Mitsubishi UFJ Financial Group

Mitsubishi UFJ Financial Group, Inc. (MUFG; 株式会社三菱UFJフィナンシャル・グループ, Kabushiki gaisha Mitsubishi UFJ Finansharu Gurūpu) is a Japanese bank holding and financial services company headquartered in Chiyoda, Tokyo, Japan.[5]

Mitsubishi UFJ Financial Group, Inc.
Native name
株式会社三菱UFJフィナンシャル・グループ
Kabushiki gaisha Mitsubishi Yūefujei Finansharu Gurūpu
TypePublic (Kabushiki gaisha)
IndustryBanking, Financial services
Predecessor
  • Mitsubishi Tokyo Financial Group
  • UFJ Holdings
FoundedOctober 1, 2005 (2005-10-01) (by merger)
Headquarters
2-7-1 Marunouchi, Chiyoda, Tokyo
,
Japan
Area served
Worldwide
Key people
Kanetsugu Mike
(Chairman)
Hironori Kamezawa
(President and Group CEO)
ServicesPersonal Banking
Corporate banking
Investment banking
Investment management
Wealth Management
Mortgage
Credit cards
Investor Services
RevenueIncrease JP¥4.495 trillion (2013)[1]
Increase JP¥1.069 trillion (2013)[1]
AUMDecrease US$684 billion (2022) [2]
Total assetsIncrease US$3.1 trillion (2020)[3]
Total equityIncrease JP¥10.608 trillion (2013)[1]
OwnerMitsubishi Group
Number of employees
168,500 (2020) [4]
Subsidiaries
Websitewww.mufg.jp

It is Japan's largest financial group and the world's second largest bank holding company holding around US$1.8 trillion (JP¥148 trillion) in deposits as of March 2011.[1] The letters MUFG come from Mitsubishi and United Financial of Japan. MUFG holds assets of around US$3.1 trillion as of 2016 and is one of the "Three Great Houses" of the Mitsubishi Group[6] alongside Mitsubishi Corporation and Mitsubishi Heavy Industries.

Background

The company was formed on October 1, 2005, with the merger of Tokyo-based Mitsubishi Tokyo Financial Group (MTFG), and Osaka-based UFJ Holdings.

The core banking units of the group, Bank of Tokyo-Mitsubishi and UFJ Bank, were merged on January 1, 2006, to form MUFG Bank. This integration was originally scheduled to take place on October 1, 2005, the same day that the parent companies were merged. However, pressure from Japan's Financial Services Agency, which wanted to ensure the smooth systems integration of the two banking giants, caused the merger of the banks to be postponed for three months. The trust banking and securities units of MTFG and UFJ were merged according to the original schedule on October 1, 2005.

On October 31, 2018, MUFG to acquire Australian Asset Manager, Colonial First State Global Asset Management.[7]

Senior leadership
  • Chairman: Kanetsugu Mike (since April 2021)
  • Chief Executive: Hironori Kamezawa (Since April 2021)

List of former chairmen
  1. Ryosuke Tamakoshi (2005–2010)[8]
  2. Takamune Okihara (2010–2014)[9]
  3. Kiyoshi Sono (2014–2019)
  4. Nobuyuki Hirano (2019–2021)

List of former chief executives
  1. Nobuo Kuroyanagi (2005–2010)[8]
  2. Katsunori Nagayasu (2010–2013)[9]
  3. Nobuyuki Hirano (2013–2019)[10]
  4. Kanetsugu Mike (2019–2021)

History

The financial group dates back to 1880 as the Yokohama Specie Bank, later renamed to The Bank of Tokyo. Also in 1880, The Mitsubishi Bank, Ltd. was founded by former samurai Yataro Iwasaki. In 1919, the Mitsubishi Bank financed the Mitsubishi zaibatsu, most of which is today Mitsubishi Heavy Industries. After the Second World War the Mitsubishi Keiretsu was broken up under US imposed laws, and Mitsubishi Bank took on greater independence, albeit still central to the financing of the growth of the Mitsubishi group of companies.

In April 1996, The Mitsubishi Bank, Ltd. and The Bank of Tokyo, Ltd. merged. The Bank of Tokyo had been set up by the Japanese Government to act as Japan's international bank, and solely responsible for all Yen forex trading. Uniquely in Japan, with no keiretsu, Bank of Tokyo was an ideal partner for Mitsubishi Bank, complementing the latter' strong domestic franchise with a unique international footprint. Additionally, during Japan's lost decade of economic stagnation, this marriage of two relatively strong banks was seen as a positive step in cleaning up the country's moribund banking sector.

