6-K 1 d6k.htm FORM 6-K Form 6-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

 

Form 6-K

 

 

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of July, 2009

 

 

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

( Translation of registrant’s name into English )

 

 

7-1, Marunouchi 2-chome, Chiyoda-ku,

Tokyo 100-8388, Japan

( Address of principal executive offices )

 

 

[ Indicate by check mark whether the registrant files or

will file annual reports under cover Form 20-F or Form 40-F. ]

Form 20-F       X            Form 40-F              

[ Indicate by check mark whether the registrant by furnishing the information

contained in this Form is also thereby furnishing the information to the Commission

pursuant to Rule 12g3-2( b ) under the Securities Exchange Act of 1934. ]

Yes                      No      X    

This report on Form 6-K is hereby incorporated by reference into the prospectus constituting part of the registration statement on Form F-3 of The Bank of Tokyo-Mitsubishi UFJ, Ltd. (No. 333-11072.)

 

 

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.
Date : July 31, 2009   By  

/s/ Naoki Imaoka

    Naoki Imaoka
    Chief Manager
    Corporate Administration Division


 

 

Selected Financial Information

under Japanese GAAP

For the Three Months Ended June 30, 2009

 

 

 

 

 

 

 

 

 

 

  LOGO   

 

 

Mitsubishi UFJ Financial Group, Inc.


Mitsubishi UFJ Financial Group, Inc.

[Contents]

 

  1. Financial Results      1
  [ MUFG Consolidated ]*1   
  [ BTMU and MUTB Combined ]*2*3*4   
  [ BTMU Non-consolidated ]   
  [ MUTB Non-consolidated ]   
  2. Non Performing Loans Based on the Financial Reconstruction Law      5
  [ BTMU and MUTB Combined including Trust Accounts ]   
  [ BTMU Non-consolidated ]   
  [ MUTB Non-consolidated ]   
  [ MUTB Non-consolidated : Trust Accounts ]   
  3. Fair Value Information on Securities      6
  [ MUFG Consolidated ]   
  [ BTMU Non-consolidated ]   
  [ MUTB Non-consolidated ]   
  4. ROE      9
  [ MUFG Consolidated ]   
  5. Average Interest Rate Spread      9
  [ BTMU and MUTB Combined ]   
  6. Loans and Deposits      9
  [ BTMU and MUTB Combined ]   
  7. Statements of Trust Assets and Liabilities      10
  [ MUTB Non-consolidated ]   
  (Reference)     

Exposure to Securitized Products and Related Investments

     11

 

(*1) “MUFG” means Mitsubishi UFJ Financial Group, Inc.
(*2) “BTMU” means The Bank of Tokyo-Mitsubishi UFJ, Ltd.
(*3) “MUTB” means Mitsubishi UFJ Trust and Banking Corporation.
(*4) “BTMU and MUTB Combined” means simple sum of “BTMU” and “MUTB” without consolidation processes.


Mitsubishi UFJ Financial Group, Inc.

1. Financial Results

MUFG Consolidated

 

     (in billions of yen)  
     For the three months ended     Increase
(Decrease)
(A)-(B)
 
     June 30, 2009
(A)
    June 30, 2008
(B)
   

Gross profits

   873.4      801.2      72.1   

Gross profits before credit costs for trust accounts

   873.4      801.2      72.1   

Net interest income

   555.2      470.0      85.2   

Trust fees

   24.3      32.3      (7.9

Credit costs for trust accounts (1)

   —        —        —     

Net fees and commissions

   233.3      239.2      (5.9

Net trading profits

   84.3      44.1      40.1   

Net other business profits

   (23.8   15.3      (39.2

Net gains (losses) on debt securities

   17.8      7.3      10.4   

General and administrative expenses

   541.5      536.5      5.0   

Amortization of goodwill

   8.2      4.2      3.9   

Net business profits before credit costs for trust accounts,
provision for general allowance for credit losses and amortization of goodwill

   340.1      268.9      71.1   

Net business profits before credit costs for trust accounts and
provision for general allowance for credit losses

