Mitsubishi UFJ Financial Group (MUFG) unveiled its FY2023 results and a robust new medium-term business plan (MTBP) aiming to drive growth and enhance shareholder value. MUFG reported a historical high net profit of ¥1,490.7 billion for FY23, surpassing previous targets and setting a new benchmark for the financial group.
Key to this success was a series of strategic initiatives, including the sale of MUFG Union Bank (MUB) and significant cost reductions, which improved the return on equity (ROE) to 8.5%. The new MTBP outlines ambitious goals for the next three years, targeting an ROE of approximately 9% and a CET1 ratio of 9.5%-10.5%. MUFG aims to achieve a net profit of ¥1.5 trillion in FY24, supported by continued digital transformation and strategic investments.
The MTBP is structured around three pillars: accelerating transformation and innovation, expanding and refining growth strategies, and driving social and environmental progress. MUFG plans to enhance its corporate and retail banking services through increased digital engagement and strategic partnerships, particularly in the Asia-Pacific region. The group also emphasizes its commitment to sustainable finance, setting a target of ¥100 trillion in sustainable finance by 2030 to support environmental and social initiatives.
MUFG’s approach to capital management remains disciplined, with a focus on maintaining a stable dividend payout ratio and flexible share repurchase programs. The group has also set a new target of reducing low-profitability risk-weighted assets by ¥5 trillion while increasing high-profitability assets by ¥12 trillion.
As MUFG continues to navigate a dynamic financial landscape, its strategic investments in digital finance, corporate infrastructure, and environmental sustainability are expected to position the group for long-term growth and stability.
