Edgar Filing: MITSUBISHI UFJ FINANCIAL GROUP INC

Form 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of February 2011

MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

7-1, Marunouchi 2-chome, Chiyoda-ku

Tokyo 100-8330, Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or

will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F X Form 40-F

Indicate by check mark whether the registrant by furnishing the information

contained in this Form is also thereby furnishing the information to the Commission

pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes No X

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date: February 3, 2011


Mitsubishi UFJ Financial Group, Inc.

By:		/s/ Manabu Ishii
Name:		Manabu Ishii
Title:		Chief Manager, General Affairs Corporate Administration Division

Consolidated Summary Report <under Japanese GAAP>

for the nine months ended December 31, 2010

February 3, 2011


Company name:	Mitsubishi UFJ Financial Group, Inc.	Stock exchange listings:	Tokyo, Osaka, Nagoya, New York
Code number:	8306	URL	http://www.mufg.jp/
Representative:	Katsunori Nagayasu, President & CEO
For inquiry:	Naoki Muramatsu, General Manager—Financial Planning Division / Financial Accounting Office
	TEL (03) 3240-7200
Quarterly securities report issuing date:	February 14, 2011	Trading accounts:	Established
Dividend payment date:	-
Supplemental information for quarterly financial statements:	Available
Quarterly investor meeting presentation:	None

(Amounts of less than one million yen are rounded down.)

1. Consolidated Financial Data for the Nine Months ended December 31, 2010

(1) Results of Operations


	(% represents the change from the same period in the previous fiscal year)
	Ordinary Income					Ordinary Profits				Net Income
	million yen		%			million yen		%		million yen		%
Nine months ended
December 31, 2010		3,490,055		(7.5	)		836,153		134.9		551,829		154.2
December 31, 2009		3,774,914		(13.2	)		356,029		212.5		217,068		—


	Net Income per Common Stock		Diluted Net Income per Common Stock
	yen		yen
Nine months ended
December 31, 2010		38.39		38.30
December 31, 2009		17.47		17.46

(2) Financial Conditions


	Total Assets		Total Net Assets		Net Assets Attributable to MUFG Shareholders to Total Assets^(*1)		Total Net Assets per Common Stock
	million yen		million yen		%		yen
As of
December 31, 2010		202,642,327		11,272,178		4.5		615.54
March 31, 2010		204,106,939		11,299,459		4.6		612.05

(Reference) Shareholders’ equity as of December 31, 2010: 9,094,701 million yen; March 31, 2010: 9,305,795 million yen

(*1)

“Net assets attributable to MUFG shareholders to total assets” is computed under the formula shown below

(Total net assets - Subscription rights to shares - Minority interests) / Total assets

(*2)

“Risk-adjusted Capital Ratio” will be disclosed separately in mid-February 2011.

2. Dividends on Common Stock


	Dividends per Share
	1st quarter-end		2nd quarter-end		3rd quarter-end		Fiscal year-end		Total
	yen		yen		yen		yen		yen
Fiscal year
ended March 31, 2010		—		6.00		—		6.00		12.00
ending March 31, 2011		—		6.00		—
ending March 31, 2011 (Forecast)								6.00		12.00

(*1)

Revision of forecasts for dividends on the presentation date of this Consolidated Summary Report: None

(*2)

The information in the above table is only for dividends on common stocks. Please refer to “Dividends on Preferred Stocks” with regard to dividends on other type of (unlisted) stocks issued by us.

3. Earnings Forecasts for the Fiscal Year ending March 31, 2011 (Consolidated)

(*)	Revision of earnings forecasts on the presentation date of this Consolidated Summary Report: None

MUFG has the target of 500.0 billion yen of consolidated net income for the fiscal year ending March 31, 2011. (There are no changes to our earnings targets released on November 15, 2010.)

MUFG is engaged in financial service businesses such as banking business, trust banking business, securities business and credit card/loan businesses. Because there are various uncertainties caused by economic situation, market environments and other factors in these businesses, MUFG discloses a target of its consolidated net income instead of a forecast of its performance.

4. Other (For more details, please see “Other information” in page 2 of Appendix.)

(1)	Changes in significant subsidiaries during the period: Yes

One company is newly added (MM Partnership)


Note:		This section shows whether or not there is a change in Specified Subsidiaries (“tokutei kogaisha” in Japanese) that led to the change of the consolidation scope during the period.

(2)	Adoption of simplified accounting methods, or utilization of unique accounting methods: Yes


Note:		This section shows the use of any simplified accounting methods, or the use of any peculiar accounting methods for quarterly consolidated financial statements.

(3)	Changes in accounting policies, procedures, presentation rules, etc.

(A)

Changes due to revision of accounting standards: Yes

(B)

Changes due to reasons other than (A): No


Note:		This section shows changes to accounting policies, procedures, presentation rules, etc. that are described in Japanese regulations as “Alterations on significant issues that are the basis of the preparation for quarterly financial accounting statements”.

(4)	Number of common stocks outstanding at the end of the period

(A) Total stocks outstanding including treasury stocks:

Dec. 31, 2010

14,150,894,620 shares

Mar. 31, 2010

14,148,414,920 shares

(B) Treasury stocks:

Dec. 31, 2010

9,389,478 shares

Mar. 31, 2010

9,781,950 shares

Nine months ended Dec. 31, 2010

14,140,663,470 shares

Nine months ended Dec. 31, 2009

11,736,827,640 shares

*Disclosure regarding the execution of the quarterly review process

This “Consolidated Summary Report” (Quarterly “Tanshin”) is outside the scope of the external auditor’s quarterly review procedure which is required by “Financial Instruments and Exchange Act”. Therefore, the quarterly review process has not been completed as of this disclosure in the “Consolidated Summary Report”.