   331.8      264.7      67.1   

Provision for general allowance for credit losses (2)

   (26.6   (1.6   (24.9

Net business profits *

   305.2      263.0      42.1   

Net non-recurring gains (losses)

   (168.9   (166.1   (2.7

Credit costs (3)

   (163.2   (141.4   (21.7

Losses on loan write-offs

   (52.9   (48.7   (4.2

Provision for specific allowance for credit losses

   (108.4   (92.3   (16.1

Other credit costs

   (1.7   (0.3   (1.3

Net gains (losses) on equity securities

   30.2      (10.1   40.3   

Gains on sales of equity securities

   38.4      19.4      18.9   

Losses on sales of equity securities

   (2.6   (0.8   (1.7

Losses on write-down of equity securities

   (5.5   (28.7   23.1   

Profits (losses) from investments in affiliates

   0.4      6.7      (6.2

Other non-recurring gains (losses)

   (36.4   (21.2   (15.1
                  

Ordinary profits

   136.3      96.8      39.4   
                  

Net extraordinary gains (losses)

   2.9      9.5      (6.5

Reversal of allowance for credit losses (4)

   —        —        —     

Reversal of reserve for contingent losses included in credit costs (5)

   —        1.3      (1.3

Income before income taxes and others

   139.2      106.3      32.8   

Income taxes-current

   17.4      16.5      0.9   

Income taxes-deferred

   29.0      12.3      16.7   

Total taxes

   46.5      28.8      17.6   

Minority interests

   16.7      26.3      (9.5
                  

Net income

   75.9      51.1      24.7   
                  

 

Note:

      

*       Net business profits = Banking subsidiaries’ net business profits + Other consolidated entities’ gross profits - Other consolidated entities’ general and administrative expenses - Other consolidated entities’ provision for general allowance for credit losses - Amortization of goodwill - Inter-company transactions

            

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)+(5)

   (189.8   (141.7   (48.1

 

1


Mitsubishi UFJ Financial Group, Inc.

BTMU and MUTB Combined

 

     (in billions of yen)  
     For the three months ended     Increase
(Decrease)
(A)-(B)
 
     June 30, 2009
(A)
    June 30, 2008
(B)
   

Gross profits

   507.8      517.1      (9.3

Gross profits before credit costs for trust accounts

   507.8      517.1      (9.3

Net interest income

   375.0      367.1      7.9   

Trust fees

   18.1      24.5      (6.3

Credit costs for trust accounts (1)

   —        —        —     

Net fees and commissions

   108.8      105.4      3.3   

Net trading profits

   37.1      6.2      30.8   

Net other business profits

   (31.4   13.7      (45.2

Net gains (losses) on debt securities

   16.4      9.0      7.4   

General and administrative expenses

   315.8      343.3      (27.4

Net business profits before credit costs for trust accounts and
provision for general allowance for credit losses

   191.9      173.8      18.0   

Provision for general allowance for credit losses (2)

   2.0      (7.2   9.3   

Net business profits

   194.0      166.6      27.3   

Net non-recurring gains (losses)

   (94.9   (127.7   32.8   

Credit costs (3)

   (80.5   (97.6   17.0   

Losses on loan write-offs

   (49.3   (45.2   (4.1

Provision for specific allowance for credit losses

   (30.2   (47.9   17.7   

Other credit costs

   (1.0   (4.4   3.4   

Net gains (losses) on equity securities

   18.6      (11.6   30.3   

Gains on sales of equity securities

   26.9      16.9      9.9   

Losses on sales of equity securities

   (2.4   (0.6   (1.7

Losses on write-down of equity securities

   (5.7   (27.9   22.1   

Other non-recurring gains (losses)

   (32.9   (18.3   (14.6
                  

Ordinary profits

   99.1      38.9      60.1   
                  

Net extraordinary gains (losses)

   8.2      3.0      5.1   

Reversal of allowance for credit losses (4)

