Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) Q4 2024 Earnings Conference Call May 16, 2024 9:00 PM ET

Company Participants

Jun Togawa - Representative Corporate Executive, Senior Managing Corporate Executive and Group CFO

Conference Call Participants

Ken Takamiya - Nomura Securities
Shinichiro Nakamura - BofA Securities
Maoki Matsuno - Mizuho Securities
Takahiro Yano - JPMorgan
Makoto Kuroda - Goldman Sachs
Ken Matsuda - Citigroup

Unidentified Company Representative

Thank you very much for waiting. We will now begin Mitsubishi UFJ Financial Group briefing on the financial highlights for the fiscal year ended March 31, 2024. Thank you very much for joining us today. I am [Nakao] from Investor Relations office, Financial Planning, and I will be your moderator today. First, Mr.

Jun Togawa, Representative Corporate Executive, Senior Managing Corporate Executive and Group CFO, will give a presentation on the financial highlights for the fiscal year ended March 31, 2024, for about 15 minutes, and then we will move on to the Q&A session.

The entire session is expected to take approximately 15 minutes. Before I begin, I would like to ask for your understanding. The presentation to follow may include forward-looking statements based on current expectations. However, all such statements are subject to risks and uncertainties. Please be aware that actual results may differ materially from those discussed in the forward-looking statements.

Now we would like to begin. Mr. Togawa, please begin your presentation.

Jun Togawa

Investors, shareholders and representatives of rating agencies, it is pleasure to meet you. My name is Togawa, and I was appointed Group CFO this April. Thank you for joining this online conference at this late hour.

Please refer to the presentation material titled financial highlights under Japanese GAAP for the fiscal year ended March 31, 2024. After explaining our financial results for FY '23, I will explain our performance targets and shareholder returns policy for FY '24 and outline our new medium-term business plan starting this fiscal year.

I will start with the income statement summary. Please turn to Page 10. Line 1, gross profits on the left side of the table increased by ¥229.5 billion year-on-year. Line 2 and below is a breakdown of gross profits. In FY '23, there was a large decrease in net interest income and a large increase in net other operating profits.

In addition to the absence of revenue resulting from the sale of MUB, in the treasury business of the global markets, there was a recording of a decrease of gains on investment trusts cancellation of ¥555.7 billion, included in the prior year for bear funds with hedge purposes and losses on the sale of foreign bonds in net other operating profits or losses and rebalancing of the bond portfolio, resulting in adjustment of accounting items.