Mitsubishi UFJ Financial Group Inc (MUFG) 2024 Q2 法說會逐字稿

Thank you for waiting. We now start the net conference on the financial results for the first half of fiscal year ending March 2024. I am [Nakao] from the IR Office, Financial Planning Division. I will serve as the MC today. Thank you for joining us out of your busy schedules.

謝謝您的等待。我們現在開始召開關於截至 2024 年 3 月的上半財年財務表現的網路會議。我是財務規劃部 IR 辦公室的 [Nakao]。今天我將擔任主持人。感謝您在百忙之中加入我們。

First, our Senior Managing Corporate Executive and Group CFO, Tetsuya Yonehana, will give a briefing on the financial highlights for about 10 minutes. And then we will take your questions. The total length of the conference is expected to be about 50 minutes.

首先，我們的高階管理公司執行長兼集團財務長 Tetsuya Yonehana 將簡要介紹約 10 分鐘的財務亮點。然後我們將回答您的問題。預計會議總時長約50分鐘。

Before we start the briefing, let me give you some reminders. In the briefing, we may talk about our future projections based on the current forecast. They are all accompanied by risks and uncertainties. Please be informed in advance that the actual results may differ from our projections.

在我們開始通報之前，讓我提醒大家一些。在簡報中，我們可能會根據目前的預測來談論我們對未來的預測。它們都伴隨著風險和不確定性。請提前告知，實際結果可能與我們的預測有所不同。

Now let's start the briefing. Over to you, Mr. Yonehana.

現在我們開始通報情況。交給你了，米花先生。

I am Yonehana. Thank you very much for joining us for this MUFG net conference. Please take a look at the material entitled Financial Highlights under Japanese GAAP for the First Half of Fiscal Year Ending March 31, 2024. I'll take you through the first half results and then we'll talk about shareholder returns. Please go to Page 7. I'll start from the income statement.

我是米花。非常感謝您參加我們這次 MUFG 網路會議。請查看題為《截至 2024 年 3 月 31 日的上半財年根據日本 GAAP 計算的財務摘要》的資料。我將帶您了解上半財年的業績，然後我們將討論股東回報。請翻到第 7 頁。我將從損益表開始。

MUFG first half results for fiscal 2023, as Line 17 in the left-hand table shows, profits attributable to owners of parent is JPY 927.2 billion, is an all-time high for half year results since the inception of MUFG. Achieving a full year target of JPY 1.3 trillion as well as our ROE target of 7.5% in the midterm management plan are well within our sight.

三菱日聯金融集團 2023 財年上半年業績，如左表第 17 行所示，歸屬於母公司所有者的利潤為 9,272 億日元，是三菱日聯金融集團成立以來半年業績的歷史新高。實現全年1.3兆日圓的目標以及中期管理計畫中7.5%的ROE目標是我們的願景。

Let me give you some breakdown. Line 1 gross profit is up JPY 163.9 billion year-on-year. Line 2 and below gives you the breakdown. In the first half, there are large swings in net interest income and net other operating profits. This is because in last fiscal year, JPY 490 billion in redemption proceeds of fixed income bear funds booked in net interest income in Global Markets Treasury operations was used to rebalance our portfolio, and recorded losses on the sale of foreign bonds booked in net other operating profit and losses. As a result, we have these movements between these accounting items.

讓我給你一些細分。 1號線毛利年增1639億日圓。第 2 行及以下內容為您提供了詳細資訊。上半年，淨利息收入和其他營業淨利潤波動較大。這是因為，上一財年，記入全球市場國庫業務淨利息收入的固定收益熊市基金贖回收益中的4,900 億日元用於重新平衡我們的投資組合，並記錄記入其他業務淨利息收入的外國債券出售損失。利潤和損失。因此，我們在這些會計項目之間存在這些變動。

Also, in this half year period, with the drop in profit attributed to the sale of Union Bank, it's difficult to see the real change in profits. Let me try to give you how it looks on a real basis after excluding these factors.

另外，在這半年期間，由於出售聯合銀行而導致利潤下降，很難看到利潤的真正變化。讓我嘗試向您展示排除這些因素後的真實情況。

Line 2, net interest income, with higher rates overseas and improvement in lending margins, pushed up deposit and loan income and is up by about JPY 100 billion. Line 3, fees and commissions, with increases in overseas loan-related fees and security primary revenue, it's up by about JPY 110 billion. Sales and trading profits included in Line 4 also increased by about JPY 40 billion. So our gross profits are making solid growth.

第二行，淨利息收入，隨著海外利率上升及貸款利潤率改善，推升存貸款收入，增加約1,000億日圓。第3行，費用和佣金，隨著海外貸款相關費用和擔保主要收入的增加，增加了約1100億日元。 4號線的銷售額和貿易利潤也增加了約400億日圓。所以我們的毛利正在穩定成長。

Next, Line 6, G&A expenses. With the impact of the sale of Union Bank, it's down by JPY 26.5 billion year-on-year. Line 21, expense ratio, in addition to expense controls owing to a large increase in gross profits, it's about 56.3%, down 5.1 percentage points year-on-year, demonstrating a major improvement.

接下來，第 6 行，G&A 費用。受出售聯合銀行的影響，年減265億日圓。第21行，費用率，加上毛利大幅成長帶來的費用控制，約56.3%，較去年同期下降5.1個百分點，有較大改善。

As a result, net operating profits in Line 7, more than offsetting the impact of the sale of Union Bank, is up JPY 190.5 billion at JPY 1,085.7 billion. It's a further improvement from an all-time high in the interim period last year.

因此，第 7 行的淨利潤增加了 1,905 億日元，達到 10,857 億日元，足以抵消出售聯合銀行的影響。較去年中期的歷史最高水準進一步改善。

Next, Line 8, total credit costs. Credit costs of JPY 181.2 billion were incurred. At the bank, it increased due to the absence of the reversal of allowance of last year. But with the absence of valuation losses of JPY 231.9 billion on loans held by Union Bank recorded last year, credit costs are down by JPY 62.6 billion year-on-year.