*Notes for using forecasted information etc.

This financial summary report contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overall management of the company and/or the group as a whole (the “forward-looking statements”). The forward-looking statements are made based upon, among other things, the company’s current estimations, perceptions and evaluations. In addition, in order for the company to adopt such estimations, forecasts, targets and plans regarding future events, certain assumptions have been made. Accordingly, due to various risks and uncertainties, the statements and assumptions are inherently not guarantees of future performance, may be considered differently from alternative perspectives and may result in material differences from the actual result. For the main factors that may effect the current forecasts, please see Consolidated Summary Report, Annual Securities Report, Disclosure Book, Annual Report, and other current disclosures that the company has announced.

The financial information included in this financial summary report is prepared and presented in accordance with accounting principles generally accepted in Japan (“Japanese GAAP”). Differences exist between Japanese GAAP and the accounting principles generally accepted in the United States (“U.S. GAAP”) in certain material respects. Such differences have resulted in the past, and are expected to continue to result for this period and future periods, in amounts for certain financial statement line items under U.S. GAAP to differ significantly from the amounts under Japanese GAAP. For example, differences in consolidation basis or accounting for business combinations, including but not limited to amortization and impairment of goodwill, could result in significant differences in our reported financial results between Japanese GAAP and U.S. GAAP. Readers should consult their own professional advisors for an understanding of the differences between Japanese GAAP and U.S. GAAP and how those differences might affect our reported financial results. To date, we have published U.S. GAAP financial results only on a semiannual and annual basis, and currently do not expect to publish U.S. GAAP financial results for the period reported in this financial summary report.

(Dividends on preferred stocks)

Dividends per share relating to preferred stocks are as follows:

Dividends per Share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

yen

Preferred Stock First Series of Class 3

Fiscal year ended March 31, 2010

—

30.00

—

30.00

60.00

Fiscal year ending March 31, 2011

(Note) MUFG repurchased Preferred Stock First Series of Class 3 in April 2010 and cancelled in April 2010.

Dividends per Share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

yen

Preferred Stock First Series of Class 5

Fiscal year ended March 31, 2010

—

57.50

—

57.50

115.00

Fiscal year ending March 31, 2011

—

57.50

—

Fiscal year ending March 31, 2011 (Forecast)

57.50

115.00

Dividends per Share

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Total

yen

Preferred Stock Class 11

Fiscal year ended March 31, 2010

—

2.65

—

2.65

5.30

Fiscal year ending March 31, 2011

—

2.65

—

Fiscal year ending March 31, 2011 (Forecast)

2.65

5.30

Mitsubishi UFJ Financial Group, Inc.

(Appendix)

Contents of Appendix


1. Other Information			2
(1) Changes in significant subsidiaries			2
(2) Adoption of simplified accounting methods, or utilization of unique accounting methods			2
(3) Changes in accounting policies, procedures, presentation rules, etc.			3

2. Consolidated Financial Statements			4
(1) Consolidated Balance Sheets			4
(2) Consolidated Statements of Income			6
(3) Notes on Going-Concern Assumption			7
(4) Notes for Material Changes in Shareholders’ Equity			7

Supplemental Information:

“Selected Financial Information under Japanese GAAP For the Nine Months Ended December 31, 2010”

Mitsubishi UFJ Financial Group, Inc.

1. Other Information

(1) Changes in significant subsidiaries

The following is a change in Specified Subsidiaries (“tokutei kogaisha” in Japanese) affecting the scope of consolidation during the period:

Name

Location

Investment
Amount

Primary Business

Ownership

MM Partnership

Chiyoda-ku, Tokyo

670.6 billion

Holding shares

Note:

MM Partnership is a partnership under the Civil Code of Japan which holds shares of Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. (“MUMSS”) and Morgan Stanley MUFG Securities Co., Ltd. (“MSMS”).

(2) Adoption of simplified accounting methods, or utilization of unique accounting methods

(Simplified accounting methods)

(i)	Depreciation

Depreciation for tangible fixed assets, which are depreciated under the declining-balance method, is computed by proportionally allocating the estimated depreciation for the fiscal year.

(ii)	Allowance for credit losses

Except for claims on “bankrupt borrowers” and “substantially bankrupt borrowers” and claims on “potentially bankrupt borrowers” for which allowances are provided in specific amounts, allowances for credit losses are calculated based on reasonable measures, including the loan loss ratios used for the previous interim period-end settlement.

(iii)

Taxes

Income taxes are calculated in a manner similar to that in which they were calculated in the previous annual period-end settlement. However, immaterial adjustment items and immaterial tax credits are not considered in calculating the taxable income.

(iv)	Collectability of deferred tax assets

The collectability of deferred tax assets is determined based on the earnings forecasts and tax planning used in the previous interim period-end settlement.

(v)	Deferred and accrued accounts

Amounts of certain deferred and accrued accounts are estimated based on reasonable measures.

Mitsubishi UFJ Financial Group, Inc.

(3) Changes in accounting policies, procedures, presentation rules, etc.

