| Metric | Current Period | Prior Year Period | YoY |
|---|---|---|---|
| Revenue / Net Sales | ¥146208.4B | ¥136300.0B | +7.3% |
| Operating Income / Operating Profit | - | - | - |
| Ordinary Income | ¥34101.9B | ¥26694.8B | +27.7% |
| Net Income / Net Profit | ¥25605.1B | ¥19414.8B | +31.9% |
| ROE | 10.8% | 8.9% | - |
For the fiscal year ended March 2026, Revenue (for banking, Ordinary Revenues) was ¥14兆6,208B (YoY +¥9,909B +7.3%), Ordinary Income was ¥3兆4,102B (YoY +¥7,407B +27.7%), and Net Income was ¥2兆5,605B (YoY +¥6,190B +31.9%), achieving revenue and profit growth. Ordinary Revenues increased 7.3% while Ordinary Income rose 27.7%, indicating substantial improvement in profitability. Equity-method investment income was ¥8,456B (YoY +¥2,486B +41.7%) and fee income was ¥2兆6,664B (YoY +¥3,062B +12.7%), which drove profit growth. Credit-related costs were a net benefit of -¥4,747B year-on-year, reflecting an improvement and a better credit environment that supported profits. ROE improved to 10.8% from 9.3% the prior year (+1.5pt), and capital efficiency is at the highest level in the past three years. Operating Cash Flow (OCF) was a large negative ¥-23兆644B, but this reflects working capital movements associated with balance sheet expansion—loans +¥12兆3,634B and deposits +¥10兆9,265B—which is within typical banking characteristics.
[Revenue] Ordinary Revenues expanded steadily to ¥14兆6,208B (+7.3%). Breakdown: net interest income comprised approximately ¥3兆 (deposit interest expense ¥2兆867B, loan interest income ¥4兆2,142B), with spread improvement in the rising rate environment. Fee income ¥2兆6,664B (+12.7%) benefited from increased fee mandates in corporate, wealth management, and Global CIB. Trading income ¥4,334B decreased -4.6% from ¥4,543B a year earlier, but improved other business income offset this. By segment, Corporate Banking gross profit ¥1兆1,259B, Global CIB gross profit ¥1兆814B, and Corporate & Wealth gross profit ¥8,669B, with corporate and global areas maintaining high profitability. Custody assets ¥6,218B and Retail & Digital ¥1兆646B also contributed stably.
[Income Statement] Segment operating profit totaled ¥2兆3,654B, covering an expense increase of ¥3兆6,259B (+10.2%) through gross profit growth. Equity-method investment income ¥8,456B (from ¥5,970B prior year, +41.7%) led the large increase at the ordinary income level, reflecting strong results from overseas partnerships and resource-related investments. Credit-related costs of -¥4,747B were a net release: loan loss provision recoveries ¥2,004B and recoveries of written-off claims ¥968B contributed, significantly reducing credit cost burden year-on-year. Gains/losses on equities and related instruments ¥4,860B also lifted profits. Extraordinary items were special gains ¥487B (including step-acquisition gains ¥208B) and special losses ¥1,367B (impairment losses ¥679B), for a net -¥880B, an improvement YoY. Profit before tax was ¥3兆3,222B (+30.2%); income taxes ¥7,617B (effective tax rate 22.9%); resulting in Net Income attributable to owners of the parent ¥2兆4,272B (+30.3%). In conclusion, revenue and profit increased, driven by equity-method gains, improved credit costs, and fee expansion.
Segment operating profit (million yen) was: Corporate Banking 706,964 (gross profit 1,125,924, expenses 418,959) as the largest earnings source; Global CIB 580,310 (gross profit 1,081,474, expenses 501,164); Corporate & Wealth 407,977; Global Commercial Banking 387,559; Retail & Digital 285,880; Custody Assets 152,483, with all business units in positive territory. Markets Division recorded -35,453 as an adjustment loss, and Others -120,337 includes HQ and consolidation adjustments. Customer divisions subtotal ¥2兆5,212B formed the base for Ordinary Income ¥3兆4,102B, and non-divisional items—equity-method income, gains/losses on equities, recoveries of written-off claims—added ¥8,890B at the ordinary level. Fixed asset allocation totaled ¥1兆4,828B combined for Mitsubishi UFJ Bank and Mitsubishi UFJ Trust, with Corporate, Global CIB, and Corporate WM accounting for about ¥5,400B, consistent with a robust business foundation.