接下來，第 8 行，總信貸成本。產生了 1,812 億日圓的信貸成本。在銀行，由於沒有沖銷去年的準備金，因此增加了。但由於聯合銀行持有的貸款去年記錄了2,319億日圓的估值損失，因此信貸成本較去年同期下降了626億日圓。

Line 12, equity in earnings of equity method investees. With the change of the closing date in the equity method accounting for Morgan Stanley, we have booked not the usual 6 months but rather 9 months of profits. And as a result, it's up by JPY 66 billion year-on-year.

第 12 行，權益法投資對象收益中的權益。隨著摩根士丹利權益法會計截止日期的變化，我們登記的利潤不是通常的 6 個月，而是 9 個月。結果，年增了 660 億日圓。

Lastly, Line 13, other nonrecurring gains or losses. Similar to total credit costs, with the absence of valuation losses of bonds held by Union Bank, losses were lower by JPY 315.3 billion year-on-year. As a result, Line 17, profits attributable to owners of parent is up 696.1 billion year-on-year at JPY 927.2 billion. Even when compared against last year's figure, after adding back the valuation losses of Union Bank, which were reversed at the end of last fiscal year, it is higher by JPY 248 billion.

最後，第 13 行，其他非經常性損益。與總信貸成本類似，由於聯合銀行持有的債券不存在估值損失，損失比去年同期減少了3,153億日圓。結果，第17行歸屬於母公司所有者的利潤年增6,961億日圓至9,272億日圓。即使與去年的數字相比，加上上財年末扭轉的聯合銀行估值損失，也增加了2,480億日圓。

The ROE in the first half in Line 19 is at 10.65%. After excluding the impact of the change of the closing date in the equity method accounting for Morgan Stanley, it is 9.7%.

19號線上半年ROE為10.65%。剔除摩根士丹利權益法核算截止日變更的影響後，為9.7%。

Please go to Page 8. The graph in the lower left shows the breakdown of changes in net operating profits by segment. In the customer segments, GCB is down due to a drop in profits of about JPY 30 billion due to the sale of Union Bank. But other business group steadily built up net operating profits with increases in deposit and loan income and in fees and commissions. And as for the whole of customer segments, profits recorded a large growth of JPY 216.9 billion.

請參閱第8頁。左下圖顯示了按部門劃分的營業淨利潤變化明細。在客戶領域，GCB因出售聯合銀行而導致利潤下降約300億日元，因此下滑。但其他業務部門營業淨利穩定成長，存貸款收入、手續費及佣金收入增加。就整個客戶群而言，利潤大幅成長，達到2,169億日圓。

In the Global Markets segment, the treasury business in the rising interest rate environment conducted flexible position management and maintained a high level of profits of the previous year. And with the increase in profits in sales and trading business, the segment as a whole posted increases in profits.

全球市場板塊，資金業務在利率上升的環境下，進行靈活的部位管理，維持上年較高的利潤水準。隨著銷售和貿易業務利潤的增加，該板塊整體利潤也有所增長。

Please turn to Page 9. Right side shows the changes in net income by business segment. While JCIB posted a decrease due to a rebound in credit costs from the previous year, other business groups posted an increase, thanks to higher net operating profits, resulting in an overall increase of JPY 53.1 billion in net income for the customer segments.

請翻至第9頁。右側為各業務板塊淨利變動狀況。儘管JCIB因信貸成本較上年反彈而有所下降，但其他業務集團因淨利潤增加而有所增長，導致客戶群的淨利潤總體增加了531億日元。

Please skip to Page 11, which shows the balance sheet summary. In the left table, Line 2 and below, loans increased by JPY 4.4 trillion from March 2023, mainly due to an increase in Line 6, overseas loans, which was mostly due to FX impact or weaken.

請跳至第 11 頁，其中顯示資產負債表摘要。左表中，第 2 行及以下貸款較 2023 年 3 月增加了 4.4 兆日圓，主要是由於第 6 行海外貸款增加，而這主要是由於匯率影響或疲軟。

Line 12 and below. Deposits increased by JPY 4.2 trillion from March 2023, of which overseas deposits increased by JPY 3.8 trillion, which again is almost flat, excluding the FX impact.

12號線及以下。自 2023 年 3 月起，存款增加了 4.2 兆日元，其中海外存款增加了 3.8 兆日元，排除匯率影響，再次幾乎持平。

Page 12 shows the status of domestic loans. The lower right graph shows the trend of the domestic corporate lending spreads. The red line, lending spreads on large corporates, continue to improve. The orange line, lending spreads on SMEs, also shows a gradual improvement.

第12頁顯示了國內貸款的狀況。右下圖顯示了國內企業貸款利差的走勢。紅線，即大型企業的貸款利差持續改善。橙色線是中小企業的貸款利差，也顯示逐步改善。

Page 13 shows the status of overseas loans. The bottom line in the upper right graph shows the yield difference between lending rate and deposit rate on a nonconsolidated basis, which has been increasing steadily since FY '22, although it has recently declined slightly due to higher deposit rates.

第13頁顯示了海外貸款的狀況。右上圖中的底線顯示了非合併基礎上貸款利率和存款利率之間的收益率差，該收益率差自 22 財年以來一直在穩步增加，儘管最近由於存款利率上升而略有下降。

The lower right graph shows the trend of overseas lending spreads. Lending spreads continue to improve steadily as a result of our efforts to improve profitability.

右下圖顯示了海外貸款利差的走勢。由於我們努力提高獲利能力，貸款利差持續穩定改善。

Please turn to Page 14, which shows the status of our loan assets. NPL balance in the left bar chart decreased slightly from the end of FY '22. And NPL ratio, shown by the line chart, remains at a low level.

請翻至第14頁，其中顯示了我們的貸款資產狀況。左側長條圖中的不良貸款餘額較 22 財年末略有下降。從折線圖來看，不良貸款率仍處於較低水準。

Please turn to Page 15, which shows the status of securities, including equity and government bonds. The upper left table shows unrealized gains and losses. Although unrealized losses on bonds have increased since the end of FY '22 due to rising interest rates, unrealized gains on domestic equity securities increased, thanks to rising stock prices. And overall unrealized gains on available-for-sale securities was JPY 1.4 trillion, which was in line with the end of FY '22.

