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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

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Form 6-K

 

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Report of Foreign Issuer

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

the Securities Exchange Act of 1934

For the month of September, 2006

 

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MITSUBISHI UFJ FINANCIAL GROUP, INC.

(Translation of registrant’s name into English)

 

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

Tokyo 100-8330, Japan

(Address of principal executive offices)

 

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[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    

 

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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.

Date: September 28, 2006

 

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Consolidated Summary Report

<under US GAAP>

For the Fiscal Year Ended March 31, 2006

 

Date:		September 28, 2006
Company name (code number):		Mitsubishi UFJ Financial Group, Inc. (8306)
		(URL http://www.mufg.jp/)
Stock exchange listings:		Tokyo, Osaka, Nagoya, New York
Headquarters:		Tokyo
Representative:		Nobuo Kuroyanagi, President & CEO
For inquiry:		Yoshihisa Harata, Chief Manager - Financial Planning Division
		(Phone) +81-3-5252-4160

Consolidated financial data for the fiscal year ended March 31, 2006

Due to the merger with UFJ Holdings on October 1, 2005, the results for the fiscal year ended March 31, 2006 reflect six months of results for Mitsubishi Tokyo Financial Group, Inc. and its subsidiaries prior to the merger and six months of results for Mitsubishi UFJ Financial Group, Inc. and its subsidiaries after the merger.

(1) Operating results

(in millions of yen, except per share data and percentages)

 

		For the fiscal years ended March 31,
		2006			2005
Total revenue		3,598,034			2,425,511
Change from the previous fiscal year		48.3	%		(10.7	)%
Income from continuing operations before income tax expense and cumulative effect of a change in accounting principle		529,673			718,394
Change from the previous fiscal year		(26.3	)%		(38.9	)%
Net income		363,511			415,155
Change from the previous fiscal year		(12.4	)%		(49.6	)%
Basic earnings per common share—net income available to common shareholders (in yen)		19,313.78			62,717.21
Diluted earnings per common share—net income available to common shareholders (in yen)		18,951.87			62,476.76
Net income available to common shareholders as a percentage of total average shareholders’ equity		2.2	%		10.5	%
Income from continuing operations before income tax expense and cumulative effect of a change in accounting principle as a percentage of total average assets		0.3	%		0.6	%
Income from continuing operations before income tax expense and cumulative effect of a change in accounting principle as a percentage of total revenue		14.7	%		29.6	%
Note: Average number of shares outstanding
		(in thousands of shares)
		For the fiscal years ended March 31,
		2006			2005
Common stock		8,121			6,510
Preferred stock - class 1		—			61
Preferred stock - class 2		—			4
Preferred stock - class 3		100			12
Preferred stock - class 8		44			—
Preferred stock - class 9		45			—
Preferred stock - class 10		74			—
Preferred stock - class 11		0			—
Preferred stock - class 12		91			—

 

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Qualitative information related to the consolidated operating results:

With respect to the financial and economic environment for the fiscal year ended March 31, 2006, overseas economies such as United States and China showed steady signs of economic growth. Meanwhile, the Japanese economy started off slowly, due mainly to an adjustment in inventory in the IT sector. However, with the rise in exports in summer, along with increases in capital expenditures and the steady increases in private consumption, the Japanese economy moved toward recovery.

Regarding the financial environment, in the United States, the target for the federal funds rate was raised a total of eight times, from 2.75% to 4.75%. In the EU, the European Central Bank’s policy rate was also raised twice, from 2.0% to 2.5%. Meanwhile, in Japan, the Bank of Japan lifted its easy monetary policy in March 2006 due to increases in consumer prices, but short-term interest rates remained at near zero percent. As to long-term interest rates, the yield on ten-year Japanese government bonds declined slightly during the first half of the fiscal year, but later rose due to anticipation surrounding the lifting of the easy monetary policy by the Bank of Japan. In the foreign exchange markets, the yen depreciated against the US dollar during the fiscal year due to the widening interest rate differentials between Japan and the United States, caused by the rise in US interest rates.

Amidst the environment, our consolidated net income under US GAAP for the fiscal year ended March 31, 2006 was ¥363.5 billion, a decrease of ¥51.7 billion compared to the previous fiscal year. The changes in our operating results were primarily attributable to the following:

 

•

Net interest income increased ¥679.5 billion, mainly due to the increase in interest-earning assets and interest-bearing liabilities resulting from the merger with UFJ Holdings on October 1, 2005.

