# MUFG Bank
**MUFG Bank** (株式会社三菱UFJ銀行, Kabushiki-Kaisha Mitsubishi UFJ Ginko) is the core banking subsidiary of Mitsubishi UFJ Financial Group, Inc. (MUFG).[1](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2022.pdf) The bank's consolidated total assets were ¥323,861,142 million as of March 31, 2025, with deposits of ¥211,083,905 million.[2](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2025.pdf) The bank had 117 consolidated subsidiaries as of March 31, 2025, the principal ones being Bank of Ayudhya (Krungsri) in Thailand and PT Bank Danamon Indonesia.[2](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2025.pdf)
| Key fact | Detail |
|---|---|
| Bank-entity assets | ¥323,861,142 million consolidated as of March 31, 2025 (down from ¥331,606,405 million a year earlier); deposits ¥211,083,905 million[2](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2025.pdf) |
| Group assets and profit | Group total assets ¥413,113,501 million at March 31, 2025; profits attributable to owners of parent ¥1,862,946 million in FY2025 and ¥2,427,229 million in FY2026 (ROE 11.3%)[3](https://investor.wedbush.com/wedbush/article/bizwire-2025-5-15-mufg-bank-ltd-announces-consolidated-summary-report-under-japanese-gaap-for-the-fiscal-year-ended-march-31-2025) • [4](https://www.morningstar.com/news/business-wire/20260515458939/mufg-bank-ltd-announces-consolidated-summary-report-under-japanese-gaap-for-the-fiscal-year-ended-march-31-2026) |
| Capital | CET1 ratio 12.47% versus an 8.68% required minimum at March 31, 2026; External TLAC 23.25% on a risk-weighted basis versus an 18.00% minimum[5](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ar2026_en.pdf) |
| Morgan Stanley | Approximately 23.9% of voting rights plus $521.4 million of 10% perpetual preferred stock and two board seats as of March 31, 2026; equity-method income of ¥596,956 million in FY2025[5](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ar2026_en.pdf) • [3](https://investor.wedbush.com/wedbush/article/bizwire-2025-5-15-mufg-bank-ltd-announces-consolidated-summary-report-under-japanese-gaap-for-the-fiscal-year-ended-march-31-2025) |
| Geographic mix | US-related assets about 18.8% of group total, Asia and Oceania excluding Japan 10.1%, Europe 6.7% at March 31, 2026[5](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ar2026_en.pdf) |
| Regulatory action | June 24, 2024 business improvement orders from Japan's Financial Services Agency to MUFG Bank and Mitsubishi UFJ Morgan Stanley Securities; remediation plans submitted July 19, 2024[6](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ir2024_all_en.pdf) |
| Rate environment | Domestic average interest rate spread rose to 0.14% from 0.02% in the six months to September 30, 2025 after the Bank of Japan began raising rates in March 2024[7](https://www.sec.gov/Archives/edgar/data/67088/000162828025058829/mufg-20250930_d2.htm) |
## Origins and mergers
The bank's lineage runs through four predecessors. The Mitsubishi Bank was founded in August 1919 with capital of ¥50.00 million; the Sanwa Bank was formed in December 1933 from the merger of the Thirty-Fourth, Yamaguchi, and Konoike Banks; the Tokai Bank dates from June 1941; and the Bank of Tokyo was established in December 1946 on the basis of a business transfer from the [Yokohama Specie Bank](https://www.edgepedia.org/yokohama-specie-bank).[1](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2022.pdf)
Three mergers built the modern entity. In April 1996 Mitsubishi Bank and the Bank of Tokyo merged to form The Bank of Tokyo-[Mitsubishi](https://www.edgepedia.org/mitsubishi). In October 2005 Mitsubishi Tokyo Financial Group and UFJ Holdings merged to create Mitsubishi UFJ Financial Group, and in January 2006 Bank of Tokyo-Mitsubishi and UFJ Bank merged to form The Bank of Tokyo-Mitsubishi UFJ.[1](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2022.pdf) On April 1, 2018 the bank's legal name changed from Kabushiki-Kaisha Mitsubishi Tokyo UFJ Ginko to Kabushiki-Kaisha Mitsubishi UFJ Ginko, a rebranding of the same legal entity rather than a new merger.[1](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2022.pdf)
The 2005-2006 combination was large by any measure. The two banks' combined loans outstanding in 2004 stood at ¥70 trillion, about USD 700 billion at the exchange rate of the time, equivalent to 18% of all loans extended by Japanese financial institutions, making the merged group Japan's largest financial institution.[8](https://www.rieti.go.jp/jp/publications/dp/12e022.pdf) The merger was announced in July 2004 after UFJ, itself the 2001 product of a Sanwa-Tokai merger, disclosed large loan losses in May 2004; it was the last city-bank merger in Japan, with none since 2005.[8](https://www.rieti.go.jp/jp/publications/dp/12e022.pdf)