請翻至第15頁，其中顯示了證券的狀況，包括股票和政府債券。左上表顯示未實現的損益。儘管自 22 財年末以來，由於利率上升，債券未實現損失有所增加，但由於股價上漲，國內股本證券的未實現收益有所增加。可供出售證券的未實現收益總體為 1.4 兆日元，與 22 財年末的情況一致。

Line 8. Unrealized losses on foreign bonds at the end of September was about JPY 1.7 trillion. But as shown at the bottom of the upper right graph, unrealized losses in real terms, taking into account unrealized gains from hedging positions, was approximately JPY 0.8 trillion. We are firmly controlling unrealized gains and losses even as overseas interest rates rise and remain high.

第 8 行：9 月底外國債券未實現損失約 1.7 兆日圓。但如右上圖底部所示，考慮到對沖頭寸的未實現收益，實際未實現損失約為 0.8 兆日圓。即使海外利率上升並居高不下，我們仍牢牢控制未實現損益。

Page 16 shows our capital adequacy. CET1 ratio on the finalized Basel III reforms basis, excluding net unrealized gains, is 10.5%, which is above the target range of MTBP and continues to be adequate from the soundness perspective.

第 16 頁顯示了我們的資本適足率。在最終確定的巴塞爾協議 III 改革基礎上（不包括未實現淨收益），CET1 比率為 10.5%，高於 MTBP 的目標範圍，並且從穩健性的角度來看仍然足夠。

Lastly, let me explain our shareholder return policy. Please return to Page 3. Dividend per common stock remains unchanged from the initial forecast of JPY 41 per share. In addition, based on the actual CET1 ratio as of the end of September and the outlook for the end of FY '23, we resolved today a share repurchase of up to JPY 400 billion in total, the largest ever for a half year period, in order to improve our capital efficiency.

最後，讓我解釋一下我們的股東回報政策。請返回第3頁。每股普通股股利與最初預測的每股41日圓維持不變。此外，根據截至9月底的實際CET1比率和23財年末的展望，我們今天決定進行總額高達4000億日圓的股票回購，這是半年來最大的一次，以提高我們的資本效率。

That concludes my explanation.

我的解釋到此結束。

Thank you very much. Now we will take your questions.

非常感謝。現在我們將回答您的問題。

The first question is from Mr. Takamiya.

第一個問題是高宮先生提出的。

I am Takamiya from Nomura Securities. I have 2 questions. It's about share buyback and the reason you kept the full year guidance unchanged. On the share buyback of JPY 400 billion, the largest for an interim period, what is your thinking behind the decision? Any implications on your approach to your capital policy going forward? Can you talk about the background of your decision of JPY 400 billion of your share buyback? That's my first question.

我是野村證券的高宮。我有 2 個問題。這是關於股票回購以及您保持全年指引不變的原因。對於中期規模最大的4000億日圓的股票回購，您的決定背後的想法是什麼？對您未來的資本政策有何影響？能談談您決定回購4000億日圓股票的背景嗎？這是我的第一個問題。

The second question is why you kept your full year guidance unchanged. Your core business performance and your progress against the plan seem very solid, but you still kept your target unchanged. Can you talk about the background behind the decision?

第二個問題是為什麼您保持全年指導不變。您的核心業務績效和計劃進度似乎非常穩健，但您仍然保持目標不變。能談談這個決定背後的背景嗎？

Mr. Takamiya, thank you for the question. Your first question, the background of our decision of JPY 400 billion of share buyback. As I briefly discussed in my presentation, one factor was our capital ratio at the end of September, the level of the CET1 capital and the outlook for the year-end in March. Based on these considerations, we decided on the size of JPY 400 billion.

高宮先生，謝謝您的提問。你的第一個問題，我們決定回購4000億日圓股票的背景。正如我在演講中簡要討論的那樣，一個因素是我們 9 月底的資本比率、CET1 資本水平以及 3 月份的年末展望。基於這些考慮，我們決定了4000億日圓的規模。

Let me go into some specifics. In May, when we announced our results for fiscal 2022, CET1 ratio was 10.3% at March end. It was higher than our target range. But we decided not to do a share repurchase. At that time, right before that timing in March, there was the Silicon Valley Bank failure and bailout of Credit Suisse. And in April, there was the First Republic case. So we wanted to have more buffer in our capital, and that is why we decided not to do a share buyback. That was the biggest reason for not doing a share buyback in May.

讓我談談一些具體細節。 5月份，當我們公佈2022財年業績時，3月底的CET1比率為10.3%。它高於我們的目標範圍。但我們決定不進行股票回購。當時，就在三月的那個時間點之前，矽谷銀行倒閉了，瑞士信貸銀行也得到了救助。四月，發生了第一共和國案。因此，我們希望擁有更多的資本緩衝，這就是我們決定不進行股票回購的原因。這是五月沒有進行股票回購的最大原因。

Thereafter, the events at these banks in the U.S. and Europe were found to be isolated cases and the spillover effects on regulation and the economy were apparently limited. So that is the biggest difference between our decision back in May and now. Against this backdrop, given the CET1 ratio at the end of September, and our projections for March, taking these into consideration in view of the headroom in our capital, we decided on the amount of JPY 400 billion.

此後，美國和歐洲這些銀行發生的事件被認為是孤立事件，對監管和經濟的外溢效應顯然有限。所以這是我們五月的決定和現在最大的差別。在此背景下，考慮到9月底的CET1比率以及我們對3月份的預測，考慮到我們的資本空間，我們決定了4000億日元的金額。

Now you asked us about its implications for the future. We will continue with our target range management. As to what will be the target range, we will be revisiting that in our next midterm management plan. But we will be managing our capital within a certain range, and that policy will be continued. And when we do so, obviously, with respect to capital, we will think about investment for organic and inorganic growth, as well as shareholder returns.