(i)	Application of “Accounting Standard for Asset Retirement Obligations”

Starting with the first quarter, we have applied “Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No.18 issued on March 31, 2008) and “Guidance on Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance No.21 issued on March 31, 2008).

Following the implementation stated above, “Ordinary Profits” and “Income before income taxes and others” are decreased 1,314 million yen, and 25,817 million yen, respectively.

(ii)	Application of “Accounting Standard for Business Combinations”

Starting with the first quarter, we have applied “Accounting Standard for Business Combinations” (ASBJ Statement No. 21 issued on December 26, 2008), “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No.22 issued on December 26, 2008), “Partial amendments to Accounting Standard for Research and Development Costs” (ASBJ Statement No.23 issued on December 26, 2008), “Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7 issued on December 26, 2008), “Revised Accounting Standard for Equity Method of Accounting for Investments” (ASBJ Statement No. 16 issued on December 26, 2008), and “Revised Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures” (ASBJ Guidance No. 10 issued on December 26, 2008).

Mitsubishi UFJ Financial Group, Inc.

2. Consolidated Financial Statements

(1) Consolidated Balance Sheets


	(in millions of yen)
	As of December 31, 2010			As of March 31, 2010
Assets:
Cash and due from banks		6,964,699			7,495,050
Call loans and bills bought		308,801			482,546
Receivables under resale agreements		4,524,452			3,559,309
Receivables under securities borrowing transactions		4,047,234			5,770,044
Monetary claims bought		2,808,602			2,967,002
Trading assets		21,794,413			16,448,683
Money held in trust		360,149			362,789
Securities		65,409,851			63,964,461
Loans and bills discounted		78,302,204			84,880,603
Foreign exchanges		1,133,448			1,051,325
Other assets		7,172,203			6,416,721
Tangible fixed assets		1,334,340			1,357,449
Intangible fixed assets		1,098,472			1,152,606
Deferred tax assets		563,313			646,495
Customers’ liabilities for acceptances and guarantees		7,962,202			8,889,771
Allowance for credit losses		(1,142,063	)		(1,337,922	)

Total assets		202,642,327			204,106,939

Liabilities:
Deposits		118,758,883			123,891,946
Negotiable certificates of deposit		10,344,122			11,019,571
Call money and bills sold		1,977,952			1,907,366
Payables under repurchase agreements		10,929,162			11,843,211
Payables under securities lending transactions		3,920,370			3,632,170
Commercial papers		113,995			196,929
Trading liabilities		13,140,281			9,894,186
Borrowed money		9,349,512			6,235,917
Foreign exchanges		848,597			704,233
Short-term bonds payable		433,588			480,545
Bonds payable		6,304,570			7,022,868
Due to trust accounts		1,504,555			1,559,765
Other liabilities		5,244,563			4,933,405
Reserve for bonuses		19,250			52,278
Reserve for bonuses to directors		608			751
Reserve for retirement benefits		60,072			61,821
Reserve for retirement benefits to directors		1,451			1,523
Reserve for loyalty award credits		10,422			8,717
Reserve for contingent losses		209,558			239,224
Reserves under special laws		2,231			3,098
Deferred tax liabilities		46,166			39,210
Deferred tax liabilities for land revaluation		188,029			188,963
Acceptances and guarantees		7,962,202			8,889,771

Total liabilities		191,370,148			192,807,479

Mitsubishi UFJ Financial Group, Inc.


	(in millions of yen)
	As of December 31, 2010			As of March 31, 2010
Net assets:
Capital stock		2,137,476			2,136,582
Capital surplus		2,174,287			2,423,322
Retained earnings		4,767,452			4,405,512
Treasury stock		(6,442	)		(6,633	)

Total shareholders’ equity		9,072,773			8,958,783

Net unrealized gains (losses) on other securities		207,812			403,490
Net deferred gains (losses) on hedging instruments		56,650			92,402
Land revaluation excess		142,161			142,848
Foreign currency translation adjustments		(353,201	)		(254,800	)
Pension liability adjustments of subsidiaries preparing financial statements under US GAAP		(31,496	)		(36,930	)

Total valuation and translation adjustments		21,927			347,011

Subscription rights to shares		6,654			6,451
Minority interests		2,170,822			1,987,213

Total net assets		11,272,178			11,299,459

Total liabilities and net assets		202,642,327			204,106,939

Mitsubishi UFJ Financial Group, Inc.

(2) Consolidated Statements of Income


	(in millions of yen)
	For the nine months ended December 31, 2009			For the nine months ended December 31, 2010
Ordinary income		3,774,914			3,490,055
Interest income		2,180,565			1,890,741
Interest on loans and bills discounted		1,450,599			1,205,785
Interest and dividends on securities		455,848			469,717
Trust fees		76,348			73,794
Fees and commissions		834,643			825,459
Trading income		198,411			172,591
Other business income		319,463			418,145
Other ordinary income		165,482			109,323
Ordinary expenses		3,418,884			2,653,902
Interest expenses		529,565			394,361
Interest on deposits		241,967			160,138
Fees and commissions		117,542			120,015
Other business expenses		272,640			133,938
General and administrative expenses		1,636,501			1,558,439
Other ordinary expenses		862,634			447,147

Ordinary profits		356,029			836,153

Extraordinary gains		72,880			57,362
Gains on disposition of fixed assets		5,400			1,541
Gains on loans written-off		40,682			47,237
Reversal of reserve for contingent liabilities from financial instruments transactions		243			866
Gains on sales of equity securities of subsidiaries		13,828			—
Others		12,725			7,717
Extraordinary losses		63,887			37,508
Losses on disposition of fixed assets		16,749			6,491
Losses on impairment of fixed assets		10,350			5,231
Amortization of goodwill		27,918			—
Loss on adjustment for changes of accounting standard for asset retirement obligations		—			24,437
Others		8,868			1,348

Income before income taxes and others		365,022			856,007

Income taxes—current		73,033			83,488
Refund of income taxes		(17,037	)		—
Income taxes—deferred		42,623			194,404

Total taxes		98,619			277,892

Income before minority interests					578,114

Minority interests		49,333			26,285

Net income		217,068			551,829

Mitsubishi UFJ Financial Group, Inc.