[Profitability] Operating margin 23.3% (from 19.6% prior year, +3.7pt) and Net margin 17.5% (from 14.2% prior year, +3.3pt) show substantial improvement, driven by expanded equity-method income and reduced credit costs. ROE 10.8% (from 9.3% prior year, +1.5pt), ROA (Ordinary Income / Total Assets) 0.8%, the highest in three years. [Cash Quality] OCF / Net Income -9.50x, OCF / EBITDA -6.04x indicate weak short-term cash conversion, mainly due to working capital movements from loans +¥12兆 and deposits +¥11兆; typical for banking. [Investment Efficiency] EPS ¥213.17 (from ¥160.02 prior year, +33.2%), BPS ¥1,973.31 (from ¥1,783.37 prior year, +10.6%); PBR varies with market price. [Financial Soundness] Equity Ratio 5.5% (from 5.3% prior year, +0.2pt), Debt-to-Equity 17.18x (from 17.44x prior year, -0.26x) reflecting high leverage common to banks. Capital adequacy ratio (BIS) reported at 5.2%, below the regulatory floor of 8%, warranting attention to capital build-up. Loan-to-deposit ratio 55.9% (from 53.1% prior year, +2.8pt) indicates improved fund efficiency. Deferred tax assets ¥1,475B and Net Asset Multiplier 0.62% have minor impact. Defined benefit obligation ¥1,073B vs. pension assets ¥2兆6,463B (net asset recognition) indicates good funding status.
OCF was -¥23兆644B (turned sharply negative from +¥64B prior year), driven by OCF subtotal -¥22兆6,255B. Components: loans increased -¥12兆3,634B, deposits increased +¥10兆9,265B, with securities sales gains and others causing large working capital outflows. Loan loss provision movement +¥252B and FX losses -¥3兆3,094B also impacted. Corporate taxes paid -¥5,094B. Investing CF was a large inflow +¥4兆4,740B: capex -¥3,079B, proceeds from sale of tangible fixed assets +¥789B, intangible asset purchases -¥3,652B, and other investing activities net +¥4兆7,473B contributed. Financing CF was -¥1兆1,499B, including dividend payments -¥8,484B (parent company -¥8,489B, non-controlling interests -¥389B), share buybacks -¥5,002B, share sales +¥39B, and proceeds from changes in ownership interests +¥296B. Free Cash Flow was -¥18兆5,905B (OCF + Investing CF), substantially negative; however, in banking, regulatory capital and liquidity buffers form the basis for dividend capacity, so accounting FCF deficits are structural during loan expansion. Cash and deposits decreased from ¥109兆954B to ¥90兆455B (-¥19兆500B); even after FX effects +¥6,904B, the funding position contracted but liquidity remains adequate within balance sheet management.
Recurring revenues are structurally stable, underpinned by net interest income of approx. ¥3兆 (deposit interest ¥2兆867B, loan interest ¥4兆2,142B, securities interest/dividends ¥1兆8,364B) and fee income ¥2兆6,664B. One-off items: special items net -¥880B (special gains ¥487B, special losses ¥1,367B), of which impairment losses ¥679B are sporadic from portfolio reviews. Step-acquisition gains ¥208B were one-time gains from obtaining control of equity-method entities. Equity-method income ¥8,456B accounted for about 25% of profit before tax ¥3兆3,222B, showing significant contribution from non-consolidated areas; however, equity-method income is sensitive to market conditions and partner performance and differs in stability from core recurring income. Gains/losses on equities ¥4,860B also have transient characteristics. Other comprehensive income was ¥7,107B, composing total comprehensive income ¥3兆2,712B (parent ¥3兆863B, non-controlling interests ¥1,849B) with FX translation adjustments ¥3,123B, available-for-sale securities valuation differences ¥3,282B, deferred hedge gains/losses -¥3,586B, retirement benefit adjustments ¥1,696B, and equity-method associates' OCI ¥2,570B. The divergence between comprehensive income and net income is about ¥7,107B, reflecting valuation, FX, and hedge adjustments. Accrual quality shows OCF / Net Income -9.50x, low in the short term, but driven by working capital movements in loans, securities, and repo transactions, and does not inherently undermine earnings quality.