In July 2004, Japan's fourth-largest financial group UFJ Holdings offered to merge with the Mitsubishi Tokyo Financial Group. The merger of the two bank holding companies was completed on October 1, 2005. UFJ was created from a merger with the Toyo Trust and Banking. UFJ was accused by the government of corruption and making bad loans to the yakuza crime syndicates.

The takeover of UFJ by the Mitsubishi Tokyo Financial Group was challenged by the Sumitomo Mitsui Banking Group, another of Japan's large banking groups, which launched a competing takeover bid. The Mitsubishi Tokyo Financial Group ultimately prevailed in the fight to acquire UFJ. The battle between the two Japanese mega-banks seemed to signal an end to the clubby atmosphere that had prevailed in Japan's postwar banking industry.[11]

The trust banking and securities units of the two groups were merged on October 1, 2005. The core banking units of MTFG and UFJ, The Bank of Tokyo-Mitsubishi, Ltd. and UFJ Bank, respectively, continued to operate separately until January 1, 2006, when they were merged to form MUFG Bank.

In September 2008, MUFG signed a letter of intent with Morgan Stanley to form an alliance and purchase 20% of the American firm.[12]

In 2008 at the 2008 ALB Japan Law Awards,[13] Mitsubishi UFJ was crowned:

  • In-House of the Year – Japan Investment Bank In-House Team of the Year
  • Deal of the Year – Debt Market Deal of the Year

In April 2011, MUFG and Morgan Stanley entered into an agreement to convert MUFG's outstanding convertible preferred stock in Morgan Stanley into Morgan Stanley stock.[14]

Mitsubishi Tokyo Financial Group, Inc.
MTFG Plaza is an office building of the Mitsubishi Tokyo Financial Group.

Mitsubishi Tokyo Financial Group, Inc. (MTFG; 株式会社三菱東京フィナンシャル・グループ, Kabushiki kaisha mitsubishi tōkyō finansharu gurūpu) was one of Japan's largest banks ranked by assets (an estimated US$1 trillion), second only to Mizuho Holdings. On October 1, 2005, MTFG completed the acquisition of UFJ Holdings, Japan's fourth largest banking group, to form the Mitsubishi UFJ Financial Group (MUFG), the world's largest bank ranked by assets with ¥190 trillion (approximately $1.7 trillion).

MTFG was widely considered financially the strongest of Japan's large banks, with non-performing loans down to 2.9% of assets.

UFJ Holdings, Inc.

UFJ Holdings, Inc. (株式会社UFJホールディングス; kabushikigaisha UFJ hōrudingusu) was the weakest among the three major banking groups in Japan. UFJ, an abbreviation of United Financial of Japan, was formed from a merger of Sanwa Bank and Tokai Bank with the Toyo Trust & Banking Co. Ltd, a part of the Toyota Motor Corporation. At the time, it was one of the largest shareholders of Toyota. The Chairman of Toyota was a director on its board during the financial scandals and indictments of three UFJ executives. The banking crisis led to its merger, after being one of the world's greatest losing corporations, on October 1, 2005, with the Mitsubishi Tokyo Financial Group to form the Mitsubishi UFJ Financial Group.

Formed April 1, 2001, with the merger of Sanwa Bank, Tokai Bank, and Toyo Trust and Banking.

In July 2004, UFJ announced plans to merge with the Mitsubishi Tokyo Financial Group. The merger was completed on October 1, 2005, creating the Mitsubishi UFJ Financial Group, the world's second biggest bank by assets at $1.7 trillion, trailing behind Citigroup with $2.4 trillion in assets.

