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 Yūefujei Finansharu Gurūpu) is a Japanese bank holding and financial services company headquartered in Chiyoda, Tokyo, Japan.[4]

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 KK
TYO: 8306
TOPIX Core 30 Component
NYSE: MUFG
IndustryBanking, Financial services
PredecessorMitsubishi Tokyo Financial Group, Inc.
UFJ Holdings, Inc.
FoundedOctober 1, 2005 (2005-10-01) (by merger)
Headquarters
Yurakucho, Chiyoda, Tokyo
,
Japan
Area served
Worldwide
Key people
  • Nobuyuki Hirano (chairman)
  • Kanetsugu Mike (president​ and group CEO)
ServicesPersonal Banking
Corporate banking
Investment banking
Investment management
Wealth Management
Mortgage
Credit cards
Revenue JPY 4.495 trillion (2013)[1]
JPY 1.069 trillion (2013)[1]
Total assets US$ 3.069 trillion (2018)[2]
Total equity JPY 10.608 trillion (2013)[1]
Number of employees
147,000 (2017)[3]
SubsidiariesMorgan Stanley
MUFG Bank(24%)
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Securities
Mitsubishi UFJ NICOS
Mitsubishi UFJ Lease & Finance
MUFG Union Bank
Websitewww.mufg.jp

MUFG holds assets of around US$2,459 billion as of 2016 and is one of the main companies of the Mitsubishi Group.[5] It is Japan's largest financial group and the world's second largest bank holding company holding around US$1.8 trillion (JPY 148 trillion) in deposits as of March 2011.[1] The letters MUFG come from Mitsubishi and United Financial of Japan, the name of an acquired company.

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.[6]

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. During the Second World War The Bank of Tokyo had controversially been the banker to the Imperial Japanese Army as it expanded through conquest throughout Asia. Its monopolistic position, dominating all Yen forex trades, was eroded over time and eventually ended during the 1990s. However, 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, a part of the Toyota Motor Corporation. Toyota's chairman sat on the board of the UFJ which became one of the world's largest money losing corporations. UFJ was accused by the government of corruption and making bad loans to the yakuza crime syndicates. The UFJ is one of the largest shareholders of Toyota.

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.[7]

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.[8]

In 2008 at the 2008 ALB Japan Law Awards,[9] 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.[10]

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, UFJ; Kabushiki kaisha yūefujei hōrudingusu) was the weakest among the three major banking groups in Japan. "UFJ" is 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, the Australian rare earths developer.[11]

Group companies
  • Commercial bank
    • MUFG Bank, Ltd.
    • Union Bank ( All shares held by Union Bank / Mitsubishi UFJ Bank subsidiary Union Bankal)
    • Bank of Ayudhya ... A bank in Thailand and a wholly owned subsidiary of the Bank. The bank's local branch office is integrated and functions as a Thai corporation.
    • Security Bank ... A semi-major bank in the Philippines. Currently an equity method affiliate.
    • Dai Shin Bank ...a medium-sized bank in Hong Kong.
    • Vietinbank ... Vietnam major banks.
    • Bank Danamon ... A semi-major bank in Indonesia. Consolidated our local branch offices into a consolidated subsidiary.
    • Jibun Bank Corporation ... an online bank.
    • The Chukyo Bank, Ltd. ( Equity-method affiliate of Mitsubishi UFJ Bank. Former Tokai second regional bank in Aichi Prefecture. Tokyo Stock Exchange, part of Nagoya Stock Exchange )

In addition, although not a group, there are banks that are the largest shareholders of Mitsubishi UFJ Bank. Mitsubishi UFJ Bank #Refer to a close regional bank