 

•

Provision for credit losses increased ¥1.9 billion. Our loan portfolio was favorably affected by the upgrades of borrowers’ credit ratings resulting from improvements in their business performance mainly attributable to the general recovery in the Japanese economy, as well as upgrades of credit ratings of borrowers to whom we had large exposures who made progress in their restructuring plans. However, the foregoing favorable impact on the quality of our loan portfolio was not reflected in our provision for credit losses, because impaired loans of the former UFJ Holdings Group were acquired at their fair values.

 

•

Non-interest income increased ¥80.6 billion due to an increase in fees and commissions. This increase was partially offset by an increase in foreign exchange losses, which reflected transaction losses on translation of monetary liabilities denominated in foreign currencies due to the larger depreciation of the yen against foreign currencies, a decrease in trading account profits, mainly on interest rate related derivatives due to the rise in interest rates, and a decrease in investment securities gains, due primarily to impairment losses on Japanese government bonds reflecting the rise in long-term interest rates in Japan.

 

•

Non-interest expense increased ¥946.9 billion, primarily due to the merger with UFJ Holdings, which increased most type of expenses, especially salaries and employee benefits.

Due to the above, our income from continuing operations before income tax expense and cumulative effect of a change in accounting principle was ¥529.7 billion, a decrease of ¥188.7 billion from the previous fiscal year, and net income was ¥363.5 billion, a decrease of ¥51.7 billion from the previous fiscal year.

(2) Financial condition

(in millions of yen, except per share data and percentages)

 

		As of March 31,
		2006			2005
Total assets		186,219,447			108,422,100
Total shareholders’ equity		9,668,153			4,373,097
Total shareholders’ equity as a percentage of total assets		5.2	%		4.0	%
Total shareholders’ equity per common share (in yen)		893,352.38			611,908.82
Note: Number of shares outstanding
		(in thousands of shares)
		As of March 31,
		2006			2005
Common stock		9,741			6,539
Preferred stock - class 1		—			40
Preferred stock - class 3		100			100
Preferred stock - class 8		27			—
Preferred stock - class 9		80			—
Preferred stock - class 10		150			—
Preferred stock - class 11		0			—
Preferred stock - class 12		175			—
(3) Cash flows
		(in millions of yen)
		For the fiscal years ended March 31,
		2006			2005
Net cash provided by operating activities		354,086			207,563
Net cash provided by (used in) investing activities		8,255,262			(1,821,848	)
Net cash provided by (used in) financing activities		(6,600,721	)		2,729,392
Cash and cash equivalents at end of fiscal year		6,249,347			4,220,437

 

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Formulas for computing ratios for the fiscal year ended March 31, 2006 are as follows:

Basic earnings per common share—net income available to common shareholders

 

Net income available to common shareholders*
Average number of common stock during the fiscal year **

Diluted earnings per common share—net income available to common shareholders

 

Net income available to common shareholders* + Adjustments in net income assuming dilution

Average number of common stock during the fiscal year ** + Number of dilutive potential common stock

Net income available to common shareholders as a percentage of total average shareholders’ equity

 

Net income available to common shareholders*		× 100
Total average shareholders’ equity

Total shareholders’ equity per common share

 

Total shareholders’ equity at end of fiscal year - Number of preferred stock at end of fiscal year × Issue price

Number of common stock at end of fiscal year **

 

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*	excluding cash dividends paid to preferred shareholders and beneficial conversion feature

**	excluding treasury stock and parent’s common stock owned by subsidiaries and affiliated companies

This report is an excerpt of certain highlights from our consolidated financial information under US GAAP that was disclosed in our annual report on Form 20-F (“Form 20-F”) filed with the U.S. Securities and Exchange Commission. This excerpt report does not contain all of the information that may be important to you. In addition to the items highlighted in this report, the Form 20-F includes material disclosure about Mitsubishi UFJ Financial Group, Inc., including risk factors, business and other detailed US GAAP financial information. You should read the entire Form 20-F carefully to obtain a comprehensive understanding of our business and US GAAP financial data and related issues.

This report contains forward-looking statements regarding estimation, forecast, target and plan in relation to the results of operations, financial conditions and other general management of the company and/or the group as a whole (the "forward-looking statements"). The forward-looking statements are made based upon, among other things, the company's current estimations, perceptions and evaluations. In addition, in order for the company to adopt such estimation, forecast, target and plan regarding future events, certain assumptions have been made, which assumptions are inherently subjective and uncertain. The forward-looking statements should not be viewed as guarantees of future performance as actual results may be significantly different. For instance, the estimation and forecast regarding the company is based on the assumption that the company's business strategies (including the business integration plan with the former UFJ Holdings Group) will be implemented smoothly. Also, the statements regarding collectibility of the deferred tax assets are based on estimation and other assumptions such as our business plan and the premises thereof, and exemplify such situation as above. There exist a number of factors that might lead to uncertainties and risks. For the key factors that may be should be considered, please see the financial highlight, the Annual Securities Report, Disclosure Book, Annual Report, Form 20-F and other current disclosures that the company has publicly released.

