These entities typically take the form of a limited partnership or a special purpose company where they fund their purchases of equipment and machinery via senior and subordinate financing. When entities take the form of a limited partnership, these entities are considered as VIEs unless limited partners hold substantive kick-out rights or participating rights. The entities considered as VIEs are typically funded only by senior financing or there is a guarantee provided to the senior financing by parties unrelated to those providing the senior financing. In most cases, the MUFG Group participates in the senior financing and does not participate in the subordinate financing or provide guarantees. Generally, because the MUFG Group’s participation in these entities is only to provide financing, it does not have the power to direct the activities of the entities that most significantly impact the economic performance of the entities. Therefore, the MUFG Group does not consider itself to be the primary beneficiary of these entities and does not consolidate them, except for limited circumstances where the MUFG Group is directly involved with the structuring of the transaction and has the power to direct the activities of the entities that most significantly impact the economic performance of the entities.

Project Financing Vehicles

These entities are established to raise funds in connection with, among others, production of natural resources, construction and development of urban infrastructure (including power plants and grids, highways and ports), and the development of real estate properties or complexes. These projects typically involve special purpose companies which issue senior and subordinate financing to raise funds in connection with the various projects. The subordinate financing is usually provided by parties that will ultimately make use of the assets constructed or developed. By contrast, the senior financing is typically provided by financial institutions, including the MUFG Group. Because the MUFG Group’s participation in these entities is only to provide financing, it does not have the power to direct the activities that most significantly impact the economic performance of these entities. Therefore, the MUFG Group is not considered as the primary beneficiary of these entities and does not consolidate them.

Sale-and-Leaseback Vehicles

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The MUFG Group is involved with vehicles that acquire assets, primarily real estate, from the MUFG Group’s customers and other unrelated parties where the sellers of the assets continue to use the assets through leaseback agreements. These vehicles typically take the form of a limited partnership, and are considered as VIEs unless the limited partners hold substantive kick-out rights or participating rights. The subordinated financing of these vehicles considered as VIEs is usually provided by the sellers of the assets, with the MUFG Group providing senior financing for the vehicles. Because the MUFG Group’s participation in these vehicles is only to provide senior financing, it does not have the power to direct the activities that most significantly impact the economic performance of these vehicles. Therefore, the MUFG Group is not considered as the primary beneficiary and does not consolidate them.

Securitization of Client Real Estate Properties

These entities are established for the purpose of securitizing real estate properties held by the MUFG Group’s customers. In most cases, these entities take the form of a limited partnership or a special purpose company. When entities take the form of a limited partnership, these entities are considered as VIEs unless the limited partners hold substantive kick-out rights or participating rights. The entities considered as VIEs are typically funded by senior and subordinated financing where the original owners of the real estate properties provide the subordinated financing, primarily in the form of partnership interests or subordinated notes, and financial institutions, including the MUFG Group, provide senior financing in the form of senior loans. Because the MUFG Group’s participation in these vehicles is only to provide a portion of senior financing, it does not have the power to direct the activities that most significantly impact the economic performance of these entities. Therefore, the MUFG Group is not considered as the primary beneficiary and does not consolidate these entities.

Repackaged Instruments

This category primarily comprises the following:

Investments in Financially-Engineered Products

The MUFG Group is involved in special purpose entities that have been established to issue financial products through the engineering and repackaging of existing financial instruments such as collateralized debt obligations (“CDOs”). These entities are considered as VIEs because the holders of the equity investment at risk do not have the power to direct the activities that most significantly impact their economic performance. These entities are generally arranged and managed by parties that are not related to the MUFG Group. The MUFG Group’s involvement with the entities arranged and managed by third parties is for investment purposes. In these cases, the MUFG Group participates as one of many other investors and the MUFG Group typically holds investments in senior tranches or tranches with high credit ratings. Therefore, the MUFG Group does not have the power to direct activities of the entities that most significantly impact the entities’ economic performance, and thus is not considered as the primary beneficiary of these entities and does not consolidate these entities.

In certain instances, special purpose entities have been established and are managed by the MUFG Group. The MUFG Group’s involvement includes establishing and arranging the transaction and underwriting securities issued by the entities to general investors. For these entities, the MUFG Group has the power to direct activities that most significantly impact the economic performance and it has the obligation to absorb losses or receive benefits that could potentially be significant to the entities. As such, the MUFG Group considers itself as the primary beneficiary of these entities and consolidates them.

Investments in Securitized Financial Instruments

The MUFG Group holds investments in special purpose entities that issue securitized financial products. The assets held by the entities include credit card receivables and residential mortgage loans. These entities are established and managed by parties that are unrelated to the MUFG Group and the MUFG Group’s involvement with these entities is for its own investment purposes. In all cases, the MUFG Group participates as one of many other investors and the MUFG Group does not have the power to direct activities of the entities that most significantly impact the entities’ economic performance. Therefore, the MUFG Group is not considered as the primary beneficiary of these entities and does not consolidate them.

Securitization of the MUFG Group’s Assets

This category primarily comprises the following:

Securitization for issuing interests or financing

The MUFG Group establishes entities to securitize its own financial assets that include, among others, corporate and retail loans and lease receivables. The entities used for securitization, which typically take the form of a special purpose company or a trust, are

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established by the MUFG Group and, in most cases, issue senior and subordinate interests or financing. After securitization, the MUFG Group typically continues to service securitized assets as a servicer. The MUFG Group may also retain subordinate interests or financing or other interests. The MUFG Group is considered as the primary beneficiary and consolidates the entities used for securitization since it has the obligation to absorb losses through subordinate interests, and also has the power for determining and implementing policies as servicer that give it the ability to manage the entities’ assets that become delinquent or are in default in order to improve the economic performance of the entities.

Eligible beneficiary interests in housing loan trusts

The MUFG Group establishes trusts, which acquire the MUFG Group’s housing loans and in turn issue beneficiary interests to the MUFG Group, to pledge these beneficiary interests as collateral for borrowings from the Bank of Japan, as a result of the decision by the Bank of Japan on June 30, 2016 to accept these beneficial interests as collateral in the same way as it does for Japanese national government bonds. The MUFG Group is considered as the primary beneficiary and consolidates the trusts since it has the obligation to absorb losses through beneficiary interests, and also has the power for determining and implementing policies as servicer that give it the ability to manage housing loans owned by the trusts that become delinquent or are in default in order to improve the economic performance of the trusts.

Trust Arrangements

The MUFG Group offers, primarily through Mitsubishi UFJ Trust and Banking, a variety of trust products and services including securities investment trusts, pension trusts and trusts used as securitization vehicles. In a typical trust arrangement, however, the MUFG Group manages and administers assets on behalf of the customers in an agency, fiduciary and trust capacity and does not assume risks associated with the entrusted assets. The trusts are generally considered as VIEs because the trust beneficiaries, who provide all of the equity at risk, usually do not have power to direct the activities that most significantly impact its economic performance in the arrangements. The MUFG Group, however, is not considered as the primary beneficiary, mainly, except for the case mentioned below, because it merely receives fees for compensation for its services on terms that are customary for these activities and the fees are insignificant relative to the total amount of the trusts’ economic performance and variability. Therefore, the MUFG Group does not consolidate these entities.

With respect to the jointly operated designated money in trusts, Mitsubishi UFJ Trust and Banking pools money from investors and determines how best to invest it. In addition, certain investors, such as money reserve funds and investment funds, place excess funds in the jointly operated designated money trusts. Mitsubishi UFJ Trust and Banking typically invests in high-quality financial assets, including government bonds, corporate bonds and corporate loans including loans to Mitsubishi UFJ Trust and Banking and receives fees as compensation for services. In this role as a sponsor of these trusts’ Mitsubishi UFJ Trust and Banking provides guarantees under which it is required to compensate a loss on the stated principal of the trust beneficial interests. Mitsubishi UFJ Trust and Banking is considered as the primary beneficiary of these trusts’ because it is exposed to a potentially significant amount of losses and also has the power to direct activities of these trusts’ that most significantly impact their economic performance. Upon consolidation of the trusts, the certificates issued to the investors are accounted for as deposit liabilities as the products are structured and marketed to customers similar to Mitsubishi UFJ Trust and Banking’s term deposit products.

