TOKYO--(BUSINESS WIRE)--Mitsubishi UFJ Financial Group, Inc. (MUFG) today announced the “functional realignment” of its group subsidiaries with the dual aims of expeditiously adapting to domestic and global structural changes in the business environment surrounding MUFG, including low domestic interest rate situations, rising global protectionism, greater geopolitical risks and emerging FinTech, and of providing outperforming value to our customers’ diversifying and increasingly sophisticated needs.
In the “functional realignment,” Mitsubishi UFJ Trust and Banking Corporation (the Trust Bank) will transfer its corporate loan-related businesses (*) to The Bank of Tokyo-Mitsubishi UFJ, Ltd. (the Commercial Bank) around April 2018 (**) by way of a corporate split, subject to resolutions of the relevant subsidiaries and approvals by the relevant regulatory authorities.
(*) These businesses include the corporate loan business, project finance, and real estate finance, and any related foreign exchange and remittance services, but do not include pension-related services, the corporate agency business, or real estate related businesses.
(**) The definitive effective date will be determined and announced at a later date.
The Trust Bank will also acquire the remaining shares in Mitsubishi UFJ Kokusai Asset Management Co., Ltd (MUKAM) from the Commercial Bank and Mitsubishi UFJ Securities Holdings Co., Ltd. (the Securities Firm), thus becoming the sole shareholder of MUKAM.
Through this “functional realignment,” the corporate loan business within MUFG will be integrated in the Commercial Bank, and the Trust Bank will focus on its domestic and global asset management and administration business, one of the most important growth segments for MUFG. The Trust Bank will strengthen its real estate business, pension service, shareholder service, and estate administration service, thereby integrating its high level of expertise with MUFG’s wide customer base and developing a “trust business-oriented consulting and solution business.”
Simultaneously, the Commercial Bank has determined to change its legal name to MUFG Bank, Ltd. as of April 1, 2018. This legal name change is subject to obtaining approvals from the relevant regulatory authorities.
Through these initiatives, MUFG will further strengthen functional operations on a group basis so that each business subsidiary can focus on its respective areas of expertise and seamlessly provide truly “integrated financial services,” the strength of MUFG. For the large-sized corporate segment, MUFG will develop a structure to accumulate industry knowledge and provide optimal solutions across entities and regional boundaries on a group basis. For the wealth management segment, MUFG will develop a solution model tailored to each customer’s needs and create a uniform “wealth management brand” for MUFG.
Furthermore, MUFG commits that each of its subsidiaries will benefit from lower cost operations and will strengthen their management base not only through enhanced efficiency on a standalone basis, but also through uniformly efficient use of management resources across the group and a reduction in duplication and streamlining of the group-wide platform, including corporate center functions, operational processes, and information and technology systems.
1. Outline of the “Functional Realignment” of Group Subsidiaries
Please refer to the attached diagram.
2. Reason for legal name change
The legal names of the Commercial Bank, the Trust Bank and the Securities Firm will be unified under the “Mitsubishi UFJ” brand with the aim of clearly defining the concept that each subsidiary performs their respective functions in line with the group-wide fundamental strategy of MUFG. For the English name of the Commercial Bank, we will use “MUFG” instead of “Mitsubishi UFJ”, which is globally recognized and easy to use.
3. Legal name change
|Current legal name||New legal name|
|The Bank of Tokyo-Mitsubishi UFJ, Ltd.||MUFG Bank, Ltd.|
4. Planned date for the name change
April 1, 2018 (subject to change in connection with decisions on the details of the timing of the “functional restructuring”)
5. Outline of the Commercial Bank
|Current legal name||The Bank of Tokyo-Mitsubishi UFJ, Ltd.|
|Location*||2-7-1 Marunouchi Chiyoda-ku, Tokyo|
Title/Name of representative director
|President & CEO, Takashi Oyamada|
1,712 billion yen (as of March 31, 2017, unconsolidated)
* Registered head office and main office