 

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(US GAAP)

Mitsubishi UFJ Financial Group, Inc. and Subsidiaries

Consolidated Balance Sheets

 

		As of March 31,						Increase/(Decrease) (A) - (B)
(in millions of yen)		2006 (A)			2005 (B)
Assets:
Cash and due from banks		6,235,278			4,206,498			2,028,780
Interest-earning deposits in other banks		6,240,654			4,520,270			1,720,384
Call loans and funds sold		2,026,293			1,147,786			878,507
Receivables under resale agreements		1,379,985			976,281			403,704
Receivables under securities borrowing transactions		5,142,074			5,230,242			(88,168	)
Trading account assets		10,728,023			7,705,965			3,022,058
Investment securities:
Securities available for sale		45,485,909			26,557,936			18,927,973
Securities being held to maturity		2,466,074			2,191,316			274,758
Preferred stock investment in ex-UFJ Bank Limited		—			700,000			(700,000	)
Other investment securities		862,969			341,744			521,225
Total investment securities		48,814,952			29,790,996			19,023,956
Loans, net of unearned income, unamortized premiums and deferred loan fees		95,506,835			50,904,016			44,602,819
Allowance for credit losses		(1,012,227	)		(739,872	)		(272,355	)
Net loans		94,494,608			50,164,144			44,330,464
Premises and equipment—net		1,173,577			568,806			604,771
Accrued interest		241,331			144,232			97,099
Customers’ acceptance liability		94,719			39,971			54,748
Intangible assets—net		1,504,495			253,230			1,251,265
Goodwill		1,843,948			85,834			1,758,114
Deferred tax assets		1,211,431			773,827			437,604
Other assets		4,963,566			2,603,678			2,359,888
Assets of discontinued operations to be disposed or sold		124,513			210,340			(85,827	)
Total assets		186,219,447			108,422,100			77,797,347
Liabilities and Shareholders’ Equity:
Deposits:
Domestic offices:
Non-interest-bearing		20,079,575			7,025,570			13,054,005
Interest-bearing		89,985,274			51,007,526			38,977,748
Overseas offices:
Non-interest-bearing		3,263,873			2,770,141			493,732
Interest-bearing		13,311,209			10,339,862			2,971,347
Total deposits		126,639,931			71,143,099			55,496,832
Call money and funds purchased		2,273,754			1,521,057			752,697
Payables under repurchase agreements		5,289,754			3,612,094			1,677,660
Payables under securities lending transactions		3,821,019			1,924,375			1,896,644
Due to trust account		2,427,932			1,231,050			1,196,882
Other short-term borrowings		10,534,378			10,724,775			(190,397	)
Trading account liabilities		3,022,151			1,958,921			1,063,230
Obligations to return securities received as collateral		3,946,381			3,025,817			920,564
Bank acceptances outstanding		94,719			39,971			54,748
Accrued interest		172,129			109,926			62,203
Long-term debt		13,889,525			5,981,747			7,907,778
Other liabilities		4,320,859			2,616,408			1,704,451
Liabilities of discontinued operations to be extinguished or assumed		118,762			159,763			(41,001	)
Total liabilities		176,551,294			104,049,003			72,502,291
Shareholders’ equity:
Capital stock:
Preferred stock		247,100			247,100			—
Common stock		1,084,708			1,084,708			—
Capital surplus		5,566,894			1,080,463			4,486,431
Retained earnings:
Appropriated for legal reserve		239,571			239,571			—
Unappropriated		1,424,634			1,327,894			96,740
Accumulated other changes in equity from nonowner sources, net of taxes		1,880,215			396,582			1,483,633
Treasury stock, at cost		(774,969	)		(3,221	)		(771,748	)
Total shareholders’ equity		9,668,153			4,373,097			5,295,056
Total liabilities and shareholders’ equity		186,219,447			108,422,100			77,797,347

 

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(US GAAP)

Mitsubishi UFJ Financial Group, Inc. and Subsidiaries

Consolidated Statements of Income

 