(3) Notes on Going-Concern Assumption

Not applicable

(4) Notes for Material Changes in Shareholders’ Equity

Not applicable

Selected Financial Information

under Japanese GAAP

For the Nine Months Ended December 31, 2010

Mitsubishi UFJ Financial Group, Inc.

Mitsubishi UFJ Financial Group, Inc.

[Contents]


1. Financial Results	[ MUFG Consolidated ]*1	1

	[ BTMU and MUTB Combined ]23*4

	[ BTMU Non-consolidated ]

	[ MUTB Non-consolidated ]

2. Non Performing Loans Based on the Financial Reconstruction Law	[ BTMU and MUTB Combined including Trust Accounts ]	5

	[ BTMU Non-consolidated ]

	[ MUTB Non-consolidated ]

	[ MUTB Non-consolidated : Trust Accounts ]

3. Securities	[ MUFG Consolidated ]	6

	[ BTMU Non-consolidated ]

	[ MUTB Non-consolidated ]

4. ROE	[ MUFG Consolidated ]	9

5. Average Interest Rate Spread	[ BTMU and MUTB Combined ]	9

6. Loans and Deposits	[ BTMU and MUTB Combined ]	9

7. Statements of Trust Assets and Liabilities	[ MUTB Non-consolidated ]	10

(Reference)

Exposure to “Securitized Products and Related Investments”		11

(*1)	“MUFG” means Mitsubishi UFJ Financial Group, Inc.

(*2)	“BTMU” means The Bank of Tokyo-Mitsubishi UFJ, Ltd.

(*3)	“MUTB” means Mitsubishi UFJ Trust and Banking Corporation.

(*4)	“BTMU and MUTB Combined” means simple sum of “BTMU” and “MUTB” without consolidation processes.

Mitsubishi UFJ Financial Group, Inc.

1. Financial Results

MUFG Consolidated


	(in billions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2010 (A)			December 31, 2009 (B)			Increase (Decrease) (A) - (B)
Gross profits		2,732.5			2,689.8			42.6
Gross profits before credit costs for trust accounts		2,732.5			2,689.8			42.6
Net interest income		1,496.4			1,651.1			(154.6	)
Trust fees		73.7			76.3			(2.5	)
Credit costs for trust accounts (1)		—			—			—
Net fees and commissions		705.4			717.1			(11.6	)
Net trading profits		172.5			198.4			(25.8	)
Net other business profits		284.2			46.8			237.3
Net gains (losses) on debt securities		214.1			63.0			151.1
General and administrative expenses		1,511.8			1,564.0			(52.1	)
Amortization of goodwill		23.2			24.9			(1.7	)
Net business profits before credit costs for trust accounts, provision for general allowance for credit losses and amortization of goodwill		1,243.9			1,150.7			93.1
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		1,220.6			1,125.8			94.8
Provision for general allowance for credit losses (2)		11.4			(138.0	)		149.4
Net business profits*		1,232.1			987.8			244.3
Net non-recurring gains (losses)		(396.0	)		(631.7	)		235.7
Credit costs (3)		(266.4	)		(489.7	)		223.3
Losses on loan write-offs		(213.9	)		(190.4	)		(23.5	)
Provision for specific allowance for credit losses		(52.6	)		(283.6	)		230.9
Other credit costs		0.2			(15.6	)		15.9
Net gains (losses) on equity securities		(23.8	)		(20.0	)		(3.7	)
Gains on sales of equity securities		47.2			109.3			(62.1	)
Losses on sales of equity securities		(30.0	)		(65.2	)		35.1
Losses on write-down of equity securities		(41.0	)		(64.1	)		23.1
Profits (losses) from investments in affiliates		(2.9	)		1.1			(4.1	)
Other non-recurring gains (losses)		(102.8	)		(123.1	)		20.3

Ordinary profits		836.1			356.0			480.1

Net extraordinary gains (losses)		19.8			8.9			10.8
Gains on loans written-off (4)		47.2			40.6			6.5
Reversal of allowance for credit losses (5)		—			—			—
Reversal of reserve for contingent losses included in credit costs (6)		6.1			—			6.1
Losses on impairment of fixed assets		(5.2	)		(10.3	)		5.1
Loss on adjustment for changes of accounting standard for asset retirement obligations		(24.4	)		—			(24.4	)
Income before income taxes and others		856.0			365.0			490.9
Income taxes-current		83.4			73.0			10.4
Refund of income taxes		—			(17.0	)		17.0
Income taxes-deferred		194.4			42.6			151.7
Total taxes		277.8			98.6			179.2
Income before minority interests		578.1			266.4			311.7
Minority interests		26.2			49.3			(23.0	)

Net income		551.8			217.0			334.7

Note:

* Net business profits = Banking subsidiaries’ net business profits + Other consolidated entities’ gross profits - Other consolidated entities’ general and administrative expenses - Other consolidated entities’ provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions



(Reference)
Total credit costs (1)+(2)+(3)+(5)+(6)	(248.8	)	(627.7	)	378.9
Total credit costs + Gains on loans written-off (1)+(2)+(3)+(4)+(5)+(6)	(201.5	)	(587.1	)	385.5

Mitsubishi UFJ Financial Group, Inc.

