MUFG Bank, Ltd. Announces MUFG Revises Earnings Target for the Fiscal Year Ended March 31, 2020

TOKYO--()--MUFG today announced that it has revised its earnings target for profits attributable to owners of parent for the fiscal year ended March 31, 2020, announced on February 4, 2020 [1], as follows. Year-end dividend forecasts for the fiscal year ended March 31, 2020 (fiscal year-end 12.5 yen per share, total 25.0 yen per share) are unchanged.

1. Earnings target for the fiscal year ended March 31, 2020 under Japanese GAAP

 

Profits attributable to

owners of parent

Previous earnings target (A)

¥750.0bn

Revised earnings target (B)

¥520.0bn

Change (B-A)

¥-230.0bn

Change (%)

-30.7%

[Reference]

Result for the fiscal year ended March 31, 2019

¥872.6bn

2. Reason for the revision

As announced on March 31, 2020, in the consolidated financial statements for the fiscal year ended March 31, 2020, a one-time amortization of goodwill (130.5 billion yen) is planned associated with an impairment loss on shares of Bank of Ayudhya Public Company Limited , a consolidated subsidiary [2].
At the same time, the volatile market movements in the fourth quarter are expected to have an impact on profits attributable to owners of parent company of approximately 65.0 billion yen due to impairment of shareholdings and a one-time amortization of goodwill associated with the impairment loss on shares of equity-method affiliates.
In addition, the recording of provisions for some credit in light of the impact of the COVID-19 pandemic is expected to have an impact of approximately 35.0 billion yen on profits attributable to owners of parent.
As a result, we have revised our earnings target downward by 230.0 billion yen to 520.0 billion yen.

[1]

MUFG Revises Earnings Target for the Fiscal Year Ended March 31, 2020

 

https://www.mufg.jp/dam/pressrelease/2020/pdf/news-20200204-001_en.pdf

[2]

Recording of Extraordinary Losses Associated with One-Time Amortization of Goodwill Posted on Financial

Statements of Fiscal Year Ended March 2020 (under J-GAAP)

 

https://www.mufg.jp/dam/pressrelease/2020/pdf/news-20200331-001_en.pdf

About MUFG

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with over 2,700 locations in more than 50 countries. The Group has over 180,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/english.

This notice contains forward-looking statements regarding estimates, forecasts, etc. in relation to the results of operations, financial conditions and other general management of MUFG and/or the group as a whole (the “forward-looking statements”). The forward-looking statements are made based upon, among other things, MUFG’s current estimates, perceptions and evaluations. In addition, in order for MUFG to adopt such estimates, forecasts, etc. regarding future events, certain assumptions have been made. Accordingly, the statements and assumptions are inherently not guarantees of future performance and may result in inaccuracy from an objective point of view and in material differences from actual results. There exist a number of factors that might lead to uncertainties and risks. For the main matters that may be currently forecast, please see the most recent Financial Highlights, the Annual Securities Report, Disclosure Book, Annual Report, and other disclosures that MUFG has announced.

 

Contacts

Naokazu Matsuda
Public Relations Division
Tokyo/Head Office
Mitsubishi UFJ Financial Group, Inc.
T +81-3-5218-1815
E naokazu_matsuda@mufg.jp

Contacts

Naokazu Matsuda
Public Relations Division
Tokyo/Head Office
Mitsubishi UFJ Financial Group, Inc.
T +81-3-5218-1815
E naokazu_matsuda@mufg.jp