Mitsubishi UFJ Financial Group, Inc. (MUFG) Q4 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good evening. I am Togawa, Group CFO. May I thank all the investors, shareholders, and rating agencies for joining MEFG's online conference call today, despite the late hour. Please look at the material titled Financial Highlights Under JGAP for the Fiscal Year Ended March 31, 2026. First, let me explain our FY25 financial results, followed by FY26 performance targets, shareholder return policy, and others. Let me begin with the income statement summary. Please turn to page 8. FY24 on the far left column includes the impact of the change in financial results closing date at Krumsi in Thailand last year. Therefore, the far right column shows the actual year-on-year change after adjusting for this impact. I will explain this page using the adjusted year-on-year change. Line 1, gross profits increased by 1,290,000,000,000 yen year-on-year. Line 2 and below show the breakdown of gross profits. Net interest income increased by the impact of higher yen interest rates, increased lending with improved lending margins, and improvements due to last year's bond portfolio rebalancing. In addition, net fees and commissions expanded significantly, mainly driven by domestic and overseas solution business and contribution from acquisitions. Fee income increased by around 300 billion yen for two consecutive years. On the other hand, line 4, net trading profits and net other operating profits increased significantly year on year due to special factors. With the review of yen interest rate hedging operations in FY25, 200 billion yen of deferred hedging gains and losses recorded in net assets was recognized as realized losses. On the other hand, we had a rebound from approximately 780 billion yen loss on sale of debt securities, mainly foreign bond, following bond portfolio rebalancing ...