Mitsubishi UFJ Financial Group (8306) Investors Day 2024 summary

Review of previous medium-term business plan (MTBP)

• Net profits rose by over JPY 700 billion and ROE reached 8.5%, surpassing targets.

• Structural reforms included the sale of Union Bank, cost control, and RWA management.

• Corporate culture and digital transformation initiatives showed positive effects.

• Retail and Digital Business Group exceeded net operating profit and ROE targets, with over 10 million online service users.

• Commercial Banking and Wealth Management achieved higher profits and ROE through cost structure reform and business integration.

Strategic direction and financial guidance for current MTBP

• The current MTBP targets a JPY 500 billion increase in net operating profits and a 1% ROE rise over three years.

• Seven growth strategies leverage the business portfolio and global/domestic economic growth.

• PBR goal is to match global top peers, with a focus on solving social issues and accelerating transformation.

• FY26 financial targets include NOP and ROE improvements across all business groups, with specific KPIs.

• Group-wide FY26 net operating profit target is ¥1.6tn, up ¥340bn from FY23, with a focus on balance sheet profitability and digital transformation.

Key business group strategies and initiatives

• Retail & Digital: FY26 NOP target of ¥230bn, focus on digital services, customer LTV, and integrated experiences.

• Commercial Banking & Wealth Management: FY26 NOP target of ¥250bn, focus on business succession, wealth management, and digital sales.

• Japanese Corporate & Investment Banking: FY26 NOP target of ¥515bn, stable double-digit ROE, equity holding reduction, and GX/semiconductor initiatives.

• Global Commercial Banking: FY26 NOP target of ¥350bn, focus on Asia x Digital, India, and group synergies.

• Global Corporate & Investment Banking: FY26 NOP target of ¥380bn, 8% ROE, balance sheet optimization, and Morgan Stanley collaboration.

• Global Markets: FY26 NOP target of ¥300bn, 6.5% ROE, integration with GCIB, and digital transformation.

• Asset Management & Investor Services: FY26 NOP target of ¥145bn, 13.5% ROE, global AMIS expansion, and Japan asset management policy.