Mitsubishi UFJ Financial Group, Inc. (MUFG) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good evening, investors, shareholders, and rating agencies. I am Togawa, Group CFO. Thank you very much for joining MEFG's online conference call today, despite the late hour. Please look at the material titled Financial Highlights Under J-GAP for the first half of the fiscal year ending March 31, 2026. Let me first explain our Q2 financial results, followed by revised FY25 performance targets and shareholder return measures. Let me start from the income statement summary. Please turn to page 8. First, the figures for the first half of FY24 on the far left column of the table include the impact of the change in the equity method accounting date at Koon See in Thailand. So the far right column shows the actual year-over-year change, adjusting this impact. All explanations on this page will be based on adjusted year-on-year comparisons. Line 1, gross profits increased by 189.3 billion yen year-on-year. Line 2 and below shows the breakdown of gross profits. Net interest income increased thanks to the impact of rising yen interest rates, improving lending spreads, and benefits from last year's bond portfolio rebalancing. In addition... Net fees and commissions expanded significantly, primarily due to growth in various fee revenues from domestic and overseas solution services and effects of acquisitions. Next, line 6, G&A expenses, increased by 127.9 billion yen year-on-year due to the impact of inflation and acquisitions, as well as strategic expense allocation, mainly in retail and digital business group. Expense ratio was flat year-on-year at 56.1%. As a result, Line 8 net operating profits increased by 61.3 billion yen year-on-year. Next, Line 9 credit costs decreased by 65.7 billion yen year-on-year. I will explain the reasons for this later. Line 10, net gains and l...