Annual Report 2026 (USGAAP)（PDF / 9.

• REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934

  OR

  ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

  For the fiscal year ended March 31, 2026 OR

  • TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to OR

• 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

(Exact name of Registrant as specified in its charter)

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 ☒

     ‌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

     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.

     ‌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

     • 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.

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.

1. [Reserved]

2. Capitalization and Indebtedness

   Not applicable.

3. Reasons for the Offer and Use of Proceeds

   Not applicable.

4. 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

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

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.

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.

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.

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.

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

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

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

  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

  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.

  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;

• 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

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

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

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.

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 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.

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 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.

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.

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.

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."

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 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 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

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

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

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.

‌Item 4. Information on the Company.

1. 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.

   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.

2. 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."

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."

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.

1. Expand & Refine Growth Strategies

   Key strategies	Key initiatives
   Strengthen domestic retail customer base
   Strengthen corporate x wealth management (WM) business
   Evolve Global Corporate & Investment Banking-Global Markets integrated business model
   Strengthen APAC business and platform resilience
   Contribute to making Japan a leading asset management center
   Support value chain in green transformation
   Challenge to build a new business portfolio

   • Improve customer satisfaction by enhancing customer experience. By building long-term business relationships, maximize customer life-time value.

   • Offer diverse solutions through both corporate and individual customer-based approaches.

   • 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.

   • 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.

   • 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.

   • 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.

   • 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.

2. 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

3. Accelerate Transformation & Innovation

   Key strategies	Key initiatives
   Accelerate transformation to be more agile
   Expand human capital investment
   Increase system development capacity
   Enhance AI/data infrastructure

   • Facilitate transformation to instill a corporate culture in which people think, decide, and act independently, and do so swiftly.

   • 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.

   • 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.

   • 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.

   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.

   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.

   1. 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.

   2. Workplace Environment Improvement

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 subcommittee 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

   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

   1. 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.

   2. 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.

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.

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.

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.

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.

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.

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

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.

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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