Mitsubishi UFJ Trust and Banking considers the likelihood of incurring losses on the stated principal guarantee to be highly remote. In the trusts’ operational history that extends over decades, the stated principal guarantee has never been called upon. The variability in fair value of the net assets of the trusts has been primarily affected by the fluctuations in interest rates, and the majority of such variability has been absorbed by investors or trust beneficiaries.

Other

This category primarily comprises the following:

Financing Vehicles of the MUFG Group’s Customers

The MUFG Group is involved with several entities that are established by the MUFG Group’s customers. These entities borrow funds from financial institutions and extend loans to their group entities. These entities effectively work as fund-raising vehicles for their respective group entities and enable the groups to achieve efficient financing by integrating their financing activities into a single entity. In all cases, the MUFG Group is not considered as the primary beneficiary because the MUFG Group’s participation in these entities is only to provide financing, and the customers effectively hold the power to direct activities of these entities that most significantly impact the economic performance of the entities. Consequently, the MUFG Group does not consolidate these entities.

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Funding Vehicles

The MUFG Group has established several wholly-owned off-shore vehicles which issue securities, typically preferred stock that is fully guaranteed by the MUFG Group, to investors unrelated to the MUFG Group to fund purchases of debt instruments issued by the MUFG Group. These entities are considered as VIEs because the MUFG Group’s investment in the vehicles’ equity is not considered at risk and substantive as the entire amount raised by the vehicles was used to purchase debt instruments issued by the MUFG Group. Because the MUFG Group does not have variable interests in these vehicles, the MUFG Group does not consolidate these entities.

Troubled Borrowers

During the normal course of business, the borrowers from the MUFG Group may experience financial difficulties and sometimes enter into certain transactions that require the MUFG Group to assess whether they would be considered as VIEs due to their difficult financial position. While in most cases such borrowers are not considered as VIEs when the transactions take place, in limited circumstances they are considered as VIEs due to insufficient equity investment at risk. In all cases, the MUFG Group is not considered as the primary beneficiary because the power to direct activities that most significantly impact the economic performance of the troubled borrowers resides with the management of the troubled borrowers, and the MUFG Group, as a lender, does not have power over or assume any role in management. Therefore, the MUFG Group does not consolidate these troubled borrowers.

26.CONTINGENT LIABILITIES

Repayment of Excess Interest

The MUFG Group maintains an allowance for repayment of excess interest based on an analysis of past experience of reimbursement of excess interest, borrowers’ profile, recent trend of borrowers’ claims for reimbursement, and management future forecasts. Management believes that the provision for repayment of excess interest is adequate and the allowance is at the appropriate amount to absorb probable losses, so that the impact of future claims for reimbursement of excess interest will not have a material adverse effect on the MUFG Group’s financial position and results of operations. The allowance for repayment of excess interest established by MUFG’s consumer finance subsidiaries, which was included in Other liabilities, was ¥5,439 million and ¥11,427 million as of March 31, 2025 and 2026, respectively. Provision (reversal) related to the allowance is included in Other non-interest expenses in the accompanying consolidated statements of income. For the fiscal years ended March 31, 2024, 2025 and 2026, there was a negative impact of nil, ¥15,852 million and ¥2,603 million, respectively, on Equity in earnings of equity method investees—net in the accompanying consolidated statements of income.

Litigation

In the ordinary course of business, the MUFG Group is subject to various litigation and regulatory matters. In accordance with applicable accounting guidance, the MUFG Group establishes an accrued liability for loss contingencies arising from litigation and regulatory matters when they are determined to be probable in their occurrence and the probable loss amount can be reasonably estimated. Based upon current knowledge and consultation with counsel, management believes the eventual outcome of such litigation and regulatory matters, where losses are probable and the probable loss amounts can be reasonably estimated, would not have a material adverse effect on the MUFG Group’s financial position, results of operations or cash flows. Additionally, management believes the amount of loss that is reasonably possible, but not probable, from various litigation and regulatory matters is not material to the MUFG Group’s financial position, results of operations or cash flows.

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27.FEES AND COMMISSIONS INCOME

Disaggregation of Contract Revenue

Details of fees and commissions income for the fiscal years ended March 31, 2024, 2025 and 2026 were as follows:


	2024		2025		2026
	(in millions)
Fees and commissions on deposits	¥	36,692	¥	36,218	¥	34,359
Fees and commissions on remittances and transfers	151,919		160,638		167,964
Fees and commissions on foreign trading business	74,772		83,547		92,673
Fees and commissions on credit card business	252,706		276,605		277,759
Fees and commissions on security-related services	278,776		361,442		433,531
Fees and commissions on administration and management services for investment funds	318,057		340,007		351,721
Trust fees	129,393		140,491		155,685
Guarantee fees(1)	51,229		55,141		57,963
Insurance commissions	69,725		76,479		96,776
Fees and commissions on real estate business	68,439		71,619		76,382
Other fees and commissions(2)	478,957		583,540		677,456
Total	¥	1,910,665	¥	2,185,727	¥	2,422,269

Notes:

(1)Guarantee fees are not within the scope of the guidance on revenue from contracts with customers.

(2)Other fees and commissions include non-refundable financing related fees that are not within the scope of the guidance on revenue from contracts with customers.

The following is an explanation of the relationship with revenue information disclosed for each reportable segment.

These revenues from contracts with customers are related to various reportable segments disclosed in Note 29. The business segment information is derived from the internal management reporting system used by management to measure the performance of the MUFG Group’s business segments. In addition, the business segment information is primarily based on the financial information prepared in accordance with Japanese GAAP as adjusted in accordance with internal management accounting rules and practices. Further, the format and information as disclosed in Note 29 are not consistent with the accompanying consolidated financial statements prepared on the basis of U.S. GAAP. For example, management does not use information on segments’ gross revenue to allocate resources and assess performance.

The majority of fees and commissions on deposits are attributable to Retail & Digital Business Group (“R&D”) and Global Commercial Banking Business Group (“GCB”) with no significant concentration in any particular segments.

The business activities relevant to fees and commissions on remittances and transfers are attributable to R&D, Commercial Banking & Wealth Management Business Group (“CWM”), Japanese Corporate Investment Banking Business Group (“JCIB”) and Global Corporate Investment Banking Business Group (“GCIB”) with no significant concentration in any particular segments.

The business activities relevant to fees and commissions on foreign trading business are attributable to R&D, CWM, JCIB and GCIB with no significant concentration in any particular segments.

The business activities relevant to fees and commissions on credit card business are substantially attributable to R&D and GCB with no significant concentration in any particular segments.

The majority of fees and commissions on security-related services are from the business activities relevant to CWM, JCIB, with R&D and GCIB providing a smaller impact.

The business activities relevant to fees and commissions on administration and management services for investment funds are substantially attributable to Asset Management & Investor Service Business Group (“AM/IS”).

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The business activities relevant to trust fees are attributable to AM/IS.

The majority of insurance commissions are from the business activities relevant to R&D, CWM, and GCB with no significant concentration in any particular segments.

The business activities relevant to fees and commissions on real estate business are attributable to CWM and JCIB with no significant concentration in any particular segments.

28.TRADING ACCOUNT PROFITS AND LOSSES

The MUFG Group performs trading activities through market-making, sales and arbitrage, while maintaining risk levels within appropriate limits in accordance with its risk management policy.

The MUFG Group has trading account securities and trading derivative assets and liabilities for this purpose. In addition, the trading account securities include foreign currency-denominated debt securities such as foreign government or official institution bonds, corporate bonds and mortgage-backed securities, which are mainly comprised of securities measured at fair value under the fair value option.

