Loans and Allowance for Credit Losses

12 Months Ended

Mar. 31, 2026

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

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.

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:


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	—		—		—


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	—		—		—


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:

(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.


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:


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,

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


	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

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.

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. See Note 1 for further details of categorization of Accrual and Nonaccrual.

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.

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.

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


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.

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