Mitsubishi UFJ Financial Group Bank

History of MUFG

Mitsubishi UFJ Financial Group (MUFG) is a Japanese multinational banking and financial services company headquartered in Tokyo. The company was formed through a merger between two leading financial services companies, Mitsubishi Financial Group and UFJ Financial Group. As a single company, MUFG now stands as the fifth-largest bank in the world, with total assets of more than ¥2.4 trillion and more than 200 subsidiaries operating in 20 countries. The company’s primary business areas are financial services, real estate, and insurance. MUFG also operates several subsidiary businesses with services ranging from asset management to internal audit. MUFG’s history dates back to the 19th century. Founded as a shipping company in 1876, Mitsubishi Shipbuilding and Engineering Co. Ltd. (Mitsubishi) began offering financial services in the early 1900s. In the late 1940s, the company’s financial arm branched out into life insurance, followed by an expansion into the brokerage business in the early 1950s. Meanwhile, UFJ Holdings, Inc. (UFJ) was established in 1917 as Dai-Ichi Mutual Life Insurance Co. Ltd. The company rebranded as UFJ Holdings in 2002 and joined the Mitsubishi group of companies in 2004. ## MUFG Securities Co., Ltd.

MUFG Securities Co., Ltd. (MUFG Securities) was established in July 2012 as a wholly-owned subsidiary of MUFG. The company is now the largest securities firm in Japan, with a market share of 41.2 percent in the domestic securities industry. It also ranks as the fifth-largest securities firm in the world. In the fiscal year ending March 2019, MUFG Securities generated total sales of ¥2.2 trillion, a net income of ¥224.8 billion, and a return on equity of 25.0 percent.

UFJ Bank Ltd. (formerly UFJ Bank)

UFJ Bank Ltd. (UFJ Bank) is a leading commercial bank in Japan with a strong presence in Asia. UFJ Bank also operates a large network of branches in Europe. The company’s business operations span a range of product and service offerings in retail banking, corporate banking, investment banking and equity sales, and asset management. In the fiscal year ending March 2019, UFJ Bank generated total sales of ¥6.4 trillion, a net income of ¥869.9 billion, and a return on equity of 23.8 percent. In addition, the company’s core Tier 1 capital ratio stood at 12.9 percent, and its Tier 1 risk-adjusted capital ratio was 16.8 percent.

MUFG Credit Services Co., Ltd.

MUFG Credit Services Co., Ltd. (MUFG CS) is a joint venture between MUFG and the American financial services company Capital One Financial Corporation, with MUFG holding a 75 percent stake. The company is engaged in the provision of consumer credit services and financing of automobile purchases. In the fiscal year ending March 2019, MUFG CS generated total sales of ¥6.4 billion, a net income of ¥1.1 billion, and a return on equity of 17.8 percent.

Merger of MUFG and UFJ

On October 1, 2006, Mitsubishi UFJ Financial Group (MUFG) came into being through the merger of Mitsubishi Financial Group and UFJ Holdings. Since the two companies operated in different sectors of the financial services industry, the merger was aimed at creating synergies across the two industries, thereby leading to greater operational efficiency. Mitsubishi and UFJ had operated as subsidiaries of their holding companies since the 1950s. Mitsubishi had been a part of the Mitsubishi group of companies since the 1920s, and UFJ had been a part of the Dai-Ichi Mutual Life Insurance group since the 1930s. MUFG was formed with a 10-year business plan to address the issues of declining net interest margin and rising credit risk. The company achieved significant milestones towards meeting its business objectives, including strengthening its capital base by raising additional equity through a public debt offering and a private offering and by transferring ownership of its UFJ-branded real estate brokerage business to UFJ Holdings.

Recent Developments at MUFG

In September 2018, MUFG and Standard Chartered Bank (SCB) signed an agreement to form a joint venture in India through which they aim to sell their financial products and services across the country. In December 2018, MUFG and the Mitsubishi UFJ Trust and Banking Corporation (MTT) signed a joint venture agreement with the Land, Infrastructure, and Transport Finance Company (LFC) to establish LITFC Capital, a specialist investment company that aims to provide institutional financing to projects in the transport and infrastructure sectors in Thailand. In March 2019, the MUFG Research Institute released its “Next Economy Report”, which forecasts a shift from the current “Internet Economy” to an economy based on artificial intelligence, big data, and other emerging technologies.

Conclusion

The Mitsubishi UFJ Financial Group, or MUFG, is the result of a merger between two leading financial services companies, Mitsubishi Financial Group and UFJ Financial Group. As a single company, MUFG now stands as the fifth-largest bank in the world, with total assets of more than ¥2.4 trillion and more than 200 subsidiaries operating in 20 countries. The company’s primary business areas are financial services, real estate, and insurance. MUFG also operates several subsidiary businesses with services ranging from asset management to internal audit.

As a leading financial services company, MUFG offers a wide range of products and services to meet various customer needs for savings, investment, and insurance. The company also maintains a strong commitment to corporate social responsibility, protecting the environment, and providing financial services to underserved communities.