Net trading profits (losses) for the fiscal years ended March 31, 2024, 2025 and 2026 were comprised of the following:


	2024		2025		2026
	(in millions)
Interest rate and other derivative contracts	¥	(951,913)	¥	(95,783)	¥	(1,703,103)
Trading account securities, excluding derivatives	248,000		128,045		1,052,530
Trading account profits (losses)—net	(703,913)		32,262		(650,573)
Foreign exchange derivative contracts(1)	(410,656)		446,992		(760,095)
Net trading profits (losses)	¥	(1,114,569)	¥	479,254	¥	(1,410,668)

Note:

(1)Gains (losses) on foreign exchange derivative contracts are included in Foreign exchange gains (losses)—net in the accompanying consolidated statements of income. Foreign exchange gains (losses)—net in the accompanying consolidated statements of income are also comprised of foreign exchange losses other than derivative contracts and foreign exchange gains related to the fair value option.

For further information on the methodologies and assumptions used to estimate fair value, see Note 31, which also shows fair values of trading account securities by major category. Note 23 discloses further information regarding the derivative-related impact on Trading account profits (losses)—net by major category.

29.BUSINESS SEGMENTS

The reportable segments of the MUFG Group are subject to the periodical review by the Executive Committee, which represents the MUFG Group’s chief operating decision maker (“CODM"), to determine the allocation of management resources and assess performance. The members of the Executive Committee act collectively as the MUFG Group's CODM. The MUFG Group has established its business units according to the characteristics of customers and the nature of the underlying business. Each business unit engages in business activities based on comprehensive strategies developed for and aimed at respective targeted customers and businesses. The business segment information is primarily based on the financial information prepared in accordance with Japanese GAAP as adjusted in accordance with internal management accounting rules and practices. Accordingly, the format and information are not consistent with the accompanying consolidated financial statements prepared on the basis of U.S. GAAP. A reconciliation is provided for the total amounts of segments’ operating profit with income before income tax expense under U.S. GAAP. The MUFG Group does not use information on the segments’ total assets to allocate its resources and assess performance. Accordingly, business segment information on total assets is not presented. However, in order to ensure more efficient management of resources, and to strengthen controls on profits and losses in each business group, the MUFG Group allocates fixed assets of both MUFG Bank on a stand-alone basis and Mitsubishi UFJ Trust and Banking on a stand-alone basis to each business unit. Accordingly, such fixed assets allocated to business groups are presented below.

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The MUFG Group's CODM predominantly uses operating profit (loss) for each segment in the annual budget and forecasting process. It considers budget-to-actual variances on a quarterly basis when making decisions about the allocation of operating and capital resources to each segment. The significant segment expense information regularly provided to the MUFG Group’s CODM is the operating expenses.

See Note 30 for financial information relating to the MUFG Group’s operations by geographic area. The geographic financial information is consistent with the basis of the accompanying consolidated financial statements.

The MUFG Group integrated the operations of its consolidated subsidiaries into seven business segments.—Retail & Digital, Commercial Banking & Wealth Management, Japanese Corporate & Investment Banking, Global Commercial Banking, Asset Management & Investor Services, Global Corporate & Investment Banking, and Global Markets.

The following is a brief explanation of the MUFG Group’s business segments:

Global Commercial Banking Business Group—Covers the retail and commercial banking businesses of Krungsri and Bank Danamon. This business group offers a comprehensive array of financial products and services such as loans, deposits, fund transfers, investments and asset management services for local retail, small and medium-sized enterprise, and corporate customers across the Asia-Pacific region.

Effective April 1, 2025, the MUFG Group made modifications to its internal management accounting rules and practices, including adjustments made to reflect changes in retail customer attributes, changes in the recording method applied to foreign exchange swaps in the Chinese market, changes in the intercompany settlement rates applied to transactions between the corporate centers and overseas branches, and reallocation of certain expenses related to restricted stock units in the United States among business groups.

These modifications had the following impact on its previously reported business segment information for the fiscal years ended March 31, 2024 and 2025:

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•reducing the operating profits of the Global Markets Business Group, the Global Corporate & Investment Banking Business Group, the Japanese Corporate & Investment Banking Business Group, and the Global Commercial Banking Business Group by ¥8.5 billion, ¥6.8 billion, ¥2.7 billion and ¥0.1 billion, respectively, for the fiscal year ended March 31, 2024;

Prior period business segment information has been recast to enable comparison between the relevant amounts for the fiscal years ended March 31, 2024, 2025 and 2026.

Starting from the fiscal year ended March 31, 2025, the fiscal year of Krungsri that is included in the Global Commercial Banking Business Group, has been changed from the previous January to December period to an April to March period for consolidation purposes. Given the treatment of reporting lag changes under Japanese GAAP, there is no retrospective application of the change shown in the table below. In connection with this change, the segment amounts prepared in accordance with Japanese GAAP for the fiscal year ended March 31, 2025, reflect Krungsri's amounts for the fifteen-month period of January 1, 2024 to March 31, 2025.

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	Customer Business														Global Markets Business Group		Other		Total
	Retail & Digital Business Group		Commercial Banking & Wealth Management Business Group		Japanese Corporate & Investment Banking Business Group		Global Commercial Banking Business Group		Asset Management & Investor Services Business Group		Global Corporate & Investment Banking Business Group		Total
			(in billions)
Fiscal year ended March 31, 2024:
Net revenue:	¥	842.6	¥	626.8	¥	974.7	¥	684.8	¥	432.3	¥	845.1	¥	4,406.3	¥	302.4	¥	41.5	¥	4,750.2
BK and TB(1):	319.4		420.3		795.3		29.1		118.6		763.1		2,445.8		12.2		108.0		2,566.0
Net interest income	248.1		199.5		488.7		29.3		14.7		398.7		1,379.0		85.5		152.4		1,616.9
Net fees	67.2		187.3		234.1		(0.1)		103.8		326.3		918.6		(13.3)		(19.9)		885.4
Other	4.1		33.5		72.5		(0.1)		0.1		38.1		148.2		(60.0)		(24.5)		63.7
Other than BK and TB	523.2		206.5		179.4		655.7		313.7		82.0		1,960.5		290.2		(66.5)		2,184.2
Operating expenses(2)	624.7		407.5		371.0		382.3		311.0		423.9		2,520.4		297.3		101.1		2,918.8
Operating profit (loss)	¥	217.9	¥	219.3	¥	603.7	¥	302.5	¥	121.3	¥	421.2	¥	1,885.9	¥	5.1	¥	(59.6)	¥	1,831.4
Fixed assets(3)	¥	243.8	¥	171.5	¥	169.3	¥	1.6	¥	21.3	¥	170.9	¥	778.4	¥	114.3	¥	502.3	¥	1,395.0
Increase in fixed assets(4)	¥	49.8	¥	35.8	¥	46.1	¥	0.5	¥	11.5	¥	32.5	¥	176.2	¥	28.2	¥	29.3	¥	233.7
Depreciation(4)	¥	23.3	¥	19.0	¥	42.5	¥	0.3	¥	9.1	¥	42.3	¥	136.5	¥	32.8	¥	12.3	¥	181.6
Fiscal year ended March 31, 2025:
Net revenue:	¥	941.7	¥	727.2	¥	1,024.7	¥	969.3	¥	534.2	¥	910.1	¥	5,107.2	¥	(339.5)	¥	40.6	¥	4,808.3
BK and TB(1):	390.2		499.7		835.8		27.0		139.3		811.1		2,703.1		(622.3)		72.0		2,152.8
Net interest income	307.4		268.0		512.3		28.0		25.8		423.7		1,565.2		103.1		88.6		1,756.9
Net fees	78.8		195.0		253.7		(0.9)		113.5		353.4		993.5		(24.8)		(14.7)		954.0
Other	4.0		36.7		69.8		(0.1)		—		34.0		144.4		(700.6)		(1.9)		(558.1)
Other than BK and TB	551.5		227.5		188.9		942.3		394.9		99.0		2,404.1		282.8		(31.4)		2,655.5
Operating expenses(2)	663.6		429.2		388.1		531.3		398.7		449.2		2,860.1		318.3		64.2		3,242.6
Operating profit (loss)	¥	278.1	¥	298.0	¥	636.6	¥	438.0	¥	135.5	¥	460.9	¥	2,247.1	¥	(657.8)	¥	(23.6)	¥	1,565.7
Fixed assets(3)	¥	267.5	¥	187.8	¥	171.7	¥	2.1	¥	23.1	¥	160.9	¥	813.1	¥	87.8	¥	482.3	¥	1,383.2
Increase in fixed assets(4)	¥	50.3	¥	37.2	¥	45.0	¥	0.6	¥	7.7	¥	26.5	¥	167.3	¥	25.5	¥	39.6	¥	232.4
Depreciation(4)	¥	33.0	¥	21.0	¥	42.2	¥	0.3	¥	7.6	¥	39.1	¥	143.2	¥	30.3	¥	13.0	¥	186.5
Fiscal year ended March 31, 2026:
Net revenue:	¥	1,064.6	¥	866.9	¥	1,125.9	¥	904.2	¥	621.8	¥	1,081.5	¥	5,664.9	¥	306.9	¥	19.5	¥	5,991.3
BK and TB(1):	458.0		619.5		923.3		34.0		159.7		970.8		3,165.3		(18.7)		(1.2)		3,145.4
Net interest income	365.4		366.2		539.9		35.8		38.7		477.3		1,823.3		56.7		33.9		1,913.9
Net fees	87.7		214.4		307.4		(1.7)		121.1		444.3		1,173.2		(15.3)		(23.9)		1,134.0
Other	4.9		38.9		76.0		(0.1)		(0.1)		49.2		168.8		(60.1)		(11.2)		97.5
Other than BK and TB	606.6		247.4		202.6		870.2		462.1		110.7		2,499.6		325.6		20.7		2,845.9
Operating expenses(2)	778.7		458.9		418.9		516.6		469.3		501.2		3,143.6		342.4		139.9		3,625.9
Operating profit (loss)	¥	285.9	¥	408.0	¥	707.0	¥	387.6	¥	152.5	¥	580.3	¥	2,521.3	¥	(35.5)	¥	(120.4)	¥	2,365.4
Fixed assets(3)	¥	333.1	¥	199.9	¥	176.6	¥	2.4	¥	23.6	¥	163.5	¥	899.1	¥	95.4	¥	488.3	¥	1,482.8
Increase in fixed assets(4)	¥	82.3	¥	44.8	¥	44.8	¥	0.9	¥	8.2	¥	28.5	¥	209.5	¥	34.2	¥	41.8	¥	285.5
Depreciation(4)	¥	41.1	¥	24.2	¥	40.6	¥	0.3	¥	7.8	¥	36.1	¥	150.1	¥	23.3	¥	9.4	¥	182.8