現在您問我們它對未來的影響。我們將繼續我們的目標範圍管理。至於目標範圍是多少，我們將在下一個中期管理計畫中重新討論。但我們會把資本控制在一定的範圍內，這個政策會持續下去。顯然，當我們這樣做時，在資本方面，我們會考慮有機和無機成長的投資以及股東回報。

And in terms of surplus capital, we will look into share buybacks. We want to have a well-balanced allocation, and that position remains the same. If we are not going to use our capital for strategic investments or organic growth, then we will use it for shareholder returns. That is our thinking.

在剩餘資本方面，我們將考慮股票回購。我們希望有一個均衡的分配，這立場保持不變。如果我們不打算將資本用於策略性投資或有機成長，那麼我們會將其用於股東回報。這就是我們的想法。

In the second half, including how we use our assets, taking into account our projection of our capital ratio at March end, we have decided on the amount of JPY 400 billion.

下半年，包括我們的資產如何使用，考慮到我們對3月底的資本比率的預測，我們決定了4000億日元的金額。

Your second question, the background of our decision to keep our guidance unchanged. We did consider what to do with the full year guidance. As you said, for the first half, this year being the final year of the medium-term management plan, achieving the ROE target of 7.5% was a must. So we already had a challenging plan internally to start with, as well as challenging financial targets.

你的第二個問題，我們決定維持指導不變的背景。我們確實考慮過如何處理全年指導。正如你所說，上半年，今年是中期經營計畫的最後一年，實現7.5%的ROE目標是必須的。因此，我們內部已經制定了一個具有挑戰性的計劃，以及具有挑戰性的財務目標。

Even setting aside the foreign exchange impact, progress in the first half, especially in the customer segments, was in excess of 110% against the plan. So it is very strong.

即使撇開匯率影響，上半年的進展，特別是在客戶群方面，也比計劃完成了 110% 以上。所以它的強度非常大。

Now on net operating profits, based on the first half actual results and the outlook for the second half, we took a fresh look at how it will be this fiscal year. In Global Markets in Treasury business, we frontloaded profits in the first half. And in the second half, in line with the initial plan, we will generate some losses mainly from foreign bonds. So a level in line with the initial plan is being expected.

現在說到淨利潤，根據上半年的實際業績和下半年的展望，我們重新審視了本財年的情況。全球市場資金業務上半年獲利。而下半年，按照最初的計劃，我們會產生一些虧損，主要來自於外國債券。因此，預計水平將符合最初的計劃。

In Customer segments, in the second half, we expect that a high level of profits can be achieved as before. And overall, excluding the impact from foreign exchange fluctuations, our assessment is that the initial challenging plan can be achieved.

在客戶細分領域，我們預計下半年仍能達到高水準的利潤。整體而言，排除匯率波動的影響，我們的評估是可以實現最初的挑戰性計劃。

And in our guidance of JPY 1,300 billion, the exchange rate assumption was lower JPY 120 level. Our projection of exchange rate at the fiscal year-end was revised, and it's now upper JPY 130 level. Even after excluding the impact from foreign exchange rate fluctuations, it is in line with the initial plan, and the exchange rate assumption was revised from lower JPY 120 level to upper JPY 130 level. With the weaker yen impact, we often talk about this, that if the yen weakens by JPY 1, the bottom line impact will be about JPY 7.5 billion. So that will be a positive of about JPY 100 billion plus.

在我們 13,000 億日圓的指引中，匯率假設低於 120 日圓水準。我們對財年末的匯率預測進行了修正，目前為 130 日圓的上限。即使排除匯率波動的影響，也符合最初的計劃，匯率假設由120日圓下限調整為130日圓上限。對於日圓走弱的影響，我們常談論的是，如果日圓貶值1日圓，那麼對底線的影響將是75億日圓左右。因此，這將帶來約 1000 億日元以上的正面影響。

So our base case is now JPY 1-trillion-and-lower-400-billion level can be projected. On net operating profit in that case, because of the exchange rate impact, JPY 1-trillion-mid-600-billion level is a level that we are tentatively assuming. As we manage our business in the second half in terms of P&L with a weaker yen, positive impact will be felt. But the flip side of that is the U.S. interest rates staying high and the yen is weaker against that background. And that impact is being felt in the P&L.

因此，我們的基本情境現在可以預測為 1 兆日圓或 4,000 億日圓以下的水準。就這種情況下的淨利潤而言，由於匯率的影響，1萬億日元至6000億日元左右的水平是我們暫時假設的水平。由於我們下半年的業務是在日圓走弱的情況下以損益表來管理的，因此將會感受到正面的影響。但另一方面是美國利率居高不下，日圓在此背景下走軟。這種影響在損益表中得到體現。

On the other hand, when you think about the balance sheet, with U.S. interest rates staying high, more than initially expected, profitability of the balance sheet has to be considered. We want to make our balance sheet to be more profitable over time. So we feel that we need to look at both the P&L and the balance sheet.

另一方面，當你考慮資產負債表時，由於美國利率維持在高位，超出最初的預期，必須考慮資產負債表的獲利能力。我們希望隨著時間的推移，我們的資產負債表會變得更加有利可圖。所以我們認為我們需要同時關注損益表和資產負債表。

So the upside coming from the weaker yen is used partially for loss cutting of foreign bonds, to improve the profitability of our balance sheet. That is also being assumed in the second half.

因此，日圓疲軟帶來的上行空間部分用於減少外國債券的虧損，以提高我們資產負債表的獲利能力。下半年也是如此。

With that in mind and also what is going to be the exchange rate at the fiscal year-end, this is a variable factor. When you take all of these into consideration, for the first half, we decided to keep our financial targets the same and the guidance unchanged. That was the decision taken.

考慮到這一點以及財年末的匯率，這是一個可變因素。考慮到所有這些，我們決定在上半年保持財務目標不變，指導不變。這就是我們所做的決定。

Let me supplement. The ROE target of 7.5%, this is something that we want to achieve by all means. Depending on the level of the exchange rate at the fiscal year-end, the required net income level will change. If yen continues to weaken, then a net income of slightly higher than JPY 1.3 trillion will be required.