Annual dividend per share is ¥86 (interim ¥35, year-end ¥51), with a Payout Ratio of 40.0% (based on reported EPS ¥213.17). This is a substantial increase from prior year interim dividend ¥25 on an annualized basis, signaling a clear shareholder return stance. Share buybacks totaled ¥5,002B; the capital structure is 11.87B shares outstanding and 0.58B treasury shares. Total Return Ratio (dividends + buybacks / Net Income) is approximately 59%. Comparing dividends + buybacks total ¥1兆3,491B against Net Income attributable to owners of the parent ¥2兆4,272B, the Total Return Ratio calculates to 55.6%, within a reasonable range. Dividend sustainability cannot be covered by OCF of -¥23兆, but in banking dividend sources are regulatory capital and retained earnings ¥16兆1,504B; balancing stable profit generation with capital regulation (BIS 5.2%) is key. Dividend forecast disclosed is full-year ¥48, and the gap versus current-year ¥86 is interpreted as timing differences reflecting interim results. The return policy emphasizes both dividend increases and buybacks to enhance capital efficiency; with Equity Ratio 5.5% being low, scope for further increases depends on retained earnings accumulation and regulatory capital considerations.
Credit cost reversal risk: This year credit-related costs were a net release of -¥4,747B contributing to ROE improvement, but a turn in the credit cycle could increase provisions and NPL resolution costs and compress profits. With loans ¥133.8兆 (YoY +10.2%) and balance growth continuing, qualitative review of the credit portfolio and monitoring of loan loss provision coverage ratios are necessary.
High leverage and capital regulation risk: Debt-to-Equity 17.18x and capital adequacy (BIS) 5.2% are below the regulatory floor of 8%, constraining shock absorption and capital-raising capacity. Total returns ¥1兆3,491B (dividends ¥8,484B + buybacks ¥5,002B) are capital-consuming; if the balance between regulatory capital build-up and shareholder returns deteriorates, options such as equity issuance, dividend reductions, or asset reduction may be required.
Equity-method investment income volatility risk: Equity-method income ¥8,456B represents about 25% of profit before tax and is highly sensitive to commodity prices and partner performance. The +41.7% surge this year reflects favorable markets, but a reversal could affect sustainability. Ongoing review of geographic and industry diversification of investees and impairment risk is necessary.
Profitability & Returns
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Net Margin | 17.5% | 11.9% (7.2%–35.4%) | +5.6pt |
Net Margin 17.5% exceeds the industry median 11.9% by 5.6pt, placing the company in the upper quartile driven by equity-method income, credit cost recoveries, and fee growth.
Growth & Capital Efficiency
| Metric | Company | Median (IQR) | Delta |
|---|---|---|---|
| Revenue Growth Rate (YoY) | 7.3% | 10.1% (7.3%–12.1%) | -2.8pt |
Revenue growth 7.3% lags the industry median 10.1% by 2.8pt, with top-line expansion constrained by scale, placing the company near the lower bound of the middle quartile.
Source: Company aggregation
Achieved substantial profit growth driven by rate increases, fee expansion, and equity-method income +41.7%. Ordinary Income +27.7%, ROE 10.8% (from 9.3%) at the highest level in three years; operating margin 23.3% (+3.7pt) improving. Credit cost recoveries -¥4,747B reflect cyclical improvement and have limited sustainability, but structurally fee income +12.7% (¥2兆6,664B) and expansion of corporate and global mandates underpin the profit base. Corporate Banking operating profit ¥707.0B, Global CIB ¥580.3B demonstrate clear contribution from core segments.
Capital adequacy (BIS) 5.2% is below the regulatory minimum 8%, requiring attention to capital policy. Total returns ¥1兆3,491B (dividends ¥8,484B + buybacks ¥5,002B) show an active return stance, but with Equity Ratio 5.5% low, scope for further increases depends on retained earnings and regulatory capital. OCF is -¥23兆, but this is driven by balance sheet expansion (loans +¥12兆, deposits +¥11兆) and is within banking characteristics. Going forward, mean reversion of credit costs, volatility of equity-method income, and changes in the interest rate environment will be key to performance.
This report is an AI-generated financial analysis document created by analyzing XBRL financial statement data. It is not a recommendation to invest in any specific security. Industry benchmarks are reference information compiled by the company based on public financial statements. Investment decisions are your responsibility; consult a professional advisor as needed.