   1.4      0.3      1.0   

Reversal of reserve for contingent losses included in credit costs (5)

   3.7      0.6      3.0   

Income before income taxes

   107.3      41.9      65.3   

Income taxes-current

   6.3      0.3      5.9   

Income taxes-deferred

   28.5      8.9      19.5   

Total taxes

   34.8      9.3      25.5   
                  

Net income

   72.5      32.6      39.8   
                  

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)+(5)

   (73.3 )    (103.9   30.5   

 

2


Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

 

     (in billions of yen)  
     For the three months ended     Increase
(Decrease)
(A)-(B)
 
     June 30, 2009
(A)
    June 30, 2008
(B)
   

Gross profits

   425.6      435.0      (9.4

Net interest income

   334.6      326.3      8.3   

Net fees and commissions

   91.9      85.6      6.3   

Net trading profits

   32.5      8.4      24.1   

Net other business profits

   (33.5   14.6      (48.2

Net gains (losses) on debt securities

   14.0      7.6      6.3   

General and administrative expenses

   265.2      291.4      (26.2

Net business profits before provision for general allowance for credit losses

   160.4      143.5      16.8   

Provision for general allowance for credit losses (1)

   2.0      (7.2   9.3   

Net business profits

   162.4      136.3      26.1   

Net non-recurring gains (losses)

   (86.5   (118.7   32.2   

Credit costs (2)

   (79.2   (96.5   17.3   

Losses on loan write-offs

   (48.0   (44.2   (3.8

Provision for specific allowance for credit losses

   (30.2   (47.9   17.7   

Other credit costs

   (1.0   (4.4   3.4   

Net gains (losses) on equity securities

   19.3      (5.2   24.6   

Gains on sales of equity securities

   26.6      15.4      11.2   

Losses on sales of equity securities

   (2.2   (0.4   (1.8

Losses on write-down of equity securities

   (5.0   (20.2   15.2   

Other non-recurring gains (losses)

   (26.6   (16.9   (9.7
                  

Ordinary profits

   75.9      17.5      58.3   
                  

Net extraordinary gains (losses)

   6.9      2.6      4.2   

Reversal of allowance for credit losses (3)

   —        —        —     

Reversal of reserve for contingent losses included in credit costs (4)

   3.5      —        3.5   

Income before income taxes

   82.8      20.2      62.5   

Income taxes-current

   6.9      0.7      6.2   

Income taxes-deferred

   22.9      5.4      17.5   

Total taxes

   29.9      6.2      23.7   
                  

Net income

   52.9      14.0      38.8   
                  

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)

   (73.7   (103.8   30.1   

 

3


Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

 

     (in billions of yen)  
     For the three months ended     Increase
(Decrease)
(A)-(B)
 
     June 30, 2009
(A)
    June 30, 2008
(B)
   

Gross profits

   82.1      82.1      0.0   

Gross profits before credit costs for trust accounts

   82.1      82.1      0.0   

Trust fees

   18.1      24.5      (6.3

Credit costs for trust accounts (1)

   —        —        —     

Net interest income

   40.3      40.7      (0.3

Net fees and commissions

   16.8      19.8      (2.9

Net trading profits

   4.6      (2.1   6.7   

Net other business profits

   2.0      (0.9   3.0   

Net gains (losses) on debt securities

   2.3      1.3      1.0   

General and administrative expenses

   50.6      51.8      (1.2

Net business profits before credit costs for trust accounts and
provision for general allowance for credit losses

   31.5      30.3      1.2   

Provision for general allowance for credit losses (2)

   —        —        —     

Net business profits

   31.5      30.3      1.2   

Net non-recurring gains (losses)

   (8.3   (8.9   0.6   

Credit costs (3)

   (1.2   (1.0   (0.2

Losses on loan write-offs

   (1.2   (0.9   (0.2

Provision for specific allowance for credit losses

   —        —        —     

Other credit costs

   —        (0.0   0.0   

Net gains (losses) on equity securities

   (0.7   (6.4   5.6   

Gains on sales of equity securities

   0.2      1.5      (1.2

Losses on sales of equity securities

   (0.2   (0.2   0.0   

Losses on write-down of equity securities

   (0.7   (7.6   6.8   

Other non-recurring gains (losses)