我來補充一下。 ROE目標是7.5%，這是我們無論如何都要達到的目標。根據財年末的匯率水平，所需的淨收入水準將會有所變動。如果日圓繼續走弱，則需要略高於1.3兆日圓的淨利。

With that assumption in mind, we decided to keep JPY 1.3 trillion unchanged, assuming that we will overachieve it to make sure that the ROE of 7.5% to be achieved. This is our thinking, and that is how we arrived at our decision of not changing our guidance this time around.

考慮到這一假設，我們決定保持 1.3 兆日圓不變，假設我們將超額實現這一目標，以確保實現 7.5% 的 ROE。這是我們的想法，也是我們做出這次不改變指導方針的決定的原因。

Next, Mr. Nakamura, please.

下面有請中村先生。

I am Nakamura of BofA Securities. I have 2 questions. First, you conservatively kept your guidance unchanged. So I want to ask you about your dividend policy when net income at the end of the fiscal year rises to JPY 1.4 trillion. I understand that you adjusted the 3-month add-on earnings of Morgan Stanley with the change in the equity method accounting date, but this time yen weakened against the dollar considerably, which increased the amount.

我是美國銀行證券的中村。我有 2 個問題。首先，您保守地保持指導不變。所以我想問一下，當財年末淨利達到1.4兆日圓時，你們的股利政策是怎麼樣的？據我了解，你們因權益法會計日期的變化而調整了摩根士丹利的3個月附加收益，但這次日圓兌美元大幅貶值，導致金額增加。

So do you also look at the FX conservatively and decide on the dividend payout ratio? Or is it just the Morgan Stanley add-on portion that is deducted? What is your approach to the dividend payout policy if there is an upside? That is my first question.

那麼您是否也會保守地看待外匯並決定股利支付率？還是只是扣除摩根士丹利附加部分？如果有好處，您對股利支付政策有何看法？這是我的第一個問題。

My second question is on Page 6, where you show the next MTBP at a glance. It appears that under management policy, growth investment and strengthening corporate infrastructure seem to be emphasized in bold letters. It also says 3 years for pursuing further growth. As PBR approaches 0.9x, are you fine-tuning your thinking such as increasing the number of growth investment deals that can be considered compared to share buybacks?

我的第二個問題在第 6 頁，您可以一目了然地顯示下一個 MTBP。看來，在管理政策下，成長投資和強化企業基礎設施似乎以粗體字強調。它還說需要3年時間來追求進一步的成長。隨著本益比接近 0.9 倍，您是否正在調整自己的想法，例如增加可考慮與股票回購相比的成長投資交易的數量？

Thank you for your question, Mr. Nakamura. To your first question on dividend for FY '23, we left the performance target unchanged this time, as I mentioned earlier, considering the management of the second half and the FX fluctuation at the end of the fiscal year. And also kept the year-end dividend forecast unchanged.

謝謝中村先生的提問。關於你關於23財年股息的第一個問題，正如我之前提到的，考慮到下半年的管理和財年末的外匯波動，我們這次保持業績目標不變。並維持年終股利預測不變。

As I mentioned earlier, in order to achieve the ROE target of 7.5%, the required profit will change somewhat depending on the FX level. So we will consider the dividend level while also taking into account the full year profit forecast.

正如我之前提到的，為了實現7.5%的ROE目標，所需的利潤將根據外匯水平而有所變化。所以我們會在考慮股利水準的同時，也會考慮全年獲利預測。

Since the beginning of the year, we have talked about excluding the 3-month add-on portion of Morgan Stanley, as you rightly mentioned. We will examine how the impact of the weak yen should be taken into account as part of our effort to increase dividend progressively every year. In any case, we will consider that as well. So that is the first point.

正如您所提到的，自今年年初以來，我們一直在討論排除摩根士丹利的 3 個月附加部分。我們將研究如何考慮日圓疲軟的影響，作為我們每年逐步增加股利的努力的一部分。無論如何，我們也會考慮這一點。這是第一點。

The second point is on the next MTBP. The management policy calls for 3 years for pursuing further growth through growth investment, strengthening of corporate infrastructure and agility while maintaining the existing management policy.

第二點是關於下一個MTBP。管理政策要求在3年內透過成長投資、加強企業基礎設施和敏捷性來追求進一步成長，同時維持現有的管理政策。

Purpose-driven management and ROE focused management as promoted in the current MTBP will remain unchanged. On top of that, we will continue to build on our profit structure, which has been strengthened to a certain degree to date, but still needs to be enhanced in order to capture growth during the next 3 years.

目前MTBP中提倡的目標驅動管理和ROE聚焦管理將保持不變。最重要的是，我們將繼續鞏固我們的利潤結構，迄今為止，該結構已在一定程度上得到加強，但仍需要加強，以便在未來三年內實現成長。

To this end, we will focus on growth investment and strengthening of corporate infrastructure, if it contributes to sustainable future growth, although we may not see the results immediately in the next MTBP. But in order to do that, and to continue to uphold ROE-focused management, our existing business needs to be more resilient. This is the underlying premise. Only then can we utilize capital for medium- to long-term growth. In any case, we will do so in a balanced manner.

為此，我們將重點關注成長投資和加強企業基礎設施，如果這有助於未來永續成長，儘管我們可能不會在下一個中期BP中立即看到結果。但為了做到這一點，並繼續堅持以 ROE 為中心的管理，我們現有的業務需要更具彈性。這是基本前提。這樣，我們才能利用資本實現中長期成長。無論如何，我們都會以平衡的方式來做這件事。

So in conclusion, we have not changed much from our previous approach. We will maintain this line of thinking, build on it, and pursue and capture growth for the next 3 years. We are in the process of discussing specific business group strategies and will present the package we put together at next year's financial results briefing.

所以總而言之，我們與之前的方法相比沒有太大改變。我們將保持這一思路，並以此為基礎，追求並捕捉未來三年的成長。我們正在討論具體的業務集團策略，並將在明年的財務績效簡報中提出我們匯總的一攬子計劃。

Next question is from Mr. Matsuno.