		For the fiscal years ended March 31,						Increase/ (Decrease) (A) - (B)
(in millions of yen)		2006 (A)			2005 (B)
Interest income:
Loans, including fees		1,728,047			919,065			808,982
Deposits in other banks		146,572			66,263			80,309
Investment securities:
Interest		463,602			330,386			133,216
Dividends		51,468			40,180			11,288
Trading account assets		57,404			30,829			26,575
Call loans and funds sold		19,271			6,398			12,873
Receivables under resale agreements and securities borrowing transactions		64,318			45,580			18,738
Total		2,530,682			1,438,701			1,091,981
Interest expense:
Deposits		449,398			219,743			229,655
Debentures		—			351			(351	)
Call money and funds purchased		7,445			7,111			334
Payables under repurchase agreements and securities lending transactions		161,518			74,081			87,437
Due to trust account		5,091			3,887			1,204
Other short-term borrowings and trading account liabilities		103,954			54,041			49,913
Long-term debt		154,663			110,392			44,271
Total		882,069			469,606			412,463
Net interest income		1,648,613			969,095			679,518
Provision for credit losses		110,167			108,338			1,829
Net interest income after provision for credit losses		1,538,446			860,757			677,689
Non-interest income:
Fees and commissions		1,033,275			641,091			392,184
Foreign exchange losses—net		(322,355	)		(47,164	)		(275,191	)
Trading account profits—net		16,423			62,052			(45,629	)
Investment securities gains—net		89,861			198,006			(108,145	)
Equity in earnings of equity method investees		22,258			26,272			(4,014	)
Government grant for transfer of substitutional portion of Employees’ Pension Fund Plans		103,001			—			103,001
Gains on sales of loans		34,831			608			34,223
Other non-interest income		90,058			105,945			(15,887	)
Total		1,067,352			986,810			80,542
Non-interest expense:
Salaries and employee benefits		746,372			473,136			273,236
Occupancy expenses—net		187,324			116,338			70,986
Fees and commission expenses		218,428			87,190			131,238
Amortization of intangible assets		179,543			69,300			110,243
Insurance premiums, including deposit insurance		89,697			56,952			32,745
Minority interest in income of consolidated subsidiaries		157,222			36,701			120,521
Communications		44,420			27,402			17,018
Other non-interest expenses		453,119			262,154			190,965
Total		2,076,125			1,129,173			946,952
Income from continuing operations before income tax expense and cumulative effect of a change in accounting principle		529,673			718,394			(188,721	)
Income tax expense		165,473			303,755			(138,282	)
Income from continuing operations before cumulative effect of a change in accounting principle		364,200			414,639			(50,439	)
Income from discontinued operations—net		8,973			1,493			7,480
Cumulative effect of a change in accounting principle, net of tax		(9,662	)		(977	)		(8,685	)
Net income		363,511			415,155			(51,644	)
Income allocable to preferred shareholders:
Cash dividends paid		5,386			6,837			(1,451	)
Beneficial conversion feature		201,283			—			201,283
Net income available to common shareholders		156,842			408,318			(251,476	)
(in yen)
Amounts per share:
Basic earnings per common share—income from continuing operations available to common shareholders before cumulative effect of a change in accounting principle		19,398.62			62,637.96			(43,239.34	)
Basic earnings per common share—net income available to common shareholders		19,313.78			62,717.21			(43,403.43	)
Diluted earnings per common share—income from continuing operations available to common shareholders before cumulative effect of a change in accounting principle		19,036.71			62,397.57			(43,360.86	)
Diluted earnings per common share—net income available to common shareholders		18,951.87			62,476.76			(43,524.89	)

 

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(US GAAP)

Mitsubishi UFJ Financial Group, Inc. and Subsidiaries

Nonaccrual loans, restructured loans and accruing loans contractually past due 90 days or more (unaudited)

 

		As of March 31,				Increase/(Decrease) (A) - (B)
(in millions of yen)		2006 (A)		2005 (B)
Nonaccrual loans:
Domestic:
Manufacturing		126,923		113,884		13,039
Construction		37,635		47,764		(10,129	)
Real estate		162,833		121,962		40,871
Services		60,685		169,602		(108,917	)
Wholesale and retail		128,602		85,659		42,943
Banks and other financial institutions		15,778		4,346		11,432
Communication and information services		12,794		11,829		965
Other industries		29,219		22,324		6,895
Consumer		360,717		119,229		241,488
Total domestic		935,186		696,599		238,587
Foreign:
Governments and official institutions		52		466		(414	)
Banks and other financial institutions		38,796		45,091		(6,295	)
Commercial and industrial		30,387		54,913		(24,526	)
Other		5,413		23,835		(18,422	)
Total foreign		74,648		124,305		(49,657	)
Total		1,009,834		820,904		188,930
Restructured loans:
Domestic		937,160		431,036		506,124
Foreign		74,676		23,153		51,523
Total		1,011,836		454,189		557,647
Accruing loans contractually past due 90 days or more:
Domestic		21,896		9,232		12,664
Foreign		1,112		879		233
Total		23,008		10,111		12,897
Total		2,044,678		1,285,204		759,474

 

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