BTMU and MUTB Combined


	(in billions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2010 (A)			December 31, 2009 (B)			Increase (Decrease) (A) - (B)
Gross profits		1,758.8			1,625.4			133.4
Gross profits before credit costs for trust accounts		1,758.8			1,625.4			133.4
Net interest income		1,039.2			1,108.0			(68.8	)
Trust fees		55.6			58.1			(2.4	)
Credit costs for trust accounts (1)		—			—			—
Net fees and commissions		319.8			335.7			(15.9	)
Net trading profits		88.1			104.5			(16.4	)
Net other business profits		255.9			18.9			237.0
Net gains (losses) on debt securities		206.2			54.6			151.5
General and administrative expenses		883.3			909.0			(25.7	)
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		875.5			716.3			159.2
Provision for general allowance for credit losses (2)		(1.0	)		(2.7	)		1.7
Net business profits		874.4			713.5			160.9
Net non-recurring gains (losses)		(184.5	)		(448.0	)		263.5
Credit costs (3)		(79.1	)		(310.9	)		231.8
Losses on loan write-offs		(79.1	)		(169.4	)		90.2
Provision for specific allowance for credit losses		(0.1	)		(134.0	)		133.9
Other credit costs		0.2			(7.4	)		7.6
Net gains (losses) on equity securities		(72.9	)		(51.3	)		(21.6	)
Gains on sales of equity securities		41.5			78.2			(36.6	)
Losses on sales of equity securities		(33.7	)		(65.2	)		31.4
Losses on write-down of equity securities		(80.7	)		(64.3	)		(16.3	)
Other non-recurring gains (losses)		(32.4	)		(85.8	)		53.3

Ordinary profits		689.9			265.4			424.4

Net extraordinary gains (losses)		11.2			20.2			(8.9	)
Gains on loans written-off (4)		27.7			30.8			(3.0	)
Reversal of allowance for credit losses (5)		4.2			—			4.2
Reversal of reserve for contingent losses included in credit costs (6)		3.8			—			3.8
Losses on impairment of fixed assets		(3.1	)		(6.0	)		2.9
Loss on adjustment for changes of accounting standard for asset retirement obligations		(16.7	)		—			(16.7	)
Income before income taxes		701.2			285.6			415.5
Income taxes-current		36.5			31.4			5.0
Refund of income taxes		—			(9.8	)		9.8
Income taxes-deferred		168.3			35.2			133.0
Total taxes		204.8			56.7			148.0

Net income		496.3			228.9			267.4


(Reference)
Total credit costs (1)+(2)+(3)+(5)+(6)		(72.0	)		(313.7	)		241.6
Total credit costs + Gains on loans written-off (1)+(2)+(3)+(4)+(5)+(6)		(44.2	)		(282.8	)		238.6

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated


	(in billions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2010 (A)			December 31, 2009 (B)			Increase (Decrease) (A) - (B)
Gross profits		1,498.4			1,391.2			107.2
Net interest income		915.9			983.0			(67.0	)
Net fees and commissions		262.3			281.0			(18.6	)
Net trading profits		81.2			93.5			(12.2	)
Net other business profits		238.8			33.5			205.2
Net gains (losses) on debt securities		190.6			65.9			124.6
General and administrative expenses		743.2			761.5			(18.3	)
Net business profits before provision for general allowance for credit losses		755.2			629.6			125.5
Provision for general allowance for credit losses (1)		(1.0	)		(7.4	)		6.4
Net business profits		754.1			622.1			132.0
Net non-recurring gains (losses)		(163.4	)		(410.4	)		247.0
Credit costs (2)		(78.5	)		(292.1	)		213.5
Losses on loan write-offs		(78.5	)		(167.5	)		88.9
Provision for specific allowance for credit losses		(0.1	)		(117.4	)		117.3
Other credit costs		0.1			(7.1	)		7.2
Net gains (losses) on equity securities		(60.8	)		(49.6	)		(11.2	)
Gains on sales of equity securities		36.9			66.7			(29.7	)
Losses on sales of equity securities		(27.8	)		(64.8	)		36.9
Losses on write-down of equity securities		(69.8	)		(51.4	)		(18.4	)
Other non-recurring gains (losses)		(24.0	)		(68.6	)		44.6

Ordinary profits		590.7			211.6			379.0

Net extraordinary gains (losses)		7.5			20.9			(13.4	)
Gains on loans written-off (3)		26.8			29.0			(2.2	)
Reversal of allowance for credit losses (4)		—			—			—
Reversal of reserve for contingent losses included in credit costs (5)		3.2			—			3.2
Net gains (losses) on disposition of fixed assets		(4.3	)		(9.7	)		5.4
Losses on impairment of fixed assets		(2.9	)		(3.5	)		0.6
Loss on adjustment for changes of accounting standard for asset retirement obligations		(15.2	)		—			(15.2	)
Income before income taxes		598.2			232.6			365.6
Income taxes-current		31.8			30.7			1.0
Refund of income taxes		—			(9.8	)		9.8
Income taxes-deferred		136.2			25.2			111.0
Total taxes		168.0			46.0			122.0