   (6.3   (1.4   (4.8
                  

Ordinary profits

   23.2      21.3      1.8   
                  

Net extraordinary gains (losses)

   1.2      0.3      0.9   

Reversal of allowance for credit losses (4)

   1.4      0.3      1.0   

Reversal of reserve for contingent losses included in credit costs (5)

   0.2      0.6      (0.4

Income before income taxes

   24.4      21.7      2.7   

Income taxes-current

   (0.6   (0.4   (0.2

Income taxes-deferred

   5.5      3.5      2.0   

Total taxes

   4.8      3.1      1.7   
                  

Net income

   19.6      18.6      0.9   
                  

(Reference)

      

Total credit costs (1)+(2)+(3)+(4)+(5)

   0.3      (0.0   0.4   

 

4


Mitsubishi UFJ Financial Group, Inc.

2. Non Performing Loans Based on the Financial Reconstruction Law

BTMU and MUTB Combined including Trust Accounts

 

     (in billions of yen)  
     As of
June 30, 2009
    As of
March 31, 2009
 

Bankrupt or De facto Bankrupt

   223.4      241.0   

Doubtful

   662.7      656.0   

Special Attention

   359.6      292.8   
            

Non Performing Loans

   1,245.7      1,189.9   
            

Total loans

   93,494.6      95,209.5   
            

Non Performing Loans / Total loans

   1.33   1.24

 

 

BTMU Non-consolidated

    
     (in billions of yen)  
     As of
June 30, 2009
    As of
March 31, 2009
 

Bankrupt or De facto Bankrupt

   207.2      221.7   

Doubtful

   620.0      614.1   

Special Attention

   343.9      278.1   
            

Non Performing Loans

   1,171.2      1,114.1   
            

Total loans

   82,982.0      84,337.2   
            

Non Performing Loans / Total loans

   1.41   1.32

MUTB Non-consolidated

    
     (in billions of yen)  
     As of
June 30, 2009
    As of
March 31, 2009
 

Bankrupt or De facto Bankrupt

   16.0      19.1   

Doubtful

   42.4      41.5   

Special Attention

   15.0      13.7   
            

Non Performing Loans

   73.5      74.5   
            

Total loans

   10,376.9      10,732.4   
            

Non Performing Loans / Total loans

   0.70   0.69
MUTB Non-consolidated: Trust Accounts     
     (in billions of yen)  
     As of
June 30, 2009
    As of
March 31, 2009
 

Bankrupt or De facto Bankrupt

   0.1      0.1   

Doubtful

   0.1      0.2   

Special Attention

   0.6      0.8   
            

Non Performing Loans

   0.9      1.3   
            

Total loans

   135.6      139.7   
            

Non Performing Loans / Total loans

   0.72   0.95

 

5


Mitsubishi UFJ Financial Group, Inc.

3. Fair Value Information on Securities

MUFG Consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary certificates of commodity investment trusts in “Monetary claims bought” and others in addition to “Securities”. Net unrealized gains (losses) are determined based on the fair values at the end of the fiscal period.

 

     (in billions of yen)  
     As of June 30, 2009     As of March 31, 2009  
     Amount on consolidated
balance sheet
   Net unrealized
gains (losses)
    Amount on consolidated
balance sheet
   Net unrealized
gains (losses)
 

Debt securities being held to maturity

   3,548.2    0.7      3,250.3    5.8   
     (in billions of yen)  
     As of June 30, 2009     As of March 31, 2009  
     Amount on consolidated
balance sheet
   Net unrealized
gains (losses)
    Amount on consolidated
balance sheet
   Net unrealized
gains (losses)
 

Other securities

   46,257.1    70.1      41,595.2    (917.7

Domestic equity securities

   4,351.6    500.7      3,732.5    (179.8

Domestic bonds

   29,306.3    34.1      25,000.4    (38.5

Other

   12,599.1    (464.8   12,862.2    (699.4

Foreign equity securities

   278.5    29.3      107.9    (20.6

Foreign bonds

   10,192.1    (54.4   10,644.6    (29.1

Other

   2,128.3    (439.7   2,109.6    (649.5

 

6


Mitsubishi UFJ Financial Group, Inc.