下一個問題是松野先生提出的。

I am Matsuno from Mizuho Securities. I have 2 questions. The first one is about the outlook for the next fiscal year. If the yen continues to weaken and you try to achieve an ROE of 7.5%, your net income this fiscal year will be substantially high. In your next midterm business plan, when you have a tendency to be conservative, is there a possibility that your bottom line in the next fiscal year will be lower? Should we be assuming that possibility? That's my first question.

我是瑞穗證券的松野。我有 2 個問題。第一個是關於下一財年的展望。如果日圓繼續走弱，而你努力實現7.5%的ROE，那麼你本財年的淨利潤將會相當高。在你的下一個中期商業計劃中，當你有保守傾向時，你下一個財年的利潤是否有可能會更低？我們應該假設這種可能性嗎？這是我的第一個問題。

My second question. With the recent amendment in the BOJ monetary policy, I want to ask about your policy in the global markets operations, and Mr. Yonehana, your own outlook for the monetary policy going forward.

我的第二個問題。隨著最近日本央行貨幣政策的修改，我想問您對全球市場操作的政策，以及米花先生，您對未來貨幣政策的展望。

Thank you for your question, Mr. Matsuno. The second question, I have to say, I find some difficulty in answering it. Let me start with the first question.

謝謝松野先生的提問。第二個問題，我必須說，我覺得回答起來有些困難。讓我從第一個問題開始。

Outlook for the next fiscal year, we are still in the process of developing our plan. It is one component of the next 3-year midterm business plan, so it is still under development. Where we will land at the end of this fiscal year, as you said, Mr. Matsuno, it depends on the exchange rate. At the fiscal year-end if the weak yen continues or even if it strengthens a little, but it's still weak, then as I said earlier, in order to achieve the ROE target of 7.5%, we need to have something like JPY 1.4 trillion. So it may be a matter of comparing against that figure.

展望下一財年，我們仍在製定計劃。它是下一個三年中期業務計劃的組成部分，因此仍在開發中。正如您所說的，松野先生，本財政年度結束時我們的目標將取決於匯率。到了財年末，如果日圓持續疲軟，或者即使稍微走強，但仍然疲軟，那麼正如我之前所說，為了實現7.5%的ROE目標，我們需要有1.4萬億日元左右的資金。因此，這可能是與該數字進行比較的問題。

It is also a function of the level of exchange rate assumption for the next fiscal year. So it's difficult to say. I, myself, would like to see that in the next midterm business plan over the 3-year period, we hope to grow as if we are climbing steps. But still, it's under development so I can't say right now. That is my answer.

它也是下一財年匯率假設水準的函數。所以很難說。我自己希望看到，在下一個三年的中期經營計畫中，我們希望能夠像攀登階梯一樣成長。但它仍在開發中，所以我現在還不能說。這就是我的答案。

On your second question, our Global Markets operation given the change in the BOJ monetary policy. From around the second quarter, from the end of July, with flexibility added to the yield curve control, JGB long-term interest rates have risen. In preparation for such interest rate rises, in Global Markets Treasury operations, we are conducting hedging operations, mainly with fixed income bear funds. So currently, domestic bonds in the available-for-sale category are mostly hedged.

關於你的第二個問題，考慮到日本央行貨幣政策的變化，我們的全球市場操作。從第二季左右開始，從7月底開始，隨著殖利率曲線控制的彈性增加，日本國債長期利率上升。為了因應這種利率上升，在全球市場資金業務中，我們正在進行對沖操作，主要是利用固定收益熊市基金。所以目前國內可供出售債券大多是避險的。

So our position is poised for interest rate rises. As rates rise, what will be the level that we should go in and take our position? Right now, it is difficult to tell. Going forward, with short-term rates normalization and when long-term interest rate rises are expected, at some timing, we will be going in to take our positions.

因此，我們的立場是為升息做好準備。隨著利率上升，我們應該進入並建倉的水平是多少？現在還很難說。展望未來，隨著短期利率正常化以及預期長期利率上升，我們將在某個時候進場建倉。

Now about monetary policy developments going forward. This is the prerogative of the BOJ, and it is a matter of how they will decide. Reading the minutes that are made public and their interactions with the media. As we take them into consideration, it seems that a virtuous cycle of rises in prices and wages. Once it is confirmed or observed, that will be the basis for their decision.

現在談談未來的貨幣政策發展。這是日本央行的特權，看他們如何決定。閱讀公開的會議記錄及其與媒體的互動。當我們考慮到它們時，價格和工資上漲似乎是一個良性循環。一旦得到確認或觀察到，這將成為他們做出決定的基礎。

As for these preconditions, I myself believe that they will be met. So it is a matter of at what timing the BOJ will take that decision. Personally, I think that the mechanism of price rises is quite strong. And given the corporate profits outlook for this fiscal year, I think we could expect a commensurate level of wage hikes next spring. It is just a matter of timing. The rest is up to the BOJ to decide, I think.

至於這些前提條件，我自己相信是能夠滿足的。因此，問題在於日本央行何時做出這項決定。我個人認為，物價上漲的機制是相當強大的。考慮到本財年的企業利潤前景，我認為我們可以預期明年春天工資會出現相應水平的上漲。這只是時間問題。我認為其餘的事情由日本央行決定。

Next, Mr. Yano, please.

下面有請矢野先生。

This is Yano from JPMorgan. I also have 2 questions. First, could you put in perspective the one-off factors for the first half? ROE for the first half, by MUFG definition, is 10.65%. Even excluding the JPY 66 billion contribution from Morgan Stanley, ROE was close to 10%, above 9.5% which is the level of ROE as defined by MUFG. If exchange rate has minimal impact on ROE, I would expect ROE in the first half to be very high.

我是摩根大通的矢野。我還有 2 個問題。首先，能否分析一下上半年的一次性因素？根據三菱日聯金融集團的定義，上半年的淨資產收益率為 10.65%。即使剔除摩根士丹利660億日圓的貢獻，ROE也接近10%，高於MUFG定義的9.5%的ROE水準。如果匯率對ROE的影響很小，我預計上半年的ROE會非常高。

What are the one-off factors that led to this? And what factors, if any, need to be deducted? If there is nothing in particular, what is the base case ROE, which is now targeting 7.5%? Probably not 10%, but how high can it be? If you could share with us your view on ROE in real terms, and if it has changed after the first half results. So ROE is my first question.

