Mitsubishi UFJ Financial Group, Inc. (NYSE:MUFG) Q2 2025 Earnings Conference Call November 14, 2024 8:00 PM ET

Company Participants

Jun Togawa - 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
Ken Matsuda - Daiwa Securities
Koichi Niwa - Citigroup

Unidentified Company Representative

Thank you for waiting. We will now begin the online conference call on financial highlights for the first half of the fiscal year ending March 31st, 2025 of Mitsubishi UFJ Financial Group.

I am Nakao from Investor Relations Office, Financial Planning Division and will serve as the moderator today. Jun Togawa, Senior Managing Corporate Executive and Group CFO, will give a 15 to 20 minute presentation on the financial highlights for the first half of FY'24 followed by a Q&A session. The entire session is scheduled to be about 50 minutes.

Before we begin, let me read the disclaimer. In this presentation, we may state forward-looking statements based on current expectations, all of which are subject to risks and uncertainties. Please be aware that actual results may differ materially from those forecasts.

We will now begin the financial results briefing. Mr. Togawa, please begin.

Jun Togawa

Good evening. I am Togawa, Group CFO of MUFG. May I thank all the investors, shareholders, and rating agencies for joining MUFG's online conference call today despite the late hour and on a day when many companies are announcing their results. Please look at the material titled Financial Highlights Under JGAAP for the First Half of the Fiscal Year Ending March 31st, 2025.

First, let me explain our Q2 financial results followed by revised FY'24 performance targets, shareholder return measures and progress on the medium term business plan or MTBP.

Please turn to page one. These are the highlights of our first half financial results. For the first half of FY'24, net operating profits was JPY1,305.3 billion, up by JPY219.5 billion year-on-year, marking the third consecutive year of record high first half profits.

Net income reached JPY1,258.1 billion, also the highest profit since MUFG was established, and the first time profit exceeded JPY1 trillion in the first half. Excluding the impact of the change in the financial results closing date of Morgan Stanley and Krungsri profits increased by JPY391.5 billion.

Furthermore, progress towards the JPY1.5 trillion target set at the beginning of the year is 83%. As explained on the bottom right chart, there are two main drivers of the profit increase. First, the strong performance of customer segments, resulting in a significant increase in profits, even excluding the impact of the change in the closing period of Bank of Ayudhya or Krungsri.