Net income		430.1			186.5			243.6


(Reference)
Total credit costs (1)+(2)+(4)+(5)		(76.3	)		(299.6	)		223.2
Total credit costs + Gains on loans written-off (1)+(2)+(3)+(4)+(5)		(49.5	)		(270.6	)		221.0

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated


	(in billions of yen)
	For the nine months ended						Increase (Decrease) (A) - (B)
	December 31, 2010 (A)			December 31, 2009 (B)			Increase (Decrease) (A) - (B)
Gross profits		260.4			234.1			26.2
Gross profits before credit costs for trust accounts		260.4			234.1			26.2
Trust fees		55.6			58.1			(2.4	)
Credit costs for trust accounts (1)		—			—			—
Net interest income		123.2			125.0			(1.7	)
Net fees and commissions		57.4			54.7			2.7
Net trading profits		6.8			10.9			(4.1	)
Net other business profits		17.1			(14.6	)		31.8
Net gains (losses) on debt securities		15.6			(11.3	)		26.9
General and administrative expenses		140.1			147.5			(7.4	)
Net business profits before credit costs for trust accounts and provision for general allowance for credit losses		120.3			86.6			33.6
Provision for general allowance for credit losses (2)		—			4.7			(4.7	)
Net business profits		120.3			91.3			28.9
Net non-recurring gains (losses)		(21.1	)		(37.5	)		16.4
Credit costs (3)		(0.5	)		(18.7	)		18.2
Losses on loan write-offs		(0.6	)		(1.9	)		1.2
Provision for specific allowance for credit losses		—			(16.6	)		16.6
Other credit costs		0.1			(0.2	)		0.3
Net gains (losses) on equity securities		(12.0	)		(1.6	)		(10.4	)
Gains on sales of equity securities		4.6			11.5			(6.8	)
Losses on sales of equity securities		(5.9	)		(0.3	)		(5.5	)
Losses on write-down of equity securities		(10.8	)		(12.8	)		2.0
Other non-recurring gains (losses)		(8.4	)		(17.1	)		8.6

Ordinary profits		99.2			53.8			45.3

Net extraordinary gains (losses)		3.7			(0.7	)		4.4
Gains on loans written-off (4)		0.9			1.8			(0.8	)
Reversal of allowance for credit losses (5)		4.2			—			4.2
Reversal of reserve for contingent losses included in credit costs (6)		0.6			—			0.6
Losses on impairment of fixed assets		(0.2	)		(2.4	)		2.2
Loss on adjustment for changes of accounting standard for asset retirement obligations		(1.4	)		—			(1.4	)
Income before income taxes		102.9			53.0			49.8
Income taxes-current		4.7			0.7			4.0
Income taxes-deferred		32.0			10.0			22.0
Total taxes		36.7			10.7			26.0

Net income		66.1			42.3			23.8


(Reference)
Total credit costs (1)+(2)+(3)+(5)+(6)		4.3			(14.0	)		18.4
Total credit costs + Gains on loans written-off (1)+(2)+(3)+(4)+(5)+(6)		5.3			(12.2	)		17.5

Mitsubishi UFJ Financial Group, Inc.

2. Non Performing Loans Based on the Financial Reconstruction Law

BTMU and MUTB Combined including Trust Accounts


	(in billions of yen)
	As of December 31, 2010			As of March 31, 2010
Bankrupt or De facto Bankrupt		132.4			194.2
Doubtful		731.1			845.0
Special Attention		501.2			309.5

Non Performing Loans		1,364.8			1,348.7

Total loans		82,784.1			89,618.5

Non Performing Loans / Total loans		1.64	%		1.50	%

BTMU Non-consolidated
	(in billions of yen)
	As of December 31, 2010			As of March 31, 2010
Bankrupt or De facto Bankrupt		128.2			183.0
Doubtful		692.6			782.8
Special Attention		489.0			290.1

Non Performing Loans		1,309.9			1,255.9

Total loans		72,079.6			79,032.4

Non Performing Loans / Total loans		1.81	%		1.58	%

MUTB Non-consolidated
	(in billions of yen)
	As of December 31, 2010			As of March 31, 2010
Bankrupt or De facto Bankrupt		4.1			11.0
Doubtful		38.3			62.0
Special Attention		11.4			18.6

Non Performing Loans		53.9			91.8

Total loans		10,588.5			10,461.0

Non Performing Loans / Total loans		0.50	%		0.87	%

MUTB Non-consolidated: Trust Accounts
	(in billions of yen)
	As of December 31, 2010			As of March 31, 2010
Bankrupt or De facto Bankrupt		0.1			0.1
Doubtful		0.0			0.1
Special Attention		0.7			0.7

Non Performing Loans		1.0			1.0

Total loans		115.9			125.1

Non Performing Loans / Total loans		0.88	%		0.80	%

Mitsubishi UFJ Financial Group, Inc.