BTMU Non-consolidated

The tables include negotiable certificates of deposit in “Cash and due from banks”, beneficiary certificates of commodity investment trusts in “Monetary claims bought” and others in addition to “Securities”. Net unrealized gains (losses) are determined based on the fair values at the end of the fiscal period.

 

     (in billions of yen)  
     As of June 30, 2009     As of March 31, 2009  
     Amount on
balance sheet
   Net unrealized
gains (losses)
    Amount on
balance sheet
   Net unrealized
gains (losses)
 

Debt securities being held to maturity

   1,522.9    9.8      1,555.8    (6.4

Stocks of subsidiaries and affiliates

   194.4    (26.8   191.1    (43.0
     (in billions of yen)  
     As of June 30, 2009     As of March 31, 2009  
     Amount on
balance sheet
   Net unrealized
gains (losses)
    Amount on
balance sheet
   Net unrealized
gains (losses)
 

Other securities

   37,096.8    (17.8   33,142.1    (729.9

Domestic equity securities

   3,423.5    246.8      2,943.1    (294.9

Domestic bonds

   25,370.6    39.7      20,900.7    (26.1

Other

   8,302.6    (304.4   9,298.2    (408.8

Foreign equity securities

   118.1    16.5      83.8    (17.7

Foreign bonds

   6,671.1    (29.4   7,772.3    18.9   

Other

   1,513.3    (291.4   1,442.0    (410.0

 

7


Mitsubishi UFJ Financial Group, Inc.

MUTB Non-consolidated

The tables include beneficiary rights to the trust in “Monetary claims bought” in addition to “Securities”.

Net unrealized gains (losses) are determined based on the fair values at the end of the fiscal period.

 

     (in billions of yen)  
     As of June 30, 2009     As of March 31, 2009  
     Amount on
balance sheet
   Net unrealized
gains (losses)
    Amount on
balance sheet
   Net unrealized
gains (losses)
 

Debt securities being held to maturity

   1,387.6    20.7      1,160.6    18.0   

Stocks of subsidiaries and affiliates

   2.8    0.5      2.8    —     
     (in billions of yen)  
     As of June 30, 2009     As of March 31, 2009  
     Amount on
balance sheet
   Net unrealized
gains (losses)
    Amount on
balance sheet
   Net unrealized
gains (losses)
 

Other securities

   7,282.7    (59.3   6,822.5    (227.7

Domestic equity securities

   861.3    98.4      726.4    (37.0

Domestic bonds

   3,286.4    7.7      3,556.0    3.3   

Other

   3,134.9    (165.5   2,540.0    (194.0

Foreign equity securities

   29.5    (1.1   21.9    (1.1

Foreign bonds

   2,534.5    (35.3   2,003.1    (46.0

Other

   570.7    (129.0   514.9    (146.7

 

8


Mitsubishi UFJ Financial Group, Inc.

4. ROE

MUFG Consolidated

 

     (%)
     For the three months
ended

June 30, 2009
   For the three months
ended

June 30, 2008

ROE *

   4.12    2.94

Note:

* ROE is computed as follows:

 

Net income × 4 - Equivalent of annual dividends on nonconvertible preferred stocks   × 100

{(Total shareholders’ equity at the beginning of the period - Number of nonconvertible preferred stocks at the beginning of the period × Issue price + Foreign currency translation adjustments at the beginning of the period) + (Total shareholders’ equity at the end of the period - Number of nonconvertible preferred stocks at the end of the period × Issue price + Foreign currency translation adjustments at the end of the period)} / 2

 

5. Average Interest Rate Spread

BTMU and MUTB Combined

(Domestic business segment)

