Mitsubishi UFJ Financial Group (8306) investor relations material

Executive summary

• Net operating profits reached ¥2,377.2 billion, up ¥865.5 billion year-over-year, driven by customer segment growth, higher net interest income, increased lending, and strong fee income from domestic and overseas businesses.

• Profits attributable to owners of parent grew by ¥586.3 billion year-over-year to ¥2,427.2 billion, with ROE reaching 11.3%, the highest since establishment and marking the third consecutive record year.

• Ordinary income rose 7.3% year-over-year to ¥14,620.8 billion, and comprehensive income surged 58.1% to ¥3,271.2 billion.

Financial highlights

• Gross profits rose by ¥1,290.2 billion year-over-year, reaching ¥5,944.4 billion, driven by higher net interest income, improved lending margins, and strong fee income.

• Net fees and commissions expanded by about ¥300 billion for two consecutive years, supported by acquisitions.

• G&A expenses rose due to FX impact, acquisitions, strategic investments, and inflation, but the expense ratio remained below target.

• Total credit costs increased to ¥355.8 billion, reflecting a rebound from prior year reversals and provisions for Middle East exposure.

• Net gains on equity securities declined due to the absence of large prior-year gains.

Outlook and guidance

• FY2026 target for profits attributable to owners of parent is ¥2,700.0 billion, over 10% higher than FY2025.

• ROE target for FY2026 is approximately 12%.

• Annual dividend for FY2026 projected at ¥96, up from ¥86 in FY2025; share buybacks up to ¥100 billion planned for the first half.

• Management will reassess capital allocation and buybacks in the second half based on capital needs and profit progress.