導致這現象的因素有哪些？如果有的話，需要扣除哪些因素？如果沒有什麼特別的，那麼基本情況下的 ROE 是多少，現在的目標是 7.5%？可能不是10%，但能多高呢？您能否與我們分享您對實際股本回報率的看法，以及上半年業績後股本回報率是否發生了變化。所以 ROE 是我的第一個問題。

My second question is simple. Are you seeing changes in the drivers for improvement in domestic corporate lending rates on Slide 12? For example, are there any successful negotiations for rate increase in expectation of higher interest rates ahead?

我的第二個問題很簡單。您是否在投影片 12 上看到國內企業貸款利率改善的驅動因素發生了變化？例如，在未來利率上升的預期下，是否有成功的升息談判？

Thank you, Mr. Yano. To your first question on ROE, onetime factor in the first half, as you pointed out, is the inclusion of 15 months' worth of earnings of Morgan Stanley, due to the change in the equity method accounting date. We estimate the amount for the first quarter of FY '23 to be JPY 82.7 billion, based on the exchange rate at the end of September.

謝謝你，矢野先生。關於你關於股本回報率的第一個問題，正如你所指出的，上半年的一個因素是由於權益法會計日期的變化而納入了摩根士丹利 15 個月的收益。根據 9 月底的匯率，我們預計 23 財年第一季的金額為 827 億日圓。

In terms of the factors weighted toward the first half of the fiscal year, Treasury department realized gains in the first half, front-loading the full year plan, which is approximately JPY 140 billion. So that amount is weighted toward the first half.

從上半年的影響因素來看，財政部上半年實現了收益，提前加載了全年計劃約1400億日元。因此，該金額​​將加權至上半年。

This is another one-off factor in the first half results. I think your point is that ROE still exceeds 7.5% after taking them into account.

這是上半年成績的另一個一次性因素。我認為你的觀點是，考慮到這些之後，ROE仍然超過7.5%。

You are right.

你是對的。

But when looking at the full year, considering the treasury adjustments made between the first and the second half, I said that low JPY 1.4 trillion range is the realistic level, including the exchange rate impact. On that basis, 8% is one level. We have not discussed the current ROE level internally, but I think that is about right as one estimate.

但從全年來看，考慮到上半年和下半年之間的財政調整，我說1.4兆日圓的低水平是現實水平，包括匯率影響。在此基礎上，8%是一個水準。我們尚未在內部討論當前的股本回報率水平，但我認為這作為一種估計是正確的。

And to your second question, the driver of the uptrend in domestic corporate lending spreads. We have not had any particular negotiation on lending rates and have not seen base rate shifting from floating to fixed rates in expectation of higher interest rates. There are 2 key factors for this. We have always negotiated to raise even 1 basis point for each loan. And high-margin deals, including LBO finance and real estate finance, are contributing to the increase in lending spread, which has always been the case.

關於你的第二個問題，國內企業貸款利差上升趨勢的驅動因素。我們沒有就貸款利率進行任何具體談判，也沒有看到基準利率因預期利率上升而從浮動利率轉向固定利率。這有兩個關鍵因素。我們一直在協商為每筆貸款提高 1 個基點。包括槓桿收購金融和房地產金融在內的高利潤交易正在導致貸款利差的增加，而這種情況一直都是如此。

There are no particular movements due to the interest rate trends.

利率趨勢並無特別變動。

I understand well. Thank you.

我很明白。謝謝。

Next is Ms. Kuroda.

接下來是黑田女士。

I have a similar question, if you could take time to answer it. In the slide on the bond portfolio, I observed that held-to-maturity bonds have increased and the domestic bonds in the available-for-sale category seem to have decreased. Has there been any change in your investment policy? If you have changed something, can you talk about that?

我也有類似的問題，希望您能抽空解答一下。在債券投資組合的幻燈片中，我觀察到持有至到期債券增加，而可供出售類別的國內債券似乎有所減少。您的投資政策有改變嗎？如果你改變了一些事情，你能談談嗎？

Also a related question. On the right-hand side, there is disclosure of unrealized gains or losses, reflecting hedging positions for domestic bonds. What is included in these hedging positions? Are these [bare] investment trusts? Is there anything else, anything to net out, something with duration on the liability side?

還有一個相關的問題。右側披露了未實現的損益，反映了國內債券的對沖頭寸。這些對沖部位包含哪些內容？這些是[裸]投資信託嗎？還有其他的東西，有什麼可以扣除的，有負債方面有期限的東西嗎？

Thank you for your question, Ms. Kuroda. About the first question, available-for-sale domestic bonds have decreased and held-to-maturity bonds increased. Broadly speaking, there are 2 factors. General domestic bonds, other than government bonds, including municipal bonds and corporate bonds, when they are rolled over, we switch them to the held-to-maturity category. That's one.

謝謝黑田女士的提問。關於第一個問題，國內可供出售債券減少，持有至到期債券增加。總的來說，有2個因素。一般國內債券，除政府債券外，包括市政債券和公司債券，在展期時，我們將其轉為持有至到期類別。這是一個。

And as for JGBs, we need to hold some of them for the purposes of collateral. We hold them as held-to-maturity bonds. We are trying to reduce our interest rate position in the available-for-sale securities, and the required JGBs are held as held-to-maturity bonds. We conducted such an operation in the first half. That is why available-for-sale domestic bonds decreased and held-to-maturity bonds increased. That is on the first question.

至於日本國債，我們需要持有其中一些用於抵押品。我們將它們作為持有至到期債券持有。我們正在努力降低可供出售證券的利率頭寸，並將所需的日本國債作為持有至到期債券持有。上半年我們就進行了這樣的操作。這就是可出售國內債券減少、持有至到期債券增加的原因。這是關於第一個問題。

And the second question, yen bonds figures after reflecting hedging positions. There are 2 types of hedging effects that are reflected in these figures. One is fixed income bear investment trusts. The other is swaps where the hedged item is marketable securities themselves.