Notes:

(1)“BK and TB” is a sum of MUFG Bank on a stand-alone basis (BK) and Mitsubishi UFJ Trust and Banking on a stand-alone basis (TB).

(2)Operating expenses primarily include salaries and employee benefits, outsourcing expenses, and amortization of intangible assets.

(4)These amounts are related to the fixed assets of BK and TB included in the table above.

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Reconciliation

As set forth above, the measurement basis and the income and expense items of the internal management reporting system are different from the accompanying consolidated statements of income. Therefore, it is impracticable to present reconciliations of all of the business segments’ information, other than operating profit, to corresponding items in the accompanying consolidated statements of income.

A reconciliation of operating profit and fixed assets under the internal management reporting system for the fiscal years ended March 31, 2024, 2025 and 2026 above to income before income tax expense shown in the accompanying consolidated statements of income and the total amount of premises and equipment-net, intangible assets-net and goodwill are as follows:

Starting from the fiscal year ended March 31, 2025, the fiscal year of Krungsri has been changed from the previous January to December period to an April to March period for consolidation purposes. In connection with this change, the operating profit prepared in accordance with Japanese GAAP includes Krungsri's operating profit for the fifteen-month period of January 1, 2024 to March 31, 2025, while the income before income tax expense prepared in accordance with U.S. GAAP includes Krungsri's income before income tax expense for the twelve-month period of April 1, 2024 to March 31, 2025. The adjustment for the difference between the two is included in Other – net.


	2024		2025		2026
	(in billions)
Operating profit:	¥	1,831	¥	1,566	¥	2,365
Provision for credit losses	(259)		(122)		(226)
Trading account losses—net	(1,073)		(160)		(644)
Equity investment securities gains (losses)—net	1,450		(706)		933
Debt investment securities gains (losses)—net	300		828		(127)
Foreign exchange gains (losses)—net	(426)		70		(433)
Equity in earnings of equity method investees—net	464		669		871
Impairment of goodwill	—		(150)		(97)
Impairment of intangible assets	(15)		(14)		(8)
Reversal of (provision for) off-balance sheet credit instruments	(33)		1		23




Other—net	(361)		(186)		(148)
Income before income tax expense	¥	1,878	¥	1,796	¥	2,509
Fixed assets:	¥	1,395	¥	1,383	¥	1,483
U.S. GAAP adjustments and other	1,269		1,498		1,643
Premises and equipment-net, Intangible assets-net and Goodwill	¥	2,664	¥	2,881	¥	3,126

30.FOREIGN ACTIVITIES

Foreign operations include the business conducted by overseas offices, as well as international business conducted from domestic offices, principally several international banking-related divisions of MUFG Bank’s and Mitsubishi UFJ Trust and Banking’s head office in Tokyo, and involve various transactions with debtors and customers residing outside Japan. Close integration of the MUFG Group’s foreign and domestic activities makes precise estimates of the amounts of assets, liabilities, income and expenses attributable to foreign operations difficult and necessarily subjective. Assets, income and expenses attributable to foreign operations are allocated to geographical areas based on the domicile of the debtors and customers.

Generally, interest rates with respect to funds borrowed and loaned between domestic and foreign operations are based on prevailing money market rates appropriate for the transactions. In general, the MUFG Group has allocated all direct expenses and a proportionate share of general and administrative expenses to income derived from foreign loans and other transactions by the MUFG Group’s foreign operations. The following table sets forth estimated total assets at March 31, 2024, 2025 and 2026, and estimated total revenue, total expense, income (loss) before income tax expense (benefit) and net income (loss) attributable to Mitsubishi UFJ Financial Group for the respective fiscal years then ended:

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	Domestic		Foreign								Total
	Japan		United States of America		Europe		Asia/ Oceania excluding Japan		Other areas(1)
	(in millions)
Fiscal year ended March 31, 2024:
Total revenue(2)	¥	3,824,225	¥	2,578,487	¥	598,995	¥	2,079,886	¥	951,111	¥	10,032,704
Total expense(3)	2,695,960		2,210,134		692,351		1,849,365		706,668		8,154,478
Income (loss) before income tax expense (benefit)	1,128,265		368,353		(93,356)		230,521		244,443		1,878,226
Net income (loss) attributable to Mitsubishi UFJ Financial Group	930,001		456,755		(239,793)		(77,661)		256,567		1,325,869
Total assets at end of fiscal year	257,518,304		61,312,679		23,578,110		39,486,295		15,925,182		397,820,570
Fiscal year ended March 31, 2025:
Total revenue(2)	¥	2,905,946	¥	3,179,967	¥	1,321,415	¥	2,173,457	¥	1,255,324	¥	10,836,109
Total expense(3)	3,015,746		2,141,975		1,014,249		2,038,743		829,820		9,040,533
Income (loss) before income tax expense (benefit)	(109,800)		1,037,992		307,166		134,714		425,504		1,795,576
Net income (loss) attributable to Mitsubishi UFJ Financial Group	(343,745)		903,188		219,445		115,817		372,228		1,266,933
Total assets at end of fiscal year	261,732,514		66,393,043		23,652,847		38,556,319		15,605,488		405,940,211
Fiscal year ended March 31, 2026:
Total revenue(2)	¥	4,407,092	¥	3,283,133	¥	956,645	¥	2,078,650	¥	1,141,744	¥	11,867,264
Total expense(3)	3,737,025		1,999,441		1,123,782		1,792,496		705,025		9,357,769
Income (loss) before income tax expense (benefit)	670,067		1,283,692		(167,137)		286,154		436,719		2,509,495
Net income (loss) attributable to Mitsubishi UFJ Financial Group	270,426		1,196,575		(277,182)		132,051		407,489		1,729,359
Total assets at end of fiscal year	254,932,299		80,069,950		28,386,626		42,930,411		19,262,366		425,581,652

Notes:

(1)Other areas primarily include Canada, Latin America, the Caribbean and the Middle East.