## Scale, business lines and footprint
The bank reports through six segments: Digital Service, Retail & Commercial Banking, Japanese Corporate & Investment Banking, Global Commercial Banking, Global Corporate & Investment Banking, and Global Markets.[1](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2022.pdf) At group level, US-related assets were about 18.8% of total assets at March 31, 2026, Asia and Oceania excluding Japan 10.1%, and Europe 6.7%, so roughly a third of the balance sheet sits outside Japan.[5](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ar2026_en.pdf)
**Asian partner banks.** MUFG has invested in four commercial banks in the region: Krungsri (Bank of Ayudhya) in Thailand, Bank Danamon in Indonesia, VietinBank in Vietnam, and Security Bank in the Philippines, and states it holds the world's largest lending exposures in Asia-Pacific outside China and Hong Kong.[6](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ir2024_all_en.pdf) Danamon became a subsidiary of the Bank in April 2019.[1](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2022.pdf)
## By the numbers
Group results under Japanese GAAP show a steep profit climb. Profits attributable to owners of parent were ¥1,862,946 million for the year ended March 31, 2025, up 25.0%, on ordinary profits of ¥2,669,483 million, up 25.4%; the following year they reached ¥2,427,229 million, up 30.3%, with return on equity of 11.3%.[3](https://investor.wedbush.com/wedbush/article/bizwire-2025-5-15-mufg-bank-ltd-announces-consolidated-summary-report-under-japanese-gaap-for-the-fiscal-year-ended-march-31-2025) • [4](https://www.morningstar.com/news/business-wire/20260515458939/mufg-bank-ltd-announces-consolidated-summary-report-under-japanese-gaap-for-the-fiscal-year-ended-march-31-2026) The bank entity itself earned ¥944,728 million in FY2025, down from ¥1,231,880 million in FY2024.[2](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2025.pdf)
## The Morgan Stanley alliance
MUFG's stake in [Morgan Stanley](https://www.edgepedia.org/morgan-stanley) dates from 2008 and has two parts. Since 2008 the two firms have run a strategic alliance through two joint-venture securities companies in Japan in which MUFG holds a 60% economic interest in each; separately, MUFG held an equity stake that stood at approximately 20.1% at end-FY20.[9](https://dbrs.morningstar.com/research/380496/dbrs-morningstar-confirms-mufg-banks-long-term-issuer-rating-at-a-high-stable-trend) As of March 31, 2026 MUFG held approximately 23.9% of Morgan Stanley's voting rights, plus approximately $521.4 million of perpetual non-cumulative non-convertible preferred stock with a 10% dividend, and had two representatives on Morgan Stanley's board.[5](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ar2026_en.pdf)
The stake has become a major earnings engine. Equity-method income from affiliates was ¥596,956 million in FY2025, largely reflecting Morgan Stanley, against group profits of ¥1,862,946 million, so the affiliate line contributed close to a third of group profit.[3](https://investor.wedbush.com/wedbush/article/bizwire-2025-5-15-mufg-bank-ltd-announces-consolidated-summary-report-under-japanese-gaap-for-the-fiscal-year-ended-march-31-2025)
## Capital, regulation and penalties
MUFG's capital position sits well above its requirements. At March 31, 2026 the CET1 ratio was 12.47% against a required minimum of 8.68%, Tier 1 was 14.95% against 10.18%, and the total capital ratio 16.85% against 12.18%; each requirement includes a 2.5% capital conservation buffer, a 1.5% G-SIB surcharge, and a 0.18% countercyclical buffer.[5](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ar2026_en.pdf) External TLAC was 23.25% on a risk-weighted basis against an 18.00% minimum, and 9.06% on a total exposure basis against 7.10%.[5](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ar2026_en.pdf) Management's own target range is tighter than the regulatory floor: a CET1 ratio of 9.5% to 10.5% on the finalized [Basel III](https://www.edgepedia.org/basel-iii) basis, excluding net unrealized gains on available-for-sale securities.[6](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ir2024_all_en.pdf)
**The 2024 orders.** On June 24, 2024 the [Financial Services Agency](https://www.edgepedia.org/financial-services-agency) issued business improvement orders to MUFG Bank and Mitsubishi UFJ Morgan Stanley Securities under the Financial Instruments and Exchange Act, and orders to submit reports under the Banking Act; the companies submitted business improvement plans on July 19, 2024.[6](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ir2024_all_en.pdf)
## Recent developments
The dominant change is the interest rate cycle. The [Bank of Japan](https://www.edgepedia.org/bank-of-japan) has been gradually raising its policy interest rate since March 2024.[5](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ar2026_en.pdf) The effect on margins is visible in the half-year to September 30, 2025: the domestic average interest rate spread rose to 0.14% from 0.02%, with domestic interest income up 43.4% to ¥1,011.4 billion, and the foreign spread widened to 1.27% from 1.08% with net foreign interest income of ¥1,545.4 billion.[7](https://www.sec.gov/Archives/edgar/data/67088/000162828025058829/mufg-20250930_d2.htm) MUFG cautions that unexpected further increases may raise borrowers' debt service burden and credit costs, while a rate cut would narrow its domestic loan spread.[5](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ar2026_en.pdf)