 

      (percentage per annum)
     For the three months
ended

June 30, 2009
   For the three months
ended

June 30, 2008

Average interest rate on loans and bills discounted

   1.59    1.77

Average interest rate on deposits and NCD

   0.21    0.32

Interest rate spread

   1.37    1.45

6. Loans and Deposits

 

BTMU and MUTB Combined

     
     (in billions of yen)
     As of
June 30, 2009
   As of
March 31, 2009

Deposits (ending balance)

   114,762.4    113,175.5

Deposits (average balance)

   113,665.8    110,778.1

Loans (ending balance)

   82,815.4    84,258.7

Loans (average balance)

   83,800.8    81,196.5
     (in billions of yen)
     As of
June 30, 2009
   As of
March 31, 2009

Domestic Deposits (ending balance) *

   103,394.1    104,093.3

Individuals

   63,600.8    62,881.6

Note:

* Amounts do not include negotiable certificates of deposit and JOM accounts.

 

9


Mitsubishi UFJ Financial Group, Inc.

7. Statements of Trust Assets and Liabilities

MUTB Non-consolidated

Including trust assets under service-shared co-trusteeship

 

(in billions of yen)    As of
June 30, 2009
   As of
March 31, 2009

Assets:

     

Loans and bills discounted

   187.0    199.7

Securities

   47,593.7    45,726.8

Beneficiary rights to the trust

   27,321.8    27,592.8

Securities held in custody accounts

   1,041.1    1,112.3

Monetary claims

   10,730.0    11,275.4

Tangible fixed assets

   9,187.3    9,179.8

Intangible fixed assets

   134.6    134.7

Other claims

   1,409.6    1,703.3

Call loans

   1,183.3    1,268.8

Due from banking account

   1,693.0    1,794.8

Cash and due from banks

   1,901.1    1,883.7
         

Total

   102,383.0    101,872.6
         

Liabilities:

     

Money trusts

   17,197.7    16,421.0

Pension trusts

   11,775.0    12,053.4

Property formation benefit trusts

   12.8    12.6

Loan trusts

   105.1    123.4

Investment trusts

   25,647.0    25,761.5

Money entrusted other than money trusts

   2,169.8    2,196.5

Securities trusts

   1,154.9    1,221.5

Monetary claim trusts

   11,117.1    11,733.6

Equipment trusts

   35.8    37.3

Land and fixtures trusts

   94.9    95.2

Composite trusts

   33,072.5    32,216.2
         

Total

   102,383.0    101,872.6
         

 

Note:    The table shown above includes master trust assets under the service-shared co-trusteeship between MUTB and The Master Trust Bank of Japan, Ltd.

 

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Mitsubishi UFJ Financial Group, Inc.

(Reference)

Exposure to “Securitized Products and Related Investments”

Our exposure to securitized products and related investments as of June 30, 2009 is outlined below. (Figures are on a managerial basis and rounded off.)

[Balance, net unrealized gains (losses), realized losses]

 

   

The balance as of the end of June 2009 decreased to ¥2.19 trillion in total, a decrease of ¥0.11 trillion compared with the balance as of the end of March 2009, mainly due to sales of securitized products, which have risk of being downgraded or deteriorated, and redemptions.

 

   

Net unrealized losses were ¥291 billion, improved by ¥93 billion compared with those at the end of March 2009.

 

   

The effect on the P/L for the three months ended June 30, 2009 was a loss of ¥6 billion, due to losses on the sales of securitized products as described above.