(2)Total revenue is comprised of Interest income and Non-interest income.

(3)Total expense is comprised of Interest expense, Provision for credit losses and Non-interest expense.

The following is an analysis of certain asset and liability accounts related to foreign activities at March 31, 2025 and 2026:


	2025		2026
	(in millions)
Cash and due from banks	¥	786,831	¥	820,940
Interest-earning deposits in other banks	12,055,034		16,926,174
Total	¥	12,841,865	¥	17,747,114
Trading account assets	¥	36,473,239	¥	42,593,213
Investment securities	¥	12,773,480	¥	13,835,608
Loans—net of unearned income, unamortized premiums and deferred loan fees	¥	56,713,215	¥	67,245,022
Deposits	¥	65,410,708	¥	69,774,657
Funds borrowed:
Call money, funds purchased	¥	155,975	¥	53,215
Payables under repurchase agreements	16,039,173		15,473,811
Payables under securities lending transactions	32,194		30,653
Other short-term borrowings	6,941,877		7,905,018
Long-term debt	1,864,473		2,015,345
Total	¥	25,033,692	¥	25,478,042
Trading account liabilities	¥	8,026,912	¥	9,682,798

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31.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

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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 creditworthiness. 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 restrictions 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.

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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, 2025 and 2026:

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At March 31, 2025	Level 1		Level 2		Level 3		Fair 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 bonds	6,140,726		754,529		—		6,895,255
Japanese prefectural and municipal bonds	—		288,472		—		288,472
Foreign government and official institution bonds	11,602,182		774,775		—		12,376,957
Corporate bonds	4,755		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 assets	58,729		20,597,301		77,897		20,733,927
Interest rate contracts	12,565		14,860,818		22,298		14,895,681
Foreign exchange contracts	1,416		5,592,040		27,345		5,620,801
Equity contracts	44,748		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 securities	23,867,794		6,347,624		197,750		30,413,168
Japanese national government and Japanese government agency bonds	21,152,903		930,954		—		22,083,857
Japanese prefectural and municipal bonds	—		309,998		—		309,998
Foreign government and official institution bonds	2,714,891		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 securities	3,779,986		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, 2025	Level 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 liabilities	48,534		20,995,246		67,027		21,110,807
Interest rate contracts	28,532		15,998,172		44,232		16,070,936
Foreign exchange contracts	2,197		4,900,685		2,026		4,904,908
Equity contracts	17,805		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

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At March 31, 2026	Level 1		Level 2		Level 3		Fair Value
	(in millions)
Assets
Trading account assets:
Trading securities(1)	¥	23,016,668	¥	18,618,405	¥	2,990,622	¥	44,625,695
Debt securities
Japanese national government and Japanese government agency bonds	6,934,540		506,060		—		7,440,600
Japanese prefectural and municipal bonds	—		289,034		—		289,034
Foreign government and official institution bonds	11,607,994		1,295,434		—		12,903,428
Corporate bonds	6,171		2,702,368		114,479		2,823,018
Residential mortgage-backed securities	—		10,515,437		—		10,515,437
Asset-backed securities	—		1,346,557		2,108,594		3,455,151
Other debt securities	—		57,986		614,248		672,234
Commercial paper	—		1,085,758		—		1,085,758
Equity securities(2)	4,467,963		819,771		153,301		5,441,035
Trading derivative assets	158,262		38,676,721		82,622		38,917,605
Interest rate contracts	81,059		31,975,609		25,461		32,082,129
Foreign exchange contracts	8,451		6,586,486		27,607		6,622,544
Equity contracts	68,752		70,564		8,598		147,914
Commodity contracts	—		680		20,302		20,982
Credit derivatives	—		43,380		421		43,801
Other(8)	—		2		233		235
Trading loans(3)	—		29,024		—		29,024
Investment securities:
Available-for-sale debt securities	16,264,022		6,161,695		208,624		22,634,341
Japanese national government and Japanese government agency bonds	13,317,045		599,498		—		13,916,543
Japanese prefectural and municipal bonds	—		166,451		—		166,451
Foreign government and official institution bonds	2,946,977		1,652,249		—		4,599,226
Corporate bonds	—		976,179		5,081		981,260
Residential mortgage-backed securities	—		1,017,007		15		1,017,022
Asset-backed securities	—		1,451,519		148,803		1,600,322
Other debt securities	—		298,792		54,725		353,517
Equity securities	4,178,047		71,940		143,460		4,393,447
Marketable equity securities(9)	4,178,047		71,940		—		4,249,987
Nonmarketable equity securities(4)	—		—		143,460		143,460
Other(5)	3,051,633		1,852,710		9,405		4,913,748
Total	¥	46,668,632	¥	65,410,495	¥	3,434,733	¥	115,513,860

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At March 31, 2026	Level 1		Level 2		Level 3		Fair Value
	(in millions)
Liabilities
Trading account liabilities:
Trading securities sold, not yet purchased	¥	609,730	¥	1,047	¥	—	¥	610,777
Trading derivative liabilities	51,133		40,366,071		76,678		40,493,882
Interest rate contracts	17,435		33,693,313		52,967		33,763,715
Foreign exchange contracts	5,426		6,530,669		2,001		6,538,096
Equity contracts	28,272		71,415		968		100,655
Commodity contracts	—		—		20,303		20,303
Credit derivatives	—		70,674		338		71,012
Other(8)	—		—		101		101
Obligation to return securities received as collateral(6)	8,130,080		338,246		—		8,468,326
Other(7)	—		29,054		(89,163)		(60,109)
Total	¥	8,790,943	¥	40,734,418	¥	(12,485)	¥	49,512,876

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 ¥277,252 million and ¥349,587 million at March 31, 2025 and 2026, respectively. The amounts of unfunded commitments related to these private equity and other funds were ¥276,433 million and ¥405,058 million at March 31, 2025 and 2026, 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, 2025 were ¥40,477 million and ¥56,334 million, respectively, and those at March 31, 2026 were ¥47,248 million and ¥84,795 million, respectively. The amounts of unfunded commitments related to these real estate funds and private equity and other funds at March 31, 2025 were nil and ¥13,650 million, respectively, and those at March 31, 2026 were nil and ¥1,775 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 and ¥69,713 million at March 31, 2025 and 2026, respectively. The contractual restriction of these securities is 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 were 0.0-3.0 years and 0.0-2.7 years at March 31, 2025 and 2026, respectively. 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.

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, 2025 and 2026. 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.