  • Trust bank
  • Microfinance
  • Securities
    • Mitsubishi UFJ Securities Holdings (MUSHD, the first Mitsubishi UFJ Securities converted into an intermediate holding company )
      • Mitsubishi UFJ Securities (MUMSS. A retail joint venture between MUSHD and Morgan Stanley. Renamed from the second-generation Mitsubishi UFJ Securities, which was the recipient of the first Mitsubishi UFJ Securities (currently Mitsubishi UFJ Securities HD))
      • Morgan Stanley MUFG Securities Co., Ltd. (MSMS, a joint venture between MUFG and Morgan Stanley, a wholesale specialized securities)
      • Mitsubishi UFJ Morgan Stanley PB Securities Co., Ltd.( private banking brokerage business entities. Old Yamaichi Securities → Merrill Lynch Japan Securities tradition flow of (Retail Division))
      • kabu.com Securities Co., Ltd. (Internet-only securities. A subsidiary of MUSHD, BTMU is the second largest shareholder. Formerly BTMU was the largest shareholder with over 40%, and MUSHD was the second largest shareholder with around 10%. Capital change was made in April 2014  Tokyo Stock Exchange)
    • Morgan Stanley (US financial giant listed on the New York Stock Exchange  . Since July 2011, it has been an equity method affiliate  .)
  • Lease
    • Mitsubishi UFJ Lease & Finance Company Limited ( Equity Method Affiliated Company of Mitsubishi UFJ Financial Group, Tokyo Stock Exchange, First Name Part)
    • 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 ( consolidated subsidiary of Mitsubishi Research Institute, affiliated company accounted for by the equity method)  All shares held by 
    • 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
  • 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, Tokyo Stock Exchange First Section)
  • Cards and credit sales
    • Mitsubishi UFJ NICOS
    • RYOSHIN DCCARD CO.,LTD.
    • JACCS CO., LTD. (Affiliated company accounted for by the equity method, First Section of the Tokyo Stock Exchange, Bill )
    • JALCARD,INC.
    • Tokyo Credit Services,Ltd. (Because of former Tokyo Bank affiliate, VJA member)
  • 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

Holdings
  • The Chukyo Bank, Ltd. (39.9%)
  • The Gifu Bank, Ltd. (21.3%)
  • The Taisho Bank, Ltd. (25.9%)
  • Central Leasing Co., Ltd. (14%)
  • The Master Trust Bank of Japan, Ltd. (46.5%)
  • Mobit Co., Ltd. (50%)
  • M&T Information Technology Co., Ltd. (50%)
  • Dah Sing Financial Holdings Limited (15.1%) (Hong Kong)
  • Morgan Stanley (22.4%) (United States) via MUFG Bank
  • Chong Hing Bank (9.66%) via MUFG Bank
  • Union Bank N.A. (100%) (USA) via MUFG Bank
  • Vietinbank (20%), with which the Group decided to establish a strategic partnership in December 2012[12]
  • 19 other companies.

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. "Mitsubishi UFJ Financial on the Forbes Global 2000 List". forbes.com. Archived from the original on February 1, 2018.
  3. "MUFG's drastic staff restructure set to cut 10,000 positions in 10 years".
  4. "About MUFG Archived February 10, 2010, at the Wayback Machine." Mitsubishi UFJ Financial Group. Retrieved on December 7, 2009.
  5. "MUFG; Company Overview – Mitsubishi UFJ Financial Group". www.mufg.jp. Archived from the original on February 10, 2010.
  6. "Mitsubishi UFJ Financial to buy CBA's asset management operations". Australian Financial Review. October 31, 2018.
  7. Fackler, Martin (August 2, 2004). "Banking Duel in Japan Signals End of Old Ways". The Wall Street Journal. Retrieved July 27, 2019.
  8. Press Release Archived September 25, 2008, at the Wayback Machine. Morgan Stanley (2008-09-22). Retrieved on 2013-08-23.
  9. "Asian Legal Business". www.legalbusinessonline.com.au.
  10. "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.
  11. "Mitsubishi UFJ buys 10% of Australia's Lynas – MarketWatch". marketwatch.com. 2011. Archived from the original on July 8, 2011. Retrieved July 19, 2011.
  12. "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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