3. Securities

MUFG Consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

(in billions of yen)

As of December 31, 2010

As of March 31, 2010

Amount on consolidated
balance sheet

Differences

Amount on consolidated
balance sheet

Differences

Debt securities being held to maturity

3,221.4

53.7

3,417.7

82.7

(in billions of yen)

As of December 31, 2010

As of March 31, 2010

Amount on consolidated
balance sheet

Differences

Amount on consolidated
balance sheet

Differences

Other securities

61,620.3

511.4

60,406.3

812.7

Domestic equity securities

3,729.4

330.8

4,277.3

681.7

Domestic bonds

44,248.6

140.9

43,376.6

117.1

Other

13,642.2

39.6

12,752.3

13.8

Foreign equity securities

269.1

71.7

282.5

73.5

Foreign bonds

11,549.2

41.2

10,702.5

77.2

Other

1,823.8

(73.4

)

1,767.1

(137.0

)

Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary rights to the trust in “Monetary claims bought” and others in addition to “Securities”.

(in billions of yen)

As of December 31, 2010

As of March 31, 2010

Amount on
balance sheet

Differences

Amount on
balance sheet

Differences

Debt securities being held to maturity

1,122.0

28.4

1,289.6

39.1

Stocks of subsidiaries and affiliates

125.7

(24.8

)

155.7

(32.1

)

(in billions of yen)

As of December 31, 2010

As of March 31, 2010

Amount on
balance sheet

Differences

Amount on
balance sheet

Differences

Other securities

51,772.0

296.3

49,791.9

517.8

Domestic equity securities

2,914.5

109.8

3,366.5

385.6

Domestic bonds

40,592.7

125.9

39,374.1

104.3

Other

8,264.7

60.6

7,051.2

27.7

Foreign equity securities

160.9

64.2

152.1

54.5

Foreign bonds

6,764.4

2.8

5,669.3

45.6

Other

1,339.3

(6.4

)

1,229.7

(72.3

)

Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

The tables include beneficiary rights to the trusts in “Monetary claims bought” in addition to “Securities”.

(in billions of yen)

As of December 31, 2010

As of March 31, 2010

Amount on
balance sheet

Differences

Amount on
balance sheet

Differences

Debt securities being held to maturity

1,748.3

12.2

1,555.8

22.3

Stocks of subsidiaries and affiliates

40.3

11.2

40.3

(2.4

)

(in billions of yen)

As of December 31, 2010

As of March 31, 2010

Amount on
balance sheet

Differences

Amount on
balance sheet

Differences

Other securities

7,405.6

45.7

7,787.2

123.3

Domestic equity securities

763.7

86.4

872.1

146.3

Domestic bonds

3,228.4

15.2

3,620.3

15.9

Other

3,413.4

(55.9

)

3,294.7

(38.9

)

Foreign equity securities

1.7

0.2

1.1

0.3

Foreign bonds

2,980.2

0.4

2,806.3

26.9

Other

431.4

(56.6

)

487.2

(66.2

)

Mitsubishi UFJ Financial Group, Inc.

4. ROE

MUFG Consolidated


	(%)
	For the nine months ended December 31, 2010		For the nine months ended December 31, 2009
ROE*		8.75		3.63


Note:
* ROE is computed as follows:

Net income × 4/3 - Equivalent of annual dividends on nonconvertible preferred stocks				×100
{(Total shareholders’ equity at the beginning of the period - Number of nonconvertible preferred stocks at the beginning of the period × Issue price + Foreign currency translation adjustments at the beginning of the period) + (Total shareholders’ equity at the end of the period - Number of nonconvertible preferred stocks at the end of the period × Issue price + Foreign currency translation adjustments at the end of the period)} / 2

5. Average Interest Rate Spread

BTMU and MUTB Combined

(Domestic business segment)


	(percentage per annum)
	For the nine months ended December 31, 2010		For the nine months ended December 31, 2009
Average interest rate on loans and bills discounted		1.42		1.54
Average interest rate on deposits and NCD		0.12		0.20
Interest rate spread		1.30		1.33

6. Loans and Deposits

BTMU and MUTB Combined


	(in billions of yen)
	As of December 31, 2010		As of March 31, 2010
Deposits (ending balance)		112,567.2		116,488.2
Deposits (average balance)		113,417.8		112,351.7
Loans (ending balance)		73,464.5		79,364.3
Loans (average balance)		74,828.5		80,939.4

	(in billions of yen)
	As of December 31, 2010		As of March 31, 2010
Domestic deposits (ending balance)*		104,019.9		107,597.8
Individuals		64,428.9		63,045.3

Note:

*	Amounts do not include negotiable certificates of deposit and JOM accounts.

Mitsubishi UFJ Financial Group, Inc.

7. Statements of Trust Assets and Liabilities

MUTB Non-consolidated

Including trust assets under service-shared co-trusteeship


(in billions of yen)	As of December 31, 2010		As of March 31, 2010
Assets:
Loans and bills discounted		146.0		155.3
Securities		48,796.5		48,250.7
Beneficiary rights to the trust		30,240.7		30,253.8
Securities held in custody accounts		1,329.3		1,191.4
Monetary claims		11,098.0		10,182.8
Tangible fixed assets		8,876.4		8,965.9
Intangible fixed assets		131.5		133.6
Other claims		2,419.9		1,881.2
Call loans		1,145.1		1,060.2
Due from banking account		1,504.5		1,559.3
Cash and due from banks		1,774.7		1,626.0

Total		107,463.1		105,260.6

Liabilities:
Money trusts		17,057.5		16,807.8
Pension trusts		11,694.8		12,167.4
Property formation benefit trusts		12.9		12.8
Loan trusts		—		42.6
Investment trusts		29,451.9		28,281.5
Money entrusted other than money trusts		2,120.6		2,121.7
Securities trusts		1,522.6		1,281.4
Monetary claim trusts		11,568.4		10,577.5
Equipment trusts		42.7		36.0
Land and fixtures trusts		93.7		93.4
Composite trusts		33,897.6		33,838.1

Total		107,463.1		105,260.6


Note:		The table shown above includes master trust assets under the service-shared co-trusteeship between MUTB and The Master Trust Bank of Japan, Ltd.