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Fiscal year ended March 31, 2025:	March 31, 2024		Total gains (losses) for the period																			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		Purchases		Issues		Sales		Settlements		Transfers into Level 3			Transfers out of Level 3
	(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 bonds	101		(1)			—		—		—		—		(100)		—			—			—		—
Corporate bonds	—		(812)			—		99,190		—		(1,374)		—		78,460		(5)	—			175,464		(773)
Asset-backed securities	1,352,755		(10,400)			(9,121)		853,526		—		(23,091)		(347,162)		—			—			1,816,507		(19,985)
Other debt securities	536,846		(1,034)			—		76,290		—		—		—		—			—			612,102		(1,034)
Equity securities	152,252		6,279			—		36,645		—		(2,906)		(49,861)		214			—			142,623		(440)
Trading derivatives—net	58,906		(5,605)		(2)	1,807		669		(312)		—		(23,328)		10,690			(31,957)			10,870		9,395		(2)
Interest rate contracts—net	39,486		(18,435)			(706)		—		—		—		(6,230)		(3,954)			(32,095)		(5)	(21,934)		(9,311)
Foreign exchange contracts—net	10,198		(244)			1,890		—		—		—		(1,505)		14,644		(5)	336			25,319		6,113
Equity contracts—net	8,258		13,373			627		—		—		—		(15,457)		—			(198)			6,603		12,892
Commodity contracts—net	(45)		30			(4)		—		—		—		(15)		—			—			(34)		32
Credit derivatives—net	660		(212)			—		—		—		—		(121)		—			—			327		(211)
Other—net(8)	349		(117)			—		669		(312)		—		—		—			—			589		(120)
Investment securities:
Available-for-sale debt securities	204,805		(12,852)		(3)	12,998		2,533		—		—		(9,872)		1,631			(1,493)			197,750		199		(3)
Corporate bonds	5,172		83			(67)		2,493		—		—		(2,240)		1,631			(1,493)			5,579		34
Residential mortgage-backed securities	15		—			—		—		—		—		—		—			—			15		—
Asset-backed securities	132,951		—			9,333		—		—		—		—		—			—			142,284		9,333
Other debt securities	66,667		(12,935)			3,732		40		—		—		(7,632)		—			—			49,872		(9,168)
Equity securities	87,814		4,842		(3)	447		14,898		—		(6,696)		—		1,608			(2,151)			100,762		1,944		(3)
Nonmarketable equity securities	87,814		4,842			447		14,898		—		(6,696)		—		1,608			(2,151)			100,762		1,944
Other	79,154		(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)	¥	—		¥	—		¥	—	¥	—
Other	6,486		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

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Fiscal year ended March 31, 2026:	March 31, 2025		Total gains (losses) for the period					Purchases		Issues		Sales		Settlements		Transfers into Level 3		Transfers out of Level 3			March 31, 2026		Change in unrealized gains (losses) for assets and liabilities still held at March 31, 2026
			Included in earnings			Included in other comprehensive income
	(in millions)
Assets
Trading account assets:
Trading securities(1)	¥	2,746,696	¥	161,058	(2)	¥	27,672	¥	1,021,739	¥	—	¥	(75,862)	¥	(818,214)	¥	15	¥	(72,482)		¥	2,990,622	¥	204,939	(2)
Debt securities
Corporate bonds	175,464		10,876			—		5,002		—		(4,381)		—		—		(72,482)		(5)	114,479		10,690
Asset-backed securities	1,816,507		103,284			27,672		996,075		—		(69,997)		(764,947)		—		—			2,108,594		145,676
Other debt securities	612,102		40,797			—		2,000		—		(1,283)		(39,368)		—		—			614,248		41,511
Equity securities	142,623		6,101			—		18,662		—		(201)		(13,899)		15		—			153,301		7,062
Trading derivatives—net	10,870		(798)		(2)	765		188		(330)		—		(9,617)		8,654		(3,788)			5,944		(2,630)		(2)
Interest rate contracts—net	(21,934)		(12,552)			(644)		—		—		—		831		1,479		5,314			(27,506)		(8,488)
Foreign exchange contracts—net	25,319		2,500			1,032		—		—		—		(1,584)		7,175		(8,836)			25,606		3,653
Equity contracts—net	6,603		9,678			377		5		—		—		(8,734)		—		(299)			7,630		2,640
Commodity contracts—net	(34)		15			—		—		—		—		(15)		—		33			(1)		—
Credit derivatives—net	327		(129)			—		—		—		—		(115)		—		—			83		(129)
Other—net(8)	589		(310)			—		183		(330)		—		—		—		—			132		(306)
Investment securities:
Available-for-sale debt securities	197,750		(178)		(3)	11,425		1,722		—		—		(57)		1,103		(3,141)			208,624		11,397		(3)
Corporate bonds	5,579		(215)			128		1,684		—		—		(57)		1,103		(3,141)			5,081		63
Residential mortgage-backed securities	15		—			—		—		—		—		—		—		—			15		—
Asset-backed securities	142,284		—			6,519		—		—		—		—		—		—			148,803		6,519
Other debt securities	49,872		37			4,778		38		—		—		—		—		—			54,725		4,815
Equity securities	100,762		(8,610)		(3)	3,764		61,126		—		(4,099)		—		1,836		(11,319)			143,460		(5,933)		(3)
Nonmarketable equity securities	100,762		(8,610)			3,764		61,126		—		(4,099)		—		1,836		(11,319)			143,460		(5,933)
Other	8,100		641		(7)	276		768		—		—		(380)		—		—			9,405		917		(7)
Total	¥	3,064,178	¥	152,113		¥	43,902	¥	1,085,543	¥	(330)	¥	(79,961)	¥	(828,268)	¥	11,608	¥	(90,730)		¥	3,358,055	¥	208,690
Liabilities
Other	¥	(49,328)	¥	37,213	(4)	¥	(656)	¥	—	¥	4,333	¥	—	¥	(7,731)	¥	(50)	¥	170		¥	(89,163)	¥	39,516	(4)
Total	¥	(49,328)	¥	37,213		¥	(656)	¥	—	¥	4,333	¥	—	¥	(7,731)	¥	(50)	¥	170		¥	(89,163)	¥	39,516

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 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 (out of) Level 3 for Corporate bonds were mainly caused by the increased (decreased) 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)For the fiscal year ended March 31, 2025, transfers out of Level 3 for long-term debt in Other were mainly caused by the increase in the observability of the key inputs to the valuation models and a corresponding 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:

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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 securities	1,684,080		Internal model(4)	Asset correlations	2.0%	2.0	%
				Discount factor	1.2%~1.3%	1.3	%
				Prepayment rate	28.0%	28.0	%
				Probability of default	0.0%~99.0%	—		(3)
				Recovery rate	60.4%	60.4	%
Other debt securities	659,534		Discounted cash flow	Liquidity 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 model	Correlation 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—net	25,319		Option model	Correlation 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—net	3,524		Option model	Correlation 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	%

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At March 31, 2026

Fair value(1)

Valuation technique

Significant unobservable inputs

Range

Weighted

average(2)

(in millions)

Assets

Trading securities and Investment securities:

Corporate bonds

107,198

Discounted cash flow

Liquidity premium

０.0%

Asset-backed securities

1,940,331

Internal model(4)

Asset correlations

2.0%

Discount factor

1.3%~1.4%

1.3%

Prepayment rate

20.7%

Probability of default

0.0%~92.5%

—

(3)

Recovery rate

59.4%

Other debt securities

667,093

Discounted cash flow

Liquidity premium

1.6%~3.2%

2.4%

At March 31, 2026

Fair value(1)

Valuation technique

Significant unobservable inputs

Range

Median(2)

(in millions)

Trading derivatives—net:

Interest rate contracts—net

(27,506)

Option model

Correlation between interest rates

34.1%~57.2%

55.4%

Correlation between interest rate and foreign exchange rate

15.4%~51.0%

25.1%

Volatility

0.7%~68.1%

56.8%

Foreign exchange contracts—net

25,606

Option model

Correlation between interest rates

46.7%~57.2%

51.9%

Correlation between interest rate and foreign exchange rate

19.2%~51.0%

29.6%

Equity contracts—net

7,630

Option model

Correlation between foreign exchange rate and equity

43.2%

Correlation between equities

12.0%~90.6%

46.1%

Volatility

20.1%~42.0%

29.0%

Notes:

(1)The fair value as of March 31, 2025 and 2026 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.