第二個問題，日圓債券的數據反映了對沖部位。這些數字反映了兩種類型的對沖效應。一是固定收益熊證投資信託。另一種是掉期，其中對沖項目是有價證券本身。

And valuation gains and losses of such hedging positions are factored in the unrealized gains or losses on domestic bonds, reflecting hedging positions as shown here.

此類對沖頭寸的估值收益和損失計入國內債券的未實現收益或損失，反映了對沖頭寸，如下所示。

Next, Mr. Matsuda, please.

下面有請松田先生。

This is Matsuda from Daiwa Securities. I have 2 questions. On customer and Global Markets segments. First, customer segments remain strong, and overseas lending spread is also improving. Please give us a summary of the customer segments for the first half and the outlook for the future. .

我是大和證券的松田。我有 2 個問題。關於客戶和全球市場部分。首先，客戶群依然強勁，海外貸款利差也在改善。請您簡單介紹一下上半年的客戶群狀況以及未來的展望。 。

And the second question is regarding Global Markets. You maintain profit growth, but you mentioned JPY 400 billion earlier. You are reducing your exposure to foreign bonds. But could you give us your outlook on foreign bond investment going forward?

第二個問題是關於全球市場的。您保持利潤增長，但您之前提到了4000億日元。您正在減少對外國債券的曝險。但您能否為我們介紹一下您對未來外國債券投資的展望？

Thank you. Regarding your first question on the strong net operating profits for the customer segment. In the material, Page 8, bottom left graph shows the year-on-year change in net operating profits. The drivers are JCIB and GCIB.

謝謝。關於您的第一個問題，即客戶群強勁的淨利潤。資料第8頁左下圖顯示淨利潤年減。驅動程式是 JCIB 和 GCIB。

For JCIB, foreign currency deposit interest income was quite profitable in FY '22 when U.S. interest rates were on the rise. In addition, lending spreads on domestic and overseas loans have been expanding. So non-Japanese yen deposit interest income and loan interest income are increasing. Furthermore, related fee income is also increasing and driving the growth.

對 JCIB 來說，22 財年當美國利率上升時，外幣存款利息收入相當有利可圖。此外，境內外貸款利差不斷擴大。因此非日圓存款利息收入和貸款利息收入都在增加。此外，相關費用收入也在增加並推動成長。

GCIB's contribution is equally large, not so much through deposit interest income, but more through overseas loan interest income, O&D and fee income from securities primary. These 2 business segments have been very strong contributors.

GCIB的貢獻同樣大，與其說是透過存款利息收入，不如說是透過海外貸款利息收入、O&D以及證券初級手續費收入。這兩個業務部門做出了非常強大的貢獻。

Looking at the progress in the first half, while I mentioned that the customer segments as a whole achieved over 10% vis-a-vis the first half plan, all business groups achieved the plan. Although some business groups saw a larger increase in profit than others, depending on various factors, all business groups are firmly executing their strategies and showing favorable results.

從上半年的進展來看，雖然我提到整個客戶群比上半年計畫完成了10%以上，但所有業務群都完成了計畫。儘管部分業務集團的利潤增幅高於其他業務集團，但受多種因素影響，各業務集團都在堅定執行策略，並呈現出良好的業績。

It remains to be seen whether the lending spread, which serves as the foundation, will continue to increase at the same rate as in the past. But I think this uptrend will continue.

作為基礎的貸款利差是否會繼續以過去同樣的速度成長，還有待觀察。但我認為這種上升趨勢將會持續下去。

Regarding your second question on foreign bond investment in the Global Markets. We recognize that the environment is difficult to manage. Medium- to long-term interest rates have flattened considerably, but the yield curve is still inverted. The challenge is how to manage the situation.

關於你提到的全球市場境外債券投資的第二個問題。我們認識到環境很難管理。中長期利率已大幅趨平，但殖利率曲線仍倒掛。挑戰在於如何管理這種情況。

In this context, our current operations are aimed primarily at controlling unrealized gains and losses while also trying to increase profitability, including trading profits. Given the profitability of the balance sheet, I think we are at a critical stage where it is important to increase profitability while recording loss on sale of foreign bonds to a certain degree.

在這種背景下，我們目前的營運主要旨在控制未實現的損益，同時也努力提高獲利能力，包括交易利潤。考慮到資產負債表的獲利能力，我認為我們正處於一個關鍵階段，在一定程度的外國債券出售虧損的同時，提高獲利能力很重要。

I understand very well. Thank you very much. .

我非常明白。非常感謝。 。

Thank you very much. Since we are coming close to the scheduled time and there seems to be no one else with questions, we will conclude the Q&A session. Before closing, Mr. Yonehana would like to say a few words. .

非常感謝。由於我們已經接近預定時間，似乎沒有其他人提出問題，我們將結束問答環節。結束前，米花先生想講幾句話。 。

Thank you very much for your valuable questions. Today, I explained the results of the first half of FY 2023. We will continue our efforts in financial and capital management to achieve sustainable improvement in shareholder value while focusing on our shareholder and investors dialogue. I would like to ask you for your continued understanding and support. Thank you very much for your attendance today.

非常感謝您提出的寶貴問題。今天，我對2023財年上半年的業績進行了說明。我們將繼續在財務和資本管理方面努力，以實現股東價值的可持續提升，同時注重股東和投資者的對話。希望您繼續給予理解和支持。非常感謝您今天的出席。

Thank you. Today's conference will be available on demand as an archive on the company hotline website until Monday, November 21.

謝謝。今天的會議將在公司熱線網站上按需存檔，直到 11 月 21 日星期一為止。

This concludes the web conference on Mitsubishi UFJ Financial Group's Financial Highlights for the First Half of Fiscal Year Ending March 31, 2024. Thank you very much for your participation today.

關於三菱日聯金融集團截至 2024 年 3 月 31 日的上半財年財務摘要的網路會議到此結束。非常感謝您今天的參與。

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

[本筆錄中的英語陳述是由現場通話中的口譯員說出的。]