**Acquisition spree.** The group deployed capital across several deals: Mitsubishi UFJ Trust and Banking acquired all shares of Australia's Link Administration Holdings for ¥113.5 billion in May 2024, renaming it MUFG Pension & Market Services Holdings; in November 2024 MUFG agreed with KDDI to acquire 49% of au Kabucom Securities, making it a wholly owned MUFG Bank subsidiary renamed Mitsubishi UFJ eSmart Securities; and in December 2024 MUFG Bank launched a tender offer for the robo-adviser WealthNavi, in which it already held 15.13%, for an aggregate price of ¥99.7 billion.[10](https://www.sec.gov/Archives/edgar/data/67088/000006708824000030/mufg-20240930_d2.htm) In FY2025-2026 it agreed to acquire 20.00% of India's Shriram Finance for approximately INR 396.2 billion (about ¥682.3 billion) and raised its ownership of JACCS to 39.43% for about ¥39.0 billion.[7](https://www.sec.gov/Archives/edgar/data/67088/000162828025058829/mufg-20250930_d2.htm) The prior medium-term plan alone involved over ¥700 billion of strategic investments, including WealthNavi, Home Credit, Akulaku, and [DMI Finance](https://www.edgepedia.org/dmi-finance).[6](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ir2024_all_en.pdf)
Shareholder returns have risen with profits: the FY2026 dividend was ¥86 per share, up from ¥64, with ¥96 forecast for FY2027 and a new earnings target of ¥2,700.0 billion.[4](https://www.morningstar.com/news/business-wire/20260515458939/mufg-bank-ltd-announces-consolidated-summary-report-under-japanese-gaap-for-the-fiscal-year-ended-march-31-2026)
## How it compares with SMBC and Mizuho
Japan's megabanks were consolidated into three groups, Mizuho, Mitsui-Sumitomo, and Mitsubishi-UFJ, by seven mergers among major banks between fiscal 2000 and fiscal 2002.[11](https://www.nber.org/system/files/chapters/c0398/c0398.pdf) Within that trio, Mitsubishi UFJ Financial Group is the largest, with total assets of JPY 359.4 trillion at end-FY20, roughly USD 3,250.2 billion.[9](https://dbrs.morningstar.com/research/380496/dbrs-morningstar-confirms-mufg-banks-long-term-issuer-rating-at-a-high-stable-trend)
## References
1. [MUFG Bank Annual Securities Report (2022)](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2022.pdf)
2. [MUFG Bank, Ltd. Annual Securities Report, fiscal year ended March 31, 2025](https://www.bk.mufg.jp/global/aboutus/investorinfo/pdf/asr2025.pdf)
3. [MUFG Consolidated Summary Report under Japanese GAAP, FY ended March 31, 2025 (Business Wire)](https://investor.wedbush.com/wedbush/article/bizwire-2025-5-15-mufg-bank-ltd-announces-consolidated-summary-report-under-japanese-gaap-for-the-fiscal-year-ended-march-31-2025)
4. [MUFG Consolidated Summary Report under Japanese GAAP, FY ended March 31, 2026 (Business Wire via Morningstar)](https://www.morningstar.com/news/business-wire/20260515458939/mufg-bank-ltd-announces-consolidated-summary-report-under-japanese-gaap-for-the-fiscal-year-ended-march-31-2026)
5. [MUFG Annual Report on Form 20-F, fiscal year ended March 31, 2026](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ar2026_en.pdf)
6. [MUFG Report 2024 (Integrated Report)](https://www.mufg.jp/dam/ir/report/annual_report/pdf/ir2024_all_en.pdf)
7. [MUFG Form 6-K, six months ended September 30, 2025](https://www.sec.gov/Archives/edgar/data/67088/000162828025058829/mufg-20250930_d2.htm)
8. [The Effects of a Megabank Merger on Firm-Bank Relationships and Borrowing Costs (RIETI Discussion Paper)](https://www.rieti.go.jp/jp/publications/dp/12e022.pdf)
9. [DBRS Morningstar Confirms MUFG Bank's Long-Term Issuer Rating at A (high), Stable Trend](https://dbrs.morningstar.com/research/380496/dbrs-morningstar-confirms-mufg-banks-long-term-issuer-rating-at-a-high-stable-trend)
10. [MUFG Form 6-K, six months ended September 30, 2024](https://www.sec.gov/Archives/edgar/data/67088/000006708824000030/mufg-20240930_d2.htm)
11. [Financial Sector Development in the Pacific Rim (NBER chapter on Japanese bank M&As)](https://www.nber.org/system/files/chapters/c0398/c0398.pdf)
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*Topic: Encyclopedia › Society and history › Economics and business › Finance › Banks (institutions and by country) › Banks in Asia-Pacific*
*Initially written Sep 17, 2026 · Reviewed: Oct 10, 2026 · Edited: Oct 10, 2026; Oct 11, 2026; Oct 15, 2026 · Last review: Oct 10, 2026*
*Copyright 2026 EdgeChat AI, a subsidiary of Biostate AI.*
License: Edgepedia Community License 1.0, https://www.edgepedia.org/edgepedia/license