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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, 2025 and 2026:

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	2025								2026
	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)	¥	—	¥	14,041	¥	49,830	¥	63,871	¥	—	¥	20,079	¥	21,227	¥	41,306
Loans	2,466		5,254		269,853		277,573		3,175		8,412		264,521		276,108
Loans held for sale	—		—		134,371		134,371		—		—		102,948		102,948
Collateral dependent loans	2,466		5,254		135,482		143,202		3,175		8,412		161,573		173,160
Premises and equipment	—		—		9,557		9,557		—		—		3,126		3,126
Intangible assets	—		—		5,449		5,449		—		—		3,062		3,062
Goodwill	—		—		161,758		161,758		—		—		242,644		242,644
Other assets	—		34,389		19,049		53,438		—		32,301		24,521		56,822
Investments in equity method investees(1)	—		27,745		2,057		29,802		—		26,039		2,191		28,230
Other	—		6,644		16,992		23,636		—		6,262		22,330		28,592
Total	¥	2,466	¥	53,684	¥	515,496	¥	571,646	¥	3,175	¥	60,792	¥	559,101	¥	623,068

Notes:

(1)Excludes certain investments valued at net asset value of ¥39,541 million and ¥41,152 million at March 31, 2025 and 2026, respectively. The unfunded commitments related to these investments are ¥34,847 million and ¥46,682 million at March 31, 2025 and 2026, 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, 2025 and 2026:


	2025		2026
	(in millions)
Investment securities	¥	29,409	¥	10,411
Loans	23,210		56,678
Loans held for sale	6,903		4,075
Collateral dependent loans	16,307		52,603
Premises and equipment	14,490		3,290
Intangible assets	13,057		5,658
Goodwill	150,089		97,475
Other assets	27,351		28,743
Investments in equity method investees	8,177		6,306
Other	19,174		22,437
Total	¥	257,606	¥	202,255

Investment securities for the fiscal years ended March 31, 2025 and 2026 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

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 MUFG Bank’s 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, 2024, 2025 and 2026 related to the eligible instruments for which the MUFG Group elected the fair value option:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


	2024						2025						2026
	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	¥	(173,290)	¥	2,176,389	¥	2,003,099	¥	1,636	¥	38,401	¥	40,037	¥	127,948	¥	1,931,494	¥	2,059,442
Total	¥	(173,290)	¥	2,176,389	¥	2,003,099	¥	1,636	¥	38,401	¥	40,037	¥	127,948	¥	1,931,494	¥	2,059,442
Financial liabilities:
Other short-term borrowings(1)	¥	3,690	¥	—	¥	3,690	¥	3,832	¥	—	¥	3,832	¥	1,332	¥	—	¥	1,332
Long-term debt(1)	(20,426)		—		(20,426)		10,120		—		10,120		3,686		—		3,686
Total	¥	(16,736)	¥	—	¥	(16,736)	¥	13,952	¥	—	¥	13,952	¥	5,018	¥	—	¥	5,018

Note:

(1)Changes in the value attributable to the instrument-specific credit risk related to those financial liabilities were not material.

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The following table presents the differences between the aggregate fair value and the aggregate remaining contractual principal balance outstanding as of March 31, 2025 and 2026 for long-term debt instruments for which the fair value option has been elected:


	2025						2026
	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	¥	156,302	¥	153,742	¥	(2,560)	¥	81,737	¥	79,698	¥	(2,039)
Total	¥	156,302	¥	153,742	¥	(2,560)	¥	81,737	¥	79,698	¥	(2,039)

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.

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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, 2025 and 2026:


	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 banks	104,707		104,707		—		104,707		—
Call loans and funds sold	1,676		1,676		—		1,676		—
Receivables under resale agreements	18,782		18,782		—		18,782		—
Receivables under securities borrowing transactions	5,701		5,701		—		5,701		—
Investment securities	23,272		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-bearing	212,633		212,643		—		212,643		—
Total deposits	249,453		249,463		—		249,463		—
Call money and funds purchased	5,017		5,017		—		5,017		—
Payables under repurchase agreements	43,664		43,664		—		43,664		—
Payables under securities lending transactions	718		718		—		718		—
Due to trust account and other short-term borrowings	28,229		28,229		—		28,229		—
Long-term debt	20,928		20,199		—		20,199		—
Other financial liabilities	9,038		9,038		—		9,038		—

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)


	Carrying amount		Estimated fair value
At March 31, 2026			Total		Level 1		Level 2		Level 3
	(in billions)
Financial assets:
Cash and due from banks	¥	4,367	¥	4,367	¥	4,367	¥	—	¥	—
Interest-earning deposits in other banks	86,003		86,003		—		86,003		—
Call loans and funds sold	2,170		2,170		—		2,170		—
Receivables under resale agreements	16,885		16,885		—		16,885		—
Receivables under securities borrowing transactions	5,493		5,493		—		5,493		—
Investment securities	26,013		24,893		14,567		8,483		1,843
Loans, net of allowance for credit losses(1)	143,562		142,235		3		112		142,120
Other financial assets(2)	12,774		12,774		—		12,774		—
Financial liabilities:
Deposits
Non-interest-bearing	¥	35,860	¥	35,860	¥	—	¥	35,860	¥	—
Interest-bearing	224,956		224,788		—		224,788		—
Total deposits	260,816		260,648		—		260,648		—
Call money and funds purchased	5,257		5,257		—		5,257		—
Payables under repurchase agreements	39,516		39,516		—		39,516		—
Payables under securities lending transactions	1,252		1,252		—		1,252		—
Due to trust account and other short-term borrowings	14,633		14,633		—		14,633		—
Long-term debt	21,870		21,018		—		21,018		—
Other financial liabilities	9,595		9,595		—		9,595		—

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 ¥4,564 billion and ¥5,462 billion at March 31, 2025 and 2026, 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, 2025 and 2026 was not material.

32.PARENT COMPANY ONLY FINANCIAL INFORMATION

Distributions of retained earnings of MUFG Bank and Mitsubishi UFJ Trust and Banking are restricted in order to meet the minimum capital adequacy requirements under the Banking Law. Additionally, retained earnings of these banking subsidiaries are restricted, except for approximately ¥6,225 billion and ¥6,702 billion, in accordance with the statutory reserve requirements under the Companies Act at March 31, 2025 and 2026, respectively. See Notes 19 and 21 for further information.

The Banking Law and related regulations restrict the ability of these banking subsidiaries to extend loans or credit to the parent company. Such loans or credits to the parent company are generally limited to 15% of the banking subsidiary’s consolidated total capital, as determined by the capital adequacy guidelines.

At March 31, 2025 and 2026, approximately ¥6,265 billion and ¥6,742 billion, respectively, of net assets of consolidated subsidiaries may be restricted as to payment of cash dividends and loans to the parent company.

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The following table presents the parent company only financial information of MUFG:

Condensed Balance Sheets


	As of March 31,
	2025		2026
	(in millions)
Assets:
Cash and interest-earning deposits with banking subsidiaries	¥	351,224	¥	367,685
Investments in subsidiaries and affiliated companies	19,152,808		20,408,001
Banking subsidiaries	12,206,015		12,654,475
Non-banking subsidiaries and affiliated companies	6,946,793		7,753,526
Loans to subsidiaries	12,205,955		13,862,833
Banking subsidiaries	11,740,181		13,577,333
Non-banking subsidiaries	465,774		285,500
Other assets	179,703		238,136
Total assets	¥	31,889,690	¥	34,876,655
Liabilities and Shareholders’ equity:
Short-term borrowings from banking subsidiaries	¥	1,127,981	¥	1,117,979
Long-term debt from non-banking subsidiaries and affiliated companies	16,113		55,758
Long-term debt	12,224,151		13,839,361
Other liabilities	235,959		290,424
Total liabilities	13,604,204		15,303,522
Total shareholders’ equity	18,285,486		19,573,133
Total liabilities and shareholders’ equity	¥	31,889,690	¥	34,876,655

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Condensed Statements of Income


	Fiscal years ended March 31,
	2024		2025		2026
	(in millions)
Income:
Dividends from subsidiaries and affiliated companies	¥	774,211	¥	1,306,837	¥	1,411,925
Banking subsidiaries	545,886		1,035,465		1,102,632
Non-banking subsidiaries and affiliated companies	228,325		271,372		309,293
Management fees from subsidiaries	34,393		35,633		41,322
Interest income from subsidiaries	371,860		374,230		395,318
Foreign exchange gains (losses)—net	451		(2,700)		(153)
Trading account losses—net	(40,379)		(50,367)		(17,045)