In June 2011, MUFG took a 9.99 percent stake in Lynas Corp, an Australian rare earths developer.[15]

Group companies

Commercial bank

Associated companies
  • Lease
    • Mitsubishi UFJ Lease & Finance Company Limited
    • BOT Lease Co., Ltd.
    • Hitachi Capital Corporation
  • Research and consulting
    • Mitsubishi UFJ Research and Consulting Co.,Ltd
    • Mitsubishi Asset Brains
    • Mitsubishi UFJ Trust Investment Engineering Laboratory
  • System
    • Mitsubishi Research Institute DCS
    • Mitsubishi UFJ Information Technology, Ltd.
    • Mitsubishi UFJ Trust Systems Co.,Ltd.
    • MUS information Systems Co.,Ltd.
    • MU Business Engineering
  • Asset management
  • Asset Management
    • Mitsubishi UFJ Kokusai Asset Management Co., Ltd.
    • MU Investment Advisor
    • MUFG Investor Services
  • Venture capital
    • Mitsubishi UFJ Capital
  • Wealth management
    • Mitsubishi UFJ Wealth Management Securities
    • Mitsubishi UFJ Personal Financial Advisors
  • Factoring
    • Mitsubishi UFJ Factor
  • Securities agency
    • Japan share holder service
  • Banking agency
    • Mitsubishi UFJ Financial Partners
  • Foreign currency exchange
    • Tokyo Credit Services,Ltd.
  • Consumer finance
    • Acom (equity-method affiliate)
  • Cards and credit sales
    • Mitsubishi UFJ NICOS
    • RYOSHIN DCCARD CO.,LTD.
    • JACCS CO., LTD. (affiliated company accounted for by the equity method)
    • JALCARD,INC.
    • Tokyo Credit Services,Ltd.
  • Finance
  • Real estate
    • Mitsubishi UFJ Real Estate Services Co.,Ltd.
  • Debt collection
    • MU Frontier Servicer Co.,Ltd
  • Public interest corporation
    • Foundation Mitsubishi UFJ Trust Scholarship Foundation
    • Mitsubishi UFJ Trust and Regional Culture Foundation
    • Mitsubishi UFJ Trust Arts Foundation
    • Mitsubishi UFJ International Foundation
    • Mitsubishi Economic Research Institute
    • Mitsubishi Foundation
    • Mitsubishi Yowa

Investment holdings

Major shareholders

As of March 31, 2013:[1]

Investment trusts managed by the Japan Trustee Services Bank 7.47%
Investment trusts managed by The Master Trust Bank of Japan 4.44%
Nippon Life 2.01%
ADR Holders (held by the Bank of New York Mellon) 1.94%
State Street 1.53%
State Street (China clients) 1.27%
Meiji Yasuda Life 1.23%
JPMorgan Chase Bank, N.A. London Secs Lending Omnibus Account 1.14%
Toyota 1.05%

See also

References
  1. "US. SEC Annual Report (Form 20-F)" (PDF). May 2013. Archived from the original (PDF) on December 25, 2015. Retrieved October 14, 2013.
  2. "Asset Management".
  3. "Who We Are". October 13, 2020.
  4. "Mitsubishi UFJ Financial: Number of Employees 2006-2021 | MUFG".
  5. "About MUFG Archived February 10, 2010, at the Wayback Machine." Mitsubishi UFJ Financial Group. Retrieved on December 7, 2009.
  6. "MUFG; Company Overview – Mitsubishi UFJ Financial Group". www.mufg.jp. Archived from the original on February 10, 2010.
  7. "Mitsubishi UFJ Financial to buy CBA's asset management operations". Australian Financial Review. October 31, 2018.
  8. "Establishment of Mitsubishi UFJ Financial Group" (PDF). October 3, 2005.
  9. "Changes of Directors" (PDF). February 25, 2010.
  10. "MUFG names Hirano, soft-spoken but tough negotiator, as president". Reuters. February 28, 2013.
  11. Fackler, Martin (August 2, 2004). "Banking Duel in Japan Signals End of Old Ways". The Wall Street Journal. Retrieved July 27, 2019.
  12. Press Release Archived September 25, 2008, at the Wayback Machine. Morgan Stanley (2008-09-22). Retrieved on 2013-08-23.
  13. "Asian Legal Business". www.legalbusinessonline.com.au.
  14. "Mitsubishi UFJ Financial Group And Morgan Stanley Announce Agreement To Convert Morgan Stanley Convertible Preferred Stock To Common Stock – TheStreet". thestreet.com. 2011. Archived from the original on October 11, 2012. Retrieved July 19, 2011.
  15. "Mitsubishi UFJ buys 10% of Australia's Lynas – MarketWatch". marketwatch.com. 2011. Archived from the original on July 8, 2011. Retrieved July 19, 2011.
  16. "Mitsubishi UFJ to Buy Stake in VietinBank for $743 Million". Bloomberg. December 27, 2012. Archived from the original on July 7, 2013. Retrieved December 27, 2012.
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