Mitsubishi UFJ Financial Group, Inc.

(Reference)

Exposure to “Securitized Products and Related Investments”

Our exposure to securitized products and related investments as of December 31, 2010 is outlined below. (Figures are on a managerial basis and rounded off.)

[Balance, net unrealized gains (losses), realized gains]

•

The balance as of the end of December 2010 decreased to ¥1.40 trillion in total, a decrease of ¥0.34 trillion compared with the balance as of the end of March 2010, mainly due to sales of securitized products, which have risks of being downgraded or deteriorated, and redemptions.

•

Net unrealized losses were ¥72 billion, improved by ¥53 billion compared to the end of March 2010.

•

The effect on the P/L for the nine months ended December 31, 2010 was a gain of ¥2 billion as a result of market recovery.


		(¥bn)
												of which securities being held to maturity²
		Balance¹		Change from end of March 2010			Net unrealized gains (losses)			Change from end of March 2010		Balance		Net unrealized gains (losses)
1	RMBS		85		5			10			7		0		0
2	Sub-prime RMBS		16		(6	)		9			3		0		0
3	CMBS		17		(6	)		(2	)		0		0		0
4	CLOs		1,204		(320	)		(77	)		43		1,011		(77	)
5	Other securitized products (card, etc.)		91		(14	)		(4	)		2		24		(1	)
6	CDOs		4		(4	)		0			0		0		0
7	Sub-prime ABS CDOs		0		0			0			0		0		0

8	Total		1,401		(340	)		(72	)		53		1,034		(77	)

1.	Balance is the amount after impairment and before deducting net unrealized losses.

The above table does not include mortgage-backed securities arranged and guaranteed by U.S. government sponsored enterprises, etc., Japanese RMBS such as Japanese Housing Finance Agency securities, and products held by funds such as investment trusts. These are also applicable to the tables in this document.

Following the publication of “Tentative Solution on Reclassification of Debt Securities” (Practical Issue Task Force No. 26, The Accounting Standards Board of Japan, December 5, 2008), some of our securitized products were reclassified into “securities being held to maturity” from “securities available for sale” at and after the end of January 2009. The balance and net unrealized gains (losses) of the securities being held to maturity in the above table are based on book value before reclassification.

[Distribution by rating]

•

AAA-rated products account for 28% of our investments in securitized products, a decrease of 5% compared with the end of March 2010, mainly due to downgrades in credit ratings of certain CLOs.

•

AAA and AA-rated products account for 81% of our investments in securitized products.


		(¥bn)
		AAA			AA			A			BBB			BB or lower			Unrated			Total
9	RMBS		33			8			13			3			8			21			85
10	Sub-prime RMBS		7			1			0			1			7			0			16
11	CMBS		6			2			2			1			6			0			17
12	CLOs		296			709			71			57			71			0			1,204
13	Other securitized products (card, etc.)		51			19			5			9			6			1			91
14	CDOs		1			2			0			0			1			0			4
15	Sub-prime ABS CDOs		0			0			0			0			0			0			0

16	Total		387			740			90			70			93			22			1,401

17	Percentage of total		28	%		53	%		6	%		5	%		7	%		2	%		100	%

18	Percentage of total (End of March 2010)		33	%		46	%		7	%		7	%		7	%		0	%		100	%

Mitsubishi UFJ Financial Group, Inc.

[Credit exposure related to leveraged loan]

•

We are not engaged in origination or distribution of securitized products of leveraged loans, and therefore, there is no balance of leveraged loans for securitization.

•

The following table shows the balances of LBO loans as of the end of December 2010.


		(¥bn)
		Americas		Europe		Asia		Japan		Total		Change from end of March 2010
1	LBO Loan³(Balance on a commitment basis)		28		100		20		186		334		(149	)
2	Balance on a booking basis		14		89		18		171		292		(126	)

3. Includes balance after refinancing. (Figures are rounded off.)

[Special Purpose Entities (SPEs)]

•

We are engaged in sponsoring ABCP issuance for securitizing our clients’ assets.

•

The balance of assets purchased by ABCP conduits (special purpose companies for issuing ABCP) as of the end of December 2010 was ¥3.50 trillion (¥0.88 trillion overseas).

•

The purchased assets are mainly receivables and they do not include residential mortgages.


<Terminology>

RMBS	:	Asset-backed securities collateralized by residential mortgages
CMBS	:	Asset-backed securities collateralized by commercial mortgages
CLOs	:	Collateralized debt obligations backed by whole commercial loans, revolving credit facilities, or letters of credit
CDOs	:	Structured credit securities backed by a pool of securities, loans, or credit default swaps
ABS CDOs	:	Collateralized debt obligations backed by asset backed securities
LBO Loans	:	Loans collateralized by assets and/or future cash flows of an acquired company
ABCP	:	Commercial papers issued by a Special Purpose Company (SPC) collateralized by receivables

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