Other income	15,374		16,242		15,472
Total income	1,155,910		1,679,875		1,846,839
Expense:
Operating expenses	47,600		47,706		56,296
Interest expense to subsidiaries and affiliated companies	15,673		18,082		25,110
Interest expense	355,781		351,368		368,731
Other expense	6,229		1,804		3,803
Total expense	425,283		418,960		453,940
Equity in undistributed net income of subsidiaries and affiliated companies—net	589,812		6,408		348,297
Income before income tax expense	1,320,439		1,267,323		1,741,196
Income tax expense (benefit)	(5,430)		390		11,837
Net income	¥	1,325,869	¥	1,266,933	¥	1,729,359

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

Condensed Statements of Cash Flows


	Fiscal years ended March 31,
	2024		2025		2026
	(in millions)
Operating activities:
Net cash provided by operating activities	¥	839,937	¥	1,316,469	¥	1,402,113
Investing activities:
Proceeds from sales and dispositions of investments in subsidiaries and affiliated companies	865		—		—

Net decrease (increase) in loans to subsidiaries	(231,891)		1,916,662		(1,064,070)
Other—net	(8,787)		(13,231)		(14,446)
Net cash provided by (used in) investing activities	(239,813)		1,903,431		(1,078,516)
Financing activities:
Net decrease in short-term borrowings from subsidiaries	(6,025)		(157,654)		(10,002)
Proceeds from issuance of long-term debt	1,809,416		1,609,505		2,358,104
Repayment of long-term debt	(1,578,887)		(3,526,431)		(1,294,093)
Proceeds from sales of treasury stock	1		1		1
Payments for acquisition of treasury stock	(400,037)		(400,042)		(500,062)
Dividends paid	(439,755)		(532,977)		(848,402)
Other—net	(10,700)		(8,818)		(12,682)
Net cash provided by used in financing activities	(625,987)		(3,016,416)		(307,136)
Net increase (decrease) in cash and cash equivalents	(25,863)		203,484		16,461
Cash and cash equivalents at beginning of fiscal year	173,603		147,740		351,224
Cash and cash equivalents at end of fiscal year	¥	147,740	¥	351,224	¥	367,685

33.SUBSEQUENT EVENTS

Approval of Dividends

On June 26, 2026, the shareholders approved the payment of cash dividends of ¥51.0 per share of Common stock, totaling ¥576,849 million, that were payable on June 29, 2026, to the shareholders of record on March 31, 2026.

Repurchase of own shares

At the meeting of the Board of Directors of MUFG held on May 15, 2026, it was resolved to repurchase up to 45,000,000 shares of MUFG’s common stock by market purchases based on the discretionary dealing contract regarding repurchase of its own shares for approximately ¥100 billion, in aggregate, from May 18, 2026 to June 30, 2026. This repurchase plan allowed for the repurchase of the equivalent of up to 0.4% of the total number of common shares outstanding excluding its own shares, or of an aggregate repurchase amount of up to ¥100 billion. The purpose of the repurchase is to enhance the return of earnings to shareholders, to improve capital efficiency, and to implement flexible capital policies.

Acquisition of Shriram Finance Limited’s shares

On December 19, 2025, MUFG Bank entered into an investment agreement with SFL, one of India’s leading non-banking financial companies, and its major shareholders, Shriram Ownership Trust and Shriram Capital Private Limited, to acquire a 20.0% equity interest in SFL through a preferential allotment of newly issued shares.

As of March 31, 2026, MUFG Bank accounted for this investment agreement as a contract to purchase equity shares and recognized ¥25,111 million in Other assets in the accompanying consolidated balance sheets and in Unrealized gain on the contract to purchase equity shares of SFL in the accompanying consolidated statements of income and consolidated statements of cash flows.

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MITSUBISHI UFJ FINANCIAL GROUP, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

On April 8, 2026, MUFG Bank completed the investment in SFL in accordance with the agreement and will apply the equity method of accounting for this investment for the fiscal year ending March 31, 2027. The total cash outflow, including the purchase consideration for the shares and acquisition-related costs, amounted to ¥713,260 million. For the fiscal year ending March 31, 2027, MUFG Bank expects to recognize ¥122,587 million in earnings for the change in the fair value of the agreement based on changes in SFL’s share price as of March 31, 2026 and April 8, 2026, and expects to recognize the equity method investment for ¥860,958 million, including acquisition-related costs.

* * * * *

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EXHIBIT INDEX


Exhibit						Description

1(a)						Articles of Incorporation of Mitsubishi UFJ Financial Group, Inc., as amended on June 29, 2022 (English translation)*
1(b)						Board of Directors Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on June 25, 2015 (English translatio n)**
1(c)						Corporation Meetings Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on April 1, 2022 (English translation)***
1(d)						Share Handling Regulations of Mitsubishi UFJ Financial Group, Inc., as amended on August 2, 2022 (English Translation)*
1(e)						Charter of the Audit Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1. 2024 (English translation)*
1(f)						Charter of the Compensation Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2018 (English translation)**
1(g)						Charter of the Nominating and Governance Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2018 (English translation)**
1(h)						Charter of the Risk Committee of Mitsubishi UFJ Financial Group, Inc., as amended on July 1, 2018 (English translation)**
2(a)						Form of American Depositary Receipt**
2(b)						Form of Deposit Agreement, amended and restated as of December 22, 2004, among Mitsubishi Tokyo Financial Group, Inc. (subsequently renamed Mitsubishi UFJ Financial Group, Inc.), The Bank of New York Mellon and the holders from time to time of American Depositary Receipts issued thereunder**
2(c)						Description of Securities*
8						Subsidiaries of the Company—see “Item 4.C. Information on the Company—Organizational Structure.”
11(a)						MUFG Group Code of Conduct, Compliance Rules, Compliance Manual, and Rules of Employment of Mitsubishi UFJ Financial Group, Inc. applicable to its principal executive officer, principal financial officer, principal accounting officer and persons performing similar functions (English translation of relevant sections)
11(b)						MUFG Insider Trading Control Policy and Insider Trading Control Rule ****
12						Certifications required by Rule 13a-14(a) (17 CFR 240.13a-14(a)) or Rule 15d-14(a)(17 CFR 240.15d-14(a))
13						Certifications required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) or Rule 15d-14(b)(17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350)
15(a)						Consent of independent registered public accounting firm (Deloitte Touche Tohmatsu LLC)
15(b)						Consent of independent registered public accounting firm (Deloitte & Touche LLP)
97						MUFG Executive Compensation Recovery Policy*
99(a)						Capitalization and Indebtedness of Mitsubishi UFJ Financial Group, Inc. as of March 31, 202 6 *****
99(b)						Unaudited Reverse Reconciliation of Selected Financial Information of Mitsubishi UFJ Financial Group, Inc. as of and for the fiscal year ended March 31, 202 6 ******
99(c)						Financial Statements and Supplementary Data of Morgan Stanley*******
101.INS						Inline XBRL Instance Document—the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH						Inline XBRL Taxonomy Extension Schema Document
101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document
104						The cover page for the Company’s Annual Report on Form 20-F for the year ended March 31, 2026, has been formatted in Inline XBRL

Notes:

* Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 30, 2024.

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** Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 12, 2018.

*** Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 8, 2022.

**** Incorporated by reference to our annual report on Form 20-F (File No. 000-54189) filed on July 7, 2025.

***** Deemed to be incorporated by reference into the registration statement on Form F-3 (No. 333-273681) of Mitsubishi UFJ Financial Group, Inc. and to be a part thereof.

****** Deemed to be incorporated as Annex A to the registration statement on Form F-3 (No. 333-273681) of Mitsubishi UFJ Financial Group, Inc. and to be a part thereof.

******* Incorporated by reference to Morgan Stanley’s annual report on Form 10-K (File No. 001-11758) filed on February 19, 2026.

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Signature

The registrant hereby certifies that it meets all of the requirements for filing on Form 20-F and that it has duly caused and authorized the undersigned to sign this Annual Report on its behalf.