 

          (¥bn)  
                                of which securities being
held to maturity2
 
          Balance1    Change from
end of March 2009
    Net unrealized
gains (losses)
    Change from
end of March 2009
   Balance    Net unrealized
gains (losses)
 

1

   RMBS    148    (49   (27   19    0    0   

2

  

Sub-prime RMBS

   44    (7   (5   4    0    0   

3

   CMBS    26    (1   (2   0    0    0   

4

   CLOs    1,667    (28   (235   51    1,309    (181

5

   Other securitized products (card, etc.)    330    (23   (24   22    29    (2

6

   CDOs    15    (5   (3   0    4    (2

7

  

Sub-prime ABS CDOs

   0    0      0      0    0    0   

8

   SIV investments    0    0      0      0    0    0   
                                    

9

   Total    2,187    (106   (291   93    1,342    (184
                                    

 

1. Balance is the amount after impairment and before deducting net unrealized losses.

The above table does not include mortgage-backed securities arranged and guaranteed by U.S. government sponsored enterprises, etc., Japanese RMBS such as Japanese Housing Finance Agency securities, and products held by funds such as investment trusts. These are also applicable to the tables in this document.

2. Following the publication of “Tentaive Solution on Reclassification of Debt Securities” (Practical Issue Task Force No. 26, The Accounting Standards Board of Japan, December 5, 2008), some of our securitized products were reclassified into “securities being held to maturity” from “securities available-for-sale” at and after the end of January 2009. The balance and net unrealized gains (losses) of the securities being held to maturity in the above table are based on book value before reclassification.

[Distribution by rating]

 

   

AAA-rated products account for 76% of our investments in securitized products.

 

          (¥bn)  
          AAA     AA     A     BBB     BB or
Lower
    Unrated     Total  

10

   RMBS    73      28      25      9      13      0      148   

11

  

Sub-prime RMBS

   35      8      0      1      0      0      44   

12

   CMBS    14      7      4      1      0      0      26   

13

   CLOs    1,340      109      48      88      82      1      1,667   

14

   Other securitized products (card, etc.)    232      41      24      28      2      2      330   

15

   CDOs    7      2      1      2      3      0      15   

16

  

Sub-prime ABS CDOs

   0      0      0      0      0      0      0   

17

   SIV investments    0      0      0      0      0      0      0   
                                             

18

   Total    1,667      187      102      128      100      3      2,187   
                                             

19

   Percentage of total    76   9   5   6   5   0   100

20

   Percentage of total (End of March 2009)    79   7   5   6   4   0   100

 

11


Mitsubishi UFJ Financial Group, Inc.

[Credit exposure related to leveraged loan]

 

   

We are not engaged in origination or distribution of securitized products of leveraged loans, and therefore, there is no balance of leveraged loans for securitization.

 

   

The following table shows the balances of LBO loans as of the end of June 2009.

 

         (¥bn)  
         Americas    Europe    Asia    Japan    Total    Change from
end of March 2009
 

1

  LBO Loan3 (Balance on a commitment basis)    62    150    45    290    548    (9
2  

Balance on a booking basis

   42    133    41    262    478    3   

3. Includes balance after refinancing. (Figures are rounded off.)

[Special Purpose Entities (SPEs)]

 

   

We are engaged in sponsoring ABCP issuance for securitizing our clients’ assets.

 

   

The balance of assets purchased by ABCP conduits (special purpose companies for issuing ABCP) as of the end of June 2009 was ¥3.75 trillion (¥1.19 trillion overseas).

 

   

The purchased assets are mainly receivables and they do not include residential mortgages.

[Monoline insurer related]

 

   

There is no credit outstanding and credit derivative transactions with monoline insurers.

<Terminology>

 

RMBS    :    Asset-backed securities collateralized by residential mortgages
CMBS    :    Asset-backed securities collateralized by commercial mortgages
CLOs    :    Collateralized debt obligations backed by whole commercial loans, revolving credit facilities, or letters of credit
CDOs    :    Structured credit securities backed by a pool of securities, loans, or credit default swaps
ABS CDOs    :    Collateralized debt obligations backed by asset backed securities
SIVs    :    Investment companies established mainly for gaining profit margin by raising funds through subordinated notes and short-term CPs, etc. and investing in relatively long-term securitized products and bonds, etc.
LBO Loans    :    Loans collateralized by assets and/or future cash flows of an acquired company
ABCP    :    Commercial papers issued by a Special Purpose Company (SPC